Browsing: Fitch Solutions

Indonesian businessman Iman Soerjasantosa, the manager of Búzi Hydrocarbons in Indonesia, has unveiled plans for $120 million investment in Mozambique. This investment is aimed at constructing a state-of-the-art Liquefied Natural Gas (LNG) plant.

Soerjasantosa says there is a strong willingness of Indonesian companies to invest in Mozambique, a nation that currently boasts a number of ongoing projects, including seismic studies and exploratory drilling, all designed to uncover and capitalize on additional natural gas deposits.…

• Despite Ghana’s economic woes, Fitch Solutions maintains a 2.9 per cent GDP growth for 2023. The IMF and the World Bank project growth rates below 2.0 per cent.
• The IMF estimates that public debt will remain at 87.8 per cent of GDP in 2023 and 89.2 per cent of GDP in 2024
• Ghana can enhance downstream value-added activities, stabilise petroleum prices, create jobs in the refining industry.

Ghana, previously known as one of Africa’s fastest-growing economies, has encountered obstacles to its growth trajectory due to the economic downturn caused by falling oil prices and the Covid-19 pandemic. This trend has continued to evolve, with economic growth slowing down to 3.6 per cent of GDP in 2022 amidst the global economic shock resulting from the Russia-Ukraine war.

The International Monetary Fund (IMF) estimates that GDP growth is expected to further decrease to 2.8 percent in 2023 before rebounding to 3.9 percent …

• Mozambique’s public debt is expected to drop below 100% in 2023, boosted by the country’s improving economic growth and higher gas revenue
• S&P Global Ratings states Mozambique’s ability to service its rising debt hinges on TotalEnergies SE’s liquefied natural gas project, which has stalled due to terrorism
• TotalEnergies is investing billions in its gas project located in the Cabo Delgado province of Mozambique

Mozambique’s external public and publicly guaranteed debt surged from 61% of GDP in 2016 to 104% in 2018, as undisclosed liabilities were exposed. This led to an unbearable debt service burden, causing Mozambique to default on its debt in 2016. Consequently, credit rating agencies lowered the sovereign’s ratings to selective or restricted default, while the World Bank and the IMF reclassified Mozambique’s external debt as “in distress.”

The revelation of the “hidden” loans had a significant impact on Mozambique, leading to a prolonged economic downturn. The country’s …

• The Nigeria Country Risk report by Fitch Solutions projects Nigeria’s economy to grow by 2.8% in 2022.
• According to data published by the National Bureau of Statistics, the real GDP growth accelerated for a third consecutive quarter to 5.0% y-o-y in Q221, from 0.5% Q121.
• This is on the back of stronger household spending and an increase in crude oil export value.

The Nigeria Country Risk report which has been released by Fitch Solutions has projected the West African country’s economy to grow by 2.8% in 2022.

This is on the back of stronger household spending and an increase in crude oil export value.

The projections were made following expected growth of 2.1% in 2021 from the 1.9% contraction recorded in the previous year, which was affected by the covid-19 lockdown measures.

Government consumption

According to the report, government consumption is expected to rise in the coming year, based on …