Business & Tech News
South African Rand Bounces from Two-Week Low:
The South African rand (ZAR) strengthened to around 18.34 per USD this morning, to a two month high for the currency, driven by a weaker dollar that is due to set a third consecutive week drop today, and a shift in focus away from the delay of the national budget to the G20 meeting. The currency slipped to two-week lows yesterday (19 Feb), after a last-minute postponement of the budget speech over a dispute in the Government of National Unity (GNU) over a proposed 2% additional VAT rate hike.
The Democratic Alliance (DA), which is the second-biggest party in the GNU coalition, was one of the most vocal critics of the proposed budget. Meanwhile, top diplomats from the world’s largest economies gathered in Johannesburg for the two-day G20 talks held for the first time in Africa. While Gaza and Ukraine will dominate discussions, Global South countries, including Brazil, India, and South Africa, are pushing for talks on reform and economic fairness. U.S. Secretary of State Marco Rubio is notably absent amidst recent diplomatic tensions between South Africa and the U.S.
Egyptian Interest Rates Remain Unchanged
Egypt’s Central Bank has left its benchmark interest rate unchanged at 27.25% at the sitting of its February 2025 meeting. The decision making it 11 consecutive months of record-high interest rates in the Egyptian monetary system. The position taken by the Central Bank is aligned with government’s efforts to bring high inflation numbers under control. The inflation rate stabilized at 24.0% in January 2025, slower than the pace observed earlier in the year. Core inflation also remained stable at 22.6% last month, with food inflation continuing to show a deflation trend at 20.8%, while non-food inflation continued at higher levels at around 25.5%. Despite these improvements, inflation remains far above the targeted range of 7% to 9%. Geopolitical tensions in the area and fiscal consolidation measures, including higher prices for fuel, gas and electricity supply, continue to exert upward pressure on inflation.
Nissan in Hopeful Tesla Talks:
After discussions between Nissan and Honda collapsed last week, and Nissan began implementing job cuts and shift reductions, there had been speculation that Nissan could well be heading for a torrid time without much hope of a quick turn-around. Reports this morning indicate that a high-level group of Japanese political and business leaders, which includes a former prime minister, have drafted a proposal to pitch to the Global EV manufacturer Tesla, to by a stake in the Japanese Automaker. The proposal, led by former Tesla board member Hiro Mizuno, has been given support by Japan’s ex-premier Yoshihide Suga and his former aide Hiroto Izumi according to reports. The deal would see Tesla will become a strategic investor with the possibility of Tesla acquiring key Nissan’s plants in the United States, that would benefit its expansion plans. There has been no comment on the proposal by Tesla at this stage.
Mozambique in Economy Crunch:
The fourth Quarter Gross Domestic Product (GDP) numbers for 2024 in Mozambique paint a painful picture with the economy contracting by almost -5% the worst contraction seen in years. GDP declined 4.9% Q4 compared to Q4 in 2023 and compared with a 3.7% improvement seen in the previous quarter (Q3 2024). Violent post-election protests brought the Mozambican economy to a standstill year with opposition parties taking to the streets in what it claimed were false election outcomes. The unrest destroyed government revenue, compounded by increasing national debt and a S&P Global Ratings downgrade of the nation’s long-term local currency credit to CCC- this week. Delays in the rolling out of oil and gas projects in the country due to Islamic insurgents and political instability have hurt the countries hopes of regaining momentum in its economy.
Markets by Numbers
Currencies:
The US Dollar is currently trading weaker at 1.04911 against the Euro, at 1.26634 against the Pound, and also slightly weaker against the Yen at 150.48 Yen to the dollar currently. The rand has regained ground due to the weaker dollar and is trading at R18.36 against the dollar currently.
Commodities:
- Gold prices have softened in trade today after hitting a new record high yesterday, and trading at $2,927 currently. Copper is trading over -1% lower today and at 4.5560 currently. Silver has also traded lower this morning, and at 32.825 currently.
- Platinum prices are trending lower againr and at $974 currently, while Palladium prices are also trading lower and currently trading at $987
- Brent Oil prices are trading Higher at $76.33 currently with WTI also trading upwards at $72.35 currently.
- Cocoa futures have dropped this morning, with prices currently at $10059 per ton.
- Coffee prices have dropped below $400 morning, and trading at $399.51 currently.
Crypto Currencies:
- Bitcoin has seen prices trade upwards overnight and is currently trading at $98425.
- Ether prices are also moving upwards and at $2756 currently.
- $Trumpcoin has had a 3% growth in price today and currently trading at $16.83
(All prices quoted at approximately 08H25 – Central African Time)
Other News in Africa Today
Tunisian Journalist and Commission Head Released:
Yesterday (19 Feb) saw a Tunisian judge order the release from jail, of Tunisian journalist Mohamed Boughalleb, who had been held in custody after criticising President Kais Saied. Former minister, Riadh Mouakhar, was reportedly also freed yesterday. On Wednesday, Sihem Ben Sedrine, an opposition politician and head of the Truth and Dignity Commission, was also released after months of detention. The U.N. High Commissioner for Human Rights had been urging Tunisia to end the politically motivated arrests, arbitrary detentions and jailing of human rights activists, lawyers, journalists and opposition party politicians. Scores of senior politicians, including Abir Moussi, leader of the Free Constituonal Party, and Rached Ghannouchi, the head on Ennahda’s party, two of Saied’s most prominent opponents, still remain in prison since being jailed in 2023.
Boughalleb, was jailed last year, on charge of insulting a public official, which the journalists union said was aimed at silencing the voices of journalists. Opposition parties hope that this move may pave the way for the release of other jailed opposition and media figures.
Congo Requests Chad Support in Conflict:
The Democratic Republic of Congo has requested military support from its neighbouring country Chad, in the hope that they would assist in countering ongoing attacks by a large River Rebel Alliance force that has already captures a significant area of Eastern Congo including two major cities. The Rwanda-backed M23 rebels, who are leading the insurgents have had complete dominance in the fighting so far despite an African union Peace Keeping force supporting the Congo Military. Congo’s Minister of Regional Integration met with Chad’s President Mahamat Idriss Deby Itno this week representing Congolese President Felix Tshisekedi, Chad’s presidency commented on the meeting in a Facebook post. The details on the discussions were however not disclosed, and it is unknown if an agreement was reached. Last week, Reuters reported that Chad’s Foreign Affairs Minister had said that sending military support to Congo was “pure speculation”.
