Trade and Financial Services Round-Up

  • 7 Aug 2023
  • 2 Mins Read
  • 〜 by ndiaye ndiaye


Investors Suffer Sh5 billion losses in bond sales

Bond investors recorded net capital losses of Sh5.1 billion when selling their securities in the secondary market on the Nairobi Securities Exchange (NSE) in the year’s second quarter, as prices fell due to rising interest rates on new debt auctions. Data published by the Capital Markets Authority (CMA) shows that most listed bonds were traded at prices below par value by their holders, resulting in the loss of part of their principal.

During the quarter, bonds with a face or par value of Sh152.53 billion were traded at the exchange, but the consideration realized (traded turnover) stood at Sh147.39 billion due to the price discounts.

(Business Daily)



Goods and services imports hit $14.5bn

Imports of goods and services increased to 14,598.6 million US dollars in the year ending May from 11,389.6 million US dollars in the corresponding period last year on high import bills. According to the Bank of Tanzania (BoT) monthly economic review for June, the increase was mainly driven by imports of white petroleum products, industrial transport equipment, machinery, mechanical appliances, and fertilizers.

Import of white petroleum products, which accounted for 22.2 percent of the total goods import bill, edged up by 39.1 percent to 3,243.4 million US dollars reflecting a cumulative impact of higher prices in the world market.

(Daily News)



Value of govt bonds increase by UgShs5.8 trillion

The Capital Markets Authority (CMA) has revealed that the value of government bonds traded on the secondary market significantly increased in the second quarter of 2023, reaching Shs15.3 trillion from Shs9.5 trillion in the previous quarter ended March. The increase was due to a rise in the appetite for safer investments amid rising volatilities in the equity markets. The CMA Quarterly Bulletin noted that average monthly turnover also grew to UgShs 5.1 trillion compared to Shs3.2 trillion in the previous quarter.

Government bond turnover ratio for the first quarter of 2023 rose to 53 percent from 35 percent… due to, among other things, increased investor appetite for government securities,” the report reads in part.

(Daily Monitor)



Kagame urges African leaders to enact investment policies

President Paul Kagame on Thursday, August 3, issued a rallying call to fellow African leaders saying that governments must step up and enact enabling investment policies, to be able to attract major impactful investments such as the just-inaugurated Anjia Prefabricated Construction Cement Factory in Muhanga district, Southern Province.

“That’s what we have been doing here in Rwanda for a number of years,” he pointed out.

The Head of State made the call shortly after launching and also touring the $100 million facility which targets an annual output of a million metric tonnes output in order to address the supply deficit in the market.

(New Times)



Ethiopia gains USD 226.8 million from mineral exports

The Ministry of Mines has announced that the earnings from exported minerals totalled USD 226.8 million in the 2022/23 fiscal year. The Ministry also reviewed its performance during the year, highlighting that a total of Birr 896.8 million was granted to both domestic and foreign developers engaged in mineral exploration, production, and processing.

The ministry emphasized the importance of increasing the national production of coal as a substitute for imported coal. It also suggested that the incentive for purchasing gold could be raised from 35 to 60 percent. The Minister of Mines, Habtamu Tegune, reported that efforts were underway to revive the operations of Mosobo Cement, Capital Cement, and Pioneer Cement factories, which had previously ceased working.