Business & Tech News
IFC Partners with Nigerian Central Bank: In a significant move to improve exchange ability and scale, the central bank of Nigeria has signed an agreement with the International Finance Corp (IFC) to expand local currency financing for Nigerian businesses that will remove foreign exchange risks. At the announcement yesterday, it was indicated that the IFC aims to scale up its financing in Nigeria, targeting over $1 billion in the coming years. The partnership will enable IFC to manage currency risks and increase its investments in Nigeria’s naira currency across the agriculture, housing, infrastructure, and energy sectors as well as in small and medium-sized enterprises, and the creative industry. “Many of these sectors require local currency financing, and IFC’s partnership with the central bank is a key tool in expanding access,” the statement said.
Cocoa Pricing and Production Problems: With a global cocoa market worth $100US billion a year, and African countries producing the majority of the worldwide production, the impact of recent price increases is set to boost cocoa producing nations economies significantly. Ghana, Côte d’Ivoire, and Nigeria, in particular who account for over 60% of worldwide production. There have also been unexpected challenges that are threatening the cocoa crops in the West African cocoa industry. Illegal mining, crop diseases, and smuggling have led to Ghana alone to suffering a significant $700 million revenue loss, highlighting the vulnerability of the region’s cocoa supply chain according to a new report. Ghana’s response to the crisis has been to raise the fixed farm-gate price for cocoa recently by almost 45%. It is hoping this will curb smuggling by offering fair compensation to farmers and boost local incomes. Côte d’Ivoire is expected to follow suit.
Egypt Gas Production Predicament: Egypt’s president has met with Eni CEO, Guido Brusco, and held discussions regarding developments, to improve the current sluggish gas production at the Zohr Offshore Gas field. The Italian energy group said production had fallen after the African country was forced to turn to the liquefied natural gas (LNG) market to cover domestic demand. Egypt was expected to become a mass LNG exporter after Eni discovered the giant Zohr offshore field in 2015. However due to low domestic gas consumption in Egypt, production has been falling since 2021 and reached a six-year low this year. Average production at Zohr was 1.9 billion cubic feet per day (bcf/d) in the first half of this year, well below the peak reached in 2019, fuelling speculation about technical issues and a halt of investment at the giant field. Eni’s Brusco, said the Italian group would start activities to restore some gas output at Zohr at the beginning of next year.
Market News
Markets: Indices in the US closed a mixed bag yesterday with the NASDAQ flat for the day, the S&P 500 gained 0,27% and the Dow Jones closing 0.65% up. The Nikkei closed 0,77% up today at 38903, while the Hang Seng is up by 0,04% this morning at 20599 currently.
Currencies: The US Dollar has strengthened and is currently trading at 1.0811 against the Euro, at 1,296 against the Pound, and at 153.08 against the Yen. The rand has traded flat this morning and is currently trading at R17.67 to the US dollar.
Commodities:
- Gold prices have been slightly softer in trade this morning and is currently trading at $2,729
- Platinum prices are currently trading stronger at $1047, with Palladium gaining almost 3% and trading upwards at $1233 currently
- Brent crude is currently trading over -6% lower at $71.24 with WTI also dropping -5,8% and trading at $67.6175 currently.
- Cocoa prices are currently trading at 5231 pounds,
(All prices quoted at 09H20 CAT)
Other News in Africa Today
US Visa Restrictions for some Ghanaian’s: US Secretary of State Antony Blinken was quoted as saying that the visa policy announced on Monday would be directed only at people “who undermine democracy” and not at the government or people of Ghana. This was after the US State Department announced yesterday that it will restrict visas for people who are deemed to have been responsible for undermining democracy in Ghana. This action has been taken ahead of the presidential and parliamentary elections due to take place in Ghana on 7 December. Recently, the National Democratic Congress party, held nationwide protests demanding an audit of the voter roll. They have alleged that there have been thousands of unauthorised transfers and removals of voter names. Thirteen candidates have been approved by the electoral commission to run in the presidential election.
High Speed Trains and economic Pains: South African President Cyril Ramaposa, announced yesterday that South Africa will soon be experiencing high speed trains across the country, drawing criticism from the public and commentators about the priorities that are seemingly ignoring fundamental social and economic problems faced by the country. Unemployment sits at record high levels while economic growth is completely stagnant in the Southern African State. According to Ramaposa, “The masterplan will cover passenger rail in our cities, including rapid rail. It will also cover high speed rail over long distances between centres”. The substantial work required to develop the masterplan is apparently anticipated to be completed by the end of 2025, according to his weekly letter to the nation. Ramaphosa’s vision of high-speed trains and smart cities is not new and dates back to his 2019 state of the Nation speech, where he said he dreams of South African cities filled with skyscrapers and connected by bullet trains.
