News and economy

Critical support for Nigeria’s MSMEs and setting the record straight

Here’s what’s trending…

Nigeria’s small businesses could benefit from a new development bank that will act as a wholesale bank, lending to MSMEs through financial intermediaries at relatively lower interest rates. The bank, which was originally conceived in 2014, is being backed by the African Development Bank (AfDB), World Bank and German and French development agencies. It will have an initial capital base of $1.3 billion. 2016 was a tough year for Nigeria’s SMEs, perhaps this initiative could provide some reprieve for business people (if it finally gets off the ground).

… And just to set the record straight: “Taiwan Trade Office is Taiwan’s only representation in Nigeria and Nigeria’s Trade Office in Taipei is our only representation in Taiwan.”, according to a presidential statement after media reports that Nigeria was cutting diplomatic ties with Taiwan. On the other hand, the future of Nigerian-American relations looks promising.

Ghana’s new government is due to meet with representatives of the International Monetary Fund (IMF) to discuss implementation plans for a $918 million aid deal. The incoming government could face tough choices on IMF fiscal policy expectations versus campaign promises.

Could Kenya’s banks be in trouble? The country’s commercial lenders are relying heavily on support from the central bank.

Zambia has started revoking more than 600 mining dormant licenses.

Corporate news

South Africa’s Truworths expects lower half year profits. The clothing retailer noted weaker purchasing power among consumers due to inflation and unemployment as weighing down on sales performance.

Absa, a unit of Barclays Africa Group, could reportedly be forced to pay 2.25 billion rand ($166.32 million) to the state for an alleged unlawful apartheid-era bank bailout.

Tanzania’s President John Magufuli has directed revocation of licenses issued to investors in a mining enterprise.