Snapshot on African Economy as @ 120321


Friday, March 12, 2021 / 03:00PM / United Capital Research / Header Image Credit: iStock

Proshare Nigeria Pvt. Ltd.

Anglophone West Africa


  • The Ghanaian statistical service released its inflation estimates for February-2021 showing that headline consumer inflation spiked 40bps to 10.3% in February 2021.
  • To plug the deficit in its 2021 budget, Ghana will embark on a roadshow next week to raise $5.0bn in Eurobonds from the international capital markets.
  • The Chamber of Bulk Oil Distributors (CBOD) has revealed that the government lost GHS 1.9bn ($33mn) to petroleum tax evasion in 2019.
  • In a State of the Nations Address (SONA) in parliament on Tuesday, the President of Ghana stated that he expects the GDP growth in 2021 to rebound by 5% y/y. Ghana's growth was estimated at 0.9% in 2020, amid Covid-19 pandemic.
  • The Bank of Ghana yesterday (11/03/2021), in a circular addressed to banks, specialized deposit-taking institutions and the public, reiterated the consequences of issuing dud cheques.



  • The Gambia's Central Bank issued a 91-day, 184-day, and 364-day  treasury bills( Sukuk-Al-Salaam Bills) to investors.



  • The Managing Director of the Nigeria Export-Import Bank (NEXIM Bank), Mr Aba Belllo, stated that the solid minerals sector would increasingly realise the benefits of NEXIM's intervention over the next few years. Nigeria houses an endowment of over 34 solid minerals.
  • In the past week, the National Bureau of Statistics (NBS) released its terms of trade report for FY-2020.
  • The report showed that total trade in merchandise declined by 10.4% in FY-2020.
  • Overall, Nigeria's trade balance closed at a deficit of N7.3bn, its highest deficit since the last recession in 2016.
  • Data from the Nigeria Interbank Settlement System (NIBBS) showed that the volume of transactions carried out on the electronic bill payment platform fell 8.9% m/m to 92,571 in February 2021, from 101,578 in January 2021.
  • United Bank for Africa Plc (UBA) released FY-2020 earnings. Notably, Gross earnings grew by 10.8% to N620.4bn from N559.8bn and Profit after tax rose remarkably by 27.7% y/y to N113.8bn compared to N89.1bn recorded at the end of 2019.
  • However, The Bank paid a final dividend of N0.52 for the year end FY2020, down 35% from N0.80 paid in FY-2019.
  • Ahead of listing, The Nigerian Stock Exchange (NSE) has completed its demutualization process with SEC and CAC's approval.
  • Under the demutualization plan, a new operating holding company, the  Nigerian Exchange Group plc 'NGX Group' would exist as the parent company of the NSE going forward.


Francophone West Africa (WAEMU)

Ivory Coast

  • Ivory coast's ruling party retained its parliamentary majority in elections held last weekend, bolstering President Alassane Ouattara's hold on power five months after securing a third term in the presidential elections.
  • The ruling Rally of Houphouetists for Democracy and Peace Party (RHDP) won 137 out of 247 seats.
  • On a bleak update, the Ivory Coast Prime Minister Hamed Bakayoko died on Wednesday (10/03/2021) in Germany of cancer at age 56.
  • The Ivorian President, Alassane Ouattara had already named his close confidant and chief of staff, Patrick Achi, as interim prime minister, two days before Bakayoko's death.


  • In Senegal, protests have continued for the second week running following the arrest of opposition leader Ousmane Sonko last week.

East Africa



  • The All-Rwanda sub-index inflation rate slowed to 2.2% y/y in February from 3.5% y/y in January - the lowest reading since mid-2019.
  • Rwanda has vaccinated at least 228,854 people countrywide against coronavirus almost a week since it launched the exercise.
  • African Development Bank Provides $1.0mn for Ai-Based National Customer Management Systems in Ghana, Rwanda and Zambia


  • Uganda consumer price inflation ticked higher to 3.8% y/y in February, up 0.1 ppt from January, on rising core and food price inflation.
  • Meanwhile, the energy, fuels and utilities sub-index remained in deflationary territory due to a decline in charcoal price and lower domestic pump price.
  • Uganda's fiscal deficit for January exceeded the budgeted amount by 57.1%, as tax revenues fell, and foreign aid dried up in the period surrounding turbulent elections.
  • More than 300 individuals from different priority groups received the first dose of Covid-19 vaccine as Uganda started the long-awaited vaccination drive.


  • S&P downgraded Kenya's long-term foreign and local currency credit ratings to B from B+ as fiscal and external pressures continue to intensify.
  • In Kenya, private sector activity growth slumped to an 8-month low with PMI dropping to 50.9 points in February from 52.3 points in January as weak cashflow weighed on business and household spending

South Africa


South Africa

  • On Thursday, Manufacturing data for January was released showing that seasonally adjusted manufacturing production rose by a marginal 0.5% m/m but declined 34.0% y/y.
  • We note that last week, manufacturing PMI data for February was released and poses possibility of a decent rebound in manufacturing activities in February.
  • Activities in the mining sector continues to remain soft as mining output fell by 6.2% y/y in January marking the 11th consecutive month of decline in overall industry production.
  • In more economic data, trade data for Q4-2020 showed a decline in current account surplus albeit still one of the largest current account surpluses on record. The current account surplus slipped to R197.8bn in Q4-2020 from R294.4bn in Q3-2020. This translates to 3.7% of South Africa's GDP from 5.9% in Q3-2020.
  • The RMB/BER Business Confidence Index slipped to 35 points in Q1-2020 as sentiments across the core five sectors surveyed deteriorated.
  • South Africa recorded real GDP contraction of -4.1% y/y during Q4-2020 with only three sectors (Agriculture, Personal Services & Government Services), recording higher output in Q4-2020 relative to Q4-2019.



  • Zimbabwe consumer price inflation slowed to 321.6% y/y in Feb-2020 but remains at very distressing levels.
  • The Medicines Control Authority of Zimbabwe (MCAZ) has approved the use of four vaccines in Zimbabwe.
  • MCAZ admonished companies who intend to purchase vaccines to purchase from the registered names. Approved vaccines include Sinopharm and Sinovac from China, Covaxin from India, and Russia's Sputnik V.


  • On Thursday, February inflation data for Mozambique was released as inflation surged to a 3-year high of 5.1% driven by jump in prices of Food, Electricity and Cooking gas.



  • The African Development Bank (AfDB) has approved a grant of $1.0mn for AI-enabled systems to process customer complaints on behalf of the Competition and Consumer Protection Commission of Zambia alongside the national banks of Rwanda and Ghana.


Central Africa (CEMAC & Congo DRC)



  • Cameroon's Trade deficit improved slightly to XAF1,375.0bn compared with the XAF1,464.2bn deficit recorded in 2019, according to the National Institute of Statistics (INS).
  • To reduce import dependence, the government has begun the implementation of an import-substitution policy, which is mapped out in the 2020-2030 National Development Strategy (SND30).
  • According to the Professional Association of Credit Institutions of Cameroon (Apeccam), the volume of loans granted to businesses and individuals increased by 6.7% y/y in 2020, despite the pandemic. Bad debts, however, rose from 15.8% in 2019 to 16.6% in 2020.
  • Cameroon's government has invested XAF10.2bn for the construction of a cotton ginning plant in Gouna, Far North Cameroon to be completed in 2022. The project is expected to create jobs for young women and men and will help gin a substantial part of the country's cotton production surplus.
  • Union Bank of Cameroon revealed that its 2020 accounts saw an overall improvement in its performance with revenue which grew by 9% while deposits rose by a record 18% year-on-year.



  • Since January, the DRC has recorded and liquidated between $13.0mn and $17.0mn in mining royalties per week. The minister also highlighted 2 key projects to increase expected turnover from the mining sector; COMIKA metallurgical plant project in Kambove in Haut-Katanga and KAMOA project in Lualaba
  • Congo is poised to benefit significantly from the surge in metal prices
  • The DRC's Minister of Mines also announced that 1,587,459.3 tons of copper were exported in 2020, and 85,855.6 tons of cobalt.
  • The Biden administration has reversed a sanction waiver against Israeli mining magnate Dan Gertler granted in the last days of the Trump administration. Sanctions.
  • Were initially enforced after a string of illicit transactions that had short-changed the Congo of more than $1.3 billion in revenues from mining sales.



  • The Gabonese government is planning to sell more shares of its c. 49.0% stake in Moov Africa Gabon Telecom.
  • According to reports, the country's parliament has now authorized the state to sell its stakes in Moov, as well as the Gabon Energy and Water Company (SEEG).


Proshare Nigeria Pvt. Ltd. 


Visit African Markets in Proshare MARKETS

Proshare Nigeria Pvt. Ltd.

 Proshare Nigeria Pvt. Ltd.


Related News

1.       Resilience of the Labour Markets During COVID-19 in South Africa

2.      Snapshot on African Economy as @ 260221

3.      Snapshot on African Economy as @ 190221

4.      S and P Joins Fitch in Downgrade of Ethiopia on Potential Debt Restructuring

5.      Snapshots on African Economy

6.      International Financial Centres in the Post-Covid World

7.      Statement by US SEC Acting Chair and Commissioners Regarding Recent Market Volatility

8.     Everything You Need to Know About How a Reddit Group Blew up GameStop's Stock

9.      IMF: SSA Recovery To Trail Global Average

10.  GameStop and Ongoing US Market Volatility - SEC, Analysts React

11.   Federal Reserve Issues FOMC Statement - Jan 2021

12.  SSA Monetary Policy in 2021: Will The Dovish Way Be Sustained?

13.  Passfolio - US Stockbroker Available In Nigeria Launches New Web Platform

14.  SSA's Long and Painful Road to Recovery

15.  Moscow Exchange to Start Trading Options on Natural Gas and Yandex Shares

16.  SSA Currency Market in 2020: Broad Depreciation Across Board

17.   Ranking Global Equity Markets in 2020: NASDAQ Takes The Lead

18.  The Two Sides of Capital Flows into Brazil

19.  A Swift Breeze of Calm as Brexit Deal is Reached

20. Why Pan-Africanism is Important for African Development?


 Proshare Nigeria Pvt. Ltd.

 Proshare Nigeria Pvt. Ltd.

Related News