BUSINESS - The African Mirror

Sep

01

2020

Kenya central bank to rule on 2020 dividend issuance by banks

BUSINESS

KENYA'S central bank will have to approve any plans by commercial lenders to issue dividends for this year it said in a memo to bank executives, an unusual move caused by the coronavirus crisis. Lenders in the East African nation have seen their earnings plunge in the first half of this year, hit by higher provisions for bad loans, on the back of the COVID-19 pandemic. They have also had to restructure more than a quarter of total customer loans, to provide relief to individuals and firms hit by the disruptions. All lenders are required to resubmit their internal capital…

Sep

01

2020

By The African Mirror

South African state arms firm at risk of bankruptcy protection, govt says

BUSINESS

SOUTH African state arms firm Denel faces the risk of being placed under a local form of bankruptcy protection called business rescue or even liquidation, the National Treasury said on Tuesday. Denel, which makes military equipment for South Africa’s armed forces and clients around the world, has struggled to pay salaries this year amid a liquidity crisis aggravated by the coronavirus crisis. National Treasury said in a presentation to parliament that Denel was forecast to have had a negative equity position of 3.3 billion rand ($196.7 million) as of March 2020. - Thomson Reuters Foundartion.

Sep

02

2020

By The African Mirror

South Africa’s Absa PMI expands on easing lockdown

BUSINESS

South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) expanded in August as an easing of the coronavirus restrictions lifted business activity and sales. The index, which gauges manufacturing activity in Africa’s most industrialised economy, rose to 57.3 points in August from 51.2 points in July, staying above the 50-point mark that separates expansion from contraction. “The improvement in demand was not only due to South Africa moving to a lower lockdown level, but was also supported by an uptick in export orders,” Absa said in a statement. South Africa imposed a strict coronavirus lockdown in late March but has since…

Sep

03

2020

By The African Mirror

Nigeria central bank sells $50 mln to gauge foreign FX demand -traders

BUSINESS

CHIJIOKE OHUOCHA NIGERIA'S central bank has sold around $50 million to foreign investors on the spot and forward markets, in what the bank called a test trade to gauge the level of dollar demand on the currency market, traders said on Wednesday. Nigeria’s central bank has sold around $50 million to foreign investors on the spot and forward markets, in what the bank called a test trade to gauge the level of dollar demand on the currency market, traders said on Wednesday. The central bank has gradually restarted dollar sales after it halted supplies following a coronavirus-induced lockdown to slow…

Sep

30

2020

By The African Mirror

Senegal on verge of unprecedented growth from oil, gas, president says

BUSINESS

SENEGAL is expected to achieve unprecedented economic growth of 13.7% in 2023, thanks to the development of new oil and gas fields, according to President Macky Sall. Oil was discovered in Senegal in 1961, but reserves big enough for commercial exploitation have been found only in recent years. President Macky Sall Now, offshore oil and gas fields run by such companies as BP and Kosmos Energy can transform the West African country's agricultural economy when they start producing this decade. Volumes expected to rival some of the region's biggest producers. "In 2023, if all conditions are met, for the first…

Sep

30

2020

By The African Mirror

EXCLUSIVE-S.Africa’s COVID-hit carmakers ask govt to cut taxes on new cars

BUSINESS

EMMA RUMNEY SOUTH Africa's carmakers have asked the government to reduce taxes on new vehicle purchases as part of a proposed stimulus package for the coronavirus-hit sector, according to a presentation from an industry body seen by Reuters. The proposal, aimed at boosting local sales of new cars as rising coronavirus cases threaten demand in key export markets, was presented to the government on Monday by the National Association of Automobile Manufacturers of South Africa (NAAMSA), its chief executive Mike Mabasa said. NAAMSA represents global car giants like Nissan and Toyota which produce vehicles in South Africa, with around 64%…

Sep

29

2020

By The African Mirror

Ghana Central Bank holds rates, eyes recovery from pandemic slump

BUSINESS

GHANA’S central bank has kept its interest rate unchanged at 14.5% as it eyes recovery from a pandemic-induced economic slump, its governor Ernest Addison has announced. Ghana has had one of Sub-Saharan Africa's fastest-growing economies in the past few years, but a slowdown because of the new coronavirus is expected to cap growth at between 2-2.5% this year, down from 6.5% in 2019. Addison said there were nevertheless signs that things are picking up and that inflation should return to the bank's medium-term target of around 8% by the second quarter of 2021. "Leading indicators of economic activity point to…

Sep

28

2020

By The African Mirror

Nigeria’s main unions suspend planned strike after government talks

BUSINESS

ANGELA UKOMADU NIGERIAN labour unions have agreed with the government to suspend a planned strike over fuel and power price rises hours before businesses were due to grind to a halt, the labour minister and trade unions said. The Nigerian Labour Congress (NLC), which represents millions of workers across most sectors of Africa's biggest economy, including parts of the oil industry, last week announced its plans to embark on a general strike. Nigeria cut costly subsidies in September to allow the petrol price to be determined by the market and increased the power tariff. President Muhammadu Buhari had said Nigeria…

Sep

26

2020

By The African Mirror

Nigerian air travel could shut as unions pledge to join strike

BUSINESS

CAMILLUS EBOH NIGERIA’S airports could shut down on Monday as four key unions said they would join an indefinite nationwide strike to protest an increase in power and petrol prices. A statement issued by four unions representing pilots, engineers and other aviation professionals said they are "in full support" of a strike called by the Nigerian Labour Congress, which represents millions of workers across most sectors of Africa's biggest economy. "All workers in the aviation sector are hereby directed to withdraw their services at all aerodromes nationwide as from 00hrs of 28th September," the unions said in a statement seen…

Sep

25

2020

By The African Mirror

Nigeria’s main unions to strike over petrol, power price hikes

BUSINESS

NIGERIA’S main labour unions will begin an indefinite strike on Monday to protest an increase in power and petrol prices, the leader of the body said, after a meeting with the government two weeks ago ended in a deadlock. The Nigerian Labour Congress, which represents millions of workers across most sectors of Africa's biggest economy, including parts of the oil industry, plans to embark on a general strike starting next week, leader Ayuba Wabba said. A reversal of the petrol and power price hikes would avert the strike, Wabba said in a statement. The government has not yet responded to…