BUSINESS - The African Mirror

Apr

2024

Somalia plugs 5G into its economic rebound

SOMALIA has received its first 5G installation, cranking up a series of reforms to revamp its economy after joining the East Africa Community (EAC). Hormuud Telecom Somalia Inc., its largest telco, rolled out faster internet speeds last month, signalling budding growth in the country's digital services industry. "As Somalia strides towards stability, the launch of 5G services by Hormuud Telecom emerges as a critical milestone. This initiative is more than just a technological advancement, it's a symbol of our nation's commitment to growth and constant improvement," said Somalia's Telecommunications Minister Jama Hassan Khalif. The immediate benefit of this rollout, according…

Apr

2024

By BRETT SILBERG

Two-thirds of SA managers view SA bonds and equities as undervalued

BUSINESS

THE Bank of America’s (BofA) latest South Africa fund manager survey found that two-thirds of the managers they spoke to viewed local bonds and equities as undervalued. For the past 58 months, or almost five years, most local fund managers have told the BofA that they view local bonds as undervalued. The survey found that 73% of the managers see more ‘buy’ opportunities in the local market than ‘sell’ opportunities. About 67% of managers surveyed were ‘most bullish’ on SA equities, 20% were ‘most bullish’ about local bonds, and 13% were ‘most bullish’ about cash. About 20% of managers were…

Mar

2024

By DAPHNE PSALEDAKIS and ERNEST SCHEYDER

US talks often with Congo’s Gecamines on cobalt and copper

BUSINESS

THE United States speaks regularly with the Democratic Republic of Congo's state miner Gecamines, a senior State Department official told Reuters, as Washington seeks to deepen relationships with key suppliers of cobalt and copper across the African continent. WHY IT'S IMPORTANT Chinese aggressive investment across Congo, Zambia and elsewhere in Africa - which holds massive supplies of minerals used to make electric vehicles and other electronics - has for some time raised concern in Washington. Jose Fernandez, the U.S. State Department's under-secretary for economic growth, energy, and the environment, said in an interview this week that conversations with Gecamines centre…

Mar

2024

By FELIX ONUAH

Nigeria unveils revamped economic management structure amid rising hardship

BUSINESS

PRESIDENT Bola Tinubu announced an overhaul of Nigeria's economic governance intended to ease financial hardship and boost productivity, establishing a multi-layered framework to bolster coordination, planning and implementation. Tinubu, who took office last year, inherited an economy struggling with record debt, high unemployment, low oil output, and power shortages that have crimped growth. But reforms he has implemented since then, chiefly ending a costly petrol subsidy and twice devaluing the naira currency within a year, have spurred price pressures and sparked the worst cost-of-living crisis in decades in Africa's largest economy. Central to the economic management structure is the creation…

Mar

2024

By The African Mirror

Salaam Bank launches Uganda’s first Islamic bank

BUSINESS

A unit of Djibouti-based Salaam Group launched in Uganda as the country's first Islamic banking-compliant financial institution, the Ugandan president's office said. The launch of the Salaam Bank Limited's operations follows a law legalising Islamic banking in the east African country last year. Islamic finance follows Islamic religious principles such as bans on interest payments and also eschews investments in some activities like gambling. Ugandan President Yoweri Museveni presided over the launch of the bank in the capital Kampala, according to a statement issued by his office. Muslims, who constitute about 14% of Uganda's population, have long complained that Ugandan…

Mar

2024

By The African Mirror

Kenya and Uganda resolve oil import row, Uganda says

BUSINESS

KENYA will allow landlocked Uganda's state oil firm to import petroleum products through its port of Mombasa, Uganda's energy ministry confirmed, to end a row between the two neighbours. Uganda has been seeking alternative ways of importing petroleum products, including through a Tanzanian port after its oil retailers for decades received their cargo through affiliated firms in Kenya. Solomon Muyita, spokesperson for Uganda's Ministry of Energy and Minerals, said the first shipment under the new system was expected in May. "Kenya has agreed to give us a licence, UNOC (Uganda National Oil Company) is now free to import through Mombasa,"…

Mar

2024

By MIKE SEGAR and GABRIELLA BORTER

US officials board ship that hit Baltimore bridge, divers search for bodies

BUSINESS

U.S. federal safety investigators recovered the black box from the freight ship that crashed into a Baltimore bridge, the agency chief said as rescuers searched for the remains of six construction workers lost in the bridge collapse. A highway team also will be looking at the twisted remains of the Francis Scott Key bridge as they try to determine how and why a container ship smashed into a pillar of the 1.6-mile (2.6 km) span in early morning darkness on Tuesday. Investigators from the U.S. National Transportation Safety Board recovered the data recorder after boarding the ship late on Tuesday, NTSB…

Mar

2024

By NQOBILE DLUDLA

Nissan to test African demand for its e-Power hybrid vehicle

BUSINESS

JAPANESE carmaker Nissan Motor plans to introduce its e-power hybrid technology car in Tunisia, its Africa head said, as part of plans to test demand in the African market for electric vehicles. Africa is the world's last remaining automotive frontier due to the low level of vehicle ownership. According to Nissan, elsewhere in the world, the global motorization average is 182 vehicles per 1,000 people versus 42 per 1,000 in Africa. But, like in many countries globally, electric vehicles (EVs) are currently priced out of the reach of most domestic consumers, while some countries in Africa, including South Africa, struggle…

Mar

2024

By MAXWELL AKALAARE ADOMBILA and CHRISTIAN AKORLIE

Ghana seeks to speed up debt restructuring negotiations

BUSINESS

GHANA wants to speed up remaining debt restructuring negotiations, its finance minister said, as the government pushes for a deal to rework over $13 billion of international bonds. The West African country has been overhauling its debts as it tries to emerge from its worst economic crisis in a generation with the help of a $3 billion International Monetary Fund (IMF) programme. The government reached a deal in principle in January to restructure $5.4 billion of loans with official creditors. It has since started formal talks with one bondholder group under non-disclosure agreements, Reuters reported about two weeks ago, citing sources familiar…

Mar

2024

By The African Mirror

BRICS development bank aims to make $5 bln in loans in 2024

BUSINESS

THE New Development Bank (NDB), set up by the BRICS group of emerging economies, aims to make about $5 billion in loans this year, its vice president, Zhou Qiangwu, said. "During the epidemic, our business has been somewhat affected, and now everything is going back on track," Zhou told Reuters on the sidelines of the annual Boao Forum. Zhou did not elaborate on how the bank may have been off track, but said China and India have received slightly more investment from the bank than other members. Headquartered in Shanghai, the NDB was set up in 2015 by Brazil, Russia,…