Friday, May 31,
2019 / 4:00PM / United Capital Research / Header Image
South Africa’s President - Cyril Ramphosa recently announced the list of his cabinet members-50% of which were women and youth. This came three weeks after his re-election on the 8th of May 2019, as the government prepares to bolster growth in the country’s economy over the next 5 years.
Worried about faltering economic momentum, energy sector crisis, high unemployment rate, a wide income inequality, and rising debt burden, the IMF is projecting growth at 1.3% in 2019. Thus, a swift appointment of cabinet members by the S/African President is a move to hit the ground running while hastening the implementation of the badly needed reforms required to salvage the ailing economy.
Juxtaposing the above with his Nigerian counterpart, a swift cabinet formation by the S/African President is a sharp contrast to a perceived delay in the announcement of his cabinet member by Nigerian President, who opted to postpone his inauguration speech, to June 12th, 2019.
With economic challenges in both the S/African and Nigerian economy showing signs of similarities, hitting the ground running with its policy programs & cabinet appointments would be a low hanging fruit for the Nigerian authorities to boost Growth in the Sub-Sahara Africa economy (alongside S/Africa) which continued to underperform since 2016 amid weaker growth in the two largest economies in the region.
Top African Stories
• Rwanda's bank of Kigali in talks to buy local insurance company Sonarwa - bank CFO: Bank of Kigali, Rwanda’s biggest lender by assets, is in talks to buy local insurance company Sonarwa, the bank’s chief financial officer said. Reuters
• Total to hold talks with Algeria over Anadarko assets: Total will meet Algerian authorities for talks over its plans to buy Anadarko’s assets in the country and is not worried by media reports that Algiers would block the deal, Chief Executive Patrick Pouyanne said on Wednesday. Reuters
• Egypt's M2 money supply growth slows to 11.33% y-o-y in April -c.bank: Egypt’s M2 money supply growth slowed in April to an annual 11.33% from 11.39% in March, data from the central bank showed on Thursday. Reuters
• World Bank approves $750 mln loan for budgetary support to Kenya: World Bank has approved a $750 million loan for budgetary support to Kenya, notably in agriculture and housing, the bank said in a statement. Reuters
• Room for Kenya to borrow has shrunk, it needs to fix this – Central bank chief discusses: Kenya’s headroom for new borrowing has shrunk since it tapped the Eurobond market this month and it is time for the country to begin reorganising its debt, central bank governor Patrick Njoroge said on Tuesday. CNBC
Q1-19 GDP QoQ/ YoY– June 4th/5th
May-19 (CPI) Inflation - June 3rd - June 10th