Economy

PORT LOUISE (Capital Markets in Africa) – Mauritius exited a coronavirus-induced recession in the second quarter after construction and manufacturing rebounded. Gross value added grew 19.3% in the three months through June, compared with a year earlier, Port Louis-based Statistics Mauritius said in a report published on its website. That’s after five consecutive quarters of contraction — the longest recession on record. Manufacturing that rose 53% in the quarter led the rebound followed by construction…

JOHANNESBURG (Capital Markets in Africa) – The main risks to the economic outlook for South Africa are a low vaccination rate and further lockdowns to curb the spread of coronavirus pandemic, S&P Global Ratings says Tuesday in emerging markets economic outlook. Higher borrowing costs associated with tighter global financing conditions and spillover effects of Chinese property sector problems could weigh on demand for metals and also pose risks to outlook Strict lockdown restrictions and deadly…

ACCRA (Capital Markets in Africa) – Economic growth accelerated in Ghana in the second quarter, helped by the reopening of the nation’s hotels and restaurants that boosted output in the services industry. Gross domestic product expanded 3.9% from a year earlier, compared with 3.1% in the three months through March, Government Statistician Samuel Kobina Annim told reporters Wednesday in the capital, Accra. The economy grew 0.9% from the previous quarter. Growth was “driven mainly by…

LUANDA (Capital Markets in Africa) – Angola’s bonds surged after Moody’s Investors Service raised the country’s credit rating for the first time, citing improved governance and debt metrics.  The company upgraded its assessment of Africa’s second-largest oil producer by one level to B3 from Caa1, it said in a statement on Monday. It was the first time since Moody’s initial evaluation in 2015 that the rating was increased, according to data compiled by Bloomberg. “If any country out there…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s government met Tuesday to discuss how to accelerate the country’s economic recovery and consider the most feasible way to provide further welfare grants. The ruling African National Congress has agreed in principle on the need for a basic income grant and the government is now considering the most sustainable way to implement it, Minister in the Presidency Mondli Gungubelesaid in remarks broadcast on television broadcaster Newzroom Afrika. Finance…

NAIROBI (Capital Markets in Africa) – Kenya has resumed servicing loans owed to China after Beijing’s six-month debt-repayment suspension expired in June, piling pressure on the exchequer. The government began 2021-22 remittances, with the first batch to the Export–Import Bank of China amounting to 82.7 billion shillings ($761 million), according to Kenya’s Controller of Budget Margaret Nyakang’o. Repayments are for debt taken for projects, including a railroad between Kenya’s capital, Nairobi, and the port city of Mombasa,…