U.S. Mulls Sanctions on Chinese Officials, Firms Over Hong Kong

U.S. Mulls Sanctions on Chinese Officials, Firms Over Hong Kong

NEW YORK (Capital Markets in Africa) — The U.S. is considering a range of sanctions to punish China for its crackdown on Hong Kong, people familiar with the matter said, as the Trump administration weighs whether to declare the former colony has lost its autonomy from Beijing. The Treasury Department could impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights…

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Rewane, Akeredolu, and the Cannabis Economy [opinion]

Rewane, Akeredolu, and the Cannabis Economy [opinion]

LAGOS (Capital Markets in Africa) — According to the Minister of Finance, Nigeria will experience a further economic recession due to the COVID-19 pandemic. It goes without saying that the economy has been adversely affected by the collapse of oil prices and demand coupled with the partial lockdown implemented to curb coronavirus spread. The economic impact of the virus worldwide is expected to far outweigh the medical impact. For example, in the US, the virus…

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Why There’s a Looming Debt Crisis in Emerging Markets: QuickTake

Why There’s a Looming Debt Crisis in Emerging Markets: QuickTake

LAGOS (Capital Markets in Africa) — Solvency concerns in the developing world are nothing new. But as governments stare down the humanitarian and economic shocks of the coronavirus pandemic, some emerging markets with weak financial positions are at greater risk of defaulting on their debts. More than 100 nations have asked the International Monetary Fund for help, and the Institute of International Finance is coordinating an effort to offer some relief to the poorest countries….

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Burundi Ruling Party Candidate Wins Vote Rejected by Rival

Burundi Ruling Party Candidate Wins Vote Rejected by Rival

BURUNDI (Capital Markets in Africa) — Burundian ruling party candidate Evariste Ndayishimiye won the nation’s presidential election, which was marred by violence and health concerns because of the coronavirus outbreak. The outcome was immediately rejected by the opposition. Ndayishimiye won with 68.7% of the ballots cast on May 20, according to the Independent National Electoral Commission. His main rival, Agathon Rwasa, got 24.2%, the commission announced on Monday. Rwasa’s National Freedom Council rejected the results, alleging…

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‘Crusader’s Nightmare’ or Not, Virus Threatens African Security

‘Crusader’s Nightmare’ or Not, Virus Threatens African Security

LAGOS (Capital Markets in Africa) — To hear jihadist militants tell it, the coronavirus is an opportunity not to be missed. With governments worldwide focused on the crisis, Islamist groups insist the time is ripe for increased attacks, and they say their followers are getting the message, especially in fragile African countries. Islamic State has dubbed the outbreak “the crusader’s worst nightmare,” urging adherents to take up arms. The leader of Nigeria’s Boko Haram terrorist…

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Absa Warning Casts Doubt on S. African Banks’ 2020 Dividends

Absa Warning Casts Doubt on S. African Banks’ 2020 Dividends

JOHANNESBURG (Capital Markets in Africa) — Absa Group’s warning that it may scrap its dividend for 2020 is unlikely to be the last from South African banks hard hit by the fallout from the coronavirus pandemic. “Banks won’t have certainty on their capital and liquidity positions until later in the year,” Nolwandle Mthombeni, an analyst at Mergence Investment Managers in Cape Town, said by phone. “So they might take a prudent approach.” While South Africa’s four…

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South Africa’s Development Bank Seeks Loans to Plug Funding Gap

South Africa’s Development Bank Seeks Loans to Plug Funding Gap

JOHANNESBURG (Capital Markets in Africa) — Development Bank of Southern Africa is in talks with multilateral lenders and commercial banks to help plug a funding gap as disruptions in debt capital markets hinder its ability to sell bonds. The bank needs the extra financing to keep disbursing loans as demand jumps from countries trying to cope with the fallout from the coronavirus pandemic, DBSA Chief Executive Officer Patrick Dlamini said on a video call. Potential lenders include…

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