Africa Briefs

Africa Briefs SA 'no way near debt distress'

South Africa is "no way near debt distress", central bank governor Lesetja Kganyago said on Friday, despite the country's debt-to-GDP ratio nearing the 100% mark seen as a red line for investors and credit rating agencies.

Kganyago, speaking live online during an African Development Bank panel discussion, however warned of the dangers of implementing fiscal austerity during a prolonged contraction of the economy.

"Debt is an outcome of your fiscal policy stance, so for as long as you are running a fiscal policy deficit you will have debt," Kganyago said. "[But] it could actually be self-defeating if you try to implement fiscal consolidation during a growth crisis."

In last month's budget, the treasury forecast the deficit to more than double to 14% of gross domestic product (GDP) in the 2020/21 fiscal year.

Kganyago added that debt forgiveness in the South African context would not be necessary as most of the country's debt, around 90%, was denominated in local currency. – Nampa/Reuters

Nigeria says no increase in pump prices

Nigeria has not increased gasoline pump prices, its fuel regulator said on Friday, after sparking confusion at fuel stations and a public backlash by apparently flagging a big rise was on the cards.

"There is no price increase. The current (gasoline) price is being maintained while consultations are being concluded," the Petroleum Products Pricing Agency (PPPRA) said in a statement.

On Thursday, the regulator posted an online notice listing the "guiding price" for "ex-depot", or wholesale, gasoline at 206.42 naira per litre - well above the previous pump prices of around 167 naira.

After local media reported the post, some consumers flocked to fuel stations, prompting a sharp rise in prices at some, and others to stop selling amid the confusion.

In Lagos, at least two stations were charging 248 naira per litre, compared with 167 naira on Thursday. – Nampa/Reuters

Ghana's budget projects growth at 5%

Ghana's economy is projected to grow by around 5% in 2021, while inflation is expected to return to its targeted band of 8% plus or minus 2 percentage points, the West African nation's parliamentary affairs minister said on Friday as he presented the budget.

Osei Kyei Mensah Bonsu told parliament that the 2021 budget sees expenditures at 113.75 billion cedis (US$19.9 billion) up 13.7% compared with the previous years as the West African nation introduces measures to recover from the coronavirus pandemic.

Ghana will borrow up to US$5 billion from capital markets this year to finance its 2021 budget and manage its debt. – Nampa/Reuters