Overview of the African economy as @ 051121
Friday, October 5, 2021 / 3:00 p.m. / United Capital Research / Header image credit: EFE Trends
Anglophone West Africa
- Earlier this week, the chairman of Nigeria Consumer Protection Network, Kunle Olubiyo, expressed in a statement the need for a review of the privatization of the electricity sector. This follows data released by the Federal Ministry of Energy which showed a drop in electricity production from a peak of 4,224.9 MW to 3,844.3 MW.
- The federal government, through the Debt Management Office, on Wednesday announced in a statement its commitment to issue another 200-250 billion naira sovereign sukuk this year. The proceeds of the fundraising will be used to facilitate the financing of essential road projects across the country.
- The International Monetary Fund (IMF) has revealed that the value of mobile transactions in Nigeria has grown by a whopping 283% between 2019 and 2020, largely due to the incursion / era of the COVID-19 pandemic.
- Ghana’s Vice President Mahamudu Bawumia revealed in a speech shared by his office on Wednesday that Ghana expects average economic growth of around 4.6% -2021 against an initially proposed target of 5%.
- Additionally, during a speech to students at Ashesi University, Ghana Vice President Mahamudu Bawumia explained how Ghana plans to increase domestic revenue through a digital tax system that improves compliance.
Francophone West Africa
A statement from the office of the executive director of the Food Industries Export Council revealed a 37% increase in food industries exports from Egypt to Senegal, reaching a record $ 9.6 million in 8 months compared to $ 7 billion previously recorded in 2020.
- According to a statement released by the federal government of Côte d’Ivoire following a recent cabinet meeting on Wednesday, Côte d’Ivoire’s draft budget for 2021 has been revised by 8% from 8.4. billion FCFA to 9.1 billion FCFA.
- Also, its Prime Minister, Patrick Achi, revealed in a press release that the Ivorian government is forecasting an average growth target of 7.5% in 2021.
According to Bloomberg data, the Kenyan shilling depreciated to its lowest level against the dollar, reaching an all-time high thanks to increased demand for dollars, 111.63 Ksh per dollar (-0, 3%).
Finance Minister Mwigulu Nchemba in a statement revealed Tanzania’s plan to increase spending by 7.4 percent to Ksh39,38tn, in its 2022-2023 budget, to enable the Tanzanian government to execute more ‘investments in infrastructure.
Ugandan President Museveni last week called on the East African Leaders’ Summit to come up with a solution to appease the conflict, based on the recent worsening conflict in Ethiopia.
- According to data released by Bloomberg, Ethiopia’s 2024 Eurobonds plunged to a new all-time low, trading cheaper on debt of similar maturity from Zambia (which is in default).
- In a statement, the Ethiopian government declared a nationwide state of emergency, calling on residents to defend the capital at all costs after rebels took key towns on the main road to the city.
- Fitch raised South Africa’s growth forecast to 5.3%, a revised forecast of 100 basis points from 4.3%.
- The rating body revealed that the revised forecast is based on soaring commodity prices, which boosted the outlook for South Africa’s fiscal balance.
- The South African Election Commission has revealed that it has finished garnering 96% of the vote nationwide following a municipal election held earlier in the week.
- Zambia’s finance minister has said plans to refinance a $ 750 million Eurobond that matures in September may fail as restructuring talks with external creditors progress, his finance minister said. Zambia’s finance minister last Sunday announced plans to borrow $ 750 million next year to refinance Eurobonds of the same value maturing in September.
- International Monetary Fund chief Kristalina Georgieva said on Wednesday she was “very optimistic” about reaching a loan deal with Zambia, with Paris Club creditors ready to follow through without delay. Zambia’s request for debt handling in a creditors committee.
- Stanbic Bank and Markit Economics released PMI data for the Zambian private sector for October, the report showed the index rose to 51.2 from 50.3 in September, which is its highest reading since June 2018.
- Zambia announced tax breaks for mining companies, mining royalties will be deductible from income tax. Royalties are currently imposed on a sliding scale of 5.5% to 10%, depending on the price of copper.
- Zambia has once again postponed its first ever electronic population census which was due to start this month until next year. Zambia was due to hold its very first electronic population census in August 2020, but has been pushed back to 2021 due to the Covid-19 pandemic.
- Zimbabwe’s central bank raised its benchmark interest rate from 40% to 60%, due to its attempts to stabilize a falling currency and persistent inflationary pressures. Inflation in October stood at 54.5% against 51.5% the previous month.
- In news related to Covid, the Zimbabwean government has started public vaccination of 16-17 year olds using the Sinovac vaccine.
- The Angolan government for its 2022 budget has forecast a budget surplus of 5.5% Angola forecasts a primary budget surplus of 5.5% of GDP in 2022.
- The previous week, the Angolan government reduced VAT on 28 products from 14% to 7%.
Central Africa (CEMAC & Congo DRC)
- In its recent report on the state of electronic payment in the CEMAC region in 2020, the Bank of Central African States (BEAC) called for tax relaxation to allow the development of the mobile money sector.
- Last week, the Cameroonian public treasury raised FCFA 40.5 billion on the government securities market of the Bank of Central African States (BEAC).
- Cameroon exported 17,842 tonnes of bananas in October 2021, up 7.3% year-on-year, according to figures compiled by the Cameroon Banana Association.
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