Africa
Central Bank of Kenya Likely to Cut Rates by 25-50bps – Sterling Capital
Ahead of the next Monetary Policy Committee meeting of the Central Bank of Kenya on Monday 23rd March, Sterling Capital predicts a rate cut of 25-50bps.
20 Mar 2020
Downgrade of South African Sovereign Now 'Probable' – Nedbank Analysts
As the ongoing COVID-19 pandemic collides with a crash in the oil price and a broader deceleration of growth, the South Africa sovereign looks set to struggle. According to Jones Gondo, Senior Credit Analyst and Nthulleng Mphahlele, Analyst at Nedbank, the risk of the big three rating agencies downgrading South Africa has been significantly heightened.
19 Mar 2020
Kenya Roads Board Bond ‘Potential Game Changer in Domestic Debt Investment’ – Sterling Capital
Kenya Roads Board (KRB) is set to issue a KES150bn bond on an annual basis over the next five years. The proceeds of the bond will be used to finance infrastructure development.
11 Mar 2020
Downgrade Would Lead to Exponential Growth in Borrowing Costs – Rand Merchant Bank
The possibility of a Moody’ downgrading the South African sovereign has long been under discussion. But according to Ettienne Le Roux, Chief Economist and Elena Ilkova, Credit Research Analyst at Rand Merchant Bank, a rating downgrade could provoke a much more severe reaction than the simply exclusion of the country’s debt from global indices.
9 Mar 2020
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 Weigh 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 SBM 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