BUSINESS - The African Mirror

Dec

23

2023

Reactions to Angola’s decision to leave OPEC

BUSINESS

ANGOLA has decided to leave the Organization of the Petroleum Exporting Countries (OPEC), its oil minister said, saying its membership was not serving the country's interests. The departure is unlikely to have a significant impact on oil supplies given Angola's small percentage of total OPEC output, but the move raises questions about the unity of the group, analysts said. The following are reactions to the decision: GIOVANNI STAUNOVO, UBS: "From an oil market supply perspective, the impact is minimal as oil production in Angola was on a downward trend and higher production would first require higher investments. "However, prices still…

Dec

23

2023

By NELSON BANYA and CHRIS MFULA

Abu Dhabi’s IRH to invest $1.1 bln in Zambia’s Mopani Copper Mines

BUSINESS

THE United Arab Emirates International Resources Holdings (IRH) will invest $1.1 billion in Zambia's Mopani Copper Mines in return for 51% ownership of the business, the state-owned ZCCM Investments Holdings (ZCCM-IH) said. Last month, Zambia picked IRH, a unit of Abu Dhabi's most valuable listed company, International Holdings Company (IHC), as the strategic equity partner in Mopani, which was coveted by several investors looking for copper assets. Zambia had been seeking a new investor for Mopani since it took control of the assets from Glencore in 2021 after agreeing to pay the Swiss commodities company $1.5 billion in a deal funded by debt.…

Dec

22

2023

By PATRICK WERR

Egypt raises $800 mln from hotels in divestment drive – PM

BUSINESS

EGYPT'S sovereign wealth fund has signed an $800 million deal to sell a stake in seven prominent hotels to Egypt's Talaat Moustafa Group (TMG) in its drive to raise funds and foreign currency, Prime Minister Mostafa Madbouly said. Revenues from selling stakes in state assets have reached $5.6 billion so far, said Madbouly, whose government is grappling with a long-running shortage of foreign currency and a rising debt burden. He provided no breakdown of the revenues. The stake sales, which some expect to accelerate after a presidential election earlier this month, are seen as crucial to Egypt's chances of easing prolonged pressure…

Dec

21

2023

By The African Mirror

Carrefour’s Kenya franchisee says it will appeal $7.2 mln penalty

BUSINESS

CARREFOUR'S franchisee in Kenya, the United Arab Emirates-based Majid al Futtaim (MAF), said that it will appeal against a 1.1 billion shilling ($7.14 million) penalty imposed by the competition authority for alleged abuse of buying power. The regulator Competition Authority of Kenya on Tuesday announced the fine, a record high in the East African nation, saying MAF Kenya was guilty of offering two local suppliers unfavourable terms. "Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority’s decision," the company said in a statement. In arriving at its decision, the authority…

Dec

21

2023

By MAXWELL AKALAARE ADOMBILA and CHRISTIAN AKORLIE

Ghana’s economic growth slows to 2.0% in third quarter

BUSINESS

GHANA'S economic growth slowed to 2.0% year-on-year in the third quarter of 2023 from 3.2% in the previous quarter, driven by a decline in the industrial sector, its statistics agency said. The West African country is grappling with its worst economic crisis in a generation, with a sharply weaker cedi currency and double-digit price rises for consumers. Contributing to the third-quarter slowdown were contractions in sub-sectors of industry such as mining and construction, the statistics agency said. Agriculture made a positive contribution, even though cocoa farming is having an unusually bad season. Meanwhile, producer inflation slowed to 2.0% year-on-year in November from…

Dec

20

2023

By The African Mirror

Kenya fines Carrefour franchisee $7.2 mln for abuse of buyer power

BUSINESS

KENYA'S competition authority said that it has penalised the local Carrefour franchise holder, UAE-based Majid AL Futtaim, 1.1 billion Kenyan shillings ($7.15 million) for abusing its ability to set terms for suppliers. "The supermarket chain is required to amend all its supplier contracts and expunge clauses that facilitate abuse of buyer power," the antitrust regulator said in a statement. The penalty is the biggest ever handed out by the Competition Authority of Kenya, the regulator said. Majid AL Futtaim, which opened its first Kenya outlet in 2016 and has grown to become one of the biggest retailers, was found guilty by…

Dec

20

2023

By The African Mirror

TotalEnergies pledges $6 billion in Nigeria oil, gas investments

BUSINESS

TOTALENERGIES reaffirmed its commitment to business interests in Nigeria, the French company said, adding that its head Patrick Pouyanne had met Nigeria President Bola Tinubu in Abuja. TotalEnergies said it had signed a cooperation agreement with Nigeria's state oil firm NNPC Ltd to carry out methane detection and measurement campaigns using its advanced drone-based AUSEA technology on oil and gas facilities in Nigeria. TotalEnergies pledged to "invest $6 billion in the coming years," with a focus on offshore oil projects and gas production across all terrain, Tinubu's office said in a statement, citing Pouyanne. Tinubu's meeting with Pouyanne follows similar talks…

Dec

20

2023

By The African Mirror

Rwanda says GDP growth expected to rise in 2024, still below 2022 figure

BUSINESS

RWANDA'S economy is expected to grow 6.6% in 2024, up from this year's figure of 6.2%, the finance minister and central bank governor told the International Monetary Fund in a letter. In February, Finance Minister Uzziel Ndagijimana had forecast economic growth of about 7.5% for the East African country in 2024 and 2025. The economy grew 8.2% in 2022. "We foresee a temporary softening of economic growth, driven by needed tighter fiscal and monetary policies," Ndagijimana and Central Bank Governor John Rwangombwa said in the November 29 letter, made public late on Monday. "On the demand side, private consumption and investment are…

Dec

19

2023

By The African Mirror

Kenya, EU advance economic partnership agreement to boost trade

BUSINESS

KENYA and the European Union moved closer to sealing an Economic Partnership Agreement that will grant the East African nation's exports duty-free status and unlimited access to the bloc, officials said on Monday. Both sides had initiated a draft deal in June after seven months of negotiations. The EU is one of Kenya's biggest export markets. The deal was approved by the European Union Council last week. It will now be presented to the parliaments of both sides for ratification before it comes into force. "Today's agreement heralds a new dawn where Kenyan goods gain immediate duty- and quota-free access…

Dec

19

2023

By CONRAD ONYANGO, BIRD STORY AGENCY

Scramble in SA crypto market ahead of licensing round

BUSINESS

SOUTH Africa is witnessing an expansion in cryptocurrency offerings as the country gets closer to issuing its first operational licenses to financial service providers. Payment firms and fintech companies are driving the move, with commercial banks expected to follow suit. One of the latest offerings enables users to purchase goods and services using cryptocurrency, while another allows them to withdraw digital currency as cash from automated teller machines. Stitch, a South African payments infrastructure company, has launched a new payment method called "Pay with Crypto," which allows customers to use cryptocurrency directly when purchasing goods and services in South African…