February 21, 2025/United Capital Research
Anglophone West Africa (WAEMU)
Nigeria
- Nigeria’s inflation rate drops to 24.48% in January 2025 amid CPI rebasing
Following the rebasing of the Consumer Price Index (CPI), Nigeria’s headline inflation dropped to 24.48% y/y in Jan-2025 from 34.80% in Dec-2024 which was calculated using the previous methodology. The rebased food inflation stood at 26.08% y/y in Jan-2025 indicating a 13.76% decline from 39.84% recorded in Dec-2024.
- Senate, House of Reps reverse passage of N54.9 trillion 2025 budget over errors
The Senate and the House of Representatives have rescinded their decision on the passage of the 2025 budget bill, citing the need to correct errors in the allocations to capital and recurrent expenditures. Despite the reversal, the overall budget size remains unchanged at N54.9tn. The revised bill now allocates N13.588tn to recurrent expenditure, an increase of N524.00bn, while capital expenditure has been reduced by the same amount to N23.439tn.
- Nigeria’s money supply surges to N110.98 trillion as MPC members meet to decide rates
Nigeria’s broad money supply (M3) rose to N110.98tn in Jan-2025, marking a 17.3% y/y increase from N94.61tn recorded in Jan-2024. This expansion highlights the growing liquidity in the economy, fueled by both net foreign assets and net domestic assets. The increase in M3 money supply provides a holistic picture of Nigeria’s monetary dynamics. Over the past year, the country’s money supply has expanded steadily, with notable jumps in H2- 2024.
- CBN votes to hold all interest rates at 27.50%
The Central Bank of Nigeria’s Monetary Policy Committee has voted to hold all rates across board with the headline monetary policy rate (MPR) held at 27.5%.
- CBN orders bank directors with bad loans to resign
The Central Bank of Nigeria (CBN) has ordered bank directors with non-performing insider-related loans to immediately resign from their positions as part of efforts to strengthen corporate governance and reduce credit risk exposure in the banking sector. The directive also requires banks to regularise all insider-related facilities that exceed the statutory limits within 180 days. The CBN also noted that any insider-related facility previously approved without a specific timeline must now be adjusted within the given period.
Ghana
- T-Bill Auction: Govt rejects over 8 billion bids
According to the Bank of Ghana (BoG) the Treasury department rejected GHS 8.27 billion in bids at its latest auction, marking one of the largest rejections since March 2023. Investors tendered GHS 17.70 billion against a target of GHS 8.07 billion, with GHS 9.43 billion accepted. The 91-day bill saw bids of GHS 6.8 billion, with GHS 5.2 billion accepted, while the 182-day bill attracted GHS 4.5 billion, with GHS 1.4 billion accepted. The 364-day bill received GHS 6.2 billion in bids, with GHS 2.7 billion accepted. The rejections triggered a sharp nose dive in yields, now ranging between 26% and 27% down from 28 to 30% recorded the previous week.
- NPA sets new price floor for petroleum products
The National Petroleum Authority (NPA) has introduced a new price floor for petroleum products for the second pricing window of February, requiring Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to adhere strictly to the set minimum prices. The directive, effective from February 16 to 28, 2025, mandates that no company should sell fuel below the established threshold, with violators at risk of facing potential sanctions from the regulator. The price floor for petrol and diesel has been set at GH?12.56 and GH? 13.45 per litre, respectively, while LPG has been fixed at GHS 14.26 per kilogram.
- GSE Tipped To Sustain Bullish Continental Lead Performance In 2025
The Ghana Stock Exchange (GSE) has recorded a bullish performance in 2024, emerging as the best stock exchange in Africa with a 56.17 percentage gain during the period, an exploit that industry experts are optimistic would continue in 2025. Ghana’s stock index led Africa with a remarkable 56.17 percent return, the highest since 2013. This was bolstered by a US$3 billion IMF bailout and an average GDP growth of 6.3 percent over the year.
Francophone West Africa (WAEMU)
Ivory Coast
- Ivory Coast takes control of last remaining French base
Ivory Coast officially took control of the last remaining French military base in the country Thursday as most French forces departed from countries across West Africa. Some 80 French troops will stay in the country to advise and train the Ivorian military, Tene Birahima Ouattara, the Ivorian defense and state minister, said at a news conference with the French minister of the armed forces.
East Africa
Kenya
- Fuel prices remain unchanged in latest EPRA review.
Fuel prices will remain unchanged for the next month (15-Feb to 14-Mar), the Energy and Petroleum Regulatory Authority (EPRA) has said. This means that a litre of petrol in Nairobi will continue retailing at Sh176.58, diesel at Sh167.06, and kerosine at Sh151.39.
- Zuku Kenya Fined KSh 500k for Violating Customer Data Rights.
Zuku Kenya, operating under Wananchi Group Limited, faces a penalty for violating its former customer data rights The internet service provider was slapped with a KSh 500,000 compensation fine for failing to delete the customer’s data Data Commissioner Immaculate Kassait urged data handlers to be careful and follow the law when processing clients’ data Cyber Security Expert Allan Lwala explained to TUKO.co.ke the client’s rights to their data in passion of any company.
- House Prices Fall in Kenya, Open Doors for Aspiring Homeowners.
The Kenya Bankers Association’s housing pricing index showed home prices fell by 1.1% during the third quarter of 2024 and 14.28% year-on-year KBA director of research Samuel Tiriongo said the slowdown in house prices reflects a shift in the market, signalling tough times for developers However, he noted that banks have reduced lending rates, and this could raise demand in the coming months.
Rwanda
- Govt Aims to Raise Tax-to-GDP Ratio to 19% By 2029.
The government of Rwanda has said that it targets to increase its tax to gross domestic product (GDP)ratio from the current 14.6 per cent to 19 per cent by 2029, as the country seeks to accelerate socio-economic development. This was revealed by the Minister of Finance and Economic Planning, Yusuf Murangwa, as the government announced new tax reforms that were approved by the cabinet on Monday, February 10.
- Rwanda’s Coffee Exports Poised for Recovery Amid Rising Prices.
Rwanda’s coffee exports are expected to rebound following a price increase in the international market, after the country experienced a decline in revenues in the 2023/2024 fiscal year, The New Times understands. In 2023/2024, Rwanda’s coffee export revenues dropped by 32.1 per cent to $78.7 million, down from more than $115.9 million in 2022/2023, according to data from the 2023/2024 report by the Ministry of Agriculture and Animal Resources (MINAGRI).
- Rwanda central bank holds key rate despite pickup in inflation.
Rwanda’s central bank kept its key interest rate unchanged at 6.5% for the second monetary policy meeting in a row, saying that despite a recent pickup in inflation it expected it to remain within its target band. Annual inflation rose to 7.4% in January, approaching the top of the National Bank of Rwanda’s 2%-8% target range.
Tanzania
- Japan, Tanzania launch JICA agricultural hub in Morogoro.
Japan and Tanzania have launched the Japan International Cooperation Agency (JCIA) Agricultural Hub at Sokoine University at the Sokoine University of Agriculture (SUA) in Morogoro. This collaboration aims to strengthen skills in irrigation agriculture and improve food production through knowledge exchange and research.
- Dar es Salaam, Zanzibar, Coast bracing for power cuts.
Certain areas of Dar es Salaam, Zanzibar, and the Coast will experience temporary power outages between Saturday February 22, and Friday, February 28, 2025. The Tanzania Electric Supply Company (Tanesco) has confirmed that the planned outages are due to upgrades at Ubungo Power Station in Dar es Salaam.
- Gazprom enters Tanzania market via compressed natural gas.
Russian giant Gazprom hopes to help Tanzania achieve its ambition to develop its compressed natural gas sector. Russia and Tanzania plan to build on decades of political ties by deepening their commercial relations.
Uganda
- Parliament Backs Sh57tn Budget, Calls for Tax Policy and Fiscal Discipline.
Parliament has approved Uganda’s National Budget Framework Paper for the 2025/2026 financial year, setting expenditure at Shs57.44 trillion –20% lower than the Shs72 trillion allocated for the current financial year. The sharp reduction reflects fiscal constraints and a push for tighter spending controls.
- 9 finance ministry officials detained in Uganda over central bank heist.
Uganda’s police have detained nine finance ministry officials as part of an investigation into accusations of hacking the central bank’s electronic systems that resulted in theft of 62 billion shillings ($16.87 million), the ministry and police said.
South Africa
South Africa
- South Africa’s unemployment rate marginally lower in fourth quarter
South Africa’s official unemployment rate fell slightly in the fourth quarter of last year, helped by job gains in the finance and manufacturing sectors. The second quarterly decline in a row took unemployment to 31.9% in October-December from 32.1% in July-September, data from Statistics South Africa showed.
- South African retail sales rise 3.1% year on year in December
South African retail sales rose 3.1% year on year in December after rising by a revised 7.6% in November, Statistics South Africa figures showed. The largest positive contributors to this increase were retailers in textiles, clothing, footwear and leather goods and general dealers. Retail sales fell 0.1% month on month in December.
- South African budget delay over VAT hike shows cracks in coalition
South Africa’s national budget was postponed on Wednesday because the two biggest parties in the ruling coalition disagreed over raising value-added tax, an unprecedented delay that caused the rand and government bonds to fall. The speaker of the National Assembly, Thoko Didiza, told lawmakers who had gathered to hear the finance minister deliver the budget that the speech would now happen on March 12.
- South Africa’s white farmers would be among victims if Trump ends growth bill
Donald Trump’s axing of aid to South Africa, in response to land reform policies he says will harm its white minority, has raised fears a trade deal may be next, though any such move would hurt the same farmers the U.S. president says he wants to help. Under the Africa Growth and Opportunities Act, South Africa gets tariff-free quotas on agricultural exports including wine, citrus, soybeans, sugar cane and beef. The Act makes up about a quarter of its $15 billion annual trade with the United States. That compares with under $440 million in U.S. aid, in 2023.
- South Africa’s Vodacom targets double-digit profit growth by 2030
South Africa’s biggest mobile operator Vodacom aims to accelerate group core profit growth into a double-digit rise from 7.8% in its latest annual results, with more customers and targeted financial services growth. Chief Executive Shameel Joosub and Chief Financial Officer Raisibe Morathi hosted shareholders and potential investors to share the operator’s “Vision 2030”, where they laid out medium-term plans to grow on the continent.
Botswana
- Botswana central bank holds key rate with inflation seen within target
Botswana’s central bank left its main lending rate unchanged on Thursday at its first monetary policy meeting of the year, saying inflation was expected to remain within its target range over the medium term. The Bank of Botswana also held the rate at 1.90% at its last two meetings in November and December. Inflation in the Southern African country quickened to 2.5% year-on-year in January, from 1.7% a month earlier. The central bank’s preferred inflation range is 3%-6% over the medium term.
Zambia
- Zambia suspends export tax on precious stones and metals
Zambia has suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness on the global market and draw investment, the finance ministry said. The southern African country, the world’s second-largest emerald producer after Colombia, reintroduced the tax in January 2025 after it was suspended in 2019.
- BoZ dismisses election link to new currency
Bank of Zambia (BoZ) Governor Denny Kalyalya says change of currency has nothing to do with next year’s general elections, adding that any government would have done so because of the compelling reasons. BoZ will be introducing a new family of Zambian currency, which will include K200 and K500 notes, whose launch is set for March 31, 2025.
Zimbabwe
- Zimbabwe to pay displaced, foreign white farmers
Zimbabwean Finance Minister Mthuli Ncube said in a statement the government will pay 94 former farmers from countries such as Switzerland, Denmark, Germany, Netherlands and the former Yugoslavia. The farmers are covered under Bilateral Investment Protection and Promotion Agreements, or BIPPAs, that Zimbabwe signed with the farmers’ countries. Ncube said $20 million is being paid out of the 2024 budget and another $20 million would come from the 2025 budget..
- IMF Staff Completes SMP Discussion Mission to Zimbabwe
At the conclusion of the IMF mission, Mr. Maliszewski issued the following statement: “Zimbabwe’s economic activity has started recovering after the El Niño-induced drought. Growth slowed from 5.3 percent to an estimated 2 percent in 2024, as the drought lowered agricultural output by 15 percent. This was compounded by reduced electricity production and declining prices for key mineral exports (platinum and lithium). That said, strong remittances continued supporting activity in domestic trade, services, and construction, and improved the current account surplus to an estimated US$500 million (1.4 percent of GDP) in 2024.
Central Africa
Cameroon
- Cameroon and BEAC Clash Over Supervision of Deposit and Consignment Funds
A dispute has emerged between the governor of the Bank of Central African States (BEAC), who also chairs the Central African Banking Commission (COBAC), and the head of Cameroon’s deposit and consignment funds (CDEC) over the supervision of deposit and consignment funds (CDC) in the CEMAC region. After the second meeting of a working group tasked with developing a regulatory framework for CDC oversight, held on January 12 in Yaoundé, the two officials issued conflicting statements, revealing a deep divide..
- CEMAC Eases Rules for Opening New Bank Branches
Since January 1, 2025, the Bank of Central African Countries has made it easier for banks to open new bank branches within the community. A new regulation, in effect since the beginning of the year, allows banking groups already licensed in one of the Cemac countries to expand into others without having to apply for additional approvals.
- Cameroon’s BEAC Borrowing Up 20.4% in 2024, Despite Challenges
The Cameroonian government raised CFA1153.9 billion on the Central African States Bank (BEAC) public securities market in 2024, marking a 20.4% increase from the previous year. This was revealed by Finance Minister Louis Paul Motazé on February 13, 2025, in Douala during a presentation to investors outlining the country’s financing program for the year.
- Cameroon Plans to Expand Public Debt Market with New Financing Strategies
Yesterday, Sylvester Moh, Director General of the Treasury at the Ministry of Finance, unveiled the government’s new strategy to widen the pool of investors in Cameroon’s public debt market. He emphasized the need to engage a broader range of economic players, including insurance companies, small savers, and unbanked populations, in funding the state’s development projects.
- Cameroon’s Treasury Bond Interest Rates Surge, Investor Interest Declines
Yesterday, during a presentation of the state’s financing program for the year in Douala, Cameroon’s Finance Minister revealed that the interest rates paid by the country on its Treasury Bonds (BTA) have significantly increased from 2020 to 2024.
