Nigeria Drops $1.1B Claims Against ENI, Ghana Forecasts Revenue Surge, Ethiopia's Crucial Eurobond Talks, and Egypt's Dollar Woes

Oil prices were little changed on Friday but on track for their fourth straight week of losses after tumbling about 5% to a four-month-low on Thursday on worries over global demand. Brent futures edged up 7 cents, or 0.1%, to $77.49 a barrel at 0702 GMT. U.S. West Texas Intermediate crude (WTI) was at $72.96, up 6 cents, or 0.1%. Both have lost around a sixth of their value over the last four weeks.

KENYA: Kenya Faces 7.25% Economic Loss by 2050 – World Bank

The World Bank's latest report, the Kenya Country Climate and Development Report, reveals that Kenya could experience a significant economic downturn of 3.61–7.25% by 2050 unless decisive measures are taken to combat climate change. The impact could be mitigated by achieving a 7.5% annual economic growth rate, as per the government's target, resulting in a reduced damage range of 2.78–5.3%. The report emphasizes the need for increased investments in water resources, farming, energy, transport, and digital systems to alleviate climate change effects and highlights Kenya's potential to lead in emissions reduction globally.

NIGERIA: Nigeria Drops $1.1 Billion Claims Against Eni Over Oilfield Deal Corruption Allegations

Nigeria is reportedly withdrawing civil claims amounting to $1.1 billion against Italian energy giant Eni in connection to corruption allegations surrounding an oilfield deal, according to Bloomberg News. The country's justice ministry is set to waive the claims before Italy's highest court unconditionally and immediately by November 17, as stated in a letter regarding the OPL 245 field. Eni, pleased with the decision, expressed readiness to collaborate with the Nigerian government to convert the license from prospecting to mining, ensuring development prospects for the field. In 2021, a Milan court acquitted Eni, its CEO, and Shell in the corruption case related to the Nigerian oilfield acquisition.

GHANA: Ghana Projects Revenue of GH￠176.4 billion for 2024

Ghana forecasts a total revenue of GH￠176.4 billion in 2024, with anticipated total expenditure at GH￠226.7 billion, equivalent to 21.6 percent of the Gross Domestic Product (GDP). Finance Minister Ken Ofori-Atta highlighted a comprehensive fiscal strategy involving a substantial 6.1 percentage point reduction in total expenditures compared to 2022. This reduction is attributed to fiscal consolidation efforts, with a 4.9 percentage point adjustment in revenue and a 4.0 percentage point adjustment in primary expenditure. Ongoing external debt operations are expected to yield interest rate savings, contributing positively to public finance sustainability. The fiscal deficit is projected at GH￠61.9 billion, equivalent to 5.9 percent of GDP, with a corresponding primary balance deficit of GH￠5.9 billion (0.6 percent of GDP).

ETHIOPIA: Ethiopia's Upcoming Coupon Payment Hangs on Eurobond Restructuring Talks

Ethiopia faces a critical juncture as the success of upcoming negotiations with Eurobond holders will determine the fate of a significant coupon payment due next month. The government, concurrently engaged in talks with official bilateral creditors, aims to echo terms similar to the China deal, offering fiscal relief until a comprehensive restructuring plan unfolds under the G20 framework. Amid mounting economic challenges, including double-digit inflation and growing debt repayments, Ethiopia's ability to navigate these negotiations holds the key to its immediate financial stability.

EGYPT: Egypt's Parallel Market Hits Record Highs as US Dollar Soars

In the currency parallel market, the US dollar has surged to unprecedented levels, reaching EGP 50/1 USD for smaller amounts and approximately EGP 55/1 USD for larger sums, according to local importers. This stark contrast with the official rate of EGP 31/1 USD signals a challenging economic landscape. Anticipation looms over a potential fourth wave of local currency devaluation against the USD post the December presidential race. Despite three previous devaluations since March 2022 to attract investors, Egypt grapples with a severe US dollar liquidity crunch, prompting the government's ambitious plan to secure $191 billion by 2026 through measures like IPOs and foreign investor incentives. The nation is also working to meet commitments under a $3 billion IMF loan program, emphasizing economic reforms and private sector involvement