The Editorial Team |

Egypt Approves Tougher Penalties on Black Market Dollar Traders

CAIRO, Egypt, Capital Markets in Africa: Egypt approved tougher measures against illegal foreign currency traders as authorities seek to ease dollar shortages that are contributing to economic weakness. The government increased jail time for black market trading to as long as 10 years and raised fines, the cabinet said in an e-mailed statement. Other amendments to the central bank law give the governor the authority to suspend currency bureaus’ licenses and impose fines for violations. The…

Investment | Glencore Sells Agri Stake to Canadian Fund for $625 Million

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South Africa, Capital Markets in Africa: Glencore Plc agreed to sell just-under a 10 percent stake in its agriculture unit to Canada’s British Columbia Investment Management Corp. for $624.9 million in cash as it continues to cut debt. The commodities trader and miner, which sold a 40 percent stake in the business to Canada Pension Plan Investment Board for $2.5 billion in April, will retain a majority 50.01 percent stake, it said in a statement on Wednesday. The agreement takes the value…

Selling Dollars Instead of Lanterns Highlights Egypt Crunch

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CAIRO, Egypt, Capital Markets in Africa: Above the counter at Manal’s electrical store in Cairo are the lanterns and string lights that will illuminate homes during the holy Muslim month of Ramadan that began this week. Below it are dollar bills destined for the black market. The businesswoman is the kind of opportunist currency dealer authorities targeted in March when they devalued the pound and raised interest rates to draw dollars into a formal economy starved…

World’s Top Energy Exporter Isn’t Counting on Oil Rally to Hold

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LAGOS, Nigeria, Capital Markets in Africa: Russia isn’t buying into the optimism that a rally in oil has legs. Supply disruptions including Canadian wildfires and militant attacks in OPEC member Nigeria have driven prices higher, with the improving outlook for crude not grounded in fundamentals, Finance Minister Anton Siluanov said at a government meeting in Moscow on Thursday. Prime Minister Dmitry Medvedev said at the same event that the situation was reminiscent of a rebound in the second quarter of last…

World Bank Slashes Nigeria and South Africa 2016 Growth Forecast

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LAGOS, Nigeria, Capital Markets in Africa: The World Bank cut Nigeria’s economic growth forecast for this year, citing weakness from oil-output disruptions and low prices. The lender, in its semi-annual Global Economic Prospects report, said Africa’s biggest economy is expected to grow 0.8 percent, down from an estimate of 4.6 percent in January. Growth is projected to pick up to 3.5 percent in 2017, it said. Furthermore, forecast South Africa’s economy to expand 1.1% in 2017,…

South Africa’s Credit-Rating Outlook Kept at Stable by Fitch

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Johannesburg, South Africa, Capital Markets in Africa: Fitch Ratings Ltd. has maintained its outlook on South Africa’s credit rating at stable, giving the country more time to avoid having its debt assessment cut to junk, even as the economy contracted in the first quarter. South Africa’s foreign-currency rating was kept at BBB-, the lowest investment-grade level, Fitch said in a statement Wednesday. The assessment is better than that of S&P Global Ratings, which affirmed its BBB- level with a negative outlook on…

Mozambique Commits to Repay Debt Used in Public Interest

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MAPUTO, Mozambique, Capital Markets in Africa: Mozambique vowed to honour what it said were illegal debt contracts to state-owned companies even as it aims to only repay loans that have benefited the public interest. Yields on the nation’s Eurobonds fell for the first time in four days. Prime Minister Carlos do Rosario, acknowledging that it seemed “attractive” to default on some payments, told lawmakers on Wednesday that the “good image of the country among international creditors”…

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