In the Footsteps of Nigeria, South Africa Reappoints Apex Bank Governor

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Friday, July 12, 2019   / 05:00PM / United Capital Research / Header Image Credit:IOL

 

Earlier this year, President Muhammadu Buhari of Nigeria re-appointed the Central Bank of Nigeria (CBN) governor Godwin Emefiele for another five-year term, following his 2nd term re-election. This singular move made history as Emefiele became the first Nigerian Apex bank governor to get a return ticket since 1999. This week, S/Africa’s President, Cyril Ramphosa, also announced the re-appointment of Lesetja Kganyago as governor of the South African Reserve Bank (SARB) for another five-year term. 

Evidently, these re-appointments send a signal of relative stability in the dynamics of monetary policy of the largest economies in Africa. However, growth in the broader African economy is expected to be constrained by weaker outputs in both economies. The IMF expects aggregate regional growth to improve to 3.5% in 2019 and oscillate around 4.0% over the medium term — or about 5.0%, excluding the two major economies, Nigeria and South Africa. The Nigerian economy remains exposed to the vagaries of the Oil market while South Africa battles issues surrounding public utility and land expropriation.  

The task in the hands of these 'returnees’ hinges on their ability to deploy monetary policy tools to accelerate growth in the face of weaker commodity prices. The Nigerian MPC delivered a 50bps rate cut in Mar19 with the possibility of a further cut later in the year. The SARB, on the other hand, is set to meet next week as market speculations are skewed in favour of a rate cut. In all, the need for a handshake between the fiscal and monetary policy authorities to recalibrate growth cannot be overemphasized. 

 

Top African Stories

Egypt central bank keeps key rates unchanged: Egypt’s central bank on Thursday kept its key interest rates unchanged. The central bank held its overnight deposit rate at 15.75% and its overnight lending rate at 16.75%. Reuters

 

Kenya's NSE kicks off futures trading with most liquid stocks: Kenya’s Nairobi Securities Exchange launched the trading of futures contracts on Thursday, offering investors index futures and single stock futures of the most heavily traded companies on the bourse.  Reuters

 

African Lender Sees Factories Benefiting Most From Trade Pact: Africa’s free-trade pact will help shift the continent away from its over-reliance on volatile commodity exports and boost manufacturing, according to the African Development Bank. Bloomberg

 

Ivory Coast to Keep Cocoa Output In Check Under New Price Plan:  Ivory Coast’s cocoa regulator said it will seek to maintain output of the beans at current levels even as the country and neighboring Ghana plan to boost farmers’ income by raising prices. Bloomberg                                                   

 

Looking Forward

Angola

Jun-19 (CPI) Inflation - July 20th

Policy Rate Decision - July 26th

 

Egypt

May-19 Trade Balance - July 18th

 

Ghana

Policy Rate Decision - July 22nd 

                      

Kenya

Policy Rate Decision - July 24th

Jul-19 (CPI) Inflation - July 31st

 

Morocco

Jun-19 (CPI) Inflation - July 22nd

 

Nigeria

Jun-19 (CPI) Inflation - July 14th

Policy Rate Decision - July 23rd

 

South Africa

Policy Rate Decision - July 18th

Jun-19 Inflation - July 24th

Jun-19 Trade Balance - July 31st

 

Senegal

Q1-19 GDP - July 30th      

 

 

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