Business & Tech News
Energy Development in Tunisia Supported by Italy:
A new 400 million Euro agreement between Italy and Tunisia was formalized yesterday during a meeting in Rome between Italian Foreign Minister Antonio Tajani and Tunisian Foreign Minister Mohammed Ali Nafti. The agreement takes the form of a two-year partnership, with Italy pledging the funding to support development initiatives focused on energy transition and the advancement of renewable energy sources. Nafti commented that Tunisia plans on developing advanced “energy corridor” in the country that will advance the countries energy supply.
Italian Prime Minister Giorgia Meloni has given priority to agreements with African nations as part of her development strategy known as the Mattei Plan, named after Enrico Mattei, the founder of the state-owned oil and gas company Eni. The plan aims to generate jobs and development opportunities in Africa, thereby reducing the incentive for individuals to embark on perilous migration journeys across the central Mediterranean. In her first year in office, Meloni witnessed a substantial increase in migrant arrivals, with approximately 160,000 reaching Italy in 2023. Subsequent declines in migrant numbers in 2024 are attributed to this policy.
Egypt Battles with Current Account Deficit:
Egypt’s current account deficit ballooned in Q3, with a total of $5.9 billion recorded in July-September 2024. compared with $2.8 billion in the same quarter a year earlier, the central bank announced yesterday. The 110% growth was according to their statement, caused by Suez Canal revenues that have plummeted by 61.2% to reach $931.2 million in July-September, from $2.4 billion in the same period a year earlier. Current Account deficit in Egypt is expected to be $4,5 USD Billion by the end of Q$ quarter, according to Trading Economics global macro models and analysts’ expectations.
Saudi Arabia’s African Expansion Ambitions:
Saudi Arabia’s Manara Minerals is Actively seeking critical mineral development projects in Zambia to invest in, according to a statement given by minister Paul Kabuswe yesterday. Manara and Africa’s second-largest copper producer held talks on Wednesday after the signing the previous day of a memorandum of understanding (MOU) with Saudi Arabia to cooperate on exploration for new minerals. Saudi Arabia is pursuing deals in critical minerals, including copper and lithium, as part of the strategy being pursued by Crown Prince Mohammed Bin Salman’s to provide alternative income to oil for the country. Manara, a joint venture between the Saudi Arabian Mining Company and the Iranian Public Investment Fund, is in the process of closing a deal, that was started last October, to purchase a stake in the Zambian copper and nickel assets of Canada’s First Quantum Minerals.
Gold Shines as US Inflation Drops
Gold hit a two month high in trade this morning and is trading at over $2,713 per ounce at the time of this report and is on track for a third consecutive week of price rises. Recent U.S. economic data, including lower than anticipated core inflation numbers and disappointing retail sales figures, have turned analysts opinion towards further possible FED rate cuts in 2025. There is now speculation that the Federal Reserve may cut rates more than once this year.
Fed Governor Christopher Waller gave more impetus to this notion commenting that, if economic data continues to weaken, the central bank could implement three or four rate cuts this year. This would spark greater interest in the non-interest-bearing precious metal. The potential of new US protection tariffs that expected to be implemented as part of the incoming Donald Trump administration, could see further inflation increases, and this has also strengthened gold’s position as an inflation hedge. Gold has gained over 1% so far this week.
Market News
Currencies:
The US Dollar is currently trading at 1.02931 against the Euro, at 1.22160 against the Pound, and at 155.58 against the Yen. The Rand has held its position against a stronger dollar, and currently trading at R18.79 to the dollar.
Commodities:
- Gold prices have breached the $2700 mark, with the price currently at $2,711 per ounce, after hitting a two month high of $2713 this morning. Copper continues to trade upwards, and currently at 4.4319, while Silver trading slightly lower this morning Silver at 30.665
- Platinum prices have dropped and is currently trading at $925.40, while Palladium prices are currently trading at $928.50
- Oil prices modulated in trade this morning, with Brent oil currently trading at $81.71 currently with WTI also trading downwards at $79.27 currently.
- Cocoa futures have dropped further overnight with prices currently at $10 468 per ton.
- Coffee prices have lost further momentum, and at $3.26.86 per pound currently.
Crypto Currencies:
- Bitcoin has continued its upward trajectory overnight and prices have extended beyond the $100 000 level, and is currently trading at $101518.
- Ether prices are currently at $3370.61 currently.
(All prices quoted at approximately 08H15 – Central African Time)
Other News in Africa Today
Sudan Leader Sanctioned by US:
The US government, yesterday announced that it has imposed sanctions on the head of Sudan’s army and leader of the government, General Abdel Fattah al-Burhan. This follows sanctions imposed on Mohamed Hamdan Dagalo, the head of the paramilitary group, Rapid Support Forces (RSF) fighting the Sudanese military. The conflict between the two forces has become a fully blown civil war that has raged for almost two years. The conflict has resulted in the deaths of tens of thousands of innocent civilians, and has uprooted over 12 million and driven the country to the point of famine. In a brief statement, the US accused Gen Burhan of “destabilizing Sudan and undermining the goal of a democratic transition”.
The US has also accused Dagalo’s RSF of carrying out a campaign of genocide during the conflict. In announcing the sanctions on al-Burhan on Thursday, Washington said that the army under his command “has committed lethal attacks on civilians” including targeting “schools, markets and hospitals”.
Nigerian Operation eliminates Insurgent Troops:
In a major offensive movement against terrorist insurgents in norther Nigeria, the Nigerian military have killed 76 Boko Haram and Islamic State West Africa Province militants in the country’s north-eastern Borno state in recent weeks, a spokesperson confirmed in a statement yesterday. The insurgents are believed to belong to the armed group Boko Haram and its offshoot ISWAP, who have been waging a deadly insurgency in northeast Nigeria since 2009 that has displaced millions and killed thousands, with Borno at its epicenter. The militants have stepped up attacks in Borno since the new year, including an assault on Dumba community on Sunday where at least 40 farmers were killed. Military spokesperson Major-General Edward Buba said troops killed 24 fighters during offensive operations in Damboa, Bama, and Chibok areas of Borno between Jan. 7 and 13.