Mugabe’s Woes Wipe Out $6 Billion From Zimbabwe’s Skewed Stocks

Mugabe’s Woes Wipe Out $6 Billion From Zimbabwe’s Skewed Stocks

HARARE (Capital Markets in Africa) – Investors dumped Zimbabwean stocks every day since the military seized power on optimism that 93-year-old President Robert Mugabe will be forced to step down. The stocks, which are denominated in U.S. dollars and were used to hedge against rising inflation, fell another 10 percent on Tuesday, bringing the Zimbabwe Stock Exchange Industrial Index’s retreat since the army’s takeover on the morning of Nov. 15 to 35 percent. The bourse’s market capitalization has…

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IMF Sees Tough South Africa Budget Unless Fiscal Risk Sorted

IMF Sees Tough South Africa Budget Unless Fiscal Risk Sorted

JOHANNESBURG (Capital Markets in Africa) – South Africa will face more fiscal difficulties and higher financing costs should state-owned companies’ debt continue rising and if the nation’s local debt is downgraded to junk, the International Monetary Fund said. If state entities such as cash-strapped power utility Eskom Holdings SOC Ltd. and South African Airways request more state support, the government will have to step in to help, removing fiscal space for “more socially useful activities,” Montfort…

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Zimbabwe’s Mugabe Said to Risk Impeachment If He Won’t Quit

Zimbabwe’s Mugabe Said to Risk Impeachment If He Won’t Quit

HARARE (Capital Markets in Africa) – Zimbabwean President Robert Mugabe could be impeached if he refuses to bow to pressure to resign, according to four officials close to mediation efforts aimed at ending a political standoff in the southern African nation. The military placed the 93-year-old Mugabe under house arrest early Wednesday and detained top officials who’d backed his wife, Grace, to succeed him. Mugabe has been made aware he could be impeached but he initially dismissed the…

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Angolan Sonangol’s Fired Boss Said She Leaves $2 Billion in Reserves

Angolan Sonangol’s Fired Boss Said She Leaves $2 Billion in Reserves

LUANDA (Capital Markets in Africa) – Isabel dos Santos, Africa’s richest woman, said Sonangol will be left with a financial reserve of $2 billion after she leaves as chair of Angola’s state-owned oil company. Her firing Wednesday marks the first time Angolan President Joao Lourenco has directly targeted the family of his predecessor, Jose Eduardo dos Santos, who ruled Africa’s second-biggest oil producer for 38 years and appointed his eldest daughter to the helm of Sonangol last year. She was relieved…

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Bonds Extend Rally Ahead of Linker Auction

Bonds Extend Rally Ahead of Linker Auction

JOHANNESBURG (Capital Markets in Africa) – South Africa’s 10-year government bonds rose for a fourth day, set for the longest winning streak in two months, ahead of National Treasury’s inflation-linked bond auction, scheduled later Friday. The rand weakened against the dollar, broadly in line with other emerging-market currencies. National Treasury plans to sell 900m rand ($63.4 million) across inflation-linked bonds maturing in 2029, 2033 and 2050. This is the first linker auction with an increased issuance size,…

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South Africa Treasury Seeks Funding Plan to Boost Eskom’s Liquidity

South Africa Treasury Seeks Funding Plan to Boost Eskom’s Liquidity

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Treasury is identifying ways to boost liquidity at the embattled state-owned power utility as its cash reserves slide due to below-target revenue. The National Treasury is concerned about Eskom Holdings SOC Ltd.’s “current financial position and has been working closely with the Department of Public Enterprises and Eskom to address the issues that are impacting the entity’s liquidity position,” the ministry said an emailed response to questions on…

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Zimbabwe Power Brokers: Key Figures in Battle to Succeed Mugabe

Zimbabwe Power Brokers: Key Figures in Battle to Succeed Mugabe

HARARE (Capital Markets in Africa) – The military takeover of Zimbabwe on Wednesday marked the climax of a week of confrontation between the military and President Robert Mugabe, the nonagenarian leader who’s led the southern African nation for almost four decades. Four key figures within Zimbabwe’s ruling party will determine how the battle to succeed him plays out: Emmerson Mnangagwa, 75, has been a close ally of Mugabe’s since 1974 when the two were leading members…

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