Business & Tech News
Egyptian Investment Rallies Bonds: The past week has seen Egyptian bonds rally to a two-year high, driven by recent gains in their currency and the announcement by Egypt’s Prime Minister, Mostafa Madbouly, who on Thursday announced that the planned Saudi Arabian investment of $5 billion in Egypt is independent of funds the Gulf state has already deposited in the country’s central bank. Egyptian sovereign dollar bonds rallied to fresh two-year highs, with the 2059 maturity gaining the most, rising 1.35 cents, to bid at 77.60 cents on the dollar, according to trading data. Near-term maturities bid as high as 99.52 cents yesterday.
Banana Boost for Malawi: Banana Production in Malawi has begun to recover after most of the production was wiped out in 2016. The plant Virus Banana-top-bunchy virus or BBTV killed of the majority of banana plantations and destroyed the livelihoods of almost 200 000 farmers. The disease leads to yield losses of 70% to 90% in the first season, with subsequent seasons seeing no bananas at all. Banana production is gradually normalising due to collaborative programs between the U.N.’s Food and Agriculture Organization and the Malawi government aimed at revamping the banana industry. Malawi is also receiving support from the Chinese government, which is carrying out a “School Banana Orchard Establishment” initiative aimed at growing bananas at primary and secondary schools across the country.
Fuel Prices and Refinery Profits slump: The International Energy Agency projects diesel and gasoline demand this year to contract by almost one percent with an average of 28.3 million barrels per day. While demand for gasoline, jet fuel, LPG and fuel oil is expected to grow. The impact of a contracting economy in China is creating a knock-on effect for fuel refinery profits with European diesel margins falling to about $13 a barrel in August, their lowest since December 2021. New refineries such as the Nigerian Dangote refinery in Nigeria, with its 650 000 barrel-a-day production capacity is causing the closure of older refineries in Europe. Petroineos confirmed it would close its Grangemouth refinery in Scotland, with further shutdowns expected in Germany as well. Brent crude has also been hitting two year lows with prices falling below $70 a barrel for the first time in over a year.
Gas Production to Resume: According to a statement by Egyptian Prime Minister, Mostafa Madbouly, Egypt are anticipating a return to full production at its natural gas fields by next year. The announcement signalling the government is moving to settle its arrears with production companies. According to reports earlier this year, the government had provided up to $1,5 billion for arrear payments to foreign oil and gas companies who are operating their gas reserve fields. The arrears were accumulated due to a lack of foreign currency available to the Egyptian Central Bank. The easing of which has come alongside major investments from Saudi Arabia and an improvement in the foreign investments held by the central bank.
Market News
Markets: Yesterday, highlighted just how schizophrenic markets can be, with analysts now not certain what direction the US economy is heading after a 0,5% rate cut by the FED that was the markets anticipated cut. The dollar has firmed and the US markets closed well up yesterday, with the Nasdaq closing 2,56% up, the S&P500 1,7% up and the Dow Jones 1,26% up. in Asia this morning, Japan’s Nikkei jumped 1,53% to close at 37723, while the Hang Seng in Hong Kong is currently up 2% up at 18103.
Currencies: The US Dollar is currently trading stronger at 1.1175 against the Euro, at 1,330 against the Pound, and at 143,69 against the Yen. The rand has continued its form against the dollar and is currently trading at R17.50
Commodities: Gold has breached the $2600 mark and is currently trading at $2,606, while Platinum is currently trading at $989 with Palladium trading at $1085. Brent crude prices have lost steam and are currently trading at $74.61 with WTI trading at $70.91 currently.
Other News in Africa Today
Mali Militia Massacre: More than 70 people are believed to have been killed in an attack by an al-Qaeda-linked militia group in Bamako, Mali’s capital this week, according to reports from diplomatic and security sources. Fighters from the Jama’at Nusrat al-Islam wa al-Muslimeen (JNIM) carried out the attack on an elite police training academy and the nearby airport. A security source, speaking on condition of anonymity, told the AFP news agency that 77 people had been killed and 255 injured in the attack. An authenticated confidential official document put the toll at about 100, identifying 81 victims, AFP added.
Tunisian Election Candidate Jailed: In a repeat of events, a second candidates running in the October presidential election has been sentenced to prison on charges of election fraud that have been denied by his attorney who claimed that the arrest and charges were simply politically motivated. Ayachi Zammel was sentenced to a 20-month imprisonment by a court in the city of Jendouba on Wednesday evening, after finding Zammel guilty of falsifying the signatures he gathered to file the candidacy papers needed to run in the election. Zammel, the head of Tunisia’s Azimoun party is one of two candidates challenging Saied in the North African nation’s Oct. 6 election. His attorney Abdessattar Messaoudi said Zammel planned to conduct his campaign from behind bars. Zammel is among a group of opponents who have faced criminal charges and prosecution. In July, a court sentenced presidential candidate Lotfi Mraihi to eight months in prison on vote buying charges and banned him from politics. Last month, courts sentenced two other presidential candidates — Nizar Chaari and Karim Gharbi — on similar signature fraud charges.
