Latest on Oil Prices, Kenya's Debt Management Plans, Ethiopia's Liquidity Challenges, Tinubu's Economic Team, and IMF's Assessment of Ghana's Economy

Oil prices are set to break a two-week losing streak due to optimism about increased energy demand from China and a weaker dollar. Brent futures increased by 20 cents (0.3%) to $75.87 a barrel, while U.S. WTI crude rose by 16 cents (0.2%) to $70.78 a barrel. Both benchmarks experienced a 3% surge in the previous session.

KENYA: Kenya makes provision for maturing June 2024 Eurobond

The Kenyan Government has released its financial budget for the fiscal year 2023/2024, assuring investors that all maturing debts, including the June 2024 Eurobond, will be honoured. The budget sets a record-breaking expenditure of 3.6 trillion shillings ($26.3 billion), with 1.6 trillion shillings ($11.4 billion) allocated for debt servicing. Proposed tax changes, including a 35% tax rate on high monthly incomes and taxation of digital assets, aim to generate additional revenue and support the government's ambitious budget goals.

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ETHIOPIA: Central Bank Dismisses Liquidity Shortage Concerns

The Vice Governor of Ethiopia’s National Bank, Solomon Desta, dismissed concerns over a liquidity shortage in the country’s banking industry. At a press briefing during the East Africa Finance Summit in Addis Ababa, Solomon stated that only one bank is facing a liquidity crisis and the rest of the industry is stable. He did not specify which bank. Solomon acknowledged a surge in demand for cash due to post-war economic rebuilding but downplayed concerns about an overall shortage of liquidity. Many bankers and customers have expressed skepticism over Solomon’s assessment

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GHANA: Ghana’s economy showing signs of stablisation-IMF

The Ghanaian economy is showing signs of stabilization with softening inflation, increased international reserves, and a less volatile exchange rate. An IMF team led by Stéphane Roudet made this observation after a week-long visit to Ghana to assess the economic developments and implementation of the Fund-supported programme. Progress on key commitments under the Fund-supported program will be formally assessed in the first review of the Extended Credit Facility arrangement, the team noted. Timely restructuring agreements with creditors are essential to secure the expected benefits of the Fund-supported program. The IMF staff met with Ghanaian authorities and representatives from various government agencies, the private sector, and civil society.

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NIGERIA: President Tinubu inaugurates National Economic Council (NEC)

President Bola Tinubu has inaugurated the National Economic Council (NEC) to help his administration to deliver on its promises to the Nigerian people. The NEC, which is responsible for managing the economy, is led by Vice President Kashim Shettima and includes the 36 state governors, the governor of the Central Bank of Nigeria (CBN), and other government officials. During his address, President Tinubu urged the council to develop interventions to alleviate the impact of the removal of fuel subsidies. This came as the council announced that it would consider a recommendation from the National Income, Salaries and Wages Commission to pay workers N702.919 billion as a consequential adjustment to offset the effects of the subsidy removal.

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