Finance

LAGOS (Capital Markets in Africa) — Nigeria is counting on gas-powered vehicles to help it reduce reliance on gasoline and improve its climate credentials while easing the pangs of ending decades of an expensive fuel-subsidy regime. Energy prices have shot up sharply after the government ended subsidies and the country’s labor unions are threatening a general strike on Sept. 28. After a 60% loss of revenues due to the plunge in oil prices, President Muhammadu…

JOHANNESBURG (Capital Markets in Africa) — South Africa’s government will provide initial funding to cover certain restructuring costs for the country’s insolvent airline, said Minister of Public Enterprises Pravin Gordhan. South African Airways needs about 10.5 billion rand ($650 million) to restart. Funding is needed for workers’ severance packages, to pay creditors and cover operational costs, the minister said in response to questions from Bloomberg News. “The money issue from the government side will be…

LAGOS (Capital Markets in Africa) Chinese companies are unlikely to be challenged in the near term as they dominate Africa’s construction market with a 62% market share, even as the pandemic slows activity. The continent’s infrastructure growth potential could eventually attract European funds, we believe, as new common strategies are developed to provide partial funding and execute civil engineering projects.  China’s Belt and Road Initiatives in Africa to Remain in Play Despite shifting financial resources…

PORT LOUIS(Bloomberg) — Mauritius was the first African country to get the coronavirus under control. Now its challenge is how to let the tourists that are its economic lifeblood back in. The Indian Ocean island’s success in quelling the outbreak is unique in Africa and comes as the disease is spreading across the continent, with countries from Kenya to South Africa battling a surge in cases since movement restrictions were eased. Mauritius is one of…

LAGOS (Capital Markets in Africa) — MTN Group Ltd. plans to exit the Middle East as Africa’s biggest wireless carrier changes focus to its home continent. The Middle East “environment is becoming increasingly complex and it contributes less to the group’s earnings,” Chief Executive Officer Rob Shuter said on a call with reporters Thursday. The disposals will be done in a phased manner, with its three consolidated subsidiaries in Yemen, Afghanistan and Syria earmarked to be sold…

LAGOS (Capital Markets in Africa) — Many small, vulnerable states are missing out on debt relief and financial support to help weather damage from the coronavirus pandemic because of outdated eligibility criteria, Commonwealth Secretary-General Patricia Scotland said, calling for an “urgent” moratorium on external debt repayments for all developing countries. The rules to qualify for support from bodies such as the International Monetary Fund and for the Group of 20’s debt suspension initiative are based…

NEW YORK(Capital Markets in Africa) — The world’s major central banks aren’t purchasing debt fast enough, leaving almost $1 trillion of new sovereign bonds looking for buyers in the months ahead. The flood of fresh debt, sold by governments to fund pandemic-rescue packages, threatens to dwarf central-bank buying and swamp markets in the U.K., Canada and Australia, according to Bloomberg calculations. Policy-maker purchases will also lag issuance in the U.S. and Japan, where a continuing…