Africa Beat – News flow from the rest of the African continent

 

 

ECONOMIC UPDATE

 

Namibia - Weak credit extension growth

  • The Private sector credit extension (PSCE) growth moderated in September to 5.2% y-o-y from 5.9% y-o-y in August

  • According to the Bank of Namibia, this moderated PSCE growth was driven by weaker demand for credit by the corporate sector

  • Total credit extended to the corporate sector increased by 3.9% y-o-y in September, down from a 6.0% y-o-y increase in August

  • In contrast, growth in credit extended to households remained steady at 6.4% y-o-y in September, unchanged from August

Source: NKC

 

Mauritius - Inflation remains unchanged in October

  • The Consumer Price Index (CPI) remained at 3.5% y-o-y in October, which is the same reading as in the previous month

  • On a monthly basis, CPI decreased by 0.4% in October, after falling by 0.9% in September

  • The housing, water, electricity, gas & other fuels sub-index fell by 3.2% m-o-m and was the largest contributor to the m-o-m decrease in October

  • The food & non-alcoholic beverages and transport sub-indices saw a 0.5% m-o-m and 0.2% m-o-m decline in October respectively

Source: NKC

 

Nigeria - Moody’s downgrades credit rating

  • On 7 November, Moody’s opted to downgrade Nigeria’s long-term issuer rating from “B1” to “B2” with the outlook remaining unchanged at stable

  • Moody’s cite perceived fiscal weakness as being the reason for the downgrade

  • They highlight that “authorities' efforts to address the key structural weakness exposed by the oil price shock by broadening the non-oil revenue base have so far proven largely unsuccessful.”

  • Furthermore, fiscal revenues have recorded close to a 50% decline over the 2014-16 period, and they believes Abuja’s public finances will remain weak over the medium term

  • The stable outlook currently reflects the agency’s view that the risk of a shock occurring that will expose Nigeria’s fiscal fragilities is low

Source: NKC

 

Egypt - Disinflation picks up pace

  • Amid a tight monetary policy stance and relatively stable currency, the rise in consumer prices slowed even further in October in line with expectations

  • The Central Bank of Egypt reported that CPI moderated to 30.8% y-o-y in October, down from 31.6% y-o-y in September

  • Moreover, core price inflation eased to 30.5% y-o-y in October, compared to 33.3% y-o-y in September

Source: NKC

 

GENERAL NEWS

 

Morocco – International Monetary Fund (IMF) completes Article IV Consultation

  • The IMF indicated that Morocco has benefited from its commitment to prudent macroeconomic policies and structural reforms

  • They highlighted that economic growth prospects have improved, while fiscal and external vulnerabilities have reduced

  • The IMF further mentioned that there remains work to be done to achieve higher and more sustainable economic growth and noting that the following areas should be improved:

    • the quality of the education system

    • functioning of the labour market

    • female labour force participation

    • efforts of the business environment

Source: NKC

 

Zimbabwe- Mnangagwa expelled from Zanu-PF after being accused of witchcraft

  • On 6 November, Emmerson Mnangagwa, former Zanu-PF vice president, was sacked by Zimbabwe president, Robert Mugabe

  • The 93-year-old Mugabe accused Mnangagwa of consulting witchdoctors and prophets as part of a campaign to secure the presidency

  • Mugabe added that Mnangagwa had made the same mistakes as Joice Mujuru, who was the president's deputy for 10 years until she was fired in 2014

  • Furthermore, he said Zanu-PF will look to discipline Mnangagwa’s co-conspirators

  • According to Mnangagwa, his sudden departure from the country was caused by continuous threats on his life and family through various forms including poisoning

https://www.iol.co.za/news/africa/mnangagwa-expelled-from-zanu-pf-accused-of-witchcraft-11928475

 

COMPANIES EXPANDING IN THE REST OF AFRICA

 

Ethiopian - Airlines to link Buenos Aires, Argentina with Africa

  • Ethiopian Airlines has finalized preparations to start five weekly flights to Buenos Aires, Argentina, as of 8 March 2018

  • Buenos Aires is the world’s capital of Tango which is home of centurion old buildings and a vibrant cultural scene

  • Argentina is one of the largest economies in Latin America and  Buenos Aires is the second largest city in South America with a population of over 13 million

  • This new link will provide efficient connections to their network in Asia, the Middle East, and Africa

https://africabusinesscommunities.com/news/ethiopian-airlines-to-link-buenos-aires-with-africa/

 

DOMESTIC UNREST

 

Tanzania – Hand grenade kills six children

  • On 15 November, six children died after picking up a hand grenade they found while walking to school

  • Fifteen other children were injured in the blast in the Kagera region, near the Burundi border

  • According to the regional police commander, one of the pupil picked up the bomb mistaking it for scrap metal with the intention to sell it to buy exercise books

https://www.iol.co.za/news/africa/hand-grenade-kills-six-children-in-tanzania-11922006

Sources: NKC, African business communities, IOL

 

We hope you will enjoy the brief updates. Please feel free to share your comments and thoughts by getting in touch with the Investment Advisory Team

 

 

 

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