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Tuesday, 19 May 2020

Trump claims taking the Hydroxychloroquine as a Cure for Covid-19


Insights Africa

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Economic Outlook

Economic Outlook

  • Measures taken to combat the coronavirus pandemic have seen 92% of Nairobi County’s low-income residents suffer reduced incomes, forcing them to cut back on essential purchases, including food. Moreover, more than 30,000 formal jobs have been lost in the manufacturing sector and 80% of the existing jobs are vulnerable as the Covid-19 pandemic.
  • Faced with the Covid-19 pandemic crisis, President Uhuru Kenyatta commendably announced a stimulus package aimed at putting money into people’s pockets in order to stimulate the economy. The National Treasury will offer a 100% tax relief for persons with a gross monthly income of up to 24,000 KES (224.72 USD).
  • The value of payments made through cards increased by 64 BN KES (15.35 MM USD) in Q1-2020 as the Covid-19 pandemic discourage cash handling. The transactions via credit, debit cards and point-of-sale (PoS) machines registered 165.56 BN KES (1.55 BN USD) in Q1-2020 compared to 163.91 BN KES (1.53 BN USD) in Q1-2019.
  • According to the International Monetary Fund (IMF), Kenya requires at least 7 BN KES (2.1 BN USD) to bridge the external financing gap opened by the pandemic shock that has exposed the local currency to volatility.
  • To mitigate the economic impact of Covid-19 on Micro, Small and Medium Enterprises (MSMEs) in Nigeria, the National Agency for Food and Drugs Administration and Control (NAFDAC) has reduced tariff for registration of products by small businesses for a three month period.
  • Nigeria oil revenue is likely to decrease by between 70% and 80% in 2020, representing between 15 BN USD and 17 BN USD. It is worthy to mention that oil contributes 90% of the country's exports, 30% of bank credits and 50% of fiscal revenues.
  • Rwanda has drawn up a recovery plan that includes storing up an equivalent of maize and beans for 10% of the population at 2,500 kilocalories per person per day, in a bid to ensure strong food reserves after the pandemic is defeated.
  • Rwanda tourism sector which has taken a hit from the Covid-19 pandemic is one of the country's top foreign exchange earners and is expected to take longer than the rest of the economy to recover which necessitates implementation of a robust domestic tourism initiative.
  • The President Museveni of Uganda stated that all Ugandans aged six and above will be given free facemasks in a bid to protect themselves against the spread of coronavirus. Stressing that the mask must be worn all the time when you are in public. Whether you are sneezing, talking or coughing.
Political Events

Political Events

  • President Donald Trump stated that he’s taking antimalarial medication hydroxychloroquine and zinc because he believes the drugs could prevent Covid-19. He’s been taking the drugs every day for a week and a half knowing that he doesn’t have any Covid-19 symptoms. It is worthy to mentions that there is still no evidence that taking hydroxychloroquine can prevent someone from contracting or getting sick from the coronavirus.
  • The Ethiopian government stated that there is no reason to delay filling its controversial mega-dam despite warnings from Egypt that such a move could destabilize the region, according to a letter from Ethiopia’s foreign minister to the UN Security Council. The Grand Ethiopian Renaissance Dam has been a source of tension in the Nile River basin ever since Ethiopia broke ground on the project in 2011.
Stock Market

Stock Market

  • President Donald Trump stated that he’s taking antimalarial medication hydroxychloroquine and zinc because he believes the drugs could prevent Covid-19. He’s been taking the drugs every day for a week and a half knowing that he doesn’t have any Covid-19 symptoms. It is worthy to mentions that there is still no evidence that taking hydroxychloroquine can prevent someone from contracting or getting sick from the coronavirus.
  • The Ethiopian government stated that there is no reason to delay filling its controversial mega-dam despite warnings from Egypt that such a move could destabilize the region, according to a letter from Ethiopia’s foreign minister to the UN Security Council. The Grand Ethiopian Renaissance Dam has been a source of tension in the Nile River basin ever since Ethiopia broke ground on the project in 2011.

                         Note:  Weekly values are calculated on Friday of each week.

Companies Transactions

Companies Transactions

  • Global ratings agency Moody's has changed the outlook of local student hostel developer Acorn Group's 5 BN KES (46.8 MM USD) green bond facility to negative from stable, citing the recent downgrade of Kenya's sovereign outlook and potential hit on demand due to the coronavirus outbreak.
  • Family Bank Kenya has partnered with Toyota Kenya to offer up to 95% financing to Small and Medium Enterprises offering crucial services during the Covid-19 pandemic. The loan facility will allow the small businesses to purchase the Hilux single and double cab pick-ups payable within 60 months.
  • Total E&P had acquired Tullow's remaining 33% stake for 2.1 TR KES (19.66 BN USD), with 1.8 TR KES (16.85 BN USD) paid once the deal has been approved by government, and the balance of 780 BN KES (7.3 BN USD) paid whenever the final investment decision has been reached.
  • Kenya Airways has asked the Treasury for 7 BN KES (65.5 MM USD) emergency bailout after its aircraft were grounded due to the restrictions on international passenger flights sparked by the coronavirus pandemic that has killed over 280,000 people
  • West Kenya Sugar Company extended its market share, jumping 7% points in Q1-2020 compared to the Kabras based firm controlled 30% of the total sales. The Rai Group, which owns the company has attributed the market leadership to timely payments to farmers and investment in new machines that have created efficiency.
  • Global ratings agency Moody’s has warned that the top banks’ large exposure to Kenyan government securities poses a risk to their credit profile, citing the link between their rating and that of the State now with a negative
  • PwC Nigeria has thrown its weight behind the Central Bank of Nigeria (CBN) led Coalition Against Covid-19 by executing her 100 MM NGN (256,410 USD) intervention to support individuals, businesses and government in responding to the impact of the Covid-19 pandemic in Nigeria.
  • Stanbic IBTC Holdings PLC, a member of Standard Bank Group, has advised that Nigeria and her citizens must take proactive measures needed to avoid the looming recession that is expected to follow the pandemic.
  • Co-op Bank and British American Tobacco have made it to the Morgan Stanley Capital International (MSCI) Frontier Markets Small Cap Index, increasing the firms’ visibility to global institutional investors. Other listed Kenyan companies on MSCI including Safaricom, KCB Group, Equity Group and EABL.

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