Nigeria

Carlyle’s Nigerian banking bet is down but not out

18 December 2018READY SOON

The U.S. private-equity firm’s stake in Diamond Bank is worth only a fraction of what it paid after the ailing Lagos-based firm agreed to sell itself to Access Bank. A likely rights issue may worsen the financial pain. Carlyle's consolation is a slice of Nigeria’s biggest lender.

MTN’s $8 bln Nigeria spat requires Goldilocks fix

26 November 2018

The African phone giant is close to ending a row with the West African nation over dividends. A face-saving deal will repair ties in its biggest market. After protesting its innocence, a reported $800 mln settlement looks excessive. But too little will keep MTN in Abuja’s sights.

Nigeria bank reform offers olive branch for MTN

19 October 2018

The continent’s most populous nation has invited telecom groups to launch mobile payment services. South African operator MTN could be a big winner. The prospect of a lucrative new market gives it a good reason to end its $10 billion dividend and tax feud with the government.

Bad time for Nigeria to bash foreign investors

20 September 2018

Outsiders pumped $15 bln into the African country’s financial markets in the last year, helping its oil-dependent economy. Though crude receipts are healthy, emerging market nerves are curbing appetite for its debt. High-profile attacks on HSBC and telecom group MTN won’t help.

Prem Watsa’s Africa punt may avoid Greek tragedy

5 September 2018

The Canadian investor owns 41 pct of African bank Atlas Mara. Given Bob Diamond’s outfit just made a half-year operating loss, the risk is a re-run of Watsa’s awry Greek bank bet. Still, stabilising commodity prices means there’s more chance Watsa has bought in at the bottom.

Nigerian problems cast doubt over MTN payout

30 August 2018

The country’s central bank says the mobile phone group’s local unit illegally paid $8.1 bln to its South African parent. Though MTN denies wrongdoing, its shares are down more than a fifth. Blocked payments from its most lucrative market would threaten MTN’s punchy dividend plan.

UK-Africa trade is tiny plaster for Brexit wounds

28 August 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.

Nigeria’s FX reserve fetish is bad for growth

30 April 2018

President Muhammadu Buhari is vaunting a rapid rise in foreign exchange reserves. A decent war chest is worth having in case the naira needs defending. But accumulating a vast pile of dollars will deprive the economy of the hard currency it needs to keep growing and create jobs.

Heineken’s number two status brings marginal costs

12 February 2018

The Dutch brewer is one of the few global groups still increasing beer volumes. However, acquisitions will weigh on operating margins in 2018. Heineken needs to invest in its new Brazilian brands to take on market leader AB Inbev. That limits the scope for boosting profitability.

The Exchange: Marcus Ruiz Evans

8 December 2017

The president of Yes California leads a campaign arguing that the Golden State should become an independent country – an idea increasingly referred to as Calexit. He explains why secession would be good for the state’s economy and how he’ll get the rest of the nation to buy in.

Iran’s upper hand in OPEC could be fleeting

28 September 2016

The Islamic Republic's resistance to an oil deal leaves its rival Saudi Arabia stuck with low prices. Yet that is pushing Riyadh to launch necessary economic reforms, which should make the kingdom more competitive. Iran, despite its current rapid growth, risks falling behind.

Emerging market fans get South Africa wake-up call

25 August 2016

The rand has slumped since Finance Minister Pravin Gordhan was ordered to report to a special police unit. Falling stocks and bonds are a timely reality check for money managers who have been lured back to emerging markets. An indiscriminate hunt for yield generally ends badly.

LafargeHolcim mega-merger gets to first base

5 August 2016

The world's largest cement group has reaffirmed EBITDA guidance for this year. LafargeHolcim's first year has been fraught, but synergies are coming through. Still, given the union's troubled markets, the real challenge is sustainable topline growth.

Nigeria’s problems defy central bank fixes

28 July 2016

A hefty rate hike was a fair response to a slump in the naira that’s fuelling inflation. Yet this is unlikely to lure much foreign money back to Africa’s biggest economy. Its political, trade, and fiscal misfortunes are too pernicious for even yield-starved investors to overlook.

UK’s own corruption safeguards less than fantastic

11 May 2016

The prime minister’s description of Nigeria and Afghanistan as “fantastically corrupt” has some basis in global graft indices. And Britain talks a good game on anti-corruption. But its recent adoption of US-style “deferred prosecution agreements” suggests no room for complacency.

Oil flirting with the $20s gives OPEC cause to cut

12 January 2016

That bleak outlook for oil is gaining traction among analysts. Such bearish predictions may prove correct unless bickering OPEC puts aside its differences and agrees to deep cuts. But for that to happen, Russia and other producers outside the cartel will have to play ball.

Nigeria’s democratic change is a real positive

1 April 2015

Africa’s biggest economy is set for its first peaceful transfer of power. Election winner Muhammadu Buhari, a 1980s junta leader, will find ruling harder now. Meaningful reform will take years. Still, better governance is good news for the populace and outside investors alike. 

Current account is key Africa factor in 2015

2 January 2015

Rapid African growth is likely to continue. But too much spending and borrowing has led many countries into trade deficits. As lenders become more discriminating, the state of the balance of payments, along with freedom from Ebola, will become keys to continued growth.

Fear is key to Ebola’s economic contagion

18 August 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.

Review: Hustling helps Africa’s partial success

17 April 2014

Dayo Olopade’s “The Bright Continent” describes “kanju,” the hustling, striving and rule-breaking that make modern Africa work. The canny invisible hand can outwit the dead hand of corrupt bureaucracy. Sadly kanju makes the continent a tough place to do fully organized business.