The Editorial Team |

Ghana Cedi Falls Second Month as Growth Spurs Dollar Demand

GHANA, Capital Markets in Africa: Ghana’s cedi is heading for a second straight month of losses against the dollar as acceleration in economic growth boosts demand for dollars to pay for imports. The currency of the world’s second-biggest cocoa producer weakened 3 percent in June after sliding 0.7 percent in May, the first instance of back-to-back monthly losses since November. The cedi fell 1 percent to 3.9550 per dollar by 11:55 a.m. on Thursday in…

Kenya Will Begin Constructing Its Crude Oil Pipeline in 2018

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KENYA, Capital Markets in Africa: Kenya will start the construction of an 865-kilometer (538-mile) crude oil pipeline linking fields in its northern region to a new port being built along its Indian Ocean coastline within two years, a government official said. The government is evaluating bids for the pipeline’s design and will award a so-called front-end engineering design contract in October, Ministry of Energy and Petroleum Principal Secretary Andrew Kamau said. “Once we have the pipeline design, the engineering,…

Mozambique’s Foreign Investment Slumps by 35% in First Quarter

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MOZAMBIQUE, Capital Markets in Africa: Foreign investment flows into Mozambique fell 35 percent in the first quarter, putting pressure on the nation’s balance of payments and exchange rate, Finance Minister Adriano Maleaine said. Investors brought in $650 million in the first three months compared with $1 billion a year ago, Maleiane told members of the ruling Mozambique Liberation Front, or Frelimo, on Wednesday in the capital, Maputo. “Foreign direct investment used to be an important source of…

South Africa Ratings Cut Could Complicate Reserve Bank’s Task

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SOUTH AFRICA, Capital Markets in Africa: A cut in South Africa’s credit rating could complicate the Reserve Bank’s challenge of weak growth and accelerating inflation, according to Deputy Governor Francois Groepe. “A sovereign rating can have an impact on monetary policy because of how it influences the availability and cost of external financing, the yields on domestic debt and, in turn, the performance of the rand,” Groepe said in a speech posted on the central bank’s website…

Emerging Markets Head for Best Month Since March on Stimulus Bet

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LAGOS, Nigeria, Capital Markets in Africa: Emerging markets rose for a third day, pushing stocks and currencies toward their biggest monthly gains since March, as central banks signaled readiness to quell turmoil after the U.K.’s vote to leave the European Union. Equities took back almost all the losses posted in the wake of Britain’s referendum as central bankers from Asia to Europe said they have tools to respond to the fallout. Federal Reserve Bank of St. Louis President…

Venezuela Mess Prods China to Reassess Africa Lending Spree

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NIGERIA, Capital Markets in Africa: The threat of Venezuela defaulting on Chinese debt is putting pressure on Beijing to reassess how easily it doles out money to commodity-dependent nations, especially those in Africa. As low oil prices ravage Venezuela’s economy and embattled leader Nicolas Maduro seeks better terms on Chinese loans, China is paying greater attention to things like fiscal stability and political risk in overseas lending. Increasing such scrutiny could complicate President Xi Jinping’s pledge to spread $60 billion in aid across Africa over the next three years,…

Kenyan Treasury, Central Bank in Turf War Over Capital Rules

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KENYA, Capital Markets in Africa: Kenyan Treasury Secretary Henry Rotich is counting on three bank failures in eight months to help drive through proposals that will reduce the central bank’s oversight of the industry. Rotich, 47, is seeking to persuade lawmakers to accept proposals that will increase the amount of capital banks must set aside as safety buffers and is also pushing amendments to allow the government more influence in the management of financial institutions. Central Bank of…

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