Market Commentary
Oil prices fell on Monday, erasing gains from Friday as renewed concerns over waning demand in the United States and China, coupled with mixed signals from the U.S. Federal Reserve, dented market sentiment. Brent crude futures for January were down 61 cents, or 0.75%, at $80.82 a barrel at 0800 GMT, while the U.S. West Texas Intermediate (WTI) crude futures for December were at $76.56, down 61 cents, or 0.79%.
KENYA: Kenya Records KSh 684 Billion Revenue Surge in 4 Months Under Finance Act 2023
President William Ruto’s administration has seen a substantial KSh 684 billion increase in tax revenue within four months following the implementation of the Finance Act 2023. The National Treasury reports a notable 12.63% surge in revenue to KSh 684.75 billion by October 2023. Ruto’s revenue enhancement plans involve introducing new measures such as a housing levy, doubled Value Added Tax (VAT), fuel adjustments, export and investment promotion levies, and a digital assets tax. The move aims to support the ambitious KSh 3.93 trillion budget for 2023/24.
NIGERIA: Nigeria, Saudi Arabia Ink MoU for Oil and Gas Collaboration
The Nigerian government has formalized a Memorandum of Understanding (MoU) with Saudi Arabia, signaling a commitment to collaborative efforts in the oil and gas sector. The agreement, signed by Nigeria’s Minister for State Petroleum Resources, Senator Heineken Lokpobiri, and Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, aims to establish a robust framework for cooperation. Saudi Arabia’s advanced technologies in oil and gas are expected to enhance Nigeria’s energy operations, boost production, and attract foreign direct investment, fostering economic growth and development.
GHANA: COCOBOD Navigates Financing Challenges for Cocoa Purchases
In the face of delays securing the annual syndicated loan crucial for cocoa bean purchases, COCOBOD remains optimistic about securing US $800 million by month-end. The Board adopts a dual financing approach for the 2023/2024 Crop Season, aiming to diversify funding sources. Initial challenges with the expected $800 million loan from a syndicate led to reliance on non-collateralized cocoa sales proceeds. COCOBOD, assuring stakeholders, reveals ongoing efforts to secure the syndicated loan, with firm responses from bankers and parliamentary consideration underway for ample funding.
EGYPT: Egypt Secures $500 Million Development Finance for Vital Projects
Egypt’s Ministry of Finance has successfully secured $500 million in financing from Deutsche Bank, ABC (Bahrain), and Dhaman (Kuwait). This financial boost is earmarked for crucial educational and health projects, highlighting Egypt’s commitment to diversifying financial resources. Notably, this marks the Egyptian government’s first utilization of development finance backed by a multilateral institution like Dhaman, offering low-cost financing. Aligned with efforts to address a $17 billion financing gap through 2026, this move supports Egypt’s fiscal goals, including budget deficit funding and managing a $165.3 billion external debt.
TUNISIA: Stock Market Rebounds with 0.38% Gain and Surge in Capital Mobilization
The stock market rebounded with a 0.38% gain in its flagship index, reaching 8450.72 points during the week of November 6 to 10, 2023. Mobilizing a significant 23.6 million dinars, the market recorded a 4.2% annual performance. GIF FILTER emerged as the top gainer, surging 13.79%, while LILAS attracted the most capital, totaling 17.5 MD. However, ELECTROSTAR underperformed with a 13.8% stock price drop. The rebound, marked by increased investor confidence, saw key stocks advancing and a robust capital flow