Features | - Part 227

South Africa’s Economy Diagnosis: Welcome To Stall Speed

LAGOS (Capital Markets in Africa) – Growth in South Africa is likely to hit stall speed in 2016, at a barely positive 0.3%Y, by our estimates. Yet even as a Brexit-induced global growth shock further complicates the outlook, we see currency prospects as less concerning. The SARB is on hold for the foreseeable future, in our view. A revised GDP data series combined with our views of economic stagnation in several developed markets in 2017…

President Zuma Turmoil Leaves South Africa’s Economy Down But Not Out

Posted on by The Editorial Team

Johannesburg, Capital Market in Africa: At first glance, South Africa appears on a road to nowhere, mired in leadership turmoil and economic stagnation that are rolling back many of the hard-won gains of 22 years of multiracial rule. President Jacob Zuma, who’s lurched from one scandal to the next, is warring with his finance minister over control of the National Treasury. Government and ruling-party officials are at each other’s’ throats over policy, appointments and alleged cronyism. And the…

Luster Wears off Tanzanian President’s Anti-Corruption Drive

Posted on by The Editorial Team

Dar es Salam, Capital Markets in Africa: Tanzanian President John Magufuli’s quick action to stem corruption and government waste won praise from so many graft-weary East Africans that it triggered the internet meme #WhatWouldMagufuliDo. Now, there are growing concerns that the man nicknamed “bulldozer” is going too far. This year, the government has banned three newspapers for reasons including “inflammatory” reporting and ordered the closure of two radio stations for allegedly broadcasting seditious content. In June, police outlawed all protests…

South Africa’s Rand Hedges Offer Refuge as Aeon Readies for S. Africa Downgrade

Posted on by The Editorial Team

JOHANNESBURG, South Africa: South African money manager Aeon Asset Management is preparing for a potential downgrade in the country’s sovereign debt rating by buying stocks expected to perform the best when the rand weakens. Naspers Ltd., the media company that is Africa’s most-valuable, and packaging maker Mondi Ltd. are Aeon’s biggest stock holdings, Chief Investment Officer Asief Mohamed said Thursday in an interview in Cape Town. The companies have assets or operations that offset the effect of declines in the…

Nigeria’s Biggest Miller Says Firms Face Huge Challenges

Posted on by The Editorial Team

LAGOS, Capital Markets in Africa: Flour Mills of Nigeria Plc, the country’s biggest miller by market value, said manufacturers in Africa’s most populous country are finding profits under pressure from a fall in crude prices, a weak naira and rising input costs. “Taken together, these factors have contributed to a perfect storm,” Chairman John Coumantaros told investors at a meeting in the commercial hub, Lagos, on Thursday. Flour Mills was able to “offset the impact” of…

Nigeria Offers Three-Year Tax Holiday to Mining Investors

Posted on by The Editorial Team

LAGOS, Capital Markets in Africa: Nigeria offered a three-year tax holiday to mining investors as the West African nation seeks to raise as much as $7 billion to develop its minerals and steel industries. The tax incentive will start “from the date the investor commences mining operations in the country,” Mines and Steel Development Minister Kayode Fayemi told prospective investors at a meeting in Perth, Australia, according to a statement posted on the ministry’s website. He confirmed deposits…

Liberty to Start South African REIT That Will Trade Stock on JSE

Posted on by The Editorial Team

SOUTH AFRICA, Capital Markets in Africa: Liberty Holdings Ltd., a South African insurer, will place a portion of its property portfolio in a real estate investment trust that will list its shares on the Johannesburg Stock Exchange this year. The REIT, which will be overseen by the company’s money management unit, Stanlib, will probably have a net asset value of 10 billion rand ($741 million), Johannesburg-based Liberty said in a statement on Tuesday. The listing is not…

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