Economy | - Part 64

Angolan parliament approves smaller 2016 budget due to low oil price

LUANDA, Capital Markets in Africa: Angola’s parliament on Monday approved a smaller 2016 budget than it had originally planned, after lower oil prices hammered state revenues in Africa’s largest crude exporter. The finance ministry said in July government that spending would be cut to $24 billion from $30 billion projected in the original 2016 budget after projected revenues were slashed to $18 billion from $24.4 billion. “The 2016 state budget revision that we just approved…

South Africa Treasury Doubt Risks Confidence, Moody’s Says

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Johannesburg, Capital Markets in Africa: Uncertainty about the leadership at South Africa’s National Treasury and political infighting are eating into investor confidence and present the greatest risks to the nation’s credit rating, Moody’s Investors Service said. “Rising political infighting and the uncertainty about continuity of leadership at the National Treasury have been creating policy uncertainty,” the company said in an e-mailed report Thursday. “We view the greatest risk to South Africa’s creditworthiness, moderate but rising, as…

S&P Downgrades Nigeria Further Into Junk as Oil Crisis Worsens

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LAGOS, Capital Markets in Africa: S&P Global Ratings downgraded Nigeria further into junk territory as Africa’s most populous nation struggles amid low oil prices and severe shortages of foreign-exchange. S&P lowered Nigeria’s rating one level to B, five levels below investment grade and in line with Kyrgyzstan and Angola. The outlook was changed from negative to stable. “Nigeria’s economy has weakened more than we expected owing to a marked contraction in oil production, a restrictive…

Gabon Misses Out on Africa Bond Rally as Vote Dispute Weighs

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GABON, Capital Markets in Africa: Gabon is missing out on Africa’s bond rally because of an electoral dispute that’s weighing on investor confidence. The oil-producing nation’s dollar bonds have lost 1.4 percent this month, the most out of 17 sub-Saharan African nations tracked by Bloomberg, which returned an average 0.6 percent. Yields on Gabon’s 2024 securities have climbed 77 basis points since the presidential poll of Aug. 27. Emerging-market bond issuers are set for a record…

Ghana’s Mahama Pledges End to IMF Bailouts in New Term Bid

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ACCRA, Capital Markets in Africa: Ghanaian President John Dramani Mahama pledged that the West African country won’t seek further bailouts from the International Monetary Fund while economic growth will almost double next year as he seeks a second term. Mahama is leading his National Democratic Congress to polls scheduled for December while the country is in the second year of an almost $1 billion loan-program with the IMF. Ghana turned to the Washington-based lender in April 2015 after…

South Africa Current-Account Gap Narrows as Rand Boosts Exports

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Johannesburg, Capital Markets in Africa: South Africa’s current-account deficit narrowed to 3.1 percent of gross domestic product in the second quarter after the nation’s exports received a boost from the lagged effect of last year’s rand weakness. The gap on the current account, the broadest measure of trade in goods and services, narrowed from a revised 5.3 percent in the first three months after the nation recorded its first quarterly trade surplus in a year, the Reserve Bank…

Zambian President Lungu Faces Challenge to Repair Economy

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LUSAKA, Capital Markets in Africa: Zambian President Edgar Lungu, who was inaugurated Tuesday after his narrow re-election last month, faces two immediate challenges: boosting an economy that’s expanding at the slowest pace in 17 years and reining in a ballooning budget shortfall. “We will remain focused on facilitating a conducive business and investment environment,” Lungu, 59, said in his inauguration speech in front of an audience that packed the 60,000-seat National Heroes stadium in Lusaka, the capital…

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