Snapshot on the African Economy as @ 151021


Friday, August 20, 2021/ 4:00 PM / United Capital Research / Header Image Credit: iStock


Anglophone West Africa


  • Last week, President Muhammadu Buhari presented the 2022 Appropriation Act in a joint session with the National Assembly. In total the President proposed a budget of N16.4tn, which is 12.5% higher than the passed 2021 budget.
  • The proposed 2022 budget is computed on the assumptions of a growth forecast of 4.2%, a crude oil benchmark price of $57.0 per barrel and daily oil production estimate of 1.88 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day).
  • The exchange rate is projected at N410.15/$1and with a 13.0% inflation rate.
  • The Debt Management Office on Tuesday revealed that the Federal Government of Nigeria will offer N150bn bonds for subscription at October's monthly auction scheduled for 20th.
  • The World Bank disclosed in its new International Debt Statistics 2022 report that the Federal Government of Nigeria refused to participate in its temporary debt service payment suspension program, due to concerns about future its access to debt and credit-rating downgrade.
  • Last week, the Federal Government of Nigeria through the Presidential Steering Committee (PSC) on COVID-19 mandated compulsory vaccination of every civil servant as requirement to access Government from 1st of December-2021.


  • According to an article published by Bloomberg, Ghana sold GHC963m worth of 3-year bonds at 19%.
  •  Ghana's Inflation rallied to a 14-month high, exceeding the Central Bank of Ghana's target.
  • Bloomberg revealed that Tullow Oil Plc has set out to commence a multi-year, multi-well drilling campaign offshore in Ghana.

Francophone West Africa


  • Bloomberg disclosed Moderna's interest in Senegal as a prospective site for its $500mn vaccine plant in Africa.
  • Last week, it was disclosed by Bloomberg that a Memorandum of Understanding (MoU) was signed between the United Arab Emirates and Senegal aimed at establishing a joint Emirati-Senegalese business council.

Ivory Coast

  • Bloomberg disclosed last week that Ivory Coast's Gapex Cocoa Processing rose 11.3% in September, after recording 49,574 tons of processed cocoa in Sept-2021 in contrast with 44,527 tons in Sept-2020.
  • According to Telecompaper, Orange and the German Development Cooperation in a bid to facilitate development of digital skills and innovation have inaugurated a Digital Centre in Abidjan.

East Africa


  • Kenya recently took on the presidency of the UN Security Council for the month of October 2021, a role which is assumed in turn by each member of the Council. The East African nation has now assumed non-permanent membership of the Council for the third time in January this year.
  • In the last week, the Central bank of Kenya (CBK) held a Treasury Bond Auction for 2021 offering Ksh 53bn. At the auction, the CBK reopened the 15-year and 25-year treasury bonds. Investor appetite at the auction was mild, as bid to cover ratio came in at 0.92x.


  • According to data published by Tanzania Statistics Agency, Tanzania experienced a 4.3% GDP expansion in the second quarter of 2021
  • Bloomberg revealed that Tanzania sold Shs182.34bn ($79m) worth of bonds due Oct-2046, at Shs102.82 per bond with 15.5% yield.
  • The Government of Tanzania via the Rapid Credit Facility (RCF) secured concessional financial assistance from the International Monetary Fund (IMF) to aid in the fight of poverty in Tanzania.


  • Uganda sold UShs160bn ($44m) worth of T-Bills due Oct-2022, at UShs90.93 per bill at a 10.0% yield.
  • Lastly, Uganda was revealed as one of the East African countries to be beneficiaries of the $1m survivors leadership funding intended to fight slavery and human trafficking in Africa.


  • According to media reports, Ethiopian Government violated its June-ceasefire declaration, after it launched massive, coordinated military assaults in Tigray.
  • In response to the humanitarian crisis in Northern Ethiopia, the United States will provide an additional $26m in humanitarian support to an already disbursed $637m in funding.

Southern Africa

South Africa

  • Statistics South Africa outlined that South Africa recorded a 1.3% y/y decline in August-2021 Retail Sales, after a 1.2% y/y drop was already recorded in July-2021.
  • South Africa's CPI inflation grew by 4.9% y/y in August, the highest increase in 2021. 
  • Bloomberg disclosed South Africa's plans to sell R3.8bn ($257m) worth of bills due to mature by July-2022 in an auction scheduled for 15th of October.
  • The IMF revised South Africa's growth forecast for 2021, upwards by 1%. 


  • On October 4th the Italian energy major, Eni, Angola's Agência Nacional de Petroleo, Gas e Biocombustiveis (the energy regulator) and the national oil company, Sonangol, signed a memorandum of understanding (MoU) to produce biofuels.
  •  Among other benefits, the new MOU is set to support long-term growth in the ethanol sector.
  • Effective from 15th Oct-2021, to access Education establishments and most recreational activities mandatory vaccination certificate or negative coronavirus test required to access public spaces, including restaurants.


  • The United States Agency for International Development (USAID) announced an additional $11.3m to an already existing $18.5m funding, directed toward assisting Zambia to strengthen democracy and governance as well as support for small and medium sized agri-business enterprises.
  • The Central Bank of Zambia reiterated its commitment to raise key interest rates should disinflationary pressures moderate within the target range of 6% to 8% by H2-2023.
  • Bloomberg disclosed in its article that Zambia's annual Inflation is forecasted to settle at 19.2% by Dec-2021, and the Zambian economy is forecasted to rebound in 2021 and medium-term with its GDP growth rate at 1.6% in 2021 and 3% in 2022.


  • The Zimbabwean government disclosed that their new traffic interchange project to be constructed to the south of Harare will cost $85m, with a span of 12months.
  • According to Bloomberg, Zimbabwe's Dollar declined by 1.7% against the United States Dollar (USD), with local units trading at Z$90 per U.S dollar at weekly auction, in contrast to Z$88.55 that was traded a week ago.

Central Africa (CEMAC & Congo DRC)


  • The Ministry of Economy, Planning and Regional Development (MINEPAT) revealed that the Government of Cameroon inked three loan agreements with the World Bank Group, totaling close to XAF236.5billion.
  • Also, in the past week, the Paris Club extended Cameroon's debt-service suspension to the 31st of December.
  • Cameroon's Ministers of Finance and Decentralization and Local Development together in a joint circular letter revealed guidelines for the preparation of Cameroons' 2022 financial year's budget.

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