Africa
Gabon: Political Turmoil Delays Essential Hydrocarbons Code Revision
As Gabon is the fifth largest oil producer in sub-Saharan Africa, the health of its economy is tied to its hydrocarbons industry. But since the 2014 oil crash, the legislation currently governing the sector has been wholly unsuitable. Now, the government is hoping to woo international oil companies (IOCs) by revising the code; but the President’s recent illness, along with a failed coup attempt…
7 Jan 2019
Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead
EM FX ended the week on a firm note as stronger than expected US jobs data fed into risk-on sentiment. Fed Chair Powell also added to the positive sentiment Friday as he addressed basically every area of concern that the markets have had with the Fed. US rates backed up but not by enough to lend the dollar much support. In this current “wait and see” period regarding the US economy and the Fed,…
7 Jan 2019
Emerging Markets in 2019: What’s in Store for The Asset Class?
This year was not particularly forgiving for emerging market assets. Rising US interest rates and a strengthening US dollar coupled with a wider shift from quantitative easing to tightening led to broad-based repricing across the investment landscape. It was also a year that saw political and policy uncertainty, trade wars, and commodity and asset price volatility weigh heavily on market…
28 Dec 2018
Brown Brothers Harriman: Emerging Markets Preview for the Week Ahead
Global growth concerns are likely to keep EM on its back foot. China and the eurozone reported weak economic data Friday, and even a much stronger than expected US retail sales report was not enough to turn market sentiment.
17 Dec 2018
Airport Company South Africa Group Treasurer on Avoiding the SOE Governance Scandals
Following the far-reaching state-capture allegations two years ago, many of South Africa’s state-owned companies continue to make the headlines for all the wrong reasons. Aubrey Matlabe, Group Treasurer for Airport Company South Africa (ACSA) tells Bonds & Loans about how the organisation has managed to duck this trend, and dives deeper into the company’s current funding plans, its bid for…
12 Dec 2018
CASE STUDY: Enel Gives Wind to First Project Financing in South Africa’s Local Renewables Market
Nedbank and ABSA Bank were instrumental in helping Enel’s Green Power Division secure ZAR14bn financing for 5 wind farm projects across the country, enhancing the deal with innovative features including a tailored shareholder structure and cross-collateralization between the sub-portfolios.
10 Dec 2018
Nigerian Credit Sees Strong Demand but Election, Oil, Fiscal Metrics Weigh on Growth Outlook
Moving forward with plans to swap its debt from local currency into dollars, Nigeria’s Federal Government successfully placed close to USD3bn in international bond markets through a widely subscribed issuance in November that saw roughly three times that amount in demand from investors. But analysts are concerned that a confluence of factors – declining oil prices, persistently poor revenue…
6 Dec 2018
InfraCredit CEO: “Current environment slowing down deal decision-making”
With a tangible reduction in deal-flow from Africa on the international markets, infrastructure firms in countries like Nigeria this year have relied on the government and finance specialists to fast-track domestic capital market reforms, which ought to open up new sources of liquidity for the industry. We speak to Chinua Azubike, Chief Executive Officer of InfraCredit, the first 'AAA' rated…
21 Nov 2018
South Africa: Mid-Term Budget Sets SOEs on Long Path Towards Reform
Newly appointed Minister for Finance, Tito Mboweni, faced a tough reception from investors when he announced his Mid-Term Budget Policy Statement at the end of October. Yet in spite of South Africa’s dire financial situation, the speech marks a potential welcome shift towards a broader reform programme for the country’s state-owned enterprises (SOEs).
20 Nov 2018
Zimbabwe’s ‘Elephant in the Room’: Public Sector Wages
Well before Robert Mugabe’s 40-year rule came to an end last year, many hoped a change in government would mark a fresh approach to addressing the structural flaws of Zimbabwe’s ailing economy. But one year on, despite the appointment of business-friendly Finance Minister Mthuli Ncube and a wide-ranging reform programme, rebalancing the fiscus remains subordinate to longstanding political…
7 Nov 2018