Selected Capital Markets, Economic and Political News Around Africa

Ethiopia Devalues Birr by 15%, Increases Interest Rate: Ethiopia devalues birr by 15% from Oct. 11, Fana Broadcasting Corp. reports, citing National Bank of Ethiopia Deputy Governor Yohannes Ayalew. Dollar will exchange for 26.9303 birr. Drop in global commodity prices has hurt nation’s export earnings from coffee, oil seeds, leather, gold. Interest rate will increase to 7% from 5%

Mozambique’s Zandamela Says FX Reserves, Exchange Rate Stable: The exchange rate of the Mozambican currency, the metical, is now relatively stable after a period of high volatility, Mozambique Central Bank Governor Rogerio Zandamela says at a conference in Lisbon. Foreign exchange reserves situation is also “relatively comfortable;” enough to ensure about 6 months of imports. More than a year ago, Mozambique was losing reserves and exchange rate “exploded”. Transition to current situation wasn’t easy; country was able to deal with it because it accumulated enough reserves to calm down things.

Nigeria’s NNPC Says Not Obliged to Clear Contracts With Minister: “The law and the rules do not require a review or discussion with the minister of state or the NNPC Board on contractual matters,” Ndu Ughamadu, Abuja-based spokesman for the state oil co., says Monday in statement posted on its website. “What is required is the processing and approval of contracts by the NNPC Tenders Board, the president in his executive capacity or as minister of petroleum, or the Federal Executive Council, as the case may be”. NNPC says President Muhammadu Buhari ordered it to respond to criticism by Minister of State for Petroleum Emmanuel Kachikwu that oil-contract awards worth at least $24b didn’t follow due process. October 5, Nigerian Minister Is Said to Query $24 Billion Oil Contracts.

Oranto Petroleum May Spend Up to $15m on Uganda Oil Search: Budget for exploration of Ngassa Block ranges from $10m to $15m, Oranto Chairman Prince Arthur Eze tells reporters in Ugandan capital, Kampala. Uganda granted co. 2 exploration licenses for 344 square kilometer block and 2 production sharing agreements have been signed. Licenses for Ngassa Deep Play and Ngassa Shallow Play areas are for 4 years of two equal phases, Uganda Energy Minister Irene Muloni says. Offer of licenses marked end of Uganda’s first round of bidding. Please note on September 14, Uganda to Re-Offer Oil Blocks Not Taken in First Round Bidding

Egypt Has MOU to Operate Oil/Gas Pipelines in Jordan: Two countries signed MOU to establish a joint venture to operate and maintain Jordan’s gas and oil pipelines, Egypt’s oil ministry says in emailed statement. Egypt, Jordan also signed another MOU to study potential of gas transfer projects in Jordan.

Mozambique’s Zandamela: African Economies Need More Integration. Africa’s 54 countries have a poor level of commercial and financial integration that translates into a weak level of inter-dependence among the continent’s economies, Mozambique Central Bank Governor Rogerio Zandamela says at a conference in Lisbon. In 2015, 45% of foreign direct investment in Africa came from western Europe, making the continent dependent on policies from countries outside Africa. Says there are high economic asymmetries and weak financial markets in Africa. Calls for more economic integration among African countries to allow for a better distribution of wealth in the continent.

Nigeria President Buhari Seeks Senate Approval for $5.5b Debt: Nigerian President Muhammadu Buhari seeks to fund budget deficit with external debt, according to letter read by Senate President Bukola Saraki at Tuesday’s proceedings. Please note on September 27, Nigeria Plans to Sell $5.5b of Eurobonds in Fourth Quarter.

South Africa’s Gordhan Says Economy Requires `Some Radical Change’: “Ours is an exclusionary economy, we do require some radical change,” former Finance Minister Pravin Gordhan says in Johannesburg. Citizens should raises their voices “loud and clear” to end state capture so that the “economy can be liberated” and achieve growth of 3%-5%, he says. “Politics have messed up our economy since Nene was dismissed under false pretenses,” referring to Nhlanhla Nene’s removal as finance minister in Dec. 2015. If South Africa had to resort to austerity it would be a “disaster,” given the levels of poverty. Deputy President Cyril Ramaphosa “can definitely turn the economy around, if elected”. Mining minister has a particular agenda and his agenda is not constructive for South Africa: Gordhan

Sygnia Climbs Second Day; Benefits From ETF Manager Deal: Sygnia gains as much as 4.8% in Johannesburg, rising for a second day, after upgrade to buy from hold at Vunani Securities. Sygnia assets under management update of 184b rand is 16% ahead year-on-year, Anthony Clark, analyst at Vunani, writes in note. Stripping out the 11.3b billion rand added through the acquisition of the db X-trackers ETF platfom gives the business a 9% yr-on-yr accumulation in assets. Vunani PT increased to 15 rand.

Togo Phosphate Workers Begin 3-Day Strike Over Bonuses: Employees of the National Phosphate Company of Togo, known as SNPT, halt work at two production sites to demand arrears and unpaid bonuses, Norbert Amouzou, spokesman of Sydemines union, says by phone. Work stoppage at Kpeme, Hahotoe sites Union signed an agreement with SNPT’s management last year for salary increases and payment of bonuses; union pledged to not hold strikes for 4 years. “None of the articles in the agreement have been respected, so we have the right to resume our demands and our strikes”: Amouzou. SNPT Managing Director Michel Kezie said he couldn’t immediately comment when contacted by phone. Phosphate output fell 25% last year vs 2015 because of protests, strikes

South Africa Exported 54,041 Tons Yellow Corn in Week to Oct. 6: Shipments included 51,254 tons to Japan, balance to neighboring southern African nations, South African Grain Information Service says in statement on its website. Country also exported 7,942 tons of white corn to neighboring countries. South Africa imported 37,337 tons of wheat from Ukraine; exported 67 tons to Botswana

Zimbabwe Imports 23.6m Kg Liquefied Petroleum Gas in Jan.-Aug. “We are definitely going to surpass the figures we imported the whole of last year,” Zimbabwe Energy Regulatory Authority CEO Gloria Magombo tells reporters in capital, Harare. Country imported 24.98m kilograms LPG in 2016

Fidelity Bank Ghana to Merge to Meet Capital Rules, Citi FM Says. Move part of strategy to entrench bank as one of Ghana’s largest, Accra-based radio station reports on its website, citing MD Jim Baiden. Baiden declined to name partners being considered, Citi FM says

Rwanda September Inflation Rate 3.8% Y/Y vs 3.2% in August. Prices rose 1.1% in month, Rwanda Institute of Statistics says in statement on its website.

Kenya’s Shilling Steady vs USD as Central Bank Injects Liquidity. Shilling unchanged at 103.30 vs USD by 12:25pm amid minimal activity in the foreign currency market. “Looking ahead, trading is expected to be edgy as political uncertainty comes back to the fore,” Commercial Bank of Africa says in emailed note. Central Bank expected to protect the USDKES currency pair from “spiraling significantly out of control”. Interbank rate fell 3rd day Monday, down 14bps to 8%, lowest since Sept. 8., after central bank addressed tight liquidity. Central bank injected 15b shillings Friday, 5b shillings Monday; may inject 7b shillings Tuesday through reverse repos.

M-Kopa Kenya Secures $80m of Commercial Debt Financing. Stanbic Bank of Kenya leads $55m local-currency debt facility, committing $9m, according to statement from Nairobi-based company. FMO of the Netherlands, Norfund provide $13m each. Company also secures $25m in U.S. dollar debt from responsAbility, Symbiotics, Triodos Investment Management. Funds to be used over next three years to provide financing for pay-as-you-go solar installations in 1m homes.

Total Buys Stakes in Fields Off Namibia and South Africa. Total to buy 70% of Impact Oil & Gas’s interest in block 2913B off Namibia and 77.8% of Impact’s interest in Orange Basin Deep TCP in South Africa, statement shows. Impact Oil & Gas doesn’t disclose financial terms of deal.