The International Monetary Fund (IMF) has predicted a slower growth for the Nigerian economy in 2022, changing its forecast from 3.2 per cent in July to 3.0 per cent. In its latest World Economic Outlook for October 2022 titled, “Countering the Cost-of-Living Crisis”, it projected a growth contraction for sub-Saharan Africa from 3.8 per cent to 3.6 per cent.It cited the strength of the dollar as a major challenge tightening financial conditions, and increasing the cost of imported goods. Nigeria is faced with the continuous fall of the naira against the US dollar, trading at about 440 naira and 730 naira at the official and parallel market respectively.

Market Roundup

Below is the Weekly Economic roundup from Ventures Africa for the week ending the 14th of October 2022. This economic index gives you a glimpse into recent activities in the African economy and price changes that could affect it.

Stock markets

• Nigeria

The NGX All-Share Index increased by -0.45 per cent (-162.32) to close the week at 47,569.04  basis points.

 Top 5 gainers

May and Baker plc – +13.82%

Ikeja hotel plc – +9.73%

Neimeth international pharmacetecals – +9.52%

Coronation insurance plc -+9.37%

Honeywell flour mill – +8.84%

Top 5 Decliners

UAC plc – -12.20%

FTN cocoa processors – -10.00%

Global spectrum energy services – -9.82%

Academy press – -9.66% 

Geregu power – -9.02%

• Egypt

The EGX 30  Index slumped by -12.51 per cent (-22.90) to close the week at 10,48.88 basis points, on Thursday 13th of October.

Top 5 gainers

Kafr el Zayat pesticides – +20.00%

International co for investment and development – +8.90% 

Ismaila food industry – +8.49% 

AJWA – +8.48% 

Shrm dreams – +7.80%

Top 5 Decliners

Rights issue of AI – -10.87%

Raqta paper manufacturing – -5.30%  

Belton financial holding – -3.79% 

Arabian food industry- -3.53% 

The Arab diary product – -3.37%

• South Africa

The JSE All Share Index increased 4.56 per cent (-1,860.40) basis points to close the week at 64.271.36 basis points.

Top 5 gainers

Trustco group holdongs – +20.51%

Ellies holdings – +13.33%

enX group – +11.44%

Murray and Roberts – +10.70%

Southern palladium – +8.99%

Top 5 Decliners

Jasco – -17.65%

Rex truefrom- -16.78%

Finbond group- -10.81%

Telkom SA- -9.39%

Sea harvest group – -8.33%

• Kenya

The Nairobi Securities Exchange (NSE) All-Share Index increased 8.11 per cent  to close the week at 129.90 basis points.

Top 5 gainers

East African breweries- +23.19% 

Sanlam – +8.57% 

Crown paints- +5.75% 

Standard group – +4.60% 

Trans century – +4.39% 

Top 5 Decliners

EEGADS – -9.23%  

Umeme- -4.34% 

Sasini – -2.55% 

Cabaso investments – -2.08% 

Nairobi business ventures- -2.00%

Currency markets 

Here is how Nigeria, Egypt, Kenya, and South Africa’s currencies performed against the US Dollar at the official markets.

• The Nigerian naira started the week at 432.87 NGN/$1  to closed at 435.18 NGN/$1
• The Egyptian pound started the week at 19.6883 EGP/$1 and closed at 19.7083 EGP/$1.
• The South African Rand started the week at 18.2334 ZAR/$1 and closed at 18.1708ZAR/$1.
• The Kenyan shilling started the week at 120.9647 KES/$1 and closed at 121.0735 KES/$1.

Oil prices 

• Brent oil started closed Friday 14th October at $91.63 per barrel compared to $98.45 per barrel recorded the previous week.

• The West Texas Intermediate (WTI) closed the week at $85.61 per barrel compared to $92.38 per barrel last week.

Crypto markets 

According to data from Coinmarketcap, the global cryptocurrency market cap stood at $924.66 billion as of 6pm on Sunday 16th of October- a 0.99 per cent decrease over the previous day. Here is how the top three cryptocurrencies performed:

• Bitcoin (BTC) fell 0.71 per cent to trade at $19,384.09   
• Ethereum (ETH) fell 0.70 per cent to trade at $1,318.17
• Binance coin (BNB) fell 1.7 per cent to trade at $273.18.

Tech funding

• Egypt’s revenue-based financing company FlapKap raised $3.6 M in seed funding from Bolt by QED, Outliers, A15 and Nclude.The new funding round will help the company spread its operations in Egypt, UAE and Saudi Arabia.
• Nigeria-based healthtech startup Lifestore Healthcare raised $3 M in pre-Series A led by Health54 and participation from Aruwa Capital Management.
• Fintech-focused VC investment platform, Nclude has received a strategic investment from Mastercard. The VC investment arm so far has participated in big rounds in Egypt, including $25 M Series A of Lucky, USD 38 M Series A of Khazna,and USD 50 M Series B of Paymob. It had reportedly participated in the pre-seed round of Mozare3 as well.

From the Expert

According to policy expert, Kalu Aja, “The IMF had based their previous projection on the global economy. It is not just specific to Nigeria but the global economy itself is going to moderate their business on issues of uncertainty with energy and food prices. Everyone’s GDP will come down. But bringing it down to Nigeria, I think this was projected before the floods. Now with floods in Nigeria, we see food prices are going to go up and food is about to be 50 percent of the consumer price index in Nigeria. I see inflation and food inflation going up in 2023 which means GDP will be dampened. One, we might experience a recession. Two, the effects of the flood will affect employment and food prices. If the flood was put into consideration, this assumption by the IMF might have been lower.