The Editorial Team |

Zimbabwe’s Ncube Touts Economy Amid Shortages, Inflation Surge

HARARE (Capital Markets in Africa) – Zimbabwe’s Finance Minister Mthuli Ncube touted the health of his country’s economy even as the southern African nation experiences fuel shortages and the highest inflation rate since 2008. The government has put in place measures to liberalize the currency, curb spending and improve the management of state-owned companies he said in an interview with Bloomberg TV in Washington. Last month the country scrapped its insistence that local securities known as bond…

Nigeria’s Buhari Said to Be Mulling a New Central Bank Chief

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LAGOS (Capital Markets in Africa) -Nigerian President Muhammadu Buhari has come under pressure from his political allies to replace central bank Governor Godwin Emefiele when his term ends in June, according to people familiar with the matter. While Buhari has yet to make a final decision, he is mulling replacing Emefiele, a southerner, with a northerner, according to two people, who asked not to be identified as the matter is private. Emefiele would want a second term if he…

U.S. Probe and Credit Suisse Lawsuit Roil Mozambique Tuna Bonds

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MAPUTO (Capital Markets in Africa) – Mozambique’s Eurobonds have taken a turn for the worse. After ending 2018 as the biggest gainers among more than 70 countries in the Bloomberg Barclays Emerging Markets USD Sovereign Bond Index, they’re at the bottom so far this year. The $727 million of securities due in 2023 have lost 6.9 percent in price terms, which compares with the average return in emerging markets of 3.3 percent. The bonds have been in default…

Africa’s Biggest Money Manager Accused of Rewarding Cover-Ups

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JOHANNESBURG (Capital Markets in Africa) South Africa’s Public Investment Corp. rewarded employees with extra pay and bonuses for helping to cover up a culture of mismanagement and corruption at Africa’s biggest money manager, according to the former chief technology officer. While some dysfunction at the top of the PIC dates back to before departed Chief Executive Officer Daniel Matjila succeeded Elias Masilela more than four years ago, the situation got worse afterwards, Luyanda Ntuane said on Tuesday in the…

Stars Are Aligning for South African Rate Cut as Policy Tightens

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JOHANNESBURG (Capital Markets in Africa) – The “r-star” is pointing to a South African rate cut. That’s the suggestion from a study published by the South African Reserve Bank, which calculates that the country’s so-called neutral real rate, or R* in the jargon of economists, had fallen to about 1.9 percent by the end of 2017, from as high as 5.4 percent before the 2008 financial crisis. R* is the interest rate that would support…

Clover Managers Back Bidders With Africa Growth Plans

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JOHANNESBURG (Capital Markets in Africa) – Clover Industries Ltd. management plans to buy into the business alongside a group of investors that offered 4.8 billion rand ($338 million) to acquire South Africa’s largest publicly traded dairy-products manufacturer. If the transaction goes ahead, the Johannesburg-based company will expand into other African markets, Chief Executive Officer Johann Vorstersaid in a phone interview on Tuesday. A consortium led by Tel Aviv-based Central Bottling Co. offered 25 rand a share for Johannesburg-based Clover…

Mozambique Debt Restructuring to Continue as Scandal Grows

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MAPUTO (Capital Markets in Africa) – Mozambique will continue with restructuring talks over $2 billion of defaulted loans, the Ministry of Finance said, even as an international scandal around the debt intensifies. The $2 billion comprises three loans, one of which was converted into a eurobond, and another two that are guaranteed by the state. Mozambique in November announced an agreement in principal with investors to restructure its $727 million eurobonds that would see debt-holders…

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