The Editorial Team |

Banks Cashing In as Zambia Pursues Costly Borrowing Path

LUSAKA (Capital Markets in Africa) – Zambia’s government debt is yielding as much as 33% thanks to a widening budget deficit, and there’s one clear winner: local banks, which are reaping record profits. Standard Bank Group Ltd.’s Zambian unit earned more in the country in 2019 than any lender ever has, according to a statement by the company, Stanbic Bank Zambia Ltd. That’s partially due to rising interest income from holdings of government securities, and in a…

Kenya Favors Domestic Loans After Dollar-Debt Binge Proves Risky

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NAIROBI (Capital Markets in Africa) – Kenya will rely on domestic borrowing to fund budget deficits in a new debt-management strategy to reduce the fiscal risks arising from a binge on Eurobonds and syndicated loans. Treasury officials of East Africa’s biggest economy are targeting domestic borrowing at 72% of the total in the next three fiscal years, according to a medium-term debt-management strategy presented to lawmakers on Thursday. That compares with a previous three-year target…

Botswana Seeks New De Beers Diamond Sales Deal by End-April

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GABORONE (Capital Markets in Africa) – Botswana plans to conclude negotiations with De Beers on a diamond sales agreement by the end of April to replace the current 10-year deal that expires in January. The government wants to see more gems cut and polished within the borders of the world’s second-biggest biggest diamond producer, creating jobs and boosting the state coffers, according to Lefoko Moagi, the minister of mineral resources, green technology, and energy security….

Fitch Says Ramaphosa Speech Flags South Africa Credit Challenges

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JOHANNESBURG (Capital Markets in Africa) – The challenges to South Africa’s credit outlook was highlighted by President Cyril Ramaphosa’s state-of-the-nation address, Fitch Ratings said. While Ramaphosa promised progress in his speech on Thursday, he offered only partial detail on key policy areas, including stabilizing the electricity sector, improving public finances, accelerating economic growth and land reform, the rating company said in an emailed statement on Friday. Ramaphosa announced changes to the nation’s electricity industry to…

Sibanye Sees Profit on Metals Rally With Dividends in Sight

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LAGOS (Capital Markets in Africa) – Sibanye Gold Ltd. said it swung to an annual profit last year, bringing the company another step closer to resuming dividend payouts. Sibanye is among South African producers benefiting from a rally in platinum, palladium and rhodium prices and a weaker South African rand that lowers costs for producers. Chief Executive Officer Neal Froneman said last month Sibanye may declare its first dividend in three years in August. The world’s largest platinum miner expects…

AfDB Says World Bank Critique on Lending Habits ‘Misleading’

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LAGOS (Capital Markets in Africa) – The African Development Bank said the criticism that World Bank President David Malpass levied against the multilateral lender and similar institutions for lending too easily to heavily indebted countries were misleading. Malpass voiced his concern over the practices of lenders that also include the Asian Development Bank and the European Bank for Reconstruction and Development at a World Bank-International Monetary Fund forum in Washington on Monday, saying some were worsening already-challenging debt situations,…

Why and Why Now? Two of Ramaphosa’s South Africa Plans Shot Down

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JOHANNESBURG (Capital Markets in Africa) – New ideas are hard to come by, so it was a case of deja vu for many investors when President Cyril Ramaphosa again touted the idea of a state-owned South African bank and sovereign wealth fund. The desire for the country’s wealth, minerals, land and its banks to be owned and shared by all South Africans harks back to 1955 when the now ruling African National Congress and allies against racial…

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