Features | - Part 246

South Africa Reserve Bank Can Wait — Bank of America Merrill Lynch

Johannesburg, Capital Markets in Africa — The South Africa Reserve Bank continues to be one of the most orthodox emerging market central banks in the aftermath of the global financial crisis. As inflation has been above the bank’s target band, it is one of the few EM central banks to have hiked the policy rate so far this year. Even as the global backdrop has become much more emerging market friendly compared to late last…

Nigeria | More details emerge on Nigeria’s fiscal plans — BoAML

Posted on by The Editorial Team

LAGOS, Nigeria, Capital Markets in Africa — Nigeria’s Senators have urged Buhari to sign the budget into law after he requested it be sent to him to check for any unapproved adjustments. The local press has reported that this should happen within weeks but the whole budgeting process has been fraught with delays since it was first started in December 2015. The current delays relate to the allocation of the US$30bn headline expenditure, but the…

Nigeria | Sub-Nationals on the Blink: A Case for Fiscal Restructuring

Posted on by The Editorial Team

LAGOS, Nigeria, Capital Markets in Africa — President Muhammadu Buhari met with members of Nigeria’s Governors Forum (NGF) yesterday, 28th April 2016. Expectedly, the state governors requested for more palliatives to ameliorate their fiscal challenges. The proposed palliatives include an 18-month moratorium on loans before resuming servicing, direct financial intervention and commitment of the Federal Government (FGN) to a Fiscal Restructuring Plan for Federating units which are yet to be made publicly available. This comes…

Investment in Africa — Will the “Africa Rising” Story continue?

Posted on by The Editorial Team

LAGOS, Nigeria, Capital Markets in Africa — Low commodity prices, the worst drought in Southern Africa since 1982, on-going social unrest, the terrorism threat in East and West Africa – the list of doom and gloom scenarios for many African countries in 2016 is a long one. But what about positive stories around major urban development projects; M&A deal-making in Africa reaching new heights*; improved anti-corruption legislation and enforcement; or Ethiopia’s emergence as a major…

Nigeria Economics Loses to Politics as Buhari Takes Naira Stand

Posted on by The Editorial Team

LAGOS, Nigeria, Capital Markets in Africa — History is repeating itself in Nigeria, where the more President Muhammadu Buhari is urged to devalue the naira, the more he digs in his heels. Investors are beginning to surmise that politics — rather than economics — will determine the currency’s immediate future. Even as growth slows, inflation rises and investors flee Africa’s biggest oil producer, analysts in a Bloomberg survey are backing away from estimates a devaluation will take place…

Fast-Moving Consumer Goods: Challenges and Opportunities in Africa

Posted on by The Editorial Team

LAGOS, Nigeria, Capital Markets in Africa — Africa represents a large and growing opportunity for fast-moving consumer goods companies and retailers with the rapid expansion of Africa’s consumer class. At an average 5% growth, African countries’ booming consumer demand outspans the developing world. The average GDP per capita in Africa over the last five years has grown by over 11%. According to a report by McKinsey, GDP per capita is the single most important driver…

Philosophy of Investment | To fight or flight – why risk can pay off

Posted on by The Editorial Team

LONDON, Capital Markets in Africa — If you ask most people how they make decisions, they’ll probably tell you they look at the pros and cons carefully and, once they’ve weighed up all the evidence, they make their choice based on reason, logic and factual information. In fact, this is not how people generally make decisions. They often make them quickly, based on intuition and gut feeling – and even apparently well-informed, considered decisions can…

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