Building Africa Today

A Bientôt

2011-11-11T10:42:00.002+01:00

Chers lecteurs,

Voilà maintenant deux ans que nous partageons avec vous idées, informations et données économiques sur le développement du continent africain.

A travers ce blog, nous avons partagé avec vous une analyse exclusive des marchés financiers et des matières premières en Afrique, des études économiques ou des informations dont nous vous avons réservé la primeur.

Nous espérons vous avoir montré que l’Afrique bougeait et que ses promesses d’avenir sont énormes.

Nous vous invitons aujourd’hui à nous suivre sous une autre forme, plus institutionnelle, peut-être plus dense, certainement plus enrichissante.

Notre blog s’arrête, mais nos informations se poursuivent sur le site officiel de la Banque africaine de développement, www.afdb.org, que nous vous invitons à rejoindre dès aujourd’hui. Vous pourrez y suivre nos informations sur l’Afrique à travers ses nombreux outils : navigation en ligne, alertes, flux RSS, page Facebook ou encore Twitter. A vous de le découvrir !

Nous vous remercions de votre fidélité et de votre intérêt pour l’Afrique, un continent d’avenir.

See You Soon

2011-11-11T10:41:00.003+01:00

Dear Readers,

For two years now, we’ve been sharing our ideas, information and economic data about development on the African continent.

Through our blog, we’ve shared exclusive analysis of the financial markets and raw materials in Africa, along with economic studies or information that we have reserved just for you.

We hope that we have shown you that Africa is moving forward and that its future is very bright.

We would now like to invite you to follow us on another, more institutional, perhaps denser but certainly richer, site.

We are going to stop publishing this blog but you will be able to follow all our news on the official site of the African Development Bank at www.afdb.org. Come and see us there to continue to get information about Africa through many different tools: online navigation, alerts, RSS feed, Facebook page or Twitter. It’s all there for you to explore!

Thank you for your loyalty and your interest in Africa, the continent of the future.

D'intéressantes publications économiques et statistiques désormais disponibles en livre électronique

2011-07-11T14:25:00.002+01:00

Le Groupe de la Banque africaine de développement, la "première banque du savoir sur l'Afrique", vient de rendre disponibles en format livre électronique une série de publications économiques et statistiques, consacrant son rôle comme acteur principal du changement pour le développement socio-économique du continent.

Les publications disponibles au format livre économique sont les suivantes:

Annuaire statistique pour l'Afrique 2011

L'Annuaire statistique pour l'Afrique 2011 présente dans sa troisième édition des séries temporelles montrant dans quelles mesures les pays africains ont progressé dans divers domaines socioéconomiques au cours de la période 2002 à 2010. Un effort continu a été fourni pour utiliser dans la mesure du possible les sources de données provenant des systèmes statistiques nationaux et validées à travers une procédure rigoureuse.

L’annuaire statistique pour l’Afrique 2011 a été élaboré sous l’égide du Comité africain de coordination de la statistique adopté par les principales organisations du continent en charge du développement de la statistique, à savoir, la Banque africaine de développement (BAD), la Fondation africaine de renforcement des capacités (ACBF), la Commission de l’Union africaine (CUA), et la Commission économique pour l’Afrique des Nations Unies (UNECA) dans le cadre de la mise en œuvre du Cadre stratégique régional de référence pour le renforcement des capacités statistiques en Afrique (CSRR).

Compendium de statistiques

Le Compendium de statistiques sur les opérations du Groupe de la BAD 2011, publication annuelle du Groupe de la Banque africaine de développement, présente des données sur les opérations du groupe de la banque. La Partie 1 contient des statistiques agrégées sur les opérations de la banque et la Partie 2 présente des données en séries chronologiques sur les pays membres régionaux de la banque.

Indicateurs sur le genre, la pauvreté et l'environnement

Le neuvième volume des Indicateurs 2011 sur le genre, la pauvreté et l'environnement dans les pays africains, publiés par le département des Statistiques du Groupe de la Banque africaine de développement, fournit des informations de façon générale sur les tendances de développement touchant aux problématiques sur le genre, la pauvreté et l’environnement dans les 53 pays africains.

Le livre de poche des statistiques de la BAD 2011

Le livre de poche des statistiques de la BAD 2011 présente des sommaires des données économiques et sociales sur les pays membres régionaux et sur les opérations du Groupe de la BAD. La plupart des indicateurs cités sont extraits des publications de la Banque intitulées Compendium de statistiques sur les opérations du Groupe de la BAD, Indicateurs sur le genre, la pauvreté et l’environnement dans les pays africains et Statistiques choisies sur les pays africains qui contiennent des informations plus détaillées.

Journal statistique africain, volume 12, mai 2011

Le 12e volume du Journal statistique africain contient quatre articles très pointus. Le premier présente les résultas de "l'Enquête permanente emploi auprès des ménages au Mali", réalisée en 2007. L'article examine les relations entre genre, emploi et revenus au Mali. En comparant l'emploi et le revenu des hommes et des femmes, l'étude révèle l'inégalité des sexes dans la population active du Mali et des gains d'emploi. Elle explique aussi comment cela affecte les progrès du Mali vers l'atteinte des OMD, en particulier, l'OMD 3 sur l'égalité des sexes et l'autonomisation des femmes. L'article démontre l'importance de considérer tout corrélat dans l'analyse afin de comprendre pleinement l'inégalité des sexes dans l'emploi.

Le deuxième article se concentre sur les défis auxquels les pays africains ont été confrontés dans le suivi des progrès vers les OMD. Il examine le besoin d'informations statistiques à l'appui du processus et propose des mesures susceptibles d'améliorer la situation. Il aborde également les possibilités offertes par la série actuelle d'indicateurs des OMD dans le suivi du développement des pays africains au-delà de l'échéance de 2015.

Le troisième article souligne la menace du changement climatique pour le développement durable en Afrique. Il examine comment les vulnérabilités sont comprises par les chercheurs en changement climatique, et comment, à partir de ces perspectives, les gouvernements africains et les partenaires au développement peuvent soutenir les communautés les plus à risque. L'étude note le besoin croissant de données que les décideurs politiques, les militants et autres intervenants peuvent utiliser pour atténuer l'impact du changement climatique. Il souligne la nécessité d'utiliser des données déjà disponibles dans les systèmes statistiques nationaux, plutôt que de recueillir de nouvelles données.

Le quatrième article se concentre sur les problèmes qui surgissent lors de l'utilisation de méthodes d'analyse de survie pour calculer «l'âge du premier rapport sexuel» en se fondant uniquement sur des informations remémorées des enquêtes ménages. Avec les données de l'Enquête sur la population et la santé réalisée en Ouganda, l'article démontre que cette méthode donnerait des résultats trompeurs, surtout s'il y a beaucoup de renseignements erronés sur l’âge auquel le premier rapport sexuel a eu lieu, et si un grand nombre de personnes interrogées n’avaient pas eu leurs premières relations sexuelles au moment de la collecte des données. L'étude propose une méthode alternative basée uniquement sur l'âge et le statut de la virginité au moment de l'enquête.

Depuis novembre 2005, la Banque africaine de développement publie semestriellement le Journal statistique africain qui vise à favoriser une meilleure communication et un contact plus efficace entre les analystes, les décideurs et les producteurs de données en Afrique. Le journal est aussi un outil de recherche et de partage d’informations entre enseignants et experts statisticiens principalement en Afrique. Il a pour but de promouvoir la compréhension du développement de la statistique dans la région de l’Afrique.

The African Development Bank has confirmed its leadership in infrastructure

2011-07-11T10:46:00.000+01:00

With more than 70 percent of its total approvals targeting the infrastructure sector in 2010, the African Development Bank has confirmed its leadership in this area.

Approvals in 2010 for infrastructure projects amounted to some USD 4 billion, representing the largest sectoral allocation. Transportation attracted the most funding (47.6 percent), followed by energy supply (34.1 percent), water supply and sanitation (17.1 percent) and communication (1.2 percent).

These figures continued to reflect the institution’s alignment to its Medium- Term Strategy (2008–2012), which positions the infrastructure sector as a core operational area. This support has specifically focused on large, transboundary infrastructure projects and programs that promote regional integration.

In the energy sector, the AfDB serves as a lead financier for energy-related investments in Africa. It approved with global funding totaling more than USD 1.3 billion for 14 new operations in the energy sector during the year. Of these projects, 11 were public sector operations, for a total commitment of more than USD 1.1 billion.

In the transport sector, to ensure that infrastructure projects do not exceed initial costs (a recurring concern), the AfDB has begun to review the practice of project procurement and implementation in its member countries, to reduce exposure to volatile international construction costs. It has also strengthened its efforts to partner with other donors and provide supplementary loans.
Moreover, the Bank started aligning its transportation infrastructure portfolio with the objectives of its Agriculture Sector Strategy (2010–2014), which was approved in 2010. Eight road projects approved during the year seek to reduce transportation costs, thus lowering the costs of agricultural inputs, improving accessibility to markets, and increasing farm gate prices of products.

As regards water and sanitation, the Bank continued to place a high priority on supporting the sector in the context of increasing water scarcity exacerbated by climate change, environmental degradation, rapid population growth, and urbanization. The agricultural sector’s productive capacity and its ability to feed the continent’s population relies on an adequate water supply. Moreover the resilience of this sector directly impacts Africa’s progress toward, Millenium

Development Goals, such as those relating to GDP growth, poverty, health (including child mortality and maternal health), education, and gender.

The AfDB’s interventions in this area focus on water resource sustainable development and management across the continent. By year-end 2010, the AfDB was financing 69 ongoing water and sanitation operations in 32 African countries, totaling about USD 2.7 billion. Total approvals of loans, grants, and special funds for all water and sanitation operations in 2010 amounted to USD 700 million. The interventions cover drinking water supply, water resources management, sanitation and hygiene, capacity building, and policy reform programs.

The main innovation is the enhanced water supply and sanitation engagement in Fragile States.

The AfDB has intensified its engagement in fragile states and is undertaking a study to develop guidelines and tools for improved delivery of water supply and sanitation systems in these most vulnerable countries.

Finally, two ICT projects were approved during the year totaling some USD 50 million: the Satelite O3B multinational project, which consists of the construction and operation of a constellation of eight middle earth orbit satellites over Africa, and a feasibility study for a Technology Park in Praia Cape Verde, for enhancing the business climate through improvement of the ICT infrastructure in the country.

AfDB Annual Report

Flagship economic and statistical publications on Africa now available in e-reader format

2011-07-08T09:43:00.001+01:00

The African Development Bank Group, the ‘Premier Knowledge Bank for Africa’, has made available in e-reader formart a series of economic and statistical publications, cementing its role as a leading change agent for sustainable socio-economic development on the continent.

The publications available in e-reader format are the following:

The African Statistical Yearbook 2011

The African Statistical Yearbook 2011 presents in its third edition time series showing how African Countries performed on several economic and social thematic areas over the 2002 to 2010 period. Efforts have been made to privilege the use of data sourced from countries national sources, validated through a rigorous process.

The 2011 African Statistical Yearbook was prepared under the overall umbrella of the African Statistical Coordination Committee set up by major continental organizations dealing with statistical development namely the African Development Bank (AfDB), the African Capacity Building Foundation (ACBF), the African Union Commission (AUC), and the United Nations Economic Commission for Africa (UNECA) in the framework of the implementation of the Reference regional Strategic Framework for Statistical Capacity Building in Africa (RRSF).

Compendium of Statistics

The Compendium of Statistics on AfDB Group Operations 2011 is an annual publication of the African Development Bank Group, presenting data on operational activities of the Bank Group. Part One gives cross-country statistics on Bank operations and Part Two provides country-specific information on each regional member country of the Bank.

Gender, Poverty and Environmental Indicators

The ninth volume of Gender, Poverty and Environmental Indicators on African Countries 2011, published by the Statistics Department of the African Development Bank Group, provides useful information on the broad development trends relating to gender, poverty and environmental issues in the 53 African countries.

AfDB Statistics Pocketbook 2011

The AfDB Statistics Pocketbook 2011 presents summary economic and social data on regional member countries and on the operational activities of the African Development Bank Group. Most of the indicators shown are selected from the other AfDB publications: Compendium of Statistics on Bank Group Operations; Gender, Poverty and Environmental Indicators on African Countries and Selected Statistics on African Countries which contain more detailed information.

African Statistical Journal, Volume 12, May 2011

The volume 12 of the African Statistical Journal contains four highly topical articles. The first presents results from the 'Mali Enquête permanente emploi auprès des ménages', conducted in 2007. The article examines relationships between gender, and employment and income in Mali. By comparing the employment and income of men and women, the study reveals gender inequality in the Malian labor force and employment earnings. It also explains how this affects Mali’s progress toward achieving the MDGs, specifically, MDG 3 on gender equality and women’s empowerment. The article demonstrates the importance of considering any correlates in the analysis in order to fully understand gender inequality in employment.

The second article focuses on the challenges African countries have faced in monitoring and reporting on progress toward the MDGs. It examines the need for statistical information to support the process and suggests potential measures to improve the situation. It also discusses opportunities offered by the current set of MDG indicators in monitoring development in African countries beyond the 2015 deadline.

The third article underscores the threat of climate change to sustainable development in Africa. It examines how vulnerabilities are understood by climate change researchers, and how, based on these perspectives, African governments and development partners can support communities most at risk. The study notes the increased need for data that policy-makers, advocates and other stakeholders can use to mitigate the impact of climate change. It emphasizes the need to use of data already available to National Statistical Systems, rather than collect new data.

The fourth article focuses on the problems that arise when using survival analysis methods to calculate the “age at first sex” based only on recalled information from a household survey. With data from the Uganda Demographic and Health Survey, the study demonstrates that this method would yield misleading results, particularly when age at the time of the survey is used as the censoring time, misreporting of age at first sex is substantial, and a considerable number of respondents had not had sexual relations at the time of data collection. The study proposes an alternative method based only on age and virginity status at the time of the survey.

Since November 2005, the African Development Bank publishes bi-annually The African Statistical Journal which is intended to foster improved communication and contact among analysts, policy makers and data producers in Africa. It is established also to serve as a research outlet and information sharing publication among academic and practicing statisticians mainly in Africa. The Journal aims to promote the understanding of statistical development in the African region.

Climate Change: Africa is Leading With its Own Plan, Says AfDB

2011-07-04T17:46:00.000+01:00

“Africans are leading with their own plans for climate change, and they have called for additional financing instruments that respond directly to their priorities,” African Development Bank (AfDB) Vice President, Bobby Pittman, said at the 2011 Climate Investment Funds Partnership Forum. The AfDB is hosting the event from 24-25 June 2011, in Cape Town, South Africa.

Addressing 250 participants at the opening session, the Vice President added: “Looking ahead, it is becoming clear that future climate financing could benefit from instruments that are open to all countries and can be adjusted to respond to country priorities and implementation capacity; and a clear allocation of resources per implementing agency, which can be revised based on the pace of execution of projects and programs.”

Given that nearly 600 million people in Africa remain without access to modern energy, broadening the supply of low-cost environmentally-friendly energy to more people and developing renewable forms of energy to diversify the sources for generating electric power are major Bank priorities. About USD 1 billion is invested in renewable energy in Africa yearly, according to the International Energy Agency. Over the next three years, the AfDB intends to invest more than USD 3.5 billion in improving energy access, with more than a third of the amount going to renewable energy.

The African Development Bank is responding to climate change with a clear focus on the areas that are most critical for Africa and on expanding Africa’s access to international climate change financing, both through global mechanisms like the Climate Investment Funds and dedicated internal mechanisms design to meet specific African challenges.

“Despite all of these efforts, the bottom line is that there is an urgent need to improve access to climate finance at the scale required for transformational impact in Africa and put in place mechanisms that can best respond to Africa’s needs,” Vice President Pittman concluded.

Read the statement

Changement climatique: « L’Afrique exerce son leadership avec ses propres programmes », déclare la BAD

2011-07-04T17:30:00.013+01:00

« Les Africains exercent leur leadership avec leurs propres programmes pour l’atténuation des effets du changement climatique. Ils ont lancé un appel pour des instruments de financement complémentaires, pour répondre efficacement à leurs priorités », a déclaré le vice-président Bobby Pittman, au Forum du partenariat sur le Fonds d’investissement pour le changement climatique. Le Groupe de la Banque abrite le forum à Cape Town, en Afrique du Sud, du 24 au 25 juin 2011.

S’adressant à 250 participants à l’ouverture, le vice-président a ajouté : «Il est désormais clair que les financements à venir en faveur du climat pourraient, à terme profiter des instruments à la disposition de tous les pays. Il pourrait être ajusté en fonction des priorités des pays et à leur capacité de mise en œuvre ; ces financements pourraient aussi profiter d’une allocation claire des ressources par agence de mise en œuvre, révisable en fonction de l’avancement des projets et programmes ».

Environ 600 millions de personnes en Afrique n’ont toujours pas accès à l’énergie moderne.

Etendre l’accès à l’énergie propre à coût réduit ainsi que le développement des formes d’énergies renouvelables, pour diversifier les sources, constituent des priorités majeures pour la Banque. En Afrique, chaque année, environ un milliard de dollars est investi dans l’énergie renouvelable, selon l’agence internationale pour l’énergie. Pour améliorer l’accès à l’énergie, le Groupe de la BAD compte investir plus de 3,5 milliards de dollars dans les trois prochaines années, dont un tiers destiné à l’énergie renouvelable.

Le Groupe de la Banque apporte une réponse au changement climatique, en donnant la priorité aux enjeux les plus critiques pour l’Afrique. Elle vise notamment à faciliter l’accès au financement international pour atténuer les effets du changement climatique, à travers des mécanismes internationaux comme les Fonds d’investissement pour le changement climatique, et des mécanismes internes à l’Afrique, plus spécifiques.

« En dépit de tous ces efforts, il y a un besoin pressant d’améliorer l’accès au financement du changement climatique, pour qu’il ait véritablement un impact et de mettre en place des mécanismes plus efficaces pouvant mieux répondre aux besoins du continent », a conclu le vice-président Pittman.

Lire la déclaration de la BAD

Market Brief (13-17 June 2011)

2011-06-20T19:25:00.000+01:00

During the week under review, global stock market performance was mixed. US stocks closed higher on Friday, June 17, breaking a six-week long losing streak. An intensification of hopes for the resolution of the Greek debt crisis is attributed to the reversal of the trend. European markets performed well in spite of Greece’s economic woes, while Asian markets slumped further during the week under review on concerns that resolution to the European debt crisis is yet to emerge. China’s central bank raised reserve requirements following the rise in inflation. The slow pace of Japanese reconstruction contributed to the dismal performance of the Nikkei.

Similarly, African stock market performance was mixed. South African stocks fell by 1.6% to a three-month low after metal prices declined amid continuing uncertainties over Greek debt. Egypt’s EGX30 index rebounded to register a 0.7% gain over the period in spite of contractions in construction, oil, and telecommunications. These gains signify hopes that the ECB and Greece will resolve their differences over the weekend.

Read the brief

Market Brief (30 May - 3 June 2011)

2011-06-06T19:16:00.005+01:00

During the week ending June 3, 2011, global stock markets under review delivered mixed performance. Rising U.S. jobless claims heightened concerns over the global economic slowdown. The impacts were, however, partly offset by the agreement between the EU/IMF/ECB over a new rescue package for Greece. US, Japanese and European stock prices declined farther with the exception of Greece and Spain. Emerging market countries including Brazil, China, and India rebounded marginally.

African stock markets under review also ended the week on a mixed note. South African stock prices retreated, largely driven by the decline in mining sector shares, and volatile commodity prices. The BRVM Composite index of the West African Regional Stock Exchange in Côte d’Ivoire fared well as the host country is set to recover from the postelection crisis.

Read the Brief

Social and economic inclusion are all part of North Africa’s unfinished agenda, says a new AfDB report

2011-05-31T12:21:00.000+01:00

The African Development Bank (AfDB) Group has published an annual report for North Africa which highlights the importance of inclusive growth following recent changes in the region. Morocco, Egypt, Tunisia and Algeria are among the highest beneficiaries of AfDB operations.

The African Development Bank Group in North Africa 2011 annual report addresses pertinent underlying issues that drove a largely unexpected and unprecedented wave of political reform in North Africa—namely, very high youth unemployment, entrenched poverty levels, income distribution disparity within countries, and challenges related to voice, accountability and transparency. “These dimensions of social and economic inclusion are all part of North Africa’s unfinished agenda, the overriding theme of this year’s Annual Report for North Africa,” the reports says.

Beyond the key challenges facing North Africa, the report presents regional integration as a means to overcoming difficulties relating to competitiveness. It adds that “Regional integration offers North Africa an opportunity to achieve economies of scale, while strengthening its competitiveness through targeted physical and economic infrastructure development and reforms to facilitate cross-border trade, investments and financial flows, knowledge-sharing and migration.”

The report also looks at how new economic players such as Brazil, Russia, India and China—the BRIC economies—were providing renewed opportunities and potential for growth in the region. It notes that since the BRICs have emerged as an indisputable force in the global economy, their impact and involvement in Africa had also become important. Africa, it says, remains attractive because of its huge natural resources and fast-growing consumer market.

The annual report also looks at how the fast-evolving relationships between the BRIC countries and their North African partners had become a potential game-changer.

It also includes an overview of the Bank Group’s activities in North Africa’s, public sector, studies and strategy, which provide an insight on how the institution’s strategic partnership with the region was evolving.

Read the report

C'est dans l’intégration sociale et économique que réside le programme inachevé de l’Afrique du Nord, indique un nouveau rapport de la BAD

2011-05-31T12:17:00.001+01:00

La Banque africaine de développement (BAD) vient de publier un rapport sur l’Afrique du Nord qui met l’accent sur l’importance de mieux partager la croissance pour les populations de cette région après les récents événements qu’elle a connus. Le Maroc, l’Egypte, la Tunisie et l’Algérie sont historiquement les premiers bénéficiaires des services de la BAD.

Le rapport sur la Banque africaine de développement en Afrique du Nord 2011 aborde les enjeux qui ont conduit à des réformes politiques inattendues et sans précédent en Afrique du nord : le niveau inhabituellement élevé du chômage chez les jeunes, l’incompressible niveau de pauvreté et les disparités régionales ainsi que les progrès trop lents dans les domaines liés à la participation de la société civile, à l’obligation de rendre compte et à la transparence. « Ces éléments relatifs à l’intégration sociale et économique font partie du programme inachevé de l’Afrique du Nord, le thème principal de notre étude sur cette région » dit le rapport.

Au delà des principaux défis à relever, le rapport présente l’intégration régionale comme une réponse pour surmonter les difficultés relatives à la compétitivité. L'intégration régionale offre à l'Afrique du Nord l’occasion de réaliser des économies d'échelle, tout en renforçant sa compétitivité. Cette intégration repose sur le développement d'infrastructures physiques et économiques et les réformes pour faciliter les échanges transfrontaliers, les flux financiers et de populations.

En outre, le rapport examine aussi comment les acteurs économiques émergents comme le Brésil, la Russie, l'Inde et la Chine, encore appelés les économies BRIC, offrent de nouvelles perspectives de croissance en Afrique du Nord. Alors que les pays BRIC sont devenus une force incontestable dans l'économie mondiale, leurs interventions et leurs impacts en Afrique sont devenus tout aussi importants. L’Afrique du Nord s’est singularisée pour sa richesse en ressources naturelles et la croissance rapide de son marché de consommateurs. L’attrait des pays BRIC pour la région et les conséquences des nouveaux partenariats BRIC-Afrique du Nord sont également discutés dans le rapport annuel.

Après avoir présenté le contexte socio-économique de la région, le rapport se penche sur l'engagement de la Banque dans les pays de la région. L’analyse de la stratégie du Groupe de la Banque dans le secteur public et privé montre l’implication importante de la première institution africaine de financement du développement dans cette région stratégique du monde.

Lire le rapport

Le G8 donnera la priorité à l’Afrique dans le financement des projets d’infrastructure, notamment à travers les banques multilatérales de développement

2011-05-31T08:00:00.001+01:00

Dans un communiqué à la fin du Sommet du G8, tenu à Deauville les 26 et 27 mai 2011, intitulé : «Déclaration conjointe G8/Afrique : des valeurs communes et des responsabilités partagées», les pays du G8 se sont engagés à donner « la priorité à l'Afrique dans le cadre du financement des projets d'infrastructures ».

« Compte tenu du défi particulier que doit relever le continent, nous appelons la communauté internationale, et notamment à travers les banques multilatérales de développement, à agir de manière concertée en donnant la priorité à l'Afrique dans le cadre du financement des projets d'infrastructures », ont-ils déclaré.

Dans leur déclaration, ils ont salué plusieurs des initiatives que la Banque africaine de développement gère ou dont elle est partie prenante telles que le Plan d’action Union africaine-NEPAD ou le Programme pour le développement de l’infrastructure en Afrique (PIDA).

Les leaders du G8 ont considéré l’énergie comme un élément clé pour garantir le développement économique en Afrique. « L'accès limité à l'énergie, que ce soit l'électricité ou les combustibles utilisés pour la cuisson, reste très préoccupant, a déploré le G8. Il s'agit d'un obstacle majeur au développement économique et à la lutte contre la pauvreté. Par ailleurs, l'utilisation courante de combustibles de cuisson traditionnels a un impact sanitaire et environnemental très négatif. » Les leaders du G8 ont ainsi rappelé « la nécessité d'assurer un accès à des services énergétiques durables, en mettant tout particulièrement l'accent sur les énergies renouvelables. Le G8 continuera à soutenir des projets d'accès à l'énergie, centralisés et décentralisés, en particulier les projets ayant une dimension régionale et axés sur le développement durable, ainsi que les initiatives en matière de commerce transfrontalier et de renforcement des capacités dans le domaine de l'énergie. »

Lire la déclaration

Market Brief (23-27 May 2011)

2011-05-30T19:11:00.000+01:00

During the week of May 23-27, the global stock markets under review, except for Spain and Brazil, continued the downward movements amid elevated concerns over Greek debt restructuring and weak US economic indicators. Greece was an underlying theme of the global financial market as (i) the EU remains divided over how to address Greece’s solvency, and (ii) the Greek government was unable to convince opposition parties to support new austerity measures. New home sale in the US dropped by 20.1% year-on-year in April while pending home sales plummeted by 26.5%.

The majority of African stock markets under review ended the week stronger. Egypt led the way buoyed by the pledges of financial support and investments from other countries. During the week, Qatar confirmed its interest in investing USD 10 billion in Egypt.

The stock index of Ghana declined amid a slowdown in trading activity.

Read the Market Brief

G8 to prioritise Africa in financing infrastructure projects, notably through Multilateral Development Banks

2011-05-27T18:52:00.000+01:00

In a statement at the end of the G8 Summit of Deauville from 26-27 May 2011, titled “G8/Africa Joint Declaration: Shared Values, Shared Responsibilities”, the G8 countries committed “to prioritise Africa in financing infrastructure projects.”

“Taking into consideration the specific challenge the continent is facing, we call for concerted action by the international community, and notably through the Multilateral Development Banks, to prioritise Africa in financing infrastructure projects,” they said.

In their statement, they commended many of the initiatives the African Development Bank is leading or actively taking part in like the African Union-NEPAD Action Plan and the Programme for Infrastructure Development in Africa (PIDA).

The G8 leaders considered energy as a key element to ensure economic development in Africa. “Limited access to energy along both dimensions -- electricity and cooking fuels -- remains a major concern. It is a key bottleneck for economic development and poverty reduction, and the widespread use of traditional cooking fuels is at the origin of severe negative health and environmental impacts,” they declared. “We therefore emphasize the need to ensure access to sustainable energy services, with a particular focus on renewable energy sources. The G8 will continue to support projects for access to energy, both decentralised and centralised, notably those with a regional dimension and a sustainable development perspective, as well as cross-border trade and capacity-building initiatives on energy.”

Read the full declaration

"Importante augmentation du financement des infrastructures en Afrique, avec des engagements progressant de 40%, atteignant 55 milliards USD en 2010", indique le Consortium pour les infrastructures en Afrique

2011-05-27T17:46:00.000+01:00

Se félicitant de la priorité accordée par les pays du G20 à l’accroissement de l’investissement dans les infrastructures dans les pays en développement, les membres du Consortium pour les infrastructures en Afrique (ICA) sont convenus, lors de leur réunion annuelle, d’élargir le cercle de leurs membres et d’inviter les pays du G20 à les rejoindre.

Durant une réunion de deux jours qui s’est tenue à Paris les 17 et 18 mai 2011, les délégués ont été informés par le secrétariat de l’ICA que les engagements financiers externes totaux pour des projets africains d’infrastructures ont augmenté de 40% en 2010 pour atteindre 55 milliards de $ US, avec une progression de 40% des investissements des seuls membres de l’ICA, alors que les investissements du secteur privé ont retrouvé les niveaux enregistrés avant la crise économique mondiale.

Les membres de l’ICA ont également réaffirmé leur engagement à soutenir les initiatives contrôlées et dirigées par les Africains pour gérer le développement des infrastructures à travers tout le continent. Ils se sont félicités de l’Initiative présidentielle des champions de l’infrastructure (PICI) lancée par le président sud-africain Zuma et de l’Architecture institutionnelle pour le développement des infrastructures en Afrique (IAIDA) promue par l’Union africaine, en tant qu’initiatives menées par des Etats membres et des organisations régionales en soutien au Programme pour le développement des infrastructures en Afrique (PIDA).

Commentant l’extension des engagements pour les investissements d’infrastructure en Afrique, Bobby J. Pittman, vice-président de la Banque africaine de Développement, a déclaré : « C’est une période passionnante pour le développement des infrastructures en Afrique. L’augmentation des engagements est extrêmement encourageante et montre l’impact positif que l’ICA a eu dans la mobilisation du financement. Mais qu’elle est la prochaine étape ? Il nous faut établir des liens entre les promoteurs de projets et les bailleurs de fonds potentiels. Il nous faut communiquer des idées et des propositions. Une piste pourrait être de développer un ‘marché virtuel’ où les promoteurs de projets et les investisseurs potentiels pourraient se rencontrer. »

Lire la suite

Market Brief (16-20 May 2011)

2011-05-22T18:54:00.002+01:00

During the week ending May 20, growing concerns over the Euro Zone debt crisis weakened global stock markets. A European Union finance ministers meeting approved an aid package for Portugal, while Greece was urged to meet deficit targets by taking more austerity measures. On Friday, Fitch downgraded Greek credit rating by three notches to B+. Both the US Dow Industrial Jones index and the Nikkei 225 index ended the week down 0.7% and 0.4%, respectively. Most European stock indices also declined with the Greek index suffering the largest loss of 4.3%. African stock markets delivered rather mixed performance during the week (Figure 1).

Equity Focus
Egypt: The Egyptian stock index recorded strong performance powered by news of $1 billion US debt relief and $4 billion Saudi aid package. The CASE 30 index ended the week with a gain of 4.9% with positive support coming from properties (+17.0%), building materials (+4.4%) and telecom (3.9%) sectors. During the week, the Stock Exchange released its plans to introduce exchange-traded funds in the local market and allow short-selling.

Morocco: The CASA All Share Index edged down by 1.5% over the week on declining stock prices of building materials and real estate sectors. Losses came for Maroc Leasing (-10.3%), CIMENTS (-3.1%) and Delta Holdings (-2.9%).

Read the Market Brief

"Substantial increase in financing for infrastructure development in Africa, with commitments rising by 40% to US$ 55 billion in 2010," says the Infrastructure Consortium for Africa

2011-05-20T11:23:00.003+01:00

Welcoming the priority given by G20 nations to increase investment in infrastructure in developing countries, members of the Infrastructure Consortium for Africa (ICA) agreed at their annual meeting to expand membership of their organisation and will invite G20 countries to join.

During a two-day meeting held in Paris from 17-18 May 2011, delegates were advised by the ICA Secretariat that total external financial commitments to African infrastructure projects rose by 40% to $55 billion in 2010, with investment by ICA members alone also going up by 40%, while investment by the private sector returned to levels last seen before the global economic crisis.

ICA members also reaffirmed their commitment to support African-owned and led initiatives to drive infrastructure development across the continent. They welcomed the Presidential Infrastructure Champions Initiative (PICI) led by President Zuma of South Africa and the Institutional Architecture for Infrastructure Development in Africa (IAIDA), promoted by the African Union, as initiatives that are led by member states and regional organisations in support of the Programme for Infrastructure Development in Africa (PIDA).

Commenting on the increase in commitments to infrastructure investment in Africa, Bobby J. Pittman, Vice President of the African Development Bank, said: “These are exciting times for infrastructure development in Africa. The increase in commitments is extremely encouraging, and shows the positive impact that the ICA has had in mobilising finance. But what next? We need to connect project sponsors to potential funders. We need to communicate ideas and proposals. One idea might be to develop a ‘virtual marketplace’ where project sponsors and potential investors could find one another.”

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"Africa is increasingly viewed as an opportunity rather than a burden," says the Financial Times

2011-05-20T10:59:00.000+01:00

"With many of its 48 economies rebounding from the crisis faster than the rest of the world, sub-Saharan Africa is increasingly viewed as an opportunity rather than a burden," says the Financial Times in a story titled "Africa: Ripe for reappraisal". In its print edition published on 19 May, the newspaper adds: "It is rising rapidly up the agenda for global investment managers and is talked about as never before in almost every big financial centre."

Quoting A.T. Kearney, the management consultancy, which found in a recent research that west African subsidiaries were achieving nearly twice the profit margins of their parent groups, the newspaper wrote: “The question for executives at consumer packaged goods companies is no longer whether their firms should enter the region, but where and how.”

"Other research amassing at investment banks and international financial institutions highlights the potential for Africa – or at least parts of it – to become a significant driver of global economic expansion in coming years," added the authors of the story, William Wallis, Andrew England and Katrina Manson.

Read the story

Africa’s middle class triples to more than 310m over past 30 years due to economic growth and rising job culture, reports AfDB

2011-05-20T10:35:00.000+01:00

The number of middle class Africans has tripled over the last 30 years to 313 million people, or more than 34% of the continent’s population, according to a new report from the African Development Bank (AfDB). The reasons for the increase in size and purchasing power of the African middle class include strong economic growth, and a move towards a stable, salaried job culture and away from traditional agricultural activities.

The report ‘The Middle of the Pyramid: Dynamics of the Middle Class in Africa’, however, warns that despite this phenomenon income inequality in Africa remains very high, and that the overall middle class figure includes large numbers of a ‘floating class’ whose hold on status is insecure.

Over the decades, the numbers have steadily risen from approximately 111 million or 26% of the population in 1980 to around 151.4 million (27%) in 1990. The 2010 figure, however, shows a significant surge of 60% from the 2000 figure of 196 million or 27.2% of total population.

The report defines middle class largely in terms of higher income relative to the average. That average is of course lower in Africa than in the west. The report notes: “the middle class is usually defined as individuals with annual income exceeding USD3,900 in purchasing power parity terms’.

However, the report acknowledges that other factors come into play when defining who is middle class, saying: ‘other variables such as education, professions, aspirations, and lifestyle are also important features that help establish who is in the middle class’.

Overall, it is economic growth that determines the rise of the middle class, but economic growth is in turn driven by social and economic factors. The report notes: ‘Africa’s middle class is strongest in countries that have a robust and growing private sector as many middle class individuals tend to be local entrepreneurs. In a number of African countries, a new middle class has emerged due to opportunities offered by the private sector’.

Other determining factors include the establishment of stable, secure, well-paid jobs, and higher levels of tertiary education.

Geographically, middle class levels vary a great deal across African countries. North Africa has the highest. Tunisia has the highest concentration at almost 90%, followed by Morocco at almost 85% and Egypt with almost 80%. But a significant number of these belong to the ‘floating’ category with a strong danger of falling into poverty due to economic shocks.

Other countries with high percentages of the middle class include Gabon, Botswana, Namibia, Ghana, Cape Verde, Kenya and South Africa. Countries at the bottom end include Mozambique, Madagascar, Malawi, Rwanda, Burundi and Liberia.

The report maintains the growth in the middle class is good news for the future prosperity of Africa, but also points out the continued high levels of income inequality on the continent. The continent has a extremely rich elite: ‘About 100,000 Africans had a net worth of USD800 billion in 2008, or about 60% of Africa’s GDP or 80% of sub-Saharan Africa’s’.

Read the report

« Genre dans l'emploi: Etude de cas du Mali » : les hommes ont moins de chances de trouver de l’emploi dans le secteur formel !

2011-05-16T10:34:00.000+01:00

Pour lutter contre « les inégalités entre les genres en matière d’emploi rémunéré, […] enracinées dans le marché malien du travail », il importe de mettre en place « un ciblage mesuré des politiques, si l’on veut réduire les inégalités entre les genres ou atteindre les Objectifs du Millénaire pour le développement », indique une nouvelle étude de la Banque africaine de développement.

Ce rapport, intitulé « Genre dans l'emploi: Etude de cas du Mali », est le deuxième volet d’une étude traitant du genre et de l’emploi en Afrique, après celui consacré à une étude de cas sur le Botswana.

« Contrairement aux idées reçues […], indique l’étude, les hommes ont moins de chances que les femmes de travailler dans le secteur industriel. » L’étude poursuit : « Ces constatations nouvelles ne deviennent manifestes qu’après la neutralisation des effets de l’ensemble complet des corrélats, ce qui signifie que la dynamique des inégalités entre les genres en matière d’emploi est multidimensionnelle. »

Pour obtenir des données pertinentes sur le comportement en matière d’emploi des femmes et des hommes, l’étude souligne ainsi l’importance de continuer à tenir compte du plus grand nombre possible de corrélats de l’emploi (facteurs intergénérationnels, organisation sociale/familiale du travail, attitude du mari, impact des régions urbaines autre que Bamako, attitudes et ambitions, initiative et la conscience civique…) dans la conception des enquêtes et l’analyse des données sur l’emploi.

Lire le rapport

A Tunis Consensus: Beyond “Aid” Effectiveness

2011-05-13T18:45:00.006+01:00

"With hard times and budget austerity dominating politics in the rich world, the aid community is moving from a longtime emphasis on the quantity to the quality of aid," says Nancy Birdsall, the Center for Global Development's founding president.

She adds, in a recent post to her blog, "I am applauding here, in a kind of blog post shout-out, the African Development Bank’s recent report prepared to outline an agenda for the High-Level Forum in Busan. Consider just the title and subtitle: The Tunis Consensus: Targeting Effective Development with the subtitle From Aid Effectiveness to Development Effectiveness."

“Aid is only one part of the solution to Africa’s development challenges”. That’s on the first page of the full report. (as we’ve been saying now via our Commitment to Development Index for almost ten years). Bravo AfDB!"

Read The Tunis Consensus

Market Brief (2-6 May 2011)

2011-05-09T18:19:00.003+01:00

For the week of 2-6 May 2011, major global stock markets declined as market participants worried that the global economic recovery is slow following the release of weaker US economic performances than expected. In addition, a news report of an emergency EU meeting, which might discuss a Greek exit from the Euro zone and a debt restructuring, led to a broad-based retreat from risky assets. The US Dow Jones Industrial index incurred a loss of 1.3% while S&P 500 and NASDAQ Composite posted losses of 1.7% and 1.6%, respectively. Most European shares also edged lower with the largest fall of Greek stock index by 4.5%.

During the reference period, African stock markets showed a mixed performance (Table 1). The stock market in Ghana registered the highest gain of 4.3% among ten reviewed ones. On the other hand, South Africa’s stock index recorded the largest loss of 2.9%.

Equity Focus
Ghana: Ghana’s All Share Index climbed by 4.3%, its highest weekly change so far in the year. The rise in the index was driven by positive 1Q 2011 earnings reports of major companies, including Ghana Oil Company. Ghanaian companies are seeking ways to benefit from the nascent energy industry. Ghana Oil Company, the nation’s second biggest operator of gas station, announced the plan, in March, to expand its fuel operation for shipping as the country begins to export crude oil. During the week, the company announced that its EPS (earnings per share) registered 10.7% year-onyear increase to GHS 0.012 (US $0.0082). The stock price of the company ended the week with 3.2% gain.

South Africa: Over the week, the resourceheavy domestic bourse was trading in negative territory as commodity prices plunged amid concern over slow global economic growth. For instance, Anglo American Plc, a diversified mining company that makes up 10 percent of the benchmark stock index, slipped 3.3%, reflecting a drop in copper prices.

Read the brief

Market Brief (25-29 April 2011)

2011-05-02T17:39:00.000+01:00

For the week ending April 29, major global stock markets advanced following Bernanke’s speech and higher corporate earnings than expected. The US stock market was firmer with the Dow and S&P reaching 2011 new highs. The Fed confirmed it would complete its USD 600 billion Treasury purchases (QE2 program) as planned. The Dow Jones Industrial index closed the week with a gain of 2.4% while S&P 500 and NASDAQ Composite posted gains of 2.0% and 1.9%, respectively. Most European shares also closed the week with gains supported by Bernanke’s speech and strong corporate earnings. Moreover, the Japanese stock market registered 1.7% gain on account of the yen’s easing against major currencies and upbeat corporate earnings reports.

Over the week, the majority of African stock markets incurred gains in line with the global market (Table 1). The stock market in Ghana registered the highest gain. Year-to-date, Ghana’s stock index was up by 10%, which makes it the best-performing African index among the reviewed ones. In contrast, Morocco’s stock index posted the largest weekly loss of 3.4%.

Equity Focus
Ghana: Ghana’s All Share index climbed 1.7% driven by gains in the financial sector, which includes Standard Chartered Bank (SCB) Ghana Ltd. and UT Bank Ltd (UTB). SCB Ghana Ltd. stock price increased by 15.4% as the bank announced a remarkable operation profit of 101 million cedis (USD 69.5 million) in 2010. The stock price of UTB increased by 7.4% the highest in nearly four weeks as its firstquarter profit soared more than seven times to 1.1 million cedis (USD 730,000).

Morocco: Over the week, the Casa All Share index tumbled by 3.4% following a bomb explosion in Marrakesh which created security concerns and possible implications for the tourism sector.

Read the Market Brief

Market Intelligence - Equities

2011-03-04T16:42:00.000+01:00

During the week of 17 – 21 January 2011, African stock markets showed mixed performance, while the bullish trend of major global markets weakened. The major global markets ended the trading week on a steady tone combined with positive and negative factors cancelling each other out. Better than expected earnings buoyed bullish market sentiment, while the concern about China’s tightening policy and the volatility of commodity prices dampened the markets. The stock markets in Ghana recorded the strongest gain of 16.1% over the previous weeks, followed by Nigeria and Uganda, registering gains of 1.5%. On the other hand, the stock market in Egypt recorded the largest loss of 6.4% during the week followed by that of Côte d'Ivoire with a 2.5% loss, while the markets in South Africa, Morocco and Kenya posted moderate losses of 1.6%, 1.1%, and 0.8%, respectively. Tunisia’ index remained unchanged over the week.

Equity Focus

Ghana: The Ghana stock market continued its rally, leaping by 16.1% over the week. The rise in equity prices reflected in part the prospects for strong economic growth estimated at 13.4% in 2011 and 10% in 2012. As oil production begins, Ghana is projected to be the fastest growing economy in sub-Saharan Africa and to become a lower-middle-income country. Outside the oil sector, Ghana’s economy is expected to also register strong growth, particularly in construction services, as large infrastructure projects are carried out. Ghana Investment Promotion Centre (GIPC) announced that the value of projects registered by the GIPC increased by 106.7% to GHS 1.79 billion in 2010 compared with GHS 867.98 million for 2009. The GIPC registered a total of 385 projects in 2010 compared to 257 projects registered in 2009. The GIPC assessed the success was on the back of vigorous investment promotional activities and services offered to existing and potential investors.

Egypt: The Egypt CASE 30 index fell significantly by 6.4% following the 0.6% loss during the previous week, mainly because of the negative regional sentiment arising from the political uncertainty in Tunisia. The drop in the index was largely driven by losses in the financial sector, which include CIB (Commercial International Bank), NSGB (National Societe Generale Bank) and EFG-Hermes.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2011-01-06T09:23:00.002+01:00

During the week of 27 – 31 December 2010, all major African stock markets except for the one of Tunisia closed the week with gains, decoupling from global markets which mostly edged lower. Year-end trading was thin as investors were reluctant to take on large positions before the New Year. China increased its interest rate on Christmas day, but while the timing may have surprised, the direction itself was expected and, hence, did not derail the stock market performance in Africa and beyond. The stock markets in Ghana recorded the strongest gain of 3.0% over the previous week, followed by Egypt, Mauritius and Kenya registering gains of 2.8%, 2.2% and 1.6%, respectively. Moderate gains between 0.1% and 0.3% were observed in other markets, with the exception of Tunisia which registered losses of 1.1%.

Equity Focus

Ghana: The Ghana stock market continued its rally during the week. Ghana’s All Share Index leaped by 3.0% over the week, which brings its year to date change to more than 32%. Blue chips such as Ghana Commercial Bank and Fan Milk Limited lifted the index, reflecting increased confidence of investors.

Tunisia: The TUNINDEX was down 1.1% during the week representing the strongest drop since November 2010 and following in the footsteps of the 0.2% loss during the previous week. In particular, GIF, which produces oil and gasoline filters for vehicles and exports the products mainly to Europe, continued its downward trend and lost 10% over the week. Although Tunisia’s economic prospects are set to improve in 2011, continuous concerns over the European debt crisis contributed to the negative market sentiment.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-12-21T15:33:00.001+01:00

During the week of 13 – 17 December 2010, African stock markets showed mixed performance despite the bullish global stock markets in the U.S. and Europe. The US markets reached new two-year highs, largely on the back of the November rise in retail sales, solid gains in manufacturing data and a decline in weekly jobless claims. Also, recent policy decisions in the U.S.A., especially the extended tax cuts and unemployment benefits, contributed to the positive sentiment. On the other hand, worries about the European debt crisis continued to dampen investor confidence following the downgrade of Ireland’s credit rating and warnings on possible problems in Spain and Belgium. Movements for most markets reviewed in Africa were within the +0.8% range, with only Kenya’s NSE 20 Index experiencing a decline by 1.3%. Nigeria’s NGSE All Share Index remained unchanged over the week.

Equity Focus

Ghana: Despite the losses incurred during mid-week following the refusal by the High Court to grant an injunction that would have prevented the sale of Unilever Ghana’s shares in Benso Oil Palm Plantation Limited, Ghana’s All Share Index recovered by the end of the week to continue its previous weekly gains, rising by 0.7% following a 3.5% increase a week earlier. The rise in the index was largely driven by gains in the financial sector, which include Ghana Commercial Bank, Ecobank Transnational Incorporated and UT Bank Limited. The Ghana Oil Company and the milk processor Fan Milk Limited were also among the gainers.

Kenya: The NSE 20 Index extended the previous week’s marginal losses of 0.04% by another 1.3% fall during the week-ending 17 December 2010. The NSE movements reflect, among other factors, the political uncertainties generated by the naming of suspects to be charged for the 2008 post-election violence. Moreover, the recent rise in food and energy inflation may reduce disposable incomes, which in turn could negatively affect the performance of the telecoms giant and biggest listed company Safaricom, whose share prices have been falling in recent weeks.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-12-15T16:51:00.000+01:00

During the week of 6 – 10 December 2010, African stock markets showed mixed performance despite rallies in the major global stock markets due to a tax cut package negotiated by President Obama and congressional Republican leaders and submitted to the Senate, higher-than-expected consumer confidence, and speculation in Europe that profits will be strong despite the sovereign-debt crisis.

Four out of the ten monitored African stock markets recorded gains in line with the major global markets over the week. The largest gain of 3.5% was registered by the stock market in Ghana, followed by substantial increases of 3.3% and 2.7% in the markets in Morocco and Egypt, respectively. On the other hand, six African markets reported losses in value. The market in Nigeria recorded the largest fall of 1.5%, followed by the market in Côte d’Ivoire, which posted a loss of 1.3%. The markets in Tunisia, Uganda, Mauritius, and Kenya registered minor losses (less than 0.8%).

Equity Focus

Ghana: The Ghana All Share Index picked up by 3.5% over the week on optimism that Ghana's first crude oil exports will hit the market early January. According to the government’s budget speech the economy is now forecasted to double its growth rate to 12.3 % next year. The budget speech also envisioned a hike in fuel prices of between 0.02 and 0.08 Cedis per litre to fund the repayment of debt owed by state-owned Tema Oil Refinery to creditors including Ghana Commercial Bank (GCB). GCB shares rose by nearly 12 % on the news.

Nigeria: The NGSE All Share Index fell by 1.5% over the week, as a majority of the blue chip companies on the Nigerian Stock Exchange, including Cutix Plc and Vitafoam Plc, incurred losses. The negative sentiment was partly driven by the negative profit before taxation reported by UNIC Insurance.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-12-09T08:33:00.000+01:00

During the week of 29 November – 3 December 2010, the majority of African stock markets rebounded alongside the major global stock markets. The latter rallied due to waning concerns about Europe's sovereign debt crisis and improving economic data that signalled that the U.S. economic recovery was on track. Expectations for a resolution to Europe's debt crisis were strengthened on the observation that the ECB had been purchasing Portuguese and Irish bonds and expressed its willingness to keep its benchmark interest rate at 1%, a record low. The ECB also extended an emergency loan program, and a U.S. official announced that the country would be ready to back a larger European financial stability fund via increased commitments to the International Monetary Fund. Moreover, economic data on stronger-than-expected November same-store sales from U.S. retailers, a sharp jump in pending home sales, larger payrolls in the U.S.A., and increases in European retail sales helped to support the positive market sentiment.

Six out of the ten monitored African stock markets recorded gains over the week. The largest gain of 2.4% was observed for the stock market in Morocco, followed by moderate gains of between 0.6 – 0.8% by the markets in Mauritius, Côte d’Ivoire, Nigeria, Ghana, and South Africa. On the other hand, substantial losses of between 1.5 – 2.2 % were posted for the stock markets in Egypt, Kenya, and Uganda, while a moderate loss of 0.6% was reported for Tunisia.

Equity Focus

Kenya: The Nairobi Stock Exchange Index continued its decline since the last week of October, recording a loss of 1.9% over the week. An analyst at one investment bank argued that the decreasing trend was seasonal and similar to developments observed during the pre-Christmas period in previous years.

Nigeria: The NGSE All Share Index rebounded by 0.8% over the week in line with global markets. The Nigeria Stock Exchange, the third largest in Africa, announced it would extend its trading day by two hours in a bid to attract more foreign investors, especially those from the U.S.A., to boost market liquidity. The trading hours would be extended to 9:30 am - 2:30 pm local time (08:30-13:30 GMT) from December 6. It had previously closed each day at 12:30 pm. Weak regulation and low market liquidity, making it difficult for investors to exit their positions, have so far hindered the development of the stock market in Nigeria.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-11-24T13:59:00.001+01:00

During the week of 15 – 19 November 2010, the majority of African stock markets gained alongside the major global stock markets. Global stocks rebounded as higher-than-expected U.S. corporate profits and expectations of an imminent resolution of Ireland's banking crisis outweighed renewed talk of further policy tightening in China. The stock market in Ghana led the winners among African stock markets, recording a substantial increase of 2.9%, followed by the markets in Uganda and Mauritius, which registered significant gains of 2% and 1.6%, respectively. Moderate gains of less than 1% were posted by the markets in Egypt, Morocco, Côte d’Ivoire, and Tunisia. On the other hand, three African stock markets fell, with the Nigerian stock market recording the largest loss of 1.6%, while those of South Africa and Kenya registered moderate losses of 0.9% and 0.3%, respectively.

Equity Focus

Uganda:The All Share Index of the Uganda Securities Exchange (USE) rose by 2% over the week, reflecting in part the inertial force of speculative demand for stocks. During the third quarter of this year, the turnover in USE halved from UGX 8.6 billion to UGX3.9 billion, while the All Share Index rose by 8.2%, reflecting the strength of speculative demand amid limited supply of shares due to an expectation of continued increases in equity prices.

South Africa: The All Share Index declined by 0.9% over the week amid concern that the People’s Bank of China’s move to contain inflation will slow down global growth and put downward pressure on commodities and related stocks.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-11-22T10:02:00.001+01:00

During the week of 8 – 12 November 2010, African stock markets showed mixed performance while a bearish sentiment prevailed on stock markets in the U.S. and Europe on intensifying concerns about Europe’s debt crisis and growing speculation that China would raise interest rates. The stock market in Tunisia led the gainers, recording a substantial increase of 3.0%. It was followed by the markets in Nigeria and Mauritius, which registered significant gains of 2.3% and 1.4%, respectively. Increases of less than 1% were posted by the markets in South Africa, Uganda, and Morocco. On the other hand, four African stock markets fell, with Ghana, Côte d’Ivoire, and Kenya recording significant losses of between 1.2% and 1.6%, while that of Egypt registered a marginal loss of less than 0.1%.

Equity Focus

Tunisia: The Tunis Stock Exchange’s TUNINDEX soared by 3.0% in the second week of November, recovering significantly from its October setbacks. The rally came after the Government provided details on the short-term capital gains tax to be effective from January 1, 2011. Resources mobilized from the tax would be used to ensure adequate funding to the companies restructuring and upgrading their operations and, thus, would benefit the corporate sector.

Nigeria: The NSE All-Share Index rebounded by 2.3% over the week, driven by the banking sector which was going to benefit from the operations of the Asset Management Corporation of Nigeria (AMCON). The AMCON has announced that the toxic assets of rescued banks will be taken over by the corporation and converted to equity. In particular, the state-owned AMCON will buy N 2.2 trillion (USD 14.5 billion) of bad debts from banks at discounted prices.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-11-09T13:57:00.001+01:00

During the week of 1 – 5 November 2010, the majority of African stock markets advanced alongside rallies in global stock markets, driven by the U.S. Federal Reserve announcement of a $600 billion bond-purchase plan and a report of stronger-than-expected U.S. job gains in October. In Africa, the stock markets of Côte d’Ivoire and South Africa led the rally, recording significant gains of 3.7% and 3.4%, respectively, followed by the markets of Egypt, which registered a moderate increase of 1%. Marginal gains of less than 1% were noted for the stock markets of Tunisia, Ghana, Morocco, and Mauritius. In contrast, the markets in Nigeria, Kenya, and Uganda recorded minor losses of less than 1% over the week.

Equity Focus

Tunisia: The Tunis Stock Exchange’s TUNINDEX registered a strong gain of 3.2% on Tuesday, but fell back later in the week, as sentiment was weighed down by the potential impact of taxation on short-term capital gains. The index finished by recording a gain of 0.9% over the first week of November.

Côte d’Ivoire: The BRVM Composite index rose by 3.7% over the week. The index continued to rise each day with the largest increase of 1.7% being recorded on Thursday, a day after the U.S. Federal Reserve announced its additional quantitative easing policy.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-10-19T17:00:00.001+01:00

During the week of 11 – 15 October 2010, most African stock markets rallied alongside stock markets in Europe and the United States. The latter rose on expectations that the U.S. Federal Reserve would provide additional monetary stimulus in the near term. Among African stock markets, those in Nigeria and Mauritius led the winners, recording substantial appreciations of 5.5% and 4.1%, respectively. The stock markets in Uganda, Côte d’Ivoire, and South Africa registered moderate gains of between 1.4% and 2.5% while those in Ghana, Kenya, and Egypt posted marginal gains of less than 0.6%. In contrast, the stock market in Tunisia declined by 2.4%.

Equity Focus

Nigeria: The Nigeria Stock Exchange All-share Index rose by 5.5% over the week. The appreciation was led by the food, beverages, and tobacco subsector. On the other hand, trade volume increases were most prominent in the banking subsector. In particular, the shares of Access Bank, UBA, and First City Monument Bank were heavily traded.

Tunisia: The Tunis Stock Exchange Index fell by 2.4% over the week, continuing the previous week’s decrease. The recent declines of the Index reflected in part the planned replacement of the zero tax on export activity income with a 10% tax from January 1, 2011.

Click here for the Market Intelligence Table

Market Intelligence - Equities

2010-10-13T08:46:00.001+01:00

During the week of 4 – 8 October 2010, African stock markets showed mixed performance despite the rallies in the global stock markets, driven by hopes that the U.S. Federal Reserve would take more steps to boost the economy. The stock markets in Egypt led the gainers, recording a 3.7% weekly gain, followed by those of Nigeria and Mauritius, which registered gains of 3.1% and 2.7%, respectively. Moderate gains of between 0.3% and 1.4% were posted by the stock markets of Morocco, South Africa, and Uganda. In contrast, four African stock markets declined, decoupling from the global stock markets, with the markets in Ghana and Tunisia recording substantial losses of 3.7% and 2.7%, respectively and those of Côte d'Ivoire and Kenya registering moderate losses of 0.4% and 0.3%, respectively.

Equity Focus

Nigeria: The All Share Index rose by 3.1% over the week. The price increases were driven by oil firms such as Conoil Nigeria Plc and Okomu Oil Plc, while the increases in transactions volume were led by the banking sub-sector, including the shares of GTB, Diamond Bank, First Bank, and Zenith.

South Africa: The Johannesburg Stock Exchange edged up by 1.3% over the week, propelled by the stocks of precious metal mining companies. The prices of precious metals have risen partly in response to the increased likelihood of quantitative easing from the U.S. Federal Reserve.

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Market Intelligence - Equities

2010-10-07T08:28:00.001+01:00

During the week of 27 September to 01 October 2010, most African stock markets rose along strengthening commodity prices, a weak U.S. dollar and an optimism bolstered by higher-than-estimated consumer spending in the U.S. The largest gain of 4.2% was recorded by the Ghana’s stock market. Some moderate gains of between 0.9% and 1.9% were registered by the markets in Morocco, Kenya, Uganda, Nigeria, Côte d’Ivoire, Tunisia and South Africa. The markets of Egypt and Mauritius posted losses of 1.3% and 1.1% respectively.

Equity Focus

Ghana: The All Share Index rose by 4.2% over the week, driven by gains of bank stocks. Particularly, the shares of Ecobank Ghana Limited and Ghana Commercial Bank rose substantially 12.5% and 7% respectively, on hopes that banking stocks will post strong results for the third quarter.

Egypt: The CASE 30 Index fell by 1.3% during the week, dragged down by reports of the Algerian government’s imposition of further retrospective taxes on Djezzy, the Egypt-based mobile operator Orascom Telecom’s subsidiary in Algeria. Orascom Telecom is reported to have received notification from the Algerian authorities that Djezzy owes an extra USD 230 million on top of the USD 600 million fines and back taxes it has already paid.

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Market Intelligence - Equities

2010-09-29T09:14:00.001+01:00

During the week of 20 – 24 September 2010, African stock markets showed a mixed performance. On the one hand, markets in Egypt gained the most, recording a rise of 2.9%, followed by those in Kenya, South Africa, and Côte d’Ivoire, all of which registered gains of around 1%. Moderate gains of between 0.3% and 0.8% were posted by those in Uganda, Morocco, and Ghana. On the other hand, three African stock markets remained bearish. The Nigerian stock market recorded a loss of 1.3%, while those of Tunisia and Mauritius registered marginal losses of 0.1% and 0.6%, respectively.

Equity Focus

South Africa: The All Share Index rose by 1.1%, tracking the gains in the U.S. market which rallied after a rebound in demand for capital goods. The rise of the All Share Index was helped by the data on retail sales growth of 7.9 % year-on-year in July and the appreciation of financial sector and gold miners’ counters. In particular, Nedbank, which is currently the target of an acquisition bid from HSBC, gained nearly 2 %, hitting its highest in nearly three years.

Nigeria: The NGSE All Share Index fell by 1.3% over the week, reflecting heightened instability in the market after the Security Exchange Commission intervened in the governance of the Stock Exchange through a series of directives and reformation including sacking of a substantial number of staff. This partly resulted in investors remaining less active.

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Market Intelligence - Equities

2010-09-22T10:19:00.002+01:00

During the week of 13 – 17 September 2010, the majority of African stock markets advanced alongside hopes for global economic recovery that boosted the stock markets in the U.S. and in Asia. The stock market of Mauritius led the gainers, recording a 5.3% weekly gain, followed by the markets of Uganda and Tunisia, which registered gains of 3.7% and 2.9%, respectively. Moderate gains of between 0.4% and 1.4% were posted by the stock markets of Kenya, South Africa, Egypt, and Ghana. In the contrast, the Nigerian market recorded a substantial loss of 3.6% and those of Côte d'Ivoire and Morocco registered moderate losses of 0.9% and 0.1%, respectively.

Equity Focus

Mauritius: The Mauritius stock market was strong throughout the week, recording a 5.1% gain. This rally was led by the gain by the stock of Savannah Sugar, which was the best performer of the week with its stock price rising by 50% for the week due to a bonus preference share issue to ordinary shareholders.

Nigeria: The All Share Index fell by 3.5% over the week, reducing its year-to-date gain to 10%, partly driven by a sell-off in banking stocks. The index once extended its year-to-date gain to about 25% in August 2010, placing it among the best performing frontier markets, but it has since been on a steady decline, partly amid concerns about the pace of bank reforms.

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Market Intelligence - Equities

2010-09-16T08:37:00.003+01:00

During the week of 6 – 10 September 2010, global equity markets advanced with growing optimism about global economic recovery. The upward trend of global stock markets continued after the meeting of the Basel Committee on Banking Supervision, led by gains of bank stocks on relief that the Basel III bank capital rules were not as tough as feared.

As for African stock markets, the week closed with a mixed performance. The Ghana stock market registered the highest gain (1.5%), followed by those of Kenya (1.1%) and South Africa (0.5%). The largest loss was in Nigeria (-1.8%), while Uganda and Côte d'Ivoire posted moderate downturns of 0.7% each. Minor losses of less than 0.5% were recorded in Egypt, Mauritius, Morocco and Tunisia.

Equity Focus

Ghana: The All Share Index rose by 1.5%, offsetting its loss in the previous week. The stock of Accra Brewery led the rally, recording a gain of 20%, boosted by news that its majority shareholder, Overseas Brewery Limited would buy the stake of the minority shareholders for a higher price than the prevailing market price in order to re-capitalize the company.

Nigeria: The All Share Index fell by 1.8% during the week, recording its third consecutive weekly loss. This was led by losses of bank stocks due to persistent concerns over bank profits under the Central Bank’s tight regulation on lending for buying stocks. The largest losses were recorded by Union Bank Nigeria (-12%), Access Bank (-9.6%) and Oceanic Bank Int. (-8.4%). The best performer of the week was Ashaka Cement (10.5%), which recently announced higher than expected earnings for the first half of 2010.

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Market Intelligence - Equities

2010-09-08T11:29:00.004+01:00

During the week of 30 August–3 September 2010, global equity markets advanced as fears over a double-dip recession eased. African stock markets however showed mixed performance, with the highest gains of 4.5% and 2% recorded in the stock markets of South Africa and Tunisia, respectively. Moderate gains of 0.8% and 0.5% were recorded in the markets of Egypt and Côte d'Ivoire, respectively. The markets in Mauritius, Kenya and Ghana, posted substantial losses of 1.9%, 1.6% and 1.5%, respectively. The overall stock prices of Nigeria were virtually unchanged.

Equity Focus

Mauritius: The SEMDEX Index declined by 1.9% over the week. In particular, the prices of tourism stocks sharply fell as investors speculated over weak upcoming earnings results due to the adverse impacts of the Euro-zone crisis.

Kenya: The NSE 20 Index fell by 1.6% during the week due to profit-taking, after rising to a near 2-year high in the first week of August. The market was also weighed down by a fall in the share price of Safaricom, Kenya's largest telecoms firm, caused by the stiff competition in the telecom sector.

South Africa: The JALSH Index rose by 4.5% over the week, recording its first weekly gain after 5 consecutive weeks of losses. The market tracked the movements of global equities, extending gains after the U.S. economic data, including a stronger than expected labour market report, bolstered optimism in the U.S. and global economies.

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Market Intelligence - Equities

2010-09-01T10:56:00.000+01:00

During the week of 23 – 27 August 2010, African stock markets showed a mixed performance despite sluggish global stock markets. Those in Egypt, Ghana, and Tunisia continued a bullish trend reflecting improving investor confidence within the countries. The stock markets in Côte d'Ivoire and Morocco recorded significant gains of about 2.6% and 2.3%, respectively, while those in Tunisia, Egypt, Uganda and Ghana recorded moderate gains of between 1.1% and 1.7%. The market in Mauritius remained virtually unchanged. In contrast, other local stock markets fell together with the weak major global stock markets due to persisting concerns over a double-dip recession in the global economy. This was the case for stock markets in Nigeria, Kenya and South Africa, which posted losses of 3.3%, 1.9% and 0.9%, respectively.

Equity Focus

Ghana: The renewed optimism of domestic investors continued during the week, with the market stretching gains for a third straight week. The GSE All Share Index rose by 1.7% over the week, representing a gain of 21.4% this year. The recent rallies have been mainly led by gains of financial stocks which appeal to investors with high profit potential.

Côte d'Ivoire: The BRVM Composite Index rose by 2.6% over the week, driven by strong earnings of natural rubber producer SAPH. The company announced a 14-fold increase in profits in the first half of the year compared to the same period last year due to high rubber prices and production levels.

Nigeria: The NSE All Share Index fell by 3.3% during the week, led by losses of bank stocks. Investors sold bank shares on concerns over bank profits, ahead of the September 1 deadline by which banks must meet the Central Bank’s rules on lending for buying stocks. As a prudential measure, the Central Bank capped lending by banks to investors who want to use the funds to buy stocks to 10% of all loans.
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Market Intelligence - Equities

2010-08-25T08:17:00.001+01:00

During the week of 16 – 20 August 2010, some African stock markets registered gains while others fell along with the major global stock markets which retreated due to heightened concerns about the weak U.S. economy and high debt levels in Europe. The stock markets in Ghana and Kenya recorded significant gains of about 3.5% and 2.3% respectively, while marginal gains of 1.1%, 0.9%, and 0.4% were recorded in the markets in Tunisia, Egypt and Nigeria respectively. The market in Mauritius remained virtually unchanged. In contrast, the stock markets in Côte d'Ivoire and South Africa recorded substantial losses of about 2.2% and 2% respectively, while moderate losses of about 1.1% and 0.4% were posted in Morocco and Uganda respectively.

Equity Focus

Ghana: The Ghana stock market continued its rally during the week. The GSE All Share Index rose by 3.5% over the week, representing a gain of 19.3% this year. Blue chips such as Unilever Ghana, Ecobank Ghana and Enterprise Insurance led the rally, bringing renewed confidence to investors.

Côte d'Ivoire: The BRVM Composite Index fell by 2.2% during the week, led by losses of agricultural stocks such as PALM CI, SAPH and SOGB.

South Africa: The All Share Index fell for fourth consecutive week, dropping by 2% during the week. The stock market’s movement followed those of global equity markets, which were weighed down by persistent worries over fragile global economic recovery.

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Market Intelligence - Equities

2010-08-18T09:08:00.004+01:00

During the week, growing concerns about fragile economic recovery especially in the U.S. led to weak global stock markets and major commodity markets. Most African stock markets followed suit and closed the week with losses. The stock markets in Kenya, Nigeria and South Africa registered substantial losses of 3.8%, 3% and 2.7%, respectively, while marginal losses of between 0.1% and 1.2% were posted on the markets in Côte d'Ivoire, Egypt, Mauritius and Morocco. In contrast, the Ghana stock market registered a significant gain of 2.8%, followed by Uganda and Tunisia which registered minor gains of 0.7% and 0.3%, respectively.

Equity Focus

Kenya: The Nairobi Stock Exchange's NSE 20 Share Index fell by 3.8%, partially offsetting the earlier weekly gain of 5.3%. The fall was driven by profit taking by investors and shifts to the recently launched infrastructure bonds with an interest rate of 6%.

Ghana: The Ghana stock market’s All Share Index rebounded by 2.8% from the previous week. The rally was fuelled by gains by Ghana Commercial Bank, Unilever Ghana (consumer goods), Fan Milk (dairy and fruit drink manufacturer), Enterprise Insurance Co., and SIC Insurance Co.

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Market Intelligence - Equities

2010-08-16T10:05:00.002+01:00

While global markets sustained an upward trend due to strong commodity prices and corporate earnings, African stock markets closed the week with mixed performance. Among the 10 stock markets under review, the Kenyan market posted the highest gains of 5.3%. The markets in Uganda, Mauritius and Egypt recorded moderate gains of between 1.4% and 2.2%. In contrast, the Ghana stock market registered a loss of 2.2%, while stock markets of Nigeria, South Africa and Morocco registered marginal losses of 0.36%, 0.26 and 0.18% respectively.

Equity Focus

Kenya: The Nairobi Stock Exchange's NSE 20 Share Index rose by 5.3% during the week as investors anticipated a favourable outcome after the referendum vote which would ease the political risk of investing in the country.

Ghana: The All Share Index fell by 2.2% over the week, mainly driven by a disappointing earnings report of Ecobank Transnational Incorporated (ETI), the bourse's biggest stock in terms of number of shares.

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Market Intelligence - Equities

2010-07-28T13:27:00.002+01:00

Most African stock bourses recorded gains over the week as the global stock markets and the major commodity markets rallied on strong earnings in the U.S. stock exchanges. The market in South Africa posted the highest gain of about 3.3%. The markets in Nigeria, Ghana, and Tunisia recorded significant gains of between 1.3% and 1.7%, while those of Morocco, Mauritius, and Côte d'Ivoire registered minor gains of less than 1%. In contrast, stock exchanges in Kenya, Uganda, and Egypt closed the week with losses of about 1%, 0.4% and 0.3%, respectively.

Equity Focus

South Africa: The All Shares Index jumped by 3.3% over the week, tracking the U.S. stock markets. Shares of resource companies and banks posted the largest increases, helped by higher metal prices and hopes for strong earnings in the U.S. stock market.

Kenya: The NSE 20 fell by 1% over the week as investors have been increasingly shifting to trading of government and corporate bonds at the Nairobi Stock Exchange as an alternative to stock investments. This trend reflects heightened political risks as the August 4 referendum on constitution approaches.

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Impact of the European Spending Cuts and Debt Crisis on Africa

2010-07-26T13:21:00.003+01:00

In a recent article, AfDB Chief Economist Mthuli Ncube contends that Europe's planned cuts in public spending will have a negative effect on Africa through various channels of transmission. He argues that a decrease in African exports to Europe, the volatility of the euro, and the 'crowding out' of development assistance to Africa could create a confluence of factors having a negative effect on the continent. Click here to read the full article.

Market Intelligence - Equities

2010-07-23T08:27:00.000+01:00

The performance of most African stock markets improved during the week, decoupling with global markets which mostly retreated due to renewed concerns about slow economic growth in the U.S. The stock markets in Nigeria, Mauritius, Kenya and Côte d'Ivoire recorded gains of between 1.4% and 1.6%, while marginal gains of less than 1% were recorded each in the markets of Egypt, Uganda, Morocco and South Africa over the week. On the other hand Ghana’s stock market posted a big loss of 5.6% while Tunisia’s market registered a marginal loss of 0.6% during the week.

Equity Focus

Kenya: The NSE 20 Index rose by 1.5% during the week, helped by Equity Bank, which the market expects to post solid half-year results. So far the NSE-20 has risen by nearly 35% this year, outperforming rival indexes such as the Nigeria NSE, which is up 20%, and the West Africa’s BRVMCI, which is up by 13.5%.

Ghana: The GSE All-Share Index fell by 5.6% over the week after investors took profits from stocks in banks, including Ecobank Ghana and Ghana Commercial Bank. Click here for the Market Intelligence Table.

Regional Focus - North Africa

2010-07-16T08:19:00.000+01:00

Cereal crops in Algeria are expected to fare well in spite of storms and heavy rains during May – June 2010, while those of Tunisia and Morocco are likely to be substantially affected by bad weather. The Government of Algeria expects a good harvest - at least as good as last year's record harvest of 6.1 million tonnes. Tunisia’s grain crop may drop by about 36% to 1.6 million metric tons this year because of a decline in rainfall, according to the country’s Agriculture Union. The Government of Morocco expects the country's cereal crops to decline by about 20% to 8 million tonnes from 10.2 million tonnes in the previous year.

Market Intelligence - Equities

2010-07-15T15:17:00.004+01:00

African stock markets recorded mixed performance during the week despite rallies in the global markets. The market in South Africa recorded substantial gains of 3.6%, while stock markets of Mauritius and Tunisia posted moderate gains of 0.7% and 0.6%, respectively. In contrast, the markets of Nigeria and Uganda registered significant losses of 2.6% and 2.0%, respectively. The stock markets of Côte d'Ivoire, Egypt, Ghana, Kenya, and Morocco reported minor losses of between 0.1% and 0.4%.

Equity Focus

South Africa: The All Share Index rose by 3.6%, recovering from its losses in the previous week. The rally in the market was driven by increased risk appetite of investors based on improved prospects for a global economic recovery. At the same time, this increase may not be durable, since the downside risks to the slower global recovery have markedly risen, with the European debt crisis and lukewarm short-term US economic prospects.

Nigeria: The NSE All Share Index lost 2.6% during the week, reflecting worse-than-expected performance of the banking subsector. In particular, the Intercontinental Bank, one of the nine bailed out by the central bank last year, posted a 238 billion naira pre-tax loss for the 10 months to December 2009, compared to a 336 billion loss in the previous full year. Strengthening of the domestic financial sector remains a key pre-requisite to growth and asset market performance. Click here for the Market Intelligence Table.

Country Insight - Namibia & Mauritius

2010-07-13T08:01:00.001+01:00

Namibia: Power utility Nampower plans to invest USD 2.33 billion in power generation and expanding electricity transmission over the next five years to attract mining investment. The utility sees power demand growing by 3 - 5% annually and this is set to triple by 2030, largely due to increasing demand from Namibia's uranium mines.

Mauritius: The Government expects economic growth to slow down to between 3.5% and 4.0% in 2010 from a previous estimate of 4.3%, with unemployment rate in 2010 increasing to 7.5% from 7.3% last year. The tourism sector, among others, would be affected by the lingering debt crisis in the Euro zone, a key source of tourists for the country.

The Monetary Policy Committee left the Central Bank's benchmark repo rate unchanged at 5.75%, citing uncertainty over the economy caused by Europe's debt crisis.

Market Intelligence - Equities

2010-07-09T17:32:00.001+01:00

With the exception of a few, African stock markets were pulled downward by continued European debt worries and weak global equity markets. The markets in Côte d'Ivoire, South Africa and Egypt are among the hardest-hit, registering losses of 3.1%, 3.5% and 4.4%, respectively. The stock markets in Tunisia, Ghana and Morocco also posted losses of between 0.1% and 1.9%. However, the Uganda market recorded a significant gain of 1.5%, while those of Kenya, Mauritius and Nigeria posted minor gains of between 0.3% and 0.7%.

Equity Focus

Egypt: The CASE 30 Index fell by 4.3% over the week as investors lost risk appetite due to uncertainty in global financial markets and signals of weaker global demand for goods, reflected by a decline in demand for crude oil.

Côte d'Ivoire: The BRVM Composite Index dropped by 3.1%, led by falls in stock prices of food manufacturing company (Nestle) and car seller (Cfao CFAC.CI). Click here for the Market Intelligence Table.

Undersea Cable Set To Boost West Africa Broadband

2010-07-05T16:28:00.004+01:00

Wired.com reports on Main One, the eagerly-awaited submarine cable linking West Africa to Europe which has recently gone live, paving the way for cheaper and more reliable internet access in one of the world’s fastest-growing telecoms markets. The AfDB was the lead arranger and financier for this landmark ICT project.

Wired reports that the 4,350 mile fiber optic Main One Cable runs from Portugal to Nigeria and Ghana, and also branches out to Morocco, the Canary Islands, Senegal and Ivory Coast.

According to the article, the Main One Cable Company will deliver more than ten times the broadband capacity of the South Atlantic Terminal (SAT-3), Nigeria’s sole existing undersea cable, and 20 times the entire satellite capacity of sub-Saharan Africa. Click here to read more.

Africa's Biggest Score: A Thriving Economy

2010-07-02T05:30:00.000+01:00

Was Ghana's extended-time victory over the U.S. in the World Cup elimination round on June 26 a precursor of what is to come in the broader global economy? Almost unnoticed, signs of economic life have begun to stir in that most unlikely of places—Africa. Despite its riches in natural resources and geographic proximity to Europe, Africa has been a perennial laggard on the global economic scene. Mention the phrase "emerging economies," and most people rightly think of Asia and Latin America. Few look to Africa as an economy of the future. That view might be changing. As then U.N. Secretary General Kofi Annan declared in 1999, "Africa's profitability is one of the best-kept secrets in today's world economy." Click here to read more from Businessweek.com's Frank Aquila as he explains the ascent of African economies.

Is There a Threat of a Global Double Dip Recession? What This May Mean for Africa

2010-07-01T11:43:00.005+01:00

More and more signs of double-dip or ‘W” shaped recessions are looming around the globe. This time the secondary dive is originating in Europe not in the US, however, unless attention is given and pre-cautionary measures are taken, Africa and other LDC’s might be impacted again! Click here to read more from AfDB Economist Hassan Y. Aly.

Market Intelligence - Equities

2010-06-30T16:00:00.000+01:00

Against a weak global equity backdrop and persistent pressures on the Euro zone, African stock markets closed the week lower than the previous week. The hardest-hit markets were Nigeria and Uganda, which recorded losses of 2.7% each. The stock markets of Côte d'Ivoire, Egypt and South Africa also registered moderate losses of between 1.5% and 1.8%, while those of Ghana, Kenya, Morocco and Tunisia recorded marginal losses of less than 1% each. A minor gain of 0.5% was posted by Mauritius stock market.

Equity Focus

South Africa: The All Share Index dropped by 1.8%, in line with emerging stock markets in other regions, after a U.S.A. report showed the world’s largest economy grew less than earlier estimated.

Nigeria: The NSE All Share Index fell by 2.7%, offsetting the gain in the previous week. The stocks in the banking subsector dragged Nigeria's all-share index lower for the sixth straight day, due to on-going concerns over profit recovery of the banks after the bailout in 2009. Click here for the Market Intelligence Table.

Country Insight - Tanzania & Zambia

2010-06-21T07:32:00.000+01:00

Tanzania: The Bank of Tanzania is pushing ahead with the process of securing a sovereign debt rating for the country, as part of plans to restart the launch of a Eurobond. Tanzania expects to have a sovereign rating within seven or eight months. Plans to launch a sovereign bond were shelved in 2008, as international conditions worsened. The money raised through the bonds will be mainly used for infrastructure development projects.

Zambia: The Government plans to sell its first international bond this year, raising USD 1 billion for rail and power projects. The government expects to have its first sovereign credit rating by Q3 of 2010 and will proceed with the bond sale soon after that. Zambia abandoned a plan to seek a credit rating and sell a bond abroad in 2008 after the global financial crisis sparked a sell-off of emerging market assets.

Market Intelligence - Equities

2010-06-18T17:21:00.000+01:00

The week was characterized by price increases in African stock markets, which followed the rallies of global stock markets. The best-performing markets were South Africa and Egypt, which recorded price increases of 3.4% and 2.8% respectively. The stock markets of Mauritius and Nigeria also posted moderate gains of 1.3% and 1.7% respectively, while those of Ghana, Kenya, Tunisia and Uganda registered marginal gains of less than 1% each. In contrast, the stock markets of Côte d'Ivoire and Morocco registered losses of 0.1% and 1.9%, respectively.

Equity Focus

South Africa: The All Share Index rose by 3.4%, continuing its gains of the previous week. The bullish market was fuelled by better-than-expected local retail sales data, as well as improving sentiment about a global recovery.

Nigeria: After average losses of 2% for last four weeks, the NSE All Share Index gained 1.7% during the week, as investor confidence was gradually restored especially in the Banking subsector. The upward trend in the market is expected to continue for a while, driven by renewed investor interests to take advantage of low prices of equities. Click here for the Market Intelligence Table.

Country Insight - Burundi & Cameroon

2010-06-18T07:30:00.000+01:00

Burundi: The inflation rate accelerated to 7.4% year-on-year in April from 6.6% a month earlier, driven by housing, water and energy costs. The prices of housing, water and energy jumped by 14.9% in April from a year earlier, after rising by 10.9% in the previous month.

Tea export revenues increased by 42% in April compared to the same month last year, helped by increases in production and prices on the regional market. The country exported 428 tonnes worth USD 1.12 million in April, up from 359 tonnes (USD 0.79 million) last year.

Cameroon: Cocoa exports fell by 3.6% to about 159,800 tonnes for August 2009 - April 2010 from about 165,700 tonnes during the same period a year ago.

Commodity Market Update

2010-06-15T07:25:00.002+01:00

Crude Oil (Brent): The price of crude oil turned down, falling by 3.3% to USD 71.51 per barrel after an 8.7% rise in the previous week. Investors still remained skeptical about market fundamentals, particularly concerns over the ongoing debt crisis in Europe.

Copper: Copper prices fell by 9.2% during amid worries that European debt problems could stall global economic recovery. The metal, which is normally priced in US dollar, was made more expensive as the dollar grew stronger.

Market Intelligence - Equities

2010-06-13T19:19:00.002+01:00

Most African stock markets fared well during the week of 31st May – 4th June despite lingering turmoil in global financial markets. The stock markets in Côte d'Ivoire, Egypt, and Mauritius recorded substantial gains of 4.1%, 2.9% and 2.2% respectively. Morocco's stock market also recorded a moderate gain of 1.4%. Marginal gains of 0.5% each were recorded in Kenya, Tunisia and Uganda, and slightly higher in Nigeria at 0.7%. In contrast, the stock markets in South Africa and Ghana posted losses of 2.4% and 1.9%, respectively.

Equity Focus

Côte d'Ivoire: The BRVM Composite Index rose by 4.1% after a 0.6% fall in the previous week. Market gains during the referenced period were led by stocks in the financial sector, public services and agricultural sector.

South Africa: The All Share Index tumbled by 2.4% during the week, offsetting the gain in the previous week, following losses on the European and US markets due to a less than expected job recovery in the US. This outcome revived fears about slower global growth. Click here for the Market Intelligence Table

The Seeds of Change in Africa's Economic Climate

2010-06-02T19:11:00.004+01:00

Reporter Geoffrey York of the Globe and Mail, writes about how some entrepreneurs and financiers have taken a radical view to climate change--they see how Africa can benefit from the economic opportunities of climate change. In the article, the AfDB's Vice President, Bobby Pittman talks about the scaling-up of renewable energy projects on the continent and the Bank's role as the lead financier for clean energy in Africa. Click here to read more.

AfDB Group Invested USD 6 Billion in Infrastructure in Africa in 2009

2010-05-29T19:35:00.002+01:00

At the annual meetings in Abidjan last week, the Bank group announced it invested USD 6 billion in infrastructure projects in 2009. The key infrastructure projects approved in 2009 included airport projects in Morocco and Tunisia, national road projects in Burkina Faso, Cameroon, Chad, Ghana, Guinea, Mali, Sierra Leone, Malawi, Rwanda, Senegal and Uganda. Click here to read more.

Country Insight - Tanzania

2010-05-29T08:58:00.001+01:00

Tanzania: The Government plans to issue local infrastructure bonds to finance railways, ports and airports within the current or next fiscal year but the amount of the bond issue is yet to be determined. The Government also plans a Eurobond issue of at least USD 500 million, but does not yet have a sovereign rating. One of the biggest projects the country seeks to fund is the rehabilitation and extension of its main railway line from Dar es Salaam to Isaka in the North and onward to Rwanda and Burundi, which would cost USD 2.8 billion.

Vodacom, the country’s largest mobile phone operator, expects the number of users to grow by 22% to 9 million by the end of this year. It also targets more mobile banking services, increasing the number of active users from the current 0.5 million to 2 million by the end of this year.

South Africa's Standard Bank Group announced the launch of its first Islamic banking product - the Shariah law-compliant savings and current accounts - in Tanzania and is awaiting regulatory approval to offer similar services in Nigeria.

Regional Focus - Western Africa

2010-05-27T08:56:00.000+01:00

Western Africa: Equatorial Guinea agreed to supply Ghana with 2 million barrels of crude oil per year in a deal meant to help Ghana's debt-ridden refinery - the Tema Oil Refinery (TOR) - continue operating. Despite a partial payment of TOR's debt by Ghana's government in March 2010, the refinery is still experiencing difficulties in acquiring credit to buy more crude oil.
Brazilian miner Vale, which recently made a USD 2.5 billion deal to acquire the concession of the Simandou iron ore in Guinea, plans to ship production from the deposits through a new rail export line to neighbouring Liberia. The firm is negotiating with the Liberian government for the rights to use an existing railway to move the ore to port, and is also in talks to build new rail and port infrastructure in Liberia.

Regional Focus - Southern Africa

2010-05-25T08:05:00.000+01:00

Most southern African countries will record high maize harvests in 2010. South Africa projects total maize output at 13.10 million tonnes and plans to export around 4 million tonnes of its maize surplus. Zambia and Malawi also intend to export some surplus maize. The Government of Angola, which had a once-prosperous farming sector before civil unrest, is optimistic of a rebound in the sector, with a 10.7% growth expected this year. However, the Food and Agriculture Organisation (FAO) reports that some countries will need emergency food assistance to feed their people following poor maize yields. The Zimbabwe government expects its maize output to fall by 11% this year due mainly to bad weather.

Market Intelligence - Equities

2010-05-21T17:26:00.001+01:00

Stock Markets

Overall, African stock markets recorded gains during the week of May 10 – 14, responding positively to EU’s €750 billion stability fund. The stock markets in South Africa and Ghana posted gains of more than 3%, while those in Côte d'Ivoire, Kenya, Morocco, Nigeria and Tunisia registered modest gains of up to 1.3%. In contrast, the stock markets in Egypt, Mauritius and Uganda recorded losses by up to 2.8%, which is mainly a carryover from the previous week. The longer-term impact of the Greek crisis still remains to be seen. In particular, it may lead to investors’ re-pricing of risks of African emerging and frontier markets with public debt challenges (e.g., Ghana) and hence increased cost of financing.

Equity Focus

South Africa: The All Share Index increased by 3.1% over the week, partly offsetting the previous week’s loss of 7.4%, as investors’ confidence was restored by the massive emergency package to stabilise the Euro Zone debt woes.

Egypt: The stock market continued its downward trend, but at a slower pace. The CASE 30 Index fell by 2.8% during the week after a drop of 4.5% in the previous week as investors’ concerns still lingered over the Greek debt crisis and its potential negative impact on Egypt, despite the EU’s rescue plan. Click here for this week's Market Intelligence Table.

Regional Focus - East Africa

2010-05-21T08:04:00.000+01:00

Each of the five East African Community (EAC) members (Burundi, Kenya, Rwanda, Tanzania, and Uganda) will equally contribute to the construction of a new regional railway system estimated to cost USD 25 billion. This decision was made due to the urgent need to establish the required infrastructure to facilitate investment in the region especially roads, railways, and power as reported by the EAC at its 3rd Investment Conference in Kampala during the week. The EAC also reported that it would link inland waterway ports with transport corridors in the region. A total of USD 74 billion was pledged at the Kampala meeting to rehabilitate railways, roads and water systems.

A New and Improved African Development Bank?

2010-05-19T11:16:00.002+01:00

“With the African Development Bank (AfDB) seeking approval from its shareholders for a three-fold increase in its capital base, CGD senior fellow and vice president Todd Moss has evaluated the bank’s progress against six recommendations offered by a CGD working group in 2006. How much progress has the AfDB made?

In this frank report card, Moss gives bank management high marks for the three recommendations under its control: promoting economic growth, specializing in infrastructure, and strengthening the bank’s role as a voice for the continent (by leading not lending). But the shareholders—the bank’s member countries—earn two incompletes and an “F” on the three recommendations that they control: backing off (e.g. reducing the laundry list of shareholder demands); lightening up (transforming the Board into a nonexecutive, nonresident body); and settling the issue of the location of the bank’s headquarters.” Click here to read more.

Country Insight - Uganda

2010-05-19T08:59:00.000+01:00

Uganda: Tax revenues rose by 20.5% in the first half of 2009/10 relative to the same period a year earlier, but fell 2% short of the projected collection. The government is attempting to make the economy less donor dependent and hopes that oil discoveries in its western region will replenish government treasury resources once production begins in the next few years.

The National Oil Company that the government plans to set up will be allocated 15% of the country’s oil production. Tullow Oil Plc, the U.K. explorer and its partners (Total SA and China National Offshore Oil Corp.) will share the remaining 85% on an equal basis. Tullow Oil Plc expects to start producing gas in the country by the third quarter of 2011, which will help boost the country's energy production by some 12%.

Commodity Update

2010-05-18T22:53:00.000+01:00

Crude Oil (Brent): The price of crude oil (Brent) fell by 12.8% to USD 75.11 per barrel, extending the steepest weekly loss in 16 months. It is due to concerns that Europe's debt crisis will slow the global economic recovery.

Copper: The price of copper fell by 6.2% over the week as large sell-offs in global equities and persistent euro zone debt worries adversely affected investor sentiment.

Country Insight - Morocco & South Africa

2010-05-18T08:58:00.000+01:00

Morocco: The Government expects total tourist arrivals in 2010 to reach 9.4 million, 6% higher than in 2009 but below a target of 10 million set before the global recession. Despite the global financial and economic crisis, Morocco managed to keep visitor numbers growing by 6.5% but tourism income slipped by 5% to 52.8 billion dirhams (USD 6.2 billion).

The Government plans to lease 74,000 acres of farmland per year to improve yields, satisfy growing national demand and boost export. But it reported that it has no plans to sell farmland outright to foreign companies or governments that want to secure their future food supplies.

South Africa: South Africa's trade account improved significantly turning into a surplus of 460 million rand (USD 61.8 million) in March 2010 after a deficit of 5.7 billion rand (USD 770 million) the previous month. Compared with the previous month, exports were up by 27.5%, while imports increased by 11.2%.

The Government has launched a new incentive scheme for the textile industry, effective May 2010, replacing the old export regime. This new incentive scheme will be based on 10% of the value that a producer’s manufacturing process will be adding to the raw materials over the entire year. This 10% will then be applied as a credit at the Industrial Development Corporation (IDC) in the form of a "discount" on capital and operating capital dues.

The Government also plans a 5.3 billion rand (USD 710 million) financial incentive to promote energy efficiency among electricity consumers. The scheme would enable electricity consumers to claim a rebate with respect to the amount of energy they had saved from the electricity system.

FDI in Africa

2010-05-17T08:02:00.000+01:00

Algeria – Saudi Arabia: Saudi Arabian investors are looking at opportunities to buy farmland in Algeria, following investments in Egypt and Sudan. Saudi Arabia will import up to 1.2 million tonnes of cereals this year and is cutting its own grain output because of concerns related to water supply, according to the Saudi Arabian Minister of Agriculture.

Africa - Middle East: Signature Group, an asset management company, asserts that there will be a substantial increase in investment from the Middle East into Africa in resources, infrastructure, and related service industries.

Market Intelligence - Equities

2010-05-16T22:45:00.002+01:00

African stock markets exhibited mixed performance amid European debt worries. The stock markets in Côte d'Ivoire, Egypt and

South Africa

underwent sharp losses - between 2.8% and 7.4%. On the other hand, the stock markets in Nigeria and

Ghana

recorded a substantial increase of 3.99% and 5.1%, respectively.

Equity Focus

South Africa

: South African shares declined by 7.4% over the week as fears about Europe's debt crisis battered equity markets worldwide.

Ghana

: The All Share Index increased by 5.1% during the week, despite heavy global equity losses. The recent rally is attributed to the positive developments in the key macroeconomic indicators such as the decline in inflation and interest rates as well as the stabilization of the exchange rate. Click here for the Market Intelligence Table.

FAPA Activity Report Available

2010-05-14T10:58:00.004+01:00

The Fund for African Private Sector Assistance is a Private Sector-focused, AfDB-administered, Japan-sponsored trust fund to deliver much needed capacity building and technical assistance grants in Africa. A more elaborate description can be found in this previous blog article and through this AfDB web link. The FAPA Team has launched a 2008-09 Activity Report to present achievements, conclusions and the way forward for 2010 and beyond.

The report is available here.

Country Insight - Côte d'Ivoire & DRC

2010-05-14T08:55:00.001+01:00

Côte d'Ivoire: The Abidjan port launched a seven-year bond bearing 6.95% interest, aiming to raise 25 billion CFA francs (USD 50 million) to finance its modernization works. The bond will be issued on May 21 across West Africa's eight-nation CFA zone and abroad.

Tongon mine, a gold mine owned by South African miner Randgold, will start production in October 2010 and is expected to produce 75,000 ounces of gold in 2010. Tongon projects gold output to increase up to 280,000 ounces per annum from 2011 through 2013.

The DRC: The Government forecasts that copper and cobalt production in the country will more than double over the next two years, signaling a surge in revenues. Copper production is expected to rise to about 850,000 tonnes in 2012 from an estimated 410,000 tonnes this year, while cobalt output will reach 91,000 tonnes from 39,000 tonnes over the same period. As a result of increased copper production, revenue from the mining industry is expected to more than triple, rising to about USD 88 million from USD 28 million last year.

Commodity Market Update

2010-05-12T08:00:00.000+01:00

Crude Oil (Brent): The price of crude oil (Brent) fell by 69 cents to USD 85.73 per barrel as a surge in U.S. crude inventories provoked negative sentiment, following the downgrade of credit ratings for Greece, Spain and Portugal.

Gold: The price of gold rose by 3.5% over the week as worries over Greece's ability to resolve its debt problems prompted investors to buy gold as a safe haven.

The Final Splice of Main One Cable

2010-05-11T14:34:00.001+01:00

On Wednesday, May 19 at the Tema Port in Ghana, one of the Bank’s private sector projects, Main One Cable will be planning the final splice, a landing which marks the successful completion of phase one of the project, which began with landings in Portugal and Nigeria. A brief ceremony will be held to mark the momentous event. Click here to read more on Main One.

Market Intelligence - Equities

2010-05-10T08:01:00.001+01:00

African stock markets closed the week with a mixed performance. The stock markets in Uganda and Egypt registered substantial gains of up to 5.0%, while those in Tunisia, Ghana, Kenya and Mauritius recorded modest gains of up to 1.5%. On the other hand, the stock markets in Côte d'Ivoire, Nigeria and South Africa underwent substantial losses of up to 4.5% over the week.

Equity Focus

South Africa: South African shares declined by 1% over the week, tracking global stock markets which were affected after Standard & Poor's cut its credit ratings on Greece, Portugal and Spain.

Nigeria: The All Share Index decreased by 3.5% during the week as Nigerian banks reported lower than expected profits and Greece’s debt woes damped investor appetite for riskier assets.

2010 ICA Annual Meetings - Integrating African Economies through Regional Infrastructure

2010-05-09T16:07:00.004+01:00

The 2010 ICA Annual Meetings held in Tunis, May 6 - 7, focused on integrating economies through regional infrastructure. The meeting was co-chaired by the Canadian International Development Agency (CIDA) Executive Vice-President, David Moloney, and African Development Bank (AfDB) Vice President, Bobby J. Pittman. The meeting highlighted various 2009 reports with key highlights including:

-6.9% increase in total commitments to Africa by ICA members
-75% increase in energy commitments and 20% increase in transport
-Regional projects in 2009 reached $3.7 billion in commitments

Meeting participants also stressed the importance of innovative financing to facilitate regional infrastructure development, especially in the power sector. Commenting in advance of the meeting, the African Development Bank’s Vice-President, Bobby J Pittman, said: “The challenge of achieving regional economic integration requires, among others, regional solutions; African institutions, such as the AU Commission, NEPAD Planning and Coordination Agency, working together with the Regional Economic Communities to deliver improvements in trans-boundary infrastructure.” Click here to read more about the event.

Capital Increase Will Enable AfDB to Meet Africa’s Infrastructure Demands

2010-05-03T20:33:00.003+01:00

A recent blog post by the Whitaker Group highlights how the Bank's capital increase will give the institution the means to continue to meet the infrastructure demands of the continent – not just traditional infrastructure like roads, bridges, water, sanitation, and power, but also – and increasingly important – information infrastructure. Click here to read more.

Africa's Emerging Powerhouse

2010-04-28T03:44:00.002+01:00

Our friends at the ONE Campaign have posted a blog on the success of the Bank's capital increase and the emergence of the Bank as a force for Africa's development. Click here to read more.

Investors Set to Discuss Opportunities in Africa

2010-04-28T03:40:00.002+01:00

Investors from the East African region will between May 18 and 19 meet in Nairobi, Kenya to discuss investment opportunities in African private equity. In a press statement released by the Common Wealth Secretariat, the two-day meeting will bring together representatives from pension funds, insurance companies and other investors across Uganda, Kenya, Tanzania and Rwanda. Click here to read more.

200% Capital Increase Recommended for the Bank

2010-04-23T19:45:00.001+01:00

A committee of Governors representing the African Development Bank (AfDB)'s shareholders endorsed a tripling of the Bank’s capital resources to nearly USD 100 billion. This substantial increase will allow the AfDB to sustain a higher level of lending, which means the Bank can increase lending to low income countries especially for private sector transactions given the increased demand. Click here to read more.

Market Intelligence - Equities

2010-04-22T15:41:00.001+01:00

African stock markets closed the week generally higher than the previous week. The stock markets in Côte d'Ivoire, Egypt, Ghana, Kenya, Mauritius, Morocco, Nigeria, Tunisia and Uganda recorded gains of up to 5%. However, South Africa’s JSE registered a loss of 1% over the week.

Currency Focus

Morocco: The All Share Index rose by 5% over the week, as blue chip firms such as Attijariwafa Bank and Maroc Telecom attracted investors.

South Africa: After six consecutive weekly gains, the All Share Index fell by 1% over the week, probably due to profit-taking by investors.

For the full week's report, please click here.

Reforming Africa’s Financial Regulatory System for the 21st Century

2010-04-20T13:01:00.000+01:00

According to AFDB economist Leonce Ndikumana , following the financial crisis, efforts have been undertaken to reform the global financial system, with a view to ensuring greater financial market stability. While there has been no systemic banking crisis in Africa, the ongoing global debates and consultations on the regulatory framework have yielded numerous reform suggestions, which have important implications for African financial systems and African economies in general. Click here to read more at Making Finance Work for Africa.

Making Finance Work for Africa (MFW4A)

2010-04-19T15:48:00.003+01:00

The Making Finance Work for Africa (MFW4A) website has been launched today! The website is a knowledge hub for financial sector development in Africa. Highlights include financial sector country profiles for all 53 RMCs, a rich library of resources and news from MFW4A trained financial journalists from around the continent. In addition, the website includes a blog, the Africa Finance Forum, where renowned financial sector experts, practitioners and academics debate current issues in African finance. Click here to visit the site.

African Country in Focus - Zambia

2010-04-07T07:53:00.000+01:00

Zambia: The Government called for foreign and local investors to participate in cultivating the 155,000-hectre Nansanga farm bloc; a new model farm meant to encourage economic diversification from copper and cobalt mining to agriculture. The government invested more than 100 billion Zambian kwacha (USD 21 million) in building roads and dams for the farm bloc, supplying electricity to attract investors to grow export crops. It reported that the country had faced increasing maize import requirements from its neighbours, particularly Angola and the DRC. The Government also reported that it would encourage farmers to sell their crops to local canning factories instead of exporting it in raw form for value added purposes. In this light, a canning factory, operated by food processing and canning firm, Freshpikt, was commissioned, during the week, to process baked beans, peanut butter, pineapple chunks and fresh fish mainly for export to South Africa, Zimbabwe and the DRC.

Industry Insight - Mining

2010-04-05T07:51:00.000+01:00

Zambia: The copper production fell by 13% to 54,500 tonnes in January 2010 from 62,600 tonnes in the same month last year, due to some mining closures. Cobalt production in January 2010 rose to 734 tonnes from 367 tonnes in January 2009. The increase was attributed to the resumption of operations by Zambia's largest cobalt producer, Chambishi Metals.

Country Insight - Rwanda

2010-04-02T07:49:00.001+01:00

Rwanda: The Government expected that the economy would grow by 7% this year as mineral exports and the construction sector would pick up. It reported that the economy achieved a growth rate of 5.5% in 2009, thanks to the good performance in agriculture. However, the 5.5% growth rate is a slow down from 11.2% growth in 2008, and an average of 7– 8% over the last decade.

Market Intelligence - Equities

2010-04-01T06:56:00.001+01:00

African stock markets closed the week with a mixed performance. The stock markets in Côte d'Ivoire, Egypt, Kenya, Morocco, Nigeria and South Africa recorded gains of up to 3.3%, while the markets in, Mauritius and Tunisia registered losses of up to 0.4% over the week.

Equity Focus

Nigeria: The All Share Index rose to a seven-month high, advancing by 3.3% over the week. Trading activities in the banking sector continued to be the main driver of the market, accounting for about 40% of the week’s trading volume.

Industry Insight - Agribusiness

2010-03-31T07:47:00.000+01:00

Burundi: The tea export earnings jumped by 70% in February 2010 from the same month a year earlier, boosted by higher volumes, prices and the quality of the crop, according to the Burundi Tea Board. The country exported 980 tonnes worth USD 2.8 million last month, up from 818 tonnes worth USD 1.6 million a year earlier. The Tea Board projects tea output will reach 7,600 tonnes this year, up from the 7,000 tonnes produced in 2009, partly due to good rains and an increased use of fertilizers.

Market Intelligence - Currencies

2010-03-31T07:39:00.002+01:00

During the week of 22 – 26 March, most African currencies depreciated by up to 2.8% against the US dollar, mirroring movements in the Euro which hit a 10-month low against the USD after Fitch Ratings downgraded Portugal's sovereign credit rating. Only 11 currencies appreciated vis-à-vis the US dollar, including Uganda’s Shilling (1.7%) and the Gambian Dalasi (0.8%). The currency value in Rwanda remained unchanged over the week.

Currency Focus

Uganda: The Shilling strengthened against the US dollar, rebounding off the lowest level since June 2009 as demand for the US dollar from local companies was subdued. The Ugandan Shilling had been on a steady downward trend since the middle of December 2009.

For this week's Market Intelligence Update, please click here.

Country Insight - Malawi

2010-03-29T07:45:00.003+01:00

It is estimated that unreliable power supply is costing the country about USD 215 million (0r 4.4% of GDP) a year and deters new investment, according to the Millennium Challenge Account-Malawi (MCA-M), a U.S. bilateral development fund.

Market Intelligence - Equities

2010-03-26T07:47:00.002+01:00

For the week of 15-19 March, African stock markets saw mixed performance. The markets in Ivory Coast, Nigeria, South Africa and Tunisia recorded of gains up to 1.6%, while the markets in Egypt, Kenya, Mauritius and Morocco registered losses of up to 2.3% over the week.

Equity Focus

Egypt: The CASE 30 Index dropped by 2.3% over the week, affected by stock price falls in the telecommunications sector. In particular, Orascom Telecom fell to the lowest level since January 2010 on investor concern that a planned share issue would dilute the value of existing shares.

Nigeria: The stock market rallied for the second consecutive week, with the All Share Indiex rising by 1.6% over the week, boosted by gains in blue chips such as TotalNigeria and Clout Mills Nigeria.

Market Intelligence - Currencies

2010-03-23T19:42:00.002+01:00

During the week of 15 - 19 March, most African currencies fluctuated within a 1.2% range against the US dollar. Of the four currencies outside this range, the South African Rand and Gambian Dalasi appreciated against the US dollar by 1.7% and 1.6% while the Ugandan Shilling and Sierra Leone's Leone depreciated by 2.8% each. The currency values in Mauritius and Liberia remained unchanged over the week.

Currency Focus

Uganda: In the interbank market of the week, the Shilling weakened to the lowest level since June 2009 against the US dollar. This depreciation was attributed to a general rise in demand for the US dollar from the energy and telecom sectors.

For this week's market intelligence updates, please click here.

Citadel Capital Plans to Invest in East African Railways

2010-03-19T08:47:00.000+01:00

The Egyptian firm Citadel Capital recently said it plans to invest 150 million US dollars over five years to improve the railway line from Kenya to Uganda. Citadel said it had acquired a 17.5% stake in Rift Valley Railways (RVR), which operates 2,000 kilometres of track in East Africa. The rail network connects Kenya's port of Mombasa to the interior of Kenya and Uganda, including its capital Kampala, but is a century old and has suffered from chronic underinvestment.

Market Intelligence - Equities

2010-03-18T08:17:00.002+01:00

Most African stock markets rallied over the week of 8-12 March. The stock markets in Kenya and Nigeria each recorded large gains of up to 8.3%, which the markets in Ivory Coast, Mauritius, Morocco, South Africa and Tunisia registered smaller gains of up to 2% over the week. The Egyptian stock market recorded a minor weekly loss of 0.2%.

Equity Focus:

Kenya: The All Share Index rose by 8.3% over the week, rising to a 16-month high as the stock prices of agricultural companies were boosted by heavy rains, thereby improving production outlook.

Nigeria: The All Share Index rebounded by 5.3%, led by the banking sector as lawmakers moved closer to passing a bill to establish an Asset Management Company to handle toxic debt.

Market Intelligence - Currencies

2010-03-17T08:57:00.000+01:00

During the week of 8-12 March, most African currencies fluctuated within a 1.4% range against the US dollar. Sierra Leone's Leone was the exception, as it appreciated 2% against the US dollar. The currency value of Mauritian Rupee remained unchanged over the week.

For this week's full market intelligence update, please click here.

Djibouti Emerges as a Trade Gateway

2010-03-17T08:39:00.001+01:00

Under the private sector window, the AfDB Board approved an US$ 80 million senior loan to finance the Doraleh Container Terminal (DCT) Project in Djibouti. The project involves the construction of a new terminal at Doraleh deep sea port capable of accommodating huge merchant ships under a 30-year Concession Agreement awarded to DCT. The project is illustrative of Djibouti's emergence as a key trade gateway for the member nations of the Common Market for Eastern and Southern Africa (COMESA). Click here to read more.

African Clean Energy Projects May Triple

2010-03-15T08:24:00.000+01:00

According to Bloomberg News, the value of carbon emission- reduction projects in Africa is expected to almost triple from 2008. The UN Capacity Development for the Clean Development Mechanism estimates that there are 116 projects that will generate 125 million carbon credits by the end of 2012. This translates into a monetary value of about 1.4 billion euros. The African Development Bank has promoted investments in wind, hydro, co-generation, geothermal and solar projects since the Kyoto Protocol was agreed in 1997. Click here to read more of this article.

Market Intelligence - Equities

2010-03-12T12:47:00.003+01:00

African stock markets continue to show mixed performance. The equity markets in South Africa and Kenya recorded gains of up to 4.3% over the week. The markets in Egypt and Côte d'Ivoire closed the week marginally higher (up to +1%), while those in Tunisia, Nigeria, Mauritius and Morocco fell (up to -1%).

Equity Focus

Kenya: The All Share Index rose by 2.1% over the week, registering a second weekly gain. The rallies came after the country’s leaders (Kenya’s President and Prime Minister) in a coalition government agreed on February 17, 2010 to meet face-to-face to end political uncertainty. Elsewhere, the Nairobi Stock Exchange (NSE) is expected increase the share capital to 1 billion Shilling (USD 12.5 million) from the current 200 million Shilling (USD 2.5 million).

South Africa: The South African stock market recoded a weekly gain of 4.3%, partly driven by higher commodity prices.

Market Intelligence - Currencies

2010-03-10T18:59:00.001+01:00

During the week of 1 – 5 March, most African currencies appreciated vis-à-vis the US dollar by up 4.4%. Only nine currencies in Angola, Djibouti, Gambia, Liberia, Mauritania, Mozambique, Sierra Leone, Somalia and Uganda depreciated against the US dollar by up to 1.2% over the week.

Currency Focus

South Africa: The Rand appreciated against the US dollar by 4.4% over the week, partly driven by positive investor reactions to the Greek government’s announcement of additional deficit cuts of 4.8 billion Euros. This week's edition of Market Intelligence is available here.