Zimbabwe Will Accelerate Debt Plan, Finance Minister

Zimbabwe Will Accelerate Debt Plan, Finance Minister

HARARE (Capital Markets in Africa) – Zimbabwe will fast-track plans to settle its debt arrears, a key step needed to restore investor confidence in the country’s economy, Finance Minister Mthuli Ncube said. The government needs funds to rebuild an economy battered by almost two decades of misrule under former President Robert Mugabe that’s left infrastructure crumbling and crippling cash shortages. Emmerson Mnangagwa, who won a disputed presidential election last month, has said his government plans to prioritize the repayment of…

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South Africa Business Confidence Drops to Lowest This Year

South Africa Business Confidence Drops to Lowest This Year

JOHANNESBURG (Capital Markets in Africa) – South African business confidence declined to the lowest level this year as industries raised concern about policy uncertainty, including the ruling party’s plan to change the constitution to make it easier to expropriate land without paying for it. The gauge dropped to 38 in the third quarter, FirstRand Ltd.’s Rand Merchant Bank unit and the University of Stellenbosch’s Bureau for Economic Research said in an emailed statement Tuesday. All sectors…

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South Africa Recession Adds Risks to Revenue Estimate, Nene Says

South Africa Recession Adds Risks to Revenue Estimate, Nene Says

JOHANNESBURG (Capital Markets in Africa) – South Africa may collect less revenue than forecast for the year after the economy fell into a recession, Finance Minister Nhlanhla Nene said. “There is now additional downside risk to the tax revenue projected at the beginning of the year because of the contraction in the economy,” Nene said in an emailed copy of a speech. “Fixing our economy to ensure that it grows faster and in a more sustainable manner is…

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Seven EM Countries at Risk of Exchange-Rate Crisis, Nomura Says

Seven EM Countries at Risk of Exchange-Rate Crisis, Nomura Says

LAGOS (Capital Markets in Africa) – Seven emerging economies at risk of an exchange-rate crisis are Sri Lanka, South Africa, Argentina, Pakistan, Egypt, Turkey and Ukraine, according to a new analysis by Nomura Holdings Inc. With five of the seven already in a currency crisis or a program run by the International Monetary Fund, that leaves South Africa and Pakistan as the standouts. At the same time, the eight countries with the lowest risk of…

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Tokio Buys Stake in South African Insurer Hollard to Expand

Tokio Buys Stake in South African Insurer Hollard to Expand

LAGOS (Capital Markets in Africa) – Japanese insurer Tokio Marine Holdings Inc. agreed to buy a minority stake in South Africa’s Hollard Insurance Co Ltd. to help both companies expand through Africa. Tokio Marine will pay 5 billion rand ($327 million) for a 22.5 percent shareholding in Johannesburg-base Hollard, one of sub-Saharan Africa’s largest providers of property and casualty insurance. The deal will enable Tokio to gain a foothold in markets such as South Africa and…

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Rigging Claims Cast Cloud Over Zimbabwe’s Post-Mugabe Vote

Rigging Claims Cast Cloud Over Zimbabwe’s Post-Mugabe Vote

HARARE (Capital Markets in Africa) – The legitimacy of Zimbabwe’s first election since Robert Mugabe quit after leading the nation for almost four decades has come under attack even before voters line up to cast their ballots, raising fears of a disputed result. President Emmerson Mnangagwa, who replaced Mugabe in November and leads the ruling Zimbabwe African National Union-Patriotic Front, has promised a fair contest on July 30. Yet the main opposition Movement for Democratic Change says the…

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South Africa Reserve Bank Warns of Price Risks as It Holds Key Rate

South Africa Reserve Bank Warns of Price Risks as It Holds Key Rate

JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank warned of upside risks to inflation as it held the key interest rate at a two-year low. The Monetary Policy Committee unanimously decided to keep the repurchase rate at 6.5 percent Thursday. All 15 economists in a Bloomberg survey predicted the freeze. The rand had its worst month in more than two years in June as the U.S. and China exchanged tariff blows at a time when…

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