Snapshot on African Economy as @ 230421


Friday, April 23, 2021/ 02:40PM / United Capital Research / Header Image Credit: IMF

Anglophone West Africa


  • According to the Internally Generated Revenue report published by the National Bureau of Statistics (NBS), states in Nigeria generated N1.31tn in IGR in 2020, down 1.9% y/y from 2019's N1.33tn. The marginal dip is commendable considering the impact of Covid-19 on the domestic economy.
  • Based on media reports, the Federal government has ordered the Nigerian National Petroleum Corporation to defer plans to suspend fuel subsidies by another six months as it attempts to finalise plans for deregulation. The proposed subsidy usage is expected to cost N720bn over the six-month period.
  • The CBN's monthly economic report showed that Nigeria spent $160.0m on food importation in Jan-2021, down from $310.0m spent in Dec-2020. This reflects reduced end user demand following conclusion of the festive season.
  • The Senate approved $1.5bn and €995.0m worth of external loans for the Federal government. The loans will be provided by the World Bank, Export-Import Bank of Brazil, and Deutsche Bank of Germany. The loans would be used to finance projects of states facing revenue challenges as well as drive mechanization of agricultural processes.


  • According to the recently released economic growth report for 2020, the Ghanaian economy expanded faster than forecast in Q4-2020, however FY-2020 GDP growth underwhelmed forecasts. The Ghanaian economy expanded 3.3% y/y in Q4-2020 (vs. estimate of 1.2%) but only grew 0.4% y/y in FY-2020, lower than IMF's and the Finance ministry projections of 0.9% and 1.9% respectively.
  • The First Deputy Governor of the Bank of Ghana stated the bank is facilitating the modernization of indigenous financial services such as "susu" with digital tools. This is alongside introduction of other business models to deepen financial inclusion in Ghana.
  • At the Mobile Technology for Development Conference (MTDC), the Ghanaian Vice-President, Dr Mahamudu Bawumia launched a platform designed to harmonise fraud control mechanisms of mobile money operators in the country. According to him, the platform will help block SIM cards and mobile devices, as well as blacklist identification numbers that are connected to fraud or general crime-related cases.


Francophone West Africa (WAEMU) 

Ivory Coast

  • The International Cocoa Organisation (ICCO) released their monthly market analysis which reported a reduced 'farm gate' price being paid to Ivory Coast farmers. The fall in price has eliminated the intended effect of the Living Income Differential Scheme Supporting Producers meaning that the quality of life for producers is worsening.
  • The ICCO highlighted that in April the farmers saw a 25.0% reduction in payment by the Ivorian government.
  • Ivory Coast's inflation rate accelerated to 3.3% y/y in March 2021. The surge in inflation is driven by rising food prices, which saw a 5.2% y/y increase.

East Africa


  • According to the Central Bank of Kenya (CBK), foreign remittances in Q1 -2021 grew by c.17.0% y/y to $829.0m, an all-time high.
  • Kenya's Gross reserves reached $7.7bn as of April 15th, 2021, compared to US$ 7.4bn as of April 8th, 2021.
  • Coca-Cola Beverages Africa (CCBA), Africa's largest bottling company has revealed its intent to conduct an Initial Public Offering (IPO) on the Amsterdam and Johannesburg Stock Exchanges.
  • Kenya and the Democratic Republic of Congo have signed important agreements on transportation, defense, and exchange, signaling a drive to increase the low level of trade between the two countries.


  • Tanzania's government has declared that it plans to employ 44,096 additional civil servants in the fiscal year 2021/22.
  • Air Tanzania reported a loss of Sh60.0bn in the 2019/2020 financial year, given the global developments that have shaken the aviation sector.
  • Tanzanian president, Samia Suluhu Hassan, met with Chinese business leaders in Tanzania, and the latter promised to invest in a variety of ventures, including the manufacture of cell phone handsets.


  • Uganda's coffee bean exports increased at their fastest pace in three months in March, thanks to a bumper robusta coffee harvest.
  • According to the Uganda Coffee Development Authority, exports increased 19.0% y/y to 572,839 bags.
  • Similarly, export receipts also grew 16.0% y/y to $53.5m, equivalent to Shs193.9bn


  • Ethiopia's Mines and Minerals Minister announced the start of work on a $355.0mn gold processing plant in the Benishangul-Gumuz district.
  • Ethio-Telecom has handed over to Ethiopian Electric Power the sum of Br122.5m received from the public via Short Message Service (SMS-8100 A) for the building of the Renaissance dam.

Southern Africa

South Africa

  •  Amazon has announced plans to establish an African headquarter in South Africa.
  • A recent study from the African Wealth report showed how South Africa's wealth has plunged in the last five (5) years.
  • The report notes that South Africa has around 36,000 millionaires or High Net Worth Individual (HNWIs). But alarmingly, the report also points out that South Africa has lost about 4,200 HNWIs over the past decade (2010 to 2020).
  • Lastly, the report states that the depreciation of the rand, poorer economic growth levels, and the impact of Covid-19 last year contributed to the 25% plunge in privately held wealth.


  • Zeepay, a leading African Challenger Fintech with operations in over 10 African countries, has acquired a 51% in Mangwee Mobile Money in Zambia.
  • Radisson Hotel Group announced its first resort and third hotel in Zambia, with the signing of Radisson Blu Resort Mosi-oa-Tunya, Livingstone, Zambia.
  • Zambia's president, Edgar Lungu, has called on the country's Ministry of fisheries and livestock to urgently work on new funding for the seafood sector, which will include a $23.7mn aquaculture seed fund already announced.


  • Zimbabwe's Treasury is sticking to its economic growth estimate of 7.4%, even after its president said the projection would have to be lowered.
  • Meanwhile, President Emmerson Mnangagwa stated the "fight is still on" to fix the broken economy, signaling out the financial industry for resisting the economic turnaround efforts.
  • This week, the Zimbabwean parliament approved a bill seeking to remove a clause in the constitution on electing vice presidents, a move that has received overwhelming backlash, especially from the opposition party. In 2013, Zimbabweans voted for a new constitution, including a clause stipulating that the vice president should be elected together with the president.
  • Lake Harvest, one of the largest integrated seafood companies in SubSaharan Africa, has received an $8.0m loan from the African Development Bank to help boost production at its Tilapia farming and processing operations.


  • Mozambique President Filipe Nyusi said that the government would restore peace in the country after a deadly militant attack near the multi-billion-dollar gas projects backed by global oil companies.
  • The Gas-rich country has seen a halt in its economic activities following attacks by the Islamic State insurgents near the sites of some of its Oil and gas projects operated by Total SE.
  • The Mozambican government estimates oil and gas projects could provide about $100.0bn in revenue for the country and create 70,000 jobs over the next 20 years.


  • As part of its moves to raise more government revenue, Angola is looking to sell up to 30.0% of its state oil firm Sonangol next year after restructuring the company to create more transparency and root out corruption
  • In the past week, the Angola government began selling its stake in the state-run bank, Banco de Comercio e Industria, to test investor appetite for Angola state-run assets. 


Central Africa (CEMAC & Congo DRC)


  • Cameroon loses 40.0% - 50.0% of its cocoa seedlings in nursery plants every year because of climate change, as dry seasons are increasingly longer. This was revealed by Jean Claude Akouafane, Director-General of the Cocoa Development Company (SODECAO).
  • The National Institute of Statistics (INS) recently published a note informing that Cameroon’s economy grew by 0.7% in FY-2020, down from the 3.7% growth recorded in FY-2019. According to the INS, growth was driven by the Secondary sector (up 3.4% y/y), which contributed 0.9ppt to growth. In that sector, growth was driven by the Building and Public works segment, Agri-food industries, and Crude oil and gas extraction (up 1.3% y/y). DR. Congo
  • Barrick CEO, Mark Bristow asserted that Kibali Gold mine, operated by Barrick Gold in the Democratic Republic of Congo (DRC), produced 191,612 ounces of gold in Q1-2021.
  • According to the budget monitoring report of the general directorate of budget policies and programming, budget execution rate printed at 64.1% in Q1-2021.

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