Kenya Power Seeks Currency Aid; Nigerian Banks Grapple with Fraud; Ghana's GIPC Advocates Collaborative Efforts; Egypt's BRICS Membership Benefits

Oil was headed for a second week of declines even as it rose on Friday, as the dollar firmed before a speech by Federal Reserve Chair Jerome Powell while concerns over tight supply eased. Brent crude rose 39 cents, or 0.5%, to $83.75 a barrel by 0624 GMT, while U.S. West Texas Intermediate crude was also up 39 cents, or 0.5%, at $79.44 a barrel.

KENYA: Kenya Power Seeks Government Aid to Mitigate Currency Depreciation Impact

Kenya Power has appealed to the government for assistance in converting a portion of its dollar-denominated debt into Kenyan shillings to counter the impact of the weakening local currency. Joseph Siror, Managing Director, revealed that around 30 percent of the company's foreign currency loan portfolio could be redenominated if the efforts prove fruitful. As per the latest annual report, total borrowing reached Sh103.8 billion in the fiscal year ending June 2022, with the majority being USD-denominated at Sh76.2 billion. The company's financials suffered a setback in H2 2022, with debt service obligations causing a Sh1.1 billion loss, surpassing a Sh5.7 billion operating profit.

NIGERIA: Surge in Fraud Cases Costs Nigerian Banks Heavily in Q2'23

Nigerian deposit money banks have seen a sharp upswing in fraud incidents and losses in the second quarter of 2023 (Q2'23), with insider involvement notably rising. Reported fraud cases rose by a staggering 276.98%, totaling N9.75 billion, compared to the previous quarter's N2.58 billion (Q1'23). Losses amounted to a staggering N5.79 billion, a remarkable 1,125% surge from Q1's N472 million. The Financial Institutions Training Centre (FITC) report noted 24 banks submitted data, revealing a 6.4% drop in outsider participation, while staff involvement increased by 22.2%. FITC, owned by the Banker’s Committee, aims to strengthen Nigeria's financial sector.

GHANA: GIPC Calls for Collaborative Efforts to Revitalize FDI and Economic Growth

The Ghana Investment Promotion Centre (GIPC) highlights the need for collaborative partnerships in the business sector to drive economic growth and attract sustainable Foreign Direct Investment (FDI) to the country and Africa. FDI inflows in Africa decreased to $45 billion in 2022 from the previous year's record $80 billion, as reported by the 2023 World Investment Report. Speaking at the GIPC CEOs Breakfast Meeting in Accra, CEO Yofi Grant urged leveraging natural resources for robust business alliances, focusing on sustainability. Grant emphasized the shift from trade to fostering better investment opportunities through strong partnerships.

EGYPT: Egypt's BRICS Membership Expected to Bring Economic Benefits

Financial experts anticipate significant advantages for Egypt as it joins the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa. The move is projected to provide mechanisms for addressing foreign currency shortages and budget deficits, thereby enhancing economic confidence. Egypt's inclusion comes after an invitation was extended to it, along with other nations, to join BRICS starting January 2024. As a member, Egypt can access the Contingent Reserve Arrangement for emergency dollar reserves and seek aid for budget deficits. This membership is poised to strengthen trade, foreign investment, and overall economic stability in Egypt.