Overview of the African economy as @ 240921



Friday, Sept. 24, 2021 / 12:25 p.m. / United Capital Research / Header image Credit: iStock

Anglophone West Africa


  • Nigeria has successfully issued new Eurobonds, the offer attracting bids worth $ 12.2 billion, implying an offer-to-cover ratio of 4.1x, considering an initial offer $ 3.0 billion.
  • The Debt Management Office (DMO) took advantage of the strong interest to sell $ 4.0 billion of Eurobonds ($ 1.0 billion more than initially expected) with the distribution between the tenors printed at: 7 years ($ 1.25 billion at 6.125%), 12 years ($ 1.50 billion at 7.375%) and 30 years ($ 1.25 billion at 8.250%)
  • The Central Bank of Nigeria (CBN) has revealed that the e-naira to be launched on October 1 has legal tender equal to the value of the naira and therefore must be accepted as a method of payment by all merchants and outlets. . .
  • According to the Chinese ambassador to Nigeria, the Chinese government and Chinese banks are studying the idea of ​​establishing operations in Nigeria to expand trade relations between the two countries.
  • The Nigerian Senate approved the 2022-2024 Medium Term Expenditure Framework and Budget Strategy Paper with a benchmark oil price set at $ 57.0 / b, while a stable exchange rate of 410./$ was screened.


  • Ghana’s GDP grew 3.9% year-on-year in Q2-2021, in real terms. This compares favorably with the growth of 3.1% yoy recorded in Q1-2021 and the contraction of 5.7% yoy recorded in Q2-2020. Growth was driven by the non-oil sector (+ 5.2% yoy) while the oil sector contracted by 10.8% yoy.
  • The Ghana Cocoa Board (COCOBOD) has secured a short-term syndicated loan of $ 1.5 billion to finance cocoa production and purchases for the 2021/2022 season.
  • The funds were raised from a consortium of 28 local and international banks at a rate of 1.1% plus Libor, with repayments spread in 7 equal installments from February-2022 to August-2022.
  • The Bank of Ghana is expected to maintain a stable monetary policy rate (MPR) of 13.5% for at least the next two and a half years, according to the Institute of Economic Affairs (IEA).

Francophone West Africa


  • According to the Minister of Economy and Planning, Amadou Hott, the Senegalese economy is expected to grow by 5.0% y / y in 2021, against 1.5% y / y in 2020 and 4.4% y / y in 2019.

East Africa


  • Kenya and Ethiopia have signed a free trade area agreement, with the aim of boosting cross-border trade and movement of people.
  • Kenya Power has dropped its request to the Energy and Petroleum Regulatory Authority (EPRA) to increase electricity tariffs by up to 20.0%, focusing instead on cutting costs and reducing system losses.
  • Tullow Oil has announced its intention to invest an additional KSh 340.0 billion in its crude oil development project in Kenya, in order to develop upstream activities and the pipeline between Turkana and Lamu.
  • According to a report titled “National Study of Digital and Digital Work in Kenya”, approximately 5.0% (1,209,506 people) of Kenya’s adult population are digital workers, a significant increase from around 3.0% in 2019 (638,400 people).


  • Rwanda was ranked fourth for attractiveness of investment in Africa, down from ninth place last year, according to the latest Rand Merchant Bank (RMB) ranking.
  • The Rwandan cabinet has decided to gradually ease restrictions on bars, in a context of slowing Covid-19 cases and improving vaccinations. The cabinet also relaxed restrictions on movement in Rwanda’s capital, Kigali.


  • Tanzania invested an additional $ 2.7 million in pan-African housing finance provider Shelter Afrique, increasing its stake from 1.2% to 1.5%. Other key shareholders are Kenya, Nigeria and the African Development Bank (AfDB).


  • According to the Bank of Uganda (BoU), the total amount of money in dormant accounts in Ugandan banks rose to 9.5 billion shillings from 700.0 million shillings in 2014.
  • Gold exporters in Uganda have called on the Ugandan government to lower taxes. The government had previously imposed levies of 5.0% and 10.0% per kg of refined and untreated gold, respectively.
  • Notably, due to tax negotiations, Uganda did not export gold (its biggest dollar income) in July-2021, precipitating an around 51.0% drop in export earnings, to 300 , $ 4 million against $ 455.4 million in June-2021 according to BoU.

South Africa

South Africa

  • According to Statistics South Africa (Stats SA), the country’s headline inflation rate for August-2021 rose to 4.9% yoy from 4.6% yoy in July-2021. The annual increase exceeded the midpoint (4.5%) of the South African Reserve Bank’s monetary target range (3.0% -6.0%). for the fourth consecutive month.
  • On a monthly basis, inflation slowed to 0.4% m / m in Aug-2021, from 1.1% m / m in July-2021. Transportation was the main contributor to the Consumer Price Index (CPI), increasing 9.9% year-on-year and 2.2% m / m.
  • According to the CEO of Minerals Councils South Africa, mining companies in the country plan to spend up to $ 2.7 billion to build 2,000 megawatts of power generation capacity. The plan was prompted by the government’s decision to allow construction of up to 100 megawatts of capacity without a production permit.
  • According to Transport Minister Fikile Mbalula, the South African government has identified the N2 Wild Coast National Road Network as one of its strategic integrated projects to catalyze economic growth at national, provincial and local levels. The project, which is evaluated at c. R3.5 billion will be the highest in Africa.
  • South African Airways has resumed its local flights and will begin international flights in the coming days. This occurs after operations have been halted for over a year due to bankruptcy.


  • According to the Ministry of Territory, at least 12.0 million Angolans are expected to be registered for the general elections next year. It is expected that the total expenditure of the electoral process would be c. $ 194.0 million.
  • The Angolan government and the World Bank have signed a financing agreement worth $ 150.0 million for the purchase of Covid-19 vaccines.


  • Namibia is seeking to raise capital for its green hydrogen projects, according to the Minister of Finance. Although projects are still organized without any details on how much capital they will raise, the country hopes that renewables will help spur growth.


  • The Bank of Zambia issued a press release to counter allegations made against it in some sections of the media. The media suggested that bank officials were ordered to withdraw huge sums of money from the bank for distribution to third parties.
  • An Egyptian trade mission comprising 15 Egyptian countries visited Zambia with the aim of increasing exports to the African market and better identifying the needs of the Zambian market.


  • According to the Minister of Health and Children, Constantino Chiwenga, the government of Zimbabwe has threatened to withdraw the salaries of civil servants who do not get vaccinated against Covid-19 before October 15, 2021.
  • The Minister of Finance and Economic Development told the International Business Conference that Zimbabwe has exceeded the Abuja Declaration target which requires African countries to devote at least 15.0% of their national budgets to the sector. of health. The country recorded 20.0% of its budgetary expenditure on health.

central Africa


  • The World Bank has announced that it will pay $ 740.0 million to Cameroon to help with its development. The funds are expected to support agricultural development projects, secondary school projects, women’s initiatives and the Cameroon-Chad power interconnection.
  • According to the National Institute of Statistics (INS), Cameroon’s aluminum exports fell 34.7% year-on-year to 14,925 tonnes of aluminum in H1-2021 against 22,869 tonnes of aluminum in H1- 2020. This decrease is mainly due to the decline in operational activities of ALUCAM, the only steel producer in the CEMAC region.

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