Economy | - Part 71

Fitch Cuts Mozambique Rating to CC Over Hidden Public Debt

MAPUTO, Mozambique, Capital Markets in Africa: Fitch Ratings cut Mozambique’s credit to CC, indicating that a default of some kind is probable, after the southern African nation last month disclosed more than $1 billion of previously hidden debt. The grade was cut by one notch from CCC, according to a statement e-mailed by the company Monday. The review was brought forward by five months because of a “material change in the creditworthiness of the issuer,” it said. “The…

Moody’s Sees More African Countries Seeking IMF, World Bank Help

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LAGOS, Nigeria, Capital Markets in Africa: More countries in sub-Saharan Africa are likely to turn to international lenders for emergency financing, according to Moody’s Investors Service. Ghana, Angola and Mozambique have turned to the International Monetary Fund for help in the past year and Zambia may soon follow suit. Kenya took on a $1.5 billion standby facility and Nigeria, Africa’s biggest economy, is negotiating a loan from the World Bank. Zimbabwe is also engaging with the Washington-based lenders to obtain…

Rwanda in Talks With IMF for Standby Facility as Imports Surge

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Kigali, Rwanda, Capital Markets in Africa: Rwanda is in talks with the International Monetary Fund to arrange a standby facility of about $200 million to help offset the impact of declining export revenue and surging imports, Central Bank Governor John Rwangombwa said. The collapse in global commodity prices is expected to result in “negative growth” in revenue for Rwanda’s mineral shipments this year, Rwangombwa said in an interview Friday at the World Economic Forum on Africa in the…

Zambia Will Only Take IMF Bailout If Terms Agreeable, Lungu Says

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LUSAKA, Zambia, Capital Markets in Africa: Zambian President Edgar Lungu said Africa’s second-largest copper producer will only access International Monetary Fund support if the lender’s conditions are acceptable. “If we find that there are conditionalities which we find acceptable, we will work with them,” he told reporters Friday in Lusaka, the capital. “If not, we will throw them out.” The southern African nation had earlier said it was working to seal an “inevitable” aid program from the…

South Africa’s Economic Outlook Disappoints S&P as It Weighs Rating

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Johannesburg, South Africa, Capital Markets in Africa: Economic growth in South Africa “has continued to disappoint,” S&P Global Ratings said, three weeks before the company is due to complete a review that may see the country cut to junk. S&P may lower the nation’s credit rating to non-investment grade when it announces the result of an assessment of South Africa’s BBB- ranking on June 3. Discussions on the decision are still underway, S&P Managing Director for sub-Saharan Africa Konrad…

IMF Says Ghana fiscal adjustment is on track with improved cash deficit

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ACCRA, Ghana, Capital Markets in Africa: A team from the International Monetary Fund (IMF), led by Joël Toujas-Bernaté, visited Ghana from April 27-May 11, 2016, to conduct discussions on the third review of Ghana’s financial and economic programme supported by the IMF’s Extended Credit Facility (ECF). The ECF is a lending arrangement that provides sustained programme engagement over the medium to long term in case of protracted balance of payments problems. The arrangement for Ghana…

Egypt | Inflation at 20-Month High in Egypt Adds Pressure to Raise Rates

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CAIRO, Egypt, Capital Market in Africa: The rate increase that followed the biggest one-time devaluation of the Egyptian pound in March may represent the start of a tightening cycle, as prices rose at the fastest pace in 20 months. Annual core inflation, a gauge of price increases of non-volatile consumer goods, reached 9.51 percent last month, the highest level since August 2014, the official statistics agency said on its website. Headline inflation in urban areas rose to 10.3 percent,…

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