The Editorial Team |

Nigeria at Risk of Losing $15 Billion of Crisis-Era Bad Loans

LAGOS (Capital Markets in Africa) – Nigeria is facing the risk of never recovering about 5.5 trillion naira ($15 billion) of bad loans taken over during a banking crisis more than a decade ago. That is how much the state-owned Asset Management Corp., or Amcon, still has to collect from Nigerian companies that have failed to repay the debts they once owed lenders, Chief Executive Officer Ahmed Kuru said at a conference in Lagos on Wednesday. Delays in…

Missing Their Inflation Goals, Central Banks Study Moving Posts

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LAGOS (Capital Markets in Africa) – Struggling to hit their targets for inflation, central banks around the world are debating whether they need to alter what they’re aiming for. From the Federal Reserve to the European Central Bank, officials are studying their current strategies and whether they need to be changed to revive inflation as it keeps undershooting the levels deemed to represent price stability. Here’s a rundown of what some central banks are talking about: Federal Reserve…

South Africa’s Credit Risk Falls as Investors Assess Eskom Plan

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JOHANNESBURG (Capital Markets in Africa) – A pocket-busting rescue plan for Eskom Holdings SOC Ltd. is better than no plan at all. That seems to be the message from investors after Finance Minister Tito Mboweni on Tuesday unveiled a second multi-billion dollar bailout for the struggling state-owned electricity company. That may force the cash-strapped government to increase borrowing and taxes, putting the nation’s credit rating at risk. Even so, the cost of insuring South Africa’s government debt against default gapped lower…

When Nigerian Bond Yields Are at 14% Nobody Wants Equities

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LAGOS (Capital Markets in Africa) – Nigerian stocks have next to no chance of success when they’re competing for capital against one of the emerging world’s highest bond yields. Weighed down by concern over Nigeria’s economic growth, the prospect of rising bad loans at banks and thinning profit margins, stock inflows have slowed, despite valuations near the cheapest since 2011. That contrasts with the billions pouring into government bonds, which yield 14% on average. Even though Nigerian stocks…

Tullow Reduces Oil-Production Outlook Again on Ghana Faults

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ACCRA (Capital Markets in Africa) – Tullow Oil Plc reduced its 2019 production forecast for the second time in three months as technical glitches in Ghana continued to cast a shadow. Full-year output is now seen at 89,000 to 93,000 barrels of oil a day, reflecting delays in well completion at the African country’s TEN project, Tullow said Wednesday. It’s a further setback for a company that relies on the continent for more than 90% of…

Kenya Central Bank Leaves Benchmark Rate Unchanged at 9%

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NAIROBI (Capital Markets in Africa) – Kenya’s central bank kept its benchmark interest rate unchanged for a sixth consecutive time, saying inflation expectations remain well-anchored. The Monetary Policy Committee held the rate at 9%, Governor Patrick Njorogesaid Wednesday in a statement in the first rates decision since his reappointment for a second term. That was in line with the forecast of all six economists in a Bloomberg survey. Key Insights: The unchanged stance comes even as…

Nigeria Central Bank Holds Key Interest Rate to Fight Inflation

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LAGOS (Capital Markets in Africa) – Nigeria’s central bank kept its benchmark interest rate on hold to battle persistently high inflation even as it seeks to boost lending to grow the economy. The Monetary Policy Committee unanimously decided to hold the rate at 13.5%, Governor Godwin Emefiele told reporters Tuesday in the capital, Abuja. All but one of the six economists in a Bloomberg survey forecast the unchanged stance and one predicted a 50 basis-point cut. Key…

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