Economy | - Part 32

South Africa, in Grip of Recession, May Mull Rate Increase

JOHANNESBURG (Capital Markets in Africa) – South African policy makers may be about to consider whether to follow counterparts from Russia to Turkey and raise interest rates — even when the country is battling a recession. Investors and economists are divided on the chances that officials will respond to emerging-market turmoil with the country’s first upward move in borrowing costs since 2016. While forward-rate agreements suggest there’s a small chance of an increase on Thursday, just three of…

Nigeria Inflation Quickens 1st Time in 19 Months on Food Prices

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Nigeria’s inflation rate rose the first time in 19 months as food-price growth picked up. The annual rate rose to 11.2 percent in August from 11.1 percent in July, Statistician-General Yemi Kale said in a report on Twitter Friday. Prices increased 1.1 percent in the month. The pick-up in price growth may bring interest-rate increases by the central bank closer. It’s scheduled to announce its next policy decision on Sept. 25….

South Africa Business Confidence Drops to Lowest This Year

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JOHANNESBURG (Capital Markets in Africa) – South African business confidence declined to the lowest level this year as industries raised concern about policy uncertainty, including the ruling party’s plan to change the constitution to make it easier to expropriate land without paying for it. The gauge dropped to 38 in the third quarter, FirstRand Ltd.’s Rand Merchant Bank unit and the University of Stellenbosch’s Bureau for Economic Research said in an emailed statement Tuesday. All sectors…

Egypt Central Bank Gets Reprieve as Monthly Inflation Slows

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CAIRO (Capital Markets in Africa) – Egyptian consumer prices rose at their slowest monthly rate since May, offering fresh evidence that the impact of fuel price hikes was abating and giving the central bank room to shift its focus from inflation to investments. Monthly inflation in August eased to 1.8 percent compared to 2.4 percent the previous month, according to data reported by CAPMAS, the state-run statistics agency, its slowest pace since the government began…

Recession Reignites South Africa Credit-Rating Downgrade Concern

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s unexpected slump into a second recession in almost a decade has boosted fears of another round of credit-rating downgrades that could see a sell-off in local-currency bonds. The cost of insuring the country’s debt against default for five years using credit-default swaps spiked to the highest since November 2016 while yields on the government’s benchmark local-currency bonds due in December 2026 rose to a nine-month high. The rand weakened the most against the…

South Africa Enters Recession as Ramaphosa Shares Zuma’s Start

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JOHANNESBURG (Capital Markets in Africa) – South Africa unexpectedly fell into its first recession for almost a decade, exacerbating the rand’s decline amid the recent emerging-market rout and heaping pressure on President Cyril Ramaphosa. Africa’s most-industrialized economy shrank an annualized 0.7 percent in the second quarter, an outcome that was far worse than any forecaster had anticipated. The outcome casts a pall over the country’s new leadership, providing an uncomfortable parallel with the initial phase nine…

Namibia’s credit profile balances improving growth prospects, Says Moody’s

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WINDHOEK (Capital Markets in Africa) – The Government of Namibia’s (Ba1 negative) credit profile reflects its small and relatively diversified economy and its moderate but gradually improving growth prospects over the medium term set against rising public debt levels and external vulnerabilities, Moody’s Investors Service said in an annual report this week. The report, “Government of Namibia — Ba1 negative, Annual credit analysis”, is now available on www.moodys.com. Moody’s subscribers can access this report via…

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