The Editorial Team |

Mozambique May Reject Eurobond Restructuring Plan, Exotix Says

MAPUTO (Capital Markets in Africa) – Mozambique might reject a debt proposal from a key group of holders of the southeast African nation’s Eurobonds as the plan excludes two other loans the government wants to restructure, Exotix Capital said. The so-called Global Group of Mozambique’s Bondholders last week presented a counter-proposal to Mozambique that provided nearly $1 billion of cash-flow relief until 2023, when the $727 million Eurobond falls due. The plan would also provide the…

Rand Needn’t Worry South Africa’s Central Bank, Study Concludes

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JOHANNEBURG (Capital Markets in Africa) – Who’s afraid of a weaker rand? Not the South African Reserve Bank, according to a new study examining the pass-through of currency fluctuations to inflation. The authors set out to find out why the correlation between the exchange rate and price growth has weakened in the past two decades, which coincided with South Africa adopting an inflation-targeting policy. They conclude that the central bank’s credibility is the main determinant. “Improving monetary-policy…

Nigerian Central Bank `in the Mood for Tightening,’ Nnanna Says

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LAGOS (Capital Markets in Africa) – The Nigerian central bank is “in the mood” for tightening and will increase its main interest rate if inflation doesn’t slow, Deputy GovernorJoseph Nnanna said. “Every member of the Monetary Policy Committee is certain that the monetary policy rate should increase if inflationary pressures build up,” Nnanna said Monday, speaking on the sidelines of a conference in the resort city of Sharm El-Sheikh in Egypt. “Our intention is to ensure that the…

Bullet-Train Pledge, Splits Cost Zimbabwe Opposition in Vote

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HARARE (Capital Markets in Africa) – As Zimbabwean opposition leader Nelson Chamisa considers mounting a legal challenge to last week’s election results, he’s also counting the cost of fissures within his alliance and campaign pledges that made him appear out of touch with voters. Emmerson Mnangagwa’s victory in the parliamentary and presidential ballots has left Chamisa’s Movement for Democratic Change without enough seats to prevent the ruling Zimbabwe African National Front-Patriotic Front from changing the constitution. It’s…

Shell Sees Gas as Answer in Nigeria After Decades of Oil Strife

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LAGOS (Capital Markets in Africa) – After decades of difficulties in Nigeria over crude theft, pollution and oil-related corruption, Royal Dutch Shell Plc still feels optimistic a fossil fuel can improve life in the country. The Anglo-Dutch oil major is seeking to develop Nigeria’s domestic energy market around natural gas. It’s plentiful, harder to steal, better for the environment and can underpin a robust industrial sector that could potentially employ thousands, according to Ed Ubong, the managing director of Shell…

Kenyan Central Bank Says Credit Market Failure Persists

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NAIROBI (Capital Markets in Africa) – Kenyan credit costs that prompted the introduction of interest-rate caps last year have remained high despite the government’s efforts, according to the central bank. Authorities in East Africa’s biggest economy instituted a 400 basis-point rate cap above the prevailing benchmark measure for commercial loans last year with the view to making credit more affordable. Instead, banks now lend only to the least risky clients and the government. “Some of the structural…

China Offers Infrastructure to Cement New Ties With Burkina Faso

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BURKINA FASO (Capital Markets in Africa) – Months after severing ties with Taiwan, Burkina Faso says it’s counting on Chinese money to get large infrastructure projects off the ground, including a key highway linking the West African nation’s two main cities. Burkina Faso broke off diplomatic relations with Taipei in May in favor of China, leaving only the tiny kingdom of Swaziland as the island’s last African ally and cutting the number of countries that…

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