BUSINESS - The African Mirror

Apr

2024

Ghana finance minister expects MoU with bilateral lenders in May

GHANA'S Finance Minister expects a draft Memorandum of Understanding (MoU) from the country's bilateral creditors in May on a restructuring deal, he said. The MoU, once signed, would cement a deal to restructure $5.4 billion of loans with its official creditors, including China and France, agreed in January. The restructuring is a milestone in Ghana's quest for debt relief as it charts its way out of the worst economic crisis in a generation and should unlock further tranches of its $3 billion programme with the IMF. Speaking on the sidelines of the IMF and World Bank Spring Meetings in Washington, Mohammed Amin…

Apr

2024

By KARIN STROHECKER

South Africa faces upside risk to inflation, financial conditions, central bank governor says

BUSINESS

SOUTH Africa faces upside risks to its inflation outlook, Central Bank Governor Lesetja Kganyago said, but the latest data has not shown evidence of price pressures from food despite adverse El Nino weather wreaking havoc across Africa. Data out on Wednesday had shown headline inflation fell to 5.3% year-on-year, down from 5.6% in February and coming in a touch below analyst expectations. In its March decision, the South African Reserve Bank (SARB) said headline inflation was expected to reach 4.5% - the midpoint of its target range - only at the end of 2025, later than previously forecast. "There are upside risks to the…

Apr

2024

By The African Mirror

Zando launches international unit to counter Shein and Temu in South Africa

BUSINESS

SOUTH African online fashion retailer Zando launched an international e-commerce division called Zando Global in the hopes of taking on fast-fashion Chinese e-commerce retailers Shein and Temu at home. The rapid rise of Shein and Temu - driven by robust demand for their low-priced apparel like $10 tops and $5 biker shorts - is putting pressure on local brick-and-mortar and online fashion retailers to find ways to respond to their budget prices. Temu launched in South Africa earlier this year. "With the rise of Shein and Temu, South African consumers have often found themselves hesitant to order internationally due to…

Apr

2024

By BRETT SILBERG

Two-pot postponed to September …but there’s much to do before then

BUSINESS

IN a webinar, Batseta – a non-profit organisation focused on the interests of principal officers, trustees and fund fiduciaries within the retirement industry – made it clear just how complicated the two-pot retirement system’s implementation will be for administrators, trustees and advisers of pension funds and how much they have yet to prepare. As such, Old Mutual Corporate senior consultant Nobuhle Mfeka said the [retirement] industry welcomed the six-month delay in the system’s implementation, as it would give stakeholders more time to hopefully implement the changes effectively. On Monday (4 December), the National Assembly’s Standing Committee on Finance (Scopa) accepted Finance Minister…

Apr

2024

By CAMILLUS EBOH

Nigeria strikes deal with Shell to supply $3.8 bln methanol project

BUSINESS

NIGERIA has struck a deal for Shell to supply gas to its proposed $3.8 billion Brass methanol facility, resolving a major hurdle to a final investment decision on the project, the minister of state for gas said. Nigeria, which holds Africa's largest natural gas reserves of more than 200 trillion cubic feet, has struggled to tap the commodity due to capital constraints and a lack of infrastructure. Minister Ekperikpe Ekpo said in a statement that the Gas Supply and Purchase Agreement (GSPA), crucial for the Brass methanol project, will be executed next month following successful talks with Shell's Nigeria CEO and…

Apr

2024

By WENDELL ROELF

South Africa’s PetroSA targets Mozambique gas in new sales deal

BUSINESS

SOUTH Africa's PetroSA expects the first flows of gas into the country from a deal with Mozambique's national energy company ENH later this year, officials said, amid efforts to shore up supplies ahead of a potentially crippling shortage. Handed a gas trading licence by regulators in March, state-owned oil and gas company PetroSA has moved quickly to secure a deal for an initial 2 petajoules of gas a year (PJ/a), with the scope to rise to 200 petajoules eventually. That would be enough to supply scores of industrial gas users, including steelmaker ArcelorMittal, which currently relies on around 190 PJ/a,…

Apr

2024

By RACHEL SAVAGE and MAXWELL AKALAARE ADOMBILA

Ghana fails to reach debt deal with international bondholders

BUSINESS

GHANA has failed to secure a workable debt deal with two bondholder groups in its push to restructure $13 billion of international bonds, the government said on Monday, in a blow to its efforts to swiftly emerge from default and economic crisis. Formal talks were on hold for now after the International Monetary Fund indicated that the deal would not fit its debt sustainability parameters, the government said in a statement. "We will regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets," the office of Finance Minister Mohammed Amin Adam said on…

Apr

2024

By NATALIE GROVER and WENDELL ROELF

OPEC woos Namibia as African nation prepares to produce from 2030

BUSINESS

THE OPEC+ oil producers group, having lost Angola and other players in recent years, is eyeing Namibia for possible membership as it sets up what could be Africa’s fourth-largest output by the next decade, an African industry official and sources told Reuters. TotalEnergies and Shell in recent years have made discoveries estimated at 2.6 billion barrels, setting the stage for the southern African country to plan production from about 2030. The initial focus for OPEC+ would be to see Namibia join its Charter of Cooperation, the sources said, a grouping that engages in longer-term dialogue about energy markets. Brazil joined the charter…

Apr

2024

By SETH ONYANGO, BIRD STORY AGENCY

Ethiopia looks to the Singapore model to lure startups in sweeping new reforms

BUSINESS

ETHIOPIA has unveiled sweeping reforms to support a burgeoning startup industry and turn the country into a leading incubator of entrepreneurs. Notable changes include slashing a 30% capital-gains tax on the transfer and issuance of shares, according to Brook Taye, Director-General of the Ethiopian Capital Market Authority. The move, combined with an allowance for startups to retain all foreign currency earned from service exports, is expected to boost investor confidence, as Prime Minister Abiy Ahmed opens up what was once a tightly controlled socialist economy. In recent years, the Eastern African nation has incubated several successful startups, such as Ride,…

Apr

2024

By BRETT SILBERG

Extremely cheap’ SA equities are getting cheaper

BUSINESS

MOMENTUM Investments believes South African equities are trading over one standard deviation cheaper relative to their average historical valuation. Momentum Investments portfolio manager Ronnie Bornman believes South African equities are ‘extremely cheap’ and have gotten cheaper. ‘No matter which way you look at it, South African equities or extremely cheap. They have been cheap for some time, and unfortunately, they have been getting cheaper throughout the first couple of months of this year,’ he added during a multi-asset roundtable. Hollard Investments CIO Ashveena Teeluckdharry-Khusial chaired the event, and Citywire South Africa hosted it in Cape Town on 19 March. ‘Relative…