- Kenya and 71 other countries eligible for the Rapid Credit Facility (RCF) from the International Monetary Fund (IMF) now have a leeway to borrow beyond their annual limits. This is after the IMF’s executive board approved a temporary increase in the annual limits on overall access to resources in the General Resources Account and the Poverty Reduction and Growth Trust on Wednesday.
- According to the Ugandan ministry of finance, Uganda earnings from gold exports more than doubled from 4 MM USD registered in April 2020 to 126.3 MM USD in May 2020. Comparatively, the earnings from coffee exports have increased from 36.9 MM USD in April 2020 to 42.5 MM USD in May 2020.
- The World Bank’s Board of Executive Directors has approved 554 BN KES (150 MM USD) to enable greater access to higher-quality secondary education among Ugandan children in safer and better-equipped learning environments that are also supportive of girls’ education.
- Majority of Kenyan Small and Medium Enterprises (SMEs) projects will struggle in paying salaries and servicing loans in the next three to six months. The WYLDE International SME performance report states that cash flow is the greatest problem facing the sector followed by disrupted sales.
- Sub-Saharan Africa’s economy will contract 3.1% in 2020 but expected to bounce back to around 3.5% growth in 2021. This decrease is after shutdowns disrupted activity and as daily cases of coronavirus are still rising but a recovery is expected next year. Some countries have begun relaxing restrictions, but virus cases are still increasing.
- Rating agency Moody’s has predicted that Zambia debt will go beyond 110% of its Gross Domestic Product (GDP) in 2020 and the sovereign credit fundamentals will remain very weak in the future.
- Zambia National Commercial Bank plans to launch microfinance services including loans and savings for poor households in Q4-2020. The services are part of Zanaco’s digital strategy and will rely on digital credit-scoring and collection systems. The loans will be mainly to households, for amounts as small as 50 USD or 100 USD.
- Namibia registered a deficit on the current account during Q1-2020, mainly due to deterioration in the merchandise trade balance. The current account deficit reached 432 MM NAD (25.3 MM USD) in Q1-2020 compared to a surplus of 312 MM NAD (18.27 MM USD) in Q1-2019, according to the Bank of Namibia's (BoN).
- More airlines have announced the resumption of international flights in and out of Nairobi starting next week, after over four months hiatus owing to the global Covid-19 pandemic. Qatar Airways, Emirates, Air France, KLM and British Airways have confirmed they would resume flights to Nairobi in the first week of August.
- Salem Al Suwaidi, Director General of Ajman Chamber of Commerce and Industry (ACCI), received Duncan Mollema, Consul General of the Republic of Zambia at the Chamber’s premises to discuss the cooperation and to explore the most important investment opportunities available to both parties. The meeting also aimed to increase the volume of intra-trade and partnership between businessmen and investors of Ajman and Zambia.
- Nigerian stock market began the trading week on a positive note. The All Share Index gained 29% to close at 24,766.12 basis points as against +0.18% appreciation recorded at the last trading session. Nigeria bourse Year-to-Date (YTD) returns currently stands at -7.73%. Trading volume was impressive on Monday’s trading session as trading volume surged by +83.45% as against -32.45% plunge recorded in the previous session. The top gainers were NEIMETH up 10.00% to close at 1.65 NGN, FLOURMILL up 9.97% to close at 18.75 NGN and GLAXOSMITH up 8.16% to close at 5.3 NGN.
- Tanzania Share Index (TSI), remained constant during the week, closing at 3,466.81 points for the third week in a row as all domestic counters record no movement in prices in the mentioned period. Similarly, the domestic market capitalization remains at 3.94 BN USD same as the close of the last two weeks.
Note: Weekly values are calculated on Friday of each week.
- Access Bank of Nigeria PLC has announced the final acquisition approval of Kenya-based Translational Bank PLC. The bank's vision is to be the world's most respected African bank and our entry into the Kenyan market, a major gate way in East Africa not only brings us closer to that vision but enables our customers to tap into extensive global network that translates into immense business opportunities, robust and efficient digital solutions, competitive products and unrivalled customer experience.
- Custodian Investment announced on Monday to acquire a 51% stake in UPDC, a real estate company owned by UACN. This is confirmed in the press release posted on the website of the Nigerian Stock Exchange.
- Canada-based Fairfax Africa Holdings Corporation has reached an agreement to merge with Helios Holdings limited, the Africa-focused private equity firm which was co-founded by Tope Lawani and Babatunde Soyoye. The purpose of the merger is to create a truly pan-African investment firm.
- Access Bank Zambia Limited announced that it is now in advanced discussions with Cavmont Capital Holdings Zambia Plc. regarding possible merger of Cavmont Bank Limited. The announcement was disclosed by Nigerian Stock Exchange (NSE) in a corporate disclosure which was duly signed by the Company Secretary, Mr. Sunday Ekwochi.
- Honoris United Universities, an African education group backed by Actis, has acquired the Nile University in Abuja, its first University acquisition in Nigeria and the entire West African region. The group owns private universities in Morocco, Tunisia, Mauritius, South Africa, Zambia, and Zimbabwe. Now, it wants to add Nigeria to its portfolio.
- FCMB Pensions Ltd, a subsidiary of FCMB Group Plc, has commenced acquisition talks with the shareholders of AIICO Pension Managers Ltd. The company wants to acquire 70% stakes in AIICO Pension Managers Ltd which is currently held by AIICO Insurance Plc, the parent company. An additional 26% stake in AIICO Pension (which is held by other shareholders) would also be acquired by FCMB Pensions Ltd, thereby bringing the proposed acquisition to 96%
- Airtel Africa Plc reported a 9% y-o-y growth in its revenue in Q2-2020. The company revealed that its revenues increased to 851 MM USD in Q2-2020 compared to 796 MM USD in Q2-2019. Its revenue growth was hampered by the devaluation in Nigeria, Kenya and Zambia, its key markets.