Business & Tech News
Rand Dips on Budget Delays:
The South African rand (ZAR) depreciated to a more than two-week low of 18.60 to the US dollar at one point, after Finance Minister Enoch Godongwana delayed his annual Budget Speech that was expected to be tabled in the SA parliament yesterday (19 Feb). This was the first finance speech delay in 30 years since the beginning of the democratic dispensation in the country in 1994. The postponement until March 13, highlights growing divisions within the coalition government.
The delay came after the Democratic Alliance (DA), the main partner in the coalition, or Government of National Unity (GNU), announced earlier in the day that it would not support a budget that includes a VAT increase of 2%. Godongwana had been widely expected to announce a VAT hike of one to two percentage points, but the ANC would require the DA’s backing to pass the budget. Other political parties within the GNU were apparently also not prepared to back the budget. South Africa is facing an ongoing difficult fiscal situation, with weak economic growth and government spending outpacing tax revenue collection, and exacerbated by a by rising debt-service obligations, expanding social grant programs, and continuous bail-out programs for failing state-owned enterprises adding to the pressure.
Lenovo Delivers Growth in Profit and Market Share:
Asian technology group Lenovo, have reported a 20% rise in their third-quarter revenue this morning, as the global PC market starts to see improvements in sales. Lenovo, the world’s largest PC maker, reported revenue of $18.8 billion for the quarter ended December 31 2024. This exceeded analysts’ expectation of $17.82 billion, LSEG data showed. The company’s net profit came in at $693 million, against analysts’ estimate of $367.7 million. Lenovo has maintained its position as the largest PC distributor globally for the period, and holds a 24.5% market share with shipments growing by 4.8%, IDC data showed. The company has diversified beyond its core PC business in recent years, expanding into software and services. It has also positioned itself to benefit from the booming demand for artificial intelligence (AI) applications by growing its AI server and software businesses.
Gold Hits a New-All-Time-High As Trade Tensions Persist:
Prices on gold have held above $2,930 per ounce on Thursday, and have hit a fresh all time high of $2944 this morning as investors continued to assess the latest FED meeting minutes. The January meeting minutes underscored Fed policymakers’ call for more evidence of sustained disinflation while highlighting concerns that trade policy shifts, such as higher tariffs, could add to inflationary pressures. Markets are currently pricing in a single interest rate cut for the reminder of 2025, with a smaller possibility of a second. The Yellow metal’s safety appeal remained strong as global uncertainties persisted.
The US president’s recently announced plans for a 25% tariff on autos, along with duties on semiconductors and pharmaceuticals, has been escalating trade tensions. Investors are also closely watching US-Russia peace talks on the Ukraine war, though Kyiv’s exclusion has raised concerns about potential delays. Elsewhere, China kept its benchmark lending rates unchanged, signalling a cautious approach to monetary stimulus.
Barrick Back in Business in Mali:
Barrick Gold, the Canadian based mining group, has reportedly signed a new agreement with the Malian government that would see the end of a year’s-long and expensive dispute over its mining rights and operations in Mali, according to a report from Reuters. According to company insiders, Barrick has signed the agreement and it will now be left to Mali’s government to officially formalise the deal. It is believed that an official announcement could be released today (20 Feb).
Barrick has had a torrid time in Mali of late and have been locked in a dispute with the Malian Junta government since 2023. The dispute was over the implementation of Mali’s new mining code that allows the government a greater share in the gold mine. As part of the new agreement, Barrick will pay a total of 275 billion CFA or $438 million to the Mali government, in return for the release of detained employees, seized gold, and restarting the operations at the Loulo-Gounkoto mine.
Markets by Numbers
Currencies:
The US Dollar is currently trading at 1.04316 against the Euro, at 1.25960 against the Pound, and also slightly weaker against the Yen at 150.93 Yen to the dollar currently. The rand has lost ground after a budget speech delay over disputes around tax rates and is trading at R18.50 against the dollar currently.
Commodities:
- Gold prices have lifted to a new record high and trading at $2,944 currently. Copper is trading at 4.5770 currently. Silver has traded upwards this morning, and at 32.855 currently.
- Platinum prices are trending softer and at $981 currently, while Palladium prices are currently trading at $989
- Brent Oil prices are trading Higher at $76.01 currently with WTI also trading upwards at $72.03 currently.
- Cocoa futures have levelled this morning, with prices currently at $10157 per ton.
- Coffee prices have gained fresh momentum this morning, and trading at $424.78 currently.
Crypto Currencies:
- Bitcoin has seen prices trade upwards this morning, and is currently trading at $96923.
- Ether prices are also moving upwards and at $2727 currently.
- $Trumpcoin saw an 7% drop in price today and currently trading at $16.08
(All prices quoted at approximately 08H45 – Central African Time)
Other News in Africa Today
Falsified Education Certificates Land Kenyan Politician in Detention:
A Kenyan parliamentarian has been charged for allegedly forging academic certificates. This was disclosed by Kenya’s public prosecutor yesterday (19 Feb). George Koimburi, the Member of Parliament for the Juja constituency, is facing six charges; three for allegedly falsifying academic documents and three for presenting them as genuine. He pleaded not guilty and was released on cash bail. Prosecutors claim Koimburi forged his high school certificate and two university course participation certificates. Under Kenyan law, parliamentary candidates must have a minimum education qualification of completed high school. Cases of politicians presenting fake academic credentials are not uncommon in Kenya, although successful prosecutions have been a rare occurrence.
UN Call for Urgent Action in Congo:
African officials of the United Nations, have strongly cautioned an emergency meeting of the U.N. Security Council yesterday (19 Feb) that the ongoing offensive of Rwanda-backed 23rebels in the eastern regions of Congo is threatening peace across the wider central African region. “It is imperative that this council takes urgent and decisive steps to avert a wider regional war,” said Bintou Keita, U.N. special envoy for Congo.
The seizure of major cities, including the key city of Bakavu and Goma in eastern Congo, by the River Rebel Alliance group that includes the M23 Rebels, has created a humanitarian crises and escalated regional tensions. The offensive by the rebels in the area in recent weeks and statements by key parties show that “the risk of a regional conflagration is more real today than ever before,” said Huang Xia, U.N. special envoy for Africa’s Great Lakes region, which includes Congo, Burundi, Rwanda and Uganda. France’s U.N. Ambassador Nicolas De Riviere urged the council to quickly adopt a draft resolution circulated by his country two weeks ago that reaffirms support for Congo’s territorial integrity and sovereignty and also urges an end to the M23 offensive and the withdrawal of Rwandan troops, and calls for the urgent resumption of talks.
