Drought Delays Crop Planting in Kenya, Stoking Inflation

Drought Delays Crop Planting in Kenya, Stoking Inflation

NAIROBI (Capital Markets in Africa) – A prolonged dry spell in Kenya has delayed planting of crops in the East African country, increasing inflationary pressures from higher food prices. “Late onset of the 2019 long rains and prevailing dry conditions affected the early planted crop,” the Ministry of Agriculture said in a statement on its website. The resultant shortage of food in some areas caused prices of corn, beans and wheat to increase slightly, the…

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Ecobank Breaks 18-Month Nigerian Hiatus by Selling Eurobonds

Ecobank Breaks 18-Month Nigerian Hiatus by Selling Eurobonds

LAGOS (Capital Markets in Africa) – Ecobank Transnational Inc. sold $450 million of Eurobonds Thursday at yields that rank among the highest from emerging markets this year, the first debt sale from a lender with shares listed on the Nigerian stock exchange in 18 months. One of Africa’s most geographically diverse banks issued five-year senior unsecured notes priced at 9.75 percent, Renaissance Capital, one of the arrangers, said in a statement. The funding will help the lender to…

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Ghana’s Cedi Back Where It Belongs After Drop, Governor Says

Ghana’s Cedi Back Where It Belongs After Drop, Governor Says

ACCRA (Capital Markets in Africa) – Ghana’s cedi has recovered to levels that appropriately reflect the state of the economy after “overshooting” during a slump in the first quarter, according to the head of the central bank. The currency of West Africa’s second-biggest economy collapsed as much as 16 percent against the dollar after offshore holders of domestic debt failed to roll back their maturing investments at the same time as when the central bank was…

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South African MPC Remains Steadfast on CPI Target Midpoint

South African MPC Remains Steadfast on CPI Target Midpoint

JOHANNESBURG (Capital Markets in Africa)  – The South African Reserve Bank is steadfast that it wants to see inflation expectations anchored at the 4.5 percent midpoint of its target range, Governor Lesetja Kganyago said. While the central bank unexpectedly raised its key rate to 6.75 percent in November, its current policy stance remains accommodative with the benchmark rate still below neutral, Kganyago said in an interview on Thursday with Bloomberg Television in Washington. Consumer inflation was below…

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Seplat, NNPC to Raise $700 Million for Gas Plant Due in 2020

Seplat, NNPC to Raise $700 Million for Gas Plant Due in 2020

LAGOS (Capital Markets in Africa)  – Seplat Petroleum Development Co. and Nigeria’s state oil company will raise $700 million for a joint gas project scheduled to start production next year as the government steps up plans to reduce the country’s reliance on oil. The project, known as Assa North-Ohaji South, is one of seven to boost gas production and infrastructure development in the West African nation, the continent’s biggest producer of crude. ANOH Gas Processing Co., which…

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De Beers CEO Says Latest Sale Shows Small-Gem Demand Stabilizing

De Beers CEO Says Latest Sale Shows Small-Gem Demand Stabilizing

JOHANNESBURG (Capital Markets in Africa)  – De Beers’ Chief Executive Officer said an improvement in diamond sales demonstrates that the poor demand for smaller stones that has plagued the company and its competitors in recent months is stabilizing. Bruce Cleaver, the CEO of the world’s biggest diamond company, said the poor demand for stones valued at less than $100 a carat has been due to a surfeit of supply, currency weakness in India and the…

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Currency Chaos That Felled Sudan Leader Is Lesson for Maduro

Currency Chaos That Felled Sudan Leader Is Lesson for Maduro

KHARTOUM (Capital Markets in Africa)  – For autocratic leaders seeking lessons from the toppling of Sudanese President Omar al-Bashir, avoiding a currency crisis may be the key to survival. It’s the same problem that did for long-standing rulers from Angola to Zimbabwe and may yet claim Venezuela’s Nicolas Maduro. Al-Bashir, who the military ousted on Thursday to end 30 years of rule, faced months of protests against the government’s economic mismanagement, repression and corruption. One of the…

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