BUSINESS - The African Mirror

Apr

10

2024

Australia’s Fortescue partners with OCP Group for green energy development in Morocco

BUSINESS

AUSTRALIA'S Fortescue said that it would form a joint venture with OCP Group to supply green hydrogen, ammonia and fertilizers to Morocco, Europe and international markets, as the iron ore miner looks to transform itself into a green energy superpower with a global footprint. Fortescue's equal partnership with the Moroccan fertilizer producer includes the potential development of manufacturing facilities and a research and development hub in Marrakesh. "The partners' objective is to supply green hydrogen and ammonia for use both as sources of green energy and in the manufacture of carbon-neutral and customized fertilizers," Fortescue said. The partners have also proposed…

Apr

10

2024

By CHIJIOKE OHUOCHA

Nigeria bars lenders from using FX-denominated collateral for naira loans

BUSINESS

NIGERIA'S central bank has barred commercial lenders from accepting foreign currency-denominated collateral to grant naira loans, a move that could protect the banking system against a strengthening of the local currency, it said on Monday. The regulator said in a circular that the practice it had observed of bank customers using foreign currency as collateral for naira loans was "prohibited". The central bank on Monday said it approved Eurobonds issued by the government or letters of credit issued by an offshore bank as eligible foreign currency collateral. It told lenders to wind down all loans currently secured with dollar-denominated collateral…

Apr

09

2024

By NQOBILE DLUDLA

Vivendi’s Canal+ makes mandatory buyout offer for South Africa’s MultiChoice

BUSINESS

FRENCH media group Vivendi's Canal+ made an all-cash mandatory offer to buy all the shares of South African broadcaster MultiChoice it does not already own for 35 billion rands ($1.9 billion), both companies said. That offer at 125 rands per share follows an indicative offer of 105 rands made by Canal+ on Feb. 1, which MultiChoice rejected as significantly undervaluing the company. The need to make a mandatory offer was triggered by Canal+, MultiChoice's biggest shareholder, subsequently raising its holding in the firm above the 35% threshold. Its new offer values MultiChoice, in which it now owns a 36.6% stake, at about 55 billion rand, according…

Apr

07

2024

By The African Mirror

Zimbabwe launches gold-backed currency to replace battered local dollar

BUSINESS

ZIMBABWE is replacing its collapsing local currency with a new one backed by gold and foreign currencies that it hopes will be more stable and help bring down inflation, the central bank said on Friday. The Southern African country relaunched its own currency in 2019 after a decade of dollarisation, but it struggled to win public trust and more than 80% of domestic transactions are now conducted in foreign currency. A more than 70% slide in the Zimbabwean dollar since the start of the year pushed price rises beyond 55% in annual terms in March evoking bitter memories of hyperinflation…

Apr

07

2024

By The African Mirror

China invites Uganda’s energy minister for talks on pipeline financing

BUSINESS

CHINA has invited Uganda's energy minister to Beijing to discuss the East African country's $5 billion crude oil pipeline, Uganda's presidency said. The development could signal a possible breakthrough in Uganda's efforts to woo Chinese financiers to fund the pipeline, which the country requires to start crude production from oilfields that were discovered in 2006. Potential Chinese funding is being considered as pivotal after Western banks declined to fund the pipeline after pressure from environmentalists who said the project would add to global carbon emissions. China's special envoy for the Horn of Africa Affairs, Xue Bing, delivered a message to…

Apr

06

2024

By SOFIA CHRISTENSEN

Main companies operating in Senegal’s oil, gas and mining sectors

BUSINESS

SENEGAL'S newly elected President Bassirou Diomaye Faye said his government would conduct an audit of the West African nation's oil, gas and mining sectors. The announcement followed a campaign promise to renegotiate the terms of oil, gas and mineral contracts with foreign operators in the country, which is set to begin producing oil and gas this year. The following are the main companies operating in Senegal's oil and gas sectors: BP BP and U.S.-listed Kosmo Energy are leading the development of Greater Tortue Ahmeyim (GTA), Senegal's first liquefied natural gas (LNG) project. GTA, a floating facility straddling the border between Senegal and Mauritania, will…

Apr

06

2024

By The African Mirror

Kenyan private sector activity slows in March, PMI shows

BUSINESS

KENYA'S private sector activity contracted slightly in March, hurt by cashflow problems at some businesses, a business survey showed. The Stanbic Bank Kenya Purchasing Managers' Index (PMI) fell to 49.7 in March from 51.3 a month earlier. Readings above 50.0 signal growth, while those below point to a contraction. In February, it was the first time since August that the figure had gone above 50. "Output contracted modestly, which survey panellists attributed to lower new order intakes and cash flow problems," Stanbic Bank said in commentary accompanying the survey. "The decline in new orders signalled by the survey was only…

Apr

06

2024

By SETH ONYANGO, BIRD STORY AGENCY

Twin rate cuts set Mozambique apart as African currency rally

BUSINESS

MOZAMBIQUE’S central bank has decisively cut its benchmark lending rate to 15.75% from 16.5%, setting a precedent as the first African country to slash rates twice in 2024. The move highlights Maputo’s aggressive push for economic growth amid a wider trend of cooling inflation and currency stability against the US dollar across Africa. Rate cuts in the southeastern African nation, prompted by near-four-year low consumer inflation, aim to stimulate economic activity through household spending. The steady Mozambican metical against the dollar since 2021 solidifies the central bank, Banco de Moçambique's move, balancing the rate cuts without igniting inflation or destabilising…

Apr

05

2024

By The African Mirror

Consumer spending growth in South Africa steadied in 2023

BUSINESS

CONSUMERS spending growth in South Africa steadied in 2023 after the previous year's post-pandemic surge, but expected interest rate cuts will encourage more purchases in 2024, executives from Visa and Discovery Bank said. Recent retail results show that consumers are under financial pressure as high interest rates increase the cost of debt and inflation pushes food prices higher. Releasing their latest SpendTrend24 report, Discovery's banking unit and Visa said that while consumer spending in South Africa outpaced inflation by 19 percentage points in 2022, the two measures were closely matched last year. Spending on food, including groceries, takeout and dining out, increased in most…

Apr

04

2024

By ISAAC ANYAOGU

Nigeria’s Dangote refinery supplies petroleum products to local market

BUSINESS

NIGERIA'S Dangote oil refinery started supplying petroleum products to the local market, a company executive and fuel marketing associations said, a major step in the country's quest for energy independence. The refinery, Africa's largest, was built on a peninsula on the outskirts of the commercial capital Lagos at a cost of $20 billion by the continent's richest man Aliko Dangote and was completed after several years of delays. It can refine up to 650,000 barrels per day (bpd) and will be the largest in Africa and Europe when it reaches full capacity this or next year. Dangote's group executive, Devakumar…