Business & Tech News
Unruly Passenger Court Case Grounds Airlink Planes:
Regional Airline, Airlink, has announced the resumption of scheduled flights to and from Nampula, Mozambique, starting Yesterday (9 Jan). The airline’s decision follows guidance and reassurances from South African and Mozambican authorities, confirming that the threat to the airline had been sufficiently resolved to allow flights to proceed without risk. Earlier this week, flights were cancelled due to a claim for damages filed in a Mozambican court by two Mozambican passengers who had been removed from an Airlink flight in Johannesburg on December 7, 2024, for alleged unruly and threatening behaviour.
The claim included an application to seize Airlink aircraft in Mozambique pending the case’s resolution. Roger Vorster, CEO of Airlink said in a statement that while the court order had not yet been withdrawn, Airlink was satisfied by assurances from Mozambican authorities that their aircraft would not be impounded at the Nampula airport. He said the company maintained that the court application was flawed and without merit.
Oil Keeps Upward Momentum:
Oil prices rose further this morning in early trade in Asian Markets and are currently on track for a third straight week of gains. The price surge has largely been driven by icy conditions in norther regions of the United States and Europe driving up fuel demand for heating. Brent crude futures climbed 46 cents, or 0.6%, to $77.37 a barrel at 08H30 SAST and is up by 5,28% in the last month. West Texas Intermediate crude futures gained 41 cents, or 0.56%, to $74.33 and is up by 5,8% in the past month. JPMorgan attributed the gains to growing concern over supply disruptions due to tightening sanctions, and data this week indicating low oil stockpiles in the US. Freezing temperatures in many parts of the U.S. and Europe and improving sentiment regarding China’s stimulus measures are also cited as fuelling increases in prices.
Coal Mining Dispute Affects Indian Steel Maker:
India’s largest steelmaker, JSW Steel Ltd, has been side-lined in a legal dispute that has led to the disruption of a proposed deal to buy a coal concession in Mozambique. The company agreed to buy Minas de Revuboè (MdR) from the estate of Ken Talbot in May of 2024. However, before the deal could be closed, the Mozambican government revoked MdR’s lease to mine the coal deposit, valued at around $50 billion. In August, two months after the license was withdrawn from MdR, the Ministry of Mineral Resources and Energy published a notice in Mozambique’s state-owned newspaper offering a 30-day window for any objections to the concession being awarded to Stonecoal SA.
Four of Stonecoal’s five directors are employed at Jindal Steel & Power Ltd. The loss of the rights has triggered a legal battle between MdR and Mozambique’s government, leaving JSW as an observer. It comes at a critical time for the country, after disputed elections last October triggered demonstrations in which at least 278 people have died. That will test Daniel Chapo — due to be inaugurated as president on Jan. 15 — who has prioritized stability for international investors.
Market News
Currencies:
The US Dollar has strengthened sharply overnight and is currently trading at 1.028,33 against the Euro, at 1.2276 against the Pound, and at 158.35 against the Yen. The Rand continues to take a beating against the stronger US currency, with the currency currently trading at R18.95 to the dollar and may well breech the R19.00 to the dollar level.
Commodities:
- Gold prices continue to gain momentum in trade today, with the price currently at $2,677 per ounce. With Silver and copper continuing to see support and gains in prices today. Copper is currently at 4.2896 and silver at 30.282
- Platinum prices gained momentum over-night but currently flat today, and is currently trading at $977.60 and up over 4,6% for the week, while Palladium prices have held above the $900 level and currently trading at $927.50 and up by 2,66% for the week
- Brent prices have surged this morning, and currently trading at $77.36 currently with WTI also trading upwards at $74.32 currently.
- Cocoa futures have fallen below the $11000 mark, with prices currently at $10 977.50 per ton.
- Coffee prices have dropped overnight and at $3.18.41 per pound currently.
Crypto Currencies:
- Bitcoin has stabilised in trade this morning, and is currently trading at $94130.
- Ether prices have also dropped slightly today, and is trading at $3274.80 currently.
(All prices quoted at approximately 08H50 – Central African Time)
Other News in Africa Today
Opposition Leader in Mozambique Returns:
Venancio Mondlane, the main opposition presidential candidate of PODEMOS, Mozambique’s main opposition party, returned from exile yesterday (9 Jan) after a self-imposed exile. Government forces had fired tear gas and live ammunition at a crowd of his supporters who gathered outside the international airport in Maputo, to welcome him home. Reports indicate that three opposition supporters were shot and killed by state police. Venancio Mondlane had fled Mozambique in October last year, following a disputed election result, that has sparked months of violent protests and caused chaos throughout the country. He had cited fears of being assassinated after two senior members of his party were killed in their car by unknown gunmen in a late-night drive-by shooting in the aftermath of the election.
Crowds of Mondlane’s supporters were expected to gather in Maputo for his return, prompting the clampdown by security forces. PODEMOS together with other opposition parties have accused the ruling party of rigging the election, with international observers also reporting irregularities in the vote and the alteration of some results. There has been some friction within the party regarding the way forward as Mondlane wished to continue with protests while the party leadership believes that they need to negotiate a settlement.
Kenya Hosting Agriculture Think-Tank:
Kenya Are hosting a group of Africa’s agriculture ministers, who are meeting in Uganda this week to strategize the best way to transform the continent’s food production systems. The gathering aims to create and agree on a 10-year action plan to reduce Africa’s reliance on food from outside the continent and to adapt its farming practices to embrace modern method and technology. There are over 2,000 delegates meeting in Kampala to discuss sustainable agriculture and food production systems. Speaking at the opening of the summit, Uganda’s prime minister, Robinah Nabbanja, urged ministers to provide policies and solutions that can make the continent food self-reliant.
