Banking

LAGOS(Capital Markets in Africa) — The Nigerian federal and state governments need to cut back spending to deal with a drop in revenues instead of depending on the central bank for financing, Finance Minister Zainab Ahmed said on Monday. Ahmed denied claims by a state governor that the central bank printed money to make up a 50 billion naira ($122 million) shortfall on federal revenues earmarked for the 36 federal states in March. “We will…

Namibia Holds Interest Rate at 3.75% to Support Economic Growth Namibia’s central bank held its key interest rate steady for a fourth meeting as it seeks to support economic growth and protect its peg to the South African rand. The monetary policy committee kept the rate at 3.75%, Governor Johannes !Gawaxab told reporters Wednesday in the capital, Windhoek. It follows an unchanged decision by the South African Reserve Bank last month, and means Namibia’s benchmark…

LAGOS (Capital Markets in Africa) – Africa Finance Corporation, one of Africa’s biggest investors in infrastructure development, has delivered a 20% growth in total assets during the 2020 pandemic year. AFC’s audited financial statements for 2020 calendar year show strong and continued growth, with total assets reaching US $7.36 billion on Dec. 31, compared with US$ 6.12 billion a year earlier. Amidst the tough economic climate, asset growth was largely driven by the robust pipeline…

LAGOS (Capital Markets in Africa) — Nigerian banks are not indebted to MTN Nigeria and other phone companies for using telecommunication platforms to provide payment services, a bank chief executive said. “There is no such thing as an obligation due from banks to telcos,” Herbert Wigwe, chief executive officer of Access Bank Plc, said on an investor call in Lagos. “We chose not to make a public statement out of it because it is not appropriate for…

NAIROBI (Capital Markets in Africa) — The International Monetary Fund has walked into a storm of social-media criticism after approving a $2.34 billion three-year financing package for Kenya. Some citizens in East Africa’s biggest economy don’t want any more loans for their government, saying a lot of the cash will be embezzled by state officials, and are signing online petitions to the Washington-based lender. “Previous loans to the Kenya government have not been prudently utilized…

LONDON (Capital Markets in Africa): The African Development Bank’s (AfDB) temporary callable capital increase of XDR28.6 billion (to XDR180.6 billion) should ensure the bank’s net debt will remain fully covered by ‘AAA’ callable capital – the key metric underpinning the bank’s ‘AAA’ rating – even in the case of a US (AAA/Negative) downgrade, Fitch Ratings believes. After the 2019 General Capital Increase (GCI-VII), which raised the bank’s capital by 125%, the new capital increase approved…