Anglophone West Africa

Nigeria

• According to the Central Bank of Nigeria (CBN), Nigeria’s external reserves fell by 8.5% y/y ($3.43bn) in 2022, to close the year at $37.1bn compared to $40.5bn as Dec-2021. The decline can be attributed to the weakening oil export despite rising global energy prices. In addition, oil theft and pipeline vandalism hampered output.
• According to the Nigerian Communication Commission (NCC), the number of mobile subscriptions in Nigeria grew by 23.5mn between Jan - Nov 2022. This pushes the total number of mobile subscriptions in the country to 218.6mn. Notably, MTN remains the largest contributor to mobile subscriptions with 86.4mn subscriptions, followed by Globacom with 56.0mn subscriptions.
• According to the Payment Vision 2025 document released by the CBN, the apex bank noted that the country aspired to have a cashless and efficient electronic payment system infrastructure that would facilitate financial services in all the sectors of the economy by 2025.
• The European Union(EU) has given approval for a $3.4mn working capital facility under the ElectriFI Country Window for Nigeria for Okra Solar to use solar mesh-grids to target 76,000 energy access beneficiaries by the end of 2025.
• Stanbic IBTC Bank and S&P Global released the Purchasing Managers’ Index (PMI) for Nigeria’s entire economy in Dec-2022, printing at 54.6pts, from 54.3pts in Nov-2022. However, it decilined y/y from the 56.4pts print recorded in Dec-2021. Output rose to 57.5pts vs 57.1pts in Nov-2022.

Ghana

• The S&P Global released PMI for Ghana’s private sector in December, showing the highest reading since Jul-2022. The index rose to 47.0pts from 44.9pts in Nov-2022 and declined from the Dec-2021 print of 51.8pts.
• The government has extended the expiry date for it's Domestic Debt Exchange Programme (DDEP) to 16 Jan-2023. The DDEP was supposed to expire on 30 Dec-2022.
• The Managing Director of the Ghana Water Company Limited (GWCL), Dr Clifford Abdallai Braimah, disclosed that 662.0km worth of pipes have been laid throughout the country to supply water to towns and villages. In addition,15.0km of distribution network improvement work has been complete at $6.5mn.
• Media reports revealed that International holders of Ghana's Eurobonds have constituted bondholder creditor committee in response to Ghana's announcement of suspending certain categories of external debts pending an orderly restructuring of the affected obligations.

Francophone West Africa (WAEMU)

Senegal

• The Senegalese government plans to invest $806.3mn in a new regional investment project. The project, called Regional Priority Investment Program (PIP), is part of the 2035 Plan for an Emerging Senegal (PSE) that aims to transform Senegal into an emerging country by 2035. The PIP is expected to lay the foundations for sustainable development based on territorial public-private investment potentials and needs.
• Earlier this week, Senegalese citizens took to the streets of the country’s capital, Dakar, to protest and demand legal actions after a report on the management of anti-Covid funds was found to contain numerous irregularities by the court of Auditors of Senegal.
• According to the Senegal Textiles Development Company, cotton seed harvest is expected to decline by 37.0% y/y to 17,000MT at the end of the 2021-22 crop season compared to the 27,000MT produced the prior season.

Mali

East Africa

Kenya

• According to the National Bureau of Statistics (NBS), Kenya’s GDP rose 4.7% y/y in Q3-2022 compared to 5.2% y/y growth in Q2-2022.
• Also, consumer prices rose 9.1% y/y in Dec-2022 from 9.5% in Nov-2022. Consumer prices rose 0.5% m/m.
• According to President Ruto, Kenya is set to double her corn output  in 2023 as dam construction begins in 90 days. The dam is set to expand irrigation capacity to 400,000 acres of farmland in two years.
• Tanzania
• According to Bloomberg calculations using official data, Tanzania issued $2.0bn worth of sovereign bonds YTD as of 29 Dec-22. Issuance was up 8.6% y/y. Total figures include T-Bills, swaps and market issuances, but omits asset-backed securities and sovereign agencies’ bonds. This is its highest figure since FY-2018 when it issued $2.1bn.
• According to the National Bureau of Statistics (NBS) GDP report, Tanzania’s diamond production rose from 19,418.0ct in Q3-2021 to 74,462.0ct in Q3-2022. It follows the resumption of large-scale diamond production in Q4-2021 due to the reopeneing of the Williamson Diamond Mine.
• Also, Gold production rose 17.0% y/y in Q3-2022 to 17,516.0kg. According to the Central Bank, gold exports revenue account for approximately half of Tanzania’s total exports of goods revenue.

Uganda

• In a statement, the Electricity Regulatory Authority reduced average weighted end-user tariff for Q1-2023 by 1.5% for domestic consumers to USh808.9/kWh. Rates for commercial users fell 2.1% to USh624.6 /kWh. Large industrial users are to pay USh386.3 /kWh.
• According to the Uganda Bureau of Statistics, Uganda’s consumer prices rose 10.2% y/y in Dec-2022 vs 10.6% in Nov-2022.
• According to the Bank of Uganda, the country’s external debt is projected to average $1.3bn annually until 2025-26. External debt stood at $12.4bn in Sep-2022. Public debt stood at USh79.9trn in Oct-2022, 49.0% of GDP. Total debt servicing accounted for 37.0% of domestic revenues in four months through Oct-2022.
• In its draft budget, the Finance Ministry projects the budget to increase by 4.0% from the current fiscal year to USh50.0trn. It forecasts 2023-24 domestic revenue to increase 12.5% y/y to USh28.8trn while domestic borrowing is estimated at USh1.6trn from USh5.0trn in the current fiscal year to prevent crowding out private sectors. Interest payments are forecast at USh6.1trn.
• The Uganda Securities Exchange in a report stated that it is finalizing the framework for infrastructure Bond Listings. Among other considerations, issuances will be done in  a phased manner, starting with a general obligation government bond where debt-servicing will be catered for from the budget. Also, Infrastructure bonds will have a minimum tenor of 25yrs., and Interest income on infrastructure bonds will be tax-exempt. 

Southern Africa

South Africa

• According to S&P Global purchasing managers’ index (PMI) report, South Africa’s PMI declined to 50.2pts in Dec-2022, 79bps lower than its 50.6pts print in Nov-2022, but 3.7% y/y higher than its 48.4pts print same time in 2021.
• According to the governing African National Congress (ANC) in a policy proposal to be debated at the national conference, South Africa’s welfare grant system should be shielded from inflationary pressures and be expanded to provide for income grants as the fiscal space allows.
• Angola
• According to the Instituto Nacional de Estatistica, Angola’s GDP climbed 3.9% y/y in Q3-2022, 30bps higher than its 3.6% y/y climb in Q2-2022. Remarkably, this marks the sixth consecutive quarter of economic expansion and at the quickest pace since the Q1-2015.
• Furthermore, the performance was driven by the positive performance of activities in the primary sector such as Agriculture (4.7% vs 3.5% in Q2-2022), Fisheries (12.3% vs -8.2%); Transportation & storage (25.8% vs 33.6%) and the Extraction of diamonds & other minerals (8.3% vs 40.3%).
• In addition, strong growth was recorded in Finance & insurance (41.6% vs -38.8% in Q2-2022). Meanwhile, the Oil sector expanded at a slightly faster pace (2.7% vs 2.2%).
• Zambia
• According to Stanbic Bank and S&P Global PMI report, Zambia’s PMI declined to 48.3pts in Dec-2022, 1.6ppts lower than its 49.1pts print in Nov-2022, and 6.2% y/y lower than its 51.5pts print same time in 2021.
• According to Zesco Limited, a national power utility owned by the Government, Zambia’s electricity utility will implement daily 12-hour rolling blackouts from Wednesday, 4th January 2023, because the water levels in Kariba (the dam Zimbabwe and Zambia both use for hydropower) is drastically low.

Central Africa

Cameroon

• Cameroon has spent 3.0% of its Gross Domestic Product (GDP) on subsidising fuel and gas to curb the impact of rising energy costs in 2022 on its citizens. This is 6.0x more than what was spent in the previous year, bringing the total sum spent to $1.3bn (CFA775.0bn) by the end of Dec-2022.
• The President, Paul Biya, has announced his administration’s plan to exploit the iron ore of Kribi-Lobe, the iron deposit of Mbalam-Nabeba and Bipindi-Grand Zambi. This announcement was made following the 94.6% decline in budgetary revenue from exploiting mines and industrial quarries to CFA630.0mn in 2020 from CFA12.2bn in 2019.
• The EU’s Civil Protection and humanitarian aid Operations department (ECHO) has supported the UN World Food Programme (WFP) with €4.2mn for response to the emergency food needs of 598,000 people in the northwest and southwest regions of Cameroon.