The Markets

LAGOS (Capital Markets in Africa) – The Nigerian central bank denied it plans to devalue the naira soon, and announced an investigation to uncover currency dealers it blames for sparking a “panic” market sell-off this week. “Market fundamentals do not support naira devaluation at this time,” the bank said in a statement released late on Thursday by spokesman Isaac Okorafor. The global market turmoil sparked by the coronavirus contagion and this week’s collapse of oil prices…

JOHANNESBURG (Capital Markets in Africa) – A plan to support South Africa’s ailing sugar industry will include tapping into the biofuel potential of cane. Government, farmers and industrial users in the 14 billion rands ($924-million) industry are working on a strategy to stem a crisis caused by a flood of cheap imports and a tax on sugar-sweetened drinks that lowered the demand from beverage makers. President Cyril Ramaphosa said in his Feb. 13 state-of-the-nation address…

JOHANNESBURG (Capital Markets in Africa) – Sasol Ltd. said its setback-hit Louisiana chemical project should generate positive core earnings in the second half of the financial year. The South African chemicals and fuels producer reported a 73% drop in first-half earnings per share after oil prices in rand dropped, global chemical markets softened and the company suffered delays at its Lake Charles Chemicals Project. The U.S. plant negatively impacted earnings by 2.8 billion rand ($185…

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…