ABUJA (Reuters) &#8211; Nigeria’s capital imports plunged 78.6% in the second quarter year-on-year to $1.295 billion, the statistics office said, as lower oil prices push Africa’s largest economy towards recession.



Nigeria, Africa’s top oil exporter, has suffered its worst crisis in decades as low oil prices triggered by the coronavirus pandemic caused the economy to shrink in the second quarter, slashing government revenues and weakening the naira currency.



The government expects further GDP contractions in the third and fourth quarters. 



Nigeria has seen an exodus of foreign money in its equity and debt market, though foreign investors have been caught up by a shortage of dollars on the currency market as global oil prices collapsed.



“The largest amount of capital importation by type was received through other investment&#8230; followed by portfolio investment&#8230; and foreign direct investment in Q2,” the National Bureau of Statistics said in a report.



Nigeria’s capital imports fell from a peak of $21.32 billion seven years ago to $5.12 billion in 2016 as investment dried up in the wake of a recession, and have barely recovered since then.



A foreign exchange shortage has seen the naira drop to record lows on the black market in recent months after two devaluations and central bank moves to unify the country’s multiple exchange rates.

Nigeria_naira

Nigeria capital imports sink 79% in second quarter as economy shrinks

JOHANNESBURG (Reuters) &#8211; South Africa’s Aspen Pharmacare Holdings Ltd expects growth in its headline earnings per share (HEPS) from continuing operations of between 7-11% for the full year that ended June 30, the company said in a statement on Thursday.



HEPS is the main profit measure in South Africa.



Its HEPS is likely to be between 12.39 rand ($0.7322) and 12.86 rand, it said.



Most pharmaceutical companies were declared essential operations during the country’s coronavirus lockdown, imposed at the end of March, but as most people stayed at home demand for over-the-counter medicines declined.



Revenue growth for the year will be between 8% and 10%, while it will be between 3% and 5% in constant exchange rates, as the rand weakened against most other currencies, Aspen said.



South Africa’s biggest supplier of drugs said the company benefited from positive demand trends in products used in the clinical management of COVID-19, stockpiling of healthcare products and advanced filling of prescriptions during early and peak periods of the spread of the virus.



But most of these benefits were offset due to a decrease in demand as the pandemic progressed, delays in elective or planned surgeries in most regions and reduced infection rates in non-COVID communicable diseases due to social distancing, the company said.



Aspen, which has a 22% market share in sub-Saharan Africa, said impairments for the year were expected to be approximately 1.5 billion rand, as compared with 3.8 billion rand seen last year.



($1 = 16.9224 rand)

Aspen_Place,_Durban_South_Africa

South African drugmaker Aspen expects 7-11% full-year earnings growth

JOHANNESBURG (Reuters) &#8211; South African retailer Massmart Holdings Ltd said on Thursday its first-half headline loss widened to 1.1 billion rand ($65.21 million), as sales at its stores fell due to COVID-19 restrictions.



The company, majority-owned by Walmart and operator of supermarkets and wholesalers, including Makro and Game, said in a statement its headline loss, the main earnings measure in South Africa, dropped by 36% in the six months to June 28 from a headline loss of 800 million rand in first half of 2019.



Sales fell by 9.7% to 39.6 billion rand, with comparable store sales decreasing by the same amount, impacted by trading restrictions on liquor, tobacco, building materials, DIY and general merchandise products like TV sets.



Online sales, however, surged by 95% as consumers shied away from shopping in store to avoid the coronavirus.



The retailer, operating 420 retail and wholesale stores in 13 African countries, impaired certain Game, Cambridge and wholesale cash &amp; carry stores resulting in impairment expenses of 55.5 million rand during the period.



It also incurred restructuring costs of 47.4 million rand following the closure of all of its electronic retail chain Dion Wired stores and 11 cambridge and wholesale cash &amp; carry stores.



($1 = 16.8686 rand)

gettyimages-504773984-594×594

South Africa’s Massmart loss widens to over $65 mln as virus hits store sales

JOHANNESBURG (Reuters) &#8211; South Africa’s mines ministry has given the green light for the sale of AngloGold Ashanti’s last remaining assets in the country to Harmony Gold on condition that it does not delist from the Johannesburg stock Exchange.



Harmony agreed in February to buy rival AngloGold Ashanti’s assets in South Africa, including Mponeng, the world’s deepest gold mine, for about $300 million.



Every sale in the mining industry in South Africa must be approved by the ministry under mineral resources rules in accordance with Mineral and Petroleum Resources Development regulations.



“The Department can confirm that an application in terms of Section 11 of the MPRDA has been received and was approved on 24 July,” the Department of Mineral Resources and Energy (DMRE) said via email.



The ministry said the granting of the application was based on a understanding between AngloGold Ashanti and the department that the company would not disinvest from the South African economy by delisting from the Johannesburg Stock Exchange (JSE) or relocate its headquarters.



AngloGold had said in February it would consider moving its primary listing on the JSE as it streamlines its portfolio. But in August the company said moving its listing was no longer a priority amid the pandemic.



AngloGold said on Wednesday it had not yet received all necessary approvals and was still in talks with government.



“We remain in dialogue with the DMRE in relation to these, and will make the necessary disclosures once those engagements are concluded,” AngloGold Ashanti said.



Harmony Gold said: “We are continuing to engage with the DMRE and hope to conclude the transaction as soon as possible”.

Gold_mines

S.Africa approves AngloGold’s Harmony sale but with conditions

JOHANNESBURG (Reuters) &#8211; South Africa’s Nedbank said on Wednesday it was hopeful the worst impacts of the COVID-19 pandemic were in the past and that bad debts would fall in the next six months, after reporting an almost 70% decline in half-year profit.



The lender had in August already flagged a massive hit to its interim profit citing a spike in bad debt charges due to the coronavirus outbreak.



The company on Wednesday warned that profit for the full-year would likely fall by at least 20% and credit losses would be well above what was expected earlier this year, but added that things would improve going forwards.



“We are hopeful that the worst impacts of COVID-19 and the (Great Lockdown Crisis) are behind us and that impairments in the second half will be lower,” Nedbank said in its results statement.



The bank said its headline earnings per share &#8211; the main profit measure in South Africa &#8211; stood at 438 cents ($0.2605) in the six months to June 30 compared with 1,435 cents a year earlier.



That was mainly due to a hefty impairment charge for bad debts, which increased by 202% to almost 7.7 billion rand ($458.46 million), some of which was a provision for potential future losses.



The company said it was in the process of developing new business plans for the next three to five years and would update investors on these, as well as give revised medium-term targets at its full-year results in March.



It added that it was unlikely to declare a dividend as long as the guidance from the central bank, which asked lenders to hold off on paying out to preserve capital, remains in place.



($1 = 16.7955 rand)

NEDBANK CIB logo

S.Africa’s Nedbank hopes worst is over after posting almost 70% profit drop

JOHANNESBURG (Reuters) &#8211; South African retail chain Edcon has signed an agreement to sell parts of its business to private equity-backed Retailability Ltd, administrators in charge of its restructuring said on Monday.



Edcon, which owns the 91-year old department store chain Edgars, entered into a form of bankruptcy protection in April after a coronavirus-led lockdown hurt the already struggling finances of the company.



“(The deal) not only indicates confidence in the Edgars business but augments Retailability’s already blue-chip level of retail expertise,” said Matuson Associates, administrators of the process.



As a next step in the process, the administrators and Retailability will start work on signing of the sale and purchase agreements for Edgar’s rest of Africa business.



The transactions will close by September and will save a “significant” number of jobs, the administrators said.



Durban-based Retailability, which also runs the clothing outlets Beaver Canoe for men’s fashion and Style for families, has 440 stores and some 2,000 employees in South Africa and neighbouring countries.



These are mainly located outside of big cities where the core of its low to middle income target market exists.



Edcon signed a deal with retailer TFG this month sell select assets of budget clothing retailer Jet.

Edgars

Edcon administrators sign sale of Edgars to Durban’s Retailability

(Reuters) &#8211; Old Mutual expects to post a loss in the first half of 2020, it said on Monday, as it deals with weak business volumes and a spike in business interruption insurance claims due to the COVID-19 crisis.



The insurer forecast a basic loss of between 128.5 and 154.2 South African cents per share for the six months ended June 30, versus earnings of 127.3 cents a year earlier.



The 175-year-old company expects results from operations to plunge by between 61% and 71% to 1.31 billion-1.76 billion rand ($44.56 million-$76.80 million) in the period.



Shares in Old Mutual were 4% lower by 0737 GMT, deepening a 35% drop they have seen since the start of 2020.



New business sales volumes were hurt as most of the group’s tied advisers were unable to sell during the lockdown period due to the partial closure of the branch network and lack of access to customers’ homes, worksites and branches, it said.



While lockdown restrictions have been eased and economic activity has somewhat resumed, sales levels remain below prior year levels, it said.



Old Mutual, whose primary operations are in South Africa, serves retail and corporate customers in 14 countries.



The company named Iain Williamson as its permanent chief executive last month after a year of upheaval caused by the exit of his predecessor Peter Moyo, who was fired over an alleged conflict of interest.



Insurers across the globe have been setting aside billions of dollars as they face steep claims resulting from coronavirus lockdowns, which have shut businesses and led to cancellations or postponements of major events including the Olympics.



Another aggravating factor has been higher credit spreads, which Old Mutual said have led to notable unrealised mark-to-market losses in the unlisted equity and credit portfolios of its investment business.



($1 = 17.0563 rand)

gettyimages-103548801-594×594

Old Mutual forecasts H1 loss as coronavirus crisis hammers volumes

JOHANNESBURG (Reuters) &#8211; South Africa’s rand extended its recent gains on Friday as the dollar was on the defensive on worries about the health of the U.S. economy.



At 0625 GMT, the rand was trading at 17.2200 to the dollar, more than 0.2% stronger than its previous close and on course for gains of around 1% this week.



In the absence of major domestic data releases the rand has moved mainly on global factors this week.



A further easing of the country’s coronavirus lockdown and three days of planned power cuts by ailing state utility Eskom had relatively little market impact.



A Reuters poll released on Friday predicted that Africa’s most industrialised economy would contract by 8.0% this year, a slightly more pessimistic view than official projections.



With the outlook bleak, the South African Reserve Bank is seen keeping interest rates at their current level of 3.50% for much longer than previously thought.



Government bonds were a shade weaker in early deals on Friday, with the yield on the 2030 instrument up 2.5 basis points to 9.30%.

money-bill-note-south-africa

South African rand extends gains versus weak dollar

LISBON (Reuters) &#8211; Portugal’s Sonae has moved to strengthen its position in local telecoms firm NOS by increasing its stake and ditching a partnership with Isabel dos Santos, the daughter of Angola’s long-time former president.



Sonaecom, part of the Sonae conglomerate, said in a filing late Wednesday it had dissolved ZOPT, a 50-50 venture with dos Santos that had held a controlling 52.15% stake in NOS.



Dos Santos was named a suspect in a fraud investigation in Angola in January and her shares in NOS were seized by a Lisbon court in April, depriving ZOPT as a whole of its voting rights.



Dos Santos has repeatedly denied wrongdoing.



ZOPT’s assets, including its shares in NOS, will be equally divided between its shareholders, Sonaecom said in the filing with Portugal’s market regulator CMVM.



Sonae said it in a separate statement it had bought 7.38% of NOS shares from private bank BPI, and was now the telecom operator’s largest shareholder with a 33.45% stake.



Sonaecom had said in April it would contest the decision to deprive ZOPT of its voting rights, saying it was “not liable for the debts of its shareholders”.



Dos Santos has sold or been stripped of nearly all her stakes in major Portuguese firms, with her indirect stake in oil firm Galp now the only one left unscathed by the scandal.



Dos Santos had no immediate comment.



The investigation into her relates to alleged mismanagement and misappropriation of funds during her time as chairwoman of state-owned Angolan oil company Sonangol.



Portugal’s public prosecutor ordered the seizure of her Portuguese bank accounts in February.



In December, Angola froze her stakes in Angolan firms including Unitel, BFA and ZAP MIDIA.

angola-162225_1280

Sonae ditches partnership with Angola’s dos Santos in Portugal’s NOS

JOHANNESBURG (Reuters) &#8211; South African retailer TFG said on Monday it has concluded an agreement to buy select assets of budget clothes retailer Jet from the administrators of rival Edcon and expects to meet all conditions by the end of September.



TFG, known as The Foschini Group, said in July it will buy 371 stores and some assets of Jet for 480 million rand ($27.56 million) in order to expand into the budget clothes market, a segment in which it is not a major player. [nL3N2EK1XF]



It said it has now reached an agreement for the assets in South Africa, where most of the stores it is buying are located. Similar agreements for stores in Botswana, Namibia, Lesotho and the kingdom of eSwatini are expected to be finalised shortly, it said.



The remaining conditions include approval by competition authorities, an agreement with Jet’s landlords on amended lease terms and a deal with credit and financial services provider RCS to continue to operate Jet’s credit book.



Edcon, which also owns department store chain Edgars, applied for bankruptcy protection in April in an attempt to salvage parts of the group. Edcon has been a go-to place for South African shoppers for nearly a century, but ran into financial problems and failed to compete with international fashion chains such as Sweden’s H&amp;M.



($1 = 17.4145 rand)

jettttt

South Africa’s TFG concludes agreement to buy Jet stores, some approvals pending

JOHANNESBURG (Reuters) &#8211; South African petrochemicals group Sasol reported an annual loss on Monday, hit by a writedown of 111.6 billion rand ($6.43 billion) and a drop in oil and chemical prices due to the coronavirus outbreak.



The world’s top producer of motor fuel from coal reported a loss of 91.3 billion rand for the full year ended June 30, compared with earnings of 6.1 billion rand in the prior year.



But core headline earnings per share, the primary profit gauge in South Africa that strips out certain once-off items, fell 61% to 14.70 rand ($0.85) for the year from 37.65 rand a year earlier.



Sasol said earnings were severely impacted by a collapse in oil prices and the economic impact of COVID-19 in the second half of the year despite good production and higher oil prices in the first half of the year.



The company said it recorded impairments of 111.6 billion rand, with 72.6 billion rand related to its base chemicals business and 38.8 billion rand related to other assets mainly in South Africa.



Earnings were further impacted by 3.9 billion rand in depreciation charges and 6.0 billion rand in finance charges for the year as its Lake Charles Chemicals project (LCCP) units reached beneficial operation, Sasol said.



Investors have been concerned by the company’s debt, largely due to delays and cost overruns at LCCP in Louisiana, that forced its former joint chief executive officers to resign in a bid to restore shareholder confidence.



Sasol said total debt for the year stood at 189.7 billion rand, compared with 130.9 billion rand a year earlier.



The petrochemical firm said it would continue to suspend dividends to protect liquidity amid ongoing economic uncertainty.



($1 = 17.3515 rand)

Sasol_Garage_in_Boksburg

S.Africa’s Sasol swings to $5.3 bln annual loss on lower oil prices, writedown

CAIRO (Reuters) &#8211; Egypt’s General Authority for Supply Commodities (GASC) said on Saturday it was seeking soyoil and sunflower oil in an international tender with a deadline for offers on Tuesday.



GASC said it wants at least 30,000 tonnes of soyoil and 10,000 tonnes of sunflower oil, and is seeking the oil for arrival from Oct. 25-Nov. 20.



Traders should submit two separate price offers, one for at sight payment terms and another for a 180-day credit facility payment, GASC said.

sunflower-seeds-1393667091wQv

Egypt’s GASC issues tender for vegetable oils for Oct. 25-Nov. 20 arrival

JOHANNESBURG (Reuters) &#8211; South Africa sugar producer Tongaat Hulett on Friday reported a narrower annual loss thanks to an improved performance at some of its operations and increased land sales, sending shares higher.



Tongaat, which processes sugarcane and maize, posted a headline loss per share from continuing operations of 211 cents for the year ended March compared with a loss of 1,226 cents per share in the same year-ago period.



Full-year revenue rose 18% to 15.4 billion rand boosted by improved performance in its sugar operations and good outcomes in its starch and glucose business, Tongaat said.



Shares in the company rose 6.4% by 0719 GMT to 5.45 rand.



The overall results, however, were weighed down by hyperinflation and the currency dynamics in Zimbabwe.



The company, which has been battling high debt, said it had sought a six-month extension on its debt repayments after a dispute over the potential 5.35 billion rand ($307 million)disposal of its starch and glucose operations to KLL Group, a wholly owned subsidiary of Barloworld.



Tongaat said there had been a potential risk it would not meet its end September 30 and December debt obligations.



The company said it now has until end September 2021 to achieve an 8.1 billion rand debt reduction commitment.



The agriculture and agri-processing company, which was embroiled in a financial scandal after revealing accounting irregularities in 2019, has been seeking to cut debt through selling assets, cutting jobs, raising equity and other measures aimed at boosting cash flow.



Tongaat, which did not declare an interim dividend, said its focus would be repaying debt before it reinstated dividends.



($1 = 17.4112 rand)

sugar-4085174_960_720

South Africa’s Tongaat Hulett reports a narrower annual loss

JOHANNESBURG (Reuters) &#8211; South African retailer Woolworths said on Friday its profits for the 52-weeks to June 28 could plunge by as much as 70% due to the impact of the coronavirus crisis, high tax rate, and adoption of IFRS 16 accounting standards.



Woolworths said its headline earnings per share (HEPS) &#8211; the main profit measure in South Africa- would fall by between 60% and 70% compared to the 342.9 cents it reported a year earlier.



The owner of David Jones in Australia also impaired the carrying value of certain store assets, which will only negatively impact earnings per share and not HEPS.

Woolworths

S.Africa’s Woolworths warns annual profits could fall by 70%

JOHANNESBURG (Reuters) &#8211; South African coal company Exxaro Resources reported a 40% jump in core earnings due to higher coal exports and a favourable exchange rate offsetting one-off items.



Exxaro said earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to June 30 rose 40% to 3.929 billion rand ($224.9 million), boosted by higher commercial coal revenue offsetting higher costs.



Higher coal revenue was mainly driven by increased volumes of sales to power utility Eskom and a 39% rise in export volumes during the half-year, it said.



“Despite sustained global and domestic economic headwinds, compounded by market challenges and COVID-19, Exxaro maintained a resilient financial and operational performance, continuing our positive trajectory year-on-year,” Chief Executive Mxolisi Mgojo said.



However, headline earnings per share (HEPS) fell 24% to 13.21 rand ($0.7561) per share, compared with 17.30 rand a year earlier.



HEPS were impacted by the recognition of non-controlling interest charge of 1.224 billion rand for external shareholders of Eyesizwe RF, a special purpose private company that holds a 30% shareholding in Exxaro.



Coal production increased by 7% to 1,495 kilotonnes, mainly due to its Belfast and Grootegeluk mines.



The coal miner was deemed an essential service during South Africa’s lockdown, which lasted from late March to the end of May.



($1 = 17.4720 rand)

black-coal-1542285036I13

South Africa’s Exxaro reports jump in interim core earnings

ACCRA (Reuters) &#8211; Ghana expects cocoa output of around 900,000 tonnes in the 2020/2021 season, up 5.8% from the forecast for 2019/2020, the country’s Cocoa Board (COCOBOD) said, according to a parliamentary report published on Wednesday.



Ghana is the world’s second-biggest cocoa producer. Its growing season runs from October to September.



The report also said the COCOBOD planned to raise $1.3 billion in syndicated loans to fund cocoa purchases during 2020/21 from a consortium of banks and financial institutions, with the government as guarantor.



The loan will carry annual interest of one month Libor plus 1.75%, a commitment fee of 0.62% per year and an upfront flat fee of 1.25%.

cocoa

Ghana expects 5.8% increase in cocoa output in 2020/2021

JOHANNESBURG (Reuters) &#8211; South Africa’s manufacturing output fell 16.3% year on year in June after contracting by 32.4% in May, the statistics agency said on Tuesday.



Factory production however was up 16.8% in June month on month, but declined 30.2% in the three months to the end of June, Statistics South Africa said.

Investing

Nigeria capital imports sink 79% in second quarter as economy shrinks

South African drugmaker Aspen expects 7-11% full-year earnings growth

South Africa’s Massmart loss widens to over $65 mln as virus hits store sales

S.Africa approves AngloGold’s Harmony sale but with conditions

S.Africa’s Nedbank hopes worst is over after posting almost 70% profit drop

Edcon administrators sign sale of Edgars to Durban’s Retailability

Old Mutual forecasts H1 loss as coronavirus crisis hammers volumes

South African rand extends gains versus weak dollar

Sonae ditches partnership with Angola’s dos Santos in Portugal’s NOS

South Africa’s TFG concludes agreement to buy Jet stores, some approvals pending

S.Africa’s Sasol swings to $5.3 bln annual loss on lower oil prices, writedown

Egypt’s GASC issues tender for vegetable oils for Oct. 25-Nov. 20 arrival

South Africa’s Tongaat Hulett reports a narrower annual loss

S.Africa’s Woolworths warns annual profits could fall by 70%

South Africa’s Exxaro reports jump in interim core earnings

Ghana expects 5.8% increase in cocoa output in 2020/2021

South Africa’s manufacturing output falls 16.3% year on year in June

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Investing

Nigeria capital imports sink 79% in second quarter as economy shrinks

South African drugmaker Aspen expects 7-11% full-year earnings growth

South Africa’s Massmart loss widens to over $65 mln as virus hits store sales

S.Africa approves AngloGold’s Harmony sale but with conditions

S.Africa’s Nedbank hopes worst is over after posting almost 70% profit drop

Edcon administrators sign sale of Edgars to Durban’s Retailability

Old Mutual forecasts H1 loss as coronavirus crisis hammers volumes

South African rand extends gains versus weak dollar

Sonae ditches partnership with Angola’s dos Santos in Portugal’s NOS

South Africa’s TFG concludes agreement to buy Jet stores, some approvals pending

S.Africa’s Sasol swings to $5.3 bln annual loss on lower oil prices, writedown

Egypt’s GASC issues tender for vegetable oils for Oct. 25-Nov. 20 arrival

South Africa’s Tongaat Hulett reports a narrower annual loss

S.Africa’s Woolworths warns annual profits could fall by 70%

South Africa’s Exxaro reports jump in interim core earnings

Ghana expects 5.8% increase in cocoa output in 2020/2021

South Africa’s manufacturing output falls 16.3% year on year in June

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