The Markets

ABIDJAN (Capital Markets in Africa) – The benchmark stock index in West Africa’s regional bourse, which has been in retreat since 2016, may get a boost if a flurry of elections in member countries pass off smoothly this year, according to a money manager. Four states affiliated with the Bourse Regionale des Valeurs Mobilieres: Togo, Burkina Faso, Niger and Ivory Coast, Francophone West Africa’s largest economy, go to the polls this year. Successful voting, combined…

CAIRO (Capital Markets in Africa) – Bond investors who came to Egypt to reap a quick payoff might stick around for longer given what the government says it has to offer. “Investors around the world are looking for a place that has stability and safety, and I think Egypt has that,” Finance Minister Mohamed Maait said Thursday in an interview on the sidelines of an energy conference in Cairo. Outside investors have pumped billions of dollars into the North African nation’s…

CAIRO (Capital Markets in Africa) – The world’s best carry trade is proving resilient, especially now that a pause in Egypt’s easing cycle keeps its interest rates elevated. The Egyptian pound is delivering another strong performance this year following a record appreciation in 2019. That’s enticing traders who borrow in currencies where rates are low and invest in the assets of countries where they are high to turn to Egypt. Even with inflation well below the central…

NAIROBI (Capital Markets in Africa) – Kenya will rely on domestic borrowing to fund budget deficits in a new debt-management strategy to reduce the fiscal risks arising from a binge on Eurobonds and syndicated loans. Treasury officials of East Africa’s biggest economy are targeting domestic borrowing at 72% of the total in the next three fiscal years, according to a medium-term debt-management strategy presented to lawmakers on Thursday. That compares with a previous three-year target…

GABORONE (Capital Markets in Africa) – Botswana plans to conclude negotiations with De Beers on a diamond sales agreement by the end of April to replace the current 10-year deal that expires in January. The government wants to see more gems cut and polished within the borders of the world’s second-biggest biggest diamond producer, creating jobs and boosting the state coffers, according to Lefoko Moagi, the minister of mineral resources, green technology, and energy security….

JOHANNESBURG (Capital Markets in Africa) – The challenges to South Africa’s credit outlook was highlighted by President Cyril Ramaphosa’s state-of-the-nation address, Fitch Ratings said. While Ramaphosa promised progress in his speech on Thursday, he offered only partial detail on key policy areas, including stabilizing the electricity sector, improving public finances, accelerating economic growth and land reform, the rating company said in an emailed statement on Friday. Ramaphosa announced changes to the nation’s electricity industry to…

LAGOS (Capital Markets in Africa) – Sibanye Gold Ltd. said it swung to an annual profit last year, bringing the company another step closer to resuming dividend payouts. Sibanye is among South African producers benefiting from a rally in platinum, palladium and rhodium prices and a weaker South African rand that lowers costs for producers. Chief Executive Officer Neal Froneman said last month Sibanye may declare its first dividend in three years in August. The world’s largest platinum miner expects…