Egypt Economy: Four Tailwinds for Economic Growth in 2018

Egypt Economy: Four Tailwinds for Economic Growth in 2018

CAIRO (Capital Markets in Africa) – Egypt’s economy took a battering after the revolution of 2011, with annual growth declining to 3.1% in 2011-16 from an average of 6.2% in 2005-10. But the economy should recover in 2018, helped by four tailwinds: declining inflation, lower interest rates, recovering tourism and gas production from a new field. Egypt’s macroeconomic conditions were dire in 2016. Foreign currency was in short supply, resulting in the emergence of a…

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Kenyan Inflation Rate Rises for First Month in Five in January

Kenyan Inflation Rate Rises for First Month in Five in January

NAIROBI (Capital Markets in Africa) – Kenyan inflation accelerated for the first month in five in January as corn prices rose and crude costs increased. Consumer prices climbed 4.8 percent from a year earlier, the Kenya National Bureau of Statistics said Wednesday in a statement emailed from the capital, Nairobi. Prices advanced 1.3 percent in the month. A government-imposed cap on commercial lending rates, a drought and two disputed elections have weighed on economic growth in…

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Nigerian Rates Easing Still Some Way Off Even as Inflation Slows

Nigerian Rates Easing Still Some Way Off Even as Inflation Slows

LAGOS (capital Markets in Africa) – The slowdown in Nigeria inflation to a 20-month low may not be enough to prompt the central bank to start easing just yet. The inflation rate in Africa’s most-populous nation fell to 15.4 percent from 15.9 percent in November, the Abuja-based National Bureau of Statistics said in an emailed report Tuesday. The median estimate of seven economists in a Bloomberg survey was for the rate to remain unchanged. Prices rose 0.6 percent…

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Rand Bounce Back Seen at Risk on South Africa Political Outlook

Rand Bounce Back Seen at Risk on South Africa Political Outlook

  JOHANNESBURG (Capital Markets in Africa) – South Africa’s politics and economic outlook could trip up the gains the rand has managed to make in bouncing back from an expected credit-rating downgrade, analysts say. The rand rallied as much as 3.2 percent on Monday, overturning its losses on Friday when S&P Global Ratings demoted local currency-denominated debt to junk, amid relief that Moody’s Investors Service retained its investment-grade rating. Moody’s has warned it may do the same…

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Kenya Stares at Bleak 2018 Outlook in Vote Mess Aftermath

Kenya Stares at Bleak 2018 Outlook in Vote Mess Aftermath

NAIROBI (Capital Markets in Africa) – Kenya is facing an economic storm in 2018 in the aftermath of two disputed elections. Saddled with the triple threat of austerity measures to pay for those votes, slowing credit growth and new accounting rules for banks, Kenya now risks missing the government’s forecast for 6 percent economic growth next year, according to lenders including Nairobi-based Stanbic Bank Kenya Ltd. Investec Bank Ltd. strategist Chris Becker says expansion could slow to as…

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Malawi Sees at Least 5.5% Growth This Year; Plans Power Boost

Malawi Sees at Least 5.5% Growth This Year; Plans Power Boost

LILONGWE (Capital Markets in Africa) – Malawi’s economy will expand at least 5.5 percent this year as the country recovers from a drought that ravaged crops throughout southern Africa, President Peter Mutharika said. The country also plans to bolster its power-generating capacity in the next decade, using a $200 million World Bank loan to help to raise the generation to 2,500 megawatts from 350 megawatts now, he told lawmakers Friday in the capital, Lilongwe. Of the current installed…

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Nigeria Inflation Little Changed in September as Food Costs Rise

Nigeria Inflation Little Changed in September as Food Costs Rise

LAGOS (Capital Markets in Africa) – Nigerian inflation was little changed in September as food prices continued to rise, limiting the scope for the central bank to ease policy before the end of the year. The inflation rate in Africa’s most-populous nation decreased to 15.98 percent from 16.01 percent in August, the Abuja-based National Bureau of Statistics said in an e-mailed report on Tuesday. That was in line with the median of 13 economists’ estimates compiled by Bloomberg. Prices rose…

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