News & Analysis: Financial markets

It’s way past midnight for the South Africa project

“The coronavirus is mostly to blame for the recent collapse, the deterioration in SA’s economic and fiscal strength over the past decade is not the result of external shocks but the government’s failure to change its approach to managing the economy.”

via Financial Mail

East Africa: COVID-19 invades banks, slows down earnings

“Banks’ performance was largely impacted by increased provision on loans and advances in the wake of increased risk of credit default associated with the COVID-19 pandemic.”

via The East African

Zambia heads toward Africa’s first post-COVID default as debt deadlines loom

“The clock is ticking down on Africa’s first post-COVID sovereign default, as Eurobond holders wait to see whether Zambia will make an overdue debt payment while the government hopes creditors have granted it a payment deferral.”

via Reuters

Zambia Nears Default With Bondholders Set to Refuse Relief

“A key bondholder group is set to reject Zambia’s request for an interest-payment holiday, putting the country on course to become the first African sovereign defaulter since the onset of the coronavirus pandemic.”

via Bloomberg

Foreigners pull $11m from NSE counters over COVID-19 jitters

“Foreign investors on Nairobi Securities Exchange turned net sellers in October, withdrawing Ksh1.13 billion ($11.3 million) on increased risk aversion due to a surge in COVID-19 infections and deaths, halting two months of net buying.”

via The East African

Retail in COVID-19 times: innovation, e-commerce, and scaling successfully

“Indeed, it seems quite evident that companies that invest courageously and timely in pivoting their businesses toward the behavioural changes can capture market shares and emerge as market leaders post-pandemic.”

via BFT Online

Impact of COVID-19 on financial stability in Africa

“COVID-19 has been very damaging to global equity and debt markets, especially in developing markets with riskier assets. The financial panic was particularly acute in Africa leading to an abrupt decline in commodity prices and large foreign financial outflows coupled with economic lockdowns.”

via SAIIA

Namibia: Gov’t in deeper debt ditch

“The review was not an additional or new budget, but a reconsideration of spending priorities and a reallocation of funds to speak to current needs following the tabling of the government’s budget for the 2020/21 financial year in May. Shiimi said the N$72,8-billion budget as presented in May was tabled amid extreme uncertainty due to the COVID-19 pandemic and when its full effect on the economy and public finances was still unknown.”

via The Namibian

Africa: Economic Recovery and Transformation

How can African countries “build forward,” not build back, after COVID-19? Our panel of experts shares their thoughts on creating more resilient and more prosperous economies across the continent.

via Milken Institute

Protectionism in Africa Raises Concern Over Continent’s Free Trade Deal

“Protectionism remains the name of the game for West Africa’s economic powerhouses, whose governments are preoccupied with overcoming the devastation wrought by the coronavirus.”

via Bloomberg