March 8, 2024/United Capital

Anglophone West Africa
Nigeria

• Banks increase lending rates after CBN’s jumbo MPR hike

Nigerian banks have increased their lending rates following the record hike in the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN), in a development that will see businesses and individuals with existing loan facilities with the banks pay more to service those loans. Zenith Bank raised its interest rate by 500bps to 30% from 25%, GT Bank raised theirs by 500bps, and Stanbic IBTC raised theirs by 300bps.
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• Nigeria’s electricity, fuel subsidies may gulp N7tn – IMF

The International Monetary Fund (IMF or the Fund) highlighted that Nigeria may incur an expenditure of around N7.0tn, which is about 3.0% of GDP in 2024 should the existing fuel pump price cap and electricity subsidy be upheld in 2024. The Fund further added that, the current administration has capped retail fuel and electricity prices, ostensibly to ease the impact of rapidly rising inflation on living conditions, thus partially reversing the fuel subsidy removal.
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• Heirs Energies expands gas supply to Aba power plant

Integrated energy company, Heirs Energies, has expanded its gas supply business to the newly opened 188megawatt power plant operated by Geometric Power Limited in Aba, Abia State. The company disclosed that it has been providing gas to TransAfam Power Limited, which has a capacity of 966MW, and First Independent Power Limited, which has a capacity of 541MW, to supply the Nigerian National Grid. The Chief Executive Officer of Heirs Energies, Osa Igiehon, further added that Heirs Energies’ gas supplies to these critical power plants not only reinforce its major role in Nigeria’s energy sector but also underscore its strategic vision in developing operational synergies throughout the energy value chain.
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• President Tinubu says his administration has attracted $30 billion FDI commitments in 9 months

President Bola Tinubu at the Leadership Annual Conference and Award event in Abuja on Tuesday, revealed that within the first nine months of his term, his administration has successfully drawn $30.0bn in Foreign Direct Investment (FDI) commitments, into the real sectors of the economy, including manufacturing, telecommunication, healthcare, oil and gas and others. He further added that, despite facing challenging times, Nigeria is seizing unprecedented opportunities to redirect its path towards establishing a new and sustainable economic framework, transitioning from the previously prevalent practices of rent-seeking and wasteful expenditure.
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Ghana

• Electricity, gas sub-sector records highest producer price inflation

The electricity and gas sub-sector recorded the highest y/y producer price inflation rate of 44.2% from January 2023 to 2024. It is an increase of 0.4% over the December, last year, this was followed by the mining and quarrying sub-sector with 21.3% and the manufacturing sub-sector recorded the lowest y/y producer inflation rate of 9.7%.
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• Govt allocates GHC4 billion for depositors of failed AMCs

According to a deputy Minister of Finance, Abena Osei-Asare, the government has allocated a total of GH¢4bn in the 2024 budget to pay the locked-up funds of customers of failed Asset Management Companies (AMCs). She further mentioned that the money would be paid to depositors of AMCs, including the Blackshield Company Limited, which had been able to validate their investment documents with the Security and Exchange Commission (SEC). The money will be the remainder of the GH¢8.9bn locked-up funds of AMCs as a result of the clean-up in the banking sector. Those who are to receive payment are those whose locked-up investments are GH¢50,000 and over.
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Francophone West Africa (WAEMU)
Senegal

• Senegal schedules presidential election for March 24

Senegalese President Macky Sall has scheduled a delayed presidential election for March 24, the government said after a top court ruled that a proposal to hold the vote after his mandate expires on April 2 was unconstitutional.
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• Russia boosts fuel exports to Senegal on shipping sctor demand

Russia has significantly increased its fuel exports to Senegal this year on rising bunker demand, as more companies are diverting cargoes across Africa instead of using Red Sea routes. Russian fuel oil supplies to Senegal in the first two months of 2024 reached 550,000 metric tons compared to 1.08 million tons in the whole of 2023 and 0.37 million tons in 2022, replacing oil product supplies from Rotterdam.
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• The African Development Bank Donates $20 Million to Strengthen Food Security and Increase Incomes of Small Producers

The Board of Directors of the African Development Bank Group granted a donation of $20 million to Senegal to implement the Post-Covid Food and Nutrition Security Enhancement Project (PRESAN-PC), designed to increase the agricultural production and incomes of vulnerable women and young people over the long term. The Bank’s financial support comes from the Global Agriculture & Food Security Program (GASFP), a multilateral fund aimed at improving incomes and food security for vulnerable populations in developing countries by increasing the volume and quality of investments made in the public and private sectors.
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Niger

• Burkina Faso, Mali and Niger to form joint force to fight jihadist insurgency

Mali, Niger and Burkina Faso will form a joint force to meet the countries’ defence and security goals. The announcement was made following the first official meeting of the three nation’s military chiefs of staff in Niamey.
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East Africa
Kenya

• Stanbic Bank Kenya PMI Report for February 2024

Business activity expanded across the Kenyan private sector in February, according to the Stanbic Bank Kenya PMI®, as a further softening of inflationary pressures supported a fresh increase in new order volumes. Lower fuel prices helped to cool input cost inflation to a 26-month low, supporting the softest increase in output prices for one-and-a half years.
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• Kenya Turns to Sustainability Swap Before $2 Billion Debt Deadline

Kenya is looking into a kind of debt swap that would bolster its finances as it faces a crucial repayment deadline, while channeling funds into basic social services, according to people familiar with the early-stage deliberations.
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• Kenya Lawmakers Approve Plan to Issue Debt Swaps to Fund Budget

Kenyan lawmakers approved the Treasury’s plans to offer debt-for-nature and food-security swaps to bolster the nation’s finances for its next fiscal year starting July 1.
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• 19 new digital credit providers obtain operating licences in Kenya

In a statement released on Wednesday, March 6, 2024, the regulator noted that the newly licenced credit providers were also duly registered with other regulatory bodies, like the Office of the Data Protection Commissioner, to facilitate compliance with the regulations of the digital lending space.
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Rwanda

• Rwanda Producer Prices Rise the Least in 7 Months

Producer prices in Rwanda increased by 19 percent year-on-year in January of 2024, slowing from a 20.4% gain in December 2023, pointing to the softest pace in producer prices since last June.
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• Rwanda January Trade Deficit $380.81M; Prior -$368.6M

The deficit in the balance of formal trade in goods was US$ 380.81 million in January 2024, an increase of 3.31 percent compared to the previous month of December 2023. Year-to-year, the formal trade in goods deficit increased by 29.49 percent on the deficit of January 2023.
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• Rishi Sunak’s Rwanda asylum bill suffers defeats in House of Lords

The House of Lords on Monday inflicted several defeats on Prime Minister Rishi Sunak’s flagship Rwanda asylum bill, including by seeking to ensure the legislation is fully compliant with domestic and international law. Members of the UK parliament’s second chamber voted for five amendments to Sunak’s controversial bill aimed at sending asylum seekers to Rwanda by the spring.
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Tanzania

• TIC calls for partnerships in investment projects

The Tanzania Investment Centre (TIC), has announced a call for investment projects seeking partnerships as part of its ongoing efforts to attract more investments vital in fostering economic growth and development in the country. Through this initiative, TIC aims to promote these ventures to incoming investors and provide matchmaking services to existing Tanzanian investments seeking partnerships.
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• Z’bar current account deficit increases

Zanzibar’s current account deficit increased to 417.0 million US dollars in the period ending December last year from 354.9 million US dollars in the corresponding period in 2022 largely due to an increase in imports of goods and services. According to the Bank of Tanzania (BoT) monthly economic review for January, the imports of goods and services rose to 622.1 million US dollars from 555.6 million US dollars in the year ending December 2022 attributed to an increase in capital and intermediate categories of goods import.
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Uganda

• Uganda central bank raises interest rate over shilling slide

Uganda’s central bank raised its key interest rate by 50 basis points to at a special meeting called after the local shilling currency fell to an all-time low. The decision to raise the Central Bank Rate to 10.00% follows three meetings where the rate was kept unchanged.
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South Africa
Angola

• Angola Tax Agency Announces Elimination of Annual Declaration for Employment Income Tax

The Angolan General Tax Administration Feb. 8 announced that taxpayers in Group A of the employment income tax and entities responsible for withholding it from taxpayers in Groups B and C are exempt from submitting Model 2 tax declarations regarding employment income.  Additionally, Group A taxpayers can verify their annual declarations on the taxpayer portal.
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South Africa

• South Africa State Firms: Outages Ramped Up; Rail Infrastructure

South Africa’s state-owned power utility will ramp up rolling power outages because of delays in returning three generating units to service and the need to replenish emergency reserves. Eskom Holdings SOC Ltd. will cut 2,000 megawatts of power from the grid from 4 p.m. until 8 p.m. on Wednesday. The utility will then remove 4,000 megawatts until 5 a.m. on Thursday, it said in a statement.
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• South Africa Tax Agency Posts March 2024 Tax Calendar

The South African Revenue Service Nov. 28, 2023, announced the tax calendar for March 2024, containing filing and payment deadlines for various taxes. The calendar includes deadlines of: 1) March 7, for pay-as-you-earn (PAYE) withholding tax filing and payment; 2) March 25, for VAT paper filing and payment; and 3) March 28, for VAT electronic filing and payment for Category A taxpayers, and for estimated corporate income tax (CIT) payments.
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• South Africa SARB Govt Bond Holdings Fall to ZAR32.7b in Feb

South African Reserve Bank’s holdings of nation’s government securities decreased from 33.5 billion rand in the previous month, according to the central bank. Accommodation to banks increased to 0.8 billion rands from 0.2 billion rands. Repurchase agreements up to 0.4 billion rand from 0.2 billion rand. Utilization of cash reserves up to 447.4 million rand from 1.8 million rand.
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• South Africa 4Q Current Account as % of GDP – 2.3%

South Africa’s current account as percentage of GDP fell more than economists expected in 4Q. Current account as percentage of GDP fell to -2.3% (estimate -1.2%) in 4Q from revised -0.5% in 3Q, according to the South African Reserve Bank. Current account deficit widened to ZAR165.53b (estimate – ZAR94b) from revised -ZAR34.377b in 3Q.
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Zambia

• Zambia introduces welcomed revisions in the Trade Marks Bill 2023

Zambia’s Trade Mark Legislation is currently the Trade Marks Act (Chapter 401) 1958 (“TM Act”) and in 2023 the Trade Marks Bill 2023 (“TM Bill 2023”) was passed. The commencement date for the TM Bill 2023 is not yet known and in terms of S155 the Minister may make Regulations for the better carrying out of the provisions of the Act.
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• UN To Mobilise $30.0m To Support Zambia

The United Nations (UN) system in Zambia says it will mobilise US$30 million for humanitarian assistance, in response to President Hakainde Hichilema’s declaration of the current drought as a national disaster and emergency. In response to the Presidential declaration of the drought as a national disaster and emergency, the UN is working with the Government in preparing a drought response plan to support affected households in 84 severely affected districts across seven provinces.
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• $1.3bn Power Fund Rolled Out

The Southern African Power Pool (SAPP) and Climate Fund Managers have launched a new $1.3 billion fund to build high-voltage transmission lines linking member countries. The Regional Transmission Infrastructure Financing Facility (RTIFF) starts with $20 million in commitments from SAPP. It aims at raising close to $500 million in 2025 to overcome a key obstacle constraining growth in an evolving energy sector.
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• Zambia Feb. Private Sector PMI 47.3 vs 49.2 in Jan

Stanbic Bank and S&P Global release purchasing managers’ index for Zambia’s private sector in February. Index falls to 47.3 from 49.2 in Jan.; Year ago 51.3. Lowest reading since March 2023. Output falls to 46.3 vs 48.3 in Jan. Third consecutive month of contraction.
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Zimbabwe

• Zimbabwe Gold Output Drops 2.2% Y/y to 1,853 Kgs in February

Production declined from 1,895.2 kilograms in the same month last year, Fidelity Gold and Refinery says in an emailed statement on Monday. Supply by large scale miners was 988.7 kgs compared with 756.1 kgs a year earlier, while output by small scale miners dipped to 864.3 kgs from 1,139.1 kgs prior year.
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Central Africa
Cameroon

• Moody’s maintains tough stance on Cameroon despite debt stability predictions

U.S. rating agency Moody’s has maintained a strict (Caa) rating for Cameroon, even though the country’s debt is projected to remain stable until 2027. The agency cites insufficient budgetary performance and emphasizes the need for political stability, especially in a global context where democracies are under significant strain.
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• Inflation rates soar in Cameroon’s major cities, exceeding the Cemac threshold (INS)

Consumer price levels in nine out of the ten major cities in Cameroon exceeded the Cemac threshold of 3% in January 2024, according to reports by the national stats agency INS. Remarkably, Bamenda, the regional capital of the Northwest, despite facing attacks by separatist militias, recorded an inflation rate of just 3% in January 2024, year-on-year.
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• Cameroon suspended from the Extractive Industries Transparency Initiative

The Extractive Industries Transparency Initiative (EITI) announced that Cameroon has been suspended from its program “until its next validation”. The EITI Board expresses strong concern over breaches of the EITI protocol: Participation of civil society related to freedom of expression and association.
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Central Africa Republic

• BDEAC launches first multi-tranche bond issue to raise CFA50bn

The Central African States Development Bank (BDEAC) is poised to open subscriptions for its inaugural 2024 bond issuance at the Central African Securities Exchange (BVMAC) in Douala, Cameroon. Investors have until March 22, 2024, to contribute towards BDEAC’s fundraising goal of CFA 50 billion in this phase of the operation. This issuance is part of a broader initiative to accumulate CFA 100 billion on the regional market throughout 2024.
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• CEMAC sees commodity price rise in Q4 2023 but faces bleak outlook for 2024

Export commodity prices for the six CEMAC countries experienced a 1.3% increase in the fourth quarter of 2023, according to the Composite Commodity Price Index (CCPI) by the Bank of Central African States (Beac). In the previous quarter, the increase was 8.3%. The central bank attributes this growth to rising prices in the agricultural market sector.
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• Central African appointed as the new governor of Beac amid regional challenges

Central African Yvon Sana Bangui has been appointed as the governor of the Bank of Central African States (BEAC), following a video conference held by the heads of state from the Economic and Monetary Community of Central Africa (CEMAC). He was officially installed in his new role on March 1, 2024, in Yaoundé along with the five other members of the new central bank government representing the six CEMAC countries.
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