Fitch keeps S.Africa’s investment-grade rating but cuts outlook to negative

Fitch keeps S.Africa’s investment-grade rating but cuts outlook to negative

JOHANNESBURG (Capital Markets in Africa) – Ratings agency Fitch affirmed South Africa’s investment-grade credit rating at one notch above ‘junk’ on Friday but changed its outlook to negative from stable, warning that political risks could hurt growth. With the economy expected to grow by only half a percent this year, South Africa has been racing to avert a downgrade of its sovereign debt to sub-investment status, which would raise its borrowing costs and deter investment. Africa’s…

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MPC Maintains Status Quo but Ignores Elephant in the Room …

MPC Maintains Status Quo but Ignores Elephant in the Room …

LAGOS (Capital Markets in Africa) – The Monetary Policy Committee (MPC) held its scheduled 6th and final meeting for 2016 on the 21st and 22nd of November. The conclusions from the two-day deliberations were broadly in consonance with our prognosis in the Pre-MPC note; “Blunted Policy Tools Call for Rollback of Administrative Measures” where we projected that the MPC will likely hold all rates constant whilst reinstate the need for the CBN’s hierarchy to properly…

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Moody’s keeps South Africa’s sovereign rating at Baa2, negative outlook

Moody’s keeps South Africa’s sovereign rating at Baa2, negative outlook

JOHANNESBURG (Capital Markets in Africa) – Credit ratings firm Moody’s Investors Service kept South Africa’s sovereign rating unchanged at Baa2 on Friday, two levels above subinvestment grade, with a negative outlook.  Africa’s most industrialised country, which is expected to see economic growth of around 0.5 percent half a percent this year, has been trying to avert a sovereign rating downgrade to junk status that would raise borrowing costs and deter investment. “The negative outlook on South…

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Central Bank of Kenya to hold rates at 10 pct on Nov 28

Central Bank of Kenya to hold rates at 10 pct on Nov 28

NAIROBI (Capital Markets in Africa) – Kenya is expected to keep interest rates stable on Nov. 28 ahead of an expected rate rise in the United States while cautiously dealing with the impact of new banking regulations, a Reuters poll found on Friday. The shock of trade-sceptic Donald Trump ascending to the top office of the world’s biggest economy has wrong-footed African countries, many of which have enjoyed beneficial trade agreements. A stronger dollar and higher…

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Nigerian recession deepens in Q3, oil output falls

Nigerian recession deepens in Q3, oil output falls

LAGOS (Capital Markets in Africa) – Nigeria’s recession deepened in the third quarter and oil production fell, the National Bureau of Statistics (NBS) said on Monday, as a dollar shortage kept Africa’s biggest economy in a stranglehold. Gross domestic product contracted by 2.24 percent year-on-year, the NBS said. That was even worse than the 2.06 decline in the second quarter when Nigeria fell into recession for the first time in 25 years. The data came on…

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OPINION: What Trump’s Presidency mean for Africa’s Economy?

OPINION: What Trump’s Presidency mean for Africa’s Economy?

LAGOS (Capital Markets in Africa) – The ‘’Trump victory” in the United States drew very similar surprises and developed market angst compared with the “Brexit leave” vote in June this year. The prospect of restrictive migration policies, more trade barriers, and protectionist policies which according to their advocates will stimulate job creation and address income equality at home should be considered as a plausible response in shaping the Sub-Saharan African economic landscape in the future….

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How Trump’s victory creates mixed fortunes for Africa’s economies

How Trump’s victory creates mixed fortunes for Africa’s economies

LAGOS (Capital Markets in Africa) – Donald Trump’s recent victory as US’ 45th president leading to concerns around US political risk and its implications for the world economy as well as protests and demonstrations across the United States however his unconventional rhetoric during his campaign trail caused concern to global currencies and capital markets and is likely to create mixed fortunes for African economies says an Economic Report by Ecobank . In the short term…

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