Friday, November 26, 2021/ 03:00PM / United Capital Research /
Header Image Credit: ESI Africa
- The Finance Minister, Zainab Ahmed,
expressed the Federal Government's commitment to subsidise transportation
costs for Nigerians, on the back of its intended N2.4tn cash handouts to
as many as 40 million poor Nigerians, on an individual scale of N5,000 per
- The Nigeria Monetary Policy
Committee (MPC) concluded its November meeting on the 23rd of Nov-2021,
the committee kept all parameters constant. The monetary policy rate (MPR)
was retained at 11.5%, also the asymmetric corridor was maintained around
the MPR at +100/-700bps. Cash Reserve Ratio (CRR) and Retain liquidity
ratio were maintained at 27.5% and 30.0% respectively.
- Also, the Securities Exchange
Commission (SEC) granted MTN Nigeria approval for the sale of
approximately 575.0m of its shares. However, a retail offer with
fixed pricing is due after it secures clearance from the SEC.
- The Central Bank of Ghana through
its Monetary Policy Committee (MPC) raised its benchmark interest rate for
the first time since 2015, on the back of inflation risk. The MPC raised
up by 100bps to 14.5%.Furthermore, Ghana's inflation rate
accelerated to a 15-month high of 11% in Oct-2021, surpassing the Central
Bank's target band of 6% - 10%, for a second straight month.
- In addition, the Monetary Policy
Committee (MPC) that the elevated inflationary risks in Ghana, require
prompt policy action to re-anchor inflation expectations to safeguard the
Central Banks price stability objective.
Francophone West Africa
- In a bid to further strengthen the
diplomatic relations between Iran and Senegal, the Ambassador of the
Republic of Iran met and had talks with the Foreign Minister of Senegal,
Aissata Tall Sall, on Tuesday, on the back of ameliorating bilateral ties
as well as issues of mutual interests.
- In a bid to facilitate successful
operations in Senegal's 2021/2022 Groundnut Season. The International
Islamic Trade Finance Corporation (ITFC) granted 40.0mn Euros for the financing
of Senegal's National Groundnut Company (SONACOS).
- Ivory Coast's inflation rate slowed
from 5.2% y/y in September to 4.5% y/y in October, food and alcoholic beverages
prices grew 8.9% y/y.
- According to Government data, Ivory
Coast's total cocoa arrivals since Oct. 1, amounts to 618,312 tons, in
comparison to 693,375 tons one year ago, a 10.8% y/y decline.
- US pizza chain Papa John's has confirmed
plans to open 60 new outlets in Kenya and Uganda.
- The outlets will be established
under a partnership with AAH Limited-subsidiary Kitchen Express.
- Day Trading at the Nairobi
Securities Exchange (NSE) commenced last week. The roll-out of day trading
at the Nairobi bourse had been confirmed on October 26, 2021, after the
NSE received regulatory approval.
- According to National Planning
Authority (NPA), the Ugandan Government will in the next five years seek
to increase the industrial labour force from the current 7.1% to 10.0%.
- The NPA also said the government
will collaborate with the private sector and development partners towards
increasing the share of manufactured exports from 12.3% to 19.8%. The NPA
also announced its plans to increase the industrial sector contribution to
Uganda's gross domestic product from 27.1% to 28.6%.
- According to the Dar es Salaam Stock
Exchange (DSE) total quarterly equity turnover stood at Sh34.5bn in
Q3-2021 higher than the Sh29.5bn recorded in Q2-2021.
- Tanzania Bankers Association (TBA)
has guided that some banks will start lowering lending interest in the
near future to expand GDP.
- Tanzania Agricultural Development
Bank and the Kilimanjaro Cooperative Bank Limited (KCBL) have penned a
deal to loan Sh2.0bn under the Small-Holder Farmers Credit Guarantee
Scheme (SCGS) to smallholder farmers in the Kilimanjaro Region.
- South Africa's monetary policy
committee (MPC) raised the benchmark interest rate by 25 basis points to
- According to the South Africa
Reserve Bank, South Africa's financial cycle has entered an upward phase
for the first time since 2016, as both equity and house prices have moved
above their trend levels.
- The latest RMB/BER Business
Confidence Index (BCI) remained unchanged in Q4 at 43 index points, with
the likelihood that power cuts and supply chain disruptions will weigh on
the prospects for a recovery.
- Zambia's central bank raised
interest rates by 50 basis points to 9.0% to moderate persistently high
- Zambian President Hakainde Hichilema
met with Congolese counterpart FÃ©lix Tshisekedi to discuss Trade and
Investment, as well as resolve border issues.
- According to the Zimbabwe National Statistics Agency (Zimstat), Consumer Price Index (CPI) stood at 58.4% in Nov-2021. The month-on-month inflation rate declined by 0.6% to close November at 5.8%.
Central Africa (CEMAC & Congo
- After reaching a support agreement
with the International Monetary Fund (IMF). The Cameroonian government is
set to increase its 2022 budget by 5.0% (CFA 272.0bn), from CFA5.5tn to
- Cameroon's Budget deficit for 2022
remains at 2% of GDP as compared to 2.4% in 2021.
- Furthermore, the Central Bank of
Cameroon set an estimated 4.2% GDP growth rate for 2022, as opposed to
3.6% in 2021, which was largely on the back of the Covid-19 pandemic, the
outcome of organizing pan-African soccer tournament and less contraction
in the oil and gas industry.