BUSINESS - The African Mirror

Jun

17

2024

Ghana’s economic crisis was caused by government borrowing – the central bank did the best it could: economist

BUSINESS

GHANA is going through its worst economic crisis in a generation. The past two years have seen record-high inflation in the country. Ghana’s central bank (the Bank of Ghana) has been criticised in some quarters for its role in the country’s economic malaise, which has hit the profitability of Ghanaian banks. The Conversation Africa’s Godfred Akoto Boafo speaks to economist Emmanuel Ameyaw about monetary policy decisions made by the central bank during this period. What was the Bank of Ghana’s role in the inflation rate crisis? In 2002, Ghana’s parliament enacted the Bank of Ghana Act 612, Section 33(2), granting…

Jun

16

2024

By ELISHA BALA-GBOGBO

Nigerian inflation rises in May to new 28-year high

BUSINESS

NIGERIA'S annual inflation (NGCPIY=ECI) rose to a new 28-year high of 33.95% in May, official data showed, worsening hardships that have fuelled public anger against President Bola Tinubu's economic reforms. It was the 18th straight month that inflation has risen, up from 33.69% a month earlier. Price pressures have been spurred by Tinubu's reforms, chiefly slashing petrol and electricity subsidies and devaluing the naira currency twice within a year. Labour unions, which suspended a strike called to demand a new minimum wage, have argued that the reforms hurt the poor and have left millions grappling with the worst cost-of-living crisis in decades. Data published by…

Jun

15

2024

By OPE ADETAYO

World Bank approves Nigeria’s $2.25 billion loan request

BUSINESS

THE World Bank has approved a total of $2.25 billion loan for Nigeria to help stabilise its economy following reforms and scale up support for the poor, it said in a statement. In April, Finance Minister Wale Edun said Nigeria was seeking up to $2.25 billion in World Bank loans and expects the bank's board to approve the request in June. Nigeria President Bola Tinubu last year in May initiated the country's boldest reforms in decades, scrapping a popular but costly petrol subsidy and sharply devaluing the currency twice to try to kick-start growth. But the moves stoked inflation and…

Jun

15

2024

By MAXWELL AKALAARE ADOMBILA, LIBBY GEORGE and RODRIGO CAMPOS

Ghana’s bondholders to re-engage government next week on debt rework

BUSINESS

GHANA and its bondholders will restart talks next week to hash out a debt restructuring deal on $13 billion of international bonds, four sources told Reuters, on the heels of a deal finalised with official creditors earlier this week. Ghana, a gold and cocoa producer, defaulted on most of its $30 billion in external debt in 2022, weighed by the COVID-19 pandemic, the war in Ukraine and rapid global interest rate hikes that boosted borrowing costs. It had kicked off formal talks with two groups of bondholders in mid-March - a group of Western asset managers and hedge funds and another one…

Jun

15

2024

By TANNUR ANDERS and BHARGAV ACHARYA

South African rand gains as ANC and DA clinch unity government deal

BUSINESS

SOUTH Africa's rand gained after the Democratic Alliance said a deal had been struck with the African National Congress to form a unity government. The DA reached an agreement with the ANC and the Inkatha Freedom Party (IFP) after two weeks of negotiations following last month's election, DA leader John Steenhuisen said. "The rand is loving it!" said Danny Greeff, co-head of Africa at ETM Analytics. Analysts said markets also welcomed the exclusion of the far-left Economic Freedom Fighters and former President Jacob Zuma-backed populist uMkhonto we Sizwe (MK) parties. "News of this coalition will temper concerns that South Africa would embark…

Jun

14

2024

By ELIAS BIRYABAREMA

Uganda to curb commercial borrowing to limit debt build-up

BUSINESS

UGANDA hopes to limit rising debt by focusing on concessional borrowing and curbing commercial loans next fiscal year, its finance minister said, after a credit rating downgrade last month. The East African country's public debt has been mounting as the government of President Yoweri Museveni splurges on big infrastructure projects, prompting warnings from its central bank. In May, Moody's lowered Uganda's sovereign rating, citing increasingly constrained financing options. Finance Minister Matia Kasaija said in a budget speech that total public debt stood at $24.7 billion at the end of last year and was seen rising to $25.7 billion by the…

Jun

13

2024

By The African Mirror

Red Sea ships attacks push 47% more crude oil, fuels around Africa

BUSINESS

GLOBAL crude oil and oil products shipments taking the long route between Asia, the Middle East and the West are up 47% since attacks began on vessels using the shorter Red Sea route, the Energy Information Administration said. The longer route around the Cape of Good Hope to avoid attacks by Yemen's Houthis has pushed up shipping costs, as about 12% of world total shipping traffic historically sailed through the Red Sea and Egypt's Suez Canal. About 8.7 million barrels per day (bpd) of crude and refined products took the Southern Africa route in the first five months of 2024, from an…

Jun

13

2024

By SETH ONYANGO, BIRD STORY AGENCY

African startups rake in $187m in surprise May funding surge

BUSINESS

AFRICAN startups hauled in an impressive US$187 million in a May surprise funding surge, marking a significant rebound from previous lacklustre months. It represents a remarkable 149% jump compared to the $75 million raised in April, according to new figures from data insight firm, Africa: The Big Deal. May's funding boost saw 64 ventures receiving at least $100k, a substantial increase compared to the monthly average of 38 ventures between January and April. Tellingly, 17 of these ventures raised at least US$1 million. However, the overall figure was somewhat inflated by the announcement of 40 grants of around US$100k, including…

Jun

13

2024

By SETH ONYANGO, BIRD STORY AGENCY

Kenya seeks M-Pesa-type success with revamped payment systems regime

BUSINESS

KENYA is set to open its fintech market to M-pesa challengers, with the Central Bank's (CBK) recent push for a new licensing regime to stimulate growth and innovation. This move is expected to diversify the financial services available to Kenyan consumers and businesses while allowing a wider range of fintech firms to compete. Among those vying for these new licenses are Nigerian fintech powerhouses Flutterwave and Chipper Cash, alongside a host of other ambitious applicants. A new push to further liberalise Kenya's mainstream digital payments market that gave M-pesa an edge comes just six months after Flutterwave was let off…

Jun

12

2024

By BONFACE ORUCHO, BIRD STORY AGENCY

African ports are tops at reducing vessel delays – report

BUSINESS

AFRICAN ports are making the most progress in reducing vessel waiting times, contrasting sharply with trends in other regions, according to a new report. The report, which assessed over 182,000 vessel calls, 238.2 million moves, and 381 million TEUs in 2023, underscores the success of targeted infrastructure upgrades and strategic policy interventions in enhancing the efficiency of Africa's ports. ‘Container Port Performance Index (CPPI)’ was released on June 4, 2024, by the World Bank and S&P Global Market Intelligence and it shows that African ports have slashed port arrival times by an impressive 2.0 hours for all vessel sizes. “The…