BUSINESS - The African Mirror

Jan

03

2024

For investors, 2024 is year of transition to a new economic order

BUSINESS

INVESTORS appear convinced that major Western central banks are close to a much-awaited pivot, from raising interest rates to cutting them. Markets rallied as a result, but 2024 could hold surprises as the world adjusts to an economic order where money is not cheap. Global stocks rallied and top government bond yields fell in recent weeks, despite central bankers cautioning against pivot bets. In the United States, for example, investors are now effectively positioned for the Federal Reserve guiding the economy to a perfect landing, bringing down inflation without triggering a recession. The market's conviction comes after the U.S. economy surprised people with its resilience. That was…

Dec

30

2023

By The African Mirror

Nigerian crude exports set to dip in February

BUSINESS

EXPORTS of four main Nigerian crude oil grades in February are set to average about 657,000 barrels per day (bpd), according to preliminary programmes, down slightly from the previous month. The scheduled loadings of Bonny Light, Bonga, Qua Iboe and Forcados crude oil streams stood at 792,000 bpd for January, according to Reuters calculations.

Dec

30

2023

By The African Mirror

Fitch cuts Ethiopia’s Eurobond to ‘default’ after missed payment

BUSINESS

FITCH downgraded the rating on Ethiopia's only international government bond to "default" from "near default" after the East African country failed to make a $33 million coupon payment. Ethiopia became Africa's third default in as many years on Tuesday after it failed to make the payment on the $1 billion Eurobond. While the payment was due on December 11, a 14-day grace period clause meant it technically had until Tuesday to provide the money. The agency also lowered Ethiopia's long-term foreign currency rating to "RD" or restricted default, from "C". It does not assign outlooks to sovereigns rated "CCC+" or below. Ethiopia requested…

Dec

28

2023

By The African Mirror

Abu Dhabi Ports Group to operate Egypt’s new Safaga terminal

BUSINESS

EGYPT signed an agreement with Abu Dhabi Ports Group for the operation and maintenance of a multipurpose terminal at Safaga port, a cabinet statement said. The new Safaga 2 terminal will accommodate 1 million containers annually and will receive 7 million metric tons of goods, said Egyptian transport minister Kamel al-Wazir. The ministry has invested 3.6 billion Egyptian pounds ($116.7 million) to develop Safaga port, the minister added. The 810,000 square metre project will have a dock length of 1,100 metres and a depth of 17 metres, the statement said.

Dec

27

2023

By The African Mirror

Ethiopia becomes Africa’s latest sovereign default

BUSINESS

ETHIOPIA became Africa's third default in as many years after it failed to make a $33 million "coupon" payment on its only international government bond. Africa's second most populous country announced earlier this month that it intended to formally go into default, having been under severe financial strain in the wake of the COVID-19 pandemic and a two-year civil war that ended in November 2022. It had been supposed to make the payment on December 11, but technically had up until Tuesday to provide the money due to a 14-day 'grace period' clause written into the $1 billion bond. According…

Dec

26

2023

By The African Mirror

Libya’s stock market resumes trading after more than 9 years of closure

BUSINESS

LIBYA'S Stock Market resumed trading at a hall in the capital Tripoli after more than nine years of closure because of the political and security situation. The prime minister of the Government of National Unity Abdulhamid al-Dbeibah and the market's chairman of the board of directors Bashir Mohamed Ashour with other officials rang the bell to announce the resumption of trading. The stock market also has a trading hall in Libya's second city of Benghazi where trading is expected to resume next week, a source said on Monday. Dbeibah said the bourse was "one of the means to improve the…

Dec

24

2023

By The African Mirror

Nigerian central bank lifts ban on crypto trading

BUSINESS

NIGERIA'S central bank has lifted a ban on transacting in cryptocurrencies while saying global trends had shown a need to regulate such activities, the bank said in its latest circular. The Central Bank of Nigeria (CBN) in February 2021 barred banks and financial institutions from dealing in or facilitating transactions in crypto assets, citing money laundering and terrorism financing risks. Subsequently Nigeria's Securities and Exchange Commission (SEC) in May last year published regulations for digital assets that signalled Africa's most populous country was trying to find a middle ground between an outright ban on crypto assets and their unregulated use. In a…

Dec

24

2023

By The African Mirror

TotalEnergies to restart its delayed Mozambique LNG project in early 2024

BUSINESS

FRENCH energy firm TotalEnergies plans to restart its long-delayed $20 billion Mozambique liquefied natural gas (LNG) project in the first quarter of next year, two sources told Reuters. Work on the project has been halted since 2021 when a violent insurgency led by Islamic State-linked militants threatened the Cabo Delgado site, leading to TotalEnergies declaring force majeure and halting construction. In September, chief executive officer at TotalEnergies, Patrick Pouyanne, said the company planned to restart before the end of this year, as the security situation improved with the support of a regional military force including Rwanda. "TotalEnergies have indicated that they…

Dec

24

2023

By The African Mirror

Nigeria’s petroleum minister reaffirms commitment to OPEC

BUSINESS

NIGERIA reaffirmed its commitment to OPEC, its junior petroleum minister said, a day after Angola said it would leave the Saudi-led oil producer group that has in recent months sought to rally support for more output cuts to prop up prices. Africa's biggest oil producers, Nigeria and Angola, were among several countries given lower output targets for 2024 after years of failing to meet the previous ones. Angola said on Thursday OPEC no longer served the country's interests. But Nigeria's minister of state for petroleum Heineken Lokpobiri said in a statement that the country's commitment to OPEC remained unwavering. "Our collaboration…

Dec

23

2023

By ALEX LAWLER

Angola to quit OPEC, reducing membership to 12 countries

BUSINESS

ANGOLA has said it is leaving the Organization of the Petroleum Exporting Countries (OPEC) with effect from January 1 2024, after exits from Ecuador in 2020 and Qatar in 2019. Angola, which joined OPEC in 2007, produces about 1.1 million barrels per day, compared with 28 million bpd for the whole group. Here are details on OPEC members, market share and Angola's oil production. OPEC MEMBERS, MARKET SHARE OPEC was founded in 1960 by Saudi Arabia, Kuwait, Venezuela, Iran and Iraq. Angola joined the group in 2007. Since 2017, OPEC has worked with Russia and other non-members as part of…