September 20, 2024/United Capital Research
Anglophone West Africa (WAEMU)
Nigeria
- Inflation dropped to 32.15% in August 2024
Nigeria’s headline inflation rate dropped to 32.15% for the month of August 2024, This represents a 1.25% decrease from the 33.4% recorded in July 2024 and the second consecutive monthly slowdown in inflation after easing in the previous month. On a y/y basis, the August 2024 inflation rate was 6.35% higher than the 25.80% rate recorded in August 2023. Food inflation rate in August 2024 was 37.52% on a y/y basis, which was 8.18% points higher compared to the rate recorded in August 2023 (29.34%).
- CBN maintains 5% ways and means advances to govt
The CBN has confirmed that it will sustain its Ways and Means Advances to the Federal Government at a 5.0% limit for the fiscal years 2024-2025.
- FAAC: FG, States, LGCs share N1.203 trillion August 2024 revenue, down by 11.4% from July
The Federal Government, States, and Local Government Councils (LGCs) shared a total of N1.203tn for revenue generated in August 2024 and distributed in September 2024. This represents a decrease of 11.4% compared to the N1.358tn shared from July 2024 revenue, distributed in August. In the month of August 2024, a total revenue of N2.278tn was available, however, deductions were made to account for collection costs and other obligations. A total of N81.975bn was deducted for the cost of collection, while N992.617bn was set aside for transfers, interventions, and refunds.
- Production of new low-sulphur crude hits 996,070 barrels
The daily average production of Utapate, Nigeria’s new low-sulphur crude oil grade, has risen to 32,000 barrels per day as a total of 996,070 barrels of Utapate was produced in August, up from the 754,222 barrels produced in July.
- World Bank to grant Nigeria $1.7bn loan
The Federal Government is set to receive a fresh loan from the World Bank, with approval expected for loans worth $1.7bn. The loan is expected to be approved on September 26, 2024.
Ghana
- Ghana’s economy grew 6.9% in second quarter of 2024
Ghana’s economy grew 6.9% year-on-year in the second quarter of 2024, the country’s statistics agency said on Wednesday. Ghana’s government statistician Samuel Kobina Annim, said that it was the highest growth rate recorded in several quarters, fuelled by a boost in activities the services and industry sectors. The gold-, oil- and cocoa-producer is emerging from its worst economic crisis in a generation brought on by spiralling public debt.
- Ghana secures Tier 1 status in 2024 Global Cybersecurity Index
Ghana has achieved Tier 1 status in the 2024 Global Cybersecurity Index (GCI) by the International Telecommunication Union (ITU), solidifying its position as a leader in cybersecurity globally. Tier 1, the highest rank, recognizes nations that serve as role models in cybersecurity practices. According to the Cyber Security Authority (CSA), Ghana’s advanced cybersecurity framework, scoring 99.27%, highlights its leadership in Africa, second only to Mauritius.
- 160,000 tons of cocoa lost to smuggling in 2023/24 season
Ghana has lost more than a third of its 2023/24 cocoa output to smuggling, as low local prices and payment delays push some farmers to sell to sophisticated trafficking rings. Poor harvests in Ghana and Ivory Coast, the world’s second largest and largest producers, have pushed markets into a four-year supply deficit, driving up global cocoa and chocolate prices this year. But cocoa fetches more in Ivory Coast and Togo than in Ghana because of a more stable CFA franc currency and a less regulated sector.
Francophone West Africa
Ivory Coast
- Global Citizen convenes inaugural African summit to address energy poverty.
The inaugural Economic Development Assembly: Advancing Africa’s Future, focused on mobilizing significant financial investments from G20 countries seeks to highlight the urgency to support social and economic development in 75 low-income countries, including lifting 250 million people out of energy poverty by 2030.
- Ivory Coast suspends new port taxes.
The suspended taxes, which were set to take effect in September 2024, included rates of 150,000 CFA francs per ton for passenger vehicles, utility vehicles, and trucks, and 30,000 CFA francs per ton for their spare parts. Additional taxes were also planned for alcoholic beverages, tobacco products, and perfumery items.
- ECOWAS seeks $12 billion for Abidjan-Lagos highway.
The Economic Community of West African States (ECOWAS) is set to embark on several investor roundtables and Roadshows to secure the over $12 billion capital investment needed to construct the over 1000km supranational Abidjan-Lagos highway.
Senegal
- Senegal’s Dollar Bonds Fall As IMF Warns of Fiscal Deterioration.
Senegal’s dollar bonds dropped after the International Monetary Fund (IMF) warned of a worsening fiscal outlook for the country. The bonds were the worst performers in Bloomberg’s index of emerging and frontier sovereign dollar debt. Yields on Senegal’s 2048 notes increased by 14 basis points to 9.78%.
- Concerns mount over Senegal fiscal shortfalls ahead of election.
Senegal’s slower economic growth, its widening fiscal deficit and a potential delay in International Monetary Fund financing could cloud the outlook ahead of the November 17 parliamentary elections, analysts say. President Bassirou Diomaye Faye, just five months into the job, set the stage for the snap vote when he dissolved the opposition-led National Assembly on Thursday.
East Africa
Kenya
- Kenya says economy to grow by 5.2 pct in 2024
The National Treasury of Kenya on Monday projected the country’s economy to grow by 5.2 percent in 2024 and 5.4 percent in 2025. However, it warned that increased uncertainties in both the external and domestic environments could negatively impact commodity markets and slow down the expected potential growth.
- Kenya awards $1.3bn transmission deal to Adani
Kenya Electricity Transmission Company (Ketraco) has granted a concession for a public-private partnership to construct power transmission lines to India’s Adani Group and an entity of the African Development Bank, according to a presidential economic advisor.
- Kenya’s horticulture exports drop by 3.5% in H1
Kenya’s earnings from horticulture exports declined by 3.5 percent in the first half of 2024, driven by reduced shipments to markets in Europe and Asia, according to new economic data released on Tuesday by the national statistics bureau.
- IMF further delays approval of new funding for Kenya
The international Monetary Fund (IMF) has further delayed the approval date for new funding to kenya due to a lack of concensus on new revenue targets following the withdrawal of the 2024 Finance Bill.
Uganda
- Credit to private sector increased in July
In July 2024, total shillings of 1,443.5 billion was extended to the private sector by lending institutions, an increase from shillings 1,360.9 billion the previous month, this is according to the finance ministry’s report on the performance of the economy for August 2024.
- Uganda’s debt remains sustainable, says IMF
The International Monetary Fund (IMF) has said the political and economic contexts in Uganda are predictable and stable, and that the debt is sustainable, which puts the country in a better position for development.
Tanzania
- BoT projects 5.4pc economic growth for 2024
Tanzanian economic growth is projected to grow 5.4 percent during this year, fueled by ongoing reforms in creating conducive business environment, which continue to stimulate both private and public investments.
- Emerging Alternative Lending Market in Tanzania Predicted to Reach US$941.7 Million by 2028
A comprehensive data-centric analysis of the Alternative Lending industry in Tanzania has forecasted an impressive growth rate over the coming years. The latest market insights reveal that the sector is projected to expand from US$314.5 million in 2023 to a substantial US$941.7 million by 2028.
- UAE firm plans to invest $500m in Tanzania
A United Arab Emirate (UAE)-based company- GSG Energies is poised to invest $500 million in Tanzania, focusing on transport, mining, manufacturing, and petroleum product distribution.
- Tanzania earns Sh1.877 trillion from extractive sector
The government has collected Sh1.877 trillion from 44 companies operating in the mining, oil, and gas sectors.
Southern Africa
South Africa
- Inflation dips to 4.4% in August, fueling hopes for interest rate cut
South Africa’s consumer inflation eased to 4.4% year-on-year in August from 4.6% in July, reaching its lowest level in more than three years and backing the case for the South African Reserve Bank to cut interest rates this week.
- Sarb announces 25bp rate cut
The South African Reserve Bank (Sarb) cut its repurchase rate (repo rate) by 25 basis points to 8% on Thursday, the first cut since the Covid-19 global economic fallout four-and-a-half years ago.
- South Africa Consumer Confidence Improves to a Five Year High
South African consumer confidence surged in the third quarter to pre-pandemic levels, driven by increased optimism about personal finances which bodes well for household spending.
Zimbabwe
- Zimbabwe Loses US$1.15 Billion in Revenue Due to Informal Economy Between 2020 and 2023
Zimbabwe’s informal economy has cost the country at least US$1.15 billion in potential fiscal revenue between 2020 and 2023, according to a research paper presented at the Zimbabwe Economic Development Conference (ZEDCON) in Victoria Falls.
- Zimbabwe’s New Gold-Backed Currency Faces Early Struggles Amid Economic Pressures
The gold-backed ZiG (Zimbabwe Gold), the currency is under intense pressure as the nation grapples with economic challenges. Increased grain imports have significantly drained foreign reserves, raising concerns about the government’s plan to make the ZiG the country’s sole legal tender by 2026.
- Zim’s energy crisis: A 6,1% GDP drain and the path to economic revival
A recent World Bank report has cast a stark light on the magnitude of this crisis, revealing that unreliable electricity supply exacts a staggering toll of 6,1% from Zimbabwe’s annual gross domestic product (GDP).
- Zimbabwe’s Public Debt Soars to $21 Billion, Sparking Opposition Criticism
Zimbabwe’s public debt has surged by $4 billion in just eight months, reaching a total of $21 billion, drawing strong criticism from opposition leaders.
- Zimbabwe Explores Debt-for-Climate Swap as Part of $21 Billion Restructuring
Zimbabwe’s creditors may be open to considering a debt-for-climate swap as part of efforts to restructure the nation’s $21 billion in arrears, according to Raul Fernandez, a project manager with the United Nations Development Program (UNDP).
Zambia
- Germany pledges K3.14bn for Zambia’s development agenda
The German Government has pledged 3.14 Billion Kwacha to bolster Zambia’s development agenda over the next two years. The pledge includes 758 Million Kwacha previously pledged for the drought relief and resilience building efforts.
Central Africa
Angola
- Fed Cut May Spur Nigeria, Angola Eurobond Sales, BancTrust Says.
The Federal Reserve’s half-percentage-point interest-rate cut may pave the way for new debt issuance by African nations including Nigeria and Angola, according to BancTrust & Co. This bigger than expected easing in US monetary policy will “likely drive market yields lower in the sub-Saharan Africa space, which would increase the attractiveness of the international capital market for issuers,” the London-based investment bank said in a research note on Wednesday.
- New Minimum Wage Comes Into Force
The new national minimum wage of 70,000 kwanzas, for Angolan workers in general, and 50,000 kwanzas for micro-sized enterprises and startups, came into force this Monday (16 September). The new minimum wage is the result of an agreement between the Angolan Government and trade union centrals, namely Union Force (FS), National Union of Angolan Workers (UNTA)-Trade Union Confederation and the General Centre of Independent and Free Unions of Angola (CGSSILA).
Gabon
- Gabon finalises €545m deal to complete modernisation of only railway.
The West African country of Gabon has signed a contract with the operator of its only railway to begin the second phase of its modernisation. The deal was agreed by Christian Magni, director general of Société d’exploitation du Transgabonais (Setrag), and Loic Ndinga Moudouma, Gabon’s minister of transport.
