Market Commentary
Oil prices eased on Thursday amid disappointing economic data from key economies and as investors await a speech by U.S. Federal Reserve Chair Jerome Powell on Friday for clues on interest rates. Brent crude fell 19 cents, or 0.2%, to $83.02 a barrel by 0619 GMT, while U.S. West Texas Intermediate crude dropped 24 cents, or 0.3%, to $78.65 a barrel.
KENYA: Kenya Considers Tapping Phone Calls in Anti-Money Laundering Fight
Kenya’s Parliamentary Committee on Finance is proposing amendments to the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2023, which would allow the tapping of telephone calls and emails of individuals suspected of money laundering and terrorism financing. If approved, the changes would grant state security agencies the authority to access private communications of such suspects. Currently, state agencies lack the legal authorization to tap private communications for these cases. The proposed amendments aim to strengthen Kenya’s efforts against money laundering and terrorism financing, following the enactment of the Proceeds of Crime and Anti-Money Laundering (Amendment) Act last year.
NIGERIA: CBN Tightens Scrutiny on Lenders and Forex to Address Dollar Shortage
Nigeria’s central bank is intensifying its oversight of banks and foreign-exchange bureaus in a bid to alleviate the dollar scarcity that has impacted the naira. The Central Bank of Nigeria, based in Abuja, directed Wema Bank Plc to cease providing naira loans backed by foreign currency, stating that this practice depletes dollar liquidity. The bank granted a deadline of September 7 for compliance. This move follows recent measures to stabilize the naira, including limiting forex bureau transactions within a 2.5% range of the previous day’s official average rate. Doubts persist due to reduced forex reserves, hindering confidence in the naira.
GHANA: Ghana’s IPPs Insist on Government’s Promises Amid Shutdown Threat
Ghana’s Independent Power Producers (IPPs) have clarified that their warning of plant shutdowns hinges on the government’s commitment fulfillment. The IPPs emphasized that their concern centers on operational funding, as maintaining power plants demands substantial resources. Debts owed to the IPPs by the Electricity Company of Ghana (ECG) for June and July were settled, and the ECG affirmed efforts to prevent future arrears. While acknowledging current minimal payments, IPPs anticipate improvement and sustainability. They favor payment plans over debt restructuring and remain focused on assured payment frequencies to maintain operations.
EGYPT: Foreign Investors Vie for Stake in Egypt’s Eastern Company
Chemical Industries Holding Company (CIHC), the state-owned majority shareholder of Egypt’s largest tobacco producer Eastern Company, has received offers from foreign investors to acquire up to 30% of its stake. Japan Tobacco International is reportedly among the interested parties. The move aligns with Egypt’s commitment to the IMF to offer stakes in state-owned firms. CIHC is assessing the offers, aiming to choose the best-suited investor, pending due diligence. The country’s privatization initiative is part of its efforts to address financial imbalances and attract investments. Eastern Company reported a 24% annual increase in net profit, reaching EGP 5.29 billion ($166 million) in the first nine months of FY2022/23