Business & Tech News
DeBeers Diamond Deal Done:
The Botswana’s government, has signed off the long-expected diamond sales agreement with De Beers’ holding group, Anglo American. The deal was signed yesterday (25 Feb) and covers a 10-year diamonds sales period with a possible extension period of five more years included in the agreement. The state-owned, Okavango Diamond Company (ODC) a 50-50 joint venture with De Beers – will receive 40% at the end of the agreement, revised from a provisional 50%. ODC’s allocation could see an increase in share to 50% during the proposed five-year extension period, according to a joint statement by Botswana’s government and De Beers.
The agreement outlines that during the initial five-year period, ODC will sell 30% of Debswana’s output, up from 25% previously. The deal negotiations have been ongoing since 2018, with a proposed agreement announced in 2023, never concluded. The deal will further bolster the reputation of newly elected President Duma Boko, who won the presidency in a land-slide election victory late last year.
Copper Catches Tariff Tail-Winds:
The announcement of possible tariffs on copper, by American president Donald Trump, has seen copper futures spike in trade today with a jump of almost 4%, and prices closing in on $4.70 per pound this morning (26 Feb). Copper has hit its highest levels in nearly two weeks with the potential of tariffs on copper imports aimed at revitalizing US production of the metal, pushing the market. The move is viewed as part of Trump’s strategy to counter China’s ambitions to dominate the global copper market, with the metal being essential for manufacturing electric vehicles, military equipment, and a variety of consumer goods.
Analysts also anticipate further upside for copper prices, driven by increasing demand for electrification across the globe, while supply growth is likely be constrained by years of underinvestment in mining exploration and production capacity. Meanwhile, copper supply in China remains abundant, with stocks rising to over 260,000 tonnes—three times the level at the start of the year—while bonded stocks have doubled to 33,000 tonnes.
Bitcoin Falls to Three-Month Low
Bitcoin has plunged by over 8% this week and by more than 12% in the past month as it hit a three-month low yesterday. The price fell below 88000 US dollars per coin to prices last seen in November last year. However, it has grown by over 56% in the past year and some analysts are indicating this was a market reaction to the recent BitByte hack that saw almost $1,5 worth of crypto stolen by hackers, mostly in Etherium coin.
The hack is believed to have un-nerved crypto investors and triggered a large sell-off that undid the regular trading range that Bitcoin had stabilised at over the past few months of just under or over the $100 000 mark per coin. According to Farside data, Bitcoin spot ETFs experienced the second-largest outflow of the year yesterday (25 Feb), of $516.4 million. The withdrawal marks the ninth net outflow in 10 days.
Markets by Numbers
Currencies:
The US Dollar is currently trending fairly flat, and at 1.04895 against the Euro, at 1.26381 against the Pound, and also flat against the Yen at 149.45 Yen to the dollar currently. The rand has weakened slightly against a stronger dollar and is trading at R18.43 against the dollar currently.
Commodities:
- Gold prices have seen a small drop in price today but remains above the #2900 mark, and trading at $2,910 currently. Copper is trading upwards at 4.6697 currently. Silver has also traded lower this morning, and at 31.703 currently.
- Platinum prices are trending lower from yesterday’s close, and at $963.50 currently, while Palladium prices are trading level, and currently trading at $925.50
- Brent Oil prices are lower at $73.23 currently with WTI also trading lower at $69.12 currently.
- Cocoa futures remain depressed and down over -17% this week, with prices currently at $8534 per ton.
- Coffee prices have remained below $400, and trading lower at $378.11 currently.
Crypto Currencies:
- Bitcoin has seen prices trade over -8% lower this week, but seems to have started correcting in early trade today, after hitting three-month lows, and is currently trading at $88601.
- Ether prices have lost over -21% this week and at $2490 currently.
- $Trumpcoin has dropped again this morning by 1,59% and currently trading at $12.92
(All prices quoted at approximately 08H30 – Central African Time)
Other News in Africa Today
Senegal Conflict Resolved with Peace Deal:
In some good news for the African continent, a more than four-decade old conflict has finally reached an end with the signing of an historic peace deal between Senegal and Casamance Separatists yesterday (25 Feb), the Movement of Democratic Forces of Casamance (MFDC). The peace deal, which was brokered via diplomatic efforts from Guinea-Bissau’s President Umaro Sissoco Embalo, was announced at a joint press briefing in Bissau alongside Senegalese Prime Minister Ousmane Sonko. The agreement marks a crucial step towards lasting peace in Senegal’s southern region, which has sought permanent separation from the north of Senegal. Prime Minister Sonko conveyed President Bassirou Diomaye Faye’s gratitude to Guinea-Bissau for mediating the negotiations, which had been ongoing for three days. The peace accord, now brings fresh hope for stability and the beginning of economic recovery in Casamance, bringing closure to the end of one of Africa’s most enduring military conflicts.
South Africa Soldiers Repatriated from Congo:
The South African Defence Force (SANDF) has announced the evacuation of a group of critically injured South African military personnel, who were injured in the conflict areas in Eastern Congo. The soldiers were injured over a month ago and have only now been evacuated by the United Nations back to South Africa. The South African government has come under criticism from many citizens for its ongoing involvement and handling of the whole situation.
South African National Defense Force spokesperson Siphiwe Dlamini stated to The Associated Press that the soldiers had returned to South Africa, but did not specify the number of soldiers that had been repatriated. However, reports from South Africa, indicate that there are hundreds involved, some critically injured. He said they had been receiving treatment in a hospital in the rebel-controlled city of Goma in eastern Congo that had been over-run by the M23 Rebel forces. Another group of South African soldiers were due to return home later this week, according to the SANDF said.
