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Africa

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

Land Bank Potentially Triggers Default

South African government-owned Land Bank may have triggered a default under the terms of its ZAR30bn domestic medium-term note (DMTN) programme after failing to make a payment on a revolving credit facility (RCF), despite previously reporting a strong liquidity profile.

22 Apr 2020

Kenya’s Banking Sector Poised for More Consolidation – Cytonn Investments

With 38 lenders catering to just over 52 million people, and despite a series of mergers, the Kenyan banking sector appears overbanked. Further consolidation is expected in the years to come, which could result in a number of larger, better-capitalised, more stable banks, according to Cytonn Investments.

22 Apr 2020

South Africa’s ZAR500bn Fiscal Bazooka Risks “Chasing a Growing Hole”

South African President Cyril Ramaphosa unveiled a ZAR500bn (approx. USD26.5bn) fiscal support package this week in a bid to help ease some of the economic pressures caused by the spread of COVID-19 and the lockdown designed to contain it. Analysts say South Africa, which was already in a precarious fiscal position before the lockdown began, was right to jump off the fiscal cliff – but now risks…

22 Apr 2020

Nigeria OPEC+ Mandated Production Cut “More Palatable” than Initially Feared

Renaissance Capital analysts Nikolas Stefanou and Alexander Burgansky suggest the headline 23% figure quoted in the OPEC+ agreement excludes condensate production, which makes up a large share of Nigeria’s overall oil output.

17 Apr 2020

“More to be Done” From Kenyan Government to Buoy Economy – Cytonn Investments

Kenya has so far managed to limit the spread of COVID-19, with just 184 cases and 7 deaths reported as of 10 April 2020, and the government has responded with fiscal and monetary measures to buoy the economy. According to Cytonn Investments, the government’s actions need to go further but the government remains constrained by its fiscal deficit.

16 Apr 2020

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