West Africa | - Part 5

Analysing the Impact of Nigeria’s Foreign Exchange Regulations

LAGOS (Capital Markets in Africa) – There have been a few of the adjectives that have been used to describe the recent foreign exchange (‘FX’) policies emanating from the Central Bank of Nigeria (CBN’) over the past 2 years and while opinion remains sharply divided it is clear that debate on these policies have assumed a life of their own. Unquestionably, the main statutory objectives of CBN’s exchange rate policy are to preserve the value…

Nigerian Breweries Plc – Staying resilient through tough economic times

Posted on by The Editorial Team

Robust value presence will still be a key driver of topline growth in 2017: The strategy to increase its product offerings in the affordable segments (mainstream and discount) through its merger with Consolidated Breweries in December 2014 proved to be a step in the right direction. Given the weak macroeconomic climate of 2016, many consumers increasingly down-traded to affordable beer brands as a result of lower purchasing power. On the back of its improved offering in…

Nigeria to Cut Stake in Oil Assets Under Buhari’s Growth Map

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Nigeria plans to sell portions of its oil assets to help fund President Muhammadu Buhari’s four-year program to lift the economy from its worst slump in a quarter century and create 15 million jobs. Buhari proposes in a 2017-2020 economic blueprint to reduce the government’s stake in joint-venture oil assets and other holdings. Selling them will “optimize their efficiency and reduce fiscal burden on the government,” according to the proposal posted on the…

Nigeria’s economic recovery plan has modest oil & gas ambitions but needs clarity, Says Ecobank

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The government of Nigeria rolled out its Economic Recovery and Growth Plan yesterday. The plan, which is expected to enable the country borrow funds from both the World Bank and African Development Bank, is targeted at quickly pushing the country out of recession back into a stable growth path between 2017 and 2020. A cardinal aspect of the plan is fixing the oil and gas sector to enable output…

Egypt’s pound shows Nigeria must overcome its fear of floating free

Posted on by The Editorial Team

CAIRO (Capital Markets in Africa) – A currency devaluation may do little to fix Nigeria’s problems unless it follows the examples of emerging market peers Egypt, Argentina and Russia and embraces floating exchange rates. Grappling with the recession, widespread dollar shortages, a budget funding gap and international lenders’ reluctance to provide loans, Nigeria has moved tentatively to devalue its currency. The naira traded as low as 375 per dollar on Monday versus the official rate of…

Injaro sells stake in Burkina Faso seed producer

Posted on by The Editorial Team

Lagos (Capital Markets in Africa) – Injaro Investments, the manager of the agricultural impact fund IACHL, announces the sale of its 30% stake in seed producer NAFASO SA to the founders and other shareholders. This share sale represents a full exit from Nafaso after a holding period of just under four years. Injaro invested in Nafaso in March 2013. The company’s aim was to leverage the investment from Injaro (i) to increase Nafaso’s output of…

South Africa’s Nedbank slashes value of Ecobank stake

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Nedbank booked a $293 million write-down on the value of its stake in sub-Saharan lender Ecobank on Tuesday and reported its slowest growth in annual profit since 2009. Ecobank Transnational Inc’s operations in central and west Africa are exposed to some economies that have been pressured by the commodity price slide and unfavourable currency swings since Nedbank bought a 20 percent stake for $500 million in 2014….

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