Anglophone West AFrica

Nigeria

• The Monetary Policy Committee (MPC) concluded its penultimate meeting of the year 2022. In line with our expectations, the chairman announced the unanimous decision by the committee to continue combatting inflation. The MPC decided to further increase the Monetary Policy Rate (MPR) by 150bps, bringing it to 15.5%, similarly raising the Cash Reserve Ratio (CRR) to 32.5% from 27.5%. The Asymmetric corridor is set at +100/-700 basis point around the MPR, and the liquidity ratio is set at 30.0%.
• The Governor of the Central Bank yesterday informed foreign airlines that the CBN is not compelled by law to repatriate U.S. Dollars to them while restating its commitment to clearing the forex backlog owed to the airlines. The CBN had earlier released the sum of $265.0mn, a portion of which would settle trapped funds owed to foreign airlines. According to the International Air Transportation Association (IATA), International airlines have $464.0mn trapped in Nigeria.
• The World Bank’s draft report for State Action on Business Enabling Reforms stated that Nigeria’s economic outlook is uncertain, and she faces increasing difficulty in attracting foreign investments compared to her peers. It also noted that the welfare condition within the country is deteriorating despite Nigeria’s economic recovery this year. Also, it stated that private sector investment’s contribution to growth has declined due to macroeconomic and financial policies constraining investment.
• According to the Nigerian Electricity Regulatory Commission (NERC), the number of freshly issued licenses and permits to companies stood at 37, bringing the total of issued licenses to 85, generating a total of 762.3 MW of electricity. The NERC approved the issuance of 4 new generation licenses with a total nameplate capacity of 508.5 MW, 46 metering service providers and 25 mini-grid permits

Ghana

• According to the Public Interest and Accountability Committee (PIAC), Ghana earned $731.9mn in petroleum receipts in H1-2022, representing a 108.9% increase from $350.3mn in H1-2021. This implies that the country has received a total of $8.1bn in oil revenue since 2011, when it started producing oil in commercial quantities. The increase was primarily attributed to corporate taxes, surface rentals and crude oil lifting revenues.
• According to the Revenue Authority, Value Added Tax (VAT) penetration in Ghana is below that of all other countries within the ECOWAS. The country recorded a 17.0% compliance rate, the lowest VAT contribution-to-total-tax-revenue ratio. The shortfall is partly due to inadequate public awareness of the tax and the penalties for avoiding it.
• According to the International Monetary Fund (IMF), discussions concerning debt restructuring in Ghana were too early following the ongoing negotiation for a $3.0bn support for the nation. The Fund said the restructuring of Ghana’s debt would hinge on the outcome of the Debt Sustainability Analysis (DSA) Report. The Report will indicate if there is a need for debt restructuring in the first place and, if necessary, how it should be carried out, as well as which areas will be affected.

Francophone West Africa (WAEMU)

Senegal

• Earlier this week, the Saudi company ACWA Power signed a memorandum of understanding with Senegal’s national electric and water companies to build a water desalination plant. Another MoU was signed with the Senegalese electric company to build a gas-to-power plant.
• The Senegalese President, Macky Sall, reinstated the post of Prime Minister, appointing a former economy minister two months after a tense legislative election in which Sall’s ruling coalition lost its comfortable majority.

East Africa

Kenya

• The Central Bank of Kenya’s Monetary Policy Committee decided to raise the Central Bank Rate (CBR) from 7.50% to 8.25% at its September meeting.
• The federal government disbursed over 560 bags of DAP fertiliser as part of the government’s subsidy program targeting farmers in Kisumu County.
• The Capital Market Authority (CMA) and Kenya Development Corporation (KDC) have signed a Memorandum of Understanding (MoU) that aims to ease the accessibility of financial services to small businesses.
• The partnership seeks to spur growth in the SME sector, which has difficulty accessing affordable credit from lenders due to a lack of guarantees and collateral.
• Kenya Power is set to spend Sh40mn the initial phase of its electric mobility rollout as it seeks to phase out fossil fuel-powered vehicles and motorbikes from its fleet.

Rwanda

• Rwanda Revenue Authority (RRA) officials, while appearing before the Parliament's Public Accounts Committee (PAC), disclosed a bill proposed to enable consumers to get a share of the 18.0% value-added tax levied on taxable goods and services paid directly into their bank accounts.

Tanzania

• The governments of Mozambique and Tanzania have signed two cooperation agreements in Maputo, focusing on combating terrorism and fighting crime
• In addition to fighting jihadists, President of Mozambique Filipe Nyusi said the two countries were currently focused on exploiting hydrocarbons, which form the building blocks of vital energy sources like coal and gas.
• Before, Tanzania Communications Regulatory Authority also committed to scaling up communication cooperation with its Mozambican counterpart through the Communications Regulators' Association of Southern Africa.
• Reports from the nation’s National Bureau of Statistics revealed that Tanzania’s economy has grown by 5.4 per cent compared to the projection of 4.7% for the first quarter of 2022.
• The increase was seen in Zanzibar, where its economy hiked by 5.1 per cent below a target of 5.4 per cent.

Uganda

• The Minister of Finance, Matia Kasaija, revealed that the Government has agreed to release Shs30 billion towards the supply of seedlings to coffee and tea farmers.
• According to Micheal Taremwa Kananura, acting CEO at the state-owned Uganda Electricity Transmission Company Limited (UETCL), The US$100million World Bank-funded construction work on the Grid Expansion and Reinforcement Project (GERP) is on track to be completed by Mar-2023.

Southern Africa

Angola

• The Bank of Angola’s Monetary Policy Committee cut its benchmark interest rate to 19.5% from 20.0%, its first rate cut since May 2019. The main reason for the cut was rising inflationary pressures as Angola’s Aug-2022 headline inflation print of 19.8% y/y from 21.4% y/y in the previous month, the first drop below 20.0% since Mar-2020. Also, the Kwanza has appreciated against major foreign currencies in recent months.
• Australian-based Lucapa Diamond Company announced the full commission of the standalone Kimberlite bulk sample plant at the Lulo concession in Angola. 
• The plant has begun processing the 15 kimberlites on the current priority bulk sampling list at Lulo.
• The bulk samples will be processed at a rate of 2 samples every six weeks.

South Africa

• South Africa’s National Treasury has prohibited Bain & Company from participating in public-sector tenders, effective 5-Sept., on the grounds of the company engaging in corrupt and fraudulent practices related to a South Africa Revenue Service (SARS) contract. The ban runs until Sept-2032. Treasury is in the process of restricting the company’s South African directors through a phased approach. The decision comes seven weeks after the U.K. government announced a similar ban for three years.
• According to the South African Reserve Bank, the country’s M3 money supply rose 8.2% y/y in Aug-2022 from its July print. Private credit rose 7.9% y/y in Aug-2022 versus a revised 7.1% in Jul-2022.
• According to Public Enterprises Minister Pravin Gordhan, South African power cuts should ease over the coming days. Thus, the nation’s electricity supply will improve over the medium term as new investments bolster generation.
• The Minister also informed Eskom Holdings SOC Ltd. Management that a review has been finalised and the board will be reconstituted and restructured. The company, which supplies over 90.0% of the nation’s power, cut 6,000.0 MW from the national grid over the weekend.
• The African Development Bank (AfDB) has suggested a plan for South Africa that means the nation uses the $8.5bn in climate financing pledged by the U.S., U.K., Germany, France and the European Union to raise even more funds. AfDB President Akinwunmi Adesina recommended that South Africa park the funds in a Special Purpose Vehicle (SPV) which can seek a credit rating, and sell zero-coupon bonds to raise as much as $41.0bn.

 
Zambia

• According to a notice in state-owned Times Zambia newspaper, Tanzania Zambia Mafuta Pipelines Ltd. has cancelled its invitation for fuel pipeline expression of interest published on 14-Sept.
• According to Zambia Statistics Agency, Zambia’s Consumer Price Index (CPI) rose by 9.9% y/y in Sept-2022 versus 9.8% y/y in Aug-2022. CPI fell 0.4% m/m versus +0.3% m/m in Aug-2022.
• Also, Zambia’s GDP rose 3.5% y/y in Q2-2022 versus a revised 2.2% y/y in Q1-2022.
• Additionally, Zambia’s trade surplus narrowed to ZMW3.2bn in Aug-2022 from ZMW3.7bn in Jul-2022.

 
Zimbabwe

• According to the National Statistics Agency, Zimbabwe’s Consumer Price Index (CPI) rose by 280.4% y/y in Sept-2022 versus 285.0% y/y in August. CPI rose 3.5% m/m versus 12.4% m/m in Aug-2022.
• According to a statement from the Central Bank, Zimbabwe has received $1.1bn in remittances from Jan-Aug 2022. The largest inflows were recorded in Mar-2022 ($142.3mn) and May-2022 ($141.5mn). Remittances were the country’s second-largest source of foreign currency in 2021, which stood at $1.4bn, up from $1.0bn in 2020. Mineral resource exports led foreign currency inflows at $3.7bn.
• According to President Emerson Mnangagwa, Russian miner Alrosa PSJC has discovered 22 new diamond deposits in Zimbabwe. Citing the President’s comments, Zimbabwe’s Information Ministry said Alrosa would only be allowed to work on two diamond deposits. At the same time, the rest will be made available to other investors.

Central Africa

Cameroon

• Following the 3rd meeting for 2022 held by the Monetary Policy Committee (MPC) earlier this week, the Central African States Beac opted to raise its two benchmark rates.
• The Tender Interest Rate (TIAO), which represents the remuneration it receives for providing liquidity to commercial banks, was increased by 50bps to 4.5% from 4.0%. At the same time, the Marginal Lending Rate was also raised by an equivalent 50bps, from 5.75% to 6.25%.
• According to a recent report from ISSA Africa, Cameroon is likely to reduce its dependence on food imports (rice, wheat, fish, and beet sugar…) by 31.7% by 2043.
• The Organisation expects this decline to come from sharp progress in the agricultural sector to the extent that, by 2043, the country’s net agricultural import will represent 2.8% of total farm demand.
• Earlier this week, the Cameroonian Ministry of Public Works (Mintp) announced the resumption of the contract award process for the Bogo-Pouss road project. This follows the approval from the African Development Bank (AfDB), the project’s primary funder.
• According to data from the National Institute of Statistics (INS), the goods trade deficit in Cameroon dropped significantly in H1-2022, owing to solid exports coupled with a decline in imports.
• For context, in the period under review, the export of goods in the country increased by 2.8% y/y, while total imports declined by 11.3% y/y.