Economy | - Part 65

Gabon Misses Out on Africa Bond Rally as Vote Dispute Weighs

GABON, Capital Markets in Africa: Gabon is missing out on Africa’s bond rally because of an electoral dispute that’s weighing on investor confidence. The oil-producing nation’s dollar bonds have lost 1.4 percent this month, the most out of 17 sub-Saharan African nations tracked by Bloomberg, which returned an average 0.6 percent. Yields on Gabon’s 2024 securities have climbed 77 basis points since the presidential poll of Aug. 27. Emerging-market bond issuers are set for a record…

Ghana’s Mahama Pledges End to IMF Bailouts in New Term Bid

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ACCRA, Capital Markets in Africa: Ghanaian President John Dramani Mahama pledged that the West African country won’t seek further bailouts from the International Monetary Fund while economic growth will almost double next year as he seeks a second term. Mahama is leading his National Democratic Congress to polls scheduled for December while the country is in the second year of an almost $1 billion loan-program with the IMF. Ghana turned to the Washington-based lender in April 2015 after…

South Africa Current-Account Gap Narrows as Rand Boosts Exports

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Johannesburg, Capital Markets in Africa: South Africa’s current-account deficit narrowed to 3.1 percent of gross domestic product in the second quarter after the nation’s exports received a boost from the lagged effect of last year’s rand weakness. The gap on the current account, the broadest measure of trade in goods and services, narrowed from a revised 5.3 percent in the first three months after the nation recorded its first quarterly trade surplus in a year, the Reserve Bank…

Zambian President Lungu Faces Challenge to Repair Economy

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LUSAKA, Capital Markets in Africa: Zambian President Edgar Lungu, who was inaugurated Tuesday after his narrow re-election last month, faces two immediate challenges: boosting an economy that’s expanding at the slowest pace in 17 years and reining in a ballooning budget shortfall. “We will remain focused on facilitating a conducive business and investment environment,” Lungu, 59, said in his inauguration speech in front of an audience that packed the 60,000-seat National Heroes stadium in Lusaka, the capital…

Nigeria: Policy Action in a Time of Stagflation

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LAGOS, Nigeria, Capital Markets in Africa: The Nigerian economy is currently between a rock and a hard place as policymakers grapple with stagflation i.e. the simultaneous emergence of negative economic growth and high inflation. Inflation has accelerated in 2016, outstripping all expectations to hit a decade-long high of 16.5% in June. GDP growth, meanwhile, turned negative in the first quarter of the year as the economy contracted by 0.36% year-on-year. With a recession looming, the…

The State of South Africa’s Economy: Half Year Review and Prospects

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LAGOS, Nigeria, Capital Markets in Africa: Although there have been some positive developments of late – a stronger trade performance in Q2, another reasonable score in the purchasing managers’ index (PMI) survey in July, and a rally in the rand – many of the South African economy’s fundamentals remain very poor. Indeed, NKC African Economics has recently lowered its real GDP growth forecast for 2016 to zero although we still expect the economy to grow…

Sub Saharan Africa: Weathering The Storm

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LAGOS, Nigeria, Capital Markets in Africa: An uneven recovery in commodity prices, stricter financing conditions and adverse weather patterns have forced many economies in sub-Saharan Africa (SSA) to reassess their structural underpinnings. Faced with rapidly depleting fiscal and foreign exchange reserves, constrained international financing and an understanding that resource prices could remain lower for longer, commodity exporters are at pains to initiate timely and coordinated policy responses to ensure quick, durable and more inclusive levels…

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