Overview of the African economy in the form @ 230421

Friday, April 23, 2021 / 2:40 p.m. / United Capital Research / Header Image Credit: IMF

Anglophone West Africa

Nigeria

  • According to the Internally Generated Revenue report released by the National Bureau of Statistics (NBS), Nigeria states generated 1.31 tn of IGR in 2020, down 1.9% year-on-year from 1 , 33 tn in 2019. The marginal decrease is commendable given the impact of Covid-19 on the national economy.
  • Based on media reports, the federal government has ordered the Nigerian National Petroleum Corporation to postpone plans to suspend fuel subsidies for six months as it attempts to finalize deregulation plans. The proposed use of the grants is expected to cost 720 billion naira over the six-month period.
  • The CBN’s monthly economic report showed that Nigeria spent $ 160.0 million on food imports in January 2021, up from $ 310.0 million spent in December 2020. This reflects reduced demand from end users after the end of the market. the holiday season.
  • The Senate approved $ 1.5 billion and € 995.0 million in external loans for the federal government. The loans will be provided by the World Bank, the Import-Export Bank of Brazil and the Deutsche Bank of Germany. The loans would be used to finance government projects facing income problems as well as to stimulate the mechanization of agricultural processes.

Ghana

  • According to the recently released Economic Growth Report for 2020, the Ghanaian economy grew faster than expected in Q4-2020, but GDP growth for fiscal 2020 was lower than expected. The Ghanaian economy grew 3.3% year-on-year in Q4-2020 (vs. an estimate of 1.2%), but grew only 0.4% year-on-year in fiscal 2020 , less than the projections of the IMF and the Ministry of Finance of 0.9% and 1.9% respectively.
  • The first deputy governor of the Bank of Ghana said the bank is facilitating the modernization of indigenous financial services such as “susu” with digital tools. This is accompanied by the introduction of other business models to deepen financial inclusion in Ghana.
  • At the Mobile Technology for Development Conference (MTDC), Ghanaian Vice President Dr Mahamudu Bawumia launched a platform designed to harmonize the fraud control mechanisms of mobile money operators in the country. According to him, the platform will help block SIM cards and mobile devices, as well as blacklist identification numbers linked to fraud or general criminal cases.

Francophone West Africa (UEMOA)

Ivory Coast

  • The International Cocoa Organization (ICCO) published its monthly market analysis which reported a reduction in the “farm gate” price paid to Ivorian farmers. The fall in prices has eliminated the expected effect of the difference in living income scheme supporting producers, which means that the quality of life of producers is deteriorating.
  • ICCO pointed out that in April, farmers saw a 25.0% reduction in payments by the Ivorian government.
  • Côte d’Ivoire’s inflation rate accelerated to 3.3% y / y in March 2021. The spike in inflation is driven by rising food prices, which have seen an increase of 5.2% over one year.

East Africa

Kenya

  • According to the Central Bank of Kenya (CBK), foreign remittances in Q1-2021 increased about 17.0% year-on-year to reach $ 829.0 million, a record high.
  • Kenya’s gross reserves reached $ 7.7 billion as of April 15, 2021, compared to $ 7.4 billion as of April 8, 2021.
  • Coca-Cola Beverages Africa (CCBA), Africa’s largest bottling company, has revealed its intention to conduct an Initial Public Offering (IPO) on the Amsterdam and Johannesburg stock exchanges.
  • Kenya and the Democratic Republic of the Congo have signed major transport, defense and trade agreements, signaling a willingness to increase the low level of trade between the two countries.

Tanzania

  • The Tanzanian government has said it plans to employ an additional 44,096 public servants in the 2021/22 fiscal year.
  • Air Tanzania reported a loss of 60.0 billion shillings in fiscal year 2019/2020, given the global developments that rocked the aviation industry.
  • Tanzanian President Samia Suluhu Hassan has met with Chinese business leaders in Tanzania, and the latter has pledged to invest in various businesses, including cell phone manufacturing.

Uganda

  • Uganda’s coffee bean exports grew at their fastest pace in three months in March, thanks to a bumper crop of Robusta coffee.
  • According to the Uganda Coffee Development Authority, exports increased 19.0% year-on-year to 572,839 bags.
  • Likewise, export earnings also increased 16.0 percent year-on-year to $ 53.5 million, equivalent to Sh193.9 billion.

Ethiopia

  • Ethiopia’s Minister of Mines and Minerals has announced the start of work on a $ 355 million gold processing plant in Benishangul-Gumuz district.
  • Ethio-Telecom handed over to Ethiopian Electric Power the sum of 122.5 million br br received from the public via the short message service (SMS-8100 A) for the construction of the Renaissance dam.

South Africa

South Africa

  • Amazon has announced plans to create an African headquarters in South Africa.
  • A recent study from the African Wealth Report showed how South Africa’s wealth has plunged over the past five (5) years.
  • The report notes that South Africa has around 36,000 millionaires or high net worth individuals (HNWIs). But alarmingly, the report also points out that South Africa has lost around 4,200 HNWIs over the past decade (2010 to 2020).
  • Finally, the report states that the depreciation of the rand, lower levels of economic growth and the impact of Covid-19 last year contributed to the 25% drop in private wealth.

Zambia

  • Zeepay, an African Fintech Challenger leader with operations in more than 10 African countries, has acquired 51% of Mangwee Mobile Money in Zambia.
  • Radisson Hotel Group has announced its first resort and third hotel in Zambia, with the signing of the Radisson Blu Resort Mosi-oa-Tunya, Livingstone, Zambia.
  • Zambian President Edgar Lungu called on the country’s Ministry of Fisheries and Livestock to urgently work on new funding for the seafood sector, which will include an aquaculture seed fund of $ 23.7 million already announced.

Zimbabwe

  • Zimbabwe’s Treasury is sticking to its economic growth estimate of 7.4%, even after its president said the projection should be lowered.
  • Meanwhile, President Emmerson Mnangagwa said that “the struggle is still on” to mend the shattered economy, signaling to the financial sector its resistance to economic recovery efforts.
  • This week Zimbabwe’s parliament approved a bill to remove a clause from the constitution on the election of vice-presidents, a move that received an overwhelming reaction, especially from the opposition party. In 2013, Zimbabweans voted for a new constitution, including a clause stating that the vice president must be elected along with the president.
  • Lake Harvest, one of the largest integrated seafood companies in sub-Saharan Africa, has received an $ 8.0 million loan from the African Development Bank to help boost production from its livestock operations and of Tilapia processing.

Mozambique

  • Mozambique President Filipe Nyusi said the government would restore peace to the country after a deadly militant attack near multibillion-dollar gas projects backed by global oil companies.
  • The gas-rich country has seen its economic activities shut down following attacks by Islamic State insurgents near the sites of some of its oil and gas projects operated by Total SE.
  • The Mozambican government estimates that oil and gas projects could generate around $ 100.0 billion in revenue for the country and create 70,000 jobs over the next 20 years.

Angola

  • As part of its measures to increase government revenue, Angola plans to sell up to 30.0% of its state-owned oil company Sonangol next year after restructuring the company to create more transparency and eradicate corruption.
  • Last week, the Angolan government began selling its stake in the state-owned Banco de Comercio e Industria, in order to test investor appetite for assets managed by the Angolan state.

Central Africa (CEMAC and Congo DRC)

Cameroon

  • Cameroon is losing 40.0% to 50.0% of its cocoa nursery plants each year due to climate change, as the dry seasons are getting longer. This was revealed by Jean Claude Akouafane, Managing Director of the Cocoa Development Company (SODECAO).
  • The National Institute of Statistics (INS) recently published a note informing that the Cameroonian economy grew by 0.7% in fiscal year 2020, down from the 3.7% growth recorded during of fiscal year 2019. According to the INS, growth was driven by the secondary sector (up 3.4% year-on-year), which contributed 0.9 ppt to growth. In this sector, growth was driven by the construction segment, the agri-food industries and the extraction of crude oil and gas (+ 1.3% y / y). DR. Congo
  • Barrick CEO Mark Bristow said the Kibali gold mine, operated by Barrick Gold in the Democratic Republic of Congo (DRC), produced 191,612 ounces of gold in the first quarter of 2021.
  • According to the budget monitoring report of the Directorate-General for Budgetary Policies and Programming, the budget execution rate stood at 64.1% in Q1-2021.

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