Snapshot on the African Economy as @ 240921


Friday, September 24, 2021/ 12:25 PM / United Capital Research / Header Image Credit: iStock

Anglophone West Africa


  • Nigeria successfully issued fresh Eurobonds, with the offering attracting bids worth $12.2bn, implying a bid-to-cover ratio of 4.1x, considering an initial offering of $3.0bn.
  • The Debt Management Office (DMO) took advantage of the strong interest to sell $4.0bn worth of Eurobonds ($1.0bn higher than initially planned) with the allotment across tenors printing at: 7-year ($1.25bn at 6.125%), 12-year ($1.50bn at 7.375%) and 30-year ($1.25bn at 8.250%)
  • The Central Bank of Nigeria (CBN) disclosed that the e-naira which is set to be launched on October 1 is a legal tender equal to the value of the naira and thus must be accepted as a form of payment by all merchants and business outlets.
  • According to the Chinese Ambassador to Nigeria, the Chinese government and Chinese banks are exploring the idea of establishing operations in Nigeria to expand trade relations between the two nations.
  • The Nigerian senate has approved the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper with oil price benchmark set at $57.0/b, while a stable exchange rate of N410./$ has been projected.


  • Ghana's GDP grew by 3.9% y/y in Q2-2021, in real terms. This compares favourably to the 3.1% y/y growth recorded in Q1-2021, and the 5.7% y/y contraction recorded in Q2-2020. Growth was driven by the non-oil sector (+5.2% y/y) as the oil sector contracted by 10.8% y/y.
  • Ghana Cocoa Board (COCOBOD) secured a $1.5bn short-term syndicated loan to fund cocoa production and purchases for the 2021/2022 season.
  • The funds were raised from a consortium of 28 local and international banks at a rate of 1.1% plus Libor, with repayments spread out in 7 equal instalments from Feb-2022 to Aug-2022.
  • The Bank of Ghana is expected to maintain a stable Monetary Policy Rate (MPR) of 13.5% for at least the next two and a half years, according to the Institute of Economic Affairs (IEA).

Francophone West Africa


  • According to the Minister of Economy and Planning, Amadou Hott, Senegal's economy is expected to grow by 5.0% y/y in 2021, from 1.5% y/y in 2020 and 4.4% y/y in 2019.

East Africa


  • Kenya and Ethiopia have signed a free trade area agreement, with the goal of boosting cross-border trade and movement of people.
  • Kenya Power has dropped its application to the Energy and Petroleum Regulatory Authority (EPRA) to raise electricity tariffs by up to 20.0%, instead focusing on cost-cutting and reducing system losses.
  • Tullow Oil announced plans to invest KSh340.0bn more in its crude oil development project in Kenya, to develop upstream activities and the pipeline between Turkana and Lamu.
  • According to a report titled "National Study on Digital and Digitally Enabled Work in Kenya" c.5.0% (1,209,506 people) of Kenya's adult population are digital workers, a significant increase from c.3.0% in 2019 (638,400 people).


  • Rwanda has been ranked fourth in investment attractiveness in Africa, from ninth place last year, according to the latest ranking by the Rand Merchant Bank (RMB).
  • Rwanda's cabinet has resolved to progressively ease restrictions on bars, amid a slowdown in Covid-19 cases and improved vaccinations. The cabinet also eased movement restrictions in Rwanda's capital city, Kigali.


  • Tanzania has invested an additional $2.7m in Pan-African housing finance provider, Shelter Afrique, raising its stake by 1.2% to 1.5%. Other key shareholders include Kenya, Nigeria and the African Development Bank (AfDB).


  • According to the Bank of Uganda (BoU), the total amount of money in dormant accounts in Ugandan banks has grown to Sh9.5bn from Sh700.0m in 2014.
  • Gold exporters in Uganda have demanded for the Ugandan government revise taxes downwards. The government had previously imposed levies of 5.0% and 10.0% per kg of refined and unprocessed gold, respectively.
  • Notably, due to tax negotiations, Uganda exported no gold (its biggest dollar earner) in Jul-2021, precipitating a c.51.0% drop in export receipts, to $300.4m compared to $455.4m in Jun-2021 according to BoU.

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Southern Africa

South Africa

  • According to Statistics South Africa (Stats SA), the country's headline inflation rate for Aug-2021 rose to 4.9% y/y from 4.6% y/y in Jul-2021. The annual increase came in higher than the midpoint (4.5%) of the South African Reserve Bank's monetary target range (3.0% -6.0%). for the fourth month in a row.
  • On a monthly basis, inflation eased to 0.4% m/m in Aug-2021, from 1.1% m/m in Jul-2021. Transport was the major contributor to the Consumer Price Index (CPI), increasing by 9.9% y/y and 2.2% m/m.
  • According to the Chief Executive Officer (CEO) of Minerals Councils South Africa, mining companies in the country are considering spending as much as $2.7bn to construct 2,000 megawatts of power generation capacity. The plan was driven by the government's decision to permit the construction of up to 100 megawatts in capacity without generation licenses.
  • According to the transport minister, Fikile Mbalula, the South African government has identified the N2 national wild coast road network as one of its strategic integrated projects to catalyse economic growth at a national, provincial and local level. The project, which is valued at c. R3.5bn will be the highest in Africa.
  • South African Airways resumed local flights and will commence international flights in the coming days. This comes after operations were halted for over a year due to bankruptcy.


  • According to the Ministry of Territory, at least 12.0 million Angolans are expected to be registered for next year's general election. It is projected that the total expense of the electoral process would be c. $194.0m.
  • The Angolan government and the World Bank signed a financing agreement valued at $150.0m for the purchase of Covid-19 vaccines.


  • According to the Finance Minister, Namibia is looking to raise capital for its green hydrogen projects. Though the projects are still being curated with no details on the amount of capital they will raise, the nation is hoping that renewable energy will help stimulate growth.


  • The Bank of Zambia has released a press statement to counter the allegation made against it in some sections of the media. The media suggested that the Bank officials were ordered to withdraw huge amounts of cash from the Bank to distribute to third parties.
  • An Egyptian trade mission comprising of 15 Egyptian countries has visited Zambia with the aim of increasing exports to the African market and better identifying the needs of the Zambian market.


  • According to the Minister of Health and Child Care, Constantino Chiwenga, the government of Zimbabwe has threatened to withdraw the salaries of civil servants who do not take the Covid-19 vaccination before the 15th of October 2021.
  • The Minister of Finance and Economic Development declared at the International Business Conference that Zimbabwe has surpassed the Abuja Declaration target which requires that African countries spend at least 15.0% of their national budgets on the health sector. The country recorded 20.0% of its budget expenditure on health.

Central Africa


  • The World Bank announced that it will disburse $740.0m to Cameroon to aid its development. The funds are expected to support agriculture development projects, secondary school projects, women's initiatives and the Cameroon-Chad Electricity Interconnection.
  • According to the Institut National de la Statistique (INS), Cameroon's aluminium export dwindled by 34.7% y/y to 14,925 tonnes of aluminium in H1-2021 compared to 22,869 tonnes of aluminium in H1-2020. The decline was mostly associated with the waning in the operational activities of ALUCAM, the only steel producer in the CEMAC region.

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