Business & Tech News
Bitcoin Breaks $100,000 Barrier
In early trade this morning (5 Dec), Bitcoin prices broke through the key $100,000 level to reach aa new all-time high. Trade in crypto currencies have surged since Donald Trump became President-Elect on sentiment that his administration would create a more crypto friendlier regulatory environment. Trumps pick as his new SEC Chairperson, Paul Atkins, is seen as a more Crypto moderate regulator, who has advocated for more digital assets, received widespread support from crypto market players. Bitcoin has surged by over 4% this morning and is trading around the $103,300 level. Other Crypto Coins are seeing a boost with Solana gaining 3,55% and Ether gaining 6,3% this morning.
Biden Pledges Billions to Rail Project
Outgoing US President Joe Biden, has pledged an additional $600 million in funding for the Lobito Corridor, Trans-Africa rail project. Speaking in Angola yesterday (4 Dec), Biden said that “Africa has been left behind for much too long. But not anymore. Africa is the future.” President Biden used the third and final day of his visit to Angola to visit and showcase the Lobito Corridor railway, where the U.S. and allies have already invested heavily to refurbish the 1,300 kilometres of train lines, connecting Zambia, Congo and Angola.
The project has strategically positioned the U.S. presence in a region rich in cobalt, copper and other critical minerals used in batteries for electric vehicles, electronic devices and green energy technologies. By the end of the decade, the rail line is anticipated to be part of the rail development linking southern Africa’s west and east coasts. Biden commented that the time delays for delivery of goods to the US would be drastically reduced, ad would also support the growth of agricultural and food exports from the region.
Exxaro Acts on CEO Allegations
South African coal miner Exxaro Resources announced yesterday (4 Dec) that the board had placed CEO Nombasa Tsengwa on “precautionary suspension” pending an independent probe “into allegations related to workplace conduct and governance practice”. “The Board takes any such allegations and resultant investigations very seriously but makes no presumption as to its conclusion. The company said that it would be guided by the outcome of its investigation before taking any appropriate action, if so required. Exxaro announced that the inquiry will be carried out by law firm ENS, and that the company’s current and long-serving finance director Riaan Koppeschaar, had been appointed to the role of acting CEO. Tsengwa, who was appointed CEO in August 2022, was leading Exxaro’s search for clean energy minerals, mainly copper and manganese. Exaaro’s share price dropped by almost 3% yesterday.
Cocoa Crop Constrained by Weather
Multinational cocoa exporters operating in Ivory Coast, the world’s top cocoa producer, fear a drop in supplies from farmers in near future, coming months after adverse weather hit crops, raising the prospect that some of them might default on supply contracts. So far this season, the volume of beans arriving at ports is up 34% on the same time in 2023-24. But last season was the worst in a decade, according to market insiders. In the Ivorian bush, cooperatives, buyers and middlemen say the bulk of the main harvest was completed in November, and shortages are expected to last through February or March. Typically, the main crop peaks in December, and the mid-crop harvest begins in April.
Market News
Markets: Indices in the US, all closed higher yesterday with the NASDAQ closing up by 1.24%, the S&P 500 was up by 0,61% and the Dow Jones also closing up by 0,69%.
Asian markets this morning have been trending upwards with the Nikkei up by 0,47% and is at 39460 currently, while the Hang Seng is marginally down today by -0.02% and is at 19742.
Currencies: The US Dollar is currently trading at 1.052 against the Euro, at 1,271 against the Pound, and at 150.21 against the Yen. The Rand has weakened against a stronger Dollar although still range bound between R18.10 and R18.18 to the dollar. The Rand is currently trading at R18.16 to the US dollar.
Commodities:
- Gold is trading slightly lower this morning and is currently at $2,647.56 per ounce
- Platinum prices currently trading lower at $943 and with Palladium prices also lower today and at $979 currently
- Brent crude is currently trading slightly lower today and is at $72.34 with WTI also trading lower at $68.57 currently.
- Cocoa prices have gained back some of its losses seen yesterday and is currently 2,6% up in early trade this morning and is trading at 7600 British pounds per ton
- Coffee prices have gained almost 1% and is currently trading at $3.06
Crypto Currencies
- Bitcoin up by 7,62% at $103 300
- Ether up by 6,36% at $3853
(All prices quoted at 08H00 – Central African Time)
Other News in Africa Today
Namibian Election Results Questioned
Questions over the legitimacy of last week’s general and presidential election outcomes have been raised. Ruling political Party, SWAPO, retained its hold on power after more than three decades in power but has had its grip on power loosened – the latest in several African countries where incumbents have had a difficult time at the polls this year.
According to official results, Netumbo Nandi-Ndaitwah, the SWAPO presidential candidate, won the presidential election with 57% of the vote, becoming the country’s first female leader. Opposition parties have refused to accept the outcome after the polls were marred by logistical problems and irregularities citing questions around how it was possible that Swapo increased its share of the presidential vote when in the parliamentary election it recorded its worst-ever performance, losing 12 of its 63 seats and only just holding on to its parliamentary majority.
Social Media Shut-Down by African Authorities Problematic
Within the past year, an increasing trend in Africa has been the sudden shut-down of internet services or social media platforms by local authorities. Digital rights group, Access Now, has documented shutdowns in Kenya, Mozambique, Tanzania, Mauritius and Equatorial Guinea. Nearly all have taken place alongside events such as protests or elections. However, these shutdowns can be harmful to the country’s residents, as was expressed by Felicia Anthonio, campaign manager at Access Now. “It not only disrupts the flow of information, it also makes it impossible for people to access information in a timely manner,” Anthonio said. “When we are talking about crisis situations, information can be like a lifeline, and so, disrupting access could be about life and death in conflict situations.” Governments that restrict internet access in one instance are likely to do so again, Anthonio said.
