Anglophone West Africa

Nigeria

• The Central Bank of Nigeria (CBN) has raised its weekly cash withdrawal limit set for individuals and corporate organisations to 500,000 and 5.0mn from 100,000 and 500,000, respectively. This came as a result of public backlash and outcry. Notably, for transactions above the withdrawal limits, financial institutions are required to get details of the customers and upload the same on the CBN portal created for the purpose.
• The President has transmitted the Finance Bill 2022 to the National Assembly seeking accelerated passage to provide support for the funding of the 2023 budget. The bill aims to support the implementation of the 2023 Federal Budget by expanding the tax net and revenue-sharing formula.
• According to the National Bureau of Statistics (NBS), Nigeria’s Company Income Tax (CIT) for Q3-2022 printed at N810.1bn, indicating a growth of 13.4% q/q from N714.4bn in Q2-2022. Local payments received were N483.2bn, while Foreign CIT payment contributed N327.0bn in Q3-2022. Manufacturing, Information & Communication, and Financial & Insurance sectors accounted for the bulk of the contributions.
• Additionally, Value Added Tax (VAT) for Q3-2022 was reported at N625.4bn, showing a growth of 4.2% q/q from N600.2bn in Q2 2022. Local payments recorded were N367.9bn, Foreign VAT Payments printed at N121.9bn, while import VAT contributed N135.6bn in Q3-2022.
• According to the Director-General of the Bureau of Public Enterprises (BPE), the Federal Government has earned N130.0bn from its privatisation, commercialisation and asset optimisation activities.

Ghana

• According to the Ghana Statistical Service (GSS), the economy slowed to 2.9% y/y in Q3-2022 compared to a revised 4.7% in Q3-2021. This is the weakest expansion since a contraction was recorded in Q3-2020, hampered by subdued growth in the industrial sector and a contraction in the manufacturing sector.
• Ghana has suspended service payments on its Eurobonds, commercial loans, and most bilateral loans as the country proceeds with its debt restructuring plan and as part of a bailout deal with the International Monetary Fund (IMF).
• S&P Global Ratings downgraded Ghana to selective default from CC due to the moratorium on debt payments. The default rating comes as the country suffers from very low net reserves, a volatile exchange rate, high inflation and a weakened economy. Also, Fitch Solutions downgraded Ghana’s long-term foreign currency debt rating to C from CC.

Francophone West Africa (WAEMU)

Ivory Coast

• Finance Minister, Adama Coulibaly, revealed that the nation would return to the regional bond market and plans to raise 3.1tn CFA francs. It targets a 5.55% interest rate, and the debt would be part of mobilising the nation’s 11.6tn CFA francs next year.
• According to Bloomberg reports, Ivory Coast farmers sent 105,420 tonnes of Cocoa to ports last week. Bringing total arrivals since the season started on the 1st Oct to 1.1mn tonnes (vs 945,998 tonnes a year ago).
• The U.S. Agriculture Department raised its Ivory Coast coffee production forecast by 38.0% for the marketing year from Oct-2023 to Sep-2023 due to higher yields. Production is expected to print at 1.1mn bags compared with the 800,000 bags estimated in Jun-2023.
• The Ivory Coast government increased the price of cotton by 3.2% for the new 2022-23 crop season. Thus, a kilogram of cotton will sell at 320 CFA francs ($0.52).

East Africa

Kenya

• According to a statement from the IMF, Kenya’s Treasury cut its FY-2022 economic growth forecast for the country for the second time this year, revising it from 5.5% to 5.3%.
• The International Monetary Fund (IMF) expects a further decline in Kenya’s foreign-currency reserves in 2023, as high borrowing costs limit access to global credit markets.
• The Kenyan government is in talks with international banks to secure external commercial financing for supporting its budget for the current period to Jun-2023.
• Earlier in the week, the IMF agreed to lend Kenya about $447.0mn to help shore up its finances and boost its dwindling reserves. The money includes an augmentation of about $216.0mn and brings the cumulative disbursements to Kenya under existing arrangements to about $2.4bn.
• In addition, it was stated that the funds will be for addressing debt vulnerabilities, supporting the response to the Covid-19 pandemic and global shocks, and to enhance governance and broader economic reforms.

Rwanda

• According to National Institute of Statistics of Rwanda, Rwanda’s GDP rose 10.0% y/y in Q3-2022 versus +7.5% in Q2-2022.
• The International Monetary Fund approved $319.0mn for Rwanda under a new financing arrangement aimed at helping countries deal with prolonged risks such as climate change.
• The request, in addition to an arrangement under the resilience and sustainability facility, will support the nation’s efforts in maintaining macroeconomic stability as it faces headwinds from the war in Ukraine, and climate-related shocks.
• The Resilience and Sustainability Facility was created this year for low-income and vulnerable middle-income nations to address the challenges with longer-term and low-cost financing.

Uganda

• According to Uganda’s Finance Ministry, the country’s trade deficit expanded 23.1% y/y in Oct-2022 to print at $301.7mn, from $245.1mn a year earlier, owing to a rise in imports. For context, the eastern nation’s total value of imports climbed 22.0% y/y in the period under review.
• IMF staff and Uganda reached a staff-level agreement on economic policies to conclude the combined second and third reviews of the 36-months ECF-financed program. This implies that the country will have access to SDR 180.5mn, about $240.0mn, in financing once the review is formally completed by the IMF Executive Board in the coming weeks.
• According to President Yoweri Museveni, Uganda plans to start building a long-delayed standard-gauge railway in 2024, a project that will reduce freight costs for haulers dependent on the nation’s road network.
• Furthermore, talks are being concluded on the financing for the project and negotiations are also underway with Kenya about its own plans to extend an existing line to connect the port of Mombasa to Uganda’s border.
• The Export-Import Bank of China, which had been expected to fund 85.0% of the $2.3bn line connecting Uganda’s capital, Kampala, to the Kenyan border has held back from providing the loans because it wants construction to be synchronized with Kenya’s plans. Kenya has delayed extending the section from Naivasha because of high costs.

Southern Africa

South Africa

• South African Finance Minister, Enoch Godongwana, has announced plans to take over a part of Eskom Holdings SOC Ltd. The State power utility, which supplies 90.0% of the country’s power, owes ZAR400.0bn ($22.6bn) but is unable to cover its operating costs.
• Also, the National Energy Regulator says the High Court of South Africa (Guateng Division) has granted it an extension to make the final decision on Eskom’s revenue application for the 2023/24 FY.
• The UAE’s AMEA Power has won a $120.0mn contract to build and operate a 120.0MW solar power plant in Klerksdorp. The Plant will provide energy to over 25,000 households.

Angola

• According to a preliminary schedule seen by Bloomberg, Angola plans to reduce crude exports to 1.1mbpd in Feb-23, a decline from 1.2mbpd estimate for Jan-23. The final schedule is set to be released this month.

Zimbabwe

• The IMF has suggested that the Zimbabwean government restore its monetary policy effectiveness by winding down the use of gold coins. The Central Bank began selling gold coins to the public on 25-Jul-22. The country’s economic forecast was maintained at 3.5% for 2022.
• According to a citation from the Zimbabwe Forum for Agriculture and Rural Advisory Services, the country harvested a record 375,131 tonnes of grain in 2022. Notably, the country consumes 360,000 tons per annum.
• According to the Finance Minister, Mthuli Ncube, Zimbabwe has identified 27 solar independent power producer projects that could generate as much as 1,000MW of electricity. The plan is estimated to cost $1.0bn. Notably, the country plans to install renewable capacity of 1,100MW or 16.5% of total electricity by 2025 and 2,100MW by 2030.

Central Africa

Democratic Republic of Congo (DRC)

• The International Monetary Fund (IMF) will disburse $203.0mn to help boost the Democratic Republic of Congo’s foreign reserves after a "satisfactory" third review of its $1.5bn loan agreement.