Upheaval Sends Kenya’s Yields Higher Than Ghana’s for First Time

Upheaval Sends Kenya’s Yields Higher Than Ghana’s for First Time

NAIROBI (Capital Markets in Africa) – Bond investors are getting worried about the political upheaval in Kenya. Opposition leader Raila Odinga’s decision to pull out of an election rerun on Tuesday, which threatens a constitutional crisis, spurred the yield on the nation’s dollar bonds due 2024 to rise 13 basis points. The rate climbed to 6.48 percent as of 2:50 p.m. in Nairobi, above the yield on Ghana’s Eurobonds due 2023 for the first since 2014. Kenyan notes have lost…

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Fairfax Is Said to Back AfriSam to Clinch African Cement Deal

Fairfax Is Said to Back AfriSam to Clinch African Cement Deal

JOHANNESBURG (Capital Markets in Africa) – Fairfax Financial Holdings Ltd. is prepared to inject as much as 5 billion rand ($386 million) to pay off bank debt owed by AfriSam Group Pty Ltd. and help South Africa’s second-biggest cement producer clinch a tie-up with larger rival PPC Ltd., according to two people familiar with the matter. The money from the African unit of the Canadian insurer will be used to repay bank loans and allow AfriSam to…

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Investors Too Busy Cheering Kenyatta to Fret About Vote Spat

Investors Too Busy Cheering Kenyatta to Fret About Vote Spat

NAIROBI (Capital Markets in Africa) – Euphoria over a President Uhuru Kenyatta win, even if the election results are preliminary, boosted the nation’s stocks by the most in Africa and sent Kenya’s dollar bonds higher. The FTSE NSE Kenya 25 Index of stocks advanced as much as 2.7 percent to the highest level in two years. The yield on the nation’s Eurobonds due 2024 fell the most since March and the shilling was little changed. With ballots from more than 97…

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Egypt Moves to End State Monopoly of Natural Gas Market

Egypt Moves to End State Monopoly of Natural Gas Market

CAIRO (Capital Markets in Africa) – Egypt is opening the door to private participation in its natural gas sector, moving to end the state’s monopoly as it pushes ahead with reforms meant to encourage investment and revive the economy. The new law signed by President Abdel-Fattah El-Sisi sets up a natural gas regulatory authority charged with licensing and devising a plan to open the gas market to competition. It also allows for the eventual import of natural…

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Africa poised as the next big thing in emerging-market stocks

Africa poised as the next big thing in emerging-market stocks

LAGOS (Capital Markets in Africa) – With plenty of economic and political issues surrounding Africa, many investors are hesitant on whether they should invest in this emerging market. The continent is consistently appearing in the news due to the fact it is struggling to contend with illnesses such as Ebola as well as the many armed conflicts that are being documented, which is making Westerners uneasy. In fact, the continent barely appears on some investors’…

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