Economy
18 African Countries Grew GDP Above 5% in 2017—AfDB
By Modupe Gbadeyanka
President of the African Development Bank Group (AfDB), Mr Akinwumi Adesina, has revealed that in 2017, the average GDP growth in Africa was 3.6 percent, up from 2.2 percent in 2016.
According to him, last year, 18 African countries grew above 5 percent in 2017, and 37 others above 3 percent.
Mr Adesina further disclosed the average GDP growth is projected to accelerate to 4.1 percent in 2018 and 2019.
The AfDB boss rolled out these figures when the bank hosted the annual luncheon of diplomats accredited to Côte d’Ivoire in Abidjan on Tuesday.
During the event, he urged the bank’s member countries to contribute to the 7th General Capital Increase to enable the institution to realise its development objectives.
Welcoming the diplomats on behalf of the Board of Directors, management and staff of the Bank Group, Mr Adesina shared perspectives on the performance of African economies, updated them on the institution’s activities and highlighted emerging economic issues for the Bank and the continent.
“The African Development Bank, your Bank, is reforming, innovating, leading and delivering more for Africa than ever before.
“With the strong support for a General Capital Increase by our Board of Directors, Governors of the Bank, and you, the Ambassadors representing our shareholder countries, Africa will indeed experience a much brighter and impactful future,” he said.
Mr Adesina said the continent remains resilient to global economic headwinds and climate shocks as related by the Bank’s 2018 Africa Economic Outlook published in Abidjan on January 17, 2018.
Bank makes impressive development impacts
In 2017, the Bank achieved impressive development impacts. Its ‘Light up and power Africa’ High 5 reached 4.4 million people with access to electricity.
Its ‘Feed Africa’ goal reached 8.5 million Africans with access to improved agriculture technologies, while its ‘Integrate Africa’ provided 14 million Africans with improved access to transport and the ‘Industrialize Africa’ provided 210,000 small businesses with access to financial services.
Also, the lender’s ‘Improving the quality of life’ High 5 provided 8.3 million Africans with improved access to water and sanitation.
Mr Adesina also shared important landmarks on the bank’s ongoing reforms and achievements over the past two years: achieving its highest annual disbursement ever in its history at $7.67 billion while maintaining its Triple ‘A’ rating by the major global rating agencies; investing $1.39 billion in 31 operations in the energy sector in 23 countries representing a 30 percent increase over 2017; launching its largest bond transaction, with a $2.5 billion 3-year global benchmark, followed by its largest ever 5-year global benchmark for $2 billion; and continues to grow its income, reversing a two-year declining trend; and recording a rise in 2016 in its net operating income to $556.6 million, which shot up to $855 million in 2017, and increased by almost 54 percent over 2016, and 73 percent increase over 2015.
Currently, the Bank is spearheading the development of the Desert-to-Power initiative to harness electricity from the sun all across the Sahel, designed to generate 10,000 MW of power, connect 250 million people to electricity, including providing 75 million people with off-grid systems.
A generous General Capital Increase will enable Bank to do more
The Bank is “reforming, changing, delivering and leading,” through the strong support it receives from it member countries, Mr Adesina said, adding that such support will be most needed during the General Capital Increase to help the Bank do more for Africa.
“At a time that we need to ramp up support to Africa for the SDGs, the Bank needs more resources through a General Capital Increase (GCI). The message could not have been heard louder than when the Ministers and Governors of the Bank from West and Central Africa came to the Bank recently. They unanimously supported the General Capital Increase for the Bank,” he said.
“The support of all shareholders will be crucial for the General Capital Increase of the Bank. The Bank should do more for Africa and we are working extremely hard to revamp the Bank, and put it in a much stronger position, with more highly capable staff and institutional capacity to deliver more … better and faster. Our ability to deliver in the past and now is a good indication that you can depend on us to deliver more in the future.”
Johannesburg to host Africa Investment Forum in November 2018
To mobilize African and global pension funds, sovereign wealth funds and institutional investors, to invest in Africa, the Bank has launched the Africa Investment Forum (AIF) to be held November 7-9 in Johannesburg, South Africa.
The transactional forum is expected to become Africa’s premier investment marketplace, Mr Adesina said, noting that several peer institutions have indicated their interest in participating in what could become Africa’s largest private-sector investment accelerator.
In his response, the Dean of the Diplomatic Corps, Apostolic Nuncio to Côte d’Ivoire, Monsignor Joseph Spitieri, congratulated Mr Adesina on his 58th birthday and commended the Bank for helping pull people out of poverty.
“The success of your strategy encapsulated in the High 5s is testimony to your commitment to help people in Africa and reduce poverty,” the cleric said.
“We wish the Bank success in its endeavours to improve the lot of the most deprived people in Africa,” he added.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 2.30 per cent, spurring the NASD Security Index (NSI) to close higher by 96.61 points to 4,296.34 points from 4,199.73 points, and raising the market capitalisation by N57.99 billion to N2.578 trillion from N2.521 trillion.
The market was up yesterday despite a lower activity level, as the volume of securities traded slumped by 94.7 per cent to 1.3 million units from the previous 23.9 million units. The value of securities slipped by 57.2 per cent to N29.2 million from the preceding session’s N68.2 million, while the number of deals executed by market participants increased by 6.7 per cent to 32 deals from the 30 deals carried out on Thursday.
At the close of transactions, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with a turnover of 3.4 billion units worth N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion in trades, and Central Securities Clearing System (CSCS) Plc with 70.8 million units traded for N4.9 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
During the trading day, there were three price gainers and two price losers, led by Afriland Properties Plc, which shed N1.48 to sell at N15.17 per share compared with the previous session’s N16.65 per share, and Food Concepts Plc, which slid by 7 Kobo to close at N2.69 per unit versus N2.76 per unit.
Conversely, FrieslandCampina Wamco Nigeria Plc improved its value by N9.50 to trade at N150.00 per share compared with Thursday’s closing price of N140.50 per share, CSCS Plc went up by N7.95 to N89.65 per unit from N81.70 per unit, and 11 Plc soared by N6.94 to N206.95 per share from N200.01 per share.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited lost its footing by 0.07 per cent on Friday as a result of renewed profit-taking by investors.
The fall happened after Thomas Wyatt and Guinness Nigeria led other price losers group comprising 27 stocks at the market yesterday due to selling pressure.
Thomas Wyatt Nigeria shed 10.00 per cent to quote at N2.70, Guinness Nigeria drowned by 9.99 per cent to close at N329.00, Ikeja Hotel slipped by 9.96 per cent to N42.50, Zichis shed 9.94 per cent to trade at N26.37, and McNichols depreciated by 9.91 per cent to N5.00.
On the flip side, International Breweries gained 9.92 per cent to finish at N13.30, NEM Insurance appreciated by 9.61 per cent to N27.95, Jaiz Bank grew by 6.36 per cent to N9.20, UPDC expanded by 6.33 per cent to N4.20, and Livestock Feeds increased by 6.32 per cent to N9.25.
Business Post reports that investor sentiment remained bullish despite the loss recorded during the session, as there were 27 price decliners and 30 price advancers, representing a positive market breadth index.
Yesterday, market participants transacted 441.3 million equities for N19.4 billion in 44,938 deals compared with the 1.7 billion equities worth N112.0 billion traded in 44,780 deals a day earlier. This showed that the trading volume contracted by 74.04 per cent, the trading value declined by 82.68 per cent, and an uptick in the number of deals by 0.35 per cent.
Access Holdings led the activity chart on Friday after selling 40.2 million shares valued at N1.0 billion, Sterling Holdco traded 30.3 million stocks worth N228.8 million, Fidelity Bank sold 26.3 million equities for N505.6 million, Zenith Bank transacted 22.3 million shares valued at N2.5 billion, and First Holdco exchanged 19.0 million stocks worth N1.3 billion.
During the last trading session of the week, the consumer goods sector rose by 0.49 per cent, the insurance counter increased by 0.06 per cent, and the industrial goods index closed flat, while the banking and energy indices lost 0.78 per cent and 0.52 per cent, respectively.
As a result, the All-Share Index (ASI) shrank by 159.97 points to 243,798.76 points from 243,958.73 points, and the market capitalisation moderated by N103 billion to N156.445 trillion from N156.548 trillion.
By Adedapo Adesanya
The Naira performed poorly against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 10, losing N1.19 or 0.09 per cent to close at N1,379.62/$1, in contrast to Thursday’s exchange rate of N1,378.43/$1.
It also depreciated against the Pound Sterling in the official market during the trading session by N3.80 to trade at N1,850.62/£1 compared with the previous day’s N1,846.82/£1, but gained 43 Kobo on the Euro to sell at N1,575.66/€1 versus the preceding day’s N1,576.09/€1.
At the GTBank FX desk, the Naira weakened against the Dollar yesterday by N1 to quote at N1,386/$1 compared with the previous session’s N1,835/$1, and maintained stability in the black market at N1.400/$1.
Data showed that interbank FX turnover fell by about 10 per cent on Friday to $71.044 million from $78.708 million the previous day. Also, interbank forex market deals reduced to 87 from 106 trades executed at the window on Thursday.
The total forex inflows into the Nigerian foreign exchange market have been fluctuating, with about $1 billion in total inflows reported last week.
Total FX inflows settled at $0.99 billion last week, according to the research subsidiary of Coronation Merchant Bank, with Foreign Portfolio Investors (FPIs) accounting for the largest share at 35.81 per cent, or $0.35 billion.
Exporters accounted for 28.72 per cent or $0.28 billion, while the CBN contributed 11.15 per cent or $0.11 billion. Non-Bank Corporations also made up a notable 10.92 per cent of total inflows, reflecting continued support from both market-driven and official sources.
In the cryptocurrency market, Bitcoin rose above $64,100, retesting the price level that rejected it on Monday, with a clean break above, opening the path toward the June 15 high of $67,250. It gained 0.3 per cent to sell at $64,114.16.
Ethereum (ETH) appreciated by 1.6 per cent to $1,798.81, Dogecoin (DOGE) grew by 0.6 per cent to $0.0742, Binance Coin (BNB) added 0.6 per cent to sell for $576.47, Cardano (ADA) also grew by 0.6 per cent to $0.1674, and Ripple (XRP) jumped by 0.4 per cent to $1.10.
But Solana (SOL) lost 1.1 per cent to settle at $77.95, and TRON (TRX) declined by 0.2 per cent to $0.3296, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
