18th April 2024

Good morning. A World Bank and African Development Bank partnership aims to electrify millions, while inflationary easing prompts rate cut conversations in South Africa and Namibia. Acre Impact Capital's raises $100mn for African climate fund, while Italian Premier Giorgia Meloni's visits Tunisia for the fourth time in a year. Here is your Roosters Crow.

World Bank and AfDB to Power 300 million

The World Bank Group and African Development Bank Group have joined forces to provide electricity access to 300 million Africans by 2030. The World Bank aims to connect 250 million through renewable energy or the grid, with the African Development Bank supporting an additional 50 million. Access to electricity is crucial for development, with 600 million lacking access. World Bank President Ajay Banga highlights the importance of partnerships and investments. The initiative demands $30 billion in public investment, with significant private sector opportunities, emphasizing the essential role of electricity in economic growth.

Rand Steady amid Inflation Ease

South Africa's rand held steady as March inflation data met expectations, with the currency trading at 19.0475 to the U.S. dollar. Analysts suggest the central bank is unlikely to cut interest rates soon, expecting inflation to hover between 5.0-5.5%. Despite retail sales dipping 0.8% in February, South Africa's 2030 government bond strengthened, yielding 10.705%. Meanwhile, Namibia maintains its repo rate at 7.75% as inflation eased to 4.5% in March driven mostly by food and transport prices. The Namibian dollar's peg to the rand remains a priority for its central bank.

Acre Impact Capital Raises $100 Million

Former BNP Paribas bankers have amassed nearly $100 million for Acre Impact Capital, targeting climate-aligned projects in Africa. Acre aims to bridge the continent's $100 billion annual infrastructure funding gap by providing crucial unsecured finance for export projects. Export credit agencies typically guarantee most loans, but banks are hesitant due to high capital charges. Acre's fund, backed by European Investment Bank and commercial lenders, seeks to mobilize $5.60 of private capital for every dollar invested. Export credit agencies are vital for emerging market financing, while multilateral banks provide additional support.

Italian Premier Visits Tunisia Again

Italian Premier Giorgia Meloni visited Tunisia, acknowledging it can't be a migrant "dumping ground." Visiting for the fourth time in a year she praised joint efforts to combat human traffickers and signed agreements under Italy's "Mattei Plan" for Africa. The accords included education initiatives and 50 million euros for renewable energy. Meloni emphasized fighting modern-day slavers but avoided migration tensions. Tunisian President Kais Saied, rejecting the "border guard" role, opposes migrant centers. Despite EU pledges, Tunisia's bailout standoff delays aid, including migration support. Migrant interceptions rise, with Tunisia resisting being Europe's migrant buffer.

27th March 2024

Good morning. Nigeria confronts 30 year high inflation with another rate hike under Governor Olayemi Cardoso, China pledges support for Zambia's debt restructuring efforts, Nissan Motor tests waters in the African automotive market, and Ethiopia's largest bank navigates a recovery process following a system glitch. Here is your daily Roosters Crow:

Nigeria's 30 Year High Inflation Battle: Central Bank Raises Rates Amidst Economic Challenges

Nigeria's central bank, led by Governor Olayemi Cardoso, raised the monetary policy rate to 24.75% as inflation soared past 30%, marking its highest level in three decades. The decision, Cardoso's second since assuming office, followed a significant 4-percentage-point hike in February, the largest in 17 years. Rising price pressures stemmed from President Bola Tinubu's reforms, including fuel subsidy cuts and naira devaluation, stirring public discontent despite intended economic growth and investment.

China's Role in Zambia's Debt Crisis: Cooperation Amidst Bondholder Deal

China has pledged ongoing cooperation to aid Zambia's debt restructuring, withholding explicit endorsement of Zambia's recent $3 billion bondholder agreement. While Zambia and bondholders approved the proposal, China, the largest official creditor, refrained from confirming support. Zambia's debt woes, spanning three years, has faced obstacles like a rejected November bond deal. China's Foreign Ministry affirmed efforts to assist Zambia's debt disposal while refraining from explicit backing of the recent bondholder agreement.

Nissan Explores African Markets: Introduction of e-Power Cars in Tunisia

Nissan Motor announced plans to introduce e-power hybrid technology cars in Tunisia, aiming to assess demand in Africa's emerging automotive market. Despite low vehicle ownership rates, affordability and infrastructure challenges persist, hindering widespread adoption. Nissan's e-Power system, featuring a petrol engine and electric motor, targets markets primed for electrification. South Africa leads the continent with an electric vehicle policy roadmap, while Nissan expands exports of Navara pickup trucks to several African countries, reinforcing its commitment to the region.

Ethiopia's Banking Glitch: Recovery Efforts and Social Media Fallout

Ethiopia's largest bank, Commercial Bank of Ethiopia, has reportedly recovered nearly 80% of the $40 million lost due to a system glitch allowing excess fund withdrawals. President Abe Sano revealed approximately $14 million was withdrawn or digitally transferred, voluntarily by 15,000 individuals. 567 individuals remain non-compliant, leading the bank to “name and shame” by publicizing their details. The incident, widely publicized on social media, saw withdrawals primarily by university students, prompting institutional appeals for fund returns.

26th March 2024

Good morning. Senegal's unexpected election outcome marks a pivotal moment in its democratic journey, while Zambia's debt restructuring signals progress in financial stability efforts. Ghana navigates economic challenges with strategic monetary policies and Nigeria confronts regulatory scrutiny in the cryptocurrency sphere. Here is your Roosters Crow:

Senegal's Political Upheaval:

Senegal's surprise election outcome saw opposition leader Bassirou Diomaye Faye poised to become president, following concessions from the former prime minister backed by incumbent Macky Sall. Faye's expected win reflects youth frustration with unemployment and governance. Faye, supported by Ousmane Sonko, pledges to fight corruption and foreign influence. The election, marred by unrest, marks Senegal's democratic resilience. With concerns over France's influence, the new government's foreign policy becomes crucial. Observers note a peaceful vote with high opposition support, signaling hope for strengthened democracy. Celebrations ensued as Senegal anticipates its fourth democratic transition.

Zambia's Debt Breakthrough:

Zambia reached a breakthrough agreement to restructure $3 billion in eurobonds, a crucial step to avoid default, signaling progress for the G20's debt relief framework. President Hakainde Hichilema hailed the deal, ending a series of failed negotiations last year. Investors welcomed the news, boosting Zambia's dollar eurobond prices. The agreement, in line with terms accepted by official creditors, entails bondholders forgoing $840 million and exchanging old bonds for new government bonds. The deal sets a precedent for debt negotiations under the Common Framework, especially with Chinese creditors, and includes provisions linked to Zambia's economic performance.

Ghana Rate Hold:

Ghana's central bank maintained its main interest rate at 29%, citing a slightly deteriorating inflation outlook despite recent fluctuations. The nation, grappling with its worst economic crisis, seeks stability amid an IMF-backed $3 billion program. Inflation, while showing a brief rise in January, moderated in February. The bank also adjusted the Cash Reserve Ratio to incentivize lending over Treasury investments. Ghana anticipates an IMF review in April, with potential disbursement in May. Additionally, a $200 million loan for the cocoa board is underway, following debt restructuring efforts totaling $5.4 billion.

Nigeria's Binance Charges:

Nigeria leveled tax evasion charges against cryptocurrency giant Binance and detained executives, alleging non-payment of taxes and aiding tax evasion. One executive fled the country while awaiting court appearance. The Federal Inland Revenue Service accused Binance of tax evasion and aiding customers to dodge taxes. Binance executives were held since February after Nigeria blocked cryptocurrency channels amid a currency crackdown. The naira's 70% devaluation against the dollar added urgency to Nigeria's financial oversight. Binance, acknowledging the executive's absence, faces mounting legal scrutiny in Nigeria's regulatory landscape.

19th March 2024

Good morning. Niger's junta has abruptly terminated a military agreement with the US, while the European Union pledges a substantial aid package to Egypt amid human rights concerns. Meanwhile, South Africa extends its central bank governor's term and appoints a new deputy, and China promises support for investment in Angola's diversification efforts. Here is you daily Roosters Crow:

Niger Junta Ends US Pact

Niger’s military junta terminated a longstanding military agreement with the US, accusing it of violating constitutional rules and being unjust to Niger's people. While not explicitly expelling US troops, the move effectively ends their mission in the country. The decision follows a US delegation's visit, deemed "condescending" by the junta. Niger, aligning with Mali and Burkina Faso, is shifting towards closer ties with Russia, with Moscow expanding defense cooperation in the region.

EU's $8B Aid to Egypt

The European Union unveiled an $8 billion aid package for Egypt amid concerns over migrant influxes to Europe. The deal, inked in Cairo, drew ire for human rights violations. Egyptian President Abdel Fattah el-Sissi hailed it as transformative. Majority of funds, 5 billion euros ($5.4 billion), are macro-financial assistance. It marks a strategic partnership, targeting democracy, migration, and terrorism. The aid bolsters border security, especially with Libya, a crucial transit point. Criticism abounds over Egypt's rights record, challenging EU's ethical stance.

South Africa's Central Bank Term Extended

 South African President Cyril Ramaphosa extended central bank governor Lesetja Kganyago's term for another five years, appointing Mampho Modise as deputy governor. The move, announced Friday, aims to ensure institutional stability at the reserve bank. Kganyago's tenure now spans until 2029, cementing him as one of the longest-serving governors post-apartheid. Modise, a current deputy director-general in the National Treasury, steps into her role on April 1, focusing on financial stability and economic statistics. The Monetary Policy Committee, of which Modise will be a member, will announce its next interest rate decision on March 27.

China Boosts Angola Investment

Chinese President Xi Jinping pledged support for Chinese firms investing in Angola's agriculture and manufacturing sectors, aiding the oil-producing nation's diversification efforts. During a meeting with Angolan President Joao Lourenco in Beijing, Xi emphasized cooperation on key infrastructure projects and economic modernization. China's interest in Angola's economy stems from its significant debt owed by Luanda. Lourenco seeks funding to implement reforms reducing oil dependency. Both nations upgraded bilateral ties, facilitating increased trade. China has invested $12 billion in Angola since 2014, primarily in energy. Angola aims to leverage its abundant natural resources for economic growth, especially amid IMF warnings of oil sector contraction.

15th March 2024

Good morning. Senegal releases opposition leader; Ousmane Sonko, Egypt unveils a $40 billion green investment plan, Standard Bank reports a 27% profit surge, despite challenges from bad loans, whilst Africa grapples with a major internet outage. Here is your Roosters Crow:

Sonko Released Amid Tensions

Senegalese opposition leader Ousmane Sonko was released Thursday amid efforts by the government to ease political tensions following President Macky Sall's decision to postpone presidential elections, sparking unrest. Sonko, along with Bassirou Diomaye Faye, a key challenger, was detained ahead of this month's elections. Sonko, nominated as his party's candidate, faced disqualification for defamation. Their release followed a parliamentary amnesty for political protest-related crimes. Originally set for Feb. 25, elections were delayed for 10 months, a move contested in court. Sall's term ended April 2.

Egypt's $40 Billion Investment

 Egypt unlocked $40 billion in green hydrogen and renewable technology investment with seven memoranda of understanding signed with international developers. Projects in the Suez Canal Economic Zone initially invested $12 billion, followed by $29 billion. Planning Minister Hala el-Said outlined the ambitious plan, aligning with Petroleum Minister Tarek El Molla's goal for renewables to constitute 60% of the energy mix by 2030. Egypt's strategic location in the global "sun belt" positioned it favorably for renewable energy production, benefiting from ample sunshine conducive to hydrogen production.

Standard Bank Profits Surge

Standard Bank, Africa's largest lender, reported a 27% surge in annual profit, reaching 42.9 billion rand ($2.31 billion), buoyed by high interest rates offsetting bad loans. Total net income climbed 20% to 177.6 billion rand, propelled by a 25% increase in net interest income and 13% growth in non-interest revenue. However, inflation, interest rates, power outages, and logistical issues strained retail and small business customers, leading to increased defaults. Credit impairment charges rose by 22%, pushing the credit loss ratio to 98 basis points, nearing the upper range of its target.

Internet Outage Grips Africa

West and Central Africa grappled with a significant internet outage as multiple subsea cables encountered failures, reported by internet observatory Netblocks. The cause remained unclear. SEACOM, an African subsea cable operator, confirmed service disruption on its West African Cable System, redirecting affected customers to the Google Equiano cable. Ivory Coast faced severe outage, while Liberia, Benin, Ghana, and Burkina Faso witnessed high impact. Cloudflare noted major disruptions in Gambia, Guinea, Liberia, Ivory Coast, Ghana, Benin, and Niger, indicating a pattern from north to south Africa. South African operator Vodacom attributed connectivity issues to undersea cable failures.

14th March 2024

Good morning. Today, South Africa pioneers crypto regulations, Somalia relieved of $2B debt by global creditors, Nigeria gears up for eurobond issuance with $1B target and secures $1.3B funding for transformative railway project. Here’s your Roosters Crow: 

South Africa Takes Lead in Cryptocurrency Regulation

South Africa is poised to grant licenses to around 60 cryptocurrency platforms by the end of the month, pioneering continental regulations mandating permits for digital-asset exchanges. The Financial Sector Conduct Authority, reviewing over 300 crypto-asset provider applications, underscores the nation's commitment to regulatory oversight. Commissioner Unathi Kamlana emphasizes that existing financial laws, particularly the FAIS Act, will govern crypto exchanges, ensuring integrity and consumer protection. As Bitcoin surges to record highs, South Africa's move aligns with global trends toward crypto regulation. Yellow Card Financial Inc.'s Botswana license remains a notable milestone in Africa's evolving cryptocurrency landscape.

International Support Eases Somalia's Debt Burden

The world's wealthiest nations have agreed to absolve Somalia of over $2 billion in liabilities, aiding the war-torn nation's quest to achieve debt sustainability. Paris Club creditors will waive $1.2 billion under the IMF and World Bank Enhanced Heavily Indebted Poor Countries Initiative, with an additional $815 million relief offered bilaterally. This accounts for 99% of Somalia's debt to Paris Club members as of January 2023. The move comes as Somalia grapples with over three decades of civil conflict and contends with the insurgency of al-Shabaab, an al-Qaeda-linked group.

Nigeria Ventures Back into International Bond Markets

 Nigeria enlists Citibank NA, JPMorgan Chase & Co., and Goldman Sachs Group Inc. for counsel on its forthcoming eurobond issuance, marking its first since 2022. Expected before June, the bond's size remains undetermined but could reach $1 billion. President Bola Tinubu's approved $18 billion spending plan for 2024 drives the move, aiming to finance a deficit of 3.8% of GDP. Nigeria's resurgence in international bond markets aligns with broader emerging-market debt sales. Tinubu's reforms, including currency devaluation and subsidy removal, aim to attract foreign investment, supported by advisors like Standard Chartered Bank and Chapel Hill Denham.

Nigeria Secures Funding for Key Railway Project

Nigeria secures $1.3 billion funding for a pivotal railway project linking Kano to Maradi in Niger, announces the transport ministry. Led by China Civil Engineering Construction Company (CCECC), the consortium contributes 85%, enhancing economic and cultural ties between the nations. African Export-Import Bank and African Development Bank are among the backers. This development marks a significant stride in bolstering critical infrastructure, says ministry spokesperson. The initiative aligns with Nigeria's broader vision to rejuvenate the northern region and overhaul national transport networks, crucial for long-term economic development.

7th March 2024

Good morning. The IMF's injection of funds into Egypt's economy coincides with the country's currency policy shift, Uganda grapples with currency woes through interest rate adjustments, a U.S. court's decision against major companies sheds light on corporate responsibility and Ethiopian Airlines' Boeing deal signals a significant leap forward in African aviation. Here’s your Roosters Crow: 

IMF Boosts Loan Program Amid Egypt's Currency Shift

The International Monetary Fund (IMF) ramps up its loan program with Egypt by $5 billion, coinciding with the country's decision to allow its currency, the pound, to trade freely. This strategic move aims to jumpstart Egypt's stalled economic program, marked by delays in privatization efforts and fostering private sector involvement. Seeking additional support, Egypt also eyes a $1.2 billion loan from the IMF's Resilience and Sustainability Facility. The IMF underscores the importance of a flexible exchange rate and structural reforms to bolster growth amidst ongoing economic challenges.

Uganda's Interest Rate Hike

Uganda's central bank responds to the local shilling's record depreciation by implementing a 50 basis points interest rate hike, bringing the rate to 10.00%. Deputy Governor Michael Atingi-Ego attributes the shilling's decline to offshore investors seeking higher yields elsewhere. Inflation forecasts are adjusted upward, with core inflation hitting 3.4% in February, closer to the 5% target. Despite economic resilience driven by favourable weather and oil sector investments, tighter monetary policies prompt downward revisions in future growth forecasts.

U.S. Court Rejects Congo Appeal Against Tech Giants

A U.S. federal appeals court dismisses an appeal against tech giants including Google parent Alphabet, Apple, and Microsoft over allegations of supporting child labor in Congolese cobalt mines. The ruling, upholding a 2021 dismissal, rejects claims by former child miners, stating the companies' cobalt purchases don't constitute direct involvement in forced labor ventures. While plaintiffs vow to continue seeking accountability, companies reaffirm their commitment to human rights in their supply chains.

Ethiopian Airlines' Boeing Deal: Charting New Heights in Aerospace

Ethiopian Airlines Group partners with Boeing to acquire eight Boeing 777-9 aircraft, with potential for 12 more, positioning the carrier as the first African adopter of the 777X. The deal underscores Ethiopian's commitment to fleet modernization and sustainability, with the 777-9 offering 10% better fuel efficiency and advanced features. Aligned with Ethiopian's Vision 2035, aiming for over 270 eco-friendly aircraft, the agreement symbolizes Boeing's longstanding partnership with Ethiopian, spanning 75 years and driving aerospace development in Africa.

6th March 2024

Good morning. South Africa narrowly avoids recession, Sibanye Stillwater reports a staggering $2 billion loss, Africa's wealthiest individual unveils plans to establish an oil trading arm and the Southern African Power Pool (SAPP) launches a $1.3 billion fund. Here’s you Roosters Crow: 

South Africa Dodges Recession

South Africa's GDP inches up by 0.1% in Q4 2023, narrowly avoiding recession, with full-year growth at 0.6%. However, it falls short of economist predictions, underlining persistent challenges. Inefficiencies in state-owned entities like Eskom and Transnet, alongside a cost-of-living crisis, continue to hamper growth. The data precedes critical national elections in May, with South Africa facing a decade of economic stagnation, averaging 0.8% GDP growth since 2012, raising concerns of a technical recession.

$2 Billion Loss for Sibanye Stillwater

 Sibanye Stillwater reveals a staggering $2 billion annual loss, suspending dividends due to plummeting platinum group metal (PGM) prices, prompting restructuring and job cuts in South African mining. CEO Neal Froneman hints at a potential capital raise amid lower metal prices but dismisses the idea of a rights issue. The losses follow Sibanye's global acquisition spree of battery metal assets, with further restructuring anticipated, echoing industry peers' cost-cutting measures.

Dangote Plans Oil Trading Arm for Mega-Refinery and Binance Halts Naira Services

Africa's richest individual, Aliko Dangote, sets sights on establishing an oil trading venture, possibly in London, to manage supplies for his Nigerian refinery, marking a significant shift in global oil dynamics. Meanwhile, Binance halts Nigerian naira services amidst a legal clash with Nigeria, with users' balances to be converted to Tether. The Nigerian government's demand for $10 billion from Binance for alleged currency manipulation exacerbates the country's economic challenges.

SAPP Launches $1.3 Billion Fund to Bolster Regional Power Grid

The Southern African Power Pool (SAPP) collaborates with Climate Fund Managers to launch a $1.3 billion fund, aimed at constructing crucial high-voltage transmission lines across the region. Initial commitments from SAPP total $20 million, targeting $500 million by 2025. With eight priority projects identified, including the Angola-Namibia interconnector, the fund addresses the lack of connectivity hindering Africa's renewable energy drive, attracting both public and private investors.

29th February 2024

Good morning. Nigeria's bold rate hike fails to arrest the naira's fall, Senegal's electoral tension mounts. and Ghana's parliament passes stringent laws against LGBTQ rights. Here’s what people are talking about:

Nigeria's Naira Struggles Despite Bold Rate Hike

Nigeria's record 400 basis points interest rate hike fails to curb the naira's freefall against the dollar, hitting historic lows. Despite the Central Bank's aggressive move, the currency weakens by 2.1%, underlining deeper issues beyond liquidity tightening. Eurobond markets also witness turbulence, with Nigeria's stock index reflecting investor unease. While the rate hike initiates corrective measures, market confidence hinges on transparent exchange rate policies and broader economic stability.

Senegal's Electoral Uncertainty Amidst Opposition Rejection

Senegal's opposition leaders dismiss a proposed June 2 election date, demanding adherence to constitutional norms as President Macky Sall faces term limits. Tensions escalate post-Sall's election delay decision, fueling unrest and market volatility. Amidst opposition boycotts and legal disputes, concerns over democratic integrity mount, spotlighting Senegal's stability challenges.

Nigeria Tightens Grip on Crypto

Nigeria detains Binance executives amidst heightened regulatory scrutiny on cryptocurrency exchanges. The crackdown follows website bans amid currency challenges, reflecting Nigeria's struggle to stabilize amidst economic volatility. With passports seized and comments pending from Binance, Nigeria's move underscores broader concerns over financial stability and regulatory oversight.

Ghana's LGBTQ Crackdown Deepens

Ghana's parliament passes stringent legislation targeting LGBTQ rights, signaling an intensified crackdown. The bill imposes harsh penalties, sparking fears of persecution and forced hiding among LGBTQ individuals. With opposition dismissal of proposed amendments, concerns over democratic freedoms and institutional stability mount, amplifying international scrutiny on Ghana's rights landscape.

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.

27th February 2024

Egypt, Zambia Bonds Jump

Egyptian markets experienced a significant surge following a $35 billion investment from the UAE, signaling hope for stability amidst economic challenges. Similarly, Zambia's dollar bonds saw a rise after finalizing a debt restructuring deal with China and India. These developments hint at progress in addressing financial woes, with Egypt eyeing a larger IMF loan and Zambia moving closer to debt restructuring. However, ongoing negotiations with creditors underscore the complexities of their respective economic recoveries.

Ghana Unveils FinTech Innovation Fund at 3i Africa Summit

Ghana's Vice President Mahamudu Bawumia announced plans for a FinTech Innovation Fund during the inaugural 3i Africa Summit. Set for May 13-15, 2024, the summit aims to unlock Africa's digital economic potential. Organized by the Bank of Ghana and Development Bank Ghana, it seeks to foster innovation and support startups driving Ghana's digital revolution. Bawumia emphasized the government's commitment to financial inclusion and small business growth, highlighting the summit's goal of catalyzing transformative discussions in Africa's FinTech sector.

Nigeria Implements Bureaucratic Reforms Amid Economic Challenges

 Nigeria's government approved a plan to streamline bureaucracy, merging, scrapping, and relocating numerous agencies to enhance efficiency and trim expenses. President Tinubu's committee ensures swift legislative amendments, reflecting efforts to address sluggish growth, low revenue, and mounting debt. While applauded by investors, these reforms face scrutiny from unions over rising costs amid inflation woes, underscoring the complexities of Nigeria's economic recovery.

Nigeria Resumes Cash Transfers Amid Economic Hardship and Regulatory Changes

 Nigeria resumes cash transfers to 12 million vulnerable households amidst a cost-of-living crisis, following President Tinubu's removal of fuel subsidies and currency devaluation. Minister Edun emphasizes transparency in the process, providing financial relief for three months. Meanwhile, new central bank regulations outlaw street trading of foreign currency, aiming to stabilize the currency market. Anticipated interest rate hikes respond to economic challenges, reflecting Nigeria's multifaceted approach to addressing financial turmoil.

26th February 2024

Surge in African Debt Demand Amidst Global Economic Shifts

Investors are showing heightened interest in high-yield bonds across Africa, reminiscent of the mid-2018 emerging market surge, propelled by expectations of US interest rate cuts. Recent oversubscribed bond sales from Kenya, Benin, and Ivory Coast have exceeded expectations, signaling robust investor appetite. Analysts remain cautious, citing past defaults, yet believe a default cycle is improbable due to favorable Federal Reserve policies. Multilateral support from institutions like the IMF and World Bank further mitigates risks, potentially reducing borrowing costs for recipients. However, investors emphasize the importance of sound economic management and reforms in scrutinizing investment opportunities.

ECOWAS Lifts Sanctions on Niger Amidst Regional Tensions

The Economic Community of West African States (ECOWAS) has announced the lifting of stringent sanctions on Niger, aiming to deter coup-led nations from exiting the bloc. This decision, driven by humanitarian concerns, comes amid a regional political crisis sparked by Niger, Burkina Faso, and Mali's intentions to withdraw. ECOWAS has urged reconsideration, highlighting the benefits of regional integration. Nevertheless, the bloc's strategy faces scrutiny as it navigates the fallout from military takeovers and the looming threat of democratic erosion, underscoring the complex geopolitical landscape in West Africa.

Sasol Reports 34% Profit Decline, Pick n Pay Implements Recapitalization Plan

Sasol, South Africa's leading producer of fuels and chemicals, has disclosed a 34% decrease in half-year profit, attributed to weakened oil and petrochemical prices alongside rising costs. Concurrently, Pick n Pay has announced a recapitalization plan, incorporating a rights issue and the listing of its discounter business Boxer, with the goal of raising up to 4 billion rand ($208 million) to address liquidity concerns. Newly appointed CEO Sean Summers faces the challenge of revitalizing Pick n Pay's core supermarket business amidst market share losses in a competitive landscape and economic headwinds.

Oil Market Tightens Amidst Global Supply Constraints

Tightening physical oil markets in Europe and Africa, driven by Red Sea shipping delays and OPEC+ supply cuts, have bolstered oil futures prices, according to traders and analysts. Rising crude prices pose potential challenges, including increased energy, transportation, and manufacturing costs, potentially offsetting recent declines in global inflation. Benchmark Brent crude futures have reached their most bullish levels since October, reflecting tight prompt supply conditions. Tanker diversions due to Red Sea risks, including Yemeni attacks, contribute to market strain. Despite challenges, OPEC+ remains committed to maintaining oil-output cuts amidst global supply concerns. African crude, including Nigerian grades, witnesses heightened demand, impacting both regional and global oil dynamics.

21st February 2024

South Africa Sets May 29 Election Date

President Cyril Ramaphosa announced South Africa's upcoming elections on May 29, signaling a pivotal moment for his ruling party. Facing its most significant opposition since coming to power, the African National Congress confronts issues of unemployment, inequality, and corruption. The vote marks the first opportunity for independent candidates to compete nationally, highlighting a shifting political landscape. Ramaphosa's announcement precedes the annual budget presentation, underscoring the economic challenges shaping the electoral debate. With polls suggesting a potential loss of majority support, the ANC braces for a closely watched electoral contest.

Democratic Republic of Congo PM Resigns

Jean-Michel Sama Lukonde, Prime Minister of the Democratic Republic of Congo, resigned, prompting the dissolution of his government, as announced by the presidency. Lukonde tendered his resignation to President Felix Tshisekedi days after validating his mandate as a national deputy, intending to join parliament. Lukonde, appointed in February 2021, will now focus on coalition-building within the National Assembly after Tshisekedi's reelection in December. This move signals a strategic shift in Congo's political landscape as Tshisekedi navigates coalition dynamics to form his next government.

Ethiopia Considers Selling State-Owned Telecom

Ethiopia's Prime Minister Abiy Ahmed disclosed plans to sell a 10% share of state-owned Ethio Telecom through a local stock exchange launch. The move aims to liberalize the telecoms sector, initially seen as a lucrative opportunity for investors. However, challenges like security issues and regulatory uncertainties have dampened interest. French telecom giant Orange withdrew its bid for a substantial stake last November. Abiy's announcement underscores efforts to bolster the economy through privatization, but details on the board's decision remain undisclosed. The initiative aligns with Ethiopia's aspirations for growth and capital influx.

First Quantum Overhauls Zambian Operations

First Quantum Minerals Ltd (FQM) is restructuring key leadership roles at its Zambian mines to address production and safety challenges, revealed an internal memo obtained by Reuters. The move follows setbacks including the sudden closure of its flagship Panama mine. Meiring Burger and Axel Kottgen have been promoted to bolster operations at the Kansanshi mine, while Anthony Mukutuma will focus on external relations. Despite the turmoil, FQM affirms commitments to Zambian investments. However, challenges persist, with lower copper production recorded in 2023. Fitch ratings have raised concerns over the potential impact on the company's financial standing.

19th February 2024

Twitter to Engage Fired Ghana Staff Over Severance Dispute

Twitter Inc. has agreed to negotiate with terminated employees from its Ghana office after complaints of inadequate severance packages. The move follows requests to adhere to local labor laws, with around 20 employees affected. Lawyer Carla Olympio confirms talks, seeking adherence to Ghanaian redundancy provisions. Elon Musk's recent acquisition led to widespread layoffs globally, with Ghana staff initially offered less than promised severance. The ministry of employment in Ghana has engaged with affected workers. Twitter representatives have yet to comment on the matter.

African Economic Growth Slows Amid Political Instability and External Shocks

The African Development Bank reports a decline in Africa's economic growth to 3.2% in 2023 from 4.1% in 2022, attributing it to political instability and external factors like China's economic slowdown and the Ukraine war. Despite projections for improved growth in most regions except central Africa, the final figure fell below forecasts. The report highlights the challenges facing countries like Nigeria, with devaluation impacting inflation, and Egypt, where inflation and forex shortages dampen growth. South Africa's sluggish performance continues, hindering democratic progress despite upcoming elections.

Ethiopia Inks Deal for Data Mining and AI Infrastructure

 Ethiopia's strategic investment arm has signed a preliminary agreement for infrastructure development in data mining and artificial intelligence training operations. While initial reports suggested a $250 million deal with a subsidiary of Hong Kong's West Data Group, details were later removed. Neither Ethiopian Investment Holdings nor West Data Group commented on the deal. Ethiopia's emergence as a bitcoin mining hub, driven by low power costs, contrasts with China's ban on crypto activities in 2021. With 90% of its power from hydropower, Ethiopia aims to leverage its energy resources for tech development.

Israel’s Offensive in Gaza Condemned at African Union Summit

 Leaders at an African Union summit in Addis Ababa denounced Israel's actions in Gaza, labelling it a "flagrant violation" of international law. Moussa Faki, chair of the African Union Commission, and Palestinian Prime Minister Mohammad Shtayyeh addressed the summit, with Faki affirming solidarity with Palestine. Azali Assoumani, outgoing AU chairperson, praised South Africa's legal action against Israel at the International Court of Justice and condemned what he termed "genocide" by Israel in Palestine. The summit also highlighted concerns over conflicts and coups across Africa.

15th February 2024

Ghana Finance Minister's Departure Raises Investor Concerns

Ken Ofori-Atta's exit as Ghana's Finance Minister has investors wary of potential disruptions to debt restructuring negotiations ahead of the December 2024 elections. President Nana Akufo-Addo appointed Mohammed Amin Adam as the new minister. Economists assure continuity in negotiations, emphasizing institutional processes over individual transitions. Despite concerns, Ghana's economy shows resilience, supported by IMF loans and successful creditor negotiations. Recent talks aimed to finalize a debt restructuring plan, crucial for managing Ghana's substantial liabilities. Reassurances suggest a commitment to stability amidst governance changes.

IMF Debt Constraints Impede Renewable Energy in Africa

 TotalEnergies CEO Patrick Pouyanne highlights a hindrance to renewable energy investments in Africa: inadequate government loan guarantees due to IMF debt constraints. Pouyanne notes challenges in securing payment for electricity projects, limiting his company's ventures mainly to mining projects. Despite TotalEnergies' significant renewable energy portfolio globally, including plans in Africa, Pouyanne emphasizes the need for international financial support to alleviate African states' debt burdens. At an International Energy Agency dialogue, Pouyanne urges equitable financing to spur sustainable energy development in Africa.

Nigeria Plans National Commodity Board Amid Soaring Food Prices

 Nigeria aims to establish a national commodity board to regulate grain prices as food costs drive double-digit inflation, reaching a nearly three-decade high. Vice President Kashim Shettima announced plans for the board to maintain strategic food reserves, addressing escalating inflation. Food prices surged 33.93% in December, prompting short-term measures like fertilizer and grain distribution. President Bola Tinubu's reforms, including scrapping fuel subsidies, haven't yet spurred growth, with security challenges exacerbating food price hikes. The government pledges support for farmers' safety and year-round food production, reviving strategies abandoned in the 1980s.

US SA ties reviewed

US lawmakers John James and Jared Moskowitz have proposed a bill for a bilateral review with South Africa, citing concerns over Pretoria's alleged links to nations compromising US security. Accusations include cooperation with China, Russia, and support for US-designated terrorist groups. South Africa's top diplomat, Naledi Pandor, defends the relationship, emphasizing differing foreign policy views. President Cyril Ramaphosa's spokesperson refutes claims, citing judicial processes and the International Court of Justice ruling. The bill, yet to be debated, follows prior US lawmakers' efforts to relocate trade meetings due to perceived geopolitical alignments.

14th February 2024

Ethiopia Nears Launch of First Stock Exchange

Ethiopia's Capital Market Authority is set to usher in foreign investment banks as it enters the final phase of its inaugural stock exchange launch. Following six months of rigorous development, the regulator will commence issuing investment bank licenses from February 12th, marking a historic milestone. Director-General Brook Taye revealed private companies, including banks, have shown keen interest, with discussions underway with government institutions and foreign banks. With minimum capital requirements set, the country's first comprehensive legal framework for capital market service providers aims to attract both domestic and international investors. Amidst efforts to liberalize the financial sector, Ethiopia anticipates increased competition, aiming to tap into its burgeoning banking sector valued at approximately US$43 billion.

Naira Hits Record Low Against Dollar  

Nigeria's naira plummeted to an all-time low against the dollar, reaching 1,534.39 in the NAFEM window, reflecting a 4.2% drop and marking the lowest level since Bloomberg began tracking. With a more than 60% decrease in dollar trading volumes, pressure intensified on the currency, according to Chapel Hill Denham. The central bank, facing mounting pressure, may consider rate hikes to attract foreign exchange inflows at its upcoming policy meeting. Despite recent reforms aimed at bolstering market liquidity, concerns persist over consistency. At the parallel market, the naira traded stronger at 1,497 per dollar.

Kenya Navigates Risk with High-Interest Bond

Kenya has opted for a daring move, accepting a more than 10% interest rate on a new international bond to avert a potential default later this year, despite the historical risks attached. Amid global interest rate surges, double-digit borrowing costs signal underlying economic instability. Faced with an imminent $2 billion bond payment in June, Kenya seized the opportunity to repurchase most of the bond and issue a new $1.5 billion note due in 2029. Although relief followed the avoidance of default, concerns loom over the high 10.375% effective interest rate. Analysts caution against such rates, citing past defaults among countries facing similar financial pressures.

Senegal Internet Shutdown Amid Election Crisis

Senegal provoked outcry by cutting mobile internet access ahead of a banned protest against the delayed presidential election. The postponement to December has sparked nationwide unrest, with critics condemning it as an attempt to extend President Macky Sall's rule. The move, following deadly clashes, drew condemnation from rights groups and the UN for violating freedom of assembly and expression. Amidst rising tensions, organizers rescheduled the march for Saturday. International pressure mounts on Senegal to hold elections promptly and handle protests with proportionate force, amidst fears of prolonged instability in the normally stable democracy.

6th February 2024

Zambia Eyes Direct Copper Trading

Zambia plans to directly engage in copper trading, competing with major players like Mercuria and Glencore. The move aims to ensure fair and commercially suitable dealings, allowing the government to access a fair share of the resource and make financing available for mines. The government, aims to build its trading business, with legislation ready in the next three to six months. Meanwhile, mining startup KoBold Metals, using AI for exploration, discovers a significant copper deposit in Zambia. The San Francisco Bay Area-based company, backed by Bill Gates, Jeff Bezos, T. Rowe Price, and others, has drilled at its Zambian permit for over a year. KoBold President Josh Goldman notes the potential of the Mingomba deposit, comparing it to the successful Kakula mine in the Democratic Republic of Congo, which produced nearly 400,000 tons of copper last year.

Nigeria Clears Forex Backlog

Nigeria is clearing a backlog of foreign-exchange contracts that have pressured the naira, according to Central Bank Governor Olayemi Cardoso. The recent slump in the naira was due to measures aimed at unifying official and unofficial foreign-exchange markets. The central bank aims to stabilize the currency, with analysts optimistic about recovery as oil output increases and the central bank addresses the FX backlog. Cardoso believes that resolving these issues will attract foreign investors, emphasizing that the naira is undervalued. The backlog of foreign-exchange contracts has been reduced to around $2.2 billion.

South Africa's PGM Industry Mulls Restructuring

South Africa's platinum group metals (PGM) industry is considering restructuring due to rising costs and falling prices, potentially leading to 4,000 to 7,000 job cuts, according to the country’s Minerals Council. The sector, heavily reliant on PGM use in automakers to reduce exhaust emissions, faces uncertainty as the world shifts towards electric vehicles. Electricity and labor costs constitute the majority of PGM miners' total expenses. Falling palladium and platinum prices, down 40% and 15% last year, respectively, contribute to the challenging environment. Major PGM miners, including Anglo American Platinum and Sibanye Stillwater, are reviewing costs and restructuring.

Malawi Raises Benchmark Interest Rate

Malawi's central bank increased its benchmark interest rate by 200 basis points to 26.0%, aiming to counter inflationary pressures and restore price stability. The decision by the Monetary Policy Committee (MPC) comes as inflationary pressures intensify, with the expectation that inflation will persist before declining, according to the Reserve Bank of Malawi.

5th February 2024

Africa's Resources: Global Battle

Western miners face challenges in tapping into Africa's critical raw materials as the continent's reserves gain global attention. While Middle Eastern powers emulate China's investment in Africa, Western firms, constrained by risk aversion and ESG concerns, struggle to advance projects in countries like the Democratic Republic of Congo. Major miners Rio Tinto, BHP Group, and Anglo American, facing shareholder scrutiny, navigate challenges in negotiations with Ivanhoe Mines. Rising costs and competition for critical minerals complicate the search for assets, contrasting with Middle Eastern investors like Saudi Arabia and the UAE, deemed more capable of taking risks.

Namibia's New Leadership

Namibia's new president, Nangolo Mbumba, was sworn in following the death of Hage Geingob, who succumbed to cancer. The 82-year-old Mbumba, previously vice president, will lead until November 2024 when elections are scheduled. In his inaugural address, Mbumba pledged to build on the foundation laid by the country's leaders. Netumbo Nandi-Ndaitwah, likely a presidential contender in November, was sworn in as vice president. Mbumba, an influential figure in the ruling party, has a diverse background including education roles in Namibia and the United States, UN positions, and past ministerial roles, including finance.

Senegal Election Turmoil

Senegal's indefinite postponement of elections following the disqualification of opposition candidates has sparked concerns, with France urging a quick resolution. President Macky Sall's announcement led to a delay in the Feb. 25 polls, citing a dispute between the National Assembly and the Constitutional Council. The political turmoil, a first for Senegal, may impact investor confidence in a fast-growing economy. Critics argue it represents a democratic setback, with fears of a constitutional coup if Sall stays in power beyond his mandate's end in April. Security measures are heightened ahead of planned opposition rallies.

Morocco's Deficit Declines

Morocco's annual trade deficit shrank by 7.3% to MAD 286 billion ($28.6 billion) in 2023, driven by reduced energy imports and increased tourism revenue, reports the foreign exchange regulator. Imports declined 2.5% to MAD 715 billion, while exports rose 0.2% to MAD 429 billion. Factors contributing to the improved deficit included decreased energy imports, lower wheat and ammoniac imports, a 27% surge in automotive sector exports, and record tourism revenue at MAD 104 billion. Remittances from Moroccans abroad also hit a record MAD 115 billion, up 4% from 2022, playing a key role in bolstering hard currency inflow.

31st January 2024

Naira Plunges

Nigeria's naira reaches a historic low of 1,413 against the dollar following the Central Bank's revision of the exchange rate methodology. This marks the second devaluation in seven months, as the bank accuses traders of manipulating rates. The move aims to address fluctuations and challenges in the foreign exchange market, reflecting ongoing efforts to stabilize the currency amidst liquidity issues and external pressures. Analysts suggest the adjustment brings the official rate closer to the parallel market, emphasizing the need for transparency and market accuracy.

Zimbabwe Dollar Plummets

Zimbabwe's currency hits a record low, surpassing 10,160 ZWL per USD, highlighting the nation's economic struggles. The Zimbabwean dollar has depreciated nearly 40% against the US dollar in 2024, making it the world's worst-performing currency. The parallel market rate exceeds official figures, reaching Z$12,000 to Z$14,000. Hyperinflation memories resurface as everyday transactions become complicated. Delta Corp Ltd. shifts to reporting in USD, and IH Securities predicts another year of "severe devaluation." While banks adjust transaction limits, concerns persist over stabilizing the currency and addressing inflation.

IMF Cuts SA Growth
The International Monetary Fund (IMF) has revised down South Africa's economic growth forecast to 1% for this year, attributing the slowdown to logistical challenges affecting the energy sector and transportation. The IMF highlights the need to address disruptions in South Africa's logistics, including ports and freight, as a crucial aspect for recovery. The country's ongoing power cuts and infrastructure issues have hindered economic activity. Additionally, the IMF urges fiscal consolidation, emphasizing the importance of controlling public spending and increasing tax revenues. South Africa's 2025 growth forecast was also revised down from 1.6% to 1.3%.

Sawiris Urges Swift Devaluation

Billionaire Naguib Sawiris criticizes Egypt's delay in devaluing the pound, urging authorities to match the black market rate to resolve the chronic foreign-currency shortage. The pound has recently plunged to 68-70 per dollar on the parallel market, over 50% weaker than the official rate. Sawiris suggests starting with the black market rate, gradually aligning it with the official rate to encourage dollar transactions through official channels. Most analysts anticipate Egypt's fourth devaluation in Q1 2024, but Sawiris emphasizes the need for decisive action to tackle the economic crisis.

30th January 2024

Ghana: Rate Pioneers

The Bank of Ghana has made its first benchmark interest rate cut since 2021, reducing the key rate from 30% to 29%. This move is based on the bank's expectation of continued inflation slowdown while aiming to support the economy. Annual inflation dropped to a 21-month low of 23.2% in December. Governor Ernest Addison emphasized that the disinflation process is expected to continue, with inflation easing to around 13%-17% by the end of 2024. The cautious approach is due to existing inflation risks, requiring adherence to the 2024 budget and a tight monetary policy stance.

South Africa's ANC Suspends Ex-President Zuma Over Election Support

South Africa's ANC has suspended former President Jacob Zuma after he declared he wouldn't vote for the party in upcoming national elections and pledged support for a rival group. The ANC's national executive committee made the decision amid concerns that Zuma's opposition could impact the party's support base. Zuma, facing accusations of tacit consent to state looting during his presidency, recently announced campaigning for the uMkhonto WeSizwe party. The move highlights internal rifts within the ANC, risking challenges as the country prepares for elections later this year.

Dangote Refinery Imports US Crude Amid Global Competition

Nigeria's Dangote refinery, the largest in Africa, is set to import crude from the U.S. for the first time, reflecting the competitiveness of American barrels in the global market. Trafigura Group sold 2 million barrels of WTI Midland to the Dangote refinery for end-February delivery. Nigeria's economy heavily relies on petroleum exports, making the move noteworthy. The 650,000-barrel-a-day refinery, owned by Aliko Dangote, Africa's richest person, recently commenced operations and plans to process domestic and international crudes, including those from the U.S. The decision is likely influenced by the competitive pricing of U.S. oil.

Maroc Telecom Faces $636 Million Fine in Unfair Competition Lawsuit

Morocco's commercial court has ordered Maroc Telecom, the market leader, to pay $636 million to competitor Wana Corporate (Inwi) for unfair competition practices. Maroc Telecom's shares fell 9.99% following the verdict. Inwi accused Maroc Telecom of abusing its dominant market position. The fine exceeds Maroc Telecom's 2022 annual profit. The company has the right to appeal the decision. In 2020, the telecom regulator fined Maroc Telecom for similar practices. Maroc Telecom, 53% controlled by UAE's Etisalat, operates in several African countries, while Inwi is majority controlled by the royal family's holding company Al Mada.