Snapshot on the African Economy as @ 090721


Friday, July 09, 2021/ 03:00PM / United Capital Research / Header Image Credit: @cgtnafrica

Anglophone West Africa


  • The House of Representatives has approved the Federal Government's 2021 Supplementary Appropriation Bill, raising the estimates from the proposed N895.8bn to N982.7bn. The House Committee on Appropriations raised the amount by N86.9bn.
  • The Senate has approved the request of the President to borrow N2.34tn to finance part of the 2021 federal budget of N13.0tn. It was also recommended that his request for the issuance of $3.0bn Eurobond in the International Capital Market be approved.
  • Power generation companies declared that Nigeria's available generation capacity plunged from about 9,000MW to 6,000MW, adding that not all the current capacity was being utilized. Figures obtained from the Federal Ministry of Power showed that the highest quantum of power that was utilized in Nigeria was 4,370.7MW.
  • The Vice-President, Prof. Yemi Osinbajo, has said that the leather products industry will generate more than $1.0bn by 2025, thereby creating 700,000 jobs for Nigeria. He also added that that the leather products value chain will afford Nigeria over a 70.0% increase in foreign exchange earnings, a more sustainable infrastructure development plan and guaranteed access to credit facilities for businesspeople.
  • The Federal Government has said that the proposed Funtua, Katsina State Integrated Textile and Garment Park, will create at least 70,000 jobs for Nigerians when it becomes fully operational. Currently, the government has spent N500.0m on the park and it is believed that the project will be completed in 18 months.


  • Ghana is planning to issue green and social bonds worth up to $2.0bn by Nov-2021, which would make it the first African country to sell the debt to fund development programs. The country is planning to borrow up to $5.0bn on international markets this year and would use the proceeds from these sustainable bonds to refinance debt used for social and environmental projects.
  • The lead operator of the Offshore Cape Three Point (OCTP), Eni, has announced a significant oil discovery in Ghana with the potential to produce 700.0m barrels of oil equivalent. This discovery was made on the Eban exploration prospect in Cape Three Point Block 4, offshore Ghana.
  • MTN Ghana has launched a campaign, MTN Business SME Campaign, aimed at accelerating digitization of the informal sector through the lens of Micro, Small and Medium-scale Enterprises (MSMEs) in the country. The initiative would use the power of technology to create awareness of businesses such as retail shops and production hubs through e-payment, business management suites, e-commerce, marketplace, apps, amongst others.
  • The General Council of Trade Union Congress (TUC) of Ghana has urged the government to make good its commitment and pay the pension top-up for those who retired in 2020 without further delay. Those who retired in 2020 under the three-tier pension scheme, Act 766, retired with inferior lump-sum benefits, compared to if they had retired under the old pension scheme-PNDCL 247. The government has agreed to pay a lump-sum top-up which will merely bring them at par with the lump sum they would have received under the old scheme.


  • The President, George Weah, pushed for Foreign Direct Investment (FDI) at the 2nd Annual Liberia Investment and Business Forum. He stated that the country requires considerable FDIs to fulfil its development goals, as articulated in the country's national development plan, known as the Pro-Poor Agenda for Prosperity and Development.
  • President Pro-Tempore of the Liberian Senate, Albert T. Chie, has challenged the National Investment Commission (NIC) and its partners to continuously play a major role in the economic transformation of the Country by aggressively promoting investment opportunities.
  • He further said that the NIC should advocate for and strengthen the domestic private sector, and ensure that the economic and social development objectives of the people of Liberia are achieved by and through a favourable investment environment that guarantees security.
  • The Cummings Africa Foundation has committed $150,000, as its initial contribution to the ongoing fight against the resurgence of the coronavirus in Liberia. The amount doubles the $75,000 the Foundation provided in food and household materials across the country during the lockdown last year, pledging that the Foundation will continue to do what it can in helping the citizenry during these difficult times, and will assist the government in its current response to the pandemic.  

Proshare Nigeria Pvt. Ltd.

Francophone West Africa

Ivory Coast

  • Ivory Coast is returning to international markets for its third bond sale in less than a year, as the global drop in yields pushes investors toward lower-rated debt.
  • The world's largest cocoa producer plans to issue about €1.0bn ($1.2 bn) of securities. It was the first sub-Saharan African sovereign to sell debt after the pandemic hit, raising €1.0bn in Nov-2020, followed by sales of a combined €850.0m in Feb-2021.
  • According to Bloomberg, Members of the exporters' group Gepex processed 35,453 tons of cocoa in June, compared with 45,430 tons of beans processed in the same month last year, a 28.1% y/y drop from the previous year. 


  • According to the National Agency of Statistics and Demography, Senegal's consumer prices rose 2.0% y/y in June.
  • According to the National Agency of Statistics and Demography, Senegal's GDP expanded by 0.9% q/q  in Q1-2021 vs 2.5% q/q in Q4-2020.

East Africa


  • Kenya failed to pen a financial deal for the construction of a railway line linking Jomo Kenyatta International Airport to Nairobi's city centre during President Uhuru Kenyatta's visit to France, hence, delaying the €128.0m (Sh16.3bn) infrastructure plan.
  • The Energy Progress Report for 2021, a product of a partnership between the World Bank and bodies such as the International Energy Agency, says Kenya's electrification pace is now ahead of population growth. The country was ranked as the top country in the world in reducing the population with no access to electricity, pointing to the impact of their focus on rural areas.
  • Kenya's annualized increase in electricity access between 2010-2019 was at 5.6% making them the largest among the top 20 countries in the world with the biggest electricity access. However, the country is yet to start drawing maximum socio-economic benefits from the increased electrification.


  • The Government of Uganda has released Shs21.4bn for recapitalisation of Uganda Development Bank. The bank continues to be a key driver towards the recovery of the economy through import substitution and financing key sectors of the economy. A provision of Shs50.0bn to support wealth creation efforts in Emyooga was also made available in the Shs5.67tn Q1 allocations.
  • Uganda's Purchasing Manager Index (PMI) dropped from 56.5 points in May-2021 to 34.9 points in Jun-2021 due to lockdown measures, the lowest condition for the first time in five months, which was below the average of 52.8 points.


  • The Tanzanian government plans to introduce a special department for business, investment, and industrial development in all 185 district councils, which will enable regional business officers countrywide to have access to manage businesses and investment in the country.
  • The Ministry of Water issued five directives to water authorities to end water woes across the country. The directive includes a month's ultimatum to identify those illegally connected to water networks because they sabotage revenue collection. Others are introducing prepaid meters for water services, charging actual costs of water connections, and improving customer care.


  • The African Union (AU) chose Rwanda as the continental headquarters for the African e-trade Group. The group is a social entrepreneurship initiative with the primary aim of providing a comprehensive e-commerce platform to enhance the role of Africa's SMEs in inter and intra-African trade. This development will facilitate supporting 600,000 SMEs in Africa over the next five years.
  • The IMF has agreed to a one-year extension of the Policy Coordination Instrument (PCI) for Rwanda to continue to support ongoing reforms and policies.
  • The current account deficit improved by 25.9% q/q in Q1 2021 to reach a deficit of $198.2m. On an annual basis, the deficit narrowed by 51.1% y/y from a deficit of $405.3m reported in Q1 2020.



Southern Africa

South Africa

  • New vehicle sales in South Africa fell marginally by 0.8% m/m in June to 38,030 units. On aggregate, sales are up by 40.2% y/y in H1-2021 when compared to H1-2020, but down by 11.7% when weighed up against sales made during the same period in H1-2019.
  • Statistics South Africa has published its latest report on liquidations and insolvencies. The data shows that the total number of liquidations recorded decreased by 2.1% in 2021 compared with 2020, with a total of 191 liquidations reported.
  • Dubai-based DP World to buy South Africa's Imperial Logistics for $890.0m.
  • Crypto Valley Venture Capital (CV VC), a Swiss investment company, which has been successfully investing in early-stage startups from around the world, is now opening its first office on the African continent in Cape Town.
  • Boxlight Corporation, a leading provider of interactive technology digital signage, and software solutions has announced that the Cape Business Centre (Cape Town, Johannesburg, SA) has implemented interactive touchscreen displays by Clevertouch Technologies.


  • Bank of Angola raised policy rates by 450bps to 20.0% as the central bank fears that overall inflation will not subside due to persistently high food prices.
  • The Economic Commission of the Council of Ministers approved a plan to improve the business environment in Angola. This plan consists of a list of key activities, to be carried out until April 2022, which aims to improve the country's position in the Doing Business ranking, published by the World Bank. Angola has accumulated around $1.0bn in debt to Western oil companies operating its oilfields, with the bill prompting the country's recently launched sale of stakes in its flagship offshore blocks.


Larger import bills, due to high demand, high fuel prices, exposed weaknesses in Namibia's export as the current account deficit slumps to the biggest deficit since Q4-2016. Credit extension growth and other high-frequency economic indicators of Namibia have remained lacklustre in the first five months of 2021, dimming the growth outlook for the rest of the year.


  •  Zambia's inflation jumped to a 19-year high of 24.6% y/y, up from 23.3% y/y recorded in May. This came as food price inflation surged by 31.2% and non-food price growth steadied at 17.1%
  • The first release Q1 GDP figures suggest that Zambia has remained on a feeble recovery track. A myriad of growth challenges remains, but strong agricultural sector performance presents a bright spot.
  • Qatar Airways says it would commence flights into Zambia early next month. Improved flight connectivity is expected to boost tourism operations as well as facilitate an improvement in trade and investment in the country


  • Zimbabwe's Consumer Price Index (CPI) inflation rose from 2.5% m/m in May to 3.9% m/m in June. However, on an annual basis, inflation dropped by 55.3ppts to reach 106.6% in June.
  • Zimbabwe reverts to 2020 lockdown measures as Covid-19 cases are on the rise. Curfew has been extended from 6.30 pm to 6 am, business hours cut to between 8 am and 3.30 pm, 60.0s% of staff to work from home and all intercity passenger traffic banned. Stiffer penalties will be imposed for violations of COVID-19 restrictions, including the withdrawal of business operating licenses.



Central Africa


  • According to figures from the review report of the economic and financial planning document submitted to the National assembly, the Cameroonian government is planning to increase its tax-to-GDP ratio from 11.8% in 2021 to 12.5% in 2022 and 13.55% in 2024.
  • Data from the Bank of Central African States (BEAC) showed that the volume of interbank operations dropped by 25.0% m/m in Dec-2020 to XAF92.3bn, compared with XAF115.4bn in Nov-2020.
  • The decline in the volume of interbank operations was driven by increasing banks' dependence on weekly liquidity injection operations by the BEAC.
  • At the end of May-2021, ENEO, Cameroon's electricity utility company, had a total debt portfolio of XAF207.0bn. Furthermore, the published figures showed state companies and institutions were the biggest debtors to ENEO with debt totalling XAF163.1bn.
  • Mobile operator Orange Cameroon announced it controls 70.0% of the market share on the Mobile Money segment with estimated monthly cumulative transactions of CFA800.0bn in 2021. This makes a total of CFA9.6tn for the year, or twice Cameroon's state budget in FY-2021.

Proshare Nigeria Pvt. Ltd.

Visit African Markets in Proshare MARKETS

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.



 Related News

1.      Deutsche Bank Launches Indexes to Track 21 Emerging Market Currencies

2.     Snapshot on the African Economy as @ 020721

3.     Kenya Raises $1bn in Oversubscribed Eurobond Sale

4.     Snapshot on the African Economy as @ 250621

5.     Kenya Raises $1bn in Oversubscribed Eurobond Sale

6.     Kenya Raises $1bn in Oversubscribed Eurobond Sale

7.     Federal Reserve Issues FOMC Statement and Implementation Note From Its June 2021 Meeting

8.     US Inflation Surges to 13-Year High of 5%

9.     Snapshot on the African Economy as @ 110621

10.  Snapshot on the African Economy as @ 040621

11.   Snapshot on the African Economy as @ 280521

12.  NBA Forms New Africa Entity and Partners with Strategic Investors

13.  Africa Day: Nigeria's ASI Dips by 4.83% Year-to-Date as Zimbabwe's ASI Sprints by 104.03%

14.  Snapshot on the African Economy as @ 210521

15.  The UBA Africa Conversations 2021: Africa to the World

16.  Snapshot of the African Economy as @ 140521

17.  Snapshot on African Economy as @ 070521

18.  Federal Reserve Board Issues May 2021 Financial Stability Report

19.  Snapshot on African Economy as @ 300421

20. Federal Reserve Issues FOMC Statement and Implementation Note From Its April 2021 Meeting


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

 Proshare Nigeria Pvt. Ltd.

 Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News