BUSINESS - The African Mirror

Jan

31

2023

Nigeria’s bonds tumble after Moody’s rating downgrade

BUSINESS

RACHEL SAVAGE and MARC JONES NIGERIA'S government bonds fell heavily after rating agency Moody's downgraded the West African oil producer late on Friday to Caa1 from B3, saying the government's fiscal and debt position was expected to keep deteriorating. Longer-dated bonds were down the most, with the dollar-denominated 2051 Eurobond falling more than 2.8 cents in the dollar to 68.758 cents according to Tradeweb data. Only the Eurobond maturing this year fell less than 1 cent. "That is a significant move because there will be a lot of forced selling," Viktor Szabo, emerging market portfolio manager at Abrdn, told Reuters.…

Jan

31

2023

By The African Mirror

Discount retailer Pepkor first quarter sales up 6.5% on store expansion

BUSINESS

PEPKOR Holdings, the owner of South African clothing brands PEP and Ackermans, reported a 6.5% rise in first-quarter revenue, helped by 132 new stores that it opened in the period and the acquisition of Brazilian retailer Avenida. But its like-for-like sales were hit by power cuts. Retailers in South Africa have been hit not only by inflationary pressure on consumers but also by rolling power cuts forcing retailers to pay more for backup power supply. "The impact of load shedding (power cuts) was more pronounced in the rural and deeper outlying areas where the group's retail footprint has higher representation,"…

Jan

29

2023

By The African Mirror

IMF sees Rwanda growth at 6.2% in 2023, 7.5% in 2024

BUSINESS

THE International Monetary Fund projects that Rwanda's economy will grow by 6.2% this year, accelerating to 7.5% next year, Managing Director Kristalina Georgieva said during a visit to Kigali on Thursday. "We are projecting Rwanda to grow by 6.2% in 2023 and for the growth to accelerate in 2024 to 7.5%. We need to recognise that Rwanda like the rest of the world has been affected by COVID-19 and war in Ukraine that has taken away 1.7% from our pre-COVID projections," she told reporters. Thomson Reuters Foundation

Jan

29

2023

By The African Mirror

$77-millin tax dispute: SA calls on MTN, Ghana to resolve

BUSINESS

SOUTH Africa's foreign minister Naledi Pandor called on mobile operator MTN Group and the Ghana Revenue Authority to find a solution to a $773 million tax dispute. Earlier this month MTN said the Ghana Revenue Authority issued the company's subsidiary MTN Ghana with a bill for back taxes after auditing it for the years 2014 to 2018 and inferring that it had under-declared its revenue by about 30% during the period. MTN, which has a presence in 19 countries in Africa and the Middle East, said at the time that it disputed the "accuracy and basis" of the assessment and that it would fight…

Jan

25

2023

By The African Mirror

Egypt’s Sisi heads to India amid investment push

BUSINESS

EGYPTIAN President Abdel Fattah al-Sisi begins a visit to India where he will meet business leaders and be a guest of honour at India's January 26 Republic Day. The trip will include discussions on strengthening economic relations between the two countries and reviewing opportunities for Indian investment in Egypt, a statement from the Egyptian presidency said. Egypt is trying to drum up foreign investment as it tries to manage a dollar shortage that has led to a sharp depreciation of the Egyptian pound. Last year it sought help from energy-rich Gulf allies and the International Monetary Fund after the economic…

Jan

21

2023

By The African Mirror

Ethiopia appoints Mamo Mihretu new central bank governor

BUSINESS

ETHIOPIA'S Prime Minister Abiy Ahmed has appointed Mamo Mihretu as the country's new central bank governor, Abiy's office said in a statement posted on Twitter. The statement did not give any more details. Mamo has worked as chief executive officer of state-run Ethiopia Investment Holdings and a senior policy advisor to Abiy. He is replacing Yinager Dessie, who served as central bank governor since 2018. Thomson Reuters Foundation

Jan

20

2023

By The African Mirror

South Africa’s SPAR admits to irregular loan allegations

BUSINESS

SOUTH Africa's SPAR Group said it agreed with its auditors that a reportable irregularity concerning an alleged fictitious and fraudulent loan had occurred at the grocery retailer. Local online newspapers Business Day, News24 and news magazine Financial Mail have been reporting various allegations of fraudulent and fictitious loans and racial bias brought by independent retailers who use the SPAR brand. In December SPAR denied that the financial allegations were symptomatic of "dodgy" accounting or that it discriminated against some of its retailers based on race or store location. "Over the past month, SPAR and the external auditors have conducted investigations into…

Jan

19

2023

By The African Mirror

South Africa inflation dips to 7.2% y/y in December as forecast

BUSINESS

SOUTH Africa's headline consumer inflation slowed to 7.2% year on year in December from 7.4% in November, in line with analysts' forecasts, statistics agency data showed. Price pressures have been gradually easing in Africa's most industrialised economy after inflation struck a 13-year high of 7.8% year on year in July. The South African Reserve Bank has raised interest rates to fight inflation at its last seven monetary policy meetings since its latest tightening cycle began in November 2021. The central bank, whose next rate-setting decision is due on Jan. 26, targets inflation of between 3% and 6%. On a month-on-month basis,…

Jan

16

2023

By The African Mirror

MTN Ghana hit with bill of $773 million for back taxes

BUSINESS

THE Ghanaian subsidy of South African mobile operator MTN Group has received a bill for back taxes of around $773 million, including penalties and interest charges, the parent company said. The Ghana Revenue Authority issued MTN Ghana with the bill after auditing it for the years 2014 to 2018 and inferring that the company under-declared its revenue by about 30% during the period, MTN said in a statement. The carrier, which has a presence in 19 countries in Africa and the Middle East, said it disputes the "accuracy and basis" of the assessment and that it would fight it. "MTN Ghana believes…

Jan

14

2023

By The African Mirror

Kenya’s Centum calls off sale of Sidian Bank majority stake to Nigeria’s Access Bank

BUSINESS

KENYA'S Centum Investment Co. Plc said it had ended a pact with Nigeria's Access Bank to sell its 83.4% shareholding in Kenya's Sidian Bank, as the timeframe for completion of the transaction had lapsed. In June, Centum announced plans to sell the stake to Access Bank, a subsidiary of Access Holdings, subject to regulatory approval in Kenya and Nigeria. Centum said in a statement late on Thursday that the planned sale was to be guided by conditions set out in the share purchase (SPA) agreement that was meant to be met by a certain date, known as the 'Long Stop Date'.…