November 1, 2024/United Capital Report
Anglophone West Africa (WAEMU)
Nigeria
- IFC, CBN plan $1.00bn investments in major sectors
The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) have announced an agreement to scale up local currency financing, unlocking over $1.00bn in investments across key sectors of the Nigerian economy. The agreement will provide naira-based financing to sectors such as agriculture, infrastructure, housing, energy, small and medium enterprises, and Nigeria’s youth and creative industries.
- Four free trade zones attract $8.00bn investments
Four Free Trade Zones (FTZ) have attracted a total investment of $8.00bn within their years of operations, contributing to local economic activity and fostering international trade relations. $2.50bn was attracted to develop the Lagos FTZ, while the Lekki FTZ reached $4.00bn in attracted investment. $1.00bn has been invested in the development of Alaro city and $500.00m to develop LADOL, a privately owned logistics and engineering facility.
- Group selects Nigeria for Japan-Africa trade
The African Diaspora Network Japan (ADNJ) has referenced Nigeria as a prime location to bolster economic relations between Japan and Africa. It advocated that Japanese companies tap into the African market through the African Continental Free Trade Area.
- Nigeria’s money supply surges to N108.9tn, up 68.00% in one year
Nigeria’s money supply (M3) has grown by 62.80% y/y in September 2024, despite the Monetary Policy Committee’s (MPC) tightening stance aimed at curbing excess liquidity to control inflation. M3 increased to N108.95tn in September 2024, compared to N66.94tn in the same month last year. On a m/m basis, the money supply rose by 1.60% from N107.19tn in August 2024.
Ghana
- IMF projects 3.00% end of year growth rate for Ghana
The International Monetary Fund (IMF) forecasts that Ghana will conclude the year 2024 with a growth rate of 3.00%, as stated in the World Economic Outlook Report. Published during the meetings of the IMF and World Bank, it aligns with the government’s forecast of a 3.1 per cent GDP growth rate as stated in the 2024 Budget.
- Government takes steps to reduce financing energy sector shortfalls
The government says it has taken bold steps to reduce, if not eliminate, the continuous support to the Electricity Company of Ghana (ECG) in financing the country’s energy sector shortfalls. That action by the government, Dr Amin Adam said was to make ECG cost and operationally efficient, thereby, reducing the emergency liabilities the company imposed on the Ministry of Finance.
- Ghana eyes fuel imports from Dangote refinery
Ghana could buy petroleum products from Nigeria’s Dangote Petroleum Refinery once the facility is operating at full capacity, cutting more expensive exports from Europe, the head of the country’s oil regulator said on Monday. Chairman of the National Petroleum Authority, Ghana, Mustapha Abdul-Hamid, said this could end monthly fuel imports from Europe of $400m. He spoke at the OTL Africa Downstream oil conference in Lagos.
Francophone West Africa
Ivory Coast
- Hershey and Sucden combine to support Ivory Coast cocoa farmers.
US-headquartered confectionery group Hershey has made a significant move for a deal enhancing support for nine cocoa co-operatives in Ivory Coast, including farmer training and community support measures, reports Neill Barston. As the company revealed, its strategy, is part of a ten-year $500 million investment by the company to address the major challenges facing cocoa farmers – amid a backdrop of ongoing issues of child labour, as well as farmer pay remaining at below poverty levels and climate change negatively impacting crop yields significantly.
- Côte d’Ivoire’s Ministry of Agriculture, AfricaRice and TAAT to Build a Roadmap for Seed Sector Transformation.
The Seed Business Summit, held from September 9th to 11th, 2024 in Abidjan, Côte d’Ivoire, focused on building a harmonized roadmap for seed sector transformation. Organized by the Ministry of Agriculture and Rural Development (MEMINADER) in partnership with Technologies for African Agricultural Transformation (TAAT), Building an Economically Sustainable Cassava Seed System Phase II (BASICS II), and Africa Rice Center (AfricaRice), the summit aimed to pave the way for agricultural transformation in Côte d’Ivoire.
Senegal
- President Faye unveils Senegal’s vision 2050 at Riyadh investment forum.
This highly anticipated presentation allowed Senegal’s youngest president to outline his ambitious economic transformation strategy. “We have decided to move away from the logic of electoral emergencies,” President Faye declared, signaling his intent to break from past practices. Seven months into his presidency, he introduced a comprehensive roadmap centered on four key pillars.
- Senegal raises $300 mn on international financial market.
Senegal has raised $300 million on the international market to cover its financing needs following an alarming financial audit and the postponement of disbursements by the IMF, the government said Wednesday. Six months after taking office, the government in September presented the conclusions of its review of public finances in the West African country, with Prime Minister Ousmane Sonko describing the situation as “catastrophic”. The government audit put the budget deficit at 10.4 percent of GDP, rather than the 5.5 percent announced by the previous administration.
- Société Générale Sénégal: potential buyers prepare to pounce.
After having indicated that they wanted to take control of the Senegalese subsidiary of France’s Société Générale banking group, the Senegalese authorities could now backtrack. This opens the door to the possibility of a private sector buyer.
East Africa
Kenya
- Kenya’s inflation falls to 2.7% year-on-year in October, stats office says
Kenya’s inflation fell to 2.7% year-on-year in October, down from 3.6% a month earlier, the statistics office said. On a month-on-month basis, October inflation was 0.2%, the same as the previous month, the Kenya National Bureau of Statistics said in a statement. The Kenyan government targets an inflation rate of between 2.5% and 7.5% in the medium-term. Kenya’s central bank slashed its benchmark lending rate to 12.00% from 12.75% earlier this month, in a move aimed at stimulating credit to the private sector.
- Kenya’s foreign direct investments fall by nearly half to $335mln
Kenya’s foreign investments, excluding those from EAC member countries, declined to $374.6 million in 2023 from $710.21 million during a difficult period characterised by a depreciating currency, high interests, rising inflation, dollar shortage and negative returns from the Nairobi Securities Exchange. East African Community Secretariat disclosures show that the 47.2 percent drop coincided with number of projects implemented by foreign investors declining by 43 percent to 146 from 209 in the period.
- IMF board approves Kenya’s reviews, unlocking access to $606 million
The executive board of the International Monetary Fund has approved the seventh and eighth reviews of Kenya’s program, the IMF said, paving the way for the cash-strapped government to access a $606 million loan tranche. The East African nation and staff of the IMF announced an agreement on the seventh review of its $3.60bn program in June, but completion of the review at the board level and the subsequent disbursement were disrupted by deadly protests.
- Kenya’s supreme court quashes ruling that voided 2023 finance law
Kenya’s Supreme Court on Tuesday quashed a decision by an appeals court nullifying the 2023 finance law, a victory for the government after protests forced President William Ruto to withdraw this year’s finance bill. The finance bills form the main vehicle for the government to set out revenue-raising measures, and Ruto’s administration has been relying on the 2023 finance law to continue collecting taxes after the rollback of this year’s legislation.
- Kenyan court suspends $736.00mn Adani power line deal
Kenya’s high court suspended a $736.00mn deal between a state utility and India’s Adani Energy Solutions to build and operate power infrastructure including transmission lines. The public-private partnership agreement between state-owned Kenya Electrical Transmission Company (KETRACO) and Adani Energy Solutions, was signed earlier this month. On 11-Oct-2024 the energy ministry said it would help address persistent power blackouts and support economic growth.
- Kenya’s supreme court quashes ruling that voided 2023 finance law
Kenya’s Supreme Court quashed a decision by an appeals court nullifying the 2023 finance law, a victory for the government after protests forced President William Ruto to withdraw this year’s finance bill. The finance bills form the main vehicle for the government to set out revenue-raising measures, and Ruto’s administration has been relying on the 2023 finance law to continue collecting taxes after the rollback of this year’s legislation.
Rwanda
- Rwanda tax exempt on hybrid, e-cars starts to pay off
The tax exemption on hybrid and electric vehicles (EVs) seems to be paying off, as the number of imports for this type of cars has improved, keeping alive hopes of stemming auto carbon emissions. Recent data from the Rwanda Revenue Authority (RRA) shows that hybrid car imports increased 237-fold between 2021 and 2024, with more than 7000 vehicles, both electric and hybrid, imported.
Tanzania
- Tanzania sells cashew on new commodities exchange
Tanzania will be selling its cashew nuts through the newly established commodities exchange, Tanzania Mercantile Exchange (TMX). Under the system, the sale of raw cashew nuts will be in special auction markets formed by the government in early October 2024. The TMX promises quality, quantity and timely delivery to buyers and guaranteed payments to sellers. The system favours farmers mostly in southern regions of Mtwara and Lindi, which produce the crop.
Uganda
- Ubos revises GDP growth upwards
Uganda Bureau of Statistics (Ubos) has revised the gross domestic product growth for the 2023/24 financial year to 6.1 percent from an earlier estimate of 6 percent. In June, Finance Minister Matia Kaisaija during the Budget reading had indicated that gross domestic product would grow at 6 percent, from 5.3 percent in the 2022/23 financial year. The increase is expected to boost employment, and expenditure, and improve income patterns.
- Uganda’s $5.00bn EACOP pipeline faces difficult debt talk
Partners developing the $5.00bn East African Crude Oil Pipeline (EACOP) are injecting more cash into the project to prevent it stalling as debt financing proves elusive. Linking oilfields in Uganda to Tanga port in Tanzania, EACOP is part of a broader $15.00bn energy plan by TotalEnergies, China’s CNOOC and other partners to develop the Kingfisher and Tilenga discoveries close to Lake Albert.
- BoU registers slowdown in short-term credit utilisation by commercial banks
The Bank of Uganda Standing Lending Facility registered a decline in credit disbursements, signalling a reduction in the uptake of short-term loans by commercial banks to meet liquidity needs. In details contained in the October Monetary Policy Report, Bank of Uganda noted that utilization of the Standing Lending Facility declined to Shs9.97 trillion, which as equivalent to 160 transactions during the three months to September 2024.
Southern Africa
South Africa
- South African Finance Chief Wary of Binding Rules to Cap Debt
South African Finance Minister Enoch Godongwana warned that the adoption of a binding fiscal anchor would limit the National Treasury’s policy options if enforcement is entrusted to a body outside of the government.
- Budget leaves investors cold as South Africa’s fiscal deficit widens
South Africa’s latest budget update reveals growing pressure on public finances, with the fiscal deficit projected to widen to 5% of GDP by March. Finance Minister Enoch Godongwana emphasized the need for increased investment to stabilize the economy amid persistent electricity shortages and rising civil service wages.
- South Africa Sends Global Minimum Tax Legislation to Parliament
South Africa sent two bills to parliament that would enact and administer the OECD’s global minimum tax rules. Finance Minister Enoch Godongwana announced the legislation package for the minimum tax comprising of two bills — Global Minimum Tax Bill and the Global Minimum Tax Administration Bill — on Wednesday while presenting the country’s medium-term budget statement.
- South Africa posts trade surplus of 12.84 bln rand in September
South Africa recorded a trade surplus of 12.84 billion rand ($727.04 million) in September, revenue service figures showed on Thursday.
- President Ramaphosa assents to Upstream Petroleum Resources Development Bill
President Cyril Ramaphosa has assented to the Upstream Petroleum Resources Development Bill which seeks to accelerate petroleum exploration and development with participation by black South Africans, as part of the nation’s social and economic advancement.
- S. Africa Plans Infrastructure Investment Trusts to Lure Funding
South Africa plans to establish infrastructure investment trusts and set up a blended-finance vehicle to lure investment to build roads, power-transmission networks and other public-works projects.
- South Africa sees wider deficits, higher debt in budget review
South Africa’s government on Wednesday forecast wider budget deficits and higher debt over the next three years, even as it anticipated better growth prospects due to improved electricity supply.
Zimbabwe
- Zimbabwe’s ruling party passes resolution to have gold-backed ZiG adopted as sole currency
The government is ordered to “expedite efforts to dedollarize the economy and promote the use of the ZiG as the country’s sole currency,” according to the resolution agreed at the ruling Zimbabwe African National Union-Patriotic Front annual conference at the weekend. No timeline was given for the change.
- Zimbabwe and European Union sign Financing Agreements worth 75 Million Euros
The Government of Zimbabwe and the European Union signed four Financial Agreements totalling 75 million Euros (over USD 80 million) in support to the development of the country. The Financing Agreements reinforce the EU’s commitment to complement Government’s efforts in implementation the National Development Strategy 1 (2012-2025) and EU’s Global Gateway Strategy shared priorities.
- Zimbabwe’s gold-backed ZiG currency can’t fix deeper issues – IMF cautions
Zimbabwe won’t solve its economic challenges via the gold-backed ZiG currency that it launched in April and has since had to devalue, the International Monetary Fund said.
Zambia
- Zambia Inflation Nears Three-Year High as Food Prices Spike
Zambia’s annual inflation rate climbed to an almost three-year high in October as the nation’s worst drought on record kept prices of meat, corn and cereals sticky.
Angola
- Angola’s Economy Expected to Grow 4.1% in 2025, Minister Says
The Planning Minister said this Friday that the government’s latest forecasts point to economic growth of 3.3 percent this year and 4.1 percent in 2025, above the estimates of the International Monetary Fund (IMF).
Central Africa
DR Congo
- Kinshasa’s strategy to get Common Interest Zone up and running.
Determined to assert its rights over its offshore oil resources, the Congolese government is progressing on the development of the Common Interest Zone with Angola under the lead of hydrocarbons minister Sakombi Molendo.
- Museveni, Tshisekedi agree on DR Congo roadworks.
President Museveni and his Congo counterpart Felix Tshisekedi have agreed to construct some roads connecting the two countries and intensify joint operations against armed groups. Mr Museveni’s meeting with Mr Tshisekedi at State House Entebbe in Uganda yesterday also focused on regional security and oil exploration on Lake Albert.
- DR Congo’s Plans for Oil and Gas Auction Unclear.
The government of the Democratic Republic of Congo appears to be rejigging a plan to auction off the rights to drill for oil and gas in 30 blocks across the country. On October 11, Congo’s hydrocarbons minister announced he had cancelled the auction of 27 oil blocks, citing late submissions, inappropriate or irregular offers, and a lack of competition. The announcement makes no mention of three gas blocks.
Angola
- Angola’s Revenue Can Only Cover Salaries, Debt, Minister Says.
Angola faces peak loan payments that require the oil-producing nation to use all of its fiscal revenue to pay salaries and to service debt, its finance minister said. “This has been a very demanding year in terms of debt service,” Vera Daves de Sousa said in a video interview with Angolan magazine Economia & Mercado that was broadcast online. “We are experiencing a high peak not only in terms of our external debt service, but also to service internal debt.”
- Angola Says It’s Looking Into IMF Lending-Program Options.
Angola’s government is holding talks with the International Monetary Fund about a possible new program and is evaluating what type of loan would better fit the oil-producing country’s needs, Finance Minister Vera Daves de Sousa said. “We are discussing, we even have a note with the options,” Sousa said in an interview on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington. “After evaluating technically, the discussion will be political,” she said, adding that differences remain with the IMF on capital expenditures.
