Africa
Twin Deficits Leaves ZAR vulnerable – Standard Bank
Over the past week the rand has weakened as the global coronavirus outbreak causes markets to jitter. The rand is particularly vulnerable due to the country’s twin deficits – both current and fiscal – being run by the government, which “both compare poorly in the global context” according to a recent report by Standard Bank.
5 Feb 2020
African Exchanges are Key to Developing the Region’s Capital Markets, but Most Remain Illiquid
Africa’s securities exchanges have long been seen as a pivotal part of the development of the region’s capital markets, but a lack of liquidity blended with rapidly changing borrower and investor preferences is holding public markets back.
4 Feb 2020
Kenya’s Real Estate Sector Not Heading for a Bubble – Cytonn Investments
Despite a boom in Kenya’s real estate sector in recent years the market is not currently in a bubble, argues a recent report from Cytonn Investments. A bubble is unlikely, the report argues, due to a lack of access to credit, without which unsustainable demand cannot be supported.
31 Jan 2020
Ailing SoEs Pose Systemic Fiscal Risk in Pockets of EM
A new analysis by the IIF indicates that struggling state-owned giants such as Pemex and Eskom remain vulnerable and pose risks to their respective countries’ sovereign credit outlook.
30 Jan 2020
Kenya’s Rate Cap is Dead, but Private Credit Growth May Remain Elusive for Some Time
The introduction of the interest rate cap in 2016 was intended to enhance access to credit for retail customers and Kenya’s large SME sector. Instead, the effect was very much the opposite. But despite the recent repeal of the cap, the path back towards strong private sector credit growth may be more challenging than it may first appear.
30 Jan 2020
Spike in Africa Eurobond Maturities in 2024, 2025 Shouldn’t Overwhelm Sovereign Refinancing – M&G
Despite elevated idiosyncratic risk and concerns around emerging market sentiment more broadly, a spike in African Eurobond maturities in 2024 and 2025 is unlikely to overwhelm the sovereigns’ ability to refinance their bonds given advances in active debt management and a positive track record of repayment, according to M&G Investments.
29 Jan 2020
Egyptian Pound Bolstered by Foreign Inflows into LCY Market – Standard Chartered
Global risk appetite and high yields in Egypt’s local currency market are helping to bolster the strength of the Egyptian pound, according to a recent note from Standard Chartered.
28 Jan 2020
Africa-Russia Economic Linkages Will Struggle to Expand Beyond Security, Arms, Soviet Vestiges
There seemed to be no shortage of talk in 2019 around bolstering commercial and trade links between Russia and a number of African countries, but after high-level summits and dozens of press releases, industry observers see limited scope to expand those economic linkages beyond security, arms, and soviet vestiges.
28 Jan 2020
Lekoil Loan Scam Could Harm Attempts to Fill Gaps Left by Oil Majors
A stunning scam that saw Nigerian oil company Lekoil discover a loan it had purportedly secured from the Qatar Investment Authority was fake could harm Nigeria’s efforts to plug a growing gap left by international oil and gas companies.
24 Jan 2020
Commercial Deals Totalling GBP6.5bn Between UK and Africa said to ‘Underwhelm’ Following High-Profile Summit
The UK and African governments launched a series of new initiatives during a high-profile investment and trade summit hosted in London this week, but despite the hype around the potential for post-Brexit free trade opportunities, some observers remain relatively underwhelmed.
23 Jan 2020