Friday, February 26, 2021/ 04:00PM / United
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- Ghana's government sold GH3.0bn
for 2-year bond at a coupon rate of 19.3% due to an increase in foreign
investors within the market. The government rejected GH700m of bids tendered.
The amount raised will act as a buffer for the government ahead of upcoming
maturities next month.
- Ghana T-bills were oversubscribed by 96.0% as
rates of treasury bills fell on the premise of the government reducing its
borrowing. This spurred investor interest in government's short-term
securities, particularly 3- month T-Bills
- Ghana became the first country to receive vaccines
through World Health Organisation's COVAX Program. The COVID-19 vaccine arrived
in Accra on Wednesday 24th February 2021.
- Ghana owes IMF, World bank and others a total of
$7.9bn in multilateral debt, this is an increase of 1.5% compared to the $7.8bn
recorded in Q2- 2020. The increase in borrowing is attributed to the global
- Nigeria exits recession with 0.1%
y/y growth in Q4-2020, the Service sector contributed 54.3% to the GDP in Q4
2020, followed by Agriculture, which contributed 227.0%, and Industry with
- According to the NNPC, Nigeria is
currently losing an average of 200,000 barrels of crude oil daily to theft and
- According to the National
Assembly, the newly built Oil Refinery by Dangote Group will strengthen the
Naira and support economic growth.
- Senegal has
begun vaccinating its citizens with the doses of the Sinopharm vaccine it
bought from China earlier in the year. Government ministers and health workers
were the first to receive jabs, as the country plans to inoculate around 90% of
a targeted 3.6 million people. Senegal has a population of 16 miilion.
- Reports suggest
Senegal is in negotiations with Russia for its Sputnik V Vaccine after paying
$3.7mn (more than CFA2.0mn) to China for the Sinopharm vaccine.
- The European
Union envisages providing around â‚¬1bn over six years to aid Ivory Coast's cocoa
sector as it adapts to EU supply chain laws due to be introduced later this
year. If the laws are adopted, buyers would be required to trace their inputs
through every step of their supply chains, including starting at the level of
small farms. The West African country hopes the EU's laws will help protect
forests, curb child labour and end farmer poverty.
- Ivory Coast has
launched a new commodities exchange, and it would commence operations next
month by listing raw cashew nuts, kola nuts and corn, its chief executive said
week, Tanzania's President finally admitted the country has a Covid19 problem
and has urged citizens to take measures to prevent contracting the virus.
comes after several months of claiming the virus has been defeated by prayers
and declaring the country Covid-19 free.
death of the Vice President of the Zanzibar as well as widespread reporting of
citizens down with breathing difficulties may have forced the change of mind
for the President.
- According to Knight Frank's 2021
Wealth Report, the number of dollar millionaires in Kenya fell 22.0% y/y to
3,323 people in 2020 from 4,235 in 2019.
- The report cited the tougher
economic environment in 2020 occasioned by the outbreak of coronavirus had
impacted the business and wealth of Kenya's millionaires.
- At the upcoming East African
Summit, Kenya, Tanzania, and Uganda would seek to resolve the ongoing trade
wars between them. However, Uganda has threatened to sue the two countries in
the event of failure to reach an amicable solution.
- In Uganda, Opposition leader, Robert Kyagulanyi
(popularly known as Bobi Wine) has withdrawn the case filed with the Supreme
court challenging the results of the January elections. He cited the court's
bias as a reason for the withdrawal.
- In macro-related news, Uganda's fiscal deficit
ballooned to a decade record as the country's foreign borrowings surged.
- Also, economic activities picked up in December
2020 as the Index of Real Economic Activity Growth (CIREA) printed a 6.7% y/y
growth, similar to the pre-pandemic level of 7.1% in January 2020. Real
economic activity has now converged back to long term path following the 2020
Covid-19 induced decline.
- Following the conclusion of the
IMF's staff visit to Ethiopia, the body's end-of-mission statement adjusted
targets under the Extended Credit Facility (ECF) and Extended Fund Facility
(EFF) to account for the impact of the pandemic.
- In addition, Ethiopian
authorities requested for debt treatment under G20 common framework in bid to
bid to reprofile debt service obligations, thereby lowering the risk of debt
- Following the first interest rate
cut by monetary authorities in April 2020, they voted to keep the benchmark
interest rate at 4.5% in the first meeting of 2021.
- Despite loosening pandemic-related
restrictions, unemployment in South Africa worsened in Q4-2020.
- Data from Stats SA revealed that
the country's official unemployment rate rose by 1.7% from Q3-2020 to a record
high of 32.5% in Q4-2020.
- The SA Reserve Bank reversed
initial guidance against dividend payment by banks, instructs banks to now pay
- Banks held back on paying
dividends after having declared them due to the apex bank's initial guidance in
April-2020 advising them against paying dividends and cash bonuses due to the
anticipated impact of Covid-19 on the banking system.
- Finance Minister Tito Mboweni's
delivered the 2021 Budget Speech. Notably, total spending is expected at
R6.16tn over the next 3 years or (c. 2.0tn each year), with the bulk of spend
tabled for social services.
- Also, budget deficit was revised
to 14.0% of GDP and Gross debt has increased from 65.6% to 80.3% of GDP.
Notably, the Government has set aside R19.3bn for vaccines.
- Markets rallied after the Finance
Minister Tito Mboweni's budget speech with the rand strengthening to R14.40/$
from R14.55/$, while average bond yields fell.
- Headline inflation for Feb-2021 climbed to 22.2% in Zambia, marking the sixth consecutive period of rising inflation.
- Food prices in Zambia (+27.3%) rose the fastest in over a decade, according to the data from the Zambia Statistics Agency.
- Zambia's trade surplus for Jan-2021 expanded to K9.2bn, from K6.5bn in Dec-2020. Exports (+5.4%) widened to K17.5bn while imports (-18.8%) contracted to K8.2bn.
- Zambia's mining sector performed better than expected in 2020. The country recorded an increase in Copper production as 8 large-scale mining companies recorded an uptick in production.
- Fortunately for Zambia, copper prices have witnessed an upsurge recently.
- According to the Reserve Bank of
Zimbabwe (RBZ) Governor, John Mangudya, Zimbabwe's banking system has resolved
to settle funds allocated at the FX auction system within two weeks.
- The system reportedly developed
glitches in Q4-2020 resulting in waiting times of over 2 weeks for exporters to
- The RBZ reported a 417.0% jump in
Real Gross Settlement System (RTGS) transaction value to $1.6tn and a 16.0%
increase in volume to 10.7mn by Dec-2020
- Zimbabwe's Finance and Economic
Development Minister, Professor Mthuli Ncube announced the appointment of five
new members to the Monetary Policy Committee (MPC) of the RBZ.
Africa (CEMAC & Congo DRC)
- Gabon's economic minister has
assured investors the country would be able to fulfil its debt obligations.
- Gabon is also considering
restructuring its debt portfolio after crude oil prices slumped in 2020. Crude
oil accounts for 80% of Gabon's export revenue.
- In the last week, China has
confirmed it would deliver over 100,000 doses of the COVID vaccine to Gabon;
details emerged after a meeting between the Minister of Health for Gabon and
the Chinese Ambassador to Gabon.
- Gabon is currently experiencing a
second wave of Covid-19 infections. On Monday, pandemic figures indicated that
there are now 1,247 active COVID-19 cases in the country, including 77
hospitalisations and 76 deaths so far.
- The National Institute of
Statistics recently published its note on the industrial producer price index for
Q3-2020. The report showed that prices rose 0.7% from Q2-2020. The price
increase recorded in the furniture manufacturing industries (+4.3%),
woodworking, and wood products manufacturing industries (+3.0%), mining and
quarrying industries (+1.7%) and environmental industries (+1.3%) was offset by
the sharp decline recorded in the refinery sector (-11.7%).
- According to an official release
published by the Directorate General of the Treasury, the Cameroonian public
treasury plans to raise XAF225 billion on the BEAC public securities market via
the issuance of long-term securities in H1-2021. The Cameroonian public
treasury plans to raise these funds through a series of 5 to 10-year maturity
- The DRC found itself on the
frontpages, as diplomatic disaster struck when the Italian ambassador to the
country was killed after an attack on a UN envoy, Luca Attanasio.
- According to reports, Luca
Attanasio and two others died in an attempted kidnapping in the north of Goma
in eastern DRC.
- DRC will launch a public tender
for 19 onshore exploration blocks at the end of 2021 to boost exploration
activities throughout the country.
- The new Petroleum Code was
enacted in 2015 to aggressively transform the countryâ€™s energy sector by
providing clear and attractive policies for foreign investment and is set to
increase energy developments and associated economic growth dramatically.
- The World Bank has approved a
$250mn loan to improve operational performance and increase electricity access
in selected cities in Angola.
- Following the $250mn loan
facility by the World Bank, the Angolan government has also announced the
country's plans to raise its sub-40% electrification rate by 2025.
- The Angola General Tax
administration collected around AKZ4.39bn in property tax.
- Angolan crowdfunding startup Deya
has secured its first round of preseed financing of more than US$50,000 to help
it further develop its platform and start generating revenue.
- According to the Minister of
Water, Irrigation & Energy, the Grand Ethiopian Renaissance Dam (GERD) has
reached a 78.3% completion level and is expected to reach 82.0% before the
upcoming rainy season. He further stated that the country is very keen to
complete the project by 2023.
- According to observers in
Ethiopia, general elections is expected to hold in June 2021 after a protracted
period of postponement due to Covid19.
- Following weeks of protest from
conservative activists against anticipated government legislature, the Angolan
government has passed legislation allowing oil & gas and mining licenses in
14 national conservation areas. Angola, the second-largest oil producer in
Africa, has been lauded in the past for its biodiversity.
- In the last week on the visit to
areas along the Lobito Corridor, the acting Dutch ambassador to Angola stated
that the Netherlands plans to import avocados and lemons from Angola and export
to the other European countries.
- According to Stats SA, Headline
Inflation quickened marginally to 3.2% in Jan-2021 from 3.1% in Dec-2020.
Consumer Inflation accelerated in January amid higher food prices and service
- Data from Stats SA also revealed
that retail sales contracted by -6.9% in 2020. Notably, this is the worst y/y
decline on record and the first decline since the global financial crisis,
which saw sales contract by -3.2%.
- However, employment numbers
bounced-back in Q4-2020 with 2.1million people getting jobs after the
2.8million job losses recorded in July, according to a Nids-Cram survey.
- Zambia's Monetary Policy
Committee hiked the benchmark interest rate by 50bps to 8.5% from 8.0% in the
face of increasing inflationary pressures.
- The Bank of Zambia Governor
(BOZ), Christopher Mvunga, said that the Central Bank would continue to
purchase more gold deposits to boost its reserves.
- The Governor also reported that
Zambia had scaled down, deferred, and scrapped several projects to minimize the
country's debt exposure in the light of debt relief negotiations with the
International Monetary Fund.
- Zimbabwe's Monetary Policy
Committee hiked the benchmark policy rate to 40.0%, to reduce excess liquidity
and control FX market speculation.
- The Central Bank reiterated its
aim of keeping inflation below 10% in 2021 and its GDP growth forecast of 7.4%
for the year.
- Zimbabwe received the 200,000
doses of the SinoPharm vaccine from China as promised. The country also
commenced its citizens' inoculation this week and it expects a further 600,000
doses of the SinoPharm vaccine in March.
Africa (CEMAC & Congo DRC)
- Rating agency Fitch has affirmed
Gabon as a CCC rating. In a report published earlier in the week, Fitch states
that the country faces challenges securing sufficient funding to meet its needs
in the medium term.
- The report also states that the
prolonged absence of a new IMF programme and the shallow nature of the regional
bond market would increase risks to Gabon's ability to service its debt in a
- Gabon and the EU have agreed on a
new protocol which allows boats from the EU to access Gabonese waters. The deal
comes as the Gabonese government has looked to open its fisheries industry to
more competition and boost value-addition.
Cement will launch a 1 million Mta cement plant in the deep seaport's
industrial zone of Kribi. The move will deepen competition in Cameroon cement
industry, where other foreign players, namely Dangote Cement (1.5mta) and
Cimencam (the local subsidiary of Lafarge-Holcim (2.2mta), control more
extensive portions of market share.
to Hootsuite and We are Social, two companies monitoring internet usage in
Cameroon, Cameroonian internet penetration grew to 9.2mn users in 2021 from
7.8mn in 2020. This represents 34% penetration in 2020, a considerable
improvement considering internet penetration was only at 2% a decade.
reports of an outbreak of Ebola in the DRC in the past week, the United Nations
allocated $15mn in funding to the DRC, Guinea, to combat the disease.
- After weeks of
a reported struggle between former president Joseph Kabila and Current
President Felix Tshisekedi, the president has appointed the head of state
mining company, Gecamines, Sama Lukonde Kyenge, as Prime Minister. He replaced
former PM Ilunga, who suffered a vote of no-confidence in parliament last
central bank held its benchmark rate at 18.5%, the highest level in more than
two years. However, the apex bank guided that policy rate may be eased in
coming months, following a projected drop in inflation to 5.5%.
rose to 15.7% in the earlier months of the pandemic in 2020, following a
decline in reserves after commodities prices tanked.
2021 Nigeria FX Reserves-26 Feb
Manufacturing PMI -26 Feb
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