Africa Market Update - February 2015

MARKET UPDATE – AFRICA | February 2015
The Consumer
Price Index
continues to
trend downwards
further giving
impetus to
subdued yields
in the T-Bill
market. The near
term outlook is
bound to remain
favourable for
investors as
inflation risk
is mitigated by
depressed oil
prices.
Service Sector Growth
Source: Bank of Rwanda, StratLink Africa
Rising income levels have served to make
the wholesale and retail segment buoyant,
driving growth in the service sector. Investors
are bound to maintain keen interest
on this segment of the sector with a view to
cashing in on growing consumption in the
market.
Per Capita Income (USD)
Bids Accepted (USD Mln)
Source: Bank of Rwanda, StratLink Africa
The 91 Day paper closed January 2015 at
4.10% while the 182 Day closed the month
at 5.0%, representing very marginal changes
on each from December 2014. The 364
Day, on the other hand, closed January 2015
at 6.0%, twenty five bps lower than it did December
2014.
T-Bill Yields
Source: Bank of Rwanda, StratLink Africa
Source: BMI 2014, StratLink Africa
DEBT MARKET UPDATE
Yields have been largely stable in the T-Bill
market reporting marginal movement in
January 2015. This is consistent with government
appetite for domestic borrowing
which has registered marginal changes in
the last three months. In the latter part of
2014, we witnessed volatility in yields in
what we believe was occasioned by hiccups
in disbursement of public funds that could
have seen the government reach for domestic
borrowing.
The Consumer Price Index continues to
trend downwards further giving impetus to
subdued yields in the T-Bill market. The near
term outlook is bound to remain favourable
for investors as inflation risk is mitigated by
depressed oil prices.
Consumer Price Index
Source: National Bureau of Statistics, StratLink Africa
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