The Editorial Team |

Cisco-backed Harambe Raises Fund to Support African Tech Firms

LAGOS (Capital Markets in Africa) — Harambe Entrepreneur Alliance, whose backers include Cisco Systems Inc. and a foundation of South African businessman Jonathan Oppenheimer, has raised $1 million to support its African technology startups and help kick-start the return of venture capital to the continent following the coronavirus outbreak. The group has allocated about $100,000 each for two Nigerian companies to help them through economic downturns caused by the pandemic, Harambe Chairman Okendo Lewis-Gayle said in a…

South Africa’s Central Bank Rules Out Financing Government

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JOHANNESBURG (Capital Markets in Africa) — South Africa’s central bank ruled out helping the government fund its runaway budget deficit by paying for its spending through loans, as the ruling party debates using the institution to fund infrastructure and development. “We do not think it is prudent to finance government directly,” Kuben Naidoo, a Reserve Bank deputy governor, said on a conference call hosted by money manager Ninety One. “It would increase inflation risks. It…

Angola in Talks With Oil-Importing Partners to Reprofile Debt

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LUANDA (Capital Markets in Africa) — Angola, Africa’s second-biggest oil producer, is in talks with some of its crude-importing partners to reprofile its debt and has joined a separate initiative to negotiate the suspension of bilateral debt payments. The move will help Angola tackle the pressures caused by the coronavirus pandemic, the recent drop in oil prices and production cuts agreed by the Organization of the Petroleum Exporting Countries. Angola’s government debt is set to…

South African Court Declares Lockdown Rules Unconstitutional

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JOHANNESBURG (Capital Markets in Africa) — A South African court ruled that revised lockdown regulations implemented by the government as part of a phased reopening of the economy are unconstitutional and invalid, giving the state two weeks to amend them. The Gauteng Division of the High Court made the ruling earlier on Tuesday, Cabinet spokeswoman Phumla Williams said in an emailed statement. The decision applies to all regulations excluding the closing of South Africa’s borders and the…

With Virus Crisis Receding, Poor-Nation Debt Relief Stalls

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LAGOS (Capital Markets in Africa) — A debt-relief initiative for poor nations is losing momentum as credit premiums narrow and lenders balk at the complexities of a concerted halt in payments. Private creditors won’t rush to join a G-20 led the effort to ease debt burdens, while borrowers may also be wary of joining the plan as their economies heal after the coronavirus-led selloff, potentially improving market access for issuers. Defaults may still pick up…

Kenyan Banks Seen Sheltering in Bonds as Virus Slows Lending

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NAIROBI (Capital Markets in Africa) — Kenya’s banks are likely to issue fewer loans this year and boost investments in government debt to safeguard earnings under threat from the fallout of the coronavirus. That’s the assessment of some analysts after the East African nation’s lenders released first-quarter results that showed lower profit, a surge in loan-loss provisions and a wave of debt restructurings. An economic slowdown is reducing demand for credit, leaving banks with little…

In Nigeria, Naira Wealth Doesn’t Always Mean Getting Dollars

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LAGOS (Capital Markets in Africa) — In Africa’s biggest economy, the hunt for dollars could threaten the survival of many manufacturers, even when they have a lot of nairas. The Central Bank of Nigeria has been rationing foreign exchange in efforts to protect the local currency amid the crash in oil prices and coronavirus outbreak. It only resumed weekly dollar sales of $100 million for small businesses and expenses such as tuition late in April. That means…

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