Business & Tech News
Record Trade Levels with China: The African trade value with China hit a new record of $282 Billion according to the 2023 China-Africa Trade Index, with a 1,5% growth on trade from 2022. The Index references 2000 as a benchmark of trade value. In 2023, China’s imports from Africa was predominantly Fruit, vegetables, Nuts, and flowers, with Nuts seeing a massive 130% growth year-on year. Imports from China to Africa also surged with imports of lithium batteries growing by 291%, China has remained Africa’s largest trading partner for 15 consecutive years, according to the customs reports.
BRICS Bank Signs Rail & Water Loan Approvals: The New Development Bank (NDB) that was established in 2015 by BRICS countries, is a multilateral development bank aimed at mobilising resources for infrastructure and sustainable development projects in BRICS and other Emerging Market development countries, have approved a loan of up to USD 1.0 billion to the Republic of South Africa for financing water and sanitation infrastructure development, plus a R5 billion loan agreement with Transnet, South Africa’s national freight transport and logistics company. This investment will support the modernisation and improvement of South Africa’s freight rail sector.
Egyptian Central Bank Success: The Egyptian Central ban has been stuggling to prop up the value of its currency since September 2021 and had undertaken a program of purchasing foreign assests as a means to accomplish this. Their latest figures for July 2024, indicate that Egypt’s net foreign assets (NFAs) rose by $220 million in the month, to a total of 644.8 billion Egyptian pounds at the end of July from 626.6 billion in June. This was the third consecutive month of growth and follows a period of negative growth of more than two years, according to central bank data.
Significant Stillwater Loss: Mining group Sibanye Stillwater, has released a trading statement today and announced it will report a more than 100% decline in basic earnings for the six month trading period ended in June 2024, largely attributed to lower PGM metal prices which resulted in another heavy loss, this time for its US palladium and platinum mine Stillwater. Sibanye-Stillwater’s share price, is down 30.5% year-to-date., and the share plunged 5% in the first hour of trade on the Johannesburg Stock Exchange this morning.
Market News
Markets: Friday saw the Dollar close the week stronger at 1.1047, 1.3126, and 146.16 against the Euro, Pound, and Yen respectively. The Dollar is trading upwards this morning at 1.1106 to the Euro, 1.314 to the Pound ant at 146.18 to the Yen. US markets are closed for the Labor Day holiday and markets are likely to remain in narrow trading ranges. The Rand traded upwards on Friday, touching the R17.60 level at one stage, but the strengthening in the Dollar saw the Rand lose its early gains and closed at R17.82. This morning, we have the local currency softening further and is currently at R17.86, which is in line with other Emerging Market currencies. The Hang Seng is currently up over 1% at 17 989.17 and the Nikkei flat at 38694.
Commodities: Gold has lost some of its momentum and dropped to $2,497 this morning on the back of the firmer Dollar and is currently trading at $2499.15. Platinum is currently at $932 and and Palladium trading upwards at $972, respectively. Copper and Nickel, have also opened weaker this morning with concerns over demand out of China. Brent crude has also started the new week trading lower at $76.44, and WTI also trading lower at $73.16.
Other News Today
African Leaders head to China for Summit: The South African (SA) Minister of International Relations and Cooperation Ronald Lamola met with his Chinese counterpart, Foreign Affairs Minister Wang Yi, on bilateral, multilateral and geopolitical matters, on Sunday in Beijing ahead of President Cyril Ramaphosa’s State Visit to China at the Summit of the Forum on China-Africa Cooperation (FOCAC) scheduled for this week. China is South Africa’s largest trading partner globally, and SA is China’s number one trading partner in Africa. Total bilateral trade grew from R614 billion in 2022 to R692 billion in 2023. Dozens of African Leaders are due to attend the event with multiple Bi-lateral meetings planned with Chinese President Xi Jinping.
