Business & Tech News
Mozambique Debt to Income Ration Causes Concern:
Mozambique’s external debt-to-GDP ratio has dropped to 66.2% from 72.1% and with multiple delays in the development of its liquefied natural gas fields, has resulted in concerns that it will be some time, before its external debt service can benefit from the expected gas exports. Their international bonds tumbled earlier this week after a news report that the new government in Maputo is weighing a debt restructuring following months of post-election turmoil. The government debt has been on the increase over the past decade, partly due Islamist insurgency in northern Mozambique that has created delays in development of the gas fields into commercial production.
Although Mozambique’s public debt-to-GDP, fell to 93.7% in 2023 from 100.3% the previous year, it is classified by the International Monetary Fund (IMF) as being at high risk of overall debt distress. An additional hurdle facing the country is Mozambique’s $900 million bond that will mature in September 2031. This would be over and above the external debt arrears, which stood at $1.2 billion at the end of 2023, according to IMF figures, that would also need to be repaid.
Botswana – De Beers Deal a Priority for new President:
Speaking at Davos, Botswana’s new President Duma Boko, commented yesterday that he hoped to clinch a long-delayed sales deal with global diamond giant De Beers. He indicated that this needed to happen urgently and expected finalisation today (24 Jan). He also highlighted Botswana’s need to diversify the diamond rich country’s economy to beyond mineral extraction. Boko, who was inaugurated as president late last year after a landslide election victory that ended nearly six decades of rule by the Botswana Democratic Party, has made the task of finalising the deal with Anglo American’s De Beers unit an early priority.
Boko said his government was in agreement with De Beers on most issues. All that remained was “tidying up”, he added. Botswana and De Beers agreed a new pact in 2023, which would see the government’s share of diamonds from the Debswana joint venture gradually increase to 50% over the next decade. But it was never signed by Boko’s predecessor Mokgweetsi Masisi.
Debswana currently sells 75% of its diamond output to De Beers. Boko said that talks aimed at increasing Botswana’s ownership stake in De Beers – currently sitting at 15% – were “going well”.
Crypto Regulations Committee Created:
Donald Trump has announced the creation of a cryptocurrency working group that will be tasked with proposing new digital asset regulations and are to explore the creation of a national cryptocurrency holding for the US. He also ordered that banking services for crypto companies be protected, alluding to industry claims that U.S. regulators have directed lenders to cut crypto companies off from banking services – something regulators have denied. The order further banned the creation of central bank digital currencies in the U.S.
This comes in tandem with an announcement from the U.S. Securities and Exchange Commission yesterday, rescinded its accounting guidance that had made it very expensive for some listed companies to safeguard crypto assets on behalf of third parties. The crypto industry said that guidance had stifled digital asset adoption. Trump has been a supporter of digital currencies and had promised during his election campaign to be a Crypto friendly president.
Market News
Currencies:
The US Dollar is currently trading slightly softer at 1.04537 against the Euro, at 1.24081 against the Pound, and at 155.24 Yen to the dollar currently. The Rand has strengthened together with emerging market currencies this morning after US President Trump announced at Davos that Interest rates must come down. The rand is currently trading at R18.40 to the dollar.
Commodities:
- Gold prices are now 2,83% up for the week and has continued its upward trend with the price currently at $2,777 per ounce. Copper is up by 1,3% today and currently at 4.3554, while Silver is also trading 1,25% higher this morning at 30.884
- Platinum prices have gained 1,2% in trade this morning and is currently trading at $968.60, while Palladium prices gained overnight and have breached the $1000 mark and currently over 1% higher at $1010.50
- Oil prices continue lower in trade this morning, with Brent oil currently trading at $78.22 currently with WTI also trading downwards at $74.53 currently.
- Cocoa futures have modulated slightly this morning, with prices currently at $11 560 per ton and is up over 5% for the week.
- Coffee prices have gained steam this morning, and at $3.45 per pound currently, up 5,56% for the week.
Crypto Currencies:
- Bitcoin has gained fresh momentum above the $100 000 mark, and is currently trading at $105020.
- Ether prices are currently trading upwards at $3397.50 currently.
- $Trumpcoin lost steam overnight and is currently trading lower at $34,53 down over 7% since yesterday
(All prices quoted at approximately 08H20 – Central African Time)
Other News in Africa Today
Deep Fake Warning from Namibia’s First Lady:
Monica Geingos, Namibia’s former First Lady has appealed to people publicly to be aware of fraudsters who are using her name and deep fake videos and images of her in targeting victims. Manipulated video clips of Geinos that have been shared across social media platforms, appear to show her encouraging people to invest in a foreign exchange scheme. Monica’s husband, Hage Geingob, served as Namibia’s president from 2015 until last year when he passed away. Reports indicate that there have been many victims, some of whom, have lost their entire retirement savings.
In Thursday’s video message, Mrs Geingos said she had been requested to make a public appeal in person as the problem had become “ubiquitous… across social media platforms”.”I’m not a forex person, I’m not on any social media platform asking for any money or giving any loans out or whatever you’re being told, ” she said. She urged people not to “communicate with these fake accounts” but to report them.The TikTok clips have used genuine footage of Mrs Geingos speaking dubbed with a voice that sounds like hers. The bank account details and phone numbers provided are all Namibian.
Kenya to Open its borders to African Travellers:
The Kenyan cabinet has announced this week, that it will soon allow citizens from most African countries to visit the country without a travel authorisation requirement prior travel. The travel policy change is aligned with the goal to enhance regional integration and boost tourism by eliminating the contentious Electronic Travel Authorisation (ETA), currently required for most visitors. The cabinet confirmed that the ETA would be dropped for African nationals, except for those from Somalia and Libya, citing security concerns. Under the new system, visitors would be permitted to enter Kenya without prior visa applications, and would be able to remain in Kenya for up to two months, with East African Community (EAC) members allowed up to six months visit at a time.
Kenya introduced the ETA last year to replace visa requirements, but critics labelled it a “visa under another name.” The country’s position on the Africa Visa Openness Index subsequently dropped 17 places to 46th out of 54 nations.
Other African countries, including Ghana and Rwanda, have introduced similar policies to simplify travel for continental visitors, aligning with the African Union’s push for greater mobility. The Kenyan government also plans to implement an enhanced approval process to ensure smoother entry for travellers, with results promised within 72 hours. The exact implementation commencement date for the policy is yet to be announced, with ministries expected to propose guidelines within a week.
