The Editorial Team |

Ghana Bond Yields Rise Most in Four Months as Deficit Widens

ACCRA, Ghana, Capital Markets in Africa: Yields on Ghana’s bonds surged the most in four months after Finance Minister Seth Terkper said the West Africa nation will increase spending even as a budget deficit is seen widening due to lower revenues from oil. Yields on Ghana’s $1 billion of Eurobonds due August 2023 rose 35 basis points to 10.06 percent at 2:37 p.m. in the capital, Accra, the most on a closing basis since April 5. The country’s…

Nigeria Raises Key Interest Rate to Lure ‘Lukewarm’ Investors in July

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LAGOS, Nigeria, Capital Markets in Africa: Nigeria raised its monetary policy rate to lure foreign investors and prop up its currency, even as the economy risks slipping into recession. The Monetary Policy Committee increased the key lending rate to 14 percent from 12 percent, Central Bank of Nigeria Governor Godwin Emefiele told reporters in the capital, Abuja, on Tuesday. That was in line with the forecast of two of the 15 economists in a Bloomberg survey. Two predicted a 100 basis-point…

South Africa Is a ‘Fire Sale’ for Tourists After Rand Rout

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South Africa, Capital Markets in Africa: Tourists are flocking back to South Africa’s game parks, beaches and vineyards as a weaker currency and easing of visa rules make holidays cheaper and more accessible. The number of visitors to South Africa from outside the continent increased by 19 percent over the five months through May, the Tourism Ministry said on July 20. The surging popularity among travelers from markets including the U.S. and Germany can be largely attributed…

South Africa Local-Currency Debt Rating Downgraded by Fitch

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South Africa, Capital Markets in Africa: Fitch Ratings downgraded South Africa’s local-currency debt one level to move it into line with the foreign-currency rating, bringing the nation’s 1.7 trillion rand ($118 billion) of domestic debt a step closer to junk level. The one-step cut to BBB-, the lowest investment grade, was part of a review of Fitch’s local-currency assessments, applying new criteria that resulted in downgrades for 23 issuers, the company said in a report that was…

Mozambique | Plunging Tuna Bonds Wreck Africa’s Most Promising Economy

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MAPUTO, Capital Markets in Africa: Even by the standards of Africa, it’s been a wild ride for Mozambique. There’s little sign it will end well. Blowing through more than $2 billion of borrowed money just as the currency and the price of commodity exports plunged has left the former Portuguese colony with near-empty coffers. Its creditors, which bought debt sold by Credit Suisse Group AG and VTB Group, may be left holding the bag. Nor does it help…

Nigeria | Decade’s Peak Inflation Deepens Dilemma for Nigeria in Slump

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LAGOS, Nigeria, Capital Markets in Africa: Caught between the highest inflation rate in more than a decade and an economy set to contract for the first time since 1991, Nigeria’s central bank may opt to do nothing. Governor Godwin Emefiele is under pressure to limit inflation, which accelerated to almost double the upper end of the central bank’s target range last month, while the economy will probably contract by 1.8 percent this year, according to the International Monetary…

Fitch: Global Sovereign Rating Changes From Criteria Update

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LONDON, Capital Markets in Africa: Fitch Ratings published on Friday 22 July a review of its entire sovereign rating portfolio, incorporating changes to ratings derived from the application of its revised Sovereign Rating Criteria (dated 18 July 2016). The review focused on the notching relationship between sovereign Long-Term Local Currency (LTLC) and Long-Term Foreign Currency (LTFC) Issuer Default Ratings (IDRs), a review of existing Short-Term Foreign Currency (STFC) IDRs and the assignment of new Short-Term…

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