The Markets

LAGOS (Capital Markets in Africa) – Domestic shippers in the world’s top cocoa producer are losing market share to foreign-backed competitors as exporters become ensnared in the fallout of the liquidation of Saf-Cacao. Cocoa shippers in Ivory Coast are struggling to raise finance for the buying and storing of beans as lenders curb their exposure to the sector. Stung by about 150 billion CFA francs ($261 million) in unpaid debts by Saf-Cacao, formerly one of the biggest cocoa exporters…

NAIROBI (Capital Markets in Africa) – Even though Kenya’s shilling depreciated for the last six weeks to the weakest since January, the worst may be yet to come. High government spending may heap pressure on the shilling. Kenya’s fiscal deficit this year is forecast by the International Monetary Fund to be 6.6 percent of gross domestic product. Among the region’s Eurobond nations, only Zambia’s is higher. If the deficit widens, Kenya’s relatively low interest rates…

JOHANNESBURG (Capital Markets in Africa) –  An expected seasonal dollar-liquidity crunch means the outlook for South Africa’s rand is anything but merry as the year draws to a close. Funding requirements of large European and Japanese banks going into year-end, together with the Federal Reserve’s tighter monetary policy, will probably lead to greater demand for dollars and rising offshore funding costs, according to Mehul Daya and Walter de Wet. That would weigh on the rand, one of the…

LAGOS (Capital Markets in Africa) – Despite reports of fraud, the success of initial coin offerings compares favorably to conventional technology projects and early-stage ventures. Ernst & Young recently published a damning analysis of 2017’s initial coin offerings. The odd thing is it concentrates on the financial performance of the cryptocurrency market’s equivalent to an initial public offering in the mainstream investment world since the end of 2017. That does not reflect on the competence and sincerity of their…