February 23, 2024/United Capital Research
Anglophone West Africa (WAEMU)
Nigeria
- Foreign capital inflow to banking industry drops to $832m
An evaluation of the Q4-2023 Capital Importation Report by the NBS shows that, the banking sector received about $832.64m in foreign capital flow into Nigeria in 2023, which was about 60.0% lower than the inflow in 2022. The bank with the largest inflow of foreign capital in the year under review was CitiBank Nigeria Limited at $1.03bn, following was Stanbic IBTC Bank at $919.32m, then First Bank of Nigeria with $447.69m. Despite its poor performance in 2023 compared to the previous year, the banking sector had been one of the largest recipients of foreign capital.
- Telecom tariff hike imminent as operators await NCC’s clearance
KPMG has been commissioned by the Nigerian Communications Commission (NCC) to carry out a cost-based study for the telecoms industry. The study will reflect the current economic conditions on both voice and data services of telecoms operators. Similarly, KPMG is expected to recommend the most appropriate pricing structure for the industry. Consequently, there may be a hike in the cost of telecom services depending on the recommendations of the ongoing study by KPMG.
- FG seeks $10bn to stabilise exchange rate as naira tumbles
President Bola Ahmed Tinubu was represented by the Vice President Kashim Shettima at the inaugural public wealth management conference held on Tuesday in Abuja. During the event, the Vice President announced that the Federal Government will raise about $10.0bn in revenue to bolster liquidity in the FX market. Mr. Kashim acknowledged that prior years of mismanagement and underutilization resources have affected Nigeria’s assets, both within and beyond its borders. This has resulted in revenue losses that have impeded economic growth. However, the newly restructured Ministry of Finance Incorporated will act as a custodian and active manager of these assets.
- Petrol import reduced by 1billion litres in seven months
According to a report by the National Bureau of Statistics (NBS), Nigeria’s monthly petrol import has reduced by about 1bn litres since fuel subsidy was removed in June by President Bola Ahmed Tinubu. The report showed that Nigeria did not produce a litre of Premium Motor Spirit (PMS) locally in 2021, 2022, and in the first half of 2023. Stated in the Petroleum Products Distribution Statistics Half Year 2023, PMS truck out stood at 11.48bn litres, indicating a 5.83% decrease when compared to 12.19bn litres recorded in the first half of 2022.
Ghana
- Ghana’s 2023/24 cocoa output seen almost 40% below target
Ghana’s cocoa output for the 2023/24 season is expected to be almost 40% below a target of 820,000 metric tons. Strong seasonal winds and a lack of rain are among the main factors behind the shortfall, along with smuggling, damage caused by illegal gold mining, and swollen shoot disease.
- Let’s work together to achieve GH¢146bn target for 2024
Mohammed Amin Adam, the newly appointed Finance Minister, has urged the Ghana Revenue Authority (GRA) to work hard to achieve its financial targets for the fiscal year 2024. He stressed that the GRA should adhere to a sophisticated roadmap that balances a user-friendly approach with the uncompromised execution of its mandate.
Francophone West Africa
Mali
- Mali to Revamp Part of Its Energy Debt as Power Cuts Intensify.
Mali is in talks with lenders to restructure loans made to the state energy company as it takes steps to address the sector’s shortcomings amid unprecedented power cuts. About half of Energy du Mali SA’s 600 billion CFA franc ($989 million) debt is owed to banks, Minister of Energy and Water Resources Bintou Camara said on state-broadcaster ORTM.
- Mali Forecasts 5.4% Growth Rate in 2024, up From 4.7% Last Year.
Mali’s government expects 5.4% economic growth this year, up from 4.7% last year in 3.7% in 2022, Economy and Finance Minister Alousseni Sanou said on state-owned ORTM television.
- Mali to Offer 1.443 Trillion CFA Franc of Debt in 2024
Amount to be raised on the regional debt market to help finance the 2024 budget, Minister of Economy and Finance Alousseni Sanou says in the capital, Bamako. Mali raised 1.012 trillion CFA franc on the West African Economic and Monetary Union market in 2023.
Ivory Coast
- Cocoa Sees Biggest Gain Since 2012 on Ivory Coast Supply Woes.
Cocoa futures in New York had their biggest gain in more than a dozen years as dry weather undermines West African supply. The most-active futures contract rose as much as 7.5% on Tuesday, the biggest intraday move since January 2012. The increase extends the advance of the key chocolate ingredient to about 34% this year, with declining West African production propelling the rally.
- Ivory Coast January Consumer Prices +3.1% Y/y; -0.9% m/m.
Ivory Coast’s inflation rate slowed from 3.9% in December according to data published by the Abidjan-based statistics agency. Food & non alcoholic beverages prices +4.5% y/y, -2.5% m/m Housing, water and energy prices +3.4% y/y, +0.2% m/m. Health prices +1.2% y/y, -0.1% m/m.
East Africa
Kenya
- Kenya’s Public Debt Jumps 21% y/y to 11.1t Shillings by End-2023.
Kenya’s public debt increased from 9.21 trillion shillings a year earlier, according to a quarterly economic and budgetary review. Domestic debt increased 11% to 5.05 trillion shillings. External debt, including the international sovereign bond, was 6.09 trillion shillings.
- Kenya Affirmed at B by Fitch.
Kenya’s long-term issuer default rating was affirmed by Fitch at B. Outlook remains negative.
Tanzania
- World Bank, Tanzania Agree €361m Loan for City Improvements.
The World Bank loan will finance infrastructure projects to improve services in commercial hub Dar es Salaam, Tanzania’s Finance Ministry says in a statement on its website. The loan agreement signed on Tuesday will go toward Phase II of the Dar es Salaam Metropolitan Development Project, DMPD, which also includes construction of roads and drainage systems in the city of more than 5 million people.
Uganda
- Uganda, Tanzania in Talks Over Oil Products Pipeline
Uganda is negotiating with its southern neighbor for the construction of a joint pipeline to import oil products, Kampala-based Daily Monitor newspaper cites Energy Minister Ruth Nankabirwa. Uganda to seek tax waivers in the talks because the Tanzanian route is more expensive.
- Uganda Increases 2024-25 Budget Estimate to 53.34t Shillings.
East African country’s budget for the 12 months through June 2025 is higher than the 52.74 trillion shillings planned for 2023-24, the Finance Ministry says in a circular on its website. Domestic revenue of 29.96 trillion shillings. Budget support of 311 billion shillings. Domestic borrowing of 4.12 trillion shillings. Project support of 9.2 trillion shillings. Domestic debt refinancing of 9.46 trillion shillings. Discretionary funds projected to drop to 21.74 trillion shillings from 25.21 trillion shillings y/y due to coordinated fiscal and monetary policies.
Southern Africa
South Africa
- South Africa taps contingency reserves to limit rising debt
South Africa’s government will draw down $8 billion over the next three years from contingency reserves held at the central bank to limit rising debt, the National Treasury said on Wednesday. Africa’s most industrialised economy has barely grown in more than a decade, with rising debt-servicing costs eating up a growing share of the national budget.
- South Africa’s Godongwana Says 2024 Budget No Election Giveaway
South African Finance Minister Enoch Godongwana said his 2024 budget wasn’t designed to curry favor with voters and the country’s top two problems were fixing its debilitating power and logistics problems.
- South Africa announces tax incentives to boost EV production
According to Bloomberg, the new measure, announced in Wednesday’s budget, allows for a 150% tax deduction on investments, addressing concerns from automakers.
- South Africa Power Cuts See Record Seed Round for Solar Startup
Interminable power cuts have driven a record seed-funding round for South African startup Hohm Energy, which connects homeowners with installers and financiers to ease the process of installing rooftop solar panels.
- South Africa consumer inflation falls to 5.1% y/y in December
Zambia’s currency is in its longest winning streak in nearly a year, supported by an unexpectedly large interest-rate hike and a decree that local banks hold back more funds in reserve.
Zambia
- Zambia Kwacha Turns World Beater With Help From Central Bank
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.
- 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.
Zimbabwe
- Zimbabwe: BNC Targets Return to Full Production in March
Bindura Nickel Corporation (BNC) says it will focus on commissioning the SubVertical Rock Winder (SVR) bull gear in the fourth quarter of the firm’s trading period, which ends in March. The equipment has stalled production since September 2023.
- IMF says Zimbabwe should speed up currency reforms
Zimbabwe has not been able to secure financing from the likes of the IMF for more than two decades due to arrears in servicing its debt to lenders including the World Bank, the African Development Bank and European Investment Bank.
Angola
- Paulino Jeronimo Gets a Second Term as Head of Angola’s Petroleum Regulator
Angolan President Joso Lourenco, declared the term of office of the Board of Directors of the National Oil, Gas and Biofuels Agency (ANPG) to be over.
- Angola to export more crude oil cargoes in April
Angola plans to raise crude oil exports to 1.12m b/d in April, according to a preliminary schedule seen by Bloomberg News.
- 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.
Central Africa
Cameroon
- Cameroon Seeks $580m IDA Loans for Road, Electricity
The Central African nation intends to sign two loan agreements with the International Development Association to finance roads and electricity networks, President Paul Biya says in a statement. The first loan of $280 million is for the Mora-Dabanga-Kousserie highway. The second facility of $300 million will be spent on improving power supply to households.
- Cameroon commits to start automatic exchange of financial account information in 2026
Cameroon, a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) since 2012, has committed to implement the international Standard for Automatic Exchange of Financial Account Information in Tax Matters (AEOI) by September 2026. This ever-growing scope is crucial to ensure the Standard’s effectiveness in combating tax avoidance and evasion.
- Moody’s announces completion of a periodic review of ratings of Government of Cameroon
Moodyʼs Investors Service (Moodyʼs) has completed a periodic review of the ratings of Cameroon and other ratings that are associated with this issuer. The review was conducted through a rating committee held on 8 February 2024 in which Moodyʼs reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), and recent developments.
Democratic Republic of Congo (DRC)
- DR Congo seeks $2.6bn aid for millions displaced by rebel attacks
The Democratic Republic of Congo (DRC) and the UN have launched an appeal for $2.6 billion in emergency aid for a humanitarian crisis in the country’s conflict-torn eastern region. Fighting has escalated in recent weeks between the M23 rebels and Congolese armed forces near the provincial capital, Goma, killing dozens. Eastern Congo is rich in mineral wealth.
