NIGERIA
Rate steady before Emefiele
Nigeria’s central bank yesterday kept its benchmark interest rate unchanged at a record high in the last monetary policy committee meeting before Godwin Emefiele takes office as governor. The rate was left at 12 percent, acting governor Sarah Alade said in Abuja. Emefiele will take control of the central bank on June 1, with a mandate to keep the inflation rate, which reached 7.9 percent in April, within the 6 percent to 9 percent target band. Policy makers are also seeking to bolster Nigeria’s foreign currency reserves, which have slumped 15 percent this year, adding to speculation the midpoint of the currency peg may be lowered from 155 naira a dollar. The central bank has kept its benchmark rate unchanged since November 2011. In March, the cash reserve requirement on private sector funds was raised to 15 percent.– Bloomberg
ZIMBABWE
AfDB considers aid options
The African Development Bank (AfDB) was considering three ways it could help Zimbabwe clear its huge debts and would settle on a rescue package in three months time, the bank’s chief economist, Mthuli Ncube, said yesterday. The International Monetary Fund approved in January a six-month extension of a monitoring programme for Zimbabwe aimed at helping it to clear $10 billion (R104bn) in external debt and give it access to new international credit. “We have three or so options that we think Zimbabwe can pursue and get out of this debt quagmire,” he said on the sidelines of the AfDB’s annual meeting. The bank’s deal to help Zimbabwe would be disclosed in three months time, he said. – Reuters
RWANDA
Loan to help fund projects
The Eastern and Southern African Trade and Development Bank plans to raise $300 million (R3.1 billion) in a syndicated loan by September to help fund projects in the region. The lender, also known as PTA Bank, planned to have a $1bn infrastructure fund and a $500m trade finance fund in operation by next year, president and chief executive Admassu Tadesse said on Monday. PTA Bank wants to increase lending for trade and infrastructure projects in a region where countries including Kenya, Zambia and Mozambique are set to outpace the sub-Saharan African growth forecast of 5.4 percent for this year, according to the International Monetary Fund. – Bloomberg