June 14, 2024/United Capital
Anglophone West Africa (WAEMU)
Nigeria
- Currency in circulation hits N3.97tn in May
Currency in circulation has risen to N3.97tn in May, representing an all-time high and a 1.07% increase over the previous month. Currency in circulation has been rising consistently over the months from N3.86tn in March to N3.92tn in April.
- FG services debt with $2.2bn in five months – CBN
Nigeria’s debt servicing gulped circa N2.2bn in the first five months of 2024. The government spent $221.05m on debt servicing in May, $215.20m in April, $276.16m in March, $283.22m in February and $560.52m in January.
- Nigeria’s money supply rebounds to historic N96.97 trillion in April 2024, defying MPC’s tightening measures
Money supply (M3) surged to a new peak of N96.97tn in April 2024, reflecting a significant recovery from the previous decline recorded in March. This indicates a m/m increase of 5.0% from N92.34tn in the previous month.
- Dangote refinery shifts petrol supply to July
The Dangote refinery has said its plan to release premium motor spirit into the market this month will no longer be possible, The President of Dangote Group, Aliko Dangote, has said that petrol from the refinery would be out in the third week of July (10th – 15th).
- FAAC: Shared revenue drops by 5.38% to N1.143 trillion for May 2024
The Federation Accounts Allocation Committee (FAAC) has announced the disbursement of N1.143 trillion as the total revenue for May 2024. There was a 5.38% decline from the previous month’s distributable revenue as N1.208tn was shared as April 2024 revenue. The total revenue in May 2024 was 325tn, which is a slight increase of 6.07% from N2.192tn made in the previous month. Approximately 49% of revenue made in May was shared among the three tiers of government by June 2024.
Ghana
- Ghana consumer inflation slows to 23.1% y/y in May
Ghana’s consumer inflation slowed to 23.1% year on year in May from 25% in April, the statistics service said on Wednesday. The cocoa-, gold- and oil-producing West African country is battling to emerge from an economic crisis. It is restructuring its debts, supported by a $3 billion loan programme from the International Monetary Fund.
- Ghana delays cocoa shipments, impacting global chocolate industry
Ghana, the world’s second-largest cocoa producer, is planning to postpone the delivery of up to 350,000 tons of cocoa beans to the next season due to poor crop yields. This decision adds to the growing challenges facing the global chocolate industry. This is according to five sources who spoke to Reuters.
Francophone West Africa (WAEMU)
Mali
- IMF, Mali reach staff deal on $120 mln emergency financing
The International Monetary Fund (IMF) said on Tuesday it had reached a staff-level agreement with Mali for about $120 million in emergency financing, as the West African country is struggling with rising food insecurity. Import costs for essential goods such as food and fertilizers in Mali have risen due to a regional funding squeeze and recent geopolitical shocks, the IMF said in a statement.
Senegal
- Senegal’s youngest president, Bassirou Diomaye Faye, sworn in
Senegal has inaugurated Bassirou Diomaye Faye as its president, completing the previously little-known opposition figure’s dramatic ascent from prison to the palace in just weeks. The left-wing pan-Africanist was sworn in on Tuesday after sweeping to a first-round victory in the March 24 elections on a pledge of reform. At age 44, he is Senegal’s youngest president.
East Africa
Kenya
- Kenya Power gets Sh28 billion for grid upgrade.
The Treasury has proposed to give Kenya Power Sh27.8billion to upgrade the transmission network as the government steps in to help the utility firm improve its shaky electricity supply.
- IMF Reaches Staff-Level Agreement With Kenya On Seventh Reviews of the Extended Fund Facility and Extended Credit Facility Arrangements and the Second Review Under the Resilience and Sustainability Facility.
An International Monetary Fund (IMF) team, led by Ms. Haimanot Teferra, held discussions with the Kenyan authorities in Nairobi during April 2-12 and May 9-15, 2024. The mission continued virtually to finalize key technical aspects of the agreement, including recalibrating access to IMF resources to align more closely with Kenya’s current needs following its access to the international bond markets earlier this year.
- Kenya budget to tackle debt, protect economy: Finance Minister.
Kenya’s 2024/25 budget aims to tackle the country’s debt while protecting its fragile economic recovery, with growth estimated at 5.5% in 2024 and 2025, Finance Minister Njuguna Ndung’u said on Thursday. Presenting the budget in parliament, Ndung’u said the fiscal deficit was expected to be 3.3% of gross domestic product (GDP), compared with a revised deficit of 5.7% for 2023/24.
- China dominates list of lenders to Kenya by country.
Kenya owes China Sh920.52 billion in loans making it the leading lender by country rankings, even as President William Ruto looks west for more financing and trade cooperation. Official data shows the Asian giant is still a major lender to Kenya mainly for the development of roads rails and port infrastructure.
Uganda
- Uganda’s Economy to Grow by 6% – Kasaija.
The Minister for Finance, Matia Kasaija has said Uganda’s economy is projected to grow at 6 percent in the financial year 2024/ 2025. “Next financial year, the economy is projected to get back to Uganda’s steady-state growth potential of between 6.4 and 7 percent, and double digit over the next five years,” Kasaija said on Thursday during the budget reading. The minister told parliament that in the next financial year, the country’s GDP will further expand to Shs 225.5 trillion ($60 billion).
- EU, World Bank impressed with Uganda’s economic performance.
The European Union (EU) and World Bank (WB) have expressed their satisfaction with the positive results registered over the past financial year Uganda registered an impressive six percent growth.
Tanzania
- Government Records Impressive 2023/24 Budget Execution.
Minister for Finance, Dr Mwigulu Nchemba said on Thursday the government has recorded an impressive budget implementation in the ending 2023/2024 financial year by executing various strategic projects while guaranteeing provision of significant social services to citizens. Tabling the 2024/2025 general budget, Dr Nchemba said the government managed to collect a total of 35.25 tri/- equivalent to 79.4 per cent of the annual target.
- Tanzania’s budget leans on loans and grants for 30 percent of funds.
Tanzania will rely on loans and grants to finance 30% its 2024/25 financial year budget, according to the budget document tabled in parliament on Thursday, 13 June 2024. The document tabled by Finance minister Mwigulu Nchemba shows that Tanzania expects to spend Sh49.35trillion in the 2024/25 fiscal year.
- Govt Proposes Measures to Upgrade Road Projects With Domestic Funds.
The government on Thursday suggested measures that could mobilise more domestic funds for roads’ constructions, repairs and maintenance. Tabling the 2024/25 national budget in the National Assembly in Dodoma on Thursday, Finance Minister Dr Mwigulu Nchemba proposed amendment to the Road and Fuels Tolls Act CAP 220, to charge 382/- per kilogramme of Compressed Natural Gas (CNG) used in motor vehicles.
South Africa
South Africa
- South African Parties Agree to Reelect Ramaphosa as President
South African political parties that support a broad alliance to form the next government agreed to back the reelection of Cyril Ramaphosa as president. “We have agreed to cooperate on the president and the national and provincial legislatures,” Fikile Mbalula, the secretary-general of the African National Congress, said in interview in Cape Town Friday. A framework for a new government of national unity is still being worked out, and “the situation is still very fluid,” he said.
- South Africa ANC Confirms Premier Candidates for Seven Provinces
South Africa’s African National Congress confirmed premier candidates in seven of the country’s nine provinces where it got either outright control or the most votes in the May 29 elections, according to a statement.
- Traders See South Africa Cutting Rates Sooner on New Government
Traders brought forward bets for South Africa’s first interest-rate cut in four years to September, as the nation’s biggest political rivals edge closer to forming a government favored by investors after last month’s election failed to produce an outright winner.
Namibia
- FAO Pledges US$10 million For SADC to Support 13 Million People Affected by Drought and Floods
The SADC region faces a humanitarian crisis because of the ongoing El Niño induced drought and floods that are negatively impacting the lives and livelihoods of millions of people in the region. According to the SADC El Nino Appeal, an estimated 60 million people in Southern Africa are food insecure.
- Qatar Comes to Namibia’s Assistance – Us$71 Million Worth of Drought Relief Food Aid Arrives
The State of Qatar has stepped forward to bolster Namibia’s efforts to address the pressing challenges posed by drought, extending a generous donation towards food relief initiatives. The initial shipment, comprising 60 pallets equivalent to 720 food aid packages valued at US$71 million (approximately N$1.307 billion), arrived in Windhoek on Friday.
Zambia
- Zambian Inflation shoots soars to 15%
Zambia is currently facing a major economic crisis as inflation continue to soar, causing financial strain on families and businesses. According to the latest statistics obtained by the Zambian Business Times, Annual inflation for May 2024 increased to about 15% (14.7 percent) from 13.8 percent recorded in April 2024. This means that on average, prices of goods and services increased by 14.7 percent between May 2023 and May 2024. This development was mainly attributed to price movements of both food and non- food items.
- MPR hike threatens renewable energy transition in Zambia – Warns Expert
The recent increase in Zambia’s Monetary Policy Rate (MPR) to 13.5 percent has raised concerns about the country’s ability to transition to renewable energy as the energy expert Christopher Mapulanga has warned that the high cost of borrowing to fund investments may lead to significant delays in the adoption of renewable energy sources.
- Prioritize strategies to reduce food Inflation & boost energy Sector to aid in economic recovery – Expert
Evelyn Hone College lecturer in the School of Business and Media Mwiya Ikabongo has called on the Zambian government to prioritize strategies to reduce food inflation and boost the energy sector to aid in economic recovery. Speaking in an exclusive interview with the Zambian Business Times (ZBT), Ikabongo emphasized the need to actualize the projected target of 6 and 8 percent inflation instead of the current rate of 13.8, which is twice the target.
Zimbabwe
- Tight monetary stance hinders capital markets activity: FBC Securities
The decision by the Reserve Bank of Zimbabwe (RBZ) to maintain a tight monetary stance is restricting the amount of local currency available and therefore strangling capital markets activity, FBC Securities has said.
Central Africa
Cameroon
- CDC’s Banana Exports in Early 2024 Fall to One-Third of Pre-Crisis Levels
Despite a gradual increase in production since February 2024, the CDC’s export volumes reflect the lingering effects of socio-political tensions. Between 2019 and 2021, the company incurred cumulative losses of CFA38.7 billion. As of June 30, 2023, salary arrears stood at CFA35.7 billion. CDC has so far been the company most affected by the separatist crisis.
- Ngaoundéré Tops Cameroon’s Year-on-Year Inflation Surge in April 2024
The INS report highlights regional inflation rates ranging from 5.7% to 7.4%, except in Bamenda where it stood at 4.4%. Notably, Ngaoundéré recorded the highest inflation rate at 8%, surpassing the national average of 6.3%.
- Cameroon cancels another local road contract less than a year after award
Cameroon’s Minister of Public Works, Emmanuel Nganou Djoumessi, has terminated the contract awarded to the Cameroonian consortium Precocam/ETS Sentinelle for the paving of the 24-km Pont de la Mape-Carrefour Mwoumban Road. The decision, signed on June 3 and made public on June 10, 2024, cited the consortium’s failure to make adequate progress in the construction, which is part of the larger Banyo-Mayo Darle-Nyamboya Road project (147 km) on National Road 6 in the Adamaoua region.
- Nachtigal Hydro Plant Begins Supplying 60 MW to Cameroon Grid
The Nachtigal Hydro Power Company (NHPC) has officially commenced continuous production of its first 60 megawatts (MW) from the Nachtigal hydroelectric dam on the Sanaga River in Cameroon’s Central Region. Frederic Labrosse, NHPC’s operations team leader, announced on LinkedIn that the group is now operational and supplying electricity to Cameroon’s grid after a month of successful testing.
- Eneo Signs Deal to Double Solar Power Capacity in Maroua and Guider
Cameroon’s power utility Eneo has inked a deal with Release, a subsidiary of Norwegian firm Scatec, on June 5, 2024, to expand the photovoltaic solar plants in Maroua, in the Extreme North region, and Guider, in the North.
- Gulfin Targets Cameroon’s Public Sector with New Fuel Voucher Service
Oil product distributor Gulfin, a subsidiary of Gulfcam SAS, officially launched its fuel voucher service in Douala, Cameroon’s economic capital. This service, announced on June 11, 2024, aims to help customers manage their fuel expenses more efficiently, according to company executives.
- Cameroon and France Sign Agreement for Second Phase of Regional Capitals Program
Cameroon and France signed a convention on Wednesday for the second phase of the “C2D Regional Capitals 1” (CR1) program in Yaoundé. This phase will receive funding of €20 million (CFA 13 billion) and aims to enhance urban infrastructure and improve living conditions in the cities of Bafoussam (West), Bertoua (East), and Garoua (North).
