Page 18 - Continental Reinsurance 2022 Annual Report
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16 2022 Investment Performance Review and Report
Money Market which provided adequate cover and a buffer
The Monetary Policy Committee ("MPC") of the against any short-term shocks in the foreign
CBN at its last meeting on 21 and 22 November exchange market.
2022 increased the Policy Rate by 1.0% to 16.5%
from the previous 15% making it the third The Monetary Policy Committee (MPC) of Kenya's
consecutive time to increase the MPR in 2022. The Central Bank in September meeting increased the
rate, which was 11.5% at the beginning of the Monetary Policy Rate by 75 basis points from
year has been increased by 5% this year to reduce 7.50% in last MPC meeting in October 2022 to
the negative real interest rate gap and to rein-in 8.25%
inflation. Inflation for November of 21.47% was
above the CBN ceiling of 6% - 9% at the time of The Botswana Economy
this report. The real Gross Domestic Product (GDP) grew by
6.3% (year on year) in the third quarter of 2022 in
The last NTB auction in Q4 2022 which was held comparison to the growth of 8.9% in the same
on 28 December 2022 delivered a lower stop rate quarter of 2021. Compared to the second quarter
for the 1-year NTB which closed at 8.49% of 2022, Q3 real GDP by grew by 0.7%. The Q3
compared with the 12% as end of Q3 2022. This 2022 growth was attributed to the real value
represents a 3.51% decrease compared with the added of Diamond Traders and Water & Electricity
last auction in September of 2022 which was at which rose by 35.1% and 28.5% respectively. All
12%. The discount rate on Treasury Bills closed other industries recorded growth of more than 1.9
the Q3 2022 at 2.749%, 7.15% and 8.49% percent apart from Agriculture which grew by
compared to 6.49%, 7.5% and 12% in Q3 2022 0.4 %.
for 91 days, 182 days and 364 days, respectively.
Equity Market The annual inflation rate stood at 12.2% in
November 2022, compared to 13.1% in October
Equity Market 2022, leading to a decrease of 0.9% points. The
The ASI closed the Q4 strong at 51,251.16 main contributors to the annual inflation rate in
relative to 42,716.4 as of 31st December 2021 November 2022 were the major components in
thereby giving year to date return of 19.98%. the Consumer Price Index (CPI) basket,
Quarter on quarter, the market gained 5.21% particularly Transport (6.6%), Food & Non-
relative to the return of 14.77% as at Q3 2022. Alcoholic Beverages (2.3%), Housing, Water,
Electricity, Gas & Other Fuels (0.9%) and
The Kenyan Economy Miscellaneous Goods & Services (0.9%).
The economy of Kenya advanced by 4.7% year-
on-year in the third quarter of 2022, the fourth Botswana Inflation is forecast to remain above the
consecutive quarter of slowing growth, below Bank's 3-6 percent objective range into the
market expectations of a 5.6% rise. It was the medium term but is expected to start falling from
weakest economic expansion since the first the fourth quarter of 2022 and to revert to within
quarter of 2021, amid disruptions caused by the the objective range in the third quarter of 2024.
national election and the prolonged drought
The Monetary Policy Committee (MPC) of the
The overall year on year inflation rate as measured Bank of Botswana, at the meeting held in October
by the Consumer Price Index (CPI) was 9.1%, in 2022, maintained the MPR of 2.65% to promote
December 2022 from 9.2% in September amid a economic. The increase represents a cumulative of
continued sharp increase in the cost of food, non- 1.5% for the year but lower than the 3.75%
alcoholic beverages, transport and energy. On a maintained in February 2022.
monthly basis, consumer prices were up 0.9%,
after a 0.4% increase in the previous month. Botswana foreign exchange reserves as of
October 2022 was USD4.52 billion which
The Kenya Shilling depreciated against USD to declined compared to USD4.8 billion as at
close the quarter at KES123.37/USD (Q22022: December 2021. Year on year, the reserve
KES120.79/USD) from KES113.14/USD as of 31st decreased by 14.20% from USD5.27 billion as of
December 2021. The CBK foreign exchange 30 October 2021 to USD4.52 billion as at October
reserves at the end of October 2022 were 2022.
USD7,271 million (4.10 months of import cover),
