News and economy

Kenya dominates private equity in East Africa while IMF warns Tanzania

Here’s what’s trending…

Kenya is expected to continue dominating private equity in the East Africa region. Analysts point to attractive valuations and high return potential as boding well for PE in the country.

The IMF says Tanzania’s economy may suffer as a result of “the currently tight stance of macroeconomic policies, the slow pace of credit growth.. slow implementation of public investment, and private sector uncertainty…”.

Nigeria’s manufacturing sector remains under pressure. The country has surpassed Angola in oil production to regain the position of top oil producer in Africa. Angola has moved to cut production in line with the OPEC deal to reduce output among member states.

Kenya’s most ambitious infrastructure development, the Standard Gauge Railway, is being called into question even as costs spiral up an estimated four times of the original projections.

Rwanda’s inflation was 7.3 percent year-on-year in December compared with 6.4 percent the previous month while Egypt’s annual urban consumer price inflation jumped for a second month in December to 23.3 percent from 19.4 percent in November.

Zambia has received a loan of US$286 million from India for infrastructure development to de-congest Lusaka City.

Mauritius tourist arrivals rose 11 percent in 2016.

Corporate news

Total SA will buy a controlling stake in a project in Uganda from Tullow Oil Plc for $900 million.

Kenya Airways is embarking on a second phase of layoffs in its turnaround plan. The firm is in search of a new chief executive.

Stockdale Street Ltd., representing South African diamond-mining billionaire Nicky Oppenheimer’s family, is investing 100 million rand ($7 million) in a new hedge fund.