African telcos finally get their big fintech prize 8 Nov 2021 After years of delay, Nigeria’s central bank is letting phone firms offer basic banking via handsets. For the regulator, it’s a way of staying relevant as consumers dabble in cryptocurrencies. For operators like MTN and Airtel Africa, it’s a multibillion-dollar payday.
African debt holiday choices open new divisions 20 May 2020 Kenya won’t take up a G20-backed offer to poorer nations to suspend debt repayments. That’s because private creditors may take a dim view of such a move, irrespective of what ratings agencies say. Africa’s laggards have to accept the offer and will look worse in comparison.
Safaricom should hunt for its next CEO in Africa 1 Jul 2019 Kenya’s government wants a local to replace the telecom firm’s respected British boss, who has died of cancer. That’s too narrow a remit for an $11 bln outfit which is also big in fintech. But with neighbouring Ethiopia opening its vast market, African expertise is essential.
Airtel debt diet prepares it for Africa price war 28 May 2019 The Indian telecom giant is floating 25% of its African arm in London to help cut debt. The continent’s telecom market is growing quickly but competition is fierce. With less debt Airtel will be better positioned to fight back.
China will outdo U.S. in scramble for Africa 28 Dec 2018 Beijing will cement its position as the leading power on the continent, countering a U.S. pushback. Besides flexing muscles from Djibouti, its first overseas base, China will squeeze U.S. firms out of commercial and mining deals as tensions take on a Cold-War tinge.
East Africa will buck global great rift trend 20 Dec 2018 Twenty-five years after genocide, Rwanda’s economy is motoring sufficiently to need new markets. The potential inclusion of Ethiopia would make East Africa a single market of 250 million people. If it prospers, it would provide a useful counterpoint to global balkanisation.
UK-Africa trade is tiny plaster for Brexit wounds 28 Aug 2018 Prime Minister Theresa May hopes deeper ties with the continent will help cushion the blow of leaving the EU. But UK trade with sub-Saharan Africa is less than 3 pct of what it exchanges with Europe. With Nigeria and South Africa in the doldrums, prospects for growth look slim.
Zambia debt dispute undermines African credit 17 Apr 2018 The copper producer has denied it has dollar debt beyond its $8.7 bln of foreign borrowing. Its vague clarification comes two years after a $3 bln bond scandal in neighbouring Mozambique. Bilateral lending, particularly from China, is blurring the credit picture across Africa.
Barclays faces unfamiliar issue: excess capital 1 Jun 2017 The UK lender is offloading all but 15 pct of its African unit for $2.9 bln after strong demand from investors. The sale should lift its capital ratio above 13 pct. After a year of retrenchment CEO Jes Staley can begin to think about how the slimmed-down bank can reward shareholders.
Barclays has honourable Africa retreat in sight 31 May 2017 The UK lender is offloading a $2 bln stake in its Johannesburg-listed unit as part of its exit from the continent. Political turmoil in South Africa may have interfered with a sale. But a supportive local fund and the robust rand have allowed Barclays to effect an elegant escape.
Ethiopia’s bond plan will test hunt for yield 28 Nov 2014 The Horn of Africa nation plans to issue a debut dollar bond, of reportedly $1 bln. The demand for such frontier market debt, which is at the risky and illiquid end of the sovereign bond spectrum, will show just how adventurous investors have grown in their quest for returns.
Fear is key to Ebola’s economic contagion 18 Aug 2014 The virus ravaging parts of Africa has yet to spread elsewhere. Yet Asia’s SARS crisis in 2003 showed how changes to behaviour can hurt growth and productivity more than an actual disease. Ebola seems harder to catch, but more deadly. That could make for a more pronounced effect.
Kenyan mobile banking innovation is hard to export 7 May 2013 Vodafone’s Indian arm is launching a local version of the service that has been a hit in Kenya. The government’s push to broaden access to banking services means the plan is well-timed. But financial regulations and fierce competition stand in the way of widespread adoption.
Kenya’s next leaders need to avoid spending spree 25 Feb 2013 The priority in next month’s election is to prevent the unrest that followed the 2007 poll. With that caveat, boosting economic growth - now running around 5 pct - requires lower interest rates. That means deficit-narrowing fiscal discipline, not Western-style stimulus.