The Editorial Team |

IMF Extends Ghana Oversight as Bailout Plan Gets Another Year

ACCRA (Capital Markets in Africa) – The International Monetary Fund approved a one-year extension of its credit-facility program with Ghana, lengthening the lender’s economic oversight of the West African nation which is battling to keep spending under control. The country’s Eurobonds rallied. The extension follows after the IMF completed a fourth review of an almost $1 billion assistance program with Ghana agreed to in April 2015, when chronic overspending and power cuts drained public finances and…

Death Threats, Court Case Mark Battle for South Africa’s ANC

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JOHANNESBURG (Capital Markets in Africa) – Death threats and court challenges mark an intensifying battle for control of South Africa’s ruling African National Congress as factions fight it out in the nation’s provinces before the party elects a new leader to replace Jacob Zuma. In the region with the most ANC members, KwaZulu-Natal, the high court is expected to rule next month on an application by party officials to overturn an 2015 election of provincial leaders…

Republic of Congo Eurobond Trustee Said to Announce Coupon Payment

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BRAZZAVILLE (Capital Markets in Africa) – Delaware Trust, Eurobond trustee for the Republic of Congo, issued statement Aug. 29 that $21 million of overdue principal and interest payments will be transferred to investors soon, according to two people familiar with the matter. People asked not to be named as they were not authorized to speak publicly. The statement said that Commissions Import Export, a contractor claiming it’s owed money from Republic of Congo’s government, has…

AfriSam Is Said to Be Talking to Partner to Secure PPC Deal

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JOHANNESBURG (Capital Markets in Africa) – AfriSam Group Pty Ltd. is in negotiations with an equity partner to recapitalize the company and enable South Africa’s second-biggest cement maker to push through a merger with larger rival PPC Ltd., according to two people familiar with the matter. Closely held AfriSam has a letter of intent from an investment company based in the Americas that’s willing to put up new funding, said the people, who asked not to…

Namibia Black-Ownership Plan Risks Copying S. African Errors

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WINDHOEK (Capital Markets in Africa) – A plan by Namibia, among the world’s most economically unequal nations, to better distribute wealth among its citizens may end up the way neighboring South Africa’s has — benefiting an elite minority. The nation is working on a law that will require all businesses to be at least a quarter owned by “racially disadvantaged people.” While only about 6 percent of Namibia’s 2.5 million citizens are white, they own most…

Nigerian Naira Is Overvalued by 20% vs USD Says Bank of America

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LAGOS (Capital Markets in Africa) – “A 20% depreciation in the NAFEX/NGN spot exchange rate is still needed to reach fair value, despite last year’s partial devaluation and the recent moves in key FX windows,” Bank of America analysts Yusuf Rukayat and Gabriele Foa say in a note to clients. They recommend avoiding naira debt, even with 1-year T-bills yielding 22% and FX-hedged trades yielding 12%. “While NGN carry is similar to EGP, we find…

South Africa’s Biggest Gold Miner Halts Dividends as Debt Builds

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JOHANNESBURG (Capital Markets in Africa) – Sibanye Gold Ltd. canceled its dividend after debt ballooned while it swung to a loss, marking a series of firsts for the South African producer that’s been one of the world’s top performers in its four-year history. Sibanye will focus on cutting borrowings after its $2.2 billion purchase of U.S. platinum-group metals producer Stillwater Mining Co. earlier this year, making the payment of a cash dividend “inappropriate,” the Johannesburg-based…

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