Author: The Editorial Team

LAGOS (Capital Markets in Africa) — The Central Bank of Nigeria is likely to keep rates on hold on today as it bids to support the recovery amid the second wave of Covid-19 infections. Inflation is surging, but policymakers view the above-target rate as unavoidable, with supply bottlenecks being amplified by the pandemic. The rate decision is expected at 1 p.m. London time. Activity in Nigeria has shown signs of improvement since the gradual opening…

JOHANNESBURG (Capital Markets in Africa) — In 2020, emerging market debt rocketed higher. Has necessary pandemic stimulus planted the seeds of future fiscal crisis? Bloomberg Economics’ analysis shows South Africa is vulnerable but Brazil, India, Indonesia, Mexico, and Russia are less exposed. Persistently low-interest rates partially offset the impact of higher borrowing. An increase in interest rates would raise the pressure, but from current low levels, the impact is likely manageable. Most of the debt…

NAIROBI (Capital Markets in Africa) — Kenya’s economy is expected to expand this year as activity resumes following Covid-19 lockdowns, boosting tax revenue and government spending. East Africa’s largest economy will probably expand 6.4% this year and growth will slow to 5.5% in 2022, with scheduled elections likely to dampen activity, Treasury said in a report on its website. The Treasury estimates that gross domestic product increased 0.6% in 2020, which would make it one…