Banking

LAGOS (Capital Markets in Africa) – Dwindling reserves and lower oil prices will probably force the Nigerian central bank to devalue one of the world’s most stable currencies by next year, according to a Bloomberg survey of investors and analysts. Ten out of 19 respondents expect the naira to be weakened in 2021, while five predict a mark-down as early as the second half of this year. The remainder believes the central bank will keep…

LUSAKA (Capital Markets in Africa) – Zambia’s government debt is yielding as much as 33% thanks to a widening budget deficit, and there’s one clear winner: local banks, which are reaping record profits. Standard Bank Group Ltd.’s Zambian unit earned more in the country in 2019 than any lender ever has, according to a statement by the company, Stanbic Bank Zambia Ltd. That’s partially due to rising interest income from holdings of government securities, and in a…

LONDON (Capital Markets in Africa) – Investec is increasing its focus on environmental, social and governance issues to bolster its profit and address concerns raised by investors over climate change. The South African and U.K. lender — which offers wealth management as well as private, corporate and investment banking — is getting ready to list a renewable-energy fund later this year. This month, Investec launched a structured product that for the first time gives South Africans…

NEW YORK (Capital Markets in Africa) – Federal Reserve Chairman Jerome Powell came close to acknowledging that the central bank may not have the firepower to fight the next recession and called on Congress to get ready to help. The current low level of interest rates “means that it would be important for fiscal policy to support the economy if it weakens,” he told the House Financial Services Committee on Tuesday. The remark, which came in opening testimony that…

JOHANNESBURG (Capital Markets in Africa) – Squabbling between South Africa’s government and the state-owned airline’s bankruptcy administrator is threatening its chances of survival, Investec Ltd.’s chief executive officer said. President Cyril Ramaphosa in December placed debt-ridden South African Airways in business rescue, a local form of bankruptcy protection. Over the past few days, there’s been a flurry of conflicting messages from the government and the business-rescue practitioners, leaving investors and customers unclear about whether the carrier has a future….

ACCRA (Capital Markets in Africa) – Ghana is seeking to prosecute a former finance minister, industry regulator and deputy central bank governor in a bid to stamp out alleged collusion with company executives that helped contribute to the West African nation’s biggest banking crisis. The former officials are being charged along with nine other banking executives on charges ranging from money laundering to defrauding depositors in the aftermath of a three-year industry clean-up — the costs of…

LAGOS (Capital Markets in Africa)- The Central Bank of Seychelles expects to keep its key interest rate unchanged this year as prices are likely to climb at a slow pace on the Indian Ocean archipelago. “The monetary policy rate is expected to remain at 5% in 2020, a rate that would support an interest-rate level conducive to a level of credit to the private sector that boosts economic activity, but does not introduce inflationary pressure,”…