The Editorial Team |

U.S. Move on Hong Kong Leaves Trump With Tough-or-Gentle Options

NEW YORK (Capital Markets in Africa) — The U.S. finding that China has effectively stripped Hong Kong of its political autonomy leaves President Donald Trump with a difficult choice about how harshly to penalize Beijing. He could take a lighter touch with modest sanctions aimed at putting China on notice. Or he could unleash a far harsher approach that would curtail the former U.K. colony’s special trading status with the U.S., potentially imperiling its position…

Nigeria Kicks Off Power Sector Revamp Agreement With Siemens

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LAGOS (Capital Markets in Africa) — Nigeria President Muhammadu Buhari has kicked off the next phase of a deal with Siemens AG to upgrade the nation’s dilapidated power infrastructure. The government of Africa’s largest economy and the German engineering firm signed an agreement last July to rehabilitate and then expand the country’s electricity grid. Only about 60% of residents have access to power and even those who do are plagued by regular blackouts. Buhari directed…

Kenya Central Bank Holds Key Interest Rate After Four Cuts

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NAIROBI (Capital Markets in Africa) — Kenya’s central bank maintained its benchmark interest rate to allow the effects of four consecutive cuts filter to the economy. The monetary policy committee retained the rate at 7%, Governor Patrick Njoroge said in an emailed statement Wednesday. That matched the projection of one of the three economists in a Bloomberg survey. The panel has reduced the rate by 200 basis points since November. Key Insights: The decision was a “surprising…

Carlyle Spins Out African Team as It Ends Plans for New Fund

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JOHANNESBURG (Capital Markets in Africa) — Carlyle Group Inc. is spinning out its sub-Saharan African team to a new company formed by the managers of its $700 million regional fund, according to a person with direct knowledge of the matter. The alternative asset manager is hiving off the fund after deciding against raising a follow-on fund to the one it closed in 2014, most of which has been invested, the person said, asking not to…

Nigerian Bourse CEO Sees Further Delays in IPOs Amid Virus

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LAGOS (Capital Markets in Africa) — The Nigerian Stock Exchange expects more delays in initial public offerings as the coronavirus pandemic weighs on Africa’s second-biggest market, according to the chief executive. “We don’t think we will see IPOs in the short term, given some of the uncertainties Covid-19 has brought,” CEO Oscar Onyema said at a virtual conference on Wednesday. Companies seeking to raise capital are showing a preference for rights issues and private placements,…

Equity Group’s Profit Tumbles as Provisions at Kenyan Bank Soar

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Nairobi (Capital Markets in Africa) — Kenya’s biggest bank by market value boosted provisions for loan losses more than sevenfold in the first quarter as the coronavirus struck East Africa’s largest economy. Equity Group Holdings increased provisions to 3.12 billion shillings ($29 million) compared with 410 million shillings a year earlier, while the board decided to withdraw its 2019 dividend to conserve cash during the pandemic, the Nairobi-based lender said in a statement on Thursday. First-quarter…

Zambia Chooses Lazard as Financial Adviser for Debt Restructure

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LUSAKA (Capital Markets in Africa) — Zambia appointed Lazard Freres as financial adviser to help it restructure its external debt, the Finance Ministry said. The contract is worth $5 million and will last three years, the ministry said in a statement on Wednesday. “The government has no intention of unilaterally restructuring debt without consulting creditors,” Treasury Secretary Fredson Yamba said in the statement. “We will respect agreements and diligently use market-based instruments in our debt…

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