Business South Africa’s Borrowing Costs Now Surpass Nigeria’s

South Africa’s Borrowing Costs Now Surpass Nigeria’s

-

- Advertisment -

South Africa’s Borrowing Costs Now Surpass Nigeria’s

 

 

 

 

 

 

 

 
South Africa now pays more than Nigeria to borrow in local currency.

This, according to a report by Bloomberg, is a sign of South Africa’s fiscal woes as for the first time ever, the country is paying more to borrow in its local currency than Nigeria, rated four steps lower at Moody’s Investors Service.

Yields on South African rand bonds have climbed more than a percentage point since the beginning of June after the government boosted issuance to plug a fiscal deficit forecast to swell to more than 15 per cent of Gross Domestic Product (GDP) this year.

Nigerian yields have dropped in tandem with most emerging-market peers, benefiting from a wall of monetary stimulus and a risk-on mood as governments around the globe start easing coronavirus restrictions, the report added.

The International Monetary Fund (IMF) last month further revised downwards, growth in Sub-Saharan Africa (SSA) for 2020 from -1.6 per cent to -3.2 per cent due to the effect of lockdowns on economies in the region.

It noted that oil producing countries such as Nigeria and Angola in the continent have been badly hit by the pandemic and had revised Nigeria’s growth forecast for 2020 to -5.4 per cent, from -3.4 per cent.

“South Africa, which is the second largest economy will experience a significant decline of -8 per cent in 2020, mainly due to restrictions imposed on the economy.

“Non-resource intensive countries showed better resilience led by Ethiopia and Uganda,” FSDH Merchant Bank stated in a report.

South Africa’s Borrowing Costs Now Surpass Nigeria’s South Africa’s Borrowing Costs Now Surpass Nigeria’s
South Africa’s Borrowing Costs Now Surpass Nigeria’s
Parrot Nigeria
An online news aggregator

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Private schools right to charge for third term – FG

            The Federal Government has affirmed it is the right of privately owned schools to charge fees for third term...

Covid-19: Buruji Kashamu’s health allegedly worsens, moved to First Cardiology Hospital

There is an indication that the health of billionaire businessman-cum-politician, Senator Buruji Kashamu, who has been receiving treatment for...

A snail can’t be a threat in a race where tigers are involved – Oshiomhole tells Obaseki

                Adams Oshiomhole, former national chairman of the All Progressives Congress (APC), says Godwin Obaseki, governor of the state, is...

Fight breaks out onboard flight after two passengers refused to wear masks (Video)

A serious fight broke out onboard a flight after two ‘drunk’ passengers refused to wear a face masks. People have...

Rahama Indimi doctors ex-husband’s kids out of IBB’s Eid-Kabir photo with grandchildren

Rahama Indimi doctored her ex-husband’s kids out of Ibrahim Badamasi Babangida Eid-Kabir photo with his grandchildren. The image she posted...

[BREAKING] School reopening: Ogun cancels COVID-19 test requirement

            Governor of Ogun State, Dapo Abiodun, on Monday, cancelled the initially announced Covid-19 test requirement for resuming pupils in...

TRENDING

Here is the Nigerian who will buy Shoprite’s stake

          Shoprite, Africa’s largest food retailer, announced on Monday it...

Why Mrs. Ajimobi’s was angry, but she has called, we’ve settled it — Oyo Govt

            The Oyo State Government has settled the rift with...
- Advertisement -

You might also likeRELATED
Recommended to you