- 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.
- It appears that more investors are really confident in the Nigerian Stock market (NGSE) despite the pandemic. This is because, between July 20 and July 24, the top 10 stockbroking firms in the country traded a total volume of shares valued at 95 BN NGN (56.63 MM USD). This represents 73.75% of the total value traded within the period. These stockbrokers traded 1.86 billion shares, which represents 68.93% of the total volume of shares traded last week.
- Tanzanian Gold Corp. is pleased to announce that it has signed a flexible financing agreement for up to 14 MM USD of unsecured convertible debentures with institutional investors Riverfort Global Opportunities PLC. and YA II PN, Ltd. The Company has also strengthened its balance sheet by converting 4 MM USD of outstanding gold loans and convertible loans into common shares.
Note: Weekly values are calculated on Friday of each week.
- South African mobile operator Vodacom Group Ltd reported a 6% increase reaching 1.14 BN USD group in Q1-2020 service revenue, maintained by strong demand for voice, data and financial services in its domestic market during the coronavirus lockdown.
- Radisson Hotel Group has added six hotels to its African portfolio as it pushes ahead with its expansion strategy on the continent despite the Covid-19 pandemic. The addition of the new properties in Mali, Nigeria, Ghana, Ethiopia and two in South Africa means Radisson manages nearly 100 hotels in 32 African markets.
- Stanbic Bank Kenya was recognized as Kenya best investment bank by EuroMoney Awards for Excellence 2020. The award was in recognition to the Stanbic Bank's ability to deliver solutions across a range of products and services to its customers. It also honored the bank's outstanding breadth of capabilities in terms of client-driven business across debt, equity, mergers and acquisitions, corporate advisory, and areas such as foreign exchange and cash management.
- IFC, a member of the World Bank Group, announced 50 MM USD loan to Equity Bank Kenya to help it increase working capital and trade-related lending to its small and medium-sized enterprise (SME) clients, especially those facing Covid-19 related challenges.
- Facebook investments in infrastructure and connectivity across the Africa are expected to deliver over 57 BN USD in economic benefits over the next five years. According to The Economist Intelligence Unit, Inclusive Internet Index 2020, over 800 million people in Sub-Saharan Africa are unconnected to the internet.
- China Eximbank will lend Nigeria 325 MM USD loan to expand its Galaxy national fiber infrastructure into the north of the country. The loan will allow the federal government to build phase two of the National Information Communications Technology Infrastructure Backbone (Nictib II) to the northern 19 states of the federal republic.
- Dell Technologies has reiterated its commitment to providing its customers in Africa with advanced technologies that drive business continuity and growth. The tech firm highlighted its ground-breaking portfolio of enterprise and consumer solutions that accelerate the digital delivery of modern IT services that can differentiate a business, its products, and operations.
- Credit risk management firm TransUnion has named Emile Kinuma as its new Rwanda Chief Executive. Kinuma was until recently the Chief Executive of Mobicash, the popular mobile payment and Fintech Company.