Eurobond issuance in Sub-Saharan Africa was relatively quiet in the second half of 2016, owing partially to the demand by the market for higher yields, according to S&P Global Ratings.
Markets & Industry News
For the first time since December 2009, South African value stocks have pulled ahead of growth stocks when measured over a one-year period, according to Andrew Dittberner, CIO at Cannon Asset Managers.
Sub-Saharan African micro and SME finance markets are expected to grow by 5-10% next year, according to the newly published responsAbility ‘Micro and SME Finance Market Outlook 2017’.
Exotix Partners has added Ghana’s and Cameroon’s sovereign bonds as well as the Guaranty Trust Bank bond to its Top-5 picks, while removing Kenya 24s and Nigerian T-bills.
For portfolio investors, the opportunities are gradually emerging in Tanzania, East Africa’s fastest-growing nation, according to Stuart Theobald, Chairman of Intellidex and Imara Africa Advisors Contributing Analyst.
The size of the local currency debt market is skewed towards Nigeria and Egypt, but many smaller markets are readily accessible to foreign investors, according to Nick Ndiritu, Portfolio Manager at Allan Gray.
Vermillion, a Carlyle Group’s commodities hedge fund, has lost $400m it invested last year in Societe Anonyme Marocaine de l’Industrie du Raffinage (Samir), a Moroccan oil-refinery.
Sub-Saharan Africa represents a $783bn investment opportunity—particularly for clean energy in Cote d’Ivoire, Kenya, Nigeria, and South Africa, according to a study by IFC.
The Central Bank of Egypt (CBE) has moved its exchange rate regime to a managed float, setting the Egyptian pound to E£13/$ and annoucning its intention to allow the exchange rate to converge to a market price at the upcoming auction.
Despite a local election outcome widely accepted to be progressive for the country, consumer and business confidence in South Africa remains deeply depressed, according to Old Mutual Investment Group (OMIG).
IFC, a member of the World Bank Group, and Kenya’s Capital Markets Authority (CMA) have signed an agreement to strengthen corporate governance and to position Kenyan firms to be more competitive.
In South Africa, 2016 saw less inflows into hedge funds, which may be due to the change in regulation, according to Eugene Visagie, Head of Hedge Fund Investments at Novare.
The Bourse Régionale des Valeurs Mobilières (BRVM) has become the first stock market for Islamic Finance in Africa with five sukuk listings issued by Côte d'Ivoire, Senegal and Togo, amounting to 766bn FCFA ($1.3bn).
Valuations in South Africa still favor local bonds, despite political uncertainty and fears of downgrade, according to Old Mutual Multi-Managers (OMMM), a fully integrated, advice-led wealth management business.