Friday, June 11, 2021/ 03:00PM / United Capital
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- According to the Debt Management Office
(DMO), Nigeria's total public debt increased marginally by 0.6% from N32.9trn
as of Dec-2020, to N33.0trn. Lagos State led other states with a total debt of
N507.4bn, followed by Rivers, N266.9bn; Akwa Ibom, N232.0bn; and Delta,
- The Federal Government (FG), via the
Federal Ministry of Information & Culture, announced the suspension of the
operations of Twitter in Nigeria. This was a response to the social media
platform's decision to delete the President's tweet regarding the ongoing
crisis in the Southeast. Unpleasant reactions have trailed the decision as the
country gradually approaches another pre-election year.
- Relatedly, the FG has acknowledged that
Twitter and its users in Nigeria face huge financial loss following the social
media platform's suspension in Nigeria. However, the FG has stated it needed to
take the decision to protect national interest and integrity.
- The National Bureau of Statistics (NBS)
released the foreign trade statistics for Q1-2021. According to the report,
total trade (export and import) rose 14.1% y/y to print at N9.8tn in Q1-2021,
from N8.5tn in Q1-2020. The growth in total trade was driven by a surge in
imports (+54.3% y/y to N6.9tn) as exports (-29.3% y/y to N2.9tn) plunged during
- Consequently, Nigeria's trade deficit
expanded 1095.3% y/y to N3.9tn in Q1-2021, from N329.9bn in Q1-2020. Notably,
the trade deficit recorded in Q1-2021 represents the 6th consecutive quarter of
- During the week, the Central Bank of
Nigeria held a NTB primary market auction rolling over N93.1bn worth of
maturing treasury bills. Investors' appetite at the auction remained strong, as
the 91-day, 182-day and 364-day bills were oversubscribed by 1.4x, 1.5x and
3.9x, respectively. Stop rates for the 91-day and 182-day bills remained
unchanged at 2.5%, 3.5%, respectively. However, rates on the longer tenor paper
dipped by a marginal 1bp to close at 9.64%
- According to IHS Markit's Purchasing
Managers Index (PMI) data for Ghana, private sector activity expanded further
in May, albeit at a slower pace than in April. Higher producer costs and supply
shortages had a dampening effect on businesses. The expansion in May-2021 is
the tenth consecutive month of expansion.
- The Minister of Finance, Ken Ofori-Atta, at
a two-day strategy retreat between the government and International Finance
Corporation (IFC), requested that the IFC increase the funding it offers
private businesses in Ghana to between $15.0m - $20.0m, from the current $5.0m.
- According to data from the Chamber of
Mines' annual report for 2020, total volume of gold produced in the country
declined by 12.1% y/y to 4.0m ounces in 2020, from 4,6m ounces in 2019.
- The Executive Director of the National
Board for Small Scale Industries (NBSSI), Kosi Yankey-Ayeh, announced at a
press briefing, that the NBSSI is expected to be renamed Ghana Enterprises
- Guinea and Liberia are in talks over
$20.0bn bilateral engagement for the development of a rail corridor that will
be used to transport Guinean mining products via Liberia's port infrastructure.
Francophone West Africa
- In the past week, Mali's coup leader Assimi
Goita was sworn in as the West African nation's interim president on Monday.
- Goita has sought to quell fears that he
would cling to power beyond an agreed transitional period. Goita is expected to
lead the country until presidential elections are held in February 2022
- The world's top cocoa producer Ivory Coast
had sold 950,000 tonnes of cocoa in contracts by the end of May for the
2021/2022 season at a country discount instead of its usual country premium,
regulator and industry sources said on Tuesday.
- Ivory Coast sold CFA38.2bn and CFA33.2bn
worth of bonds due 2026 and 2031. Investors' demand was strong as both bills
were oversubscribed by 1.7x and 1.1x, for the 2026 and 2031, respectively. Stop
rates for the 2026 and 2031 papers closed at 5.6% and 6.0%.
- Ivory Coast, the World's fourth-largest
rubber producer, is planning to double production over the next four years from
950,000 tons in 2020, Prime Minister Patrick Achi disclosed at the World Rubber
- The West African country aims to bring the
primary processing rate to 100.0% while "radically amplifying" the
- In the last week, the World Bank approved
$250.0m in total financing to support the development of the agri-food sector
and the creation of thousands of jobs in rural areas of Cote d'Ivoire.
- According to the National Agency of
Statistics and Demography, Senegal's CPI rose by 1.3% y/y in May -2021.
- According to IHS Markit/Stanbic Bank's PMI
report, PMI in Kenya rose to 52.5 points in May-2021 as business conditions
improved, after the government eased Covid-19 restrictions.
- According to details from the budget
presentation for the 2021/22 financial period by National Treasury Cabinet
Secretary, Ukur Yatani, total spending is estimated at Sh3.7tn.
- Tanzania's current account deficit printed
at $727.0m for the first four months of 2021, wider than the $431.0m recorded
in the same period of 2020. The current account deficit is expected to rise in
subsequent months as crude prices continue to rise (forcing cost of imported
petroleum products higher) while implementation of the government's ambitious
infrastructure projects is also expected to pressure the country's import bill.
- According to the Minister of Finance and
Planning, Tanzania's national debt has reached Sh60.9tn as at Apr-2021 with
external debt printing at Sh43.7tn while domestic debt stood at Sh17.3tn.
- In a sweeping move, President Yoweri Museveni
has implemented a cabinet reshuffling that sees almost half of his ministers,
including some senior officials from the previous cabinet replaced.
- Uganda's trade deficit narrowed by a meagre
0.7% m/m in Mar-2021 to $383.6m from $386.4m in Feb-2021, as imports remained
relatively unchanged from Feb-2021 while exports grew 0.6% m/m.
- According to IHS Markit/Stanbic Bank's
latest PMI report, Uganda's private sector lost some momentum in May-2021,
dropping to 56.5 points, compared to 57.8 points in Apr-2021, albeit remaining
in expansion territory, indicating sustained improvement in overall business
- At the budget presentation for 2021/22
financial year, the designated Minister of State for Planning, Amos Lugoloobi,
announced the introduction of six new tax measures aimed at increasing revenue
collection and safeguarding the government from the constraint of increasing
- Renowned Japanese-inspired lifestyle
retailer, Miniso has opened its first Rwandan outlet in the Kigali Business
- A new partnership between Rwanda
Development Board (RDB) and the Belgium-based Ondernemers Voor Ondernemers
(OVO) loosely translated as Entrepreneurs for Entrepreneurs, is expected to see
Rwandan startups receive fully-funded training and business loans.
- Stats SA has published the latest gross
domestic product (GDP) data for Q1-2021, showing that the economy grew by 1.1%
in the first three months of 2021.
- The growth follows a revised 1.4% rise in
real GDP in Q4-2020. On an annualised basis, the economy grew 4.6% q/q.
- According to the Nigerian Consulate in
Johannesburg, total trade between SA and Nigeria hit $2.9bn last year.
- South Africa imported R35.0bn ($2.5bn)
worth of goods, predominantly crude oil, from Nigeria and exported R6.0bn
($425.0m) to Nigeria.
- In a bid to address the nation's failing
electricity supply, South Africa's government will allow private investors to
build their own power plants with up to 100MW of generating capacity without
requiring a license.
- Also, on power, South Africa's state-owned
power utility company, Eskom, announced major power cuts last week. The company
will begin rationing electricity to consumers to cope with increasing demand
due to the cold weather as the southern winter begins.
- The International Monetary Fund has
approved a $772.0m disbursement to Angola.
- In line with its recent efforts to
privatise state-owned assets, Angola has opened an auction to private investors
for 51.0% stake in its state-owned insurance company.
- Angola's Finance Minister, Vera Daves de
Sousa, has ruled out selling debt on the international markets in 2021. The
Minister stated that Angola's economic focus would be centred around attracting
reforms and private investment to diversify its economy.
- Namibia's trade balance remained in a
deficit of N$2.0bn, increasing from N$1.8bn recorded in both Mar-2021 and
- Apr-2021 saw Namibia's total merchandise
trade increase to N$18.7bn, an increase of 0.8% m/m and 43.3% y/y, compared to
N$18.6bn and N$13.1bn recorded in Mar-2021 and Apr-2020, respectively.
- The Finance minister of Namibia has
reiterated the country's commitment to maintaining its pegged exchange rate
system as it is still the best framework for the country.
- The Government of Namibia sold NAM$620.0m
of bills, last week. Investor appetite was strong as it was oversubscribed by
1.5x while stop rate for the bill closed at 4.6%.
- Zambia Revenue Authority collected Zk31.5
bn from January to May, surpassing its target by Zk7.3bn.
- Next Thursday (17/06/2021), the Zambian
government is scheduled to sell ZK1.4bn across four tenors, the 91-day,
182-day, 243-day, and 364-papers.
- The Institute of Agricultural
Research for Development (IRAD) delivered tons of maize, potato seeds and fruit
trees to 20 farming groups in the North West region. The delivery of the farm
inputs was done to enhance agricultural productivity and orchard production.
- The vaccination progress in Cameroon has
been described as progressive but timid as many Cameroonians remain reluctant
to get vaccinated, according to reports from some vaccination centres.
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