Good Morning Africa
Good Morning Africa is your daily source of Economy and Business news from the continent. It is a product of @TheKFinancial, hosted by Ruth Adong.
Global growth set to remain modest.
🎙Post-election turbulence, coups in Africa and regional unrest are leaving us with one question: what will it take to restore peace and stability in the region?
🎙OECD: Global growth downgraded to 2.9% in 2023, and 2.7% in 2024. US GDP revised higher, China improved; Euro Area lags behind.
🎙JSE adapts to global trends, fostering partnerships and revising listing rules to counter declining numbers, inviting companies to thrive.
🎙The annual inflation rate in Ethiopia increased for the second straight month to 29.2% in October 2023 from 28.3% in the previous month.
Cocoa futures hit a 46 year high.
🎙OPEC+ meeting postponed to November 30 over output quota dispute with African producers Nigeria and Angola.
🎙Cocoa futures hit $4,300/tonne, last seen in 1977, up 65% in 2023, fueled by supply worries from Ivory Coast and Ghana.
🎙Mozambique's annual economic growth accelerated to 5.92% from 4.67% in the previous three-month period.
🎙Kenya weighs using forex reserves to repay $2 billion Eurobond; concerns arise as reserves dip below $1.03 trillion statutory requirement.
🎙World Economic Forum's 2023 report: $13.5 trillion needed by 2050 for sustainable transition in key industries; collaborative innovation crucial.
The Overtaxed African Aviation Sector.
🎙African governments tax aviation heavily but lack proportional investment.
🎙Brent crude fell below $80/bbl on Monday, extending a recent decline as investors await the OPEC+ meeting.
🎙The Bank of Ghana kept its benchmark monetary policy rate at 30%.
🎙Zimbabwe's annual consumer inflation rose to a four-month high of 21.6% in November 2023, accelerating from 17.8% in the prior month.
🎙Mastercard boosts South Africa's digital future with new tech infrastructure, aligning with SARB's Vision 2025 for local transaction efficiency and security.
🎙Africa's leap into the Fourth Industr...
The Mammoth Success of Afrobeats.
🎙Explore the Afrobeat phenomenon with 13B Spotify streams, global hits, and Grammy nods—transforming African music into a worldwide powerhouse.
🎙The JSE All Share Index reversed course and rose about 0.4% to close at 75,712 on Friday.
🎙EAC welcomes Somalia as its eighth member, unlocking economic opportunities and expanding the bloc's market with a vast coastline.
🎙Nigeria's economy advanced by 2.54% from a year ago in the third quarter of 2023 after rising by 2.51% in the prior three-month period.
🎙Kenya's formal private sector lost 70,000 jobs due to high business...
Meet the CEO: Laura Kagame, CEO of Travel Neza
🎙 Meet Laura Kagame, CEO of Travel Neza
🎙The JSE All Share Index traded more than 1% higher, around 75,540 on Thursday.
🎙South Africa grapples with a 10% GDP loss due to rampant crime, hindering growth.
OPEC+ countries resisting another production cut ?
🎙Unveiling the Significance of Investor Engagement in Special Economic Zones for Promoting Robust Industrial Development.
🎙OPEC+ postponed the Ministerial meeting to November 30, causing a 4% drop in oil prices. Disagreements over production cuts persist, with analysis suggesting $80 per barrel.
🎙Morocco's annual inflation rate eased to 4.3% in October 2023 from 4.9% in the previous month.
🎙The Central Bank of Zambia lifted its key interest rate by 100 bps to 11% at its regular meeting on November 22nd 2023, after raising it by 50 bps in August.
🎙South Africa's annual inflation rate rose for t...
Role of Special Economic Zones in Industrial Development.
🎙Understanding the Role of Special Economic Zones in Promoting Industrial Development In Africa.
🎙The JSE All Share Index slips below 74,200 as Sibanye Stillwater shares plummet 20%, Telkom soars 9% on profit surge and tower sale talks.
🎙Zambia's $3 billion debt overhaul hits roadblock as revised deal stalls; objections from official creditors, notably China, hinder implementation.
🎙The National Bank of Angola increased its benchmark rate by 100 basis points to 18% on November 21, 2023, the first hike in over two years.
🎙East African Community (EAC) member states are actively promoting a uni...
Economic reforms in South Sudan.
🎙Understanding the current state of the South Sudan economy amidst the Sudan crisis.
🎙The NSE-All Share index extended gains for the fourth straight session to touch a new record level of 71,170 on Friday.
🎙PPC sells 51% Cimerwa stake for $42.5M to Kenya's National Cement, focusing on core markets and optimizing capital allocation.
🎙Facebook ads in Tanzania face 18% VAT starting Dec 1, 2023. The government targets tech giants for Digital Services Tax.
The regressive Remittances costs in Africa
Remittance flows in some African countries are higher than the volume of Foreign Direct Investment and yet sending these remittances within Africa can attract a cost of between 15 to 20%
As the world moves to tackle climate change and transition to more renewable energy, Africa including Nigeria will need between $22.6-$30 billion annually to fill the energy financing gap.
Remittances; Has the fintech wave caused any disruption?
In this episode we look at Remittances: Has Fintech Lived Up To disruption expectations
Tito Da Silva, Senior Economist in the strategy, policy and Review Department of the IMF talks remtechs, mobile money and bitcoin and their impact on the remittance market
Bamburi Cement is selling off its stake in Ugandan subsidiary for $120 million (Sh18.3 billion) to focus on its Kenyan operations.
China’s Interest in Africa’s Mining Industry.
Chinese investments in Africa are significant, Chinese mining companies represent only 8 percent of Africa’s total output in the sector
South Africa's unemployment rate fell to 31.9% in Q3 of 2023, the lowest in a year, from 32.6% in the prior period.
Is Africa lagging behind in the AI race ?
Gita Gopinath (First Deputy Managing Director, IMF) discusses Monetary Policy Challenges in a Global Economy
OPEC slightly increased its 2023 global oil demand growth forecast to 2.46 million barrels per day, citing robust global growth trends and a healthy oil market.
Kenya has appointed Citi and Standard Bank as joint lead managers for a potential dollar-denominated debt.
Bitcoin up by 122%
The crypto has gained roughly 122% this year and 134% in the last 12 months.
development finance institutions (DFIs) led by the African Development Bank (AfDB) have partnered to finance $3-billion in a private sector-focused Alliance for Special Agro-Industrial Processing Zones (SAPZs) to bridge the critical financing gap in agriculture in Africa.
Lessons from the Airtel Uganda IPO.
🎙The telecoms in Uganda planned to raise UGX800 billion in an initial public offering, which would value the telecom at $1 billion (UGX4 trillion).
🎙Malawi's central bank has issued a notice to authorized dealer banks, informing them of a 30% reduction in the local kwacha currency's exchange rate against the dollar.
🎙Mining production in South Africa shrank by 1.9% from a year ago in September 2023, after a downwardly revised 2% drop in the prior month and compared with market forecasts of a 2% fall.
🎙Global air cargo demand in September grew by 1.9%, wit...
Rwanda opens doors for African travelers.
🎙Rwanda has joined Benin, Seychelles and Gambia in removing visa restrictions for African travelers.
🎙 The NSE-All Share index extended gains for the fourth straight session to touch a new record level of 70,754 on Wednesday.
🎙Ghana is seeking to borrow $400 million from cocoa traders to finance industry operations amid a government debt restructuring.
🎙Kenya’s parliament has asked the Blockchain Association of Kenya (BAK) to prepare the first draft of what might become the Virtual Asset Service Provider’s Bill, commonly known as the Crypto Bill.
Airtel Uganda IPO Undersubscribed
🎙Airtel Uganda Ltd raised 211.4 billion shillings ($56 million) after selling 54.5% of the 8 billion shares in its IPO.
🎙 Zambia's central bank raised the ratio of deposits, both local and foreign by 3% points to 14.5%.
🎙Gross foreign exchange reserves in South Africa decreased further to $60.962 billion in October 2023 from $61.131 billion.
🎙EY's 11th Africa Attractiveness Report reveals that clean technology fueled a 64% surge in FDI, with 733 projects worth $194 billion and 154,000 jobs created in Africa.
🎙The World Travel & Tourism Council (WTTC) estimates that the African travel and tourism sector could add...
The 23rd World Travel & Tourism Council (WTTC) Global Summit.
🎙Are stakeholders in the tourism sector finally seeing Africa’s contribution to the sector?
🎙Foreign investor exit reduces NSE value for a third consecutive quarter, with a Sh101 billion drop in the top five stocks' capitalization.
🎙The S&P Global Egypt PMI fell to 47.9 in October 2023 from 48.7 in September.
🎙Taxes on consumers and mobile operators are directly affecting the affordability of mobile devices and services and reducing state revenues.
How relevant is the African Union given the growing influence of Regional Blocks?
🎙What can the African Union do to present a strong case to the G20?
🎙The Central Bank of Egypt left its key overnight deposit rate unchanged at the 29-year high of 19.25% and its lending rate at 20.25%.
🎙Africa’s geothermal sector will attract at least $35 billion in investments by 2050.
🎙The unemployment rate in Morocco rose to 13.5% in the third quarter of 2023 from 11.4%, as the number of unemployed increased by 248 thousand to 1.625 million.
🎙Fitch downgraded Ethiopia deeper into junk territory on Thursday to CC from CCC-, citing...
Meet the CEO: Chukwuduike Madu, CEO of Manful Health
🎙 Meet Chukwuduike Madu, CEO of Manful Health
🎙The NSE-All Share index touched a fresh record level of 70,584.
🎙Africa urges a 10-year renewal of the AGOA trade program, cautious on modifications, as the US seeks tariff-free access to African markets.
The African Union (AU) in the G20, what does it mean for Africa?
🎙The African Union (AU) has been made a permanent member of the G20, what does this mean for Africa?
🎙The South African rand traded around 18.6 per USD, hovering around two-month highs.
🎙President Bola Tinubu is seeking the approval of the National Assembly to go ahead with the processing of a loan facility of $7,864,508,559 and €100 million requested during the administration of former President Muhammadu Buhari under the 2022 – 2024 external borrowing plan.
🎙MTN Ghana's 9-month growth: 32.6% EBITDA, 32% profit after tax, 36.1% revenue, 51.6% Mobile Money growth, and 16.3% active users.
Understanding the financing strategy in the mining sector of Uganda.
🎙Uganda has over-time completed the acquisition and processing of high-resolution aerial magnetic data for the country. It is projected that the mining sector will be a major driver of employment and Gross Domestic Product (GDP) growth in Uganda over the next several years.
🎙South Africa posted a trade surplus of ZAR 13.1 billion in September 2023, above market estimates of ZAR 12 billion and a downwardly revised ZAR 12.6 billion surplus in August.
🎙US President Joe Biden intends to end the participation of Gabon, Niger, Uganda and the Central African Republic in the African Growth and...
How has Botswana managed economic stability?
🎙How has Botswana managed to tame inflation while overcoming the tension between monetary and fiscal policy, including in the context of a crawling peg?
🎙MTN Nigeria reported a 16.3% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to N907.9 billion.
🎙Moody's Investors Service (Moody's) recently affirmed Botswana's A3 rating and maintained its stable outlook.
🎙The U.S. Development Finance Corporation is backing African Data Centres for a new data centre that will be built in Ghana. The first phase of the construction in Ghana will begin in 2024...
Agrisolar: Can it transform Africa’s agricultural sector ?
🎙How can stakeholders Increase access to affordable financing to drive the adoption and use of solar technologies towards increased smallholder farmer productivity in key agricultural value chains?
🎙The cryptocurrency market saw massive gains this week as Bitcoin rallied strongly past $34,000 to its highest level in over two years.
🎙Zambia has reached a deal for relief on nearly $4bn owed to private bondholders.
🎙Nigeria's current account deficit improved from $0.4bn in Q1 to a surplus of $2.9bn in Q2 202
Meet the CEO: Sylvia Mulinge, CEO MTN Uganda.
🎙 Meet Sylvia Mulinge, CEO MTN Uganda.
🎙The JSE All Share Index fell as much as 1% to around 69,600 on Thursday, hovering around 11-month lows.
🎙The annual inflation rate in Zambia rose for the fourth straight month to 12.6% in October, up from September's 12% due to the ongoing depreciation of the kwacha.
$1bn dollar loan to South Africa: Is it enough to turn around the energy sector?
🎙Mastercard has agreed to purchase a minority stake in the fintech division of MTN Group, worth $5.2 billion.
🎙The JSE All Share Index fell about 0.4% to close at 70,274 on Wednesday, following a 0.7% increase the previous day.
🎙Namibia's central bank kept its key lending rate steady at 7.75% on October 25th 2023.
🎙The World Bank approved a $1 billion development policy loan to support electricity market reforms and South Africa's low-carbon transition.
🎙Egypt has successfully issued a 3-year Sustainability Panda Bond worth RMB 3.5 billion ($478.7 million).
Bitcoin hits an 18 month high.
🎙Digital foundations are key in the delivery of public services and in creating inclusion for women.
🎙Bitcoin rose to $35,000 for the first time since April 2022.
🎙The United Nations Conference on Trade and Development has called for increased efforts to channel net-zero finance towards developing economies. Key sectors include power, transport, agriculture, construction, mining, and natural gas.
🎙International Energy Agency predicted Global demand for oil to reach its peak this decade amid the growing popularity of electric cars and the cooling of China’s economy. The world will consume as...
Islamic financing model on the rise, a look at the why.
- Global Islamic Finance assets are forecast to reach USD 3.69 trillion by 2024, according to the 2020 Islamic Finance Development Report
- South Africa emerges as the top choice for mergers and acquisition deals
- S&P Global Ratings cut Egypt's long-term foreign and local currency sovereign credit ratings to B-, from B.
Meet the CEO: Jay Adewole, CEO of Point of View Consulting.
🎙 Meet Jay Adewole, CEO of Point of View Consulting.
🎙Libya's oil production was 1.15 million barrels per day (bpd) in September, unchanged from the previous month.
🎙Karpowership resumed electricity in Guinea-Bissau as the government paid $6 million, settling a $15 million debt, ending a 1.5-day blackout.
🎙The Nigerian government has announced new social grants, which would see 15 million poor households receive N25,000 per month (or roughly $32 at the official exchange rate) for three months.
test 1 on apple pod
Understanding the Financial Sector Performance in Kenya.
🎙 Overview of Kenya's financial sector performance.
🎙Uganda's trade deficit widened by 41.9% m/m from $283.3m in July to $402.1m in August.
🎙South Africa's annual inflation rate accelerated for the second successive month to 5.4% in September 2023, up from 4.8% in August and slightly above market forecasts of 5.3%.
🎙OPEC's Secretary General stresses fairness for Africa due to low emissions but rising oil demand, despite energy disparities and corruption challenges.
Western Sahel Coups : The Uncertain Economic Future
🎙Despite its rich resources, the Western Sahel is facing poverty, coups, and an uncertain future.
🎙World Steel projects a 1.8% growth to 1.81 billion tons in 2023 after a 3.3% decline in 2022, with a 1.9% increase in 2024 to 1.85 billion tons.
🎙IEA warns of massive backlog with 1,500 GW in renewables projects awaiting grid connection, requiring 80M km power line upgrades by 2040.
🎙The Ugandan banking sector registered a growth of 8.4 % in assets from 44.6 trillion as of the end of June 2022 to 48.3 trillion shillings by the end of June 2023.
🎙Egypt's Suez Canal Econ...
Everything You Need To Know About Africa’s Eurobonds.
🎙African nations face a $6 billion Eurobond crunch in 2024 as high-interest rates persist, posing fiscal challenges.
🎙Zambia has signed a memorandum of understanding (MoU) with its bilateral creditors to restructure approximately $6.3 billion of debt.
🎙Nigeria's annual inflation rate continued to accelerate to an 18-year high of 26.7%, up from August's 25.8%.
🎙The annual inflation rate in Senegal dropped for the 6th straight month to 3.8% in September 2023.
Kenya’s 2024 Eurobond: What Is the Repayment Plan?
🎙Kenya plans to raise $2 billion from the international capital markets in the next financial year to repay its 10-year Eurobond.
🎙Oil production in Nigeria rose notably last month, with output jumping 14.4% m/m to a 20-month high of 1.35 million barrels per day (bpd) in September.
🎙Shelter Afrique Elevates to Development Bank Status, Focusing on Transformative Housing and Infrastructure Development in Africa.
🎙The annual inflation rate in Senegal dropped for the 6th straight month to 3.8% in September 2023.
Meet the CEO: Peace Ndoli, Co-founder of Lifesten Health.
🎙 Meet Peace Ndoli, Co-founder of Lifesten Health
🎙WTI crude rebounds over $84 after 2% dip; Saudi-Russia unity supports oil, despite US inventory surge amid Israel-Gaza situation.
🎙African nations face a tough task rolling over $6 billion in Eurobond repayments due as rates surpass 12%, warns IMF.
🎙ActionAid Country Directors in Morocco urge IMF and World Bank to address debt distress and austerity's impact on Africa.
West African Economic woes.
🎙Economic challenges in West Africa: Ghana receives IMF loans, high fuel costs in Nigeria, and coups in Francophone countries.
🎙The JSE All Share Index rose to close about 3.1% higher at 73,841 on Tuesday.
🎙 Ghana’s annual inflation rate eased for the second month to a one-year low of 38.1% in September 2023, down from 40.1%.
🎙Uganda's private sector credit growth was hampered by high interest rates and obstacles in the informal sector, averaging 4.7% YoY.
IMF Economic Outlook: Global Economy is Limping
🎙The International Monetary Fund has warned that the global economy is not growing as fast as expected. The IMF predicts that global economic growth will slow down to 2.9% in 2024 from an anticipated 3% this year.
🎙The urban inflation rate in Egypt rose to 38% in September 2023, up from 37.4% in the previous month.
🎙The annual inflation rate in Namibia quickened for the second month to hit a four-month high of 5.4% in September 2023, up from 4.7% in the prior month.
🎙The annual inflation rate in Rwanda accelerated for the second month to 18.4% in S...
Understanding Security Index Investment Bonds.
🎙Innovative financing models and regional cooperation are key to achieving financial security, peace, and development for a resilient Africa, especially in conflict challenges.
🎙African leaders reject resource-backed loans and prioritize transparency for sustainable debt solutions. IMF and African Development Bank lead the way.
🎙Safaricom's 2022 impact: 1/3 of Kenya's budget, Sh909.5 billion contribution, M-Pesa's 17% growth, and commitment to ESG in Ethiopia
🎙Ericsson is banking on 5G network adoption in East Africa amidst fierce telco competition to drive regional growth.
Climate change adaptation and resilience.
🎙Africa urgently requires a significant increase in climate change adaptation and resilience financing, aiming for $200 billion annually by 2025.
🎙The FAO Food Price Index edged lower to 121.5 in September 2023, the lowest since March 2021, from an upwardly revised 121.6 in August.
🎙The IMF's 14th annual Financial Access Survey (FAS) reveals strong financial access resilience amid the COVID-19 pandemic.
🎙Ghana's Strong Reforms Secure $600M IMF Funding as Economic Stabilization Gains Momentum with Resilient 2023 Growth and Lower Inflation.
🎙Ghanaian fintech Dash shuts down after raising $86.1 million, failing to solve cross...
Why Nigeria is Playing Catch Up in the Mobile Money Space
🎙 African Fintech: Bridging Financial Inclusion Gaps with Mobile Innovation. Regional leaders drive the convergence of telecom and finance.
🎙The Ugandan Shilling is stable at 3735/3745, with tight liquidity and 10.55% overnight yields. BOU bond auction: 13.5% & 15.51%. MPC meeting Oct 5.
🎙The Stanbic Bank Uganda PMI increased to 52.9 in September 2023, up from a 6-month low of 51.6 in August and slightly above the series average of 52.6.
🎙The Stanbic Bank Kenya PMI dipped to 47.8 in September 2023 from 50.6 in the previous month, indicating a moderate deterioration in the country's private sector amid intense cost pressures an...
The nexus Between development banking and Climate Finance
🎙 The Development Bank of Rwanda (BRD) became the first national development bank globally and in East Africa to launch a Sustainability-Linked Bond (SLB).
🎙The JSE All Share Index wrapped up a volatile Tuesday session about 0.7% down, settling at 11-month lows of 70,773.
🎙The S&P Global Egypt PMI fell to 48.7 in September 2023, slipping further from 49.2 in the previous month.
🎙Morocco's GDP grew by 2.3% year-on-year in Q2 2023, following a 3.5% rise in the previous three-month period and compared to a 2.2% growth in the same period of 2022.
🎙The Executive Board of the International Monetary Fund (IMF) approved to...