The Editorial Team |

Bank Stocks Are Back in Vogue on Stimulus, Interest-Rate Outlook

LAGOS(Capital Markets in Africa) — Big U.S. banks have gone from losers to leaders in the stock market, rebounding from a pandemic-induced pummeling as investors anticipate a surge in federal spending in 2021 and look ahead to this week’s earnings-season kickoff. Whether they maintain that momentum depends on the success of President-elect Joe Biden’s agenda, Federal Reserve monetary policy and how quickly Covid-19 is brought to heel. Investors have been optimistic about economic growth, with…

South African Stocks Slip From Record as Global Rally Pauses

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JOHANNESBURG (Capital Markets in Africa) — South Africa’s main stocks index edged lower, retreating from Friday’s record close and set to fall for the first day in six. Mining stocks were among those dragging most on the market, giving up more of their recent rally. An index of mining stocks, up 12% already this year, retreated for a second session as diversified giant Anglo American Plc dropped 0.9% and BHP Group Plc fell 0.5%. A…

Tanzania Asks China for Debt Write-Off, Approves Rail Deal

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DAR ES SALAAM (Capital Markets in Africa) — Tanzania asked Beijing for debt relief and signed a new multibillion-dollar railway deal during Chinese Foreign Minister Wang Yi’s Africa tour. President John Magufuli asked for the cancellation of old debts totaling $167.7 million, according to the East African nation’s presidency. Earlier Friday, Tanzania signed a $1.32 billion rail-development contract with the China Civil Engineering Construction Corp. and China Railway Construction Corp. Several African nations are struggling to fund the…

Outlook Bleak for Nigeria Bonds With Real Yields Firmly Negative

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LAGOS (Capital Markets in Africa) — Negative real yields have sapped demand for naira bonds, and that’s unlikely to change over the coming months as the central bank keeps its policy rate low to boost economic growth. Returns on Nigerian local-currency bonds fell 14% in December after soaring 66% in the previous 11 months, according to a Bloomberg index tracking the debt, as investors snapped up yields that were in double digits for most of the year….

Zambia’s Fuel Subsidy Boost Hurts Chances of Winning Over IMF

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LUSAKA (Capital Markets in Africa) — Zambia’s move this month to further subsidize fuel prices highlights the government’s balancing act of seeking to retain power while convincing the International Monetary Fund to approve a bailout before an election scheduled for August. The finance ministry removed a 16% value-added tax on gasoline and diesel prices from Jan. 1, which it said was necessary to avoid increases at the pump. The IMF opposes subsidies and that could…

Globeleq Acquires Private Power Generation Company in Nigeria

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LAGOS (Capital Markets in Africa) Globeleq, a leading independent power generation company in Africa, has confirmed it will take a 74% majority equity stake in an existing Nigerian power business called CPGNL Limited (CPGNL), which will be rebranded as Globeleq Power Solutions Nigeria Limited. The current owner of the business, the Clean Energy Group, will retain the remaining 26% shares. CPGNL has a portfolio of assets that serve commercial and industrial customers mostly in the…

Ultra-Low Interest Rates Here to Stay: 2021 Central Bank Guide

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LAGOS (Capital Markets in Africa) — Central banks are set to spend 2021 maintaining their ultra-easy monetary policies even with the global economy expected to accelerate away from last year’s coronavirus-inflicted recession. In Bloomberg’s quarterly review of monetary policy that covers 90% of the world economy, no major western central bank is expected to hike interest rates this year. China, India, Russia, and Mexico are among those predicted to cut their benchmarks even further. Only…

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