Nigeria's share index tumbled 3.4 percent on Thursday and hit its lowest point in almost 3-1/2 years, spooked by the weak outlook for the currency, traders said. The share index, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, has fallen for five straight days, sliding below the psychologically important 25,000 point line not seen since September 2012. At the market close, the index was down 3.4 percent at 24,239 points. The index has dropped 12.4 percent in the first nine days of trading this year. Currency and stock markets in Africa's biggest economy have been hit hard by the fall in the price of crude oil, Nigeria's main export, which has slashed government revenues and triggered an exit of foreign investors. "From what foreign investors are telling us, when they have confidence in the naira/dollar exchange rate they can then make investment decisions," Oscar Onyema, CEO of the Nigerian Stock Exchange told Reuters. 

The naira has dived 34 percent on the black market compared with its official level of 197 after the central bank stopped dollar sales to retail currency outlets. The move has intensified speculation that Africa's top oil producer will have to formally devalue its currency soon. Onyema said the bourse expected 2016 to be challenging for the market after the index shed 17.4 percent last year with losses continuing into this year, as oil prices plunged and the domestic economy faltered. Foreign buyers, who accounted for 54 percent of trading volumes, were on the sidelines owing to the lack of clarity on Nigeria's forex policy, highlighting naira weakness as a deterrent to a market rally in 2016, he said. The index of Nigeria's top 10 banks fell 4.69 percent to lead the bourse lower. Top decliners included Seplat, Oando, Guaranty Trust Bank and FBN Holdings all down more than 9 percent.

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Ngwa Bertrand

15.Jan.2016

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Over FCFA 100 billion have been earmarked as Public Investment Budget for the South West Region this year. Some 191 projects have been endorsed for the region against 179 for 2015. Target is that contracts for executing the projects be awarded by April so as to give contractors enough time to execute them. Giving an exhaustive presentation of a circular of the Minister of Finance on the budget, an official from the ministry, Gideon Barfree, stated that the budget for the South West comprises FCFA 12,112,803,780 for functioning while FCFA 82,94, 086,204 will be used to spearhead investment. He also stated that priority will be given to growth-induced sectors such as energy, agriculture, infrastructure and mining.

The Finance Controller for the South West Region, Alice Nouboue outlined certain difficulties such as follow up of budgetary information on time from councils, wrong allocation of budget as well as projects that were programmed but no credits came like in Ndian division. The Regional Delegate of Public Contracts, Kati Alfred Njinti said in 2015, 179 projects were given out and 114 were completed and received with an 89.4 per cent fiscal realization. In 2016, he said there are 191 projects to be awarded by April. He added that the execution of these projects depends on the commitment of stakeholders.

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Ngwa Bertrand

12.Jan.2016

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The population of Bamenda is highly appreciative of the coming of an industrial zone in the region and has promised to collaborate when ever need arises. This was during a working visit paid by MAGZI officials to the region recently. The officials of the Institution for the Management of Industrial Zones- MAGZI also came to evaluate the work done so far on the site where the industries will be planted.

On the ground it was observed that about 1.3km of road leading to the site has been tarred with bridges and culverts built, electricity has been installed while 21 pillars have been planted round the industrial zone. While presenting the Bamenda industrial Zone, the Technical Adviser at MAGZI Ndifor Tita said the zone covers about 44 hectares of land and has been divided into eight platforms. So far, he went on, the works have been carried out there to make it convenient for industries to occupy. He said studies are still going on to install others facilities like water amongst others.

He reminded all that in 2012 MAGZI paid FCFA 220 million to the people that had land in that area. According to the General Manager of MAGZI Christol Georges Manon, the zone might go operational by mid 2016 as more that 50 % of the work has been done. He thanked the people of Nkwen for being so cooperative. He called on other custodians of the lands in the region to offer more land as the 44 hectares of land is not enough to accommodate the number of companies that are already applying. He however called on interested industrialists to deposit their applications at the regional delegation of mines Bamenda.

Meanwhile, the Secretary General in the North West Governors office Absalom Monono Woloua called on MAGZI to speed up works on the site as the people of the region are anxious to see more industries. He equally appreciated the work done so far and called on industrialists from the region to apply and occupy land.

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Ngwa Bertrand

11.Jan.2016

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As Cameroon and the entire Central African sub region count their achievements from the just-ended visit of the Manager Director of the International Monetary Fund (IMF), Christine Lagarde to the country, they may consider adjusting developing policies that have either not worked or produced satisfactory results. Speaking in Yaounde on Friday January 8, 2016 during a roundtable on “Low oil prices and the financing of infrastructure,” the visiting IMF Managing Director said the new reality necessitates policy adjustment to preserve macroeconomic stability and create new sources of growth. “If you always walk down the same path, you will go to where you have already been. Confronted with this new reality, CEMAC needs to chart a new path for its prosperity.

The IMF can help through policy advice, capacity building and financial support if needed,” she said. Like other speakers who took to the rostrum during the heavily-attended roundtable, Mrs Lagarde observed that in an environment of rising fiscal pressures, careful consideration needs to be given to priorities. This may require scaling back some plans. It emerged from the discussions that selectivity in infrastructure development-based on economic merit and cost efficiency- can help guide the process of re-setting the development priorities. There is no gainsaying that Cameroon and CEMAC had largely depended on oil (70 per cent) to develop their economies. Economic analysts believe it is high time decision-makers diversify the economies to stand the tests of time. Cameroon’s Minister of Finance, Alamine Ousmane Mey said the country and sub region are working to broaden the tax base, safeguard fiscal revenue by curtailing from the source and develop other growth-induced sectors like agriculture, livestock, services and infrastructure.

Almost all speakers said global experience consistently points to the importance of a vibrant private sector that can boost growth and diversify the economy. Mrs Lagarde said, “Our own analysis indicates that facilitating tax payments and intra-CEMAC trade would significantly improve the business climate.” Disturbingly, she revealed that on average, it takes 572 hours per year in CEMAC versus 304 in other African countries to pay business taxes, and the waiting time for clearing goods; 40 days for exports and 50 days for imports. “Reforms in these areas would yield the highest benefits,” the visiting IMF Manager Director advised. Fully developing the public/private sector partnership framework wherein projects are mostly engaged on Build-Operate-Transfer mechanism could also be given serious consideration.

The integration drive that has almost always been a white elephant project in CEMAC, experts say, has to be attained and genuinely too. CEMAC comprises six micro economies with a GDP of FCFA 30,000 billion and a population of about 45 million inhabitants. This is nothing compared with other individual countries like Nigeria with a population of about 180 million inhabitants and the Democratic Republic of Congo with close to 90 million inhabitants. The situation even becomes worse within CEMAC when States are unwilling to let go some of their national sovereignties so as to reap the fruits of integration. Before leaving Yaounde, Mrs Christine Lagarde reminded the sub region of the strength in diversity and success in unity. “By coming together today, you can harness the dividends from integration and deliver on the region’s promise of greater prosperity for its people tomorrow.”

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Ngwa Bertrand

11.Jan.2016

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Cooperation ties between Cameroon and the International Monetary Fund has been strengthened at the highest level with the visit of the Director General of the International Monetary Fund (IMF) Madam Christine LAGARDE to Cameroon. She was received in audience at Unity Palace by the Head of State His Excellency Paul BIYA and was later offered a reception by the Presidential Couple. Speaking to the press shortly after the audience, the Director General of the IMF said she had an excellent discussion with the President of the Republic.

Discussions were centred around the long and important collaboration between the IMF and Cameroon, she continued, and that President Paul BIYA thanked the financial institution for their assistance, while hoping that the fruitful cooperation will continue. The audience was marked by exchange of exchange of gifts, symbolic of Cameroon's hospitality. The IMF boss is accompanied on her 72 hour official visit to Cameroon on the Invitation of President Paul Biya by a delegation comprising Madam Antoinette SAYEH, Director of Africa Department; Mr. Gerard Thomas RICE, Director of the Communication Department; Mr. Mario De ZAMAROCZY, chief of the mission to Cameroon; Mr. Gilles BAUCHE, Adviser at the Directorate General and Mr. Kadima KALONJI, the Resident Representative of the IMF in Cameroon. The Presidential couple later offered an official reception in honour of Madam LAGARDE at the Unity Palace.

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Ngwa Bertrand

10.Jan.2016

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The head of the IMF, Christine Lagarde, is meeting with Nigerian President Buhari and industry leaders to discuss the country’s economy and the challenge posed by falling oil prices.

Christine Lagarde, Managing Director of the International Monetary Fund, is in the Nigerian capital, Abuja, for a visit aimed at strengthening the body's partnership with the West African country. As well as meeting the Nigerian president, she is set to hold talks with economic experts, ministers and leading industry figures.

Her visit comes at a time when Nigeria, Africa's leading economy, is facing serious challenges. Inflation is high, the number of unemployed people is rising and insufficient infrastructure, such as the lack of a reliable energy supply, is contributing to the slowdown of Nigeria's economy.

Oil is the country's main export, but a drastic fall in oil prices has reduced revenues, hitting Nigeria's economy hard. A continuing struggle against corruption is also hampering Nigeria's development.

No IMF loan needed

In spite of these challenges, IMF chief Lagarde was optimistic about Nigeria's economic health. She said she was not there to offer a loan, praising President Muhammadu Buhari for his response to the country's economic situation. "Given the determination and resilience displayed by the presidency and his team, I don't see why an IMF programme is going to be needed," she told reporters in Abuja.

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Ngwa Bertrand

09.Jan.2016

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