Economy
Rwanda’s Economic Performance Remains Strong—IMF
By Modupe Gbadeyanka
An International Monetary Fund (IMF) team, led by Laure Redifer, visited Kigali from October 19-November 2, 2016 to carry out discussions with the Rwandan authorities on the sixth review of their economic and financial program supported by the IMF’s Policy Support Instrument (PSI), and the first review of policies supported by the IMF’s Stand-by Credit Facility (SCF).
At the end of the review, Ms Redifer rated the country’s economic performance strong, with a GDP growth of 6.5 percent in the first half of 2016.
“The IMF team reached staff-level agreement with the government, subject to approval by IMF Management and the Executive Board, on policies that could support completion of the sixth and first reviews of Rwanda’s PSI- and SCF-supported programs, respectively. The Executive Board is scheduled to consider the reviews in January 2017.
“Rwanda’s economic performance remains strong, with GDP growth of 6.5 percent in the first half of 2016. Growth projections for the year remain at 6 percent, driven by services activity, with somewhat lower growth in agriculture due to the recent drought, and a contraction in manufacturing/construction following the end of a recent investment boom. 12-month consumer price inflation has risen in recent months to about 6 percent, due mainly to higher food prices and, to a lesser extent, higher import prices following recent depreciation of the Rwandan franc,” the IMF report said.
“The main near-term objective of the current programs is to respond to adverse global developments, most notably commodity prices, which has led to growing external imbalances, resulting in pressure on the Rwandan franc and the banking system’s foreign exchange reserves,” the body explained.
It said, “To address external imbalances, short term adjustment policies have been put in place, comprised of: continued exchange rate adjustment, resulting in Rwandan franc depreciation of about 9 percent so far in 2016; modest containment of new public spending to protect priority spending while avoiding a spike in the fiscal deficit despite recent shortfalls of external financing; and a more prudent monetary policy stance, consistent with less expansive private sector credit growth. IMF staff agreed with the government’s assessment that longer term policies should help restore external sustainability. These include accelerating policies to support larger and more diverse exports and promoting domestic production of certain products currently imported, through the recent ‘Made in Rwanda’ campaign.”
The IMF noted that, “Performance under the program has been strong, with almost all program targets set through end-June 2016 being achieved. Nascent signs suggest that adjustment policies are proving successful at reducing the trade deficit for goods and services, further abetted by the recent completion of several large public investment projects.
“Although these developments are likely to contain growth at a still-robust 6 percent through 2017, by reducing external imbalances they should help maintain official foreign exchange reserves coverage at adequate levels.
“IMF staff welcomes the early and decisive actions already taken by the government, which will help to avoid a more serious situation. These policies should thereby help safeguard medium term growth prospects — around 7 percent –by avoiding potentially harsher adjustment policies that are more disruptive to growth. Depending upon weather and agriculture, inflation is expected to get back toward the government’s medium term 5 percent target.
“To further support program objectives, the government plans to implement measures aimed at deepening financial market activity and improving effectiveness of monetary policy are welcomed. Moreover, measures to strengthening domestic revenue collection and enhance budget execution reporting for the purposes of budgetary planning should be beneficial.”
Also, it was stated that the mission met with Minister of Finance and Economic Planning, Claver Gatete, Governor of the National Bank of Rwanda, John Rwangombwa, Minister of Trade, Industry and East African Community Affairs, François Kanimba, Minister of Gender and Family Promotion, Esperance Nyirasafari, Minister of Infrastructure, James Musoni, Members of the Parliament Budget Commission, and other senior government officials, private sector representatives, and development partners. The team thanks the various interlocutors for the collaborative and candid discussions.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited kicked off the week on a positive note after it closed higher by 0.58 per cent on Monday amid sustained buying pressure.
The stock market was bullish as a result of bargain-hunting activities across the key sectors of the bourse, with the energy index growing by 1.49 per cent.
Further, the insurance space expanded by 0.88 per cent, the banking counter improved by 0.86 per cent, the industrial goods sector gained 0.81 per cent, the commodity segment soared by 0.79 per cent, and the consumer goods landscape advanced by 0.57 per cent.
Consequently, the All-Share Index (ASI) went up by 946.61 points to 163,244.69 points from 162,298.08 points and the market capitalisation surged by N745 billion to N104.521 trillion from N103.776 trillion.
The market breadth index of Customs Street was positive yesterday with 49 price gainers and 20 price losers, representing a strong investor sentiment.
The quintet of eTranzact, UPDC, McNichols, Red Star Express and RT Briscoe led the gainers’ chart during the session after chalking up 10.00 per cent each to sell for N16.50, N5.50, N6.05, N11.55, and N3.96, respectively.
However, Champion Breweries topped the losers’ table after it shed 8.51 per cent to quote at N15.05, Eunisell shrank by 8.01 per cent to N156.20, Ikeja Hotel crumbled by 8.00 per cent to N36.80, Guinea Insurance depreciated by 7.30 per cent to N1.27, and Omatek moderated by 3.13 per cent to N1.24.
The activity chart had Sovereign Trust Insurance on top after a turnover of 307.5 million shares valued at N1.0 billion, Fidelity Bank followed with 158.4 million equities sold for N3.1 billion, Linkage Assurance traded 118.7 million stocks worth N213.9 million, Mutual Benefits exchanged 31.5 million shares for N130.4 million, and Lasaco Assurance transacted 31.0 million stocks valued at N79.6 million.
At the close of trades, a total of 1.2 billion equities worth N19.2 billion exchanged hands in 59,359 deals versus the 624.1 million equities valued at N18.5 billion traded in 43,816 deals last Friday, showing a spike in the trading volume, value and number of deals by 92.28 per cent, 3.78 per cent, and 35.47 per cent apiece.
By Adedapo Adesanya
Oil prices rose on Monday amid worries that Iran’s exports could decline as the sanctioned member of the Organisation of the Petroleum Exporting Countries (OPEC) cracked down on anti-government demonstrations.
Brent futures increased by 53 cents or 0.8 per cent to $63.87 a barrel and the US West Texas Intermediate (WTI) futures expanded by 38 cents or 0.6 per cent to $59.50 per barrel.
Iran said it was communicating with the US government as President Donald Trump weighed responses to a deadly crackdown on nationwide protests, among the stiffest challenges to clerical rule since the 1979 Islamic Revolution.
On Sunday, the US president said officials may meet Iranian officials. He also threatened possible military action over lethal violence against protesters.
Iran has the world’s fourth-largest proven oil reserves, with around 9 per cent of the global total, coming only behind Venezuela, Saudi Arabia, and Canada. It also has the second-largest proven natural gas reserves, with 17 per cent of the global share, and is the third-largest crude producer and fourth-largest exporter within OPEC.
In recent months, Iran has produced record levels of oil, even in the face of US sanctions on its energy exports and the bombings conducted by Israel on its capital.
Despite the ongoing sanctions, Iran has gradually built up its output once again, from around 2.9 million barrels per day in 2019 to between 3.2 and 4 million barrels per day in 2024, depending on estimates.
Capping gains were expectations that supplies could rise from Venezuela, another sanctioned member of OPEC as it is expected to resume oil exports soon following the ouster of President Nicolas Maduro.
President Trump said last week the government in the South American country was set to hand over as much as 50 million barrels of sanctioned oil to the US.
Reuters reported that oil companies have been racing to find tankers and prepare operations to ship the crude safely.
Investors are also watching the risk of disruptions in supply in two other OPEC allies – Russia and Azerbaijan – as Ukraine’s attacks have targeted Russian energy facilities while the country faces prospects of tougher US sanctions. In Azerbaijan oil exports dropped to 23.1 million tonnes in 2025 from 24.4 million tonnes in 2024.
Market players are also looking at developments with US interest rates and the Federal Reserve after the Trump administration opened a criminal investigation into the head of the US central bank, Mr Jerome Powell.
The Federal Reserve chair called the move a “pretext” to influence interest rates, a point that the US president has always hammered upon.
Lower interest rates could boost economic growth and oil demand by reducing borrowing costs, but could hinder the central bank’s efforts to control inflation.
By Aduragbemi Omiyale
The N21.5 billion rights issue of Eterna Plc has commenced, with shareholders encouraged to participate in the exercise through the NGX Invest platform.
The rights issue began today, Monday, January 12, 2026, and is expected to close on Wednesday, February 18, 2026, a notice signed by the company secretary, Mr David Edet, disclosed.
Proceeds from the exercise will be deployed to support several strategic initiatives, including the expansion of Eterna’s retail network, upgrading of its lubricant blending plant, enhancement of LPG retail assets, acquisition of commercial delivery assets, expansion of aviation fuelling operations, and investments in ESG-related projects aligned with the company’s sustainability objectives.
Business Post reports that a total of 978,108,485 ordinary shares of 50 Kobo each are available for grabs at the price of N22.00 each.
The stocks are being offered to existing shareholders on the basis of three new ordinary shares for every four ordinary shares held as of November 27, 2025.
Apart from buying equities of the rights issue via the NGX Invest platform, shareholders can also purchase by completing the paper participation form.
However, completed participation forms, together with payment or evidence of payment for the full amount payable, must be submitted no later than Wednesday, February 18, 2026, to any of the issuing houses or receiving agents listed in the rights circular.
The rights issue provides existing shareholders with the opportunity to increase their equity holdings in the organisation, thereby reinforcing their participation in and support for Eterna’s long-term growth strategy.
The firm disclosed in the disclosure filed to the Nigerian Exchange (NGX) Limited that the rights issue received the approval of the Securities and Exchange Commission (SEC).
It advised shareholders “to contact their stockbrokers and/or financial advisors for further information regarding the offer.”
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