The ZSE Ind. is the best performer of the week gaining 7.52%. In order to solve the issue of cash shortage in the country, the country is introducing dollar-backed bond notes announced the central bank Governor John Mangudya. Since the 2009 crisis, the country is facing a shortage in foreign currencies and bond notes should tackle the issue. However, the concept is facing push backs as people look at them as a return to the controversial Zimbabwean dollar. This, despite the fact that the bonds would be backed by a $200mn loan from a multilateral lender.

The ZSE Ind. is the best performer of the week, gaining 10.82% as most heavy weights showed strong performance thanks to solid demand. Moreover, Dr Mlambo, deputy governor of the Reserve Bank of Zimbabwe announced the country would not join the rand monetary union despite calls from business to do so in order to increase its competitiveness. Mlambo cites South African rand’s own challenges and the fact that the country does not have its own currency. He however recognised that using the US dollar was not optimal because of liquidity issues. The strengthening of the dollar against regional currencies has weakened the competitiveness of Zimbabwean goods on the regional market, which has hurt the local industry.

The first week of October started in a positive fashion with 10 out of the 17 indices under coverage evolving in green territories. The Egyptian index was the outlier marking the strongest performance this week.

NSE ASI gained 1.96% this week. In an interview, Central Bank Governor Njoroge stated that the Kenyan economy was “resilient and diversified” enough to survive any potential negative effects from elections next August. According to the governor, prospects are “very good”. He sees capital projects as the solution to boost output and the economy’s global competitiveness. This interview came as investors become more and more concerned about a possible slowdown in output because of declining private-sector credit growth and the risk of frenzied elections.