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- The National Bureau of Statistics (NBS)
released the inflation figures for Jul-2021. Notably, the headline rate rose by
17.38% y/y, 37bps lower than the rate recorded for the month of June (17.75%).
On a m/m basis, the headline inflation rate ticked upwards by 0.93% m/m (vs.
1.06% in Jun-2021). Inflationary pressures continue to be driven by higher food
prices, while the high base impact from H2-2020 continues to drive deceleration
- The President of the Federal Republic of
Nigeria, Muhammadu Buhari, this week, signed the Petroleum Industry Bill (PIB)
into law. The bill would see the introduction of two new regulatory bodies in
the oil & gas industry, one for the upstream segment and another for the
downstream segment. NNPC would become a limited liability company managing the
government's interest in the oil & gas sector via existing Joint Ventures
(JVs) and Product Sharing Contracts (PSCs).
- On Wednesday, at the FGN bond auction, as
expected, investors' appetite for bonds was strong as all the bonds on offer
were oversubscribed with the 2028s, 2036s, and 2050s recording subscription
rates of 1.21x, 1.15x, and 1.69x respectively. To give context, the DMO offered
to sell N150.0bn worth of bonds but received bids worth N360.1bn.
- Consequently, the DMO took advantage to
oversell the auction by allotting N260.0bn to investors. In addition, the
marginal rates closed lower, with the 2028s, 2036s and 2050s closing at 11.6%,
12.75% and 12.80%, from 12.35%, 13.15% and 13.25% at the previous auction.
- The Federal Government's total borrowing
from the Central Bank of Nigeria (CBN) has hit a staggering N15.5tn, rising by
2,286% in six years according to data released by the CBN. The N15.5tn owed by
the Federal Government is not included in the country's total public debt
stock, which stood at N33.1tn as of Mar-2021, according to the Debt Management
Office. The debt to the CBN is a form of overdraft called "ways and
means". Concerns have been raised regarding this as the FG has constantly
overdrawn its prescribed constitutional limit
- The Ghanaian government has announced
plans to allocate a minimum of 1.0% of the country's Gross Domestic Product
(GDP) to supporting research, science, technology, and innovative activities.
The government is in the process of establishing a National Research Fund,
which researchers and all potential innovators will have access to raise funds.
- The Bank of Ghana is set to create a
Financial Trust Corridor (FTC) with the Monetary Authority of Singapore for
mutual recognition and closer relationships between businesses, including SMEs,
and financial institutions on the platform. The Governor of the Bank of Ghana
announced the FTC would comprise of a governance framework and digital
infrastructure for banks and FinTech companies in both Ghana and Singapore.
- This week, the President of Ghana broke
the ground for the commencement of the Government's agenda to build 111
hospitals across the country. This comes following the drastic effects of the
COVID-19 pandemic. He disclosed each hospital's estimated cost at $16.0m
including cost of purchasing medical equipment, and other facilities.
Construction would begin in the latter part of 2021 to be completed in 18
months. A total of 25,000 direct and indirect jobs are expected to be created
as a result
- The Liberia Electoral Support Project
recently received $1.7m from the Government of Ireland with the aim of
supporting Liberia's progress towards consolidating peace and strengthening its
democratic processes. Ireland has a strong focus on poverty reduction, gender
equity, nutrition, food security, and the promotion & protection of human
as well as women's rights in the county.
Francophone West Africa
- Headline inflation rate in Senegal rose
to 2.9% y/y in Jul-2021 from 2.0% in the previous month, its highest level
since Aug-2020. On a monthly basis, consumer prices increased by 1.9% m/m in
Jul-2021, after an uptick of 0.5% in Jun-2021.
- The United Kingdom on Sunday donated
140,160 doses of the AstraZeneca-Oxford COVID-19 vaccine to Senegal as part of
the countries aim to donate 100.0m doses with the rest of the world to help battle
- The Minister of Health announced Ivory
Coast has recorded a first case of Ebola late Saturday, the first occurrence of
the deadly disease in nearly three decades. Officials confirmed the case after
testing samples taken from an 18-year-old Guinean woman, who had left the city
of Labe in Guinea by road, arriving in Ivory Coast on Wednesday. It has been
reported as an isolated and imported case and identification and surveillance
of anyone who had encounter the patient have commenced.
- Kenyan banks reported decent earnings in
the past week. The largest bank by customer base, Equity Group, saw an c.30.0%
y/y increase in interest income in H1-2021 as Net profit surged 98.3% y/y.
- Kenya's second largest bank by assets,
KCB Group, reported c.14.0% y/y growth in interest income in H1-2021 while Net
profit grew by 101.3% y/y.
- Tax collection by the Kenya Revenue
Authority (KRA) Tax reached KSh121.8bn in Jul-2021, 29.0% higher than recorded
in the same period in 2020.
- In its most recent assessment, the Energy
and Petroleum Regulatory Authority (EPRA) kept petrol, kerosene, and diesel
pump prices unchanged for the second time since setting a price cap in
- The International Finance Corporation
(IFC) announced a $50.0m partnership with FMO, a Dutch development bank, to
support small businesses in Kenya amid the pandemic, by providing them with
funds for working capital and expansion.
- The government of Uganda plans to import
reagents of Covid-19 vaccines to start its own vaccine production, to step up
inoculation. The chemical imports is expected to fast-track vaccine production
in the country.
- According to a report from the Ministry
of Health, Uganda has administered only 1.2m jabs out of 21.0m targeted before
the country can fully remove restrictions imposed to contain the virus.
- The US shipped about 500,000 doses of the
Pfizer vaccine to Rwanda. Amid rising cases in recent weeks, this will help
ramp up vaccinations in Rwanda, which is critical for moving past the pandemic.
- MTN Group officially announced withdrawal
from the telecom license bidding race in Ethiopia, on the heels of its
unsuccessful bid in Apr-2021.
- South Africa's inflation eased from 4.9%
y/y in Jun-2021 to 4.6% y/y in Jul-2021, the second consecutive fall and the
biggest decrease in more than 14 months. On a monthly basis, the consumer price
index increased by 1.1% m/m in Jul-2021, as against 0.2% m/m in Jun-2021. Also,
the core inflation slowed to 3.0% y/y in Jul-2021 from 3.2% y/y in the previous
- According to Statistics South Africa, the
country's retail sales grew by 10.4% y/y in Jun-2021, moderating from 16.3% y/y
recorded in May-2021. On a monthly basis, retail sales rose by 0.6% m/m in
- Reports on the second quarter review of
business conditions for the motor vehicle manufacturing industry indicated that
new vehicle market has recorded recovery in H1-2021, up 40.1% y/y from the
period when covid pandemic hit. However, performance is still 11.7% below that
recorded in H1-2019 (pre-pandemic levels).
- Following a new proposal from the
Department of Social Development, South Africans may be required to contribute
up to 12.0% of their earnings to a new government-backed fund, National Social
Security Fund (NSSF). The fund is proposed to provide retirement, disability,
and unemployment benefits.
- Angola's annual inflation rate edged
higher for a fourth consecutive month in July, reaching 25.7% y/y, its highest
level since October 2017. On a monthly basis, consumer prices were up 2.1%, the
same pace as in the previous month. Upward pressure came mostly from prices of
food & non-alcoholic beverages, furnishings, health, clothing, and
- Angola plans to export 1.2mbpd of crude
in Oct-2021 more than 1.1mbpd in Sept-2021. The plan includes 38 cargoes
carrying a total volume of 36.5m barrels for export.
- The Chamber of Commerce and Industry of
Angola has signed a Memorandum of Understanding (MoU) with China-Africa
Economic and Trade Cooperation Innovation Demonstration Park to strengthen
economic cooperation, technology transfer and investment promotion.
- The Central bank of Namibia has kept the
benchmark rate unchanged at 3.8%, as it assesses the trajectory inflation and
- The Agricultural Bank of Namibia has
advanced a total of N$3.5bn to farmers in a bid to fulfill its mandate to
promote growth and development in the agricultural sector.
- In the just concluded Presidential
election, the president-elect, Hakainde Hichilema, beat the incumbent Edgar
Lungu, by almost a million votes in a spectacular landslide victory. Mr
Hichilema polled 2.8m votes to beat Mr Lungu who had 1.8m votes in an election
of over 7.0m registered voters.
- The Ministry of Health and Child Care
confirmed that Zimbabwe is expected to take deliveries of 1.5m Sinopharm
Covid-19 vaccines in three batches, with the first consignment to arrive today
and the last on Saturday.
- The government of Zimbabwe is considering
borrowing money directly from private investors to fund the first half of a
$3.5bn compensation with white farmers whose lands were seized.
- According to the National Cocoa and
Coffee Board (NCCB), Cameroon's cocoa production during the just concluded
Aug-2020 to Jul-2021 season rose 16.5% from the previous season. A total of
292,471 metric tons of cocoa beans were produced compared to 251,151 metric
tons in the previous season.
- The government of Gabon has declared that
the Covid-19 restrictions currently in place would only be lifted after 60.0%
of its population has been vaccinated. With a population estimated at 2.0m,
60.0% of the population would stand at 1.2 million. However, only 71,000
Gabonese have so far been vaccinated.
- The Development Bank of Central African
States (BDEAC) has granted the Republic of Congo approximately $59.0m to
finance the construction works of the Dolisie-Kibangou road.
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