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The Pan-African Economy in Brief: Wednesday, June 26, 2019

MOZAMBIQUE:
The IMF forecasts double-digit economic growth from 2023 onwards:
Mozambique is expected to record double-digit economic growth from 2023, the year in which the consortium led by the Italian ENI group is expected to start producing natural gas in the Rovuma basin, the International Monetary Fund (IMF) estimated on June 21. "In the medium term, growth in the Mozambican economy is expected to grow considerably thanks to revenues from natural gas exploitation," said Ari Aisen, IMF representative in Mozambique, quoted by the Mozambican news agency AIM. "It is important to manage citizens' expectations because collecting revenue for the state coffers will take some time, hence the need for patience," he added...


COTE D’IVOIRE:
The executive wants to attract more young people to cocoa through the common floor price:
In Côte d'Ivoire, the government is betting on a renewed interest in cocoa cultivation among young people through the minimum price of $2,600 per tonne it is currently negotiating with Ghana and industry stakeholders. That is what Bloomberg reports, citing the Ministry of Commerce. According to Souleymane Diarrassouba, in charge of the portfolio, the average age of producers is currently around 50 years due to the preference of young farmers for the cultivation of more profitable speculations such as cashew nuts, rubber, cotton and oil palm. Currently, the guaranteed producer floor price is almost 30% lower than it was three years ago. "The new generation must be attracted to the industry. The more cocoa prices rise, the more farmers will improve their incomes. There is no chocolate without cocoa farmers," says Diarrassouba...


MALI:
Boad releases 25 billion CFA francs for the construction of 1085 social and economic housing units:
The West African Development Bank will finance a project to develop and build socio-economic housing in Mali. A 25 billion CFA franc loan to the Malian government was approved last Thursday by the Development Bank's Board of Directors. The project will develop a 42-hectare site in Samanko, 5km from the capital Bamako, and build 785 social housing units (565 F3 and 220 F4) and 300 economic housing units (175 F3 and 125 F4). A total of 1085 apartments to be leased to the beneficiaries. This support from the institution based in Lomé marks a step forward in the implementation of the 2018-2023 programme of Malian President Ibrahim Boubakar Keita, which aims in particular to build and make available to very modest populations 20,000 social housing units and 10,000 economic units by the end of his second term...


GABON:
The government chooses Attijariwafa Bank for its 100 billion CFA francs sub-regional bond issue:
The Gabonese government has appointed Attijari Securities Central Africa (ASCA), a subsidiary of the Moroccan banking group Attijariwafa Bank, to assist it in carrying out a public offering on the capital market during the second half of 2019, it was learned from sources close to the process. The country wishes to mobilize 100 billion CFA francs and intends to offer an interest rate of 6.25% over a 5-year maturity to investors who commit themselves to it. ASCA's involvement comes within the framework of a mandate to structure, centralize and place the public securities that will be issued...


DRC:
Rawbank's profile negatively impacted by the downgrading of the country's Moody's rating:
The rating agency Moody's downgraded the rating of the Congolese group Rawbank from speculative to very speculative, with negative prospects. This decision does not necessarily stem from a problem with the bank. "This action follows the downgrading of the rating on June 18, 2019, of the Democratic Republic of Congo's (DRC) profile in Caa1, with a negative outlook. It reflects the deterioration of the operating environment in the country as well as the declining capitalisation of Rawbank," the rating document states. Some indicators did not weigh in the bank's favour, according to Moody's experts. Although its liquidity is solid, Rawbank has very quickly expanded its portfolio of customer loans...


KENYA:
The KCB Banking Group Foundation will receive $98 million from MasterCard to support entrepreneurs in Kenya:
KCB Foundation, the social investment arm of the Kenya Commercial Bank Group (KCB) Group, will receive a financial contribution of 10 billion shillings (approximately $98.1 million) from the MasterCard Foundation. These resources will be injected into the 2jiajiri programme, which offers training and accompanies entrepreneurs in the creation and development of their businesses. This funding is part of the Young Africa Works in Kenya initiative, launched by the MasterCard Foundation in partnership with the Kenyan government...