BUSINESS - The African Mirror

Nov

16

2023

Nigeria central bank says old bank notes to remain legal tender

BUSINESS

NIGERIA'S central bank said that old bank notes that were due to be removed from circulation next month would now remain legal tender, ending months of uncertainty after an attempt earlier this year to remove them caused serious cash shortages. The Supreme Court in March ordered the Central Bank of Nigeria (CBN) to extend until December 31 the use of old 1,000, ($1.18) 500 and 200 naira notes, whose initial withdrawal from circulation became an election issue after it caused widespread hardship and anger. The bank had defended the removal of the notes, saying new ones would be harder to counterfeit and…

Nov

15

2023

By The African Mirror

Nigeria’s central bank sees ‘refocused’ role in supporting growth

BUSINESS

NIGERIA'S central bank will pull back from direct fiscal interventions and take "more limited advisory roles" in support of the government's economic growth agenda, governor Olayemi Cardoso said. The bank's current approach blurred the lines between monetary and fiscal policy, undermining its ability to effectively manage inflation and foreign reserves, Cardoso said in an emailed speech. The central bank, under former governor Godwin Emefiele who was ousted in June, had kept the naira artificially strong and pursued unorthodox monetary policy by providing liquidity to money markets through interventions. "There is need to pull the central bank back from direct development…

Nov

15

2023

By The African Mirror

Ghana inflation slows to 35.2% y/y in October – statistics agency

BUSINESS

GHANA'S consumer inflation slowed to 35.2% year on year in October from 38.1% in September, the statistics service said. The cocoa, gold and oil-producing country, which faces its worst economic crisis in a generation, is in talks with bilateral and commercial creditors to restructure its debts.

Nov

14

2023

By The African Mirror

South African petrochemical company Sasol’s chairman resigns

BUSINESS

SOUTH African petrochemical company Sasol said that Sipho Nkosi had stepped down as non-executive director and chairman of the board, effective November 10. The resignation comes as "he was concerned that some of his business interests may be perceived to place him in conflict with the interests of Sasol," the company said in a statement. Stephen Westwell, a non-executive and lead independent director, was appointed pro tem chairman of the board on November 11, the statement said.

Nov

14

2023

By BRIAN BENZA

De Beers keeps production target despite supply glut

BUSINESS

DE BEERS, a unit of Anglo American, is sticking to its 2023 production target because it is confident of the long-term outlook, its chief executive said, despite a glut in diamond supply amid weakening demand. Global demand for diamonds has fallen to levels not seen since the pandemic and De Beers, at its latest sale in October, recorded an 82% decline in demand from a year earlier to $80 million as global economic challenges continue to impact appetite for luxury goods. In recent months major industry players have taken measures to ease the supply glut, with India - which cuts and polishes…

Nov

14

2023

By The African Mirror

Abundant rains, sun will help Ivory Coast’s cocoa crop

BUSINESS

DOWNPOURS mixed with sunny spells in most of Ivory Coast's main cocoa regions will help cocoa trees go through the dry season, which runs from mid-November to March, farmers said. Last week's weather conditions will boost the size of the October-to-March main crop and improve the soil moisture content, helping the trees to reach their maximum potential from December to February, according to farmers from the world's top cocoa producer. "The rains are good. From now until February we'll have plenty of cocoa," said Kouassi Kouame, who farms near the western region of Soubre, where 49 mm fell last week,…

Nov

12

2023

By The African Mirror

African Development Bank approves $102.6 mln support programme for Ghana

BUSINESS

THE African Development Bank (AfDB) has approved a $102.6 million budget support programme for Ghana focused on fiscal consolidation and economic recovery, the bank and Ghana's finance ministry said on Thursday. Ghana, which produces gold, cocoa and oil, is in talks with bilateral and commercial creditors to restructure its debts amid its worst economic crisis in a generation. The West African nation has been locked out of international capital markets as it struggles with spiralling domestic debt costs. "The program will facilitate the government's economic recovery reforms through enhanced public finance, increased productivity, and job creation," AfDB's representative, Eyerusalem Fasika,…

Nov

12

2023

By The African Mirror

Nigeria gets refineries investment, forex pledge from Saudi Arabia

BUSINESS

NIGERIA and Saudi Arabia agreed to a series of investment and cooperation deals, including a pledge by the Saudi government to invest in the revamp of Nigeria's oil refineries and provide financial support to sustain the government's foreign-exchange reforms. The agreements were reached at a bilateral meeting between Nigerian President Bola Tinubu and Saudi Crown Prince Mohammed bin Salman on the sidelines of the Saudi-Africa summit in Riyadh. Under Tinubu, Nigeria has embarked on the boldest reforms in decades, scrapping a popular petrol subsidy and unifying the country's multiple exchange rates as part of measures "aimed at improving the ease…

Nov

11

2023

By PATRICK WERR and SARAH EL SAFTY

Egypt’s stumbling economy faces new pressures from Gaza crisis

BUSINESS

EGYPT'S struggling economy faces new risks as the war in the neighbouring Gaza Strip threatens to disrupt tourism bookings and natural gas imports. Oil-rich Gulf countries, which repeatedly propped up Egypt's finances with deposits over the past decade, had recently shifted to seeking profitable investments instead. Now they may step up assistance once more, analysts and bankers say. The Gaza war on the border with Egypt's Sinai Peninsula comes after the impact of Russia's invasion of Ukraine and the coronavirus pandemic exposed long-standing frailties in the Egyptian economy. Egypt had relied heavily on inflows of short-term portfolio investment, tourism revenues…

Nov

10

2023

By The African Mirror

Kenya to pay back $300 mln of $2 bln bond in December – Ruto

BUSINESS

KENYA will in December pay back $300 million of a $2 billion Eurobond that falls due next June, President William Ruto said. The East African nation is being watched closely to see how it handles the bond due to its growing debt repayments, weakening currency and a surge in yields that has effectively locked out many frontier economies from markets. "I can now confirm ... with confidence that we will and we shall pay the debt that has become a source of much concern to citizens and markets," Ruto said in his State of the Nation address to parliament. Kenya's…