Business News Today
BEE Policy Killing South African Growth – NEASA
Gerhard Papenfus, CEO of the National Employers’ Association of South Africa (NEASA) has decried Black Economic Empowerment (BEE) as the one policy decision by the ANC that has caused immense and lasting damage to the country’s economy. He described BEE as an “unnatural economic structure” that rewards political connections over merit, hollowing out entrepreneurship, distorting markets, and bankrupting state institutions. Papenfus said his comments were triggered by Mineral Resources and Energy Minister Gwede Mantashe, who during an interview on Newzroom Africa about the mining sector, claimed that anyone who debates BEE promotes white supremacy. According to Papenfus, BEE has fundamentally distorted South Africa’s economy. “We don’t live in a normal economy,” he said. “We live in a common economy where an economic structure is created [BEE] where certain people get preference not on the basis of merit, but purely based on political alliance and colour.”
Gold Rush – New Gold Price Peak Reached
Gold continued its bull-run to above $4,950 per ounce this morning, setting a new record and is now on track for its strongest week of gains since March 2020, supported by lingering geopolitical risks and a weaker dollar. President Trump said he secured permanent US access to Greenland in a deal with NATO, though details remain unclear and Denmark reaffirmed its sovereignty. Trump also canceled planned tariffs on European imports, while the EU said it would suspend threatened countermeasures but seeks clarity on his intentions. On the economic front, both headline and core US PCE rose as expected, indicating that disinflation continues even as activity remains firm.
Markets are pricing in two interest-rate cuts by the Federal Reserve later this year. Investors are awaiting Trump’s choice for the next Fed chair after he completed candidate interviews, with a more dovish appointment likely to further boost expectations for additional rate cuts. Silver also jumped nearly 3% toward $99 per ounce today, reaching new record highs as a weakening dollar provided additional support to the rally in precious metals.
Nedbank Expands Into Africa with NCB Purchase
South Africa’s Nedbank Group has formally offered to acquire a 66% controlling stake in Kenya’s NCBA Group PLC in a cash-and-stock deal valued at approximately $856 million (R13.9 billion). The payment structure for the deal consists of 20% in cash plus 80% in new Nedbank shares (based on a R250 per share valuation). NCBA would become a Nedbank subsidiary but retain its brand, local management, board, and listing on the Nairobi Securities Exchange (with the remaining 34% publicly traded). Currently NCBA manages around KES 665 billion ( or R84 billion) in assets, and disburses over KES 1 trillion in digital loans annually, and has posted a19% average ROE since 2021.
It operates in Kenya, Uganda, Tanzania, Rwanda, plus digital services in Ghana and Ivory Coast. The deal is subject to regulatory approvals (Central Bank of Kenya, South African Reserve Bank, etc.) and expected to close by Q3 2026. NCBA shares jumped on the news, and Kenyan listed banks have seen significant paper gains in early 2026 (~Sh56 billion sector-wide), reflecting investor optimism.
Musk – Momentum toward Future World Building
Yesterday – 22 January, saw Elon Musk address the future of our world at the World Economic Forum in Switzerland, Musk chatted onstage with BlackRock CEO Larry Fink about Tesla’s Optimus robots handling factory tasks now and the possibility of the robot caring for families by late 2027. Musk, the world’s most successful tech entrepreneur and globally the wealthiest person, predicted AI will surpass human intelligence by late 2026 and that of all humanity by 2030.
Musks vision to power these advances is of space-based solar data centres solving power shortages in three years. SpaceX’s Starship is aiming for full reusability this year to make the possibility of multi-planetary life a reality, all in pursuit of technological abundance and protecting civilisation’s ‘tiny candle’ of consciousness. “The overall goal of my companies is to maximise the future of civilisation, like basically maximise the probability that civilisation has a great future and to expand consciousness beyond Earth” commented Musk.
Breaking News Shorts:
- Intel reported Q4 losses amid supply shortages for AI data centre chips and heavy spending, forecasting below-expectations revenue/profit. Shares plunged 13% after-hours. This highlights challenges in the chip sector despite AI boom, contrasting Nvidia’s gains.
- President Trump has filed a lawsuit against JPMorgan Chase, claiming the bank closed his accounts in 2021 for political reasons. The suit seeks $5 billion in damages, escalating tensions between Trump and major finance companies.
- Indonesia’s sovereign wealth fund Danantara plans to invest up to $14 billion this year, primarily using dividends from existing holdings, with exposure to Indonesia, China, India, Korea, and Japan. CIO Pandu Patria Sjahrir announced this at Davos, noting $8 billion was already committed last year.
- TikTok’s Chinese owner, ByteDance, said it has finalised a deal to establish a majority American-owned joint venture that will secure US data, to avoid a US ban on the short video app used by over 200 million Americans.The agreement provides for American and global investors to hold 80.1 per cent of the venture while ByteDance will own 19.9 per cent.
- India, the world’s largest vegetable oil buyer, have canceled more soybean oil shipments from South America as the rupee’s slump to a record low widened the price gap between local and imported oil
Markets by Numbers
Currency markets indicate the US dollar trading softer today, with the Euro trading against the US dollar at 1.17579 while the Pound is trading at 1.3792 to the US dollar. The Yen is currently trading at 158.58 to the dollar. The rand (ZAR) is currently trading at around R16.09 to the dollar.
Commodities:
- Gold futures have climbed by 0.54% this morning, and currently trading at around $4961.00 per ounce.
- Copper prices are trending over 1% higher today, with prices currently around $58.503 per pound
- Silver futures are trending over 3% upwards, and currently trading around $99.105 per ounce.
- Platinum futures are trending 2.6% higher this morning, and currently trading at $2645.60, While Palladium prices have climbed by 1.4% this morning, and currently trading around $1955.50 per ounce.
- Brent crude oil prices are trending higher today, and currently at $64.52 with WTI trading higher at $59.84
- Cocoa futures have gained some upward motion today, and currently trading around $4469 per ton.
- Coffee futures are currently trending flat today, and trading at around $3.47 per pound
Crypto Currencies:
- Bitcoin prices are trending flat this morning, and trading at around $89481 per coin currently
- Ether prices are trending higher, and are currently trading around $2964.00
- $Trumpcoin are trending lower today, and currently trading around $4.865
(All prices quoted at approximately 07H50 Central African Time)
Africa News Briefs:
- A force Barrick Mining Executive has been appointed by Mali’s military as the country’s new minister of mining and will oversee the mining sector. The move tightens the government’s direct grip on the country’s crucial gold industry.The legal framework establishing the role state that the minister will have the power to supervise the implementation of mining policy, monitor compliance with the mining code, and review reports submitted by licence holders – responsibilities previously held by the Ministry of Mines.
- A devastating hunger crisis is set to dramatically worsen in northeastern Nigeria, as the United Nations World Food Programme (WFP) warns it will be forced to slash food aid to over a million vulnerable people within weeks due to a critical lack of funding, amidst escalating violence and record hunger levels.The WFP announced Thursday it would need to scale back its life-saving assistance in February, reaching only 72,000 people—a drop from the 1.3 million it supported during last year’s lean season.
