February 9, 2024/United Capital
Anglophone West Africa (WAEMU)
Nigeria
- CBN Governor, Cardoso, says Nigeria’s inflation rate will drop to 21% in 2024
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured that Nigeria’s inflation rate will drop to 21.4% in 2024 amid the rising prices of foodstuff and other commodities, due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4%, aided by improved agricultural productivity and easy global supply chain pressures.
- NNPCL spends N267.98 billion on security as oil operators struggle
The NNPCL spent N267.98bn on security in 16 months as the burden of insecurities is telling on the profitability of oil companies in Nigeria amidst struggling oil production and dwindling foreign direct investment.
- Nigeria central bank audit finds irregularities in $2.4 bln of FX backlog
Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, stated that a forensic audit of $7 billion of overdue foreign exchange transactions the bank has been trying to clear had uncovered irregularities affecting $2.4 billion worth of the transactions. He further added that the irregularities ranged from missing paperwork to non-existent entities and beneficiaries receiving unauthorized foreign exchange allocations.
- Nigerian officials in talks with World Bank on reforms
Nigeria’s Finance and Budget Ministers alongside the Governor of the Central Bank of Nigeria (CBN) held talks with World Bank Executives to discuss the West African country’s economic recovery plans and seek support for its reforms. Some of Nigeria’s boldest reforms include, removing a popular fuel subsidy last May and scrapping some foreign exchange controls, but this has pushed up inflation to its highest levels in nearly three decades.
- Shettima inaugurates panel to unlock $2.5bn green economy
The Vice President of Nigeria, Kashim Shettima has inaugurated a committee that will develop the country’s Carbon Market Activation Plan. The committee is expected to guide the development of a National Carbon Market Activation Plan that will accelerate green growth and facilitate energy transition.
Ghana
- Government officially suspends controversial 15% VAT on electricity
Government had directed the imposition of the tax policy on electricity customers above the maximum consumption level specified for block charges for lifeline units, from January 1, 2024, to support the country’s Medium-Term Revenue Strategy and the IMF-Supported Post-COVID-19 Program for Economic Growth (PC-PEG) with the aim to mobilize revenue.
- ECG urges customers to assess wiring integrity after dam spillage
The Electricity Company of Ghana (ECG) has urged customers impacted by the Akosombo Dam spillage, resulting in power disruptions, to have their premises assessed and certified by Certified Electrical Wiring Personnel (CEWP) and Energy Commission of Ghana-accredited inspectors.
This move comes in response to complaints from affected communities, despite general power restoration, citing isolated cases of ongoing outages due to internal wiring issues caused by floodwater damage.
Francophone West Africa (WAEMU)
Senegal
- Senegalese lawmakers vote to postpone presidential election to Dec. 15
Senegal’s parliament on Monday voted to hold a postponed presidential election on Dec. 15 in the face of public outcry that led some opposition lawmakers to blockade proceedings until security forces intervened. This follows President Macky Sall’s unprecedented announcement of a postponement on Saturday that pitched the West African nation into uncharted constitutional waters and threatens to further tarnish its reputation as a bastion of democratic stability in a region swept by coups.
- ECOWAS Commission urges Senegal to return to original electoral calendar
The ECOWAS Commission is urging the political class in Senegal to take urgent steps to restore the electoral calendar in accordance with the provisions of the country’s Constitution. The commission further reminded the people of Senegal and the political class of their responsibility to maintain peace and stability in the country.
East Africa
Kenya
- Kenya Central Bank Chief Sees Scope to Support Battered Shilling.
Kenya’s central bank governor said the depreciation of the shilling that has lost almost a quarter of its value against the dollar since the start of last year is overdone, providing room for it to be supported.
- CBK Hikes Benchmark Rate By 50bps To 13%.
The Central Bank of Kenya Monetary Policy Committee (MPC) met on Tuesday, 7th February 2024, and decided to raise the Central Bank Rate (CBR) by 50bps to 13.0% from 12.5%, following a 200bps hike in the previous sitting.
- Kenya Opens $2 Billion Bond-Buyback Offer, Plans New Sale.
Kenya’s eurobonds maturing in June surged after the East African nation offered to buy back its $2 billion of debt and announced plans to sell new securities.
Tanzania
- Tanzania Jan. Consumer Prices Rise 3.0% y/y.
Tanzania’s consumer prices rose 3% y/y in January versus +3% in December, according to the National Bureau of Statistics Tanzania. Food and non-alcoholic beverages 1.5% y/y.
- China Proposes a $1 Billion Tanzania-Zambia Railway Revamp.
China presented a plan to spend more than $1 billion refurbishing a key railway connecting Zambia’s copper heartland with the Indian Ocean port of Dar es Salaam in neighboring Tanzania.
Uganda
- Uganda’s External-Debt Obligations Jump 16% This Fiscal Year.
Uganda’s external-debt obligations have risen 16% this fiscal year and the nation is banking on inflows for budget support, the oil industry and a recovery of portfolio investment to fund the repayments, according to the central bank.
- Uganda Dec. M3 Money Supply Rises 9.97% y/y.
Uganda’s M3 money supply rose 9.97% y/y in December versus +12.53% in November, according to the Bank of Uganda. Annual growth rate slowing first time since July 2023.
- Uganda Central Bank Maintains Key Rate Citing Subdued Inflation.
Uganda’s central bank kept its benchmark rate at9.5% as inflation remains below its medium- term target. “Inflationary pressures remain subdued, reflecting the continuing monetary effect of the supply side shocks, headline inflation around the world, and tight monetary and fiscal policies,” Deputy Governor Michael Atingi-Ego told reporters in the capital, Kampala, on Tuesday.
Rwanda
- Rwanda December Trade Deficit $367.2M; Prior -$305.8M.
Rwanda trade deficit widened to $367.2 million in December from $305.83 million in the previous month according to the Kigali-based statistics agency. Imports rose 22.1% on the month to $577.12m. Exports rose 25.8% on the month to $209.92m.
South Africa
Mozambique
- Mozambique’s $80 Billion Energy Overhaul to Tap Zambezi’s Power
Mozambique is seeking to become one of Africa’s biggest hydropower producers and launch a green hydrogen industry. The government plans to add 14,000 megawatts of hydropower capacity, with the bulk of that developed between 2030 and 2040, the government said in a 60-page Energy Transition Strategy.
- Mozambique: CTA to present investment projects worth $1.7 billion at CASP-2024
The Mozambican private sector will present an investment package worth US$1.7 billion at this year’s Annual Private Sector Conference (CASP). These are projects in different areas of the economy for which national entrepreneurs will be seeking funding during the 19th CASP.
South Africa
- South African factory activity slumps in January – Absa PMI
South African manufacturing activity slumped in January, with the headline Absa Purchasing Managers’ Index (PMI) falling to levels rarely seen. The seasonally-adjusted PMI dropped to 43.6 points in January from 50.9 in December, falling far below the 50-point mark that separates expansion from contraction. The index was partly dragged down by a sharp fall in the new sales orders sub-index, an indicator of demand.
- South Africa business activity contracts again in January – PMI
South African private sector activity contracted for a second consecutive month in January, hurt by weak demand and shipping disruption at the country’s major port, a survey showed. The S&P Global South Africa Purchasing Managers’ Index (PMI) inched up to 49.2 in January from 49.0 in December.
- South African business confidence index rises slightly in January
South African business confidence rose marginally in January, helped by increased merchandise imports, higher new vehicles sales, a rise in tourism and an uptick in retail sales, data showed. The South African Chamber of Commerce and Industry (SACCI) Business Confidence Index increased to 112.3 points in January from 112.1 in December.
- South Africa consumer spending pressures could ease in second half -analysts
South African retailers across apparel, electronics and home improvement are bracing for another challenging year but analysts believe consumer spending pressures should ease from the second half of the year when interest rates start to come down.
- South African manufacturing output rises 0.7% y/y in December
South Africa’s manufacturing output rose 0.7% year-on-year in December, after rising by a revised 2.5% in November, statistics agency data showed. Factory production was down 1.7% month-on-month in December, after rising by a revised 1.2% in November.
- National minimum wage increases in South Africa
Employment and Labour Minister Thulas Nxesi has announced a new National Minimum Wage (NMW) determination which will go up from R25,42 to R27,58 for each ordinary hour worked. In a statement on Saturday, the Department of Employment and Labour said the new NMW will come into effect from 1 March 2024.
Zambia
- Zambia Private Sector Contracts for 2nd Month
The Stanbic Bank Zambia PMI dropped to 49.2 in January 2024 from 49.6 in the previous month, marking the second consecutive period of contraction, as inflationary pressures continued to weigh on demand. New orders decreased for the second successive month due to a depreciation of the kwacha and associated rise in prices.
- Zambia says no timeline on debt restructuring as IMF seeks compromise
Zambia’s finance minister said he could not give a timeline for a debt restructuring deal with private creditors, while the International Monetary Fund’s Africa director urged all sides to compromise. Zambia was the first African country to default on its sovereign debt during the COVID pandemic in late 2020, and its protracted restructuring efforts have been beset by delays.
- Zambia set to negotiate bigger stakes in new mining projects
Zambia is keen to negotiate larger holdings in new mining projects in order to raise its revenue and boost spending by investors on social projects, mines minister Paul Kabuswe said. The push by Lusaka through state-owned ZCCM-IH would apply to future agreements, but does not include existing mines and should not unnerve investors.
Zimbabwe
- Zimbabwe Considers Yet Another Plan to Rescue Sinking Local Currency
Zimbabwe is considering overhauling its exchange-rate regime as the government seeks new measures to save its beleaguered currency. The latest proposals will be in a monetary policy statement the Reserve Bank of Zimbabwe and Treasury are jointly working on, according to Governor John Mangudya.
- Zimbabwe working on measures to stabilise currency, central bank governor says
Zimbabwe’s central bank and finance ministry are working on measures to stabilise the local currency, the central bank governor said. The Zimbabwean dollar has fallen about 40% since the start of the year, hurt by increased foreign-currency demand from civil servants being paid December bonuses and weaker commodity prices denting inflows.
Central Africa
Cameroon
- Cameroon speeds up road investment, aims to surpass current 8.39% paved network
The Cameroon government has announced plans to boost the paved road network in the country. According to official figures from the Ministry of Public Works, only 10,225.58 Km of the country’s 121,873 Km of roads were paved by December 2023. This equates to a paved network of only 8.39%.
- Cameroon implements new electricity price hike to achieve financial balance
As of January 1, 2024, Cameroon has witnessed a new surge in electricity prices, primarily impacting medium-voltage customers, labeled as “industrial clients.” This adjustment applies to about 2,000 clients out of Eneo’s 2 million customers, constituting around 0.1% of the overall portfolio.
