The Editorial Team |

Egypt Forms Multi-Donor Platform to Help Boost Economy

CAIRO (Capital Markets in Africa) — Egypt has formed a multi-donor platform to help boost the North African nation’s economy, Minister of International Cooperation Rania Al Mashat said. The program “includes electricity, transportation, the health sector,” Al Mashatsaid in an interview with Bloomberg TV on Monday. The platform received help and support “through the sovereign, but also through the private sector, through credit lines, through Egyptian banks that are availed through the EBRD and the EIB,”…

Good and Bad News for Nigeria’s Economy Last Week

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LAGOS (Capital Markets in Africa) — Africa’s largest economy had a week of good and bad news as the oil price rebounded to the highest level in two months, while the negative impact of the coronavirus pandemic on consumers and business activity became clearer. Crude prices have doubled since hitting a two-decade low in April, climbing past $40 a barrel after OPEC+ cuts started taking excess supplies from the market. With oil bringing in 90%…

Ninety One Raising Fund for Virus-Hit South African Firms

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JOHANNESBURG (Capital Markets in Africa) — Ninety One Plc is raising a recovery fund to invest in South African companies struggling with the economic fallout from the spread of coronavirus. The firm is targeting 10 billion rand ($595 million) and will market the fund to institutional investors in South Africa, according to a statement from the firm. The Ninety One SA Recovery Fund will invest in public and private equity as well as debt, with…

Africa Has to Weather Covid Trauma Without Massive Stimulus

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LAGOS (Capital Markets in Africa) — For advanced economies dealing with economic disruptions from the coronavirus pandemic, the response of choice has been massive stimulus packages. Africa is doing without them. While central banks and governments in North America, Asia and Europe have offered trillions of dollars to prop up businesses hit by lockdowns and provide a safety net for the swelling ranks of the unemployed, a lack of liquidity restricts African governments from providing…

South African Banks at Risk of Deepest Profit Slump in 50 Years

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JOHANNESBURG (Capital Markets in Africa) — South African banks face the steepest earnings slump in half a century — with some posting losses — as measures to curb the coronavirus drag the economy deeper into recession and lead to a surge in bad debts. “I have looked at each and every crisis in the last fifty-odd years and there is nothing this severe,” said Corné Conradie, an actuary and partner at auditing and consultancy firm…

Virus Spreads as Africa Re-Opens; Investors Aren’t Worried

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LAGOS (Capital Markets in Africa) — Investors are piling into African assets as if the coronavirus pandemic never happened. Even as questions hang over whether governments in the region will be able to sustainably address the economic and health consequences of the pandemic, stock markets, currencies and bonds have been on a tear since at least the beginning of May. Investors are looking past the risks as an unprecedented stimulus by governments and central banks…

A Red Line Crossed: South Africa Seeks Aid From the IMF

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JOHANNESBURG (Capital Markets in Africa) — The economic calamity of the coronavirus broke South Africa’s resistance to borrowing from the International Monetary Fund. And now some allies of President Cyril Ramaphosa and his ruling African National Congress worry that the $4.2 billion loan his government is negotiating with the Washington-based agency marks the first step toward a slippery slope of submission. “This is a precursor because Cyril’s government doesn’t have the resources,” said Lumkile Mondi, an economics…

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