Market Commentary

Oil prices ticked down in Asian trade on Friday as bullish sentiment about Chinese demand and potential Middle Eastern supply disruptions was tempered by uncertainty over U.S. economic data to be released later in the day. Brent futures, which have risen nearly 6% this week, were down 33 cents, or -0.42%, at $78.94 a barrel at 0630 GMT. U.S. West Texas Intermediate (WTI) crude fell by 22 cents, or -0.3%, to $74.15, having gained about 8% this week.

KENYA: Economic gloom as CBK dims 2023 growth outlook
The Central Bank of Kenya (CBK) has downgraded the outlook of Kenya’s economic growth this year even as it warned that things are about to get tougher for Kenyans and businesses. The CBK projects that Kenya’s gross domestic product (GDP) will grow by 5.8 percent, which is a notable drop from the earlier estimate of economic growth of 6.1 percent given by the National Treasury. This means this year is set to be just as tough as last year for most businesses and households

EGYPT: Egypt hike rates b 200bps to tackle inflation.
The Monetary Policy Committee raised the deposit rate by 200 basis points to 18.25% and the lending rate to 19.25%. The jumbo hike in borrowing costs comes as Egyptian food prices hit a record, further squeezing consumers in the North African country of more than 104 million people, where almost half live below or near the poverty line. Overall inflation is at its highest since August 2017. Inflation accelerated faster than expected in February to an annual 31.9%

GHANA: Ghana heads into Q2, 2023 without IMF deal
Ghana has missed its target of securing an IMF bailout in the first quarter of 2023. The debt-distressed country is still negotiating with its external creditors (Eurobond holders and bilateral creditors) to restructure its US$49 billion debt. Also, the country’s Parliament is dragging its feet to approve three revenue mobilisation bills that are condition precedent to getting an IMF executive board approval.

NIGERIA: Hope rises for Nigeria’s 2023 budget as Bonny Light price rebounds
Barely a week after an unprecedented drop, the price of Nigeria’s Bonny Light has recorded a rebound. From $73.87 per barrel recorded last week, Bonny Light jumped to $78.10 per barrel this week, raising hope for the execution of the country’s 2023 budget. The current price is over $3 more than the $75 per barrel budget benchmark, just as last week’s price slump was $1.13 below the benchmark