Business News Today
African Debt Repayments Concerning – S&P
S&P Global Ratings has warned that African governments face a heavy debt repayment schedule of approximately $90 billion in 2026. Egypt alone accounts for nearly one-third ($27 billion), followed by Angola, South Africa, and Nigeria. The agency expects credit conditions to stabilise rather than improve, with high rollover risks and elevated borrowing costs persisting. South Africa’s total gross government debt (domestic + external) is projected to peak around 79% of GDP in fiscal 2025/26 before stabilizing/declining slightly.
VW South Africa Faces Uncertain Future
Volkswagen South Africa (VWSA), a key player in the country’s automotive sector, has declared 2026 a pivotal “make or break” year for its operations, amid mounting economic pressures and market shifts. The announcement came from VWSA’s leadership during a press briefing yesterday. This follows ongoing speculation about potential restructuring at the Kariega (Uitenhage) plant, which employs over 4,000 workers and produces models like the Polo for export. Volkswagen Group Africa MD Martina Biene, said there is an urgent need for automotive industry policy changes because the targets in the SA Automotive Masterplan 2035 (Saam) will not be achieved.
Core challenges for the group include escalating production costs driven by energy price volatility, supply chain disruptions, and currency fluctuations. Weak domestic demand has seen vehicle sales drop by 8% year-on-year in Q4 2025, has exacerbated issues, as South Africans grapple with high inflation and interest rates. Government policies have also add uncertainty with the expiration of Automotive Production and Development Programme (APDP) incentives anticipated in 2026 and the growth of cheaper Chinese vehicle imported vehicles.
South African Rand Loses Momentum As metal Prices Drop
The South African rand eased to around 16.23 per USD, the lowest since January 21, after dropping below the R15 to the dollar mark earlier this week. The movement was pressured by a stronger US dollar and dropping prices of precious metals, particularly gold and platinum, South Africa’s two key mining exports. A broader risk-off sentiment prevailed amid heightened volatility in global markets, with investors often reducing exposure to emerging markets during such periods. The rand has recently seen significant gains, supported by domestic economic improvements, structural reforms, fiscal discipline, and favourable external conditions. Higher commodity prices, combined with low oil costs, have strengthened South Africa’s terms of trade, attracting increased foreign investment into equities and bonds.
Tech Stocks and Bitcoin Plunge Further on Over-Heated Market Concerns
Global markets opened lower on today as the wave of technology sell-off continued. Bitcoin dropped sharply, falling as much as 9% in early trading to trade near $64,000–$65,000, erasing most of its post-U.S. election gains. Major Asian indices (Nikkei, Hang Seng) and U.S. futures declined amid concerns over high AI valuations and slowing growth expectations. The sell-off follows heavy losses on Wall Street on Thursday, driven by profit-taking in Big Tech stocks.
Breaking News Shorts:
- China’s Shanghai Composite and Shenzhen Component struggled for clear direction today, but were both on track for a second consecutive weekly decline. Investor sentiment remained pressured by a global tech selloff driven by concerns over massive AI spending and potential disruption to traditional software business models.
- Tencent Holdings shares decreased to the lowest level since March 2024. Over the past 4 weeks, Tencent Holdings lost -12.41%, although in the last 12 months, it increased 31.78%. Renewed regulatory uncertainty in China’s internet/gaming sector after rumors of potential tax hikes or tighter monetisation rules that was quickly denied by authorities but still spooked investors.
- Business Leadership South Africa’s latest tracker showed a 23.7% cumulative improvement in structural reforms since March 2024, but flagged slowed momentum in electricity and governance.
- Copper prices dropped to around $5.77 per pound this morning, hitting its lowest level in nearly six weeks, and on track for its worst week since late November, pressured by slowing demand from Chinese buyers and rising inventories. Reports showed that key consumer China had reduced purchases by fabricators and manufacturers as firms gradually pulled back ahead of the Chinese holidays.
- Indonesia’s IDX Composite tumbled 130 points, or 1.5%, to 7,976 this morning, extending losses in the prior session after Moody’s Investors Service changed the country’s sovereign credit rating outlook from stable to negative, citing reduced policy predictability and weaker governance under President Prabowo, who took office in October 2024.
Markets by Numbers
Currency markets indicate the US dollar stable, with the Greenback trading against the Euro at 1.17988 while trading against the Pound at 1.35634 to the US dollar. The Yen is currently trading at 156.60 to the dollar. The rand (ZAR) is currently trading at around R16.23 to the dollar and looks to be heading below that level.
Commodities:
- Gold futures are slightly higher today after a drop yesterday, up by around 1.3% this morning, and currently trading at around $4845.00 per ounce.
- Copper prices have lost around 1% today, with prices currently around $57.631 per pound
- Silver futures have rebounded around 3.5% today, and currently trading around $73.44 per ounce.
- Platinum futures have dropped by around -5.5% this morning, currently trading at $1960.70, While Palladium prices have fallen around -3.7% this morning, and currently trading around $1632.50 per ounce.
- Brent crude oil prices are trending lower today, and currently at $68.05 with WTI trading lower at $63.93
- Cocoa futures are around 3% higher today, and currently trading around $4209 per ton.
- Coffee futures are currently trending lower today, and trading at around $3.0785 per pound
Crypto Currencies:
- Bitcoin prices are starting to rebound after steep losses of around -21% this week, and trading at around $65658 per coin currently
- Ether prices are also rebounding and up around 6% today after a los of 28% this week and are currently trading around $1929.53
- $Trumpcoin are currently trading around $3.387
(All prices quoted at approximately 07H35 Central African Time)
Africa News Briefs:
- Ghana and Zambia have agreed to abolish visa requirements for each other’s citizens, taking a major step toward closer regional integration and easier cross-border movement. The deal was confirmed by Ghana’s Foreign Affairs Minister, Samuel Okudzeto Ablakwa, during President John Dramani Mahama’s official visit to Zambia. The three-day trip is focused on expanding diplomatic engagement, strengthening economic partnerships, and fostering stronger ties between the countries.
- Nigeria’s President Tinubu has deployed an army battalion to the Kwara State after gunmen killed as many as 162 people, after they refused to join Jihadist Muslim extremists in one of the country’s deadliest attacks in recent months. The assault targeted Woro village late Tuesday, just days after the military launched operations in the area against suspected terrorist groups. Gunmen stormed the community in the evening, burning shops and the traditional ruler’s palace as residents fled into nearby bushes. Casualty figures remain unclear, with officials giving conflicting tolls
