Kenya GDP Growth May Plummet to 1 Percent by 2019, Investec Says

Kenya GDP Growth May Plummet to 1 Percent by 2019, Investec Says

NAIROBI (Capital Markets in Africa) – Kenya’s economic growth could slow to as little as 1 percent over the next two years as credit extension in East Africa’s biggest economy weakens, Investec Prime Services estimates. Banks reporting higher levels of souring debt and decelerating money-supply growth suggest gross domestic product expansion will plummet, according toChris Becker, frontier strategist at the Johannesburg-based brokerage. Growth was an estimated 6 percent in 2016. Investec sees growth of between…

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Nigeria to Cut Stake in Oil Assets Under Buhari’s Growth Map

Nigeria to Cut Stake in Oil Assets Under Buhari’s Growth Map

LAGOS (Capital Markets in Africa) – Nigeria plans to sell portions of its oil assets to help fund President Muhammadu Buhari’s four-year program to lift the economy from its worst slump in a quarter century and create 15 million jobs. Buhari proposes in a 2017-2020 economic blueprint to reduce the government’s stake in joint-venture oil assets and other holdings. Selling them will “optimize their efficiency and reduce fiscal burden on the government,” according to the proposal posted on the…

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South Africa’s 2017 Budget Analysis: A tough and taxing year ahead – STANLIB

South Africa’s 2017 Budget Analysis: A tough and taxing year ahead – STANLIB

Johannesburg (Capital Markets in Africa) – The South African Minister of Finance, Pravin Gordhan, delivered a tough budget for 2017/2018, highlighting the need for significant tax increases, especially on wealthier individuals, while at the same time endeavouring to contain government expenditure.  Although the government’s fiscal parameters are expected to remain largely under-control over the coming year, there is a lack of new initiatives to meaningfully stimulate the economic growth of the country. Under these circumstances,…

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IMF Sees Bigger Ghana 2016 Deficit Target Slippage Than Forecast

IMF Sees Bigger Ghana 2016 Deficit Target Slippage Than Forecast

ACCRA (Capital Markets in Africa) – Ghana will miss its budget-deficit target for 2016 by a bigger margin than the government’s forecast due to weak revenue collection and higher-than-planned capital spending, according to the International Monetary Fund. West Africa’s second-biggest economy will probably miss the Washington-based lender’s budget-deficit forecast of 5.2 percent of gross domestic product by 2 to 3 percentage points, the IMF said in an e-mailed response to questions. Last month, former Finance Minister Seth Terkper said…

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Global Growth Edges Up to 2.7 Percent Despite Weak Investment

Global Growth Edges Up to 2.7 Percent Despite Weak Investment

LAGOS (Capital Markets in Africa) – Global economic growth is forecast to accelerate moderately to 2.7 percent in 2017 after a post-crisis low last year as obstacles to activity recede among emerging market and developing economy commodity exporters, while domestic demand remains solid among emerging and developing commodity importers, the World Bank said in a report released on Tuesday. Growth in advanced economies is expected to edge up to 1.8 percent in 2017, the World…

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World Bank cuts Uganda’s GDP forecast, citing South Sudan

World Bank cuts Uganda’s GDP forecast, citing South Sudan

KAMPALA (Reuters) – The World Bank cut its 2016/2017 growth forecast for Uganda on Thursday to 5.5 percent from 5.9 percent, citing the impact of South Sudan’s conflict on its exports and sluggish investments due to slower economic activity globally.  South Sudan is one of Uganda’s major export markets but roads between the two countries have been unsafe since an eruption of violence in South Sudan in July. “The current economic forecast … is ……

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Drop in oil prices to impact Angolan public finances

Drop in oil prices to impact Angolan public finances

Business Monitor International (BMI) projected real GDP growth in Angola to decelerate from 4.1% in 2014 to 3.8% in 2015, assuming an average global oil price of $55 per barrel. It said that the non-oil economy has been the main engine of activity in recent years, but most of the growth has been indirectly underpinned by oil revenues channelled through government spending.  As such, it expected cuts in government spending on the back of lower…

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