The Markets

JOHANNESBURG (Capital Markets in Africa) – The South African government must provide policy certainty and tackle its problems one at a time if it is to pull the country out of its economic malaise, according to Sanlam Ltd. Chief Executive Officer Ian Kirk. Africa’s most industrialized economy tipped into its first recession in nine years in the second quarter as President Cyril Ramaphosa tries to restore confidence battered by almost nine years of misrule by his predecessor. It also comes…

CAIRO (Capital Markets in Africa) – Egypt’s biggest car distributor and assembler, Ghabbour Auto, expects automobile sales to double in 2019 compared to last year, amid a rebound in demand crippled after currency reforms sent inflation soaring. The Cairo-based company, which also has operations in Iraq, Jordan and Algeria, expects automobile sales to surge by 25 percent to 4,800 cars in September as it resumes distribution of China’s Geely vehicle this month, GB Auto’s chairman and…

LAGOS (Capital Markets in Africa) – MTN Group Limited has become a battleground issue for Nigerian politicians vying for ascendancy ahead of a national election in February, with $10 billion worth of claims made against the South African wireless carrier. Africa’s largest mobile-phone company by subscribers is reeling from a double blow in Nigeria over the past week that’s caused the stock to lose almost a third of its value and its Eurobonds to plunge. First, the central bank…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s surprise recession provides an opening for opposition parties heading into next year’s elections against the ruling African National Congress. The question is whether they can capitalize on it. News of the economic slump on Tuesday marked the first real setback for the ANC in months. Since appointing Cyril Ramaphosa as president in February, surveys showed the party making headway in winning back support lost during the scandal-marred rule of…

LAGOS (Capital Markets in Africa) – This year’s global emerging-market selloff has its roots in a slew of mini-roots as the era of easy-money came to an end. Consider Turkey, now paying the price for its refusal to follow orthodox monetary policy; Argentina, facing a crisis of confidence just four years of its last default; China, targeted in a trade war; and South Africa, the emerging-market proxy punished for crisis in any corner of the asset class….