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Snapshot on the African Economy as @ 301222

Dec 30, 2022   •   by United Capital Research   •   Source: United Capital   •   eye-icon 215 views

Anglophone West Africa


 Nigeria

  • The National Assembly on 28-Dec passed the 2023 budget proposal. The budget was increased from the N20.51tn earlier proposed to parliament by the president, to N21.82tn. The budget proposed a deficit of N10.782tn.
  • The House of Representatives asked the Federal Government, through the Nigerian Petroleum Development Company, to suspend the planned auction of Oil Mining Licence 11 (OML 11) for $250.0m when it has been bid for $1.0bn. At the plenary on 28-Dec, the House particularly urged the NPDC, to suspend the planned auction and sale of the OML 11 asset pending the resolution of all concerns.
  • Members of the Association of Licensed Telecom Operators of Nigeria (ALTON), Association of Telecom Companies of Nigeria (ATCON) and Paradigm Initiative expressed grave concern over the current draft National Information Technology Development Agency (Repeal and Re-Enactment) Bill 2021, which seeks to convert the National Information Technology Development Agency (NITDA) from a development agency to a regulatory agency.
  • The Central Bank of Nigeria (CBN) "Money and Credit" statistics for Nov-2022 revealed that credit to private sector increased to N41.6 trn in Nov-2022 from N40.84 trn in Oct-2022. It represents increased interventions in the real sectors.
  • The Federal Government on 28-Dec proposed a last-minute supplementary budget for the 2022 fiscal year. The President is seeking the approval of the National Assembly for N819.5bn supplementary budget, which it planned to finance through domestic borrowing
  • The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has has revised the bank’s cash withdrawal limits policy. In a circular on 28-Dec by the CBN’s Director of Banking Supervision, the CBN said it had reviewed upwards the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations to N500,000 and N5.0m respectively.


 
Ghana

  • According to the Ghanaian Statistical Service (GSS), the Ghanaian economy grew at its slowest pace since the COVID-induced economic slowdown in Q3-2020, growing by 2.9% y/y during the period under review.


 
Francophone West Africa


 Ivory Coast

  • According to figures seen by Bloomberg, the members of exporter group Gepex, processed a total of 55,248 tonnes of cocoa in Nov-2022, up 5.1% y/y compared to the 52,580 tonnes processed same period a year earlier.


 
Benin

  • Earlier in the week (Dec. 25th), the Beninese President signed into law the country’s 2023 Finance Law. The law includes the following measures (not limited to), reducing the withholding tax rate to 10.0% from 12.0% for lessors subject to corporate income tax; and introducing tax incentives for companies with an annual turnover of 1.0bn francs (US$1.6 million) or more.


 
Southern Africa


 South Africa
 

  • According to Bloomberg reports, South Africa’s breakeven inflation rate for the 10-year CPI-linked bond rose by 6bps within the week to 6.3%. The breakevens have risen 21bps YTD and 9bps m/m.


 
Angola

  • According to Roscosmos, the Angosat-2 Angolan telecom satellite has passed tests in orbit and has commenced operation. The satellite has been tested in orbit for serviceability of utility systems and payload.
  • The Angolan official gazette revealed that Angola is to privatise 51.0% of airport management company Sociedade Gestora de Aeroportos, S.A., a process that will be led by Angolan finance minister Vera Daves de Sousa, according to an order from President Lourenço.
  • The minister of State for Economic Co-ordination, Manuel Nunes Júnior disclosed that The non oil sector of the Angolan economy is predicted to grow 3.4% in 2023.


 
Zambia

  • The Finance Ministry in response to emailed questions disclosed that the government appreciates that the efforts being asked of creditors are significant, and the FG is ready to discuss and explore
     
    all restructuring options that would make this effort acceptable for creditors, including private creditors. They are also experiencing positive progress in their discussions and are hoping to reach a deal in early 2023.
  • The World Bank announced within the week that it is releasing the second tranche of its support for the Zambia Macroeconomic Stability, Growth and Competitiveness Program - a $100.0mn concessional credit.
  • The credit released today is part of the World Bank's $275.0mn concessional development policy financing (DPF) for Zambia approved by the Board of Executive Directors on 25-Oct-22 in support of Zambia's reforms to restore fiscal and debt sustainability and promote private sector-led growth.
  • The Zambia Statistics Agency (ZSA) revealed that the nation’s GDP rose 5.3% y/y in Q3-2022 versus
     
    revised +3.4% in Q2-2022. In addition, Zambia's trade surplus remained unchanged month-on-month at ZMW2.8b in Nov-2022.
  • Zambia on Friday last week announced the results of its first-ever electronic national census, which indicated the country's population stood at 19.6mn, up from 13.1mn in 2010.
  • The Minister of Labour and Social Security, Brenda Tambatamba, disclosed that The Zambian government on Tuesday announced an upward adjustment for the minimum wages of vulnerable employees in the country.
  • As per the revised wages, the minimum wage for domestic workers has been revised from 993 Zambian Kwacha (about $55.0) to 1,300 Kwacha ($72.0) per month, while the minimum wage for general workers has been increased from 1,698 Kwacha ($94.0) to 2,313 Kwacha ($129.0) per month.


 
Zimbabwe

  • According to Zimbabwe’s National Statistics, Zimbabwe’s inflation rate moderated to 243.8% y/y in Dec-2022 from 255.0% in Nov-2022 while Consumer prices rose 2.4% m/m.
  • In addition the nations trade gap narrowed from $260.3mn in Oct-2022 to $126.7mn in Nov-2022. Exports printed at $671.3mn in Nov-2022 versus $758.8mn in previous month. Imports were $797.9 million vs $758.8 million in Oct-2022. Gold shipments contributed 27.0% of exports, followed by tobacco and nickel ore & concentrates, which contributed 25.0% and 15.0%, respectively.
  • Secretary for Mines, Pfungwa Kunaka disclosed that Zimbabwe suspended processing applications for permits to mine copper, lithium, nickel, diamonds and rare-earth minerals after a surge in demand for mining titles.


 
East Africa


 Kenya
 

  • According to the Kenya Tourism Board (KTB), the total number of tourists that visited the country between Jan – Nov 2022 climbed by 74.5% y/y to 1.2mn arrivals, from 870,465 arrivals in the same period in 2021. The increase is attributed to the 39.6% y/y increase in arrivals for leisure and holiday purposes.
  • Solarise Africa, a Pan-African energy service company, has received $3.0mn from EDFI ElectriFri to provide tailored financing solutions for decentralised energy solutions to selected commercial and industrial customers in Kenya.


 
Rwanda

  • The Rwanda Basic Education Board (REB)has announced its plans to collaborate with partners in connecting c.60.0% of primary and secondary schools to electricity and internet by 2024. Currently, only 20.0% and 57.0% of primary and secondary schools are connected despite internet penetration in the country, printing at 66.0%.
  • The government of Rwanda is planning to acquire injectable antiretroviral drugs as a way of continuing to intensify the fight against HIV/AIDS in the country.


 
Tanzania

  • The Tanzania government has iterated its plan to create an enabling environment to attract more investment in the housing sector to meet the rising demands for residential and commercial residences. In addition, this will help in boosting the country’s economic development.
  • According to the Bank of Tanzania (BoT), the broad money supply grew in 2022/2023, averaging 11.0% in Q3-2022 compared to the target of 10.3%. The outrun was supported by strong credit growth to the private sector owing to the recovery of economic activities, improved business conditions and supportive monetary policy.


 
Uganda

  • The Ugandan government has ruled out the introduction of new taxes or an increase in existing ones during the 2023/2024 fiscal year. The move seeks to support the private sector to sail through a difficult economic environment characterised by high inflation and subdued demand.
  • In addition, the government also indicated that there will be no tax cut in the 2023/2024 fiscal year, noting that attention will be focused on supporting economic productivity, implementing reforms, and enhancing efficiency in the public sector.
  • According to the Uganda Coffee Development Authority (UVDA), coffee exports declined by 15.0% y/y in Nov-2022 compared to the same period in 2021. The drop in exports resulted from drought in most regions for the second consecutive year, thus, leading to increased incidences of pests and diseases.


 
Central Africa


 Cameroon
 

  • The African Development Bank (AfDB) announced it has approved a loan of $15.6mn (about CFA9.6bn) to Cameroon to help improve the country’s public finance management. The money was channeled through the African Development Fund, AfDB concessional window.
  • Last week, the World Bank approved $100.0mn (CFA61.7bn) in financing for Cameroon to support inclusive and robust growth and strengthen the country's resilience to climate change.

 

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