The Markets

JOHANNESBURG (Capital Markets in Africa) — With the dollar heading into what is traditionally its best month of the year, the outlook for South Africa’s rand has taken a turn for the worse. The world’s second-most volatile currency has weakened during August in four of the past five years, for an average decline of 5.3%, according to data compiled by Bloomberg. The dollar, by contrast, has gained on average 0.4% in August against a basket…

JOHANNESBURG (Capital Markets in Africa) — Not even a record rally can entice foreign investors to South African gold stocks. With gold prices soaring on the heels of monetary stimulus, shares in producers of the metal are back in favor around the world. But investors are fretting about supply disruptions at South Africa’s mines as a result of soaring Covid-19 infections, according to Benguela Global Fund Managers Ltd. Non-residents sold a net 2.1 billion rand ($128 million) of…

ACCRA (Capital Markets in Africa) — Ghana’s fund managers, unable to access deposits tied-up in failed banks, will receive bonds directly from the government to boost liquidity, according to two people with direct knowledge of the matter. Money managers have been struggling to meet withdrawal requests from customers, cover their costs, or make fresh investments. Their funds are locked up in second-tier lenders that lost their licenses after regulators last year clamped down on smaller…

NAIROBI(Capital Markets in Africa) — The Kenyan shilling slipped to a record low amid increased corporate demand for dollars following the lifting of some government restrictions aimed at controlling the spread of the coronavirus. The currency of East Africa’s largest economy weakened 0.1% to 107.98 per dollar by 10:15 a.m. in the capital, Nairobi, after earlier breaching 108 for the first time. Should it end the day at that level, it would be its lowest…

LAGOS (Capital Markets in Africa) — Mauritian insurer MUA Ltd. is looking for more deals in East Africa after an acquisition in Kenya helped to boost its market share in the region’s biggest economy. MUA earlier this month spent $12.3 million buying Saham Kenya, lifting its share of the country’s insurance market to 2.5% from 0.5%, Chief Executive Officer Bertrand Casteres said in an email. The company, which also has operations in Rwanda, Uganda and Tanzania, last year set…

LAGOS (Capital Markets in Africa) — Commodity investors may witness a powerful split-screen moment this week as U.S. earnings season throws a spotlight on companies’ pandemic-driven pain just as China announces its mammoth economy has returned to growth. And with a keen watch on both of those conflicting trends, OPEC and its allies may announce plans to start tapering historic output cuts. Among corporates reporting are top banks including Goldman Sachs Group Inc., whose commodities unit…

LAGOS (Capital Markets in Africa) — Saudi Arabia commended Iraq for implementing almost all its pledged oil-production cuts and Nigeria told the kingdom it was committed to hitting its target, in further signs that disputes among OPEC+ members over cheating of quotas are being resolved. Saudi Energy Minister Prince Abdulaziz Bin Salman spoke to his Iraqi counterpart Ihsan Abdul Jabbar, according to a joint statement from their offices on Monday. The prince said he was satisfied with Baghdad’s…