Daily Watch – Pick n Pay to exit Nigeria, Soldiers killed in Chad army base attack

The Central Bank of Nigeria (CBN) has signed an agreement with the International Finance Corporation (IFC) to expand local currency financing for Nigerian businesses and cut foreign exchange risks, the agencies said in a statement. The IFC, a World Bank Group member, aims to “significantly scale up” its financing in Nigeria, targeting over $1 billion in the coming years, the statement said. The partnership will enable IFC to manage currency risks and increase its investments in Nigeria’s currency across agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry. “Many of these sectors require local currency financing, and IFC’s partnership with the CBN is a key tool in expanding access,” the statement said.

South African grocery retailer, Pick n Pay, says it will exit Nigeria by selling its 51% stake in a joint venture. CEO Sean Summers said the move is part of its plans to restructure outside of its home market. The retailer has two stores in Nigeria, having entered the market less than five years ago through a partnership with A.G. Leventis, Nigeria. On 24 June, Shoprite announced the closure of its Abuja store after evaluating its financial situation and the current business climate, following the earlier shutdown of its Kano store in January 2024. In December 2023, Jumia also announced the shutdown of its food delivery business, Jumia Food, in Nigeria. Several companies, including multinationals like GlaxoSmithKline (GSK) Consumer Nigeria Plc, Procter & Gamble, Sanofi, and Kimberly-Clark, have exited Nigeria, citing its challenging business environment.

Ghana’s Finance Minister Mohammed Amin Adam has disclosed that the International Monetary Fund (IMF) Board is scheduled to meet on 2 December 2024, to discuss Ghana’s Third Programme Review. This review could result in the release of $360 million to the Bank of Ghana to support the government’s budget and balance of payment needs. The upcoming board meeting follows a staff-level agreement with the government earlier this month after the IMF’s visit to review data through June 2024. “This disbursement by the IMF Board will bring the total funds received since Ghana signed up for the IMF programme to $1.92 billion,” Amin Adam announced at a press briefing in Washington, DC, during the Annual IMF/World Bank Meetings. He stated that Ghana has met all requirements for approvals and disbursements under the IMF programme.

Around 40 soldiers were killed in an attack on a military base in Chad’s Lake region over the weekend, the country’s presidency said on Monday. President Mahamat Idriss Deby was in the area on Monday to launch an operation to track down the assailants, a presidency statement said. The presidency blamed Sunday’s attack on Boko Haram in a second statement issued on Monday. The Lake Chad region has repeatedly faced attacks from insurgencies, including the Islamic State in West Africa and Boko Haram, with no group claiming responsibility. In March, an attack the government blamed on Boko Haram killed seven soldiers, reviving fears of violence after a period of peace following a successful 2020 operation by the Chadian army to dismantle the extremist group’s bases there.