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Africa

PMI Data Indicates Difficult Start to the Year for Kenyan Private Sector

February marked another difficult month for Kenya’s economy, with fresh PMI data from IHS Markit and Stanbic Bank indicating a second consecutive month of falling business activity.

9 Mar 2020

South Africa Budget: Huge Wage Bill Cut Raises Credibility Issues, Questions Over Fiscal Health

South Africa’s recently-revealed 2020 budget review contained a series of ambitious pledges designed to win over markets and restore public sector finances, including a ZAR160bn in cuts to public wages over three years, but analysts say the move raises credibility issues and likely sets the stage for a battle with the nation’s powerful unions.

28 Feb 2020

Additional State Support for Eskom Unlikely for Now, But Available if Needed

Measures to support the ailing South African state-owned utility introduced throughout the past year should prove sufficient as the government moves to break up the company into three separate entities, ING predicts, amid reports of new closure threats at its largest operational power plant.

26 Feb 2020

The Growth of Private Credit in EM Risks Being Accompanied by Looser Underwriting Standards, Posing ESG Risks

While the outlook for private credit appears bright, the growth of the asset class – particularly in emerging markets – in combination with record-low global yields risks prompting some underwriters to loosen their underwritings and structuring standards as they rush to deploy capital and generate yield, Allianz Global Head of Private Debt Sebastian Schroff says.

25 Feb 2020

Coronavirus Could Weight on Nigeria’s Ability to Secure Crucial Loans from China, Protect Fiscal Revenues – SBM

The coronavirus outbreak currently plaguing global markets may harm Nigeria’s ability to secure Chinese loans needed to fund the 2020 budget, while also weighing on trade and oil revenues, according to a research note from SMB Intelligence.

25 Feb 2020

Kenya Bankers Association Questions Efficacy of Rate Cuts

Following a recent meeting of the Monetary Policy Committee (MPC) in January, the Central Bank Rate was cut for the second time since November 2019 from 8.5% to 8.25%. A recent note from the Kenya Bankers Association Centre for Research on Financial Markets and Policy has questioned whether this will be able to boost credit growth.

24 Feb 2020

Conducive Macro Backdrop Bolstered Rwanda’s Financial Sector in 2019 – Central Bank

Rwanda’s financial sector enjoyed healthy growth throughout 2019, whilst key metrics indicate that the banks remain well capitalised and non-performing loans (NPLs) are continuing to fall, according to a recent note from the Financial Stability Committee at the National Bank of Rwanda.

21 Feb 2020

South Africa Saw Record Bond Issuance in 2019 Despite Lacklustre Economy

Debt issuance in South Africa reached 10-year highs in 2019 despite the economic and political volatility that punctuated much of the year, with bond volumes totalling ZAR164.82bn (approx. USD10.9bn) according to data collected by Nedbank.

21 Feb 2020

Kenya Announces Plans to Streamline Building Approval Processes

Kenya’s Principal Secretary for Housing & Urban Development, Charles Hinga, announced plans this week to harmonise building fees and approval processes for buildings throughout the country. The move is intended to cut costs for developers, spur the growth of affordable housing, and stimulate investor participation in the sector.

20 Feb 2020

Standard Chartered Kenya Launches Mobile Bond Trading Service

Standard Chartered Kenya has launched a bond trading service via its app, SC Mobile App, allowing customers to trade local currency government bonds through their mobile devices.

19 Feb 2020

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