BUSINESS - The African Mirror

May

09

2024

Amazon launches online shopping service in South Africa

BUSINESS

AMAZON (AMZN.O) launched its online shopping service in South Africa, challenging a number of online retailers dominated by Naspers' (NPNJn.J) Takealot.com. Africa's most advanced economy is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said in the past. The launch of its service comes at a time when South Africa has seen a sharp rise in online shopping after the pandemic created an opportunity for e-commerce to finally take hold, with retailers doubling down on investments in response. Amazon.co.za will offer same-day delivery and next-day delivery with more…

May

09

2024

By MACDONALD DZIRUTWE

Nigeria plans additional rules to combat illegal trading in digital assets

BUSINESS

NIGERIA plans to roll out additional rules in the coming days to combat illegal trading in digital assets and ensure that those dealing in such instruments are registered, the head of the Securities and Exchange Commission (SEC) said. The SEC director general, Emomotimi Agama, told major blockchain and cryptocurrency associations in Nigeria on Monday that the naira currency needs to be delisted from peer-2-peer (P2P) trading to avoid manipulation. Agama made the comments as the central bank announced new charges on domestic money transfers to tackle cybersecurity. "I want to seek your co-operation ... as we roll out in the…

May

09

2024

By The African Mirror

Zimbabwe says new gold-backed currency now the official unit

BUSINESS

ZIMBABWE'S treasury said that the newly introduced gold-backed currency is the official unit of exchange for transactions and that it would soon introduce regulations to ensure businesses stick to the official rate. Although it has remained stable on the official market since its launch in early April, the Zimbabwe Gold (ZiG) has been off to a nervy start on the parallel market, with traders charging a premium of 65% to the official rate to obtain dollars. Some supermarkets are also charging a premium above the market rate, which is set at ZiG 13.6 per U.S. dollar, for customers paying in…

May

08

2024

By The African Mirror

Rwanda to increase spending by 11% in 2024/25, finance minister says

BUSINESS

RWANDA plans to increase its overall spending by 11% to 5.69 trillion Rwandan francs ($4.43 billion) in the next financial year starting in July, its finance minister said. A total of 1.32 trillion francs in the draft 2024/25 budget would come from external loans, Finance Minister Uzziel Ndagijimana said, without giving details on what kind of borrowing the government was considering. In all, 3.86 trillion francs would be from domestic revenues and another 725.3 billion francs from external grants, he added as he presented the draft budget to parliament. Rwanda, like other members of the East African Community trade bloc,…

May

08

2024

By MACDONALD DZIRUTWE

Nigeria sets dangerous precedent by detaining Binance execs, CEO says

BUSINESS

THE CEO of cryptocurrency exchange Binance accused Nigeria of setting a dangerous precedent after its executives were invited to the African country and then detained as part of a crackdown on crypto. Binance, the world's largest crypto exchange and two of its executives face separate trials on tax evasion and money laundering, which the company is challenging. CEO Richard Teng said in a statement it was time to speak out against the detention of Tigran Gambaryan, a U.S. citizen and Binance head of financial crime compliance. The other executive, Nadeem Anjarwalla, a British Kenyan who is a regional manager for Africa, fled…

May

08

2024

By OPE ADETAYO

Nigeria to charge levy on domestic transfers to fund cybersecurity

BUSINESS

NIGERIA'S central bank plans to charge a levy on domestic money transfers to help fund cybersecurity, it said. In a circular published late on Monday, the central bank told all banks and mobile money operators to charge 0.5% of the value of electronic transfers as a cybersecurity levy, starting in two weeks. The bank said the funds will managed by the country's security adviser's office and that non-compliance will attract a charge of 2% of the institution's annual turnover. The new levy follows a clampdown on cryptocurrency, which officials have blamed for Nigeria's currency weakness. The naira has hit record…

May

07

2024

By BRETT SILBERG

These valuations are crazy’: The potential unlock in SA shares

BUSINESS

CO-MANAGER of the R1.1bn ClucasGray Equity Prescient fund, Andrew Vintcent, believes that the thesis for holding depressed South African shares is as compelling as it’s ever been. ‘These valuations are crazy,’ Vintcent told Citywire South Africa in an interview. ‘Not all the shares we own are trading on a six or seven P/E, but that are a lot of shares on the JSE that do.’ He added that while last year and the first quarter of 2024 were particularly difficult for local equity managers, he believes that the potential for patient investors to earn outsized rewards by staying invested is…

May

06

2024

By CARLOS LOPES

African countries can’t resolve their debt crisis under a system rigged against them

BUSINESS

THE debt situation in many African countries has escalated again to a critical juncture. Twenty are in, or at risk of, debt distress. Three pivotal elements significantly contribute to this. Firstly, the rules governing the international banking system favour developed countries and work against the interests of African countries. Secondly, multilateral financial institutions such as the International Monetary Fund (IMF) and the World Bank focus on poverty alleviation. This is commendable. But it doesn’t address the liquidity crisis countries face. Many don’t have the necessary readily available funds in their coffers to cover urgent development priorities due to their dependency…

May

07

2024

By SETH ONYANGO, BIRD STORY AGENCY

Namibia bets on Africa’s green hydrogen with US$267M export harbour

BUSINESS

NAMIBIA is gearing up its logistics infrastructure to handle future shipments of green hydrogen, with a planned US$267 million hydrogen harbour at the port of Walvis Bay, according to the country's port authority, Namport. Port of Antwerp Bruges will build the facility over the next three years, billed as a hub for shipping hydrogen and its byproducts to energy-hungry markets in Europe. These regions are actively seeking to reduce carbon emissions and are looking towards innovative solutions like green hydrogen, which cannot be achieved through electrification alone. The Namibian Ports Authority (Namport) and Port of Antwerp will equally own the…

May

07

2024

By The African Mirror

Shell to exit South Africa’s downstream businesses

BUSINESS

OIL major Shell (SHEL.L) will divest its majority shareholding from a local South African downstream unit after a comprehensive review of its businesses across all regions, it said on Monday. "As a result of this review, Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in SDSA ... this decision was not taken lightly," a Shell statement said. It did not specify when the decision took effect. Shell Downstream SA (SDSA) was formed after Shell South Africa and black empowerment company, Thebe Investment Corporation, agreed a decade ago to merge Shell South Africa Marketing and Shell South…