May 17, 2024/United Capital Research
Anglophone West Africa (WAEMU)
Nigeria
- FG may need supplementary budget to pay minimum wage – IMF.
IMF has recommended that Nigeria may need to raise a supplementary budget to accommodate the proposed minimum wage increase for workers. This is because the negotiated amount may surpass the budgeted amount in the original 2024 budget. It also noted that FG might need to raise the domestic and external borrowing ceilings to prevent fresh borrowings from the CBN’s Ways and Means. While labour leaders demand N615,000 from N30,000 as salaries for lowest ranked workers, there are indications the tripartite committee may recommend N70,000 as the new minimum wage.
- The Federal Executive Council suspends cyber security levy, to undergo “some form of review”.
The Federal Executive Council (FEC) has suspended the Cyber Security Levy imposed on Nigerians by the Office of the National Security Adviser through the Central Bank of Nigeria (CBN).
- Nigeria gets UN approval for new maritime territory ‘5 times the size of Lagos’.
Nigeria has received approval from the United Nations to extend its continental shelf by 16,300 square kilometres, a territory five times the size of Lagos State. President Bola Ahmed Tinubu received the report from the High-Powered Presidential Committee (HPPC) on Nigeria’s Extended Continental Shelf Project on Tuesday. The UN’s approval, based on the United Nations Convention on the Law of the Sea (UNCLOS) 1982, grants Nigeria sovereignty over this additional maritime territory, expanding its jurisdiction beyond the existing 200 nautical miles.
- Nigeria’s inflation rate rises to 33.69% in April 2024
In April 2024, the headline inflation rate rose to 33.69%, up from 33.20% in March 2024, marking an increase of 0.49% points according to the Nigeria Bureau of Statistics (NBS). Comparing y/y data, the inflation rate in April 2024 was 11.47% points higher than in April 2023, where it stood at 22.22%. This indicates that the headline inflation rate has risen significantly over the past year. Additionally, on a month-to-month basis, the inflation rate for April 2024 was 2.29%, which is 0.73% lower than the 3.02% recorded in March 2024. This suggests that the rate at which prices increased in April 2024 was slower than the rate in March 2024.
- Diaspora remittances fall 6.28% to $282.61 million in Q1 2024 amid CBN’s reforms.
Nigeria recorded $282.61mn as total direct foreign exchange (FX) remittances in the first quarter (Q1) of 2024. The figure represents a decrease of $18.96mn or 6.28% compared to the $301.57mn diaspora remittances recorded in Q1 2023. This is according to international payment data from the website of the Central Bank of Nigeria (CBN).
Ghana
- ECG collaborates with GRIDCo to enhance electricity supply in Ashanti Region
The Electricity Company of Ghana (ECG) has forged a partnership with the Ghana Grid Company (GRIDCo) aimed at bolstering the region’s power supply capacity to cater to the escalating demand for electricity. This collaboration, solidified during a recent meeting at GRIDCo’s headquarters in Anwomaso, Ashanti Region, entails the installation of a 145MVA power transformer at strategic points between GRIDCo and ECG Bulk Supply Points.
- Government urged to support local livestock farmers to increase production.
The government has been urged to provide the needed support and encouragement to local livestock farmers to increase production and reduce the import of the animals, especially cattle, into the country. Mr Michael Tungbani, Production Manager of the Kumasi Abattoir, who made the call, said the current shortage of cattle in the country was putting pressure on traders to import the animals from the nearby Burkina Faso, Niger and Mali.
Francophone West Africa (WAEMU)
Senegal
- Senegal April Consumer Prices Rise 2.3% y/y.
Senegal ‘s consumer prices rose 2.3% y/y in April versus +3.3% in March, according to the National Agency of Statistics and Demography. Prices fell 0.4% m/m. Food and non-alcoholic beverage prices +2.8% y/y, -0.9% m/m.
Ivory Coast
- Diamond drilling to begin across Many Peaks’ new Cote d’Ivoire gold projects.
The deal involved the issue of over 5.6 million shares to Turaco Gold (ASX:TCG) and Predictive Discovery (ASX:PDI) for 100% of their Ferké, Oumé and Odienné projects, where Many Peaks Minerals (ASX:MPK) can now earn up to an 85% interest by sole- funding exploration. Formerly part of Resolute Mining (ASX:RSG), the projects cover an area of 1275km2 adjacent to some of West Africa’s biggest gold deposits.
- Ivory Coast Cocoa Grind Down 19.8% Year-On-Year In April.
The cocoa grind in the Ivory Coast was down 19.8% year-on-year in April amid heatwaves impacting growth in the country’s rainy season. According to the exporters’ association GEPEX, the grind was at 41,019 metric tonnes on Friday. The total grind from the start of the 2023/24 season in October stood at 380,031 tonnes of cocoa beans by the end of April. This was down 8.9% from the same point last season.
- Diamond drilling to begin across Many Peaks’ new Cote d’Ivoire gold projects.
The deal involved the issue of over 5.6 million shares to Turaco Gold (ASX:TCG) and Predictive Discovery (ASX:PDI) for 100% of their Ferké, Oumé and Odienné projects, where Many Peaks Minerals (ASX:MPK) can now earn up to an 85% interest by sole- funding exploration. Formerly part of Resolute Mining (ASX:RSG), the projects cover an area of 1275km2 adjacent to some of West Africa’s biggest gold deposits.
East Africa
Kenya
- Kenya’s central bank to hold its next rate-setting meeting on June 5
The Kenyan central bank’s Monetary Policy Committee will hold its rate-setting meeting on June 5, the bank said on Thursday. At its last meeting in April, the bank held its benchmark lending rate at 13.0%, saying that inflation needed more time to continue declining to the desired level.
- Diaspora Remittances Dip Slightly Month on Month, Up 24% from April 2023
Money sent by Kenyans living and working abroad edged lower by 2.6%, to USD 397.3 million in April 2024 from USD 407.8 million remitted in March 2024. The remittance inflows are a 24% uptick from US$ 320.3 million in April 2023. Cumulative inflows increased by 11.9% for the 12 months to April, totalling US $4.457 billion compared to US $3.985 billion in a similar period in 2023. The US remained the largest source of remittances to Kenya, accounting for a decent 49%, down from 54 per cent in February.
- Kenya Eyes Environment Levy, Tax on Green Bonds to Fund Budget
Kenya’s Treasury wants to target infrastructure bond investors, motor vehicle owners and online marketplace operators, among others, with new tax measures to raise revenue and attain the lowest fiscal deficit in at least 15 years.
- Kenya third in Africa’s e-commerce rankings despite local market woes
Kenya has grown to be the third biggest e-commerce market in Africa, driven by the increase in internet penetration that has made it an attractive market for investors. Statista, a German data and business intelligence platform, has ranked Kenya s the third in the continent’s e-commerce market penetration with 46.7 percent. This is behind Egypt, which came top with a 55.4 percent e-commerce penetration and South Africa (49.4 percent).
- Kenya dips into stabilisation fund to prevent rise in pump prices
The State Tuesday tapped into the fuel stabilisation fund for the first time since October last year to stop an increase of pump prices by up to Sh2.27 per litre. The cushion lowered super petrol prices per litre in Nairobi marginally to Sh192.84 from Sh193.84 previously.
- Blacklisted loan accounts jump 97pc on costly credit
More than a quarter of loan accounts in Kenya have been blacklisted by Credit Reference Bureaus (CRBs) in a soft economy where costly credit has pushed thousands of borrowers into a debt trap.
Rwanda
- Congo Demands International Embargo on Rwandan Mineral Exports
Democratic Republic of Congo called for an international embargo of metal exports from neighboring Rwanda, whose government it accuses of using rebel groups to steal its natural resources. All mining products from Rwanda should be considered “blood minerals,” because their sale allegedly supports conflict in eastern Congo, Mines Minister Antoinette N’Samba Kalambayi said.
Tanzania
- Tanzania Annual Inflation Slightly Increased to 3.1% in April 2024
The National Bureau of Statistics of Tanzania (NBS) revealed that the Annual Headline Inflation Rate slightly increased to 3.1% in April 2024, from 3.0% in the previous three months. The overall index went up from 112.54 in April 2023 to 116.06 in April 2024. Such an increase is highly attributed to the increase in the inflation of some non-food items. Non-food items that have recorded an increase in inflation in the year ended April 2024 compared to March 2024 include wood charcoal, household furniture, mattresses, accommodation in hotels, petrol, and kerosene.
- Zanzibar economy to grow by 7.6pc in 2024
Zanzibar economy is projected to grow at an average 7.6 per cent in 2024, higher than last year’s 7.4 per cent, as tourism is rebounding after the Covid-19 global pandemic. The Second Vice-President, Hemed Suleiman Abdulla told the House of Representatives here on Wednesday tourist arrivals in Zanzibar increased by 16.4 per cent to a record 638,498 visitors in 2023 from 548,503 tourists received in the previous year.
- Tanzania mulls single system of taxes, levies collection
The government is preparing a single system for collecting taxes, levies and fees related to businesses as part of the ways to reduce trade barriers and improve local business environment.
- Government spent 153.9bn/- for public servants’ salary increment
The government has spent more than 153.9bn/- in 2023/24 financial year for public servants’ salary increment, Deputy Minister of State in the President’s Office, Public Service and Good Governance, Mr Ridhiwani Kikwete told the National Assembly. He gave the statistic in the august House, when responding to a question by Mr Mrisho Gambo (Arusha Urban-CCM), who wanted to know the government plan on salary increase to public service servants in the country.
Uganda
- Non-performing loans: Banks reduce lending
Bank of Uganda (BoU) has said the heightened growth in non-performing loans has made financial institutions to slow down lending to the private sector. The slowdown, thus, Bank of Uganda says has seen lending to the private sector remain weak, way below levels seen about 10 years ago.
- MTN Uganda’s Q1 net profit jumps to Shs150.0 billion
MTN Uganda net profit for the first three months to March rose 24% to Shs150bn driven by solid growth in its voice, data and fintech business segments. The company’s total revenue grew 19.5% to Shs 750.5bn compared to a year ago as profit after tax increased by 24.4% to 150bn. Service revenue grew by 19.4% to to Shs741.4 bn, underpinned by strong double-digit growth in voice (up 15.5%), data (22.4%) and fintech (23.5%) revenues.
- Uganda in talks with China’s Sinohydro over power line to South Sudan
Uganda is in talks with Chinese firm Sinohydro Corporation Limited for the development of a $180 million power transmission line to allow Uganda to export power to energy-starved South Sudan, the president’s office said. As part of the talks, a delegation led by Yang Yi Xin, Sinohydro Corporation’s vice president, met Uganda’s President Yoweri Museveni on Monday, a statement from Museveni’s office said.
- Uganda’s April Coffee Exports Up 5% Y/y on New Harvest: UCDA
The nation shipped 390,977 bags last month vs 372,912 bags a year earlier following deliveries of beans from the new harvest in the Masaka and southwestern robusta-producing regions, the Uganda Coffee Development Authority says in a report on its website. Authority projects exports this month at 450,000 bags on an ongoing new harvest
Southern Africa
South Africa
- SA unemployment rate increases
The Quarterly Labour Force Survey (QLFS) by Statistics South Africa (Stats SA) indicates that the number of unemployed persons increased by 330,000 to 8.2mn during the first quarter of 2024. According to Stats SA, the official unemployment rate stands at 32.9%, an increase of 0.8% in the first quarter of 2024 (Q1: 2024) compared to the fourth quarter of 2023 (Q4: 2023). The results of the QLFS also indicate that the number of employed persons increased by 22,000 to 16.7mn in the first quarter of 2024 compared to the fourth quarter of 2023.
- South Africa’s president signs major health bill just before election
South Africa’s President Cyril Ramaphosa signed into law on Wednesday a bill that aims to provide universal health coverage, hailing it as a major step towards a more just society two weeks before an election that is expected to be fiercely competitive. The National Health Insurance (NHI) Act takes aim at a two-tier health system, in which a publicly funded sector that serves 84% of the population is overburdened and run-down while some people have access to better treatment through private insurance.
- South African retail sales rise 2.3% year on year in March.
South African retail sales rose 2.3% y/y in March after decreasing by a revised 0.7% in February, Statistics South Africa figures showed on Wednesday. On a m/m basis, sales increased 1.4% in March.
- South African rand firms to five-month high on Fed rate cut bets.
The South African rand strengthened to a five-month high on Thursday, as risk sentiment improved on growing bets the Federal Reserve may cut interest rates in September. Data on Wednesday showed U.S. core inflation eased to its slowest pace in three years last month, pulling forward expectations for rate cuts in the world’s biggest economy.
Zimbabwe
- Zimbabwe to extend ZiG currency crackdown to companies, finance chief says.
Zimbabwe plans to extend a crackdown that’s targeting street currency traders to companies to ensure goods and services are priced using only the official exchange rate of the new ZiG currency. The announcement is the latest attempt to ensure the ZiG gains traction and doesn’t get sidelined in favor of the US dollar, as has been the case in six previous attempts to create a functioning national currency over the past 15 years. Dollars are used for over 80% of transactions in the economy.
Central Africa
Cameroon
- Chocolate-makers squeezed by high cocoa prices.
For several weeks now, he has been trying to find suitable treatments for the pod diseases that are weakening his crops. He is one of a number of local producers who sell their crop in Nigeria rather than on the local market, but says competition between local and Nigerian buyers has forced the price up.
Gabon
- BW Energy enters $150m sale and leaseback deal for Gabon platform.
Oslo-listed BW Energy has executed a sale and leaseback agreement with China’s Minsheng Financial Leasing for the MaBoMo production facility on the Dussafu Licence offshore Gabon. The agreement will provide $150m of gross sales proceeds under a ten-year lease term with an option to repurchase the unit from the end of year seven.
According to the company, the transaction frees up $110m of net liquidity to BW Energy, in line with the working interest in the licence. The proceeds will be used to finance the execution of the company’s growth strategy including the continuing development projects in Gabon.
- Gabon Hires Citigroup for Investor Meetings as Bond Losses Mount.
Gabon is meeting with fixed-income investors this week as a rout fueled by fiscal and political risks rocks the central African nation’s bond market. The junta-led country is holding meetings in New York Thursday to provide a credit update, with Citigroup Inc. coordinating logistics, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.
