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INTO AFRICA September 2019 Edition – Reviewing 2018 African Outlook

Welcome to the September 2019 edition of INTO AFRICA, a publication written by the professionals, for professionals, investors, policymakers … Advancing and providing fresh insight into Africa’s emerging markets through renowned thought leadership and peer-to-peer knowledge-sharing. The edition is titled: Reviewing 2019 African Outlook. According to the July 2019 Word Economic Outlook, the growth in sub-Saharan Africa is expected at 3.4 percent in 2019 and 3.6 percent in 2020, 0.1 percentage point lower for both years than…

South Africa $12 Billion Fee Plan to Pressure Budget, WB Says

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s plan to spend more subsidizing higher education is fiscally unsustainable and is unlikely to supply more skills to the economy, the World Bank said. The cost of post-school education and training will more than double to 172.2 billion rand ($12 billion) by 2022, or 2.5 percent of gross domestic product, from 65.4 billion rand in 2017, the Washington-based lender said in an economic update on the country…

While Rand Bulls Toasted the SARB, Stock and Bond Traders Fled

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Currency traders may have taken heart from the South African Reserve Bank’s first interest-rate hike since early 2016 on Thursday, but foreign investors reacted by fleeing the country. Even as the rand strengthened after the rate decision, leaving it poised for its best month this year, outflows from South African markets soared. Foreign investors sold a net 8.6 billion rand ($620 million) of equities and local-currency bonds, the most since May 9, according…

South Africa Bonds Jump as Treasury Surprises With Auction Cut

Posted on by The Editorial Team

JOHANNESBUGH (Capital Markets in Africa) – South African bond yields fell by the most in a month and the rand strengthened after the National Treasury said it will reduce the amount of debt sold at weekly auctions as the government’s borrowing requirement declines. While the government signalled last month it would curb bond issuance, the timing and size of the move caught traders by surprise. It was the latest tailwind for the country’s debt, which…

Rand at a Crossroads as Key Levels to Determine Rally’s Future

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Some traders are wondering whether the rand’s 20 percent rally since November has gone too far. This week may settle that question. The South African currency has just completed a so-called “golden cross”, signalling an extension of the gains versus the dollar on the back of market-friendly swings in national politics. But it has come up against another hurdle, which it briefly cleared on Tuesday before falling back. Traders may…

Rand Falls as Cheer Gives Way to Hard Reality of Ramaphosa’s Job

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – The rand fell, after clocking up its longest weekly winning run since 2010, as analysts at Rabobank and JPMorgan Chase & Co. said the currency has rallied too far. The rand weakened as much as 1.3 percent against the dollar, set for the biggest loss since Dec. 7. The selloff on Monday sent the 14-day relative strength index of dollar-rand pairing, which lingered in oversold territory for most of the past three weeks,…

South Africa Treasury Seeks Funding Plan to Boost Eskom’s Liquidity

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Treasury is identifying ways to boost liquidity at the embattled state-owned power utility as its cash reserves slide due to below-target revenue. The National Treasury is concerned about Eskom Holdings SOC Ltd.’s “current financial position and has been working closely with the Department of Public Enterprises and Eskom to address the issues that are impacting the entity’s liquidity position,” the ministry said an emailed response to questions on…

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