January 26, 2024/United Capital
Anglophone West Africa
Nigeria
- Nigeria central bank aims for 21% inflation, seeks to support naira
Nigeria’s central bank aims for inflation to fall to about 21% and will work to strengthen the country’s undervalued naira currency, Governor Olayemi Cardoso said. Cardoso faces pressure to raise interest rates when the Central Bank of Nigeria (CBN) holds a rate-setting meeting next month for the first time since he took office in September. Inflation in December hit 28.92%, its highest level in more than 27 years.
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- Nigeria Braces for Jumbo Rate Hike at First Meeting Since July
Nigeria’s central bank is expected to raise interest rates by as much as 500 basis points next month and provide clarity on foreign-exchange management that’s blamed for turning investors away. The Central Bank of Nigeria announced a monetary policy committee meeting for Feb. 26-27. It will be Governor Olayemi Cardoso’s first since taking the helm in September.
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- W’Bank projects 3.7% growth for Nigerian economy 2025
The World Bank has predicted that Nigerian Gross Domestic Product will grow by 3.7 per cent in 2025. The World Bank in its latest report titled “Global Economic Prospect: Subdued Growth, Multiple Challenges”, projected that the African largest economy will improve by 3.3 per cent up from a projected 2.9 per cent for 2023.
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- Marketers will pay naira for Dangote fuel, says IPMAN
Refined petroleum products from the $20bn Dangote Petroleum Refinery are to be sold in naira and not in the United States dollar as speculated in some quarters, oil marketers clarified. Dealers in the downstream oil sector also stated that the registration process for marketers at the refinery was still ongoing, as many operators had continued to register with the plant..
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- FIRS targets N19.4trn revenue
The Federal Inland Revenue Service surpassed its 2023 revenue target by N816bn, a 107 per cent performance over the set goal and has set a target to collect N19.4 turn in tax this year. This target represents a significant increase of 56.9 per cent from the previous year’s actual revenue and 67.91 per cent from the previous year’s target.
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- Nigeria seeks to expand $11.8bln bilateral trade with India
The federal government is seeking to expand over $11.8 billion bilateral trading partnership with the Republic of India in a bid to boost growth in key sectors of the Nigerian economy. Speaking on Tuesday at the Nigerai-India Business Council (NIBC) held in Abuja, the Minister of Industry, Trade and Investment, Dr Doris Uzoka Anite commended India for investing much in Nigeria. India is among Nigeria’s top 10 trading partners, and Nigeria is India’s largest trading partner in Africa.
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- FX crisis plunges Nigeria’s non-oil exports to $4.5bn
The value of Nigeria’s non-oil export revenue recorded a marginal decrease to $4.5bn in 2023, the Nigerian Export Promotion Council has said. The drop represents a $300m or 6.3 per cent decline from the $4.8bn revenue accrued to government coffers in 2022 and $500m less than the $5bn target set by the council for the year.
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Ghana
- World Bank approves $300 mln in funding for Ghana
The World Bank has approved $300 million in funding to help Ghana’s economic recovery. The decision comes after the West African country reached a deal to restructure $5.4 billion of loans with its official creditors, a milestone in Ghana’s quest for debt relief as it charts its way out of the worst economic crisis in a generation. The financing is the first in a series of three operations of $300 million each and part of a broad World Bank engagement for crisis response and resilience in Ghana.
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- CBG to reduce NPLs to single digit
Consolidated Bank Ghana (CBG) is working to reduce the level of non-performing loans (NPLs) to single digit during the year. That, the bank intends to achieve by tightening is risk management systems and engaging its clients, particularly, the small and medium scale enterprises (SMEs), which are a core of the bank’s focus.
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- Domestic Gold for Reserve Programme strengthens Ghana’s currency – Governor
The Bank of Ghana (BoG) says its Domestic Gold for Reserves Programme has been a good buffer to stabilise the Ghana’s currency last year and the programme will continue this year. Dr Ernest Addison, Governor of the BoG, said the Programme helped the BoG last year to raise $1 billion to shore up the Cedi. This was more than the $600 million the International Monetary Fund (IMF) disbursed to Ghana last year under the IMF Extended Credit Facility three-year $3-billion deal with Ghana.
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Francophone West Africa (WAEMU)
Ivory Coast
- Ivory Coast Gets $8 Billion in Demand for Eurobond Sale
Ivory Coast sold its first dollar bonds in almost seven years, issuing two tranches of debt totaling $2.6 billion in an offering that was oversubscribed more than three times. The world’s biggest cocoa producer received more than $8 billion in combined demand for a sustainable bond maturing in 2033 and a conventional offering due in 2037, the Ministry of Finance and Budget said in a statement. The nation issued $1.1 billion via the sustainable bond and $1.5 billion for the conventional debt.
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- Ivory Coast Inflation Rate Quickens to 3.9% in December
The annual inflation rate in the Ivory Coast rose to 3.9% in December 2023, from 3.7% in each of the previous two months. Main upward pressure came from prices of food & non-alcoholic beverages (6.7% vs 6.2% in November). On a monthly basis, consumer prices went up by 0.9% in December, the most in five months, after a 0.2% increase in the prior month.
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Senegal
- Niger, Senegal seen growing fastest in Africa ahead of Nigeria
Niger, Senegal, Guinea-Bissau, Angola and Sao Tome and Principe are the top five African countries projected to have the fastest gross domestic product (GDP) growth rate in 2024, an analysis from the latest World Bank report shows.
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East Africa
Kenya
- Kenya Seeks to Boost Bond Trading Volumes, Bondholder Base.
Target is to expand both the local and foreign investor base, enhance depth of the capital markets and address high cost of domestic debt financing by both companies and the Kenyan government, according to presentation by country’s markets regulator.
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- Kenya to Sell $429 Million of Bonds to Fund Development Projects.
Kenya plans to raise 70 billion shillings ($429 million) through the sale of infrastructure bonds next month, according to people with knowledge of the matter.
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- Kenya Shilling’s Lows Deepen Ahead of Eurobond Payment Deadline.
New funding pledges of nearly $900 million ahead of a Eurobond repayment deadline are failing to defend Kenya’s shilling from fresh lows, with analysts forecasting further weakness as the rising cost of imports heightens demand for dollars.
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- Kenya Dec. Overseas Remittances Rise 4.3% Y/y
Kenya’s overseas remittances rose 4.3% y/y in December versus +2.8% in November, according to the Central Bank of Kenya. Total remittances rose to a 5-month high of $372.6 million.
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Tanzania
- Bank of Tanzania Sets Central Bank Rate at 5.5% for Q1
Tanzania’s monetary policy committee began implementing monetary policy using interest rates, transitioning from monetary targeting, according to a statement on the central bank’s website.
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Uganda
- Uganda Starts Negotiations With Alpha MBM on Refinery Venture
Uganda signed a memorandum of understanding with UAE’s Alpha MBM Investments for a partnership to build a 60k b/d refinery, Energy Minister Ruth Nankabirwa said in an online briefing on the nation’s oil and gas sector.
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- Uganda’s Eagerness to Cut Rates Damped by Global Uncertainties
Uganda is leaning toward easing monetary policy but is biding its time amid potential headwinds including the outlook for oil prices, said Michael Atingi-Ego, deputy governor of the central bank.
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- Access Bank Plans to Buy 80% Stake in Uganda Finance Trust.
Nigeria’s Access Bank signs a definitive agreement to make an equity investment in Uganda’s Finance Trust Bank. Deal will see Access Bank concurrently acquiring shares held by FTB’s institutional investors who have sought to exit to strategic and long-term shareholder, the companies say in a joint statement.
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South Africa
Angola
- Angola produces 1.098 mln barrels of crude oil daily in 2023, ranks 3rd in Africa
Angola produced an average of approximately 1.098 million barrels of crude oil per day in 2023, ranking as the third-largest producer in Africa, only behind Nigeria and Libya, according to calculations based on official data.
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- Blinken Sees Growing Partner in Angola On Tour Of African Democracies
US Secretary of State Antony Blinken explored greater coordination with emerging regional partner Angola on Thursday, capping a tour of Africa to champion US-friendly democracies as global crises mount.
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- Angolan national Agency approves operators for 12 oil blocks
The Angolan National Oil, Gas, and Biofuels Agency (ANPG) announced on Monday January 22 that nine companies, both domestic and foreign, have been qualified as operators of the Lower Congo and Kwanza onshore basins and five others as non-operators.
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South Africa
- ANC Lags Main Rival in Donation Drive as South Africa Vote Looms
The Democratic Alliance, South Africa’s main opposition party, secured more large donations than the ruling African National Congress and its other rivals in the lead-up to this year’s national elections, bolstering its campaign.
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- South Africa Inflation at Four-Month Low Before Rate Verdict
South Africa’s inflation rate fell for a second straight month, giving the central bank food for thought on the eve of its policy decision that’s expected to keep borrowing costs unchanged at a 2009 high.
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- South Africa Set to Hold Rates at First Meeting of 2024
South Africa’s central bank is poised to keep interest rates on hold at its first meeting of the year and may give no hint that policy easing is coming soon, despite tamer inflation.
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- Fund managers see rand strengthening to R17.73 in 2024
After a measly 3% gain in equities in 2023, local is lekker seems to be the predominant theme among fund managers, according to the latest Bank of America (BofA) fund manager survey.
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- South Africa consumer inflation falls to 5.1% y/y in December
South Africa’s headline consumer inflation fell to 5.1% year on year in December from 5.5% in November, statistics agency data showed on Wednesday.
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Zambia
- Zambia Inflation Nears Two-Year High as Currency Slides
Zambia’s annual inflation rate rose to an almost two-year high amid the ongoing depreciation of its currency, piling pressure on monetary policymakers to act when they meet next month.
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- Zambia Inflation Nears Two-Year High as Currency Slides
Zambia’s annual inflation rate rose to an almost two-year high amid the ongoing depreciation of its currency, piling pressure on monetary policymakers to act when they meet next month.
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- First Quantum Agrees 8% Pay Hike With Zambian Mine Unions
Company signs deals with six mining unions covering its Kansanshi Mining and FQM Trident units in Zambia, it says in statement.
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- Lumwana Super Pit Project on Track for First Production in 2028
The Lumwana copper mine’s Super Pit expansion project has been accelerated with first production now scheduled for 2028, Barrick president and chief executive Mark Bristow advised Zambian president Hakainde Hichilema at their meeting here today.
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- OECD Announces Zambia Joins Global Forum on Tax Information Exchange
The Organization for Economic Cooperation and Development (OECD) Jan. 17 announced that Zambia joined the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum).
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- China’s JCHX Plans to Pay USD2 for 80% of Zambia’s Lubambe Copper Mine
JCHX Mining Management said the Chinese contractor plans to acquire an 80 percent stake in Zambia’s Lubambe Copper Mine, which is technically insolvent, for just USD2, with the aim of turning around its namesake mine.
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Zimbabwe
- Zimbabwe to Hold Rate-Setting Meeting as Currency Flounders
Zimbabwe’s central bank will hold its first rate-setting meeting of the year next Monday as it seeks to deal with a currency rout.
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- US Withdraws From Zimbabwe’s $18 Billion Debt Talks, Herald Says
The US will no longer participate in talks over the restructure of $18 billion in debt owed by Zimbabwe to various international financial institutions because of a lack of electoral reform, the state-controlled Herald reports, citing Elaine French, the Charge d’Affaires at the US embassy.
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- Zimbabwe plans new measures to prop up currency
Zimbabwe plans to announce new measures to stem the decline in the nation’s currency on the official and parallel markets, according to the state-controlled Sunday Mail newspaper. The local dollar has weakened 32% so far this year on the official market, making it easily the world’s worst-performing currency. It has declined more than 40% on the parallel market.
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- Zimbabwe’s currency turmoil is temporary, central bank chief says
Zimbabwe’s currency turmoil on the parallel market over the past three weeks, which has been fueled by year-end demand, is “temporary,” the country’s central bank governor said.
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Central Africa
Congo
- Congo and China Talking $7 Billion in Finance, Tshisekedi Says.
China and Democratic Republic of Congo are discussing $7 billion in financing as part of a renegotiated minerals-for-infrastructure deal, President Felix Tshisekedi said Saturday at his second inaugural address in the capital, Kinshasa.
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Gabon
- Maurel & Prom Says Has Made Proposals to Gabon on Assala
Maurel & Prom will maintain its partnership proposals regarding its plan for Assala, and remains at disposal of Gabonese authorities, according to a statement published alongside earnings.
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