October 2016 |

Investment Philosophy | Good Growth Hunting with Long-term Thinking

LAGOS (Capital Markets in Africa) – Companies that have the ability to re-invest capital for growth over long periods of time, while still generating great returns, are well worth the hunt. The incremental compounding of shareholders’ wealth that results from effectively re-investing in growth can generate spectacular returns for long-term investors. However, growth alone is not enough; it needs to be ‘good growth’ that increases per share value for investors. A fast growing company often…

De-Risking in Africa is on the risk according to latest Swift data

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The latest SWIFT data shows that many countries in Africa have seen a reduction in the number of foreign counterparties, the overseas banks with which African banks transact. The data was part of a new report looking at the impact of global regulations on correspondent banking networks, called ‘Addressing the unintended consequences of de-risking – Focus on Africa’, which was released at the SWIFT Business Forum South Africa, in…

FIX Technology: Three Years on the Nigerian Capital Markets

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Any analysis of Frontier markets will, inevitably, underline the role of technology and best-in-class operational processes and establish them as key drivers to moving a market from “frontier” to an “emerging markets” classification. Enabling technology and transparent efficient processes are, therefore, essential ingredients for these markets to achieve their full potential; serving both a national need for developmental capital and wealth creation, as well as an international need for…

Implementing an IFRS 9 Solution: Challenges Faced by Financial Institutions

Posted on by The Editorial Team

Background IFRS 9 is a new international standard set forth to address the weaknesses of IAS 39. This article provides an overview of the new standard and analyzes the major challenges financial institutions will face in ensuring compliance. While there is still uncertainty in terms of implementation approaches, we believe IFRS 9 adoption will lead to a more efficient and lower-risk financial system. As part of the response to the last financial crisis, the International…

What are the African Central Banks doing: Keeps, Slashes or Hikes?

Posted on by The Editorial Team

Angola’s central bank leaves benchmark lending rate unchanged at 16 pct The National Bank of Angola (Banco Nacional de Angola, BNA) left its benchmark lending rate unchanged at 16 percent during its latest monetary policy meeting. The Central Bank has raised the Basic Interest Rate three times since the beginning of the year in an effort to combat spiraling inflation; the previous hike was at the monthly meeting in June. Inflation has been soaring due…

How is Africa Navigating the new Reality: Contraction or Expansion?

Posted on by The Editorial Team

IMF Cuts 2017 GDP Growth Outlook for Africa’s Largest Economies The International Monetary Fund has cut its 2017 economic growth forecasts for Africa’s two largest economies as low commodity prices; policy uncertainty and weak investor confidence weigh on output. Gross domestic product in South Africa will probably expand 0.8 percent next year, compared with the 1 percent forecast in July, the Washington-based lender said in its latest World Economic Outlook Report. Nigeria’s economy will contract 1.7 percent this year and…

What’s the Continent’s Inflation Rate doing: Falling or Rising?

Posted on by The Editorial Team

Angola inflation rises to 38 percent year-on-year in August Angola’s inflation quickened to 38.18 percent year-on-year in August from 35.3 percent in July, data from the national statistics agency. Prices increased at a slower pace in August, to 3.3 percent month-on-month from 4.04 percent in July. Rwandan inflation fell to 6.4 percent year-on-year in August from 6.9 percent in July, the state-run statistics office said on Saturday. Botswana inflation slows to 2.6 percent in August…

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