News and economy
It is somewhat of a mystery why Egypt’s foreign exchange reserves are increasing
And: buying military hardware in Kenya, among other stories
High inflation and weak growth in Africa’s top two economies, Nigeria and South Africa will likely push central bankers to hold interest rates. But while it’s prices of petrol and food that are driving up inflation in South Africa, in Nigeria, it’s a weak currency, according to an analyst.
Egypt’s finance ministry has temporarily fixed the dollar-rate for customs duty on motor vehicles at EGP 18.5 per USD in a bid to stem negative effects of the devaluation of the Egyptian Pound. 132,900 passenger cars (mostly Korean makes) worth EGP 35.3bn were sold in Egypt during the first 11 months of 2016. Meanwhile, it is somewhat of mystery why the country’s foreign exchange reserves have been on the rise
Kenya wants to buy $418 million worth of military hardware from the U.S. In neighboring Rwanda, the government managed to narrow the trade deficit over the 2015/2016 fiscal year by improving tax collections and reducing state spending. And, still in East Africa, Tanzania, against the is looking to increase trade with Turkey by over $1 billion. Turkey’s President Erdoğan was on a state visit to the country.
Zambia will close down one of its copper mines in 2021 due to depletion of ore. The Chinese-owned Chibuluma South Mine supports about 850 workers.
Zimbabwe is to receive a $20 million African Development Bank (AfDB) soft commodities facility meant to support farmers improve produce for exports.
Only 10.1% (71% of whom are male) of Nigeria’s total working population are registered under the country’s pension scheme.
Corporate News
Indications are that MTN might not list on the Nigerian Stock Exchange in 2017 and could instead put off the listing to 2018 partly due to poor performance of the bourse in recent times.
South Africa’s MMI Holdings has entered the Ugandan insurance market hoping to cash in on the extremely low (under 1%) insurance penetration.
Kenyan investment firm Cytonn is partnering with China National Aero Technology International Engineering Corporation (Cactic) to construct its Sh3 billion mixed housing development. Still in Kenya, a local commercial lender has taken audit firm Ernst & Young for allegedly misleading the bank to purchase shares in a troubled supermarket chain.
