South Africa’s Inflation Rate Falls to a 19-Month Low in June

South Africa’s Inflation Rate Falls to a 19-Month Low in June

JOHANNESBURG (Capital Markets in Africa) – South Africa’s inflation rate fell to its lowest in 19 months in June, creating room for the central bank to shift toward looser monetary policy. Inflation slowed to 5.1 percent from 5.4 percent in May, Pretoria-based Statistics South Africa said Wednesday in a report on its website. That’s the lowest rate since November 2015. The median of 21 economists’ estimates compiled by Bloomberg was for 5.2 percent. Prices increased 0.2 percent in…

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Ghana Oil Boon Not Enough to Plug Budget Hole as Prices Drop

Ghana Oil Boon Not Enough to Plug Budget Hole as Prices Drop

ACCRA (Capital Markets in Africa) – A surge in Ghana’s oil output this year may do little to ease the West African nation’s fiscal strains as crude prices are lower than what it budgeted, eroding the gains from extra production. This year’s average Brent crude price of $52 a barrel is below the $56 forecast in the budget, which could complicate the state’s plans to narrow the fiscal deficit. Output is set to climb by more than…

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Moody’s: Ghana’s credit profile balances strong economic growth outlook

Moody’s: Ghana’s credit profile balances strong economic growth outlook

ACCRA (Capital Markets in Africa) – Ghana’s B3 credit rating and stable outlook reflects its strong economic growth outlook and reduction in external imbalances, set against challenges which include a significant fiscal overrun in 2016, high government debt and very low debt affordability, Moody’s Investors Service said in a report published this past week. The annual update, “Government of Ghana — B3 Stable Annual Credit Analysis”, is now available on www.moodys.com. Moody’s subscribers can access…

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Moody’s downgrades Gabon’s rating to B3, outlook negative

Moody’s downgrades Gabon’s rating to B3, outlook negative

LIBREVILLE (Capital Markets in Africa) – Moody’s Investors Service has today downgraded the long-term issuer and senior unsecured debt ratings of the government of Gabon to B3 from B1 and maintained the negative outlook. Concurrently, Moody’s has lowered the government of Gabon’s local currency as well as foreign currency bond and deposit ceilings to Ba3 from Ba1. The rating downgrade drove the change in ceilings. Rating Rationale The key drivers behind the downgrade to B3…

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Kenyan Growth Slows as Farming Shrinks for First Time Since 2009

Kenyan Growth Slows as Farming Shrinks for First Time Since 2009

NAIROBI (Capital Markets in Africa) – Economic growth in Kenya slowed in the first quarter, crimped by the first contraction in agricultural output in eight years and a slowdown in bank lending. Gross domestic product in East Africa’s largest economy grew 4.7 percent from a year earlier in the three months through March, compared with 5.8 percent reported in the previous quarter, the Kenya National Bureau of Statistics said in a statement on its website. Kenya’s rain-fed…

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Ghana’s Economy Expands Most Since 2014 in First Quarter

Ghana’s Economy Expands Most Since 2014 in First Quarter

ACCRA (Capital Markets in Africa) – The economy of Ghana, West Africa’s biggest after Nigeria’s, expanded the most in almost three years in the first quarter, boosted by gains in the oil industry. Gross domestic product rose 6.6 percent in the three months through March from a year earlier, Anthony Amuzu, deputy government statistician for operations at the Ghana Statistical Service, told reporters Wednesday in the capital, Accra. That’s the fastest expansion since the third quarter…

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South Africa Must Have Inflation-Target Talk, Buthelezi Says

South Africa Must Have Inflation-Target Talk, Buthelezi Says

JOHANNESBURGH (Capital Markets in Africa) – South Africa should have talks on the appropriateness of the central bank’s inflation target, Deputy Finance Minister Sfiso Buthelezi said, adding to concern that the institution’s mandate may be altered. “We set this 3 percent to 6 percent then, under different economic conditions,”  Buthelezi said at a conference Monday in Johannesburg. “Is it still relevant now? Is it a policy for all seasons?” Buthelezi’s remarks come a week after Public Protector Busisiwe Mkhwebane recommended…

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