In this episode of No Free Lunch, host Greg Stewart engages with Conway Williams, head of credit at Prescient Investment Management, to explore the intricacies of the bond market. They discuss the fundamental nature of bonds, the current dynamics affecting credit pricing, and the role of asset management in navigating these challenges. The conversation also delves into the impact of state-owned enterprises on market liquidity and the implications of global trends on local bond markets. Throughout the discussion, the importance of understanding risk and making informed investment decisions is emphasised. Key Takeaways Key quotes from Conway Williams:
Author: Greg Stewart
Business News Today African Debt Repayments Concerning – S&P S&P Global Ratings has warned that African governments face a heavy debt repayment schedule of approximately $90 billion in 2026. Egypt alone accounts for nearly one-third ($27 billion), followed by Angola, South Africa, and Nigeria. The agency expects credit conditions to stabilise rather than improve, with high rollover risks and elevated borrowing costs persisting. South Africa’s total gross government debt (domestic + external) is projected to peak around 79% of GDP in fiscal 2025/26 before stabilizing/declining slightly. VW South Africa Faces Uncertain Future Volkswagen South Africa (VWSA), a key player in…
Dollar Millionaires in Africa Growing but Concentrated The infographic alongside is from Visual Capitalist, based on the 2022 Henley & Partners Africa Wealth Report, showing total private wealth at $2.1 trillion, heavily concentrated in cities like Johannesburg ($239B), Cape Town ($131B), Cairo ($128B), Lagos ($97B), and Nairobi ($48B). It highlights four main regions—South Africa, Egypt, Nigeria, and Kenya—with Morocco as a notable addition. These areas account for the bulk of Africa’s high-net-worth individuals (HNWIs: those with $1M+ in assets), billionaires, and investment inflows. For context, updated data from the 2025 Africa Wealth Report shows total private wealth has grown to…
Business News Today Ethiopia’s Bond Battle A key investor group in Ethiopia’s sole international bond announced yesterday, that it planned to take legal action after the country’s bilateral creditors blocked an initial agreement with the government on how to restructure the debt.Ethiopia said on Friday it it would reopen negotiations with investors, in order to set out the terms of restructuring the $1 billion bond after the Official Creditors Committee, chaired by China and France, said the draft deal did not meet the Comparability of Treatment principle under the G20 restructuring initiative. “The Committee (of bondholders) considers the determination,…
In the global startup ecosystem, a stark disparity continues to persist. While regions like the United States, India, Vietnam, and Indonesia attract billions in venture capital with larger average deal sizes, African startups often receive smaller tranches and face limited overall funding. In 2025, global startup funding totaled around $275 billion, but Africa captured only about $3.6 billion of this funding or roughly 1.3% of the pie, this despite the continent’s market size with population exceeding 1.4 billion. The bias, is not without cause and stems from perceived risks, including infrastructure gaps, regulatory hurdles, and macroeconomic instability, which deter international…
Business News Today UK Signs Ethiopian Energy Deal During a visit to Ethiopia yesterday, Britain’s Foreign Minister Yvette Cooper signed agreements to advance two energy-transmission projects led by UK investment organisation Gridworks. The partnerships focus on improving trade, creating thousands of jobs, and addressing economic drivers of migration from the Horn of Africa. The initiatives aim to enhance Ethiopia’s energy infrastructure, support private-sector growth, and provide alternatives to irregular migration through employment opportunities. Cooperation also includes stronger law enforcement measures against smuggling networks. The deals form part of broader UK efforts to build economic resilience in Ethiopia while tackling…
Nersa Confirms Tariff Cut On January 29, 2026, the National Energy Regulator of South Africa (NERSA) approved Eskom’s application to reduce electricity tariffs by approximately 35% (from R1.36 per kilowatt-hour to 87.74 cents per kWh) for two ferrochrome smelters – the Glencore-Merafe and Samancor smelters.. This relief is temporary, and will last for a 12 month period starting from January 2026, and is intended to prevent further closures and job losses in the sector. The approval is conditional on the South African government funding the revenue shortfall to Eskom, ensuring that standard tariff customers (like households and other businesses) do not…
Business News Today Tesla To End Model S and Model X Production Tesla is planning to end production of the Model S sedan and Model X SUV, CEO Elon Musk announced on Wednesday during the company’s quarterly earnings call. The global EV manufacturing giant will make the final versions of both electric vehicles next quarter, he said, adding that his company will offer support for existing Model S and Model X owners “for as long as people have the vehicles.” “It’s time to basically bring the Model S and X programs to an end with an honourable discharge, because we’re…
In January 2026, the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC), led by Governor Lesetja Kganyago, opted to maintain the repo rate at 6.75%, with prime lending rates steady at 10.25%. This decision, marked by a split vote, underscores ongoing debates within the committee about the path forward. Kganyago cited a current inflation rate of 3.6%, global uncertainties, and risks from food prices and electricity tariffs as pivotal factors. While this stance has helped stabilize the rand and reduce bond yields—easing the government’s substantial debt burden—it has drawn criticism for prolonging economic strain on businesses and consumers. High…
BMW Committed to Auto-Sector Growth BMW Group South Africa yesterday gave an update of the group’s performance from 2025 and confirmed the auto-makers ongoing commitment to building a strong automotive manufacturing industry in South Africa. CEO, Peter van Binsbergen, outlined their 2025 performance and strategic direction for the year ahead during its Start-of-Year Media Update, highlighting record premium segment leadership, strong local production and continued recognition across product excellence, people practices and corporate responsibility. In 2025, the BMW brand achieved its highest-ever premium segment share locally, exceeding 46,15%, despite ongoing affordability pressures and intensifying competition in the South African automotive…
