25th January 2024
Kenya's $429M Infrastructure Boost
Kenya plans to raise $429 million through an 8.5-year tax-free infrastructure bond, following a series of successful issuances. The government has raised $2.3 billion since January 2023 through similar bonds to fund various projects. The Central Bank of Kenya is expected to announce the offer soon, and terms may be subject to change. The move aligns with Kenya's ongoing efforts to finance key infrastructure developments, including road construction and water supply projects. The latest offering follows a trend of successful bond auctions, with the previous sale in December 2022 raising $868 million.
Naira Undervalued: CBN
Central Bank of Nigeria Governor Olayemi Cardoso anticipates a moderation in inflation in 2024, citing the bank's inflation-targeting policy. He described the country's naira currency as "undervalued" and emphasized the need for coordinated fiscal measures. The central bank is expected to raise interest rates in its upcoming meeting to tackle inflation, which stood at 28.9% in December. Cardoso aims for genuine price discovery and transparency in exchange rates. The Association of Bureaux de Change Operators of Nigeria received approval to publicly post naira exchange rates online, reversing previous measures to control the unofficial market.
Huge Demand for Ivory Coast
Ivory Coast successfully re-entered the dollar-bond market, raising $2.6 billion in an oversubscribed offering. The world's leading cocoa producer saw over $8 billion in combined demand for a sustainable bond maturing in 2033 and a conventional offering due in 2037. This move, Ivory Coast's first in almost seven years, signifies a shift for sub-Saharan African nations, previously locked out of international debt markets due to rising US interest rates. The bonds will be eligible for inclusion on the JPMorgan EMBI Index, offering improved liquidity and potential benefits for the region.
Russia Challenges French Influence
Russian President Vladimir Putin welcomed Chadian leader Mahamat Idriss Deby in the Kremlin, marking a shift as Chad, historically a pro-Western nation, engages with Russia's outreach in Africa's Sahel region. Russia aims to reduce French influence and build ties with countries affected by recent coups. Putin expressed readiness to assist Chad and noted opportunities for bilateral ties, doubling the quota for Chadian students in Russian universities. This move follows Russia's engagement with Niger after a 2023 coup, signaling a broader shift in alliances as some African nations pivot towards Russia.
