Friday, February 12, 2021/ 12:40PM / United Capital Research /
Header Image Credit: Umaizi
Anglophone West Africa
- Ghana's Parliament has shut down for at least
three weeks over a surge in coronavirus cases among lawmakers and staff.
- At least 17 members of parliament and 151 support
staff have been infected with the coronavirus, which had already forced
lawmakers to limit their assembly meetings.
- Ghana's Inflation rate dropped from the 10.4%
recorded in December 2020 to 9.9% in January 2021. The improvement in the
inflation number was driven by decline in food inflation, down to 12.8%, from
- Asante Gold to seek Secondary Listing and $3.0Mn
Capital Raise on Ghana Stock Exchange.
- IROKO plans to
go public on the London Stock Exchange Alternative Investment Market in 2022.
The media company plan to raise between $20.0mn and $30.0mn valuing the company
at $80.0mn to $100.0mn.
- Ecobank is in
the market to raise a 5-Yr Eurobond paper at 7.125%, we think this is an
attractive deal compared to equivalent sovereign and corporate Eurobond issues.
- Nigeria's Ngozi
Okonjo-Iweala is set to become the first woman and the first African to lead
the World Trade Organisation (WTO) after the US dropped its objection to her
- The Gambia
remittance and capital transfers stood at $588.0mn in 2020, a 78% rise compared
- The surge in
remittance compensated for the COVID-19 induced decline in the travel industry,
leading to a positive balance of payments.
- Cote d'Ivoire
raised a further 850.0mn Euros in a re-opened Eurobond sale. This sale comes less
than three months after the country raised 1.0bn Euros, also in Eurobonds.
Authorities stated that 66.0% of this 1.0bn Euros will be used to finance the 2020
- Cote d'Ivoire's
domestic cocoa trader's association recently increased its calls for sectoral
reform as it aims to increase the participation of local firms in the domestic
market. Concurrently, Ghana and Cote d'Ivoire have increased their efforts to
improve market coordination.
- This week, the
National Bureau of Statistics (NBS) in Tanzania releasedthe inflation data for
the month of January reporting that inflation rose to 3.5% y/y in January 2021.
Demand-side pressures particularly on nonfood items drove inflation.
- According to
the Minister of State for Finance and Planning, Electronic Fiscal Devices
(EFDs) will be rolled out countrywide by April 2021 and all registered
taxpayers will be required to use it in their transactions to drive digitization
of tax collection.
- According to
Kenya's Cabinet Secretary for National Treasury, the 2021/2022 fiscal year
budget would have a spending plan designed with a focus to revive the economy
which has been weighed down by the Covid-19 pandemic, declining revenue
collection, growing expenditure needs, and bloated debt levels.
- President Uhuru
Kenyatta hinted at plans to re-open the country fully by lifting most of the
containment measures implemented last year. This follows as the country has
managed to keep infection rates low.
operations are now fully operational in Uganda following the countrywide shutdown
of internet facilities prior to the general elections.
- According to a
reportedly leaked communication, a budget consultative meeting between the
Ministry of Finance, Uganda Revenue Authority, Uganda Communications
Commission, Bank of Uganda and Telecom Operators concluded at plans to begin to
tax cash withdrawals at commercial banks. This is part of a move to encourage
cashless transactions in Uganda, improve tax compliance and drive government revenue
- During the
week, Fitch downgraded Ethiopia's Long-Term ForeignCurrency Issuer Default
Rating (IDR) to a "CCC" from a "B" previously. The downgrade comes amid
uncertainty surrounding private sector participation under the untested G20
- The National
Bank of Ethiopia (NBE) has prohibited making over five cash transfers a week
from a single bank account to multiple accounts via any electronic payment or
mobile money service channel reversing the prior unlimited policy. However,
certain accounts (particularly relating to government establishments, financial
institutions) and transactions (utility payments, mobile top-ups, and salary
payments) are exempted from the
- The Rwandan
government has announced plans to raise its 2021/2022 budget by $220.8m to
$3.4bn in bid to drive infrastructure expansion and purchase of equipment for
the education and health sector. The proposed plan is awaiting approval from
- The All-Rwanda
sub-index inflation rate slowed to 3.5% y/y in January 2021, extending the
disinflationary trend observed in the past 4 months.
parliament has moved to toughen regulation on banks and financial institutions.
In the past week, there were debates in the Angolan's parliament with regards
to which bodies should regulate the Angola's non-banking financial institution
offering, such as foreign exchange businesses, collective investment
organizations, micro-credits institutions.
similar moves in Nigeria and Kenya in recent years, Standard Chartered Kenya is
looking to raise its stake in its Angolan unit. This follows as a partner was
detained and had shares seized due to fraud accusations.
- The African
Export and Import Bank (AfreximBank) has set aside $1.3bn to finance projects
in the energy and water sectors in Angola, according to the Afexim Bank and the
- According to
Statistics South Africa, SA's manufacturing output expanded 1.8% y/y in
Dec-2020 after falling by 4.1% y/y in Nov-2020. Mining production notably rose
0.5% m/m in December, driven by Manganese and Diamond production.
- This week,
South Africa temporarily halted the deployment of Oxford/AstraZeneca vaccine
after new research showed that the vaccine offers minimal efficacy against the
Covid-19 variant found in South Africa.
ratification by parliament on 4th February, Zambia deposited the instruments
and documents of ratification of the African Continental Free Trade Area
(AfCFTA) agreement to the African Union (AU) Commission, according to the AU.
- Zambia formally
requested a debt restructuring under the new G20 common framework to debt
treatment, which paves the way for addressing debt transparency and
inflation rate printed at 362.6% y/y in January as CPI surged 5.4% m/m.
- This week,
Zimbabwe purchased 600,000 coronavirus vaccine jabs from China's Sinopharm, in
addition to the 200,000 donated by China last week.
(CEMAC & Congo DRC)
- Following its
lack of finances and a scrap for cash, Gabon's government will reduce its stake
in three major government firms, the country's parliament authorized the state
to sell its assets held in the Gabon
- Energy and
Water Company (SEEG), the Gabonese Banking Union (UGB) and Moov Africa Gabon
- Sticking of the
loss of revenue theme, TOTAL E&P Gabon, an upstream drilling firm, saw
revenue fall by 46.0% in 2020, from $808.0mn to $435.0mn, owing to lower crude
prices and a drop in production by 18.0% to 2,500bpd in 2020 following demand
and supply shocks during the pandemic.
- Gabon has
halted its imports of irons as it plans to boost its local production and
hereafter begin to export the commodity. Data from the ministry of trade shows
that Gabon's output currently stands at 2,000 tons covering 75% of local
- In a
partnership with foreign Spanish investors, the Cameroon government will
develop lands for fodder in the country's Northern region. Th agreement aims to
develop a 35,000 hectares area in Adamaoua, including 30,000 hectares on sites
belonging to the Societe de developpement et d'expansion des productions.
- According to
the Bank of Central African countries (BEAC), in the 10 years since the public
securities for Cameroun treasuries was launched on the BEAC, the volume of
funds raised by CEMAC countries on the market has risen by 6024% to XAF3,
3,323.0bn as of January 31, 2021 from XAF351.0bn in 2011.
- The BEAC also
noted the strong appetite for Cameroonian treasuries by investors. The CEMAC
public securities market issued XAF773bn of new debt instruments (bond and
treasury) in the Cameroonian securities in 2020. The bills were oversubscribed
- DRC has had
another outbreak of Ebola in the past week as its Ebola cases rise to two (2),
the country now dealing with a twin outbreak of Ebola and Covid-19. This report
emerges three months after the country had been declared free of its eleventh
(11th) outbreak of Ebola.
- Orange DRC has
entered an agreement with NuRAN, for a service offering agreement worth
CAD500mn. Under the terms of the agreement, NuRAN is partnering with an
ecosystem of partners and Orange DRC for the purpose of constructing and
operating 2,000 new NuRAN towers over the next 40 months throughout the
Democratic Republic of the Congo (DRC) in Central Africa to meet pent-up demand,
with a particular focus for rural communities with populations. Orange Cameroun
and NuRAN have signed a similar deal in 2020.
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