Equatorial Guinea Economy Seen Weaker by IMF as Oil Output Drops

Equatorial Guinea Economy Seen Weaker by IMF as Oil Output Drops

MALABO, Capital Markets in Africa: Equatorial Guinea’s economy will contract further this year due to falling oil output and low crude prices, the International Monetary Fund said. The outlook for the central African oil producer is “very challenging,” the fund said in a statement late Thursday. “Weak oil revenues and limited buffers will require further cuts to public investment, leading to a deep contraction of the large construction sector and public administration,” the statement said. “As…

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Nigeria’s Biggest Miller Says Firms Face Huge Challenges

Nigeria’s Biggest Miller Says Firms Face Huge Challenges

LAGOS, Capital Markets in Africa: Flour Mills of Nigeria Plc, the country’s biggest miller by market value, said manufacturers in Africa’s most populous country are finding profits under pressure from a fall in crude prices, a weak naira and rising input costs. “Taken together, these factors have contributed to a perfect storm,” Chairman John Coumantaros told investors at a meeting in the commercial hub, Lagos, on Thursday. Flour Mills was able to “offset the impact” of…

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IMF Should Know Egypt’s Poor Economy Is Sisi’s Fault

IMF Should Know Egypt’s Poor Economy Is Sisi’s Fault

Cairo, Egypt, Capital Markets in Africa: The International Monetary Fund is riding to Egypt’s rescue. On Thursday it announced that its staff had recommended a three-year loan package of $12 billion, which is expected to be boosted with many more billions from the Arab Gulf states. Egypt, mired in an economic slump with high unemployment and rising inflation, certainly needs the help. But if recent history is any guide, it’s likely to be good money thrown…

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Egypt on Cusp of $12 Billion IMF Aid Seen Prelude to Devaluation

Egypt on Cusp of $12 Billion IMF Aid Seen Prelude to Devaluation

CAIRO, Capital Markets in Africa: Egypt moved closer to securing $12 billion of International Monetary Fund support designed to restore the confidence of foreign investors and ease a crippling dollar shortage hampering economic growth. Authorities reached an initial accord with an IMF delegation after more than a week of talks in Cairo. If approved by the fund’s executive board and Egyptian lawmakers, the agreement will be the IMF’s second-biggest active traditional loan program after Ukraine. The…

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Egypt Reaches Initial IMF Accord on $12 Billion Program

Egypt Reaches Initial IMF Accord on $12 Billion Program

CAIRO. Egypt, Capital Markets in Africa: Egypt reached an initial agreement with the International Monetary Fund over a $12 billion package designed to restore the confidence of foreign investors and ease a crippling dollar shortage hampering economic growth. The three-year agreement aims to “improve the functioning of the foreign exchange markets, bring down the budget deficit and government debt, and to raise growth and create jobs,” said Chris Jarvis, the IMF Egypt delegation head. He said the…

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Ghana Scraps Eurobond Sale as Costs Soar on Fiscal Concerns

Ghana Scraps Eurobond Sale as Costs Soar on Fiscal Concerns

ACCRA, Ghana, Capital Markets in Africa: Ghana scrapped plans to sell its fourth Eurobond in as many years, balking at the price investors demanded amid concern that the West African nation may relax its commitment to fiscal targets ahead of parliamentary and presidential elections. The government will monitor markets and revive the sale “at the optimal time and the right conditions,” the Finance Ministry said in a statement on Thursday after concluding investor meetings in the…

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IMF Says Nigeria’s Economy May Contract by 1.8% in 2016

IMF Says Nigeria’s Economy May Contract by 1.8% in 2016

LAGOS, Nigeria, Capital Markets in Africa: Africa’s largest economy will probably contract by 1.8 percent this year and curb growth in the entire region, according to the International Monetary Fund. The Washington-based lender cut its 2016 growth forecast for Nigeria from 2.3 percent projected in April, according to its World Economic Outlook update released on Tuesday. The projection for next year was reduced to 1.1 percent from 3.5 percent. The Nigerian economy will contract for the first…

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