The Editorial Team |

Ghana’s Shutdown of Second-Tier Lenders Seen Risking 4,000 Jobs

ACCRA (Capital Markets in Africa) – The central bank announced last week it had revoked the licenses of savings and loans companies as well as finance houses and appointed a receiver to manage their affairs. The steps marked the end of an industry cleanse of lenders and second-level financial institutions that started in August 2017 and cost the government at least 12 billion cedis ($2.2 billion) in bonds and cash to cover depositors’ holdings. The…

Seriti Resources Is Said to Win Bid for South32 Coal Assets

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JOHANNESBURG (Capital Markets in Africa) – Seriti Resources, a South African mining company, won a bid to acquire South32 Ltd.’s thermal-coal assets in the country, according to two people familiar with the process. Final offers were in a range of $300 million to $350 million, according to one of the people, who asked not to be identified because the information isn’t public. South32 started a search last year for buyers of its South Africa Energy Coal…

IMF Rumors May Be the Scare That South Africa Needs for Action

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JOHANNESBURG (Capital Markets in Africa) – The threat of an International Monetary Fund bailout, unthinkable a few years ago, may force South Africa’s government to push through the reforms it needs to rescue the economy. An expanded bailout for struggling power utility Eskom Holdings SOC Ltd. and calls from other state companies for support have strained the nation’s budget, prompting business groups and analysts to warn the country could be pressed to ask the IMF to help…

Yields Rush to Rescue of One of World’s Worst Stock Markets

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LAGOS (Capital Markets in Africa) – Nigerian stocks may be among this year’s worst performers, but that’s at least boosting the appeal of their yields. The benchmark index in Africa’s biggest oil producer has fallen 14% this year, making it the fourth-worst among 94 major bourses tracked by Bloomberg. The slump underscores foreign investors’ frustration over a lack of policy progress since President Muhammadu Buhari won re-election in February. Despite the gloomy picture, a global abundance of…

Shoprite Sees Persistent Woes Outside South African Market

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JOHANNESBURG (Capital Markets in Africa) – Shoprite Holdings Ltd. will look to cut costs outside its home market as Africa’s largest food retailer battles currency shortages and stricter regulation in several countries. The owner of supermarket chains such as Checkers and U-Save has been growing in 14 territories outside South Africa to become a continent-wide superpower, but factors such as inflation — particularly in Angola — have hampered progress. That contributed to a 20% decline in…

Trump Says He Can Order Capital Gains Tax Break Without Congress

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NEW YORK (Capital Markets in Africa) – President Donald Trump said he can cut taxes by indexing capital gains to inflation without congressional approval, a move the White House has been considering for months that would largely benefit the wealthy. “We’ve been talking about indexing for a long time,” Trump told reporters at the White House on Tuesday. “And many people like indexing and it could be done very simply. It could be done directly by me.”…

Volatility Bogeyman Seen Lying in Wait With Event Risk Looming

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LAGOS (Capital Markets in Africa) – The decline in equity volatility from its early August highs looks overdone given the number of risk events that lie ahead, according to market participants. Federal Reserve meeting minutes, Fed Chair Jerome Powell’s speech at Jackson Hole and a slew of economic data from purchasing managers indexes to jobless claims are among those seen to have the potential to re-ignite price swings. The Fed is seen as the most…

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