BUSINESS - The African Mirror

Dec

10

2023

Nigeria’s Dangote refinery receives first crude cargo

BUSINESS

THE Dangote oil refinery in Nigeria received its first cargo of 1 million barrels of crude oil from Shell International Trading and Shipping Co (STASCO), bringing the start of operations closer after years of delays. Once fully running, the 650,000 barrel-per-day refinery funded by Africa's richest man Aliko Dangote will turn oil powerhouse Nigeria into a net exporter of fuels, a long-sought goal for the OPEC member that almost totally relies on imports. Dangote Group said in a statement seen by Reuters on Friday that the cargo of 1 million barrels of crude from Agbami - a deep water field run…

Dec

09

2023

By The African Mirror

Africa’s new online foreign exchange system will enable cross-border payments in local currencies – what you need to know

BUSINESS

THE high cost of making cross-border payments on the African continent has driven governments on the continent to seek options of settling trade and other transactions in local currencies. This has given birth to the Pan-African Payment and Settlement System which is scheduled to go live in 2024 under Kenya’s leadership. Development economist Christopher Adam, who has studied the exchange rate policies of African countries, answers some key questions. CHRISTOPHER ADAM, Professor of Development Economics, University of Oxford Why are African countries exposed in the international currency market? Three main reasons. First, African economies are small and as such are…

Dec

09

2023

By The African Mirror

Ghana wants to restrict imports of 22 products – an economist explains how, why and what else must be done

BUSINESS

GHANA’S Ministry of Trade and Industry has tabled in parliament a proposed ban or restrictions on imports of certain goods, including rice, sugar, poultry, fruit juices and animal intestines (tripe). The proposed legislation empowers the trade minister to issue licences to potential importers of goods. Critics of the policy say it will give too much power to the minister and create room for corruption. The Conversation Africa’s Godfred Akoto Boafo spoke to development economist Adu Owusu Sarkodie about the policy. ADU OWUSU SARKODIE, Lecturer, Department of Economics, University of Ghana What are import restrictions? These refer to the various schemes,…

Dec

08

2023

By The African Mirror

Suez Canal traffic uninterrupted after ship suffers fault – canal authority

BUSINESS

A container ship collided with a floating bridge in the eastern lane of the Suez Canal but the passage of ships through the waterway was not interrupted, the Suez Canal Authority (SCA) said. Tugboats helped the One Orpheus after it suffered a fault with its rudder while transiting the canal on its way from Singapore to the Netherlands, the authority said in a statement. The incident occurred in the eastern lane of the middle section of the canal, built as an expansion that was completed in 2015. Convoys of ships coming from the south were diverted along the original branch…

Dec

08

2023

By The African Mirror

South Africa to pick Marokane as CEO of utility Eskom

BUSINESS

SOUTH Africa is expected to appoint Dan Marokane as Chief Executive of struggling state power utility Eskom, Bloomberg News reported, citing unnamed sources. Spokespeople for Eskom and the Department of Public Enterprises, the government department that oversees the power company, declined to comment on the Bloomberg report. Eskom has been without a permanent CEO since Andre de Ruyter left in February. Marokane is currently acting CEO at sugar producer Tongaat Hulett. He previously served as an executive at Eskom. Eskom has struggled to keep the lights on in Africa's most industrialised economy for more than a decade. This year it has…

Dec

07

2023

By The African Mirror

Mozambique sees higher economic growth, wider deficit in 2024

BUSINESS

Mozambique sees economic growth picking up to 5.5% next year but its budget deficit widening to 10.4% of gross domestic product (GDP) driven by debt service, public sector wage reforms and election spending, its finance minister said on Wednesday. Those forecasts compare with 2023 targets of 5.0% growth and a budget deficit of 8.7% of GDP. Finance minister Max Tonela gave the latest projections in a 2024 budget speech, saying next year's deficit would be financed by external grants amounting to 5.4% of GDP, foreign loans of 1.9% of GDP and domestic borrowing of 3.0% of GDP. 2024 growth would…

Dec

06

2023

By CHRIS MFULA

COP28: Zambia’s first green bond to be issued by year-end by Copperbelt Energy Corp

BUSINESS

ZAMBIA'S Copperbelt Energy Corporation (CEC) will issue the southern African country's first green bond by the end of the year, the power company said, with a $54 million note to be sold as part of a $200 million green bond programme. The proceeds will be used to fund solar energy generation, as part of the company's aim to generate 200MW of renewable energy, Owen Silavwe, CEC's chief executive officer said in a statement released on the sidelines of the COP28 climate summit. Green bonds have grown in popularity globally as policymakers and financiers seek market-driven ways to tackle climate change.…

Dec

06

2023

By The African Mirror

Uganda plans to double domestic borrowing in 2023/24 FY

BUSINESS

UGANDA is planning to more than double its level of domestic market borrowing to 6.8 trillion Ugandan shillings ($1.79 billion) in the 2023/24 financial year to help finance new spending needs, the Ministry of Finance said. Government finances have been squeezed since the World Bank, traditionally a key source of cheap credit for the country, cut lending earlier this year to protest against the enactment of one of the world's strictest anti-homosexuality laws. In a budget speech in June, Finance Minister Matia Kasaija said the government intended to borrow 3.2 trillion Ugandan shillings from the domestic market via issuance of treasury bills…

Dec

06

2023

By The African Mirror

Ghana’s Sunon Asogli suspends power supply over unpaid government debt

BUSINESS

GHANAIAN independent power producer Sunon Asogli indefinitely suspended operations at its 560 MW gas-fired power plant, citing unpaid government debt and what it called unproductive engagements to find a solution. "This is our last resort. The accumulating unpaid bills have significantly impacted our operational capacities, making it unsustainable to continue without addressing these financial challenges," it said in a statement. The state-run Electricity Company of Ghana did not immediately respond to a request for comment. The government has been seeking a debt deal with independent power producers (IPP) as it grapples with its worst economic crisis in a generation, characterised by double-digit inflation and…

Dec

05

2023

By NQOBILE DLUDLA

South Africa’s Aspen expands further into Asia with Sandoz China deal

BUSINESS

ASPEN Pharmacare is expanding further into China through a deal to buy the Chinese business of Swiss group Sandoz for up to 92.6 million euros ($100.6 million), the South African company said. As part of the deal, Aspen Global Incorporated, a subsidiary of Aspen, will also buy the selling and intellectual property rights of a portfolio of established products that include Sandostatin, Aclasta and Voriconazole. The rights will also cover a pipeline of products to be launched by Sandoz China in the short to medium term. The deal "represents an attractive opportunity for Aspen to take a major step in its stated…