April 26, 2024/United Capital
Anglophone West Africa (WAEMU)
Nigeria
- Nigeria’s $2.25bn World Bank loan expected June.
Wale Edun, Minister of finance and coordinating minister for the economy, announced that the World Bank will, in June 2024, consider and give final approval to Nigeria’s $2.25bn loan request. The loan comprises a $1.5bn loan in Development Policy Financing and another $750.0mn in Programme-for-Results Financing.
- Again, Dangote slashes diesel, aviation fuel prices to N940, N980
Dangote Petroleum Refinery on Tuesday announced a further reduction in the prices of both diesel and aviation fuel to N940, and N980 per litre respectively. This is coming in the wake of its widely celebrated price reduction to N1,000 barely two weeks ago. The price change of N940 applies to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above.
- CBN resumes forex sale to BDCs at N1,021/$
The Central Bank of Nigeria (CBN) has resumed the sales of dollars to Bureau De Change operators (BDCs). The apex bank said it is set to sell $10,000 to BDCs at N1,021 per dollar and directed the operators to sell at a spread not more than 1.5% above the CBN rate. Earlier, the apex bank sold $10,000 to BDCs at a rate of N1101/$ and directed the BDCs to sell to eligible customers at a rate not exceeding 1.5 per cent above the purchase price. The current rate is 7.27% less than the previous price.
- IOCs insist on dollar payment for 80% crude sale.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced new guidelines for the purchase of crude oil by modular refineries. According to the disclosure, modular refineries will now be required to pay 80.0% of the purchase amount in United States Dollars, with the remaining 20.0% to be settled in the local currency, Naira.
- Nigeria spends $3.5 billion on debt service in 2023, up 55% YoY.
Data from the latest Quarterly Statistical Bulletin of the Central Bank of Nigeria (CBN) shows that, Nigeria incurred a debt service of $3.5bn for its external loans in the fiscal year ended 2023. According to the data from the apex bank Nigeria incurred $801.36mn, $368.26mn, $1,390.72mn and $943.17mn in the first, second, third and fourth quarter respectively. This $3.5bn spent represents a 55% increase from the $2.6bn incurred in 2022 as debt service-related payments for the country’s external debts. Data from the Debt Management Office indicates Nigeria has a total external debt portfolio of $42.29bn up from $41.69bn in 2022.
Ghana
- GRA clarifies decision to tax incomes of resident Ghanaians.
The Ghana Revenue Authority (GRA) has clarified its decision to tax the foreign incomes of resident Ghanaians. GRA in a statement on Monday, April 22, defended the decision, saying it is backed by the Tax Act 2015 (Act 896). The government announced the decision on Monday, April 15, in place of the suspended VAT on electricity, which it said created a revenue gap of about GH¢1.8 billion.
- AfDB approves $999,000 grant to Ghana, Senegal for green jobs in natural resource.
The African Development Bank (AfDB) has approved a $999,000 grant to support an initiative aimed at fostering green jobs for women, youth and people with disabilities in Ghana and Senegal. The project aims to foster inclusive economic growth by providing up to 500 green job opportunities and business development services to marginalized groups in Ghana and Senegal.
- Ghana to invest $60m in cashew sector.
The government has committed to invest $60 million in the cashew sector, including processing, the Chief Executive of Tree Crops Development Authority (TCDA), William Agyapong Quaittoo, has revealed. He explained that government had approved a $100 million loan from the World Bank, with about $60 million out of that amount expected to be invested in the sector. Also, 70 per cent of the $60 million will be invested in building several factories in the cashew catchment areas, spanning eight regions.
Francophone West Africa (WAEMU)
Senegal
- Senegalese president calls to change relations with EU.
President Bassirou Diomaye Faye called for a new vision in Senegal’s relations with the European Union (EU) to reflect the current reality better. During a visit to Senegal by European Council President Charles Michel, the African head of State noted that cooperation with the bloc is multiform, and a new shared vision of a fairer international order must exist.
- Russia eyes ports construction in Tanzania, Senegal for exports — Industry Ministry.
Russia is considering creation of ports to organize the cargo flow of domestic goods to African countries, department director of the Russian Ministry of Industry and Trade Roman Chekushov told TASS at the “Innoprom. Central Asia” international industrial exhibition.
East Africa
Kenya
- Kenya’s Economic Growth Rate to Slow to 5% in 2024-IMF Forecast
Kenya’s Gross Domestic Product (GDP) growth is projected to slow down to 5% in 2024 from 5.3% in 2023 before jumping to 5.3% in 2025. The April 2024 Regional Sub-Sahara Africa Economic Outlook by the International Monetary Fund (IMF) shows Kenya’s growth rates are, however, still considered strong and among the leading economies in sub-Sahara Africa that is not debt distressed.
- EU, Kenya trade deal gets Parliament nod
The National Assembly has approved the Kenya-European Union (EU) Eonomic Partnership Agreement (EPA), a trade, deal that guarantees traders access to the €13 trillion European market on duty-free (no taxes) and quota-free (unlimited exports) terms. The agreement also opens significant opportunities for the EU to trade and invest in Kenya.
- Debt beats development, recurrent spend combined
Kenya’s debt service costs have now overtaken its combined spending on recurrent and development projects due to the heavy maturing debts, underlining the nightmare that debt expenditure has become for the country. An analysis of data from the Treasury shows that in the nine months between July 2023 and March 2024, the government used Sh1.24 trillion to service debt compared to Sh1.11 trillion spent on salaries and executing development projects.
- State exempts cooking gas meters from value added tax
The government has exempted cooking as meters suppliers from paying the 16 percent Value Added Tax (VAT) in latest efforts to grow clean cooking. This follows the signing into law of the Statute Law (Miscellaneous Amendments) Bill, 2024 on Wednesday. The Act has amended the VAT Act, 2013 by including gas meters in Section A of the First Schedule listing VAT-exempt supplies. Being VAT-exempt means the meter sellers won’t charge their customers VAT and buyers will not reclaim VAT.
- Audit reveals KRA’s Sh1.7trn in uncollected taxes
Taxpayers are staring at about Sh1.7 trillion losses in contentious and uncollected taxes, exposing the Kenya Revenue Authority (KRA) to growing revenue shortages even as it struggles with collections. The amount includes Sh542 billion reported by the taxman as “erroneous, uncollectable and doubtful debts” and Sh1.16 trillion tax arrears that have been outstanding for more than three years.
- KPC takes over Kipevu oil terminal operations
Kenya Pipeline Company (KPC) has taken over operations and maintenance of the SH40 billion Kipevu Oil Terminal 2 (KOT2), targeting to improve the supply of petroleum products in the country and East African Community States. KPC management signed a Service Level Agreement (SLA) with the Kenya Ports Authority (KPA) to run the facility, which can handle four ships at a time and cut ship demurrage charges.
- Kenya seeks US support in fresh hunt for cheap loans
Kenya is now seeking the assistance of the US government to navigate through its cah criss by accessing cheap loans from the global financial markets. Nairobi is seeking a sovereign loan guarantee from Washington that would provide Kenya with access to financing from international capital markets at significantly lower rates.
Rwanda
- Rwanda Bill Becomes Law After Weeks of Parliamentary Deadlock
Rishi Sunak’s Rwanda Bill has become law after weeks of parliamentary deadlock, paving the way for deportation flights to get off the ground. The Safety of Rwanda (Asylum and Immigration) Bill became an Act of Parliament after being granted royal assent, the Lord Speaker told the House of Lords.
- Rwanda’s Tourism Revenue Hit $620 Million in 2023
Rwanda’s tourism revenue rose by 36 percent from $445 million in 2022 to reach $620 million in 2023 (approx: Rwf798 billion), as stated in the 2023 Rwanda Development Board (RDB) annual report. The growth generated from 1.4 million visitors indicates that the sector has surpassed 2019 revenues, at a recovery rate of 124 percent from the hurdles of Covid-19 pandemic. As a result of the country’s efforts to promote domestic tourism, this section increased to $47.7 million, contributing to increased visits to national parks which generated $35.79 million in 2023.
Tanzania
- Tanzania to Hold First Oil and Gas Licensing Round in a Decade
Tanzania plans to auction oil and natural gas blocks for the first time in a decade, as the country seeks to become a hub for LNG exports. The East African nation’s fifth licensing round will take place sometime in 2024/25, offering both onshore and offshore blocks, Deputy Prime Minister and Minister for Energy Doto Biteko said in a presentation to parliament.
- Tanzania 5G coverage at 13 percent, new report shows
The Tanzania Communications Regulatory Authority (TCRA) announced that 5G coverage sprang from zero percent in December 2023 to 13 percent at the end of the first quarter ending March 2024. This is approximately a year and a half since the latest mobile network service was rolled out in Tanzania. Operators have hailed the move, saying it points to a positive development towards the adoption of high-tech mobile phone network services in the country.
- Tanzania temporarily shut down five of its hydroelectric stations
The United Republic of Tanzania has temporarily shut down five of its hydroelectric stations in a bid to reduce excess electricity in the national grid.
- World Bank suspends Tanzania tourism fund over abuse allegations
The World Bank has suspended new disbursements from a $150 million fund to expand a national park in southern Tanzania, a spokesperson said on Wednesday, after the lender received allegations of killings and evictions by rangers last year.
Uganda
- Govt looks at capitalising UDB to solve high-interest rates
Businesses in Uganda, primarily traders, are protesting the high cost of borrowing money to operate. Therefore, government has said the only way it can step in is by investing in Uganda Development Bank (UDB), which would offer interest that is lower than market rates. Government says liberalization has reduced its ability to influence interest rates that commercial banks charge.
- Gold reclaims spot as Uganda’s largest export commodity
Gold reclaimed the number one spot as Uganda’s largest export commodity in the 12 months of February, according to data from the Ministry of Finance. Bank of Uganda data had previously indicated that 44 percent of Uganda’s export income was coming from gold, but this had been interrupted by almost a year of no export, due to suspended activity over tax-related issues.
- UEGCL asks govt to pay Shs40b for operation of Namanve plant
Uganda Electricity Generation Company Limited (UEGCL) has asked the Ministry of Energy to help it secure Shs41b to operate the 50 megawatts Nananve Thermal Power Plant. The poer station, whose assets were returned to government in 2022, has not received money dor maintenance and tariffs for over a year now.
- World Bank verifying $360m urban authority projects ahead of programme closure
A team of World Bank officials is in eastern Uganda to assess ongoing infrastructure projects under the $360m urban centres funding programme. The project seeks to improve local government infrastructure in urban centres. The week-long inspection is being conducted in the urban centres of Moroto, Mbale, Tororo, Busia, Kamuli and Lugazi.
Southern Africa
South Africa
- South African retailers have arrived at an e-commerce crossroads
South Africa’s e-commerce landscape has arrived at an important juncture. The explosive growth observed during the pandemic years has slowed down somewhat and consumer spending power has faltered amid low economic growth and a global cost of living crisis. At the same time, competition is heating up.
- Realme sets sights on SA market with budget friendly, feature rich phones
Realme, a rapidly expanding Chinese smartphone brand that began life as an Oppo sub-brand for the Indian market, has officially made its debut in the fiercely competitive South African smartphone market. The company snuck into the country midway through 2023 and has sold over 20,000 devices in the budget segment.
- Mastering complex import payments in SA
Advanced Import Payments (AIP) play a vital role in streamlining cross-border operations, which are crucial for enhancing business efficiency. “In South Africa, where recent regulations have re-shaped the landscape, understanding, and leveraging AIP can yield significant advantages for international trade, integrating South Africa further into the global economy,” says Jean-Pierre Millard from the forex dealing desk at Kuda FX, a foreign exchange specialist.
- The fundamental flaw in SA’s renewable power investment
There is an urgent need for South African society to correct a fundamental misconception about solar energy. Without this understanding, the government, corporations, and other investors risk wasting their investments while the threat of load shedding remains a nightly occurrence. The National Energy Regulator (Nersa) is aware of this issue and has sounded the alarm, but it seems the message has yet to sink in.
Zimbabwe
- Zimbabwe’s ZiG Is a Step to Abandoning US Dollars, Vice President Says
Zimbabwe’s new currency is a step toward eventually abandoning the use of US dollars in the economy, Vice President Constantino Chiwenga said. The ZiG was introduced on April 5 to replace the Zimbabwean dollar, after its frequent and rapid depreciation led the greenback last year to become the preferred currency for transacting. The US dollar is used in more than 80% of transactions in the southern African country.
- Zimbabwe’s Gold-Backed ZiG Weakens for First Time Since Debut
Zimbabwe’s gold-backed currency the ZiG weakened for the first time since its debut earlier this month. The currency traded almost 1% weaker at 13.38 per dollar on Thursday compared with a day earlier, central bank data shows, tracking the decline in the gold price. The metal has fallen in the past three days.
- Zimbabwe’s Mnangagwa Names New Mines Minister in Mini-Reshuffle
Zimbabwe’s President Emmerson Mnangagwa has re-appointed Winston Chitando as the southern African nation’s mines minister, a post he held before last year’s elections.
Zambia
- Zambia Debt Audit Shows Government Paid 600% Premium for Laptops
One of the loans the audit scrutinized was used to buy 10,000 laptops for $3,900 each, compared with the $630 they should have cost, according to the report by the Zambian Office of the Auditor General published this week. The government overpaid for laptops and desktop computers by about $96 million, it said.
- Zambian Inflation Hits 26-Month High as Currency Rout Returns
Zambia’s annual inflation rate climbed to a 26-month high and may continue to increase as a record drought in parts of the country and renewed weakness in the currency lifts prices. Consumer prices rose 13.8% in April, compared with 13.7% last month, Statistician-General Mulenga Musepa told reporters in Lusaka, the capital, on Thursday. Prices rose 1% in the month from 1.2% in March.
- Kwacha among worst performers
The World Bank has rated the kwacha among the four worst four performing currencies in the region in 2023, alongside the Nigerian naira, Angolan kwanza, and South Sudanese pound.
- Govt to import 650,000 metric tonnes of Maize after exporting 1.1 million tons
The move by government to start importing maize from neighbouring Country has been questioned after it has been established that the same government exported 1.1 tons of maize last year. According to officcial statistics seen by the Zambian Business Times -ZBT, government exported about 1.1 million tons of maize in the marketing year 2022/23 and have now announced their intentions to start importing 650,000 metric tonnes of Maize from foreign Countries aimed at responding to the effects of the drought.
- IMF Considers Upping Zambia Funds to Help With Drought Emergency
The International Monetary Fund is in talks with Zambia to boost financing for the country that’s suffering the impacts of its worst drought on record, just as it emerges from a painfully slow debt restructuring process.
Angola
- Angola to maintain oil output at 1.1. million bpd through at least 2027
Angola is producing about 1.1. million barrels per day of crude, similar to its level before it exited the Organization of the Petroleum Exporting Countries, and expects to maintain those volumes at least until 2027.
- Angola hikes diesel price by 48% – to R4.60 per litre
Angola’s petroleum products regulator hiked diesel prices by about 48% from Tuesday, part of government efforts to curb costly subsidies that have strained public finances. The price of diesel was increased to 200 kwanzas per litre – the equivalent of R4.60 per litre – starting Tuesday, the regulator said in a statement dated 22 April.
- AD Ports inks 20-year deal for Luanda Multipurpose Port Terminal
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.
- IMF Says Phasing Out Fuel Subsidies Is ‘Fundamental’ for Angola
The International Monetary Fund urged Angola to continue to gradually remove fuel subsidies even after a partial scrapping led to deadly protests last year. “It’s fundamental,” Victor Lledo, the IMF’s resident representative in Angola, said at a conference in Luanda. “They steal crucial fiscal space for other social and public expenses that are so important for the private sector. The big question is how.”.
Central Africa
D.R. Congo
- Congo Plans to Lift Oil Exports to Highest in 15 Months.
Republic of the Congo is scheduled to lift combined exports of Djeno and N’Kossa crude to 278k b/d in June, the highest level since March 2023, according to a program seen by Bloomberg News. Djeno loadings to gain to 215k b/d from 178k b/d in May.
