Nigeria’s Sticky Inflation Threatens to Curb Rate-Cut Hopes

Nigeria’s Sticky Inflation Threatens to Curb Rate-Cut Hopes

LAGOS (Capital Markets in Africa) – Nigeria’s long-awaited interest rate-cutting cycle risks being short-lived, if it starts at all. Governor Godwin Emefiele said last month the Central Bank of Nigeria may reduce its benchmark from a record-high 14 percent before July if inflation drops closer to single digits. But with fuel costs surging and government spending swelling before next year’s election, he may struggle to reach that threshold at a time when the pace of price growth is still…

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South Africa to Raise GDP Growth Forecasts in October, Nene Says

South Africa to Raise GDP Growth Forecasts in October, Nene Says

JOHANNESBURG (Capital Markets in Africa) – South Africa’s National Treasury will probably raise projections for economic growth this year in its October mid-term budget as the country overcomes governance and financial problems that have lowered confidence, Finance Minister Nhlanhla Nene said. Newly appointed president Cyril Ramaphosa reappointed Nene to the role last month. When former leader Jacob Zuma fired him and replaced him with a little-known lawmaker in 2015, the move triggered a sell-off in the rand and bonds. Policy uncertainty…

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IMF Says Ghana Needs More Revenue, Fewer Spend Cuts for Goal

IMF Says Ghana Needs More Revenue, Fewer Spend Cuts for Goal

ACCRA (Capital Markets in Africa ) – Ghana needs to improve revenue collection and can’t keep reducing spending on capital items to achieve its fiscal targets, the International Monetary Fund said. That’s one of the recommendations made by the Washington-based lender during a review of the nation’s $1 billion extended credit-facility program, country representative Natalia Koliadina said. Under the plan that started in April 2015 and is due to end in December, Ghana committed to implementing reforms…

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Morocco’s credit profile reflects move towards value-added exports and fiscal progress

Morocco’s credit profile reflects move towards value-added exports and fiscal progress

RABAT (Capital Markets in Africa) – Morocco’s (Ba1 positive) credit strengths reflects a structural shift towards higher value-added export industries and fiscal improvements which could lead to stronger non-agricultural growth and a stabilization and gradual reduction in public sector debt, Moody’s Investors Service said in a report published last Friday. The main constraints on Morocco’s rating are relatively low GDP per capita, a volatile growth pattern and a relatively high, but affordable, debt-to-GDP ratio. A…

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ETHIOPIA: Ratings affirmed on strong growth prospects

ETHIOPIA: Ratings affirmed on strong growth prospects

ADDIS ABABA (Capital Markets in Africa) – Moody’s Investors Service affirmed Ethiopia’s long-term issuer rating and senior unsecured rating at ‘B1’ with a ‘stable’ outlook. It said that the ratings are supported by the country’s very strong growth potential, and expectations of narrow fiscal deficits and low public debt levels. In contrast, it noted that the ratings are constrained by contingent liabilities from state-owned enterprises (SOEs), structural shortages of US dollars and elevated political risks….

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Egypt Economy: Four Tailwinds for Economic Growth in 2018

Egypt Economy: Four Tailwinds for Economic Growth in 2018

CAIRO (Capital Markets in Africa) – Egypt’s economy took a battering after the revolution of 2011, with annual growth declining to 3.1% in 2011-16 from an average of 6.2% in 2005-10. But the economy should recover in 2018, helped by four tailwinds: declining inflation, lower interest rates, recovering tourism and gas production from a new field. Egypt’s macroeconomic conditions were dire in 2016. Foreign currency was in short supply, resulting in the emergence of a…

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Kenyan Inflation Rate Rises for First Month in Five in January

Kenyan Inflation Rate Rises for First Month in Five in January

NAIROBI (Capital Markets in Africa) – Kenyan inflation accelerated for the first month in five in January as corn prices rose and crude costs increased. Consumer prices climbed 4.8 percent from a year earlier, the Kenya National Bureau of Statistics said Wednesday in a statement emailed from the capital, Nairobi. Prices advanced 1.3 percent in the month. A government-imposed cap on commercial lending rates, a drought and two disputed elections have weighed on economic growth in…

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