The Editorial Team |

JPMorgan, BofA See Scope for Longer S. Africa Stock Rally

JOHANNESBURG (Capital Markets in Africa) — South African stocks have made their best start to the year since 2012, even after last week’s pullback, and JPMorgan Chase & Co. and Bank of America are among those predicting further gains. A global appetite for riskier assets has propelled emerging market inflows and the Johannesburg exchange is set to benefit from its heavy weighting in mining stocks as China’s economy emerges from the pandemic. Add to this…

French Billionaire Puts Mozambique Leader at Heart of Debt Scam

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MAPUTO (Capital Markets in Africa) — Privinvest Shipbuilding SAL and its billionaire founder Iskandar Safa have placed Mozambican President Filipe Nyusi at the center of the nation’s $2 billion debt scandal. Court documents filed in London reveal that the shipbuilding company and the French-Lebanese businessman made payments to Nyusi and other senior officials after negotiating contracts for government maritime projects. They denied the remittances were bribes or illegal and said they were understood to be…

Ethiopia May Widen Debt Talks to Private Creditors After Review

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ADDIS ABABA (Capital Markets in Africa) — Ethiopia may approach private creditors for debt talks after it reviews liabilities with official lenders amid security risks that are adding to investors’ worries. The nation’s Eurobonds plunged the most on record last week after State Minister of Finance Eyob Tekalign said the government will seek to restructure its external debt under a Group of 20 debt-suspension program. With no details on how the decision would affect holders…

Libor’s Endgame in U.S. Requires Urgent Preparation: Tom Wipf

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LAGOS (Capital Markets in Africa) — With many headlines competing for the financial world’s attention already this year, it would be easy to overlook one of the most significant changes that will take place in 2021: the end of Libor in new contracts. Once dubbed “the world’s most important number,” Libor is a benchmark interest rate with mind-boggling reach, impacting trillions of dollars in business loans, student loans, mortgages and more. Although Libor’s use is pervasive,…

Kenya Seeks More Debt Suspension After $600 Million Relief

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NAIROBI (Capital Markets in Africa) — Kenya received debt repayment suspensions for a total of $600 million from China and the Debt Service Suspension Initiative and has requested the Group of 20 to consider a similar freeze for amounts expected after June, according to the central bank. The amount suspended was due in the first half of 2020 and will be repaid over five years, Governor Patrick Njoroge told reporters in the Kenyan capital, Nairobi….

Swedish Fund’s Fading Nigeria Bet Shows Another Foreign Exit

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LAGOS (Capital Markets in Africa) — Tundra Fonder AB’s Sustainable Frontier Fund has cut its holdings of Nigerian stocks by more than half within a year in another sign that foreign investors have lost patience with the government’s handling of the economy. The Stockholm-based money manager’s fund had a 7% weighting in Lagos-traded bank stocks as of December, down from 15% in January 2020, a monthly statement shows. After being among the top three countries…

Nigeria’s Addiction to Central Bank Money Seen Hard to Cure

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LAGOS (Capital Markets in Africa) — The Nigerian government has become dependent on central-bank borrowing and will struggle to wean itself off the copious money printing that has raised concerns about the health of Africa’s largest economy, according to market observers. After revenue collapsed during the oil shock of 2015, Africa’s biggest crude producer turned to the central bank, borrowing about a third of its debt from the apex lender to cover a budget deficit…

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