Growth in Sub-Saharan Africa (SSA) is set to contract by twice the amount previous forecast in April, according to the latest IMF estimates, with per-capita income across the continent falling to levels not seen in nearly a decade.
2 Jul 2020
South African state-owned utility Eskom may look to issue sukuk in a bid to raise funding in the local market, according to a tender document.
30 Jun 2020
South Africa’s emergency budget tabled by Minister of Finance Tito Mboweni this week spelled out a number of “difficult decisions” for the country but made few, raising yet more credibility concerns around one of the region’s largest economies.
25 Jun 2020
The looming contest over South Africa’s political direction will kick off with a dispute over IMF financial support to plug a massive gap in government revenues. Opponents of IMF conditionalities favour tapping into state pension funds or stepping up central bank bond buying to make up the shortfall. With ‘battle’ lines drawn across the ruling alliance’s ideological divisions, the outcome of the…
17 Jun 2020
The IMF has agreed to provide Rwanda with an additional USD111.06mn in financial support to help the East African nation tackle the mounting costs of the coronavirus pandemic.
12 Jun 2020
South Africa should explore the possibility of issuing a social bond to help finance programmes aimed at countering the impact of COVID-19, according to a recent paper published by a group of economists.
28 May 2020
Nigeria’s debt management office (DMO) has opened the book on a NGN150bn (approx. USD385mn) sukuk, part of the government’s wider efforts to shift back to domestic markets for funding in a bid to help relieve pressure on foreign currency reserves.
22 May 2020
The decision to suspect debt payment on debt to some of the world’s poorest economies will only marginally ease pressures on financing, according to a recent report from Moody’s Investors Service.
22 May 2020
China has signalled its willingness to provide debt service relief alongside the G20 by signing onto the landmark agreement in April, a crucial tailwind for several Sub-Saharan African countries. But with wholesale debt forgiveness unlikely and debt reprofiling renegotiations potentially stretching on much longer than expected, attention is now shifting to some of the region’s more vulnerable…
21 May 2020
Adhering to the recently agreed OPEC+ oil production cuts will only deepen Nigeria’s economic problems and exacerbate its difficulties with external finances, according to a recent report by Fitch Ratings. Whilst liquidity provided by multilaterals will help ease some pressures in the short-term, macroeconomic strains will continue.
20 May 2020
The National Treasury announced a step-up in local currency borrowing in the form of South African Government Bills (SAGB) and inflation-linked bonds (ILB). But according to Peter Attard Montalto, Head of Capital Markets Research at Intellidex, additional government borrowing in the mid- to long-term may become unsustainable.
12 May 2020
The International Monetary Fund (IMF) approved rapid disbursements of emergency funding for Kenya and Uganda this week to help the East African nations finance measures to address the COVID-19 pandemic.
7 May 2020
The pandemic poses ‘significant downside risks’ to South African banks, according to Fitch Ratings, as asset quality and earnings face downward pressure.
30 Apr 2020
Nigeria’s government plans to hold off borrowing internationally and instead tap the domestic market to finance the 2020 budget, the country’s president said this week. The move is seen as an important shift in government policy amidst tumbling oil prices and rising bond yields.
29 Apr 2020
The International Monetary Fund (IMF) approved a SDR227.2mn (approx. USD309mn) emergency loan for Mozambique late last week in a bid to help the country meet urgent balance of payment and fiscal needs stemming from the COVID-19 pandemic.
27 Apr 2020
South African government-owned Land Bank may have triggered a default under the terms of its ZAR30bn domestic medium-term note (DMTN) programme after failing to make a payment on a revolving credit facility (RCF), despite previously reporting a strong liquidity profile.
22 Apr 2020
With 38 lenders catering to just over 52 million people, and despite a series of mergers, the Kenyan banking sector appears overbanked. Further consolidation is expected in the years to come, which could result in a number of larger, better-capitalised, more stable banks, according to Cytonn Investments.
22 Apr 2020
South African President Cyril Ramaphosa unveiled a ZAR500bn (approx. USD26.5bn) fiscal support package this week in a bid to help ease some of the economic pressures caused by the spread of COVID-19 and the lockdown designed to contain it. Analysts say South Africa, which was already in a precarious fiscal position before the lockdown began, was right to jump off the fiscal cliff – but now risks…
22 Apr 2020
Renaissance Capital analysts Nikolas Stefanou and Alexander Burgansky suggest the headline 23% figure quoted in the OPEC+ agreement excludes condensate production, which makes up a large share of Nigeria’s overall oil output.
17 Apr 2020