New numbers: Borrowing in Ghana, questions in Nigeria, and voting in Cote d’Ivoire

Ghana’s USD3 billion USD bond issuance

Debt Categories (USD Mil.)

Ghana is working to square a difficult circle. Between 2019 and 2020, the fiscal deficit grew from 4.7% to 11.7% of GDP according to the Ministry of Finance. This year the government expects that figure to come back down to 9.5%. However, that’s still above the 5% of GDP limit in the fiscal law. Expenditure rationalisation and new revenue raising measures are all difficult in the context of pandemic-era low growth – notwithstanding Ghana’s heroic January 2021 growth outturn. See: New numbers: GDP expansion, ports activity and mobile money in Ghana.

With that context in mind, note the government’s recent successful debt issuance. On Tues (30 March), announced a successful USD3 billion capital raise, twice oversubscribed, and including a novel zero-coupon tranche aimed at helping the government manage servicing costs. The seven year weighted average life (WAL) note carries 7.75% interest, the 12 year-WAL 8.63% interest and the 20-year WAL 8.875%. See here for the government’s celebratory press release.

Billion-dollar parliamentary queries

Nigeria was able to pass its NGN 13.6 trillion (USD35.7 billion) 2021 budget into law in December of last year. Parliamentarians are currently scrutinising the proposed NGN300 billion (USD790 million) budget for the Federal Capital Territory (FCT) Abuja, presented by FCT Minister Mohammed Musa Bello earlier this month.

The FCT bill is 34% larger than the 2020 budget and is reportedly facing some pushback on discrepancies in FCT Internal Revenue Service (IRS) figures. The Senate Committee on Local and Foreign Debt chaired by Edo Central Senator Clifford Ordia (People’s Democratic Party) has also reportedly requested more information on planned USD1.5 billion going to COVID-19 related infrastructure and Euro 995 million to agricultural mechanisation across the country. Senators concerns centre on the adequacy of plans for training to accompany equipment and detail on the debt position of beneficiary states.

63.97% vote for Cote d’Ivoire’s National Assembly president

Amadou Soumahoro, Séguéla MP and member of Cote d’Ivoire’s ruling Rassemblement des houphouëtistes pour la démocratie et la paix (RHDP), has been re-elected National Assembly president.

Soumahoro has been in office since 2019 and reportedly won President Alassane Ouattara’s backing as the RHDP candidate in recent days[1].

Votes per candidate

As a result, when parliamentarians voted on Tues (30 March), two other RHDP candidates withdrew their names and Soumahoro won 64% of the vote. N’Zi N’Da Affoue Eliane of the opposition Parti Démocratique de la Côte d'Ivoire — Rassemblement Démocratique Africain (PDCI-RDA) drew 34%.

[1] https://www.jeuneafrique.com/1145862/politique/cote-divoire-amadou-soumahoro-reconduit-a-la-tete-de-lassemblee/

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