Finance, Stock markets & Economic :: Market news

Rpt africa money mozambiques cashews get dose of dutch disease


(Repeats to fix formatting)By Marina LopesMAPUTO, Sept 21 Mozambique's cashew industry is ailing, and the symptoms point to a bad bout of "Dutch disease."In a nutshell, this illness strikes an economy when the discovery of a resource such as oil draws in a flood of dollars, boosting the local currency but making all other exports uncompetitive. The term was coined to explain the decline of manufacturing in the Netherlands after the discovery of North Sea oil and gas in the late 1950s. In Mozambique's case, an investment boom in the nascent coal and gas sectors hoisted the metical by a whopping 33 percent against the dollar from September 2010 to the end of 2011. It has since held on to the bulk of those gains. Foreign direct investment soared to $2.1 billion last year - when the metical was the top-performing currency against the dollar - compared with just $7.8 million in 2010, central bank data showed. While the government will welcome the money, it has crushed any cashew comeback and put the livelihood of tens of thousands of peasant farmers at risk in a country where agriculture still accounts for a third of gross domestic product.

The tropical southeast African nation and former Portuguese colony was once the world's top producer of the coveted nuts, but - as with most of its economy - the industry was gutted when civil war erupted after independence in 1975. The end of conflict two decades ago allowed the cashew sector to sprout anew, and in 2010, sales rose to a post-war peak of 113,000 tonnes, the third-highest in Africa behind Ivory Coast and Guinea-Bissau, according to the Ghana-based African Cashew Alliance. But sales then tumbled to 63,000 tonnes last year. Market and industry players say the currency's appreciation prompted buyers in India, where most of Mozambique's cashews are processed, to search for cheaper options elsewhere.

"Prices last year got to all time highs and that really hurts demand," said Richard Rosenblatt, of the Richard Franco Agency, a U.S.-based nut broker. Oil-rich Angola, another former Portuguese colony on the other side of Africa, also highlights the impact of Dutch disease on agriculture. Before independence in 1975 and the chaos of its civil war, Angola was the world's fourth-largest coffee producer, churning out 200,000 tonnes of beans a year. Now, a decade after the fighting ended, it is vying with Nigeria to be Africa's biggest oil producer, while its coffee industry remains in a rut with annual output of a paltry 4,000 tonnes.

One solution being explored in Mozambique is to process its cashew nuts at home."The cashew nut is consumed externally so it is the international price that dictates things," said Filomena Maiopue, director of the National Cashew Institute in the capital, Maputo."We've reached the conclusion, in discussion with the Ministry of Agriculture, that in order to minimize that effect, we need to intensify local processing," said Maiopue. Even if the government does get its act together, there is little immediate relief in store for farmers as money continues to pour in from mining giants such as Brazil's Vale to develop the Mozambique's vast coal fields. Joaquin Solomon Nhantumo, a farmer in southern Mozambique, has been forced him to grow lettuce and tomatoes in his back-yard orchard to provide for himself and his eight children. But he says there is only one crop that will keep him in business in the long run."The cashew nut is our sole means of survival."

Rpt fitch affirms rating of bfi finance at a + (idn); stable outlook


(Repeat for additional subscribers)Dec 6 (The following statement was released by the rating agency)Fitch Ratings set backNational Long-Term rating of PT BFI Finance Indonesia Tbk (BFIN) at 'A + (idn) 'with a stable outlook, and provide a Long-Term National Rating'A + (idn) 'over the continuous bond program to two the number of maximumIDR2.5 trillion. Funds from the bond program will be used to supportthe growth of the company's business. Bonds under this program must be issued within two yearssince the program was launched in January 2014. Fitch has also providedNational Short-term rating at 'F1 (idn)' above BFIN, bond programs, andstages under the bond program. National ranking in the category 'A' indicates the expectation would risk failurelow pay relative to other issuers or securities inIndonesia. However, a change in circumstances or economic conditions may beaffect the capacity to pay in a timely manner than commitmentFinancial shown by the higher rating categories. National Rating 'F1' indicates the capacity to pay financial commitmentsThe most powerful in a timely manner relative to other issuers or debt securitiesin Indonesia. National rating scale of Fitch, the ratings giventhe lowest default risk relative to the rest of Indonesia. If specific liquidity profile is strong, a "+" is added to theratings given. Fitch also assigned National Long-term rating 'A + (idn)' andShort-Term National Rating 'F1 (idn)' for senior unsecured bondswhich will be published as the first stage of an ongoing bond programto the two above. For this first phase, the amount of the issuance is up toIDR500 billion with a maturity of up to three years.consideration rankingsBonds rated on the same level with the National RatingLong Term and Short Term BFIN. This is because the bondsthese are unsecured obligations, is direct, not asubordinated and senior debt of the company and the equivalent of all the obligationsunsecured and subordinated debt not others.

The ratings reflect Fitch's expectation would BFIN BFIN the capitalstrong with low debt ratio compared to its peers. The ratings also consider the relatively moderate asset quality,were slightly lower in Q313. Returns on assets (ROA) decreased to 7.0% in 3Q13 from 8.3% in 2012,while the ratio of profit to capital (ROE) also decreased to 16.9% of18.8% in the same period. Fitch believes profitability will continuelower in 2014 primarily due to higher credit costs causedweakening economic outlook and increased operating expenses associated withincrease the number of branches and higher funding costs. profileBFIN capital remained healthy with debt ratio slightly increased to1.4x at the end of 3Q13 compared to 1.2x at the end of 2012. The ratio of non-performing loans (non-performing loans) BFIN rose to 1.5% in 3Q13compared with 1.1% in 2012 due to the deteriorating economic environmentas a result of rising inflation and measures Indonesian banks to raiseinterest rates to stabilize the local currency. Fitch expects the declinefurther in asset quality in 2014. However, the increase in the cost of credit willmoderate and restrained considering a diversified portfolio of car financingand the prospects for recovery (recovery) of bad loans caused strongthe company's focus on four-wheeled vehicles with a resale value (resalevalue) is high. Factors Stage Actuator

The existence of a significant weakening in BFIN advantages that have beenmentioned above will put pressure on the ratings. ratingcompanies may also be depressed if asset quality deterioratessignificant because the company continues to pursue high credit growth. The possibility of a small increase in ranking is due to the dependence onfunding of institutions lead to higher liquidity risk. Any change in the national rankings and ratings Term Long TermShort BFIN will affect bond ratings issued. Here are the bonds that have been this site Long-term rating affirmed at 'A + (idn)'

National Short-term rating is given at 'A + (idn)'I Sustainable Bonds 2012 affirmed at 'A + (idn)'Sustainable Bonds I Phase I in 2013 affirmed at 'A + (idn)'Sustainable Bond I Phase II in 2013 affirmed at 'A + (idn)'III bonds affirmed at 'A + (idn)'Medium Term Notes 2012 affirmed at 'A + (idn)'Sustainable Bonds II in 2013 granted at 'A + (idn)'Sustainable Bond II Phase I in 2013 given at 'F1 (idn)'Sustainable Bond II Phase I in 2013 given at 'A + (idn)' var $relatedItems = $('lia "/article/idUSFWN1EU0JJ"BRIEF-Sesac says it will be acquired by Blackstone/a/lilia "/article/riyad-bank-dividend-idUSD5N1E9002"Saudi\'s Riyad Bank recommends lower cash dividend for H2 2016/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $('.related-content.group-one ul'); var $relatedContentGroupTwo = $('.related-content.group-two ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Financials BRIEF-CME Group reached record average daily volume of 15.6 mln contracts in 2016 * Cme group reached record average daily volume of 15.6 million contracts in 2016, up 12 percent from 2015 Dubai Islamic Bank requests proposals for dollar sukuk - sources DUBAI, Jan 4 Dubai Islamic Bank (DIB) has asked banks to submit proposals to arrange a potential U.S. dollar-denominated sukuk issue, sources familiar with the situation said on Wednesday. BRIEF-Colliers International UK acquires hospitality asset management firm * Colliers international uk acquires market leading hospitality asset management firm MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push