Poor Growth to Curb South Africa Fiscal Boost Efforts, S&P Says

Poor Growth to Curb South Africa Fiscal Boost Efforts, S&P Says

JOHANNESBURG (Capital Markets in Africa) –  “Very poor growth” will make it difficult for South Africa to improve its fiscal position, S&P Global Ratings said after cutting the nation’s rand debt to junk. “If the growth story turns around then the whole story could turn around, ”Ravi Bhatia, a credit analyst at S&P, said in an interview on Bloomberg TV Monday. “It’s really a case of them pushing through reforms which would actually turn around the growth…

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Nigerian Economic Growth Quickens as Oil Output Increases

Nigerian Economic Growth Quickens as Oil Output Increases

LAGOS (Capital Markets in Africa) – Nigeria’s economic growth accelerated in the third quarter as oil output rose to the highest since the start of last year. The gross domestic product of Africa’s largest crude producer expanded 1.4 percent in the three months through September from a year earlier, compared with a revised 0.7 percent in the second quarter, the Abuja-based National Bureau of Statistics said Monday in an emailed report. The median of 13 economists’ estimates…

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IMF Sees Tough South Africa Budget Unless Fiscal Risk Sorted

IMF Sees Tough South Africa Budget Unless Fiscal Risk Sorted

JOHANNESBURG (Capital Markets in Africa) – South Africa will face more fiscal difficulties and higher financing costs should state-owned companies’ debt continue rising and if the nation’s local debt is downgraded to junk, the International Monetary Fund said. If state entities such as cash-strapped power utility Eskom Holdings SOC Ltd. and South African Airways request more state support, the government will have to step in to help, removing fiscal space for “more socially useful activities,” Montfort…

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Kenya Stares at Bleak 2018 Outlook in Vote Mess Aftermath

Kenya Stares at Bleak 2018 Outlook in Vote Mess Aftermath

NAIROBI (Capital Markets in Africa) – Kenya is facing an economic storm in 2018 in the aftermath of two disputed elections. Saddled with the triple threat of austerity measures to pay for those votes, slowing credit growth and new accounting rules for banks, Kenya now risks missing the government’s forecast for 6 percent economic growth next year, according to lenders including Nairobi-based Stanbic Bank Kenya Ltd. Investec Bank Ltd. strategist Chris Becker says expansion could slow to as…

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Nigerian Inflation Slows for Ninth Straight Month in October

Nigerian Inflation Slows for Ninth Straight Month in October

LAGOS (Capital Markets in Africa) – Nigerian consumer inflation slowed marginally for a ninth consecutive month in October as food-price growth stayed above 20 percent. The inflation rate in Africa’s most-populous nation fell to 15.91 percent from 15.98 percent in September, the Abuja-based National Bureau of Statistics said in an e-mailed report on Tuesday. The median of 12 economists’ estimates compiled by Bloomberg was 15.9 percent. Prices rose 0.8 percent in the month. On Nov….

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Malawi Sees at Least 5.5% Growth This Year; Plans Power Boost

Malawi Sees at Least 5.5% Growth This Year; Plans Power Boost

LILONGWE (Capital Markets in Africa) – Malawi’s economy will expand at least 5.5 percent this year as the country recovers from a drought that ravaged crops throughout southern Africa, President Peter Mutharika said. The country also plans to bolster its power-generating capacity in the next decade, using a $200 million World Bank loan to help to raise the generation to 2,500 megawatts from 350 megawatts now, he told lawmakers Friday in the capital, Lilongwe. Of the current installed…

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Commodity prices likely to rise further in 2018: World Bank

Commodity prices likely to rise further in 2018: World Bank

LAGOS (Capital Markets in Africa) – Oil prices are forecast to rise to $56 a barrel in 2018 from $53 this year as a result of steadily growing demand, agreed production cuts among oil exporters and stabilizing U.S. shale oil production, while the surge in metals prices is expected to level off next year, the World Bank said on Thursday. Prices for energy commodities – which include oil, natural gas, and coal — are forecast…

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