August 16, 2024/United Capital Research
Anglophone West Africa (WAEMU)
Nigeria
- Nigeria’s crude oil production now 1.3mbpd – OPEC
Nigeria’s average daily crude oil production increased marginally from 1.27mbpd in June to 1.30mbpd in July. This indicates an addition of 30 barrels of crude oil per day in July.
- Revenue-generating agencies fail to remit N4.1tn – FAAC
The monies unremitted by Revenue Generating Agencies to the coffers of the Federal Government increased to N4.1tn as of June 2024, according to the Federation Accounts Allocations Committee (FAAC). FAAC stated that this was despite the agencies’ reconciliation and payment of outstanding debts of N94.96bn in May 2024.
- 36 states got N39.6bn as ecological funds – FG
Nigeria’s 36 states received N39.62bn as ecological fund allocations from June 2023 to June 2024. Kano State received the highest allocation, totalling N2.1bn, averaging N175mn per month. Borno State, which is dealing with environmental damage linked to the insurgency, received N1.68bn (averaging N140mn per month), the second-highest allocation.
- Nigeria’s fiscal deficit drops 29% to N2.82trn
Nigeria’s budget deficit has reduced by 29.0% to N2.83tn in the first quarter of 2024 from N3.96tn in the same period of 2023. A breakdown of CBN’s quarterly statistical bulletin reveals that the country’s revenue in the first quarter of 2024 amounted to N1.76tn while its expenditure stood at N1.53tn during the period. Revenue increased to N1.76tn in the first quarter of 2024 from N1.32tn in the same period of 2024.
- FG to lose N188bn on food import waiver – Customs
The Federal Government may forfeit N188.37bn worth of revenue due to the duty waiver granted for staple foods importation in six months. The Nigerian Customs Service also announced that the country spent N3.82tn on the importation of wheat, beans, rice, and maize between 2020 and 2023.
- Economic activities contracted to 49.7pts in July – CBN
Economic activities in Nigeria fell for the thirteenth month in July as high costs reduced new orders and employment declined, according to the Central Bank’s Purchasing Managers’ Index. In July 2024, the composite PMI stood at 49.7 points, a slight improvement when compared with the 48.8 points recorded in June 2024, indicating a 1.8-point increase.
Ghana
- Ghana’s inflation slows for fourth month in July
Ghana’s consumer inflation slowed for a fourth consecutive month in July, to 20.9% y/y, opens new tab from 22.8% in June, the statistics service said on Wednesday. Government statistician Samuel Kobina Annim told a news conference that the latest decline was the result of a fall in both food and non-food inflation. The cocoa-, gold- and oil-producing West African country is battling to emerge from an economic crisis.
- Govt faces funding challenge — Treasury bill auctions underperform
The government is faced with difficulties raising funds on the domestic market, as it misses its treasury bill target for the fifth consecutive week, sparking concerns over waning local investor confidence in the economy, or the tender held on July 12, the government missed its target of GH¢4.72 billion by raising GH¢4.4 billion. For the auction held on July 19, the government again missed its target of GH¢5.3 billion by raising GH¢3.87 billion.
Francophone West Africa (WAEMU)
Senegal
- Revision of Growth Prospects in Senegal: The IMF Lowers its Forecast for 2024 to 7.1%
The International Monetary Fund (IMF) has recently adjusted its economic growth forecast for Senegal in 2024, reducing the projected rate to 7.1% from an initial 8.3%. This revision is a response to a series of economic and political challenges that the country is currently navigating.
Mali
- West Africa Trade Will Take A Hit As Mali, Niger And Burkina Faso Leave Ecowas
The membership of the Economic Community of West African States (Ecowas) has been whittled down from 15 to 12 following the unilateral withdrawal of Niger, Mali and Burkina Faso in February. Withdrawing from Ecowas is likely to have major consequences on the regional economy.
East Africa
Kenya
- Kenya’s Development Bond Sale Will Be Key Market Confidence Test
Kenya is set to test investors’ appetite for its debt Wednesday with an auction of infrastructure bonds, its first since a wave of anti-government protests led authorities to scrap a crucial tax-raising plan. The auction of 50 billion shillings ($387 million) worth of securities maturing May 2030 and February 2040 will be closely watched, as it comes shortly after credit rating downgrades from Moody’s Investors Service and Fitch Ratings. Both agencies cut Kenya’s credit score deeper into junk in response to authorities’ decision to abandon the revenue plan after protests killed scores of people across the country.
- KDC rolls out Sh2bn small and medium trade fund
Kenya Development Corporation (KDC) has launched a Sh2 billion credit support for support Small and Medium Enterprises (SMEs) through India’s Export-Import Bank. It is designed to empower Kenyan businesses through favourable financial terms for acquiring technology, machinery, and equipment from India. This is aimed at accelerating Kenya’s industrial modernisation, enhancing competitiveness, and creating sustainable economic growth.
- Kenya’s new food tax risks trade spat with Tanzania
A new food import levy impose by Kenya’s crops regulator risks triggering a fresh standoff between Kenya and Tanzania amid protests by traders. The 2.0 percent levy on the customs value of cereals and legumes entering Kenya – introduced by the Agriculture and Food Authority (AFA) this week – will see traders pay an extra Sh20,000 per truckload of maize and Sh50,000 fro rice.
- Kenya Targets Global Manufacturers as Trade Deal With US Nears
US-Kenya trade deal is set to be ready by October, the Ministry of Investment, Trade, and Industry (MITI) has confirmed while calling on investors in the manufacturing space to take advantage of the deal to set up shop in the country. In October last year, President William Ruto and his US counterpart, Joe Biden agreed to expedite the Strategic Trade and Investment Partnership agreement. The agreement will increase trade and investment between the countries, boost manufacturing and create jobs.
- Co-op Bank half-year net profit rises to Sh13bn on higher income
Co-operative Bank of Kenya has posted a seven percent growth in net profit to Sh12.99 billion in the half year ended June 2024 on increased interest and non-interest income. The lender’s net earnings grew from Sh12.14 billion posted in a similar period last year. This was on the back of net interest income growing by 10.7 percent to Sh23.9 billion and non-interest income rising by 11.2 percent to hit Sh15.4 billion. The strong performance by the bank is in line with the group’s strategic focus on sustainable growth, resilence, and agility delivering a return of equity of 22.1 percent.
Rwanda
- Rwanda Inflation Rate at 5-Month High of 1.5%
The annual inflation rate in Rwanda accelerated to 1.5% in July 2024 from 1.3% in the prior month. It was the highest inflation rate since February due to faster rises in prices of housing (3.7% vs 1.9% in June), clothing (5.9% vs 5.7%), furnishings household equipment (4.1% vs 3.9%), and miscellaneous goods & services (3.8% vs 3.7%). Prices continued to increase for transportation (21.8% vs 22.9%) and restaurants & hotels (3.9% vs 4.0%). Simultaneously, prices of food & non-alcoholic beverages fell softer (-3.7% vs -3.9% in June). On a monthly basis, consumer prices rose by 0.5% in July, after falling by 0.6% in June.
- Rwanda overtakes Tanzania, Kenya in cheap broadband internet race
Rwanda now offers the cheapest broadband internet in the East Africa Community bloc, leapfrogging Kenya and Tanzania, a new report shows. New data published by British technology research firm Cable shows that netizens in the Paul Kagame-led country are paying a monthly average of $43.22 (Sh5,603) for fixed broadband connection this year down from the $60.96 (Sh7,904) that was charged last year, marking a 29.1 percent decline.
Tanzania
- Tanzania’s Annual Inflation Down to 3.0% in July 2024
The National Bureau of Statistics of Tanzania (NBS) revealed that the annual headline inflation rate slowed down to 3.0% in July 2024 from 3.1% in June 2024. The overall index went up from 112.67 recorded in July 2023 to 116.04 recorded in July 2024. The Food and Non-Alcoholic Beverages Inflation Rate for July 2024 has slightly increased to 1.0% from 0.9% in June 2024. On the other hand, the Annual Inflation Rate for all items without food and non-alcoholic beverages for July 2024 has decreased to 3.8% from 4.0% in June 2024.
- Tanzania gets first Shariah-compliant investment scheme
Tanzania’s capital markets welcomed a new addition with the launch of the Alpha Halal Fund, a Shariah-compliant collective investment scheme introduced by Alpha Capital-Tanzania, a brokerage firm and fund manager. The fund aims to provide investors with ethical investment opportunities that strictly adhere to Islamic laws.
- TRA Surpasses revenue targets, collects 2.34tri/- in July
The Tanzania Revenue Authority (TRA) exceeded its revenue collection target of 2.25tri/- by collecting 2.34tri/- in the month of July 2024/2025 financial year – a performance rate of 104.4 per cent. The performance in collections and the growth of collections rate for the month of July is stated to be the highest achieved by the TRA in the past six years. According to the TRA report, the collections represent a 20.9 per cent increase compared to the 1.94 tri/- collected in July for 2023/24 financial year.
- Tanzanian Banking Sector Shows Robust Growth in H1 2024, Credit Growth Slows, NPLs Remain a Concern
Data on Tanzania’s banking sector for the first half (H1) of 2024 reveals a complex landscape of rapid profitability growth, asset expansion, and intriguing trends in lending, efficiency, and cost management. According to an analysis compiled by AML Finance, the banking sector’s profitability surged by a staggering 48.1% in H1 2024, even as the broader economy grew at a more modest pace of 5.0%. This disconnect raises critical questions about the relationship between banking sector performance and the overall economic health of the country.
Uganda
- Afreximbank and Uganda Development Bank sign project preparation financing agreement
African Export-Import Bank (Afreximbank)and the Uganda Development Bank (UDB) have signed a Joint Project Preparation Facility Framework Agreement to provide early project preparatory financing and technical support services to public and private sector entities. This is aimed at boosting Uganda’s industrialization and export development activities.
- Uganda Mulls Listing Power Companies as Umeme’s Concession Nears End
Uganda is considering listing power companies to enable them access more capital, seeking to emulate the success of listed Kenyan power generation company KENGEN. According to Minister for Energy and Mineral Development Ruth Nankabirwa, listing would help the companies access sustainable financing for their capital intensive projects. Uganda has more than 40 power generators, a single transmission company called the Uganda Electricity Transmission Company (UETCL), and nine distributors. Umeme Ltd, the main distributor in the country, is currently listed on the Uganda Securities Exchange and cross listed on the Nairobi Securities Exchange (NSE).
Southern Africa
South Africa
- South Africa’s unemployment rate climbs for third quarter in a row
South Africa’s official unemployment rate rose for the third quarter in a row, reaching 33.5% in April-June of this year, data from the statistics agency showed on Tuesday. Unemployment is now at its highest since the government repealed COVID-19 rules in the second quarter of 2022, though it remains below the record high of 35.3% struck in the final three months of 2021. Lowering the country’s unemployment rate – one of the highest in the world – is a priority for the coalition government that emerged after the African National Congress lost its majority in an election in May.
- South African retail sales rise 4.1% year on year in June
South African retail sales rose 4.1% year on year in June after rising by a revised 1.1% in May, Statistics South Africa figures showed. Sales rose 1.6% month on month in June.
- South African business confidence starts to recover after election
South African business confidence started to recover in June and July after falling sharply in the lead-up to May’s election, as expectations of an improvement in the business climate grew following the formation of coalition government. Data from the South African Chamber of Commerce and Industry (SACCI) showed on Wednesday that its Business Confidence Index rose to 109.1 in July, up from 109.0 in June and 107.8 in May.
- South Africa’s mining production decreased by 3.5% y/y in June
South Africa’s mining production decreased by 3.5% year-on-year in June, with gold, platinum group metals (PGMs), coal and “other” metallic minerals having made the biggest negative contributions. Gold production was down 12.6% year-on-year in June, while PGM output decreased by 5.8% year-on-year, coal by 3.3% year-on-year and “other” metallic minerals by 21.3% year-on-year.
- Decline in manufacturing production softens in June
Manufacturing production decreased 0.5% month on month in seasonally adjusted terms in June (May: -3.6% mom). On an annual basis, manufacturing output plunged 5.2% in June, which was well greater than May’s 1.2% fall. Accordingly, annual average manufacturing production growth fell to 0.3% in June (May: +1.2%). This signals a worsening trend in the manufacturing sector. Looking at the details of the release, wood and wood products, paper, publishing and printing output fell at a more moderate pace.
Angola
- Inflation rises again in July and stands at 31.09 percent
The country’s inflation rate rose to 31.09 percent in July, 18.97 points more than in the same period in 2023, but slowed down in monthly terms, for the third consecutive time, according to data from the National Statistics Institute (INE). The Consumer Price Index recorded an increase of 19.97 percentage points compared to the prices observed in the same period of the previous year (July 2023). The “Food and non-alcoholic beverages” class contributed the most of the increase in the level, with an increase of 1.12 percentage points during the month.
- Angola Secures $1.5B Loan FOR 65 Solar Mini-Grids
The Export-Import Bank (EXIM) – the official export credit agency of the United States – is providing a $1.6 billion direct loan to support the development of 65 solar mini- grids in Angola.
- Standard Bank plans to increase stakes in Nigeria and Angola businesses
Standard Bank, Africa’s biggest lender by assets, is looking to increase stakes it holds in businesses in Angola and Nigeria, its CEO said on Thursday.
- UKEF puts €22 million loan behind Angolan clean water project
UK Export Finance (UKEF) has announced a €22 million direct loan to support the construction of a rural water supply project in the Quiminha region of Angola that will be delivered by British firms.
Namibia
- Namibia central bank cuts main rate as inflation slows
Namibia’s central bank cut its main interest rate by 25 basis points on Wednesday, citing a slowdown in inflation and inflation expectations. The Bank of Namibia reduced its repo rate to 7.50% from 7.75%, where the rate had been since June 2023. Namibia’s inflation was at 4.6% year on year in July, the same level as in June but down from 4.9% in May. The central bank revised down its average inflation forecast for this year to 4.7%, versus a 4.9% forecast given at its last Monetary Policy Committee meeting in June.
Zambia
- Zambia central bank holds key rate, citing impact of drought
Zambia’s central bank held its benchmark lending rate at 13.50% in a decision announced on Wednesday, citing the economic impact of a severe drought among other factors. The central bank’s decision follows six successive monetary policy meetings at which the policy rate was raised. So far this year it implemented a 100-basis-point (bps) hike in May and a 150 bps increase in February. Inflation has been rising in Zambia since the middle of last year, reaching 15.4% year on year in July this year, fuelled by a slide in the local kwacha currency and the worst drought in the Southern Africa region in decades.
Zimbabwe
- Zimbabwe faces worsening food crisis due to El Niño droughts
New report from the UN aid coordination office (OCHA) reveals that food insecurity levels in Zimbabwe are rapidly deteriorating after it was hit with historic droughts due to the El Niño weather pattern. This comes just two months after UN humanitarians declared Zimbabwe as one of the hunger hotspots where acute food insecurity was likely to deteriorate. The storm destroyed more than half of the country’s harvest, leaving about 7.6 million people at risk of acute hunger.
Central Africa
Cameroon
- Access Bank Cameroon Hosts Trade Forum to Enhance Growth within AfCFTA Framework
Access Bank recently hosted its 2nd trade forum, providing customers with a comprehensive refresher on exchange regulations and a unique opportunity to engage with the bank’s local and international teams. This seminar underscored Access Bank’s commitment to strengthening the customer ecosystem by focusing on trade, while also delving into digital services, treasury optimization and value chain management.
- Access Bank Cameroon wins Fastest-Growing Bank and Best Services Provider Award
In a remarkable achievement that underscores its commitment to excellence and innovation, Access Bank Cameroon has been honored with the prestigious Fastest-Growing Bank and Best Services Provider award for the year 2023. The accolade was presented by the Cameroon English Language Newspaper Publishers Association during a grand ceremony held at the Hilton Hotel in Yaoundé.
- CEMAC: Long-Term Credit Jumps 25.4%, Boosting 2023 Bank Lending
Bank financing in the CEMAC region saw a 7.9% increase in 2023, reaching CFA10,592.4 billion by December 31, 2023, according to the 2023 activity report from the Bank of Central African States (BEAC). The report attributes this growth to a significant rise in long-term bank credit, which jumped by 25.4% after a modest 3.8% increase in 2022, alongside gains in medium-term credit, which grew by 2.5% (down from 9.5% a year earlier), and short-term credit, which increased by 11.2% (up from 4.7%).
- Cameroon Launches 2024-2025 Cocoa Season as Bean Prices Hit Record Highs
The launching ceremony of the 2024-2025 cocoa season in Cameroon took place on August 8 in Mvengué, a town in the South region’s Ocean Department. This occurred as the cocoa sector was enjoying an exceptionally favorable economic climate, with cocoa bean prices soaring to unprecedented levels.
- Cameroon Launches 9th Phase of Tariff Cuts Under EU, UK Deals; Revenue Up Despite Losses
Cameroon has officially implemented the ninth phase of tariff dismantling under the Economic Partnership Agreement (EPA) with the European Union (EU) and the United Kingdom, effective August 4, 2024. According to a statement issued by Finance Minister Louis Paul Motazé on August 5, this phase grants full exemptions on customs tariffs for “100% of goods in the first group, 100% of goods in the second group, and 50% of goods in the third group” imported from the EU and the UK.
- Cameroon: Less Than 10% of Cocoa Beans Meet Premium Standards in 2023-2024
During the launch of the 2024-2025 cocoa season in Mvengue on August 8, the National Cocoa and Coffee Board (ONCC) reported that Cameroon exported 185,613 tons of cocoa beans during the previous season.
