The Markets

JOHANNESBURG (Capital Markets in Africa) – The weaker rand and foreign-investment outflows from South Africa are raising the nation’s debt costs and reducing its fiscal flexibility, but its vulnerability to tightening financing conditions is still low, Moody’s Investors Service said. The rand depreciated 14 percent against the dollar in the second quarter, the worst performance among major currencies after Brazil’s real, while portfolio outflows totaled about $6.4 billion, Moody’s said in an emailed report Tuesday, citing data…

LAGOS (Capital Markets in Africa) – If the world’s biggest crude exporter says it’s going to ramp up production, prices usually drop. But as Saudi Arabia adds barrels before its customers get burned, prices have jumped. And Donald Trump isn’t happy. The U.S. president tweeted on Saturday that the Saudi king had agreed to raise production to cut the cost of oil for consumers. While the White House later back pedaled from his assertion, Trump on Sunday…

NAIROBI (Capital Markets in Africa) – Kenya’s Finance Ministry is considering offering debt through a private placement. The Treasury invited fund managers and insurers to a July 6 meeting for a “market-sounding exercise,” according to a June 29 letter signed by Daniel Ndolo, director of debt policy strategy and risk management. Participants will “discuss and agree on the schedule of activities towards the issuance” of bonds by private placement along with pricing methodology, according to…

LAGOS (Capital Markets in Africa) – Old Mutual Ltd. plans to grow its existing insurance, asset-management and lending business in Africa, spurning the acquisitive approach taken by its parent. “We’re definitely not shopping,” Chief Executive Officer Peter Moyo said in an interview. “Don’t expect any acquisitions from us.” The 173-year-old insurer is refocusing its efforts on Africa after being spun out of Old Mutual Plc and listing its shares on the Johannesburg Stock Exchange on Tuesday. Its London-based…