Business & Tech News
Indian Investment in Kenya Causes Strike: The Indian Conglomerate Group Adani,headquartered in Ahmedabad, entered into a $1,85 billion investment deal negotiation with the Kenyan Government for the leasing rights for the Jomo Kenyatta International Airport (JKIA) in Nairobi. The Adani Group’s businesses include sea and airport management. The strike started early yesterday morning bringing all flights to a standstill. The Kenya Airport Workers Union, who lead the protests, objected to the planned, saying they feared there would be job losses. The Kenyatta Airport is one of the main airport hubs in the region and the protest action left hundreds of passengers stranded. The strike ended late yesterday after assurances from the Kenyan government that the deal would not go on without the Unions approval and said that the build-and-operate agreement with the Adani Group would see JKIA renovated and an additional runway and terminal constructed.
Ugandan Oil Boost Projection: After nearly 20 years of delay, Uganda is expected to finally start oil production and the export of crude oil next year from fields in its western regions. Commercial reserves were discovered in 2006 however disputes with oil firms over their development strategy and lack of infrastructure had delayed production. At peak Uganda is believed to be able to produce up to 240,000 barrels of oil per day from its large 6,5 billion barrel reserves. According to a report by the IMF, the oil production will translate into double digit economic growth. The IMF projections show a 10,8% growth in the 2025/2026 financial year. Their previous projection was for a growth of 6,2%. The knock on effect to the economy is expected to be massive and is expected to impact general standards of living and address the balance of payments on a macro level for the country.
Ai Development Support Pledged by US: A two-day Pan-African Ai conference, co-hosted by the United States concluded Wednesday in Lagos, Nigeria. In his closing remarks, the U.S. deputy secretary of state, Kurt Campbell, commented “We aim to foster collaborations between the United States and Africa AI researchers, policy makers and industry leaders, so that we can work together to drive innovation and address common challenges. This will enable us to share the benefits of AI globally.” The African Union launched the continent’s Artificial Intelligence Strategy in July this year, indicating AI’s pivotal transformation opportunity that exists in Africa, and it called on member states to adopt the strategy. On Tuesday, Nigeria’s minister of communication, innovation and digital economy, Bosun Tijani, announced a $61,000 grant for Nigeria’s brightest AI start-ups. “For us to truly harness artificial intelligence for our collective benefits, we must be deliberate and collaborative in our approach,” said Tijani. Africa currently represents only 2.5% of the global AI market, according to the Artificial Intelligence for Development Africa.
Market News
Markets: The US markets gained momentum yesterday with the dollar strengthening. The NASDAQ, jumped 2,17% while the S&P 500 grew just over one percent and the Dow Jones was 0,3% up at closing. In Asia this morning, Japan’s Nikkei took its cue from the US markets and closed at 36833, up a significant 3,41%. The Hang Seng in Hong Kong closed slightly lower at -0,73% or 17108.
Currencies: The US Dollar has strengthened some, after a week in the doldrums, and is trading at 1.108 against the Euro, at 1,3041 against the Pound, and at 142.60 against the Yen. Emerging Market currencies are trading flat against the Dollar this morning, with the rand currently trading downward at R17.92 against the Dollar.
Commodities: Gold continues to hold above the $2500 level and is currently trading at $2,516, while Platinum and Palladium are on a definite upwards trend with Platinum currently trading at $959 and Palladium breaching the $1000 mark and currently trading at $1024 in a trend that will help boost South African Mining operations. Brent crude prices have found a little support with prices above the $71 range and currently trading at $71.59 with WTI still trading below the $70 mark at $68.29 currently.
Other News in Africa Today
Algerian Election Results Challenged: Algerian opposition parties have undertaken a legal challenge to challenge the outcome of the recent presidential election held last week. Two opposition candidates, Abdellali Hassani Cherif and Youcef Aouchiche filed a court appeal on Tuesday. They have rejected the outcome in its entirety and have criticised the National Election Authority (ANIE) saying that the 95% vote that was attributed to incumbent President Abdelmadjid Tebboune, by the election officials, was sufficient evidence in itself that the vote count had been rigged. While the election of Tebboune may well be re-confirmed, the opposition leaders want it to be proven that there was in fact election fraud. Tebboune had excluded other presidential candidates from participating and had had others arrested prior to the election in what was claimed to be clear election interference and intimidation.
UN Security Council Opens African Seats: According to a Reuters report this morning, the United States will support a motion to create two permanent United Nations Security Council seats for African states and an additional seat to be rotated among small island developing states. This will apparently be announced by the U.S. Ambassador to the U.N. Linda Thomas-Greenfield today (Thursday). The planned announcement is one of several new initiatives taken by the US in warming relationships with Africa in a diplomatic move seen as an attempt to repair ties with Africa. There has been growing tensions with some African States expressing unhappiness about the US support for Israel’s war on Gaza. Africa has also been building a closer relationship with China as illustrated by the recent China Africa Summit that was attended by over 50 African Leaders, and this and other initiatives seem to be aimed at building stronger ties with Africa.
