Kenya Raises Gasoline Prices, Financial Services Dominate NGX, Ghana Cedi Shows Resilience, Zambia to Decide on Buyer for Massive Copper Mine

Oil prices experienced a decline on Monday due to concerns over a global economic slowdown and potential interest rate hikes by the U.S. Federal Reserve. These factors offset expectations of tighter supplies and output cuts by OPEC+. Brent crude futures dipped by 4 cents to $75.37 a barrel at 0800 GMT, while U.S. West Texas Intermediate crude dropped by 9 cents to $70.55 a barrel.

KENYA: Kenya Raises Gasoline Prices to Decade High Amid Tax Hike

Following a tax increase, Kenya has experienced a surge in gasoline prices, reaching the highest level in over ten years. The cost of gasoline in Nairobi, the nation's capital, rose by 7.4% to 195.53 shillings ($1.39) per liter. This price adjustment reflects the changes in the country's finance legislation for this year, which includes a doubling of value-added tax on petroleum products to 16%, effective from July 1. Despite a temporary halt on the implementation of the Finance Act by the High Court, the energy regulator proceeded with the price increase.

NIGERIA: Financial Services Industry Dominates NGX with High Volume and Value Trades

Last week, the financial services industry took the lead in terms of transaction volume on the Nigerian Exchange Limited (NGX). With 1.7 billion shares valued at N24.7 billion traded in 14,277 deals, it accounted for 74% of the total equity turnover. Following closely was the conglomerates’ industry, with 98.4 million shares worth N379 million traded in 1,176 deals. The consumer goods industry also had an active week, trading 96.9 million shares worth N2.2 billion in 3,470 deals. The top three equities, Access Holdings Plc, United Bank for Africa Plc, and Guaranty Trust Holding Company Plc, contributed significantly to the total turnover, accounting for 844 million shares worth N16.3 billion in 5,493 deals. Overall, investors recorded a turnover of 2.3 billion shares worth N41.5 billion in 28,095 deals on the exchange.

GHANA: Ghana Cedi Outperforms Last Year, Shows Resilience Amidst IMF Programme

The Ghana cedi showed improved performance in the first half of this year compared to the same period last year. Despite an 11.21% loss against the US dollar, it was listed among African currencies with 'Worst Spot' Returns, as reported by Bloomberg. On the interbank market, the Cedi’s year-to-date loss to the dollar was approximately 20%. Currently, in the retail market, the exchange rate stands at ￠11.68 to the dollar, while the Bank of Ghana offers ￠10.99. Over the past three months, the cedi has performed favourably against the US dollar, maintaining resilience since the announcement of an IMF programme and gaining about 9%.

ZAMBIA: Zambia to Decide on Buyer for One of the World’s Biggest Copper Mines

Zambia is expected to make a decision regarding the investor to take over Mopani Copper Mines by the end of this month. The country has a shortlist of four companies, including China's Zijin Mining Group, Norinco Group, Sibanye Stillwater Ltd., and an investment vehicle owned by ex-Glencore Plc officials. These companies are currently submitting their final bids, and the selection process is set to conclude by the end of July. Additionally, similar efforts are underway to resolve the situation with Konkola Copper Mines, where legal challenges involving Vedanta Resources Ltd. and the Zambian government have been ongoing since 2019