Snapshot on the African Economy as @ 020721


Friday, July 02, 2021/ 04:00PM / United Capital Research / Header Image Credit: iStock

Anglophone West Africa


  • The presidency has revealed that Nigeria is set to utilise the country's legal provisions that empower the Federal Government to collect taxes on profits made in the country by global technology and digital firms not based in the country but with significant local economic presence (e.g., Twitter, Facebook, Google, Netflix).
  • The Senate has passed the Petroleum Industry Bill (PIB) through its third reading amidst severe opposition to some of the bill's provisions. 
  • The Senate approved N329.96bn as statutory budget for the Federal Capital Territory for the year 2021.
  • The Federal Government disclosed that electricity subsidy gulps N30.0bn per month as against N50.0bn it was spending as of Feb-2021. It has been reduced by N20.0bn monthly following improvements in the collection of power tariffs by distribution companies.
  • At June's NT-bills auction, investors continued to show huge interest in government papers as the auction was oversubscribed with a bid-cover ratio of 5.5x. Consequently, the CBN was able to oversell the auction, particularly on the 364-day. Overall, stop rate on the 364-day bill fell 25bps to close at 9.15%. On the 91-day bill, it inched higher by 50bps to 2.0% while stop rate on the 182-day bill closed flat at 3.5%.
  • Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian Export-Import Bank (NEXIM) have deployed $40.0m Women in Oil and Gas Intervention Fund for qualified women entrepreneurs in the Nigerian Oil and Gas Industry.
  • NCDMB and NEXIM are contributing $20.0m each to the pool, to be converted at the prevailing exchange rate. The target beneficiaries are firms where women hold majority shareholding of 51.0% or where at least 50.0% of management are women or where the Chief Executive Officers and at least 40.0% of management are women.
  • The Federal Government disclosed that building sustainable food systems is one of the key strategies it is exploring to eliminate poverty across the country.


  • GCB Bank, Ghana's largest bank disclosed that it has advanced in excess of GH¢156.1m in personal loans to over 9,000 customers. The move forms part of measures to ameliorate the sufferings of its customers from the ravaging effects of the COVID-19 pandemic.
  • The International Telecommunications Union (ITU) has rated Ghana number three in Africa on its Global Cybersecurity Index (GCI). Ghana scored 86.7% for secure cyberspace and comes behind Mauritius and Tanzania in that order. The current assessment covers the 2019-2020 period and reflects data collected during the COVID-19 pandemic.
  • Furthermore, Ghana's new ranking in Africa is a major leap from the 11th position attained in the previous rating with 32.6% in 2017 and 43.7% in 2018, projecting the country among the best in the region and globally.
  • The Institute of Directors-Ghana (IoD-Gh) has commended the Bank of Ghana (BoG) for taking significant steps to promote good corporate governance in the country. Going forward, the institute seeks mutually beneficial relationships with the bank and indicated that the development of a national governance code was another key strategic project to be undertaken.


  • The World Bank Board has approved the second in a series of three single-tranche Inclusive Growth Development Policy Operations (IGDPO) to support key reforms for enabling inclusive growth in Liberia.
  • The House of Representatives has ratified two financing agreements in the tone of US$42.5 million between Liberia and the International Development Association (IDA). The first agreement, in the total amount of US$8.5 million, is entitled the 'Recovery of Economic Activity for the Liberia Informal Sector Employment Project', and it is primarily meant to increase access to income earning opportunities for the vulnerable in the informal sector in response to the COVID-19 crisis in Liberia.
  • Central Bank of Liberia is living up to its billing as the People's Bank by extending membership of Monetary Policy Committee to Individuals from Private Sector and Academia.
  • KanaCash, a Librerian-owned mobile transfer, launches Liberian-owned mobile app and web remittance service.

Francophone West Africa

Ivory Coast

  • Ivory Coast sold CFA24.0bn and CFA27.0bn across the 90-day and 181-day bills in the past week.  The bid-cover ratio for the 91-day and 181-day papers closed at 1.1x and 1.6x in 2021 while stop rates for the paper closed at 2.5% and 2.6% for the 90-day and 181-day, respectively.
  • Ivory Coast's cocoa regulator, Le Conseil du Cafe-Cacao, will allow exporters to compete for deliveries due in the second quarter.  


  • Mali republic plans to sell bonds due to mature in Jul-2026 in an auction scheduled for Jul 14.
  • Mali's budget forecasts a 5.3% average annual economic growth for 2022-2024.
  • Fireefinch raised $35.7m through the sale of 117.0m new shares. The proceeds will provide the miner with funds to fast track annual production growth at its Morila gold mine to reach 200,000 gold ounces by 2024.


In the past week, Senegal's Minister of Finance disclosed that the country collected CFA17.0bn for its H1 fiscal year, exceeding its target by 1.4%.

East Africa


  • The Kenyan president announced that the country will receive the first batch of 13 million vaccines from pharmaceutical company Johnson and Johnson in August. Notably, only c. 1.0m of c. 47.0m have received a first shot of COVID-19 vaccines, with 300,000 fully vaccinated.
  • The World Bank also approved $130.0m for vaccine procurement, storage and deployment Kenya's COVID-19 Health Emergency Response Project in an effort to boost access to vaccines for the East African country. To date, the World Bank has contributed $246.0m to Kenya's Covid-19 response.
  • According to the Central Bank of Kenya (CBK), Kenya's trade deficit for Jan-2021 - Apr-2021 expanded 29.7% to Sh420.0bn as imports grew by 22.5% to Sh669.4bn, driven by commercial goods (c. 97.0% of imports).
  • Inflation in Kenya increased to a 16-month high of 6.3% y/y in June-2021, from 5.9% y/y in May, amid rising food and energy costs, according to Kenya National Bureau of Statistics (KNBS).


The International Monetary Fund (IMF) approved a 3-year Extended Credit Facility to Uganda to support economic recovery in the country.



  • Tanzania has banned flights to and from the countries affected by the Covid-19 pandemic as a means to contain the disease.
  • According to President Samia Suluhu, the Tanzanian government is finalizing the process towards ratification of the Africa Continental Free Trade Agreement (AfCFTA).


  • Rwanda is experiencing a resurgence of Covid-19 infections, which has forced the government to re-introduce restrictions. On June 23rd, Rwanda recorded 964 new cases, the most since the onset of the pandemic.
  • Rwanda and the Democratic Republic of the Congo have signed three significant bilateral agreements - an investment treaty, a double taxation avoidance agreement, and an MoU on a mining concession.

Southern Africa

South Africa

  • According to Statistics South Africa, electricity production in SA rose by 12.1% in May, against 25.6% in April.  Electricity consumption rose by 12.2% y/y in May 2021 vs 25.7% in April.
  • Absa Bank has released its Purchasing Managers Index (PMI) estimates for the last month, showing PMI declined to 57.4 from 57.8 in the previous month.
  • According to the Public Enterprises Minister, South African power utility Eskom has reduced its debt to less than R400.0bn as discussions around funding for a transition to renewable energy begin.
  • According to the South African Reserve Bank, broad money supply (M3) rose 1.8% y/y in May vs 2.0% in April.
  • According to Statistics South Africa's, non-farm jobs fell 0.1% q/q in Q1-2021 vs +0.9% in Q4-2020. On a y/y basis, non-farm employment in Q1-2021 fell by 5.5% y/y.
  • South Africa plans to sell R10.7bn across three tenors, the 91-day, 182-day, 273-day and 364-day papers.


  • SODIAM, the public company responsible for selling Angola's diamonds, raised $56.6m from an auction of special stones from four of its mines.
  • Also, in the last week, Angolan state-owned company Sonangol granted Vitol and Totsa Total oil trading 12-month contracts to supply diesel to the country.


  • According to its Central bank, Namibia's current account deficit widened to N$4.0bn in Q1-2021 from N$0.5bn in the previous quarter.
  • Exports fell by 42.4% q/q to N$9.0bn, and imports fell by 9.7% q/q to N$17.3bn. Outflows in the financial account were N$3.7bn in Q1-2021 compared to an outflow of N$1.1bn in Q4-2020.
  • Namibia's M2 money supply fell 1.3% y/y in May.
  • Namibia sold N$1.1bn each across 273-day, 364-day papers. The bid-cover ratio closed at 1.3x and 1.8x for the 273-day and 364-day papers. 


Zambia sold Kwh1.1bn across tenor tenors I the past week, stop rates for the bills closed at 14.0%, 16.0%, 18% and 25.5.% for the 91-day,182-day, 273-day and 364-day papers.


  • Zimbabwe's Central Bank maintained its benchmark interest rate at 40.0% at its June meeting.
  • For the month of June, Zimbabwe CPI rose to 106.5% y/y. m/m inflation was estimated at 3.8% for June.
  • China's biggest bank, the Industrial and Commercial Bank of China, has dumped plans to finance a $3.0bn coal-fired 2,800 MW power plant in Zimbabwe, following increasing pressure from stakeholders regarding climate change. The news comes as a blow to coal developers in Africa, as China has remained one of the major financiers of fossil fuel projects.


Central Africa


  • The Finance minister of Cameroon, Louis Paul Motaze, announced the successful issuance of its euro-denominated Eurobonds. Cameroon raised the sum of XAF450.0bn at an interest rate of 5.95% with a tenor of 11 years. Interestingly, investors' interest in the issue was strong, as bid-cover ratio printed at 3.2x. According to the minister, the proceeds will be used to pay down current expensive Eurobond running at 9.5% interest.
  • The President of Cameroon has ratified the Stepping Stone Agreement towards a Bilateral Economic Partnership Agreement between Cameroon and United Kingdom. When fully operational, Cameroon will get preferential access (duty-free and quota-free) to the British market for Cameroonian products while the UK will be able to export 80.0% of its products to the Cameroonian market duty-free.
  • According to data sourced from national accounts published by National Institute of Statistics (INS), overall investments in Q4-2020 fell 7.9% y/y, following a 13.6% y/y growth in the prior quarter.
  • The African Development Bank (AfDB) approved the regional project for the development of the CEMAC financial sector with a US$3.6m (close to XAF2.0bn) institutional support. This project is part of the second pillar of the Monetary policy and Finance component of Pref-CEMAC, an economic and financial reform program for CEMAC countries.

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