28th February 2024
Interest Rates Surge to Fortify Naira
Nigeria's central bank made a decisive move to bolster confidence in the struggling naira, raising interest rates by a surprising 400 basis points to 22.75%. Governor Olayemi Cardoso stressed the bank's commitment to addressing Nigeria's economic challenges, aiming to restore trust and stability. The aggressive policy shift follows surging inflation and currency depreciation, exacerbating a cost-of-living crisis. Economists applaud the move, seeing it as essential for attracting foreign capital and revitalizing the economy under President Bola Tinubu's reform agenda. However, protests against rising hardship and insecurity underscore the urgency of Nigeria's economic recovery efforts.
Nigeria Investors Shift Focus to Fixed Income Securities
Investors in the Nigerian capital market are poised to adjust their portfolios, shifting towards fixed income securities amidst bearish sentiments and profit-taking in equities. Cordros Capital anticipates cautious trading amid uncertainties surrounding the upcoming Monetary Policy Committee meeting. With expectations of subdued market activity, Cowry Asset Research advises investors to rebalance their portfolios, focusing on fundamentally strong stocks. Last week, the equities market experienced significant losses, with the All-Share Index declining by 3.44%, reflecting a downturn in market capitalization by approximately N1.988 trillion. Despite pockets of gains in certain sectors, overall market performance was largely negative.
South Africa's First Female Chief Justice
South African President Cyril Ramaphosa has nominated Mandisa Maya as the nation's first female chief justice, a significant milestone two years after she was passed over for the position. Maya, previously appointed as deputy chief justice, is set to succeed Raymond Zondo at the Constitutional Court. While the Judicial Service Commission previously recommended her for the role, Ramaphosa selected Zondo, making Maya his deputy. With four women among the court's ten judges, Ramaphosa seeks input from political leaders on Maya's suitability. Additionally, Dumisani Zondi is nominated as deputy president of the Supreme Court of Appeal.
Ghana Bids to Tackle Debt Crisis Before Elections
Ghana's President Nana Akufo-Addo aims to resolve the nation's debt crisis before his deputy, a favored successor, contests the December elections. Seeking to fulfill IMF bailout conditions, Ghana plans to restructure $5.4 billion in loans, with a target to conclude commercial creditor negotiations by March. Akufo-Addo defended tough economic decisions, including tax hikes, amid Vice President Mahamudu Bawumia's digitalization drive. Bawumia's focus on technology aims to streamline governance and boost efficiency. As Ghana faces economic challenges and rising living costs, both candidates vie for public support ahead of the polls.
