A F R I C A F I N A N C I A LI N T E L L I G E N C E

2 Minute Review

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MARKET HIGHLIGHTS

2015 was not a great year for some of Africa's major Markets

BOTSWANA DOMESTIC COMPANIES INDEX had the best performance with 11.62%NIGERIA STOCK EXCHANGE ALL SHARE INDEX performed the worst with -20.83%

Based on YTD data as of December 24th for B&O tracked marketsBased on YTD data as of December 24th for B&O tracked markets

AFRICA'S MAJOR COMMODITY EXPORTS HAVE ALSO NOT FARED WELL

CRUDE OIL, NATURAL GAS and COPPER are all down by more than 15% compared to the beginning of the year

COCOA futures have performed better than Energy and Copper Futures at 18%+

Supporting data sourced from investing.comBased on YTD data as on December 24th, 2015

GDP CONSTANT PRICES (% change) for major markets

Supporting data estimates sourced from International Monetary Fund

(estimates)

inflation (% change) based on end of period consumer prices

Supporting data estimates sourced from International Monetary Fund

(estimates)

MAJOR presidential appointMents

former general buhari elected nigerian president

Image courtesy of Wikimedia

In April 2015, President Muhammadu Buharibecame the first Nigerian to defeat a sittingpresident through the ballot box.

President Muhammadu Buhari was elected aspresident of Nigeria after defeating theincumbent President Goodluck Jonathan by 2.7million votes.

President Muhammad Buhari was electedlargely on his campaign promise to clean upcorruption as well as to eradicate the BokoHaram terrorist group.

After Buhari's election win, the Nigerian Stock Exchange experienced a sharp uptick but has since declinedto a worse rate than before the election

Magufuli elected as 5th president of tanzania

Image courtesy of Wikimedia

John Pombe Magufuli became the 5th president ofTanzania after winning the general election underthe party slogan, Chama Cha Mapinduzi (CCM).

Magufuli has gained attention across the globe as aresult-driven, penny pinching and no-nonsensecandidate as evidenced by his visit to the Ministry ofFinance two days after his inauguration where hetook roll call.

In a move to cut cost across all facets ofgovernment, Magufuli's cabinet announcement hadonly 19 ministeral appointments compared to 30ministers from the past government

TERRORISM INDEX

BOKO HARAM

FULANI MILITANTS

10 African countries were ranked among the top 20 Global Terrorism Index list

6600+

1200+

AL SHABAAB

1000+

DEATHS

DEATHS

DEATHS

WORST GROUPS

Number of African deathscaused between 2010 and 2014

3 - NIGERIA 8 - SOMALIA 9 - LIBYA 13 - EGYPT 14 - CENTRAL AFRICAN REP.

Data culled from Global Terrorism Index 2015 by the Institute for Economics & Peace 

15 - SOUTH SUDAN 16 - SUDAN 18 - KENYA 19 - CONGO 20 - CAMEROON

MAJOR EVENTS

egypt planning development of new administrative capital

The Egyptian government announced plans toconstruct a new administrative capital, east ofCairo. A project is estimated to cost Egypt $45billion and is estimated to take five to sevenyears to complete.

The new city is projected to consist of morethan 600 health care facilities and almost2000 education institutions.

As a core aim to revive the economy of Egypt,the new city has received massive aid andinvestment in terms of pledges amounting toabout $12 billion from Saudi Arabia, Kuwait,and the United Arab Emirates.

Image courtesy of Wikimedia

nigeria communication commission fines mtn $3.9 billion

Image courtesy of Wayan Vota via Flickr

The Nigerian Communications Commission finedAfrica's largest telecommunications provider $5.2billion for failure to disconnect unregistered SIMlines by the required deadline. The fine triggereda crash in trading for MTN's stock and trading hadto be temporarily suspended.

The fine which has since been reduced to $3.9billion is required to be completely paid off by thelast day of 2015.

Meanwhile, MTN has proceeded to challenge thefine in a Nigerian court to avoid the crippling fine.

ghana power crisis

Ghana faced near economic meltdowndue to frequent power cuts whichaffected a lot of businesses in Ghana.

Lamenting that Ghana was a victim ofits success, the government attributedthat a record of 12 per cent growth perannum increased the demand forpower tremendously.

Cyclic power shortages in Ghana havealso been attributed towards changingwater levels at the Akosombohydroelectric dam, which is associatedto contribute about half of the powersupply in the country

Image courtesy of Clint Mason via Flickr

jacob zuma appoints two finance ministers within 5 days

Image Coutesy of Baynham Goredema via Flickr

South African president, Jacob Zuma, fired thecountry's finance minister Nhlanhla Nenewithout any warning on Dec 9th and replacedhim with David Van Rooyen, a lawmaker withvery little governmental finance experience.

This rash decision caused an uproar withinSouth African and International marketscausing the rand currency to fall to its lowestlevel against the dollar since 2008.

This caused Zuma to re-think his decision andappoint Pravin Gordhan, the current minister ofcooperative governance to the position.

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