Fitch Ratings reviews CEMAC’s progress

Fitch Ratings reviews CEMAC’s progress

Fitch Ratings reviews CEMAC’s progress

Looking in more depth at the Central African Economic and Monetary Community (CEMAC), a report from Fitch Ratings suggests there will be no breakup of the currency zone or devaluation of the CFA franc against the euro, thanks to strengthening of its external buffers in 2017. But, Fitch warns, the region remains vulnerable to any renewed decline in oil prices,…

World Bank supports boost for Central African Republic

World Bank supports boost for Central African Republic

World Bank supports boost for Central African Republic

The World Bank has approved a $25m International Development Association grant for the Central African Republic, to support its efforts to re-establish basic fiscal management and transparency and achieve economic recovery in the country. The Second State Consolidation Development Program is structured around two pillars: 1) Re-establishing basic fiscal management and transparency, which will help boost fiscal revenue, improve wage bill management,…

Oil price drop hangs over heads of central African states as major risk

Oil price drop hangs over heads of central African states as major risk

Oil price drop hangs over heads of central African states as major risk

The Central African Economic and Monetary Community (CEMAC) remains vulnerable to a drop in oil prices although it has strengthened its external buffers, according to a new report from Fitch Ratings. It found international reserves appear to have bottomed out in June 2017, supported by International Monetary Fund (IMF) disbursements, fiscal adjustments and import contraction. Fitch adds that the regional…

South Africa and DRC committed to greater trade

South Africa and DRC committed to greater trade

South Africa and DRC committed to greater trade

Risk managers should be aware of strengthening trade links between South Africa and the Democratic Republic of Congo (DRC), after the two states committed to remove hurdles that hinder business interactions. At an Investment and Trade Initiative seminar, organised by the Department of Trade and Industry, South African Consul General in Lubumbashi, Andrew Maswanganye, said it is important for both…

Central African Republic on track with IMF loan

Central African Republic on track with IMF loan

Central African Republic on track with IMF loan

The Central African Republic is performing “satisfactorily” with its International Monetary Fund (IMF) arrangement. The IMF has just released a second interim report on the deal, with Mitsuhiro Furusawa, deputy managing director and acting chair of the executive board at the IMF, saying: “Performance under the programme has been satisfactory despite the challenging security environment. “Along with ongoing efforts to…

Supply chain integrity boost in DRC

Supply chain integrity boost in DRC

Supply chain integrity boost in DRC

A system to trace legal and conflict-free artisanal gold in the Democratic Republic of Congo (DRC) has been successfully launched to give more integrity to the supply chain out of the country. The Just Gold project began as a pilot in Ituri Province in 2015, but has now moved from the pilot stage, having proven a successful chain of custody…

S&P affirms Cameroon rating while warning of political risks

S&P affirms Cameroon rating while warning of political risks

S&P affirms Cameroon rating while warning of political risks

Standard & Poor’s Global Ratings (S&P) has affirmed its B long-term and B short-term sovereign credit ratings on Cameroon, with a stable outlook, however, it has warned that risks around the presidential succession are high. It said: “The ratings are constrained by our view of political risk pertaining to presidential succession, low income per capita and our expectation of a…

3TG supply chain risks overlooked by tech firms: Maplecroft

3TG supply chain risks overlooked by tech firms: Maplecroft

3TG supply chain risks overlooked by tech firms: Maplecroft

Technology companies are ignoring human rights issues and associated supply chain risk at key mining sites where 3TG minerals are sourced for the production of smartphones and computers, according to risk consultancy Verisk Maplecroft. Verisk Maplecroft’s Commodity Risk Service reveals that technology companies tend to focus on risks at traditional mining sites in DR Congo and the Great Lakes region…

Sucker punch: political bungling sets South Africa on the recession path…

Sucker punch: political bungling sets South Africa on the recession path…

Sucker punch: political bungling sets South Africa on the recession path…

In December 2015, South Africa made international headlines after going through three finance ministers in just four days. Nhanhla Nene was replaced by David Van Rooyen, since dubbed the ‘weekend minister’, before sanity prevailed and the portfolio was handed to the respected Pravin Gordhan. Mr Gordhan set about undoing the damage caused by this cynical political shuffling, working round the…