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The Pan-African Economy in Brief : Wednesday, September 11, 2019

Nigeria :

Investors in the dilemma of declining bond and equity gains: "Serious dilemma for fund managers investing in the Nigerian debt and equity markets. The traditional choice between bonds (debt securities) that offer secure and secure income, and equities that confer dividends and market capital gains, is no longer sufficient on its own to make the investment decision. The gains sought by investors on 365-day government bonds, which are a benchmark product in the Nigerian capital market, are on a downward trend. While on January 2, 2019, these securities offered a margin of 16.9% as at July 17, 2019, this indicator was only 12.5%, a decrease of 4.4 percentage points. In the equity segment, it should be noted that the NSE All Share Index, which includes all companies listed on the Lagos Stock Exchange, has posted an impairment loss of around 11.17% since December 31, 2018. In other words, an investment that was made in Nigerian financial market companies would not have brought money to the person who did..."
South Africa :
The government is turning its back on measures to protect the sugar industry: "In South Africa, the government wants to phase out the protective measures applied to the sugar industry, reports the daily Independent Online (IOL). This decision is part of the executive's new strategy to support the competitiveness of the sub-sector by focusing on export promotion instead of tariff protection. As part of this orientation, industry will target new opportunities in the African market through the Continental Free Trade Area (ZLECAf), which is expected to institute trade reforms by July 2020..."
Mauritius :
will deliver 50,000 tonnes of special sugar to China through a Free Trade Agreement: "Mauritius will export 50,000 tonnes of special sugar to China under a free trade agreement between the two countries. According to a statement from the Mauritian Prime Minister's Office, this agreement should open the door to the Chinese market to 8,547 products from the Island. For sugar, the agreement provides for an import duty rate of 15 % to be applied to the quota over a period of 8 years. This strategy of diversifying market opportunities should enable the industry to mitigate the effects of falling demand from its main market, the EU, due to the end of quotas in 2017..."
Burkina Faso :
Burkina Faso suspends the import of sugar and edible oil to protect the local market: "The Burkinabe government announced on Monday the suspension of the issuance of special import authorizations (SIA) for edible oil and sugar, in order to protect the local market following "serious market failures", said the Burkinabe Minister of Trade, Industry and Handicrafts, Harouna Kaboré, in a statement. "This suspension follows various consultations between the department in charge of trade and distributors, with the aim of finding solutions to serious market failures in the products concerned," the press release states..."
Cameroon :
The authorities are beginning to mobilize the populations affected by the Grand Eweng dam (1,800 MW): "In Cameroon, the Minister of Water and Energy, Gaston Eloundou Essomba (photo), has begun a process of mobilizing the local populations around the construction of the Grand Eweng dam. "I have come to raise awareness among the people in the communities that will be affected by the Grand Eweng Dam project. There was a misunderstanding between the project's technical teams and the people," said the manager. He held a working session with representatives of the population and the local authorities. The latter were, in fact, worried about the project on which they had very little information when the studies had already started..."
Mozambique :
The low graphite prices on the Chinese market are driving Syrah to reduce its production: "Syrah Resources, a company active in Balama graphite in Mozambique, announced on Tuesday that it will reduce its production volumes in the fourth quarter of the year. Balama's graphite production will decrease by approximately 5,000 tonnes per month and the company will also conduct a review to reduce its costs. According to the details provided by the company, this decision was taken in response to a significant and sudden drop in the prices of natural flake graphite in China. In the Middle Kingdom, the depreciation of the yuan and concerns about the level of graphite stocks are having an impact on price negotiations and the renewal of sales contracts. "We will focus on improving the quality and consistency of our products to set us apart. While this is a difficult decision, we are confident that this measure is in the shareholders' interest to preserve long-term value," commented CEO Shaun Verner, while the company's share price on the ASX, the Australian stock exchange, fell on the announcement of the information..."