The Editorial Team |

Transnet Overpaid $38 Million for Locomotives, Report Says

JOHANNESBURG (Capital Markets in Africa) – Transnet SOC Ltd., South Africa’s state-owned rail and ports operator, paid 509 million rand ($38 million) more for 100 locomotives after switching a supply contract to a Chinese rail company from Mitsui & Co. of Japan, according to a report commissioned by the National Treasury. The finding is part of an investigation into so-called state capture, in which private individuals used influence over government officials to win contracts from…

Rough Quarter at the Frontier Leaves Top Bond Investor Unfazed

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LAGOS (Capital Markets in Africa) – Danish money manager Morten Bugge, battered by three months of carnage in frontier bond markets, says his appetite is intact — especially for Africa. Bugge, who’s beaten 96 percent of peers in five years, succeeded in betting exclusively on these less-developed markets by buying mostly local-currency debt. His theory: most foreigners steer clear and low duration makes it less sensitive to twitchy U.S. Treasuries. Though his $343 million Global Evolution Emerging…

SocGen, BNP Said Among Banks Exposed to Ivorian Cocoa Firm

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ABIDJAN (Capital Markets in Africa) – Lenders in Ivory Coast are threatening to stop financing cocoa exports unless the government halts the liquidation of a local shipping company, with units of BNP Paribas SA and Societe Generale SA among banks exposed to debt that may not be repaid, according to people familiar with the matter. Banks and the government are continuing talks after a court on July 18 ordered the liquidation of Saf-Cacao, which two years ago was the country’s second-biggest…

Nigeria Ruling APC Bleeds as Key Figures Drop Buhari Before Vote

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LAGOS (Capital Markets in Africa) – Nigerian leader Muhammadu Buhari lost a key supporter in his northern stronghold, a day after the senate president walked out of the ruling party amid a wave of defections to a swelling opposition movement ahead of elections in February. The governor of north western Sokoto state, Aminu Tambuwal, left the All Progressives Congress to join the People’s Democratic Party, which ruled Nigeria for 16 years until Buhari’s 2015 win, the governor’s…

South Africa’s ANC Resolves to Change Constitution on Land

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s ruling party decided to complete a proposed amendment to the nation’s constitution to make it clearer under what conditions land can be expropriated without compensation, prompting the rand to weaken. This brings the African National Congress closer to the populist Economic Freedom Fighters party, after the ANC said earlier that land redistribution will only be done in a manner that doesn’t harm the economy, agricultural production or…

Protests Erupt in Zimbabwe After Ruling Party Wins Landslide

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HARARE (Capital Markets in Africa) – Sporadic violence erupted in Zimbabwe’s capital after the ruling party secured a landslide win in the first parliamentary election of the post-Robert Mugabe era that Western observer groups said was marred by abuses. The verdict by monitors from the European Union and the U.S. is likely to dent President Emmerson Mnangagwa’s drive to attract investors to rebuild the southern African nation, which is still reeling from two decades of misrule and…

Kenya’s MPC Cuts Rates to Spur ‘Below-Potential’ Economic Growth

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NAIROBI (Capital Markets in Africa) – The Central Bank of Kenya unexpectedly cut its key policy rate by 50 basis points to 9% today, citing well-anchored expectations of inflation and growth below its potential. The decision was against our forecast and the median forecast of economists in a Bloomberg survey for no change. Well-anchored inflation expectations and below potential economic output gives room for accommodative monetary policy, according to MPC. Food and fuel costs are…

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