Anglophone West Africa

Nigeria

• According to the World Bank and the Budget office of the Federation, remittances to Nigeria were estimated at $60.22bn from 2019 – 2021. The Ministry of Finance disclosed Budget and National Planning figures in its 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper.
• The Country was banking on improved diaspora remittances in 2022 to strengthen its current account balance. The World Bank projects Nigeria’s Diaspora remittance inflow to increase by 7.1% in 2022.
• A recently released report by the Bank of Industry revealed that an estimated N21.0tn would be required to fund the housing sector deficit in Nigeria. The Ministry of Works and Housing is working with the National Population Commission on more research.
• The Nigerian Oil Spill Detection and Response Agency, NOSDRA, revealed that oil and gas companies operating in the country flared a total of 126.0bn standard cubic feet of gas in H1-2022, amounting to a loss of $441.2mn.
• President Muhammadu Buhari reversed his authorisation of the acquisition of the entire share capital of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited.
• The reversal came after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) countered the President’s approval on Monday because, as a sole regulator, support of such deals remains within its jurisdiction.
• According to data from the Federal Ministry of Power in Abuja, power generation on the national power grid crossed 4,000MW at 6:00 am on Wednesday, hitting 4045.1MW, as the Federal Government announced it had commenced the construction of transmission lines and substations to add 204MW to the grid.
• According to the Transmission Company of Nigeria (TCN), the Federal Government has deployed a new technology as a stop-gap solution to the challenges confronting Nigeria’s power grid.

 
 Ghana

• Ghana sets its International Monetary Fund (IMF) funding goals to $3.0bn in three years. According to Bloomberg reports, the government is still in talks with the IMF, seeking to double what it considered last month.
• Fitch ratings have downgraded Ghana’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to ‘CCC’ from ‘B-’.
• The Ghana Integrated Aluminium Development Corporation stated that the nation is seeking $600.0mn to modernise and expand its state-owned aluminium smelter as it aims to maximise untapped bauxite reserves.
• The Ghana Statistical service released the nation’s inflation numbers; inflation rose past triple the central bank’s target of 10.0% to 31.7% y/y in July from 29.8% y/y in June.

 Francophone West Africa

Ivory Coast

• President Alassane Ouattara on 4-Aug signed a decree authorising the sale of 10.0% of its 15.0% stake in Orange CI, the telecom operator. The equivalent 15.0mn shares will be sold at XOF9,500.0 ($14.83) each on the BRVM. 80.0% of the shares to be released will be reserved for Ivorian nationals. Orange Group remains the largest shareholder of Orange CI. This kicks-off Orange’s IPO project, initially announced in 2017.
• Birahim Diouf, the previous deputy Managing Director of the Central Depository/Settlement Bank, has been appointed its Managing Director by the West African Monetary Union board. The West African Economic and Monetary Union brings together eight countries which use the West African CFA franc. 
• Ivory Coast and Ghana, the world’s largest cocoa producers, reversed their earlier decision made in May-22 to publish their origin differentials monthly, which would have improved transparency in the sector. The cocoa boards had set a -£50/T and -£125/T for Ghana and Ivory Coast, respectively, on the ICE futures market. The reversal was made known at a joint Cote d’Ivoire-Coast Cocoa Initiative (CIGCI) meeting in Accra.

 Eastern Africa

Kenya

• Last week, Kenya’s Shilling slid to a record low against the Dollar, widening its fall since the start of the year to 5.7%, as greenback supply dries up ahead of elections scheduled for Tuesday and rising demand for critical imports.
• For context, the currency of East Africa’s largest economy weakened to an all-time low of 119.68/$ after falling for the 14^th consecutive month in July, with the longest stretch of 30-day losses on record.
• According to data from Bloomberg, Kenya’s $2.0bn 2024 Eurobonds extended gains for the fifth consecutive day on Wednesday last week, as peaceful conduct of the election so far bolstered investor confidence. For context, the yield dropped 38bps to 12.94%, recording a two-month low.
• According to the Nairobi Coffee Exchange, sales at auctions for the ten months through July climbed to at least 504,455 bags from 353,413 bags a year earlier, indicating a 43.0% y/y climb. In addition, the sales value rose 55.0% y/y to $187.4m as the average price climbed to $302.17/bag vs $277.14/bag in the previous year.

 
 Rwanda

• According to the National Institute of Statistics of Rwanda, the country’s urban CPI rose to print at 15.6% y/y in July 1.9ppts faster than its previous print of 13.7% y/y in June.
• According to the Utilities Regulatory Authority of Rwanda, Gasoline prices climbed 10.2% to 1,609 Rwanda francs per litre from 1,460 Rwanda francs per litre in June and will be revised in two months. Also, Diesel prices increased by 6.9% to 1,607 francs per litre from 1,503 francs per litre in the same period.

 
 Uganda

• According to the Uganda Bureau of Statistics, Uganda’s consumer prices rose 7.9% y/y in July, the fastest pace since December 2015, driven mainly by energy, utilities, and food crop prices.
• In addition, core prices increased 6.3% y/y in July, up 80bps from 5.5% y/y in June. Also, food crop inflation jumped to 16.4% y/y, 1.9ppts higher than its 14.5% y/y print in June. Energy, fuel and utility inflation soared to 17.2%, 3.0ppts higher than its 14.2% y/y print in June.
• According to a data release from the Bank of Uganda, the country’s M3 money supply climbed 9.9% y/y in June vs its 9.7% y/y print in May, indicating a 12bps climb in total money in circulation in the Ugandan economy.
• According to the Ministry of Finance, Uganda sets out plans to sell infrastructure bonds to help finance energy projects and as it seeks to develop its oil industry.
• Furthermore, the Secretary to the Treasury, Ramathan Ggoobi, disclosed that the domestic debt would be used to expedite the commercialisation of the country’s oil and gas sector. Also, the Finance Ministry will give further details of the tenure and amounts to be raised later.
• According to the Business Development Manager, Roofings Group, often referred to as Roofings, t has set out plans to invest $1.0bn in the Uganda Iron Ore Deposit in Muko, in the southwestern district of Kabale.

 
 Tanzania

• As the National Bureau of Statistics of Tanzania disclosed, the country’s consumer prices climbed 4.5% y/y in July, 10bps faster than its 4.4% y/y print in June.
• The Monetary Policy Committee disclosed in a statement following its recently concluded meeting on the 5^th of August that under the backdrop of rising inflationary pressures in the country, the MPC approved the Bank of Tanzania to reduce the speed of expanding liquidity in the remainder of 2022.
• According to data released by the Bank of Tanzania, the country’s M3 money supply rose 6.5% y/y in June vs its 9.1% print in May, down by 2.6ppts.

Southern Africa

South Africa

• According to the South African Chamber of Commerce and Industry (SACCI), the business confidence index rose by 1.7% to 110.3 in Jul-2022, the highest in four months, signalling that the business environment is gradually returning to normality. Notably, the reference year was adjusted to 2020 to account for the latest trends in financial markets and the economy.
• According to the South African Reserve Bank (SARB), the country’s gross reserves climbed by 1.0% to $59.5bn in Jul-2022, from $58.9bn in Jun-2022. In contrast, net reserves by 19bps fell to $53.7bn, compared to $53.8bn in Jun-2022.
• MTN, a Johannesburg-owned telecommunication company, reported revenue growth of 12.0% y/y in H1-2022 to print at R97.49bn. Notably, net income grew by 196.3% y/y to R8.0bn from R2.7bn in H1-2021.
• In addition, the telecoms group received a binding offer for 100.0% of its unit in Afghanistan, a deal that will complete the mobile operator’s exit from the Middle East markets.

 
 Angola

• The S&P global rating affirmed Angola’s B-/B ratings, with the outlook remaining Stable.
• The National Oil, Gas and Biofuels Agency (ANP) signed eight contracts to explore oil blocks on the rivers Congo and Kwanza basins.

Zambia

• According to Zambia’s Treasury, the country’s fiscal deficit will be narrowed if the debt restructuring plan is completed this year. Discussions for the official debt restructuring will commence in Sep-2022 with private creditors, Eurobond holders and commercial banks.
• The African Export-Import Bank (Afreximbank) plans to invest $300.0mn for the second phase of the scheduled 1.5mn tonnes fertiliser plant. Zambia requires only 800,000 tonnes annually from the plant, while the rest will be exported to other regions.

Zimbabwe

• The government of Zimbabwe is considering establishing a currency board to support the Zimbabwean dollar as inflation surges. A currency board must, among other requirements, back all units of domestic currency in circulation with foreign currency. Thus, Zimbabwe will need about $700.0mn to back the domestic money in circulation.
• According to the Grain Marketing Board, Zimbabwe has increased the price it pays to corn producers by 33.0% to Z$100,000 per tonne from Z$75,000 per tonne with immediate effect.
• In the energy sector, the Zimbabwe Energy Regulatory Authority has raised the price of gasoline by 6.5% to Z$710.7 per litre from Z$667.4 per litre. In tandem, diesel prices increased by 6.4% to Z$774.2 per litre.

 
 Central Africa

Gabon

• On 9-Aug, Norwegian BW Energy revealed that it had made new financing arrangements to cover its development costs at offshore Gabon’s Dussafu license area. It signed an International Reserve-Based Lending (RBL) facility worth up to $300mn, with an initial commitment of $200mn and can be expanded to a further $100mn.
• Dussafu is an 850-sq.km license area located within the Ruche Exclusive Exploitation Area (Ruche EEA), another block offshore Gabon, in waters that average 116m in depth. It is home to six discovered oilfields and prospects. Last year, BW Energy extracted some 11,300 BPD of oil from Dussafu, with all production coming from the Gamba horizon of the Tortue field.

 
 Chad

• Chad’s military government and 47 rebel groups signed a pledge in Doha, Qatar, committing to a cease-fire ahead of the national reconciliation talks planned for 20-Aug in N’Djamena, the capital of Chad. However, the Front for Change and Concord in Chad (FACT), the largest rebel group, did not participate.

 
 Cameroon

• According to a report by Cameroon’s autonomous sinking Fund (CAA), the country’s debt rose 11.2% y/y to XOF11.9trn in Jun-22. Debt now amounts to 45.8% of GDP, with external debt constituting 71.1% of that total. XOF572bn was used to service debt in H1-2022, XOF8321.8bn. of which serviced external debt. Depreciation of the Euro-linked currency to the US Dollar contributed XOF420bn to the deficit.
• In a statement to Cameroon Tribune, Cameroon’s customs department disclosed that its 7-month revenue rose 3.0% y/y to XOF484bn. The department has a XOF863bn target this year.