Business & Tech News
Qatar Buys SA Airlink Stake: Qatar Airways has purchased a 25% stake in South African regional carrier Airlink, marking a significant expansion of its operations in Africa. The investment aims to strengthen the existing code-sharing partnership between the two airlines and boost Qatar Airways’ presence across the continent. Badr Mohammed Al-Meer, Qatar Airways Group CEO, emphasised the importance of Africa to the company’s future, stating that the investment demonstrates confidence in both Airlink and the continent’s potential. Rodger Foster, Airlink CEO, welcomed the partnership, highlighting the expected benefits of increased efficiency, capacity, and marketing reach. Qatar Airways currently serves 29 African destinations, having added nine new routes since December 2020.
Angolan Rail Link Development Announced: The USA has announced that they are funding the building of a rail link in Angola’s Lobito Corridor, a $10 billion infrastructure project connecting the Democratic Republic of Congo to Angola’s Atlantic coast. The agreement highlights its key influence strategy to challenge China’s dominance in Africa. The massive project that will be rebuilding a previously critical railway link, intends to support the export renewal of critical minerals, and promote regional economic development. By investing in strategic transportation infrastructure that will support local economic growth, the US is seeking to offer a competitive alternative to China’s influence via it various infrastructure developments on the African continent.
New Oil Exploration in Uganda: Government geologists are exploring two new regions located in Uganda’s north and northeast, Energy Minister Ruth Nankabirwa told a press conference in the capital Kampala yesterday. The ministry is conducting preliminary petroleum exploration studies in the Moroto-Kadam Basin to assess its oil and gas potential. Similar surveys have started in the Kyoga Basin,” she said, referring to the two new regions. “Early results suggest the potential for commercial oil and gas in the Moroto-Kadam Basin.”
Quantities of crude oil, sufficient for commercial production were initially found in the Albertine Graben basin in Uganda’s west near the border with the Democratic Republic of Congo almost two decades ago, however the new exploration will confirm quantities for the start of new commercial production units that are not projected to commence production until mid-2025.
Market News
Markets: The Dollar weakened significantly against all Major currencies yesterday, falling to 1.1173 against the Euro and to 1.3119 against the Pound at one point. There was a small recovery after the Fed FOMC minutes confirmed that the Fed would be cutting rates in September. The DXY index fell to 101.00 yesterday but currently at 101.20 this morning, with the Euro at 1.1143, the Pound trading at 1.3081, and the Yen currently at 145.38. Analysists are now speculation over a possible recession in the US raising markets risk sentiment once again. The US economy and labour market data, is due to be released today, and this together with US job stats and PMI figures are likely to lead the market direction for the remainder of the week. Emerging Market currencies are trading downwards with the Rand stable at R17.88 against the Dollar.
Commodities: Gold is trading slightly down this morning after hitting new record highs this week, but still maintaining above the $2,500 level – currently at $2507.66. Platinum is trading up at $969 with Palladium trading up at $957. Brent crude has lost ground this morning and is almost 1% down at $75.39 currently and WTI is trading slightly down at $71.75.
Other News Today
Sudan Cholera Outbreak: More than 350 cases of cholera have been recorded in a new outbreak in Sudan in just a few weeks. The situation has been exacerbated by the continued crisis caused by the country’s civil war, preventing health and emergency workers from reaching those in distress. This has led authorities to speculate that many more people than this may have been infected. It has been confirmed that at least 22 people have died from the disease and declared a cholera epidemic after several weeks of heavy rain, which has resulted in contaminated drinking water.
A previous outbreak of cholera in Sudan in 2017, killed at least 700 people and infected an estimated 22,000 people. Apart from this incidence of cholera, the World Health Organization (WHO) has recorded 78 deaths from cholera between the start of this year and July 28 in Sudan, with 2,400 people recorded to have been infected across the country.
Nigerians Fume over New Presidential Plane: Monday, saw President Bola Tinibu depart for France in his new presidential plane, an Airbus A330, which has become the latest addition to the presidential fleet of more than five aircraft. Nigerians have reacted with anger over the latest purchase of the new Presidential aircraft. The President had introduced several economic reforms, including the removal of fuel subsidies, which have contributed to high inflation, currently over 30%. At the time President Tinubu said the reforms were necessary to cut government spending and stimulate long-term growth. This new purchase would seem to fly in the face of the stated policy of spend reduction.
The acquisition of the aircraft comes at a time when the Nigerian economy is experiencing a deep crisis and many struggling to survive in a high inflation cycle in the country. Only a few weeks ago tens of thousands of protestors took to the streets across the country, protesting the high cost of living and corruption within the government.
