Africa
Nigeria Opens Subscriptions for NGN150bn Sukuk as Shift to Local Market Funding Accelerates
Nigeria’s debt management office (DMO) has opened the book on a NGN150bn (approx. USD385mn) sukuk, part of the government’s wider efforts to shift back to domestic markets for funding in a bid to help relieve pressure on foreign currency reserves.
22 May 2020
Moody's: G20 Debt Suspension Will Only Marginally Ease Pressures on EM Economies
The decision to suspect debt payment on debt to some of the world’s poorest economies will only marginally ease pressures on financing, according to a recent report from Moody’s Investors Service.
22 May 2020
With Widescale Chinese Debt Forgiveness in Africa Unlikely, Focus Shifts to Vulnerable Debtors
China has signalled its willingness to provide debt service relief alongside the G20 by signing onto the landmark agreement in April, a crucial tailwind for several Sub-Saharan African countries. But with wholesale debt forgiveness unlikely and debt reprofiling renegotiations potentially stretching on much longer than expected, attention is now shifting to some of the region’s more vulnerable…
21 May 2020
OPEC+ Production Cuts Will Place Additional Strain on Nigeria’s Economy
Adhering to the recently agreed OPEC+ oil production cuts will only deepen Nigeria’s economic problems and exacerbate its difficulties with external finances, according to a recent report by Fitch Ratings. Whilst liquidity provided by multilaterals will help ease some pressures in the short-term, macroeconomic strains will continue.
20 May 2020
South Africa Details Rise in Government TB Auctions
The National Treasury announced a step-up in local currency borrowing in the form of South African Government Bills (SAGB) and inflation-linked bonds (ILB). But according to Peter Attard Montalto, Head of Capital Markets Research at Intellidex, additional government borrowing in the mid- to long-term may become unsustainable.
12 May 2020
Kenya, Uganda Score IMF Funding in Boost for COVID-19 Response
The International Monetary Fund (IMF) approved rapid disbursements of emergency funding for Kenya and Uganda this week to help the East African nations finance measures to address the COVID-19 pandemic.
7 May 2020
Kenya to Raise KES50bn in Domestic Markets in May
Kenya’s central bank said it plans to raise KES50bn (approx. USD471mn) in five-year paper in May this year.
6 May 2020
COVID-19 Poses Severe Threat to South Africa’s Banking Sector - Fitch
The pandemic poses ‘significant downside risks’ to South African banks, according to Fitch Ratings, as asset quality and earnings face downward pressure.
30 Apr 2020
Nigeria Pledges Switch to Domestic Market Funding as IMF Approves USD3.4bn in Support
Nigeria’s government plans to hold off borrowing internationally and instead tap the domestic market to finance the 2020 budget, the country’s president said this week. The move is seen as an important shift in government policy amidst tumbling oil prices and rising bond yields.
29 Apr 2020
Mozambique Secures USD309mn IMF Loan for Balance of Payments Support
The International Monetary Fund (IMF) approved a SDR227.2mn (approx. USD309mn) emergency loan for Mozambique late last week in a bid to help the country meet urgent balance of payment and fiscal needs stemming from the COVID-19 pandemic.
27 Apr 2020