Market Commentary

Oil prices were set to snap a two-week losing streak as they rose for a fourth consecutive session on Friday due to tightening supplies and expectations that the OPEC+ group of oil producers would extend output cuts to the end of the year. The U.S. West Texas Intermediate crude (WTI) was up 21 cents, or 0.3%, at $83.84 a barrel, while Brent crude was up 26 cents, also 0.3%, at $87.09 a barrel as of 0605 GMT. WTI has risen over 5% during the week, while Brent was up about 3%

NIGERIA: Nigerian Central Bank Probes $1 Billion Counterfeit Currency Scheme
The Central Bank of Nigeria (CBN) has initiated an investigation into a reported $1 billion counterfeit currency operation involving a Nigerian and several foreign nationals. Dated August 23, 2023, a confidential memo was distributed to banks and financial institutions, shedding light on the situation. The forged US dollars were allegedly intended for the African market. Turkish authorities apprehended a Nigerian individual and four others in connection with the counterfeit currency ring. The CBN directive requires financial institutions to conduct database searches, identify accounts or assets linked to the suspects, and report any suspicious transactions to the Nigerian Financial Intelligence Unit (NFIU).

GHANA: Ghana’s Minerals Income Investment Fund Surges to $1 Billion in Just 18 Months
Despite global economic challenges, Ghana’s Minerals Income Investment Fund (MIIF) has experienced rapid growth, increasing its assets under management (AUM) from around $125 million in October 2021 to an anticipated $1 billion by January 2024. This remarkable achievement is attributed to strategic initiatives such as expanding the royalties base, investments in the gold sector, and effective treasury management. MIIF, established in 2018 by President Nana Addo Dankwa Akufo Addo, aims to manage Ghana’s equity interests in mining companies, invest royalties and dividends, and reduce the nation’s exposure to fluctuations in minerals income. The fund’s success aligns with the goal of benefiting the Ghanaian people and enhancing the mining industry’s long-term prosperity.

KENYA: Kenya Raises Taxes on Used Car Imports to Generate More Revenue
The Kenya Revenue Authority (KRA) has announced a tax increase for used car importers by reducing the maximum depreciation rate from 70% to 65% of a vehicle’s value. Effective September 1, 2023, this directive will raise taxes by over 14% for vehicles manufactured in 2016, which are primarily imported due to Kenya’s eight-year age limit on used cars. The move is in line with other countries in the East African Community trading bloc and will impact import duty, excise duty, and value-added tax calculations, potentially leading to higher costs for buyers and passing on additional expenses to consumers.

ANGOLA: Angola-US Trade Plummets Over 90% Since 2008
Angola’s trade with the United States has plummeted from $20.9 billion in 2008 to just $2.3 billion today, a staggering decline of over 90%, according to Pedro Godinho, President of AmCham-Angola. Most of this trade was tied to oil exports, but the reasons for the sharp drop remain unclear. Godinho stressed the need to improve Angola’s business environment, advocating for faster and more streamlined entry processes for potential investors, including visa exemptions. AmCham-Angola, which has facilitated the presence of 60 American companies in various sectors, intends to continue fostering economic, cultural, and academic ties between the two nations