BUSINESS - The African Mirror

Oct

21

2023

South Africa’s Tiger Brands names new CEO, sending shares higher

BUSINESS

SOUTH Africa's biggest food producer Tiger Brands said that a new CEO would take over from the start of next month to tackle the "challenges currently facing the company", sending its shares just over 10% higher. CEO Noel Doyle, who has been in charge for more than three years and spent nearly two decades at the company, is being replaced by Tjaart Kruger, the former CEO of rival Premier Foods. The end of Doyle's tenure was a joint decision after the board concluded new leadership was needed, Tiger Brands said. South African consumer goods companies and retailers' profits have been hit…

Oct

19

2023

By PROMIT MUKHERJEE

Mercedes-Benz local boss urges South Africa to speed up EV shift

BUSINESS

SOUTH Africa needs to regulate swiftly to spur demand for electric vehicles (EVs), the co-CEO of the local unit of Mercedes-Benz said, as the country's automotive industry risks being irrelevant to the global market. For South Africa as a whole, three-quarters of its vehicle production is exported. The luxury carmaker Mercedes-Benz exports 90% of its total South African output, primarily to Europe, which plans to ban sales of new petrol and diesel cars from 2035. At the same time, South Africa's policy paper on EVs is two years behind schedule. The government has said it will be published this year. "The…

Oct

19

2023

By BONFACE ORUCHO, BIRD STORY AGENCY

Modern cargo ship launched as East African lake logistics boom

BUSINESS

KENYA is emerging as a significant shipbuilder in the East African region as the country taps into rising demand for inland water logistics on Lake Victoria and across the region. The country this month commissioned its first domestically-built modern inland cargo ship, the MV Uhuru II, built by the military-controlled Kenya Shipyards Limited, with help from Dutch partner Damen Shipyards. President William Ruto emphasized that the ship serves as a "catalyst for economic growth and development in our region." Designed for cargo transportation within Lake Victoria, MV Uhuru II boasts advanced systems capable of ferrying oil and other bulk cargo…

Oct

18

2023

By TAREK AMARA

Tunisia to keep fuel, food subsidies in 2024, raise taxes for banks, others

BUSINESS

TUNISIA expects its economy to grow by 2.1% in 2024, up from 0.9% in 2023 and plans almost the same subsidies for fuel, electricity and food while raising taxes for banks, hotels and liquor firms, a bill on its budget showed on Tuesday. The bill included no reference to an agreement with the International Monetary Fund (IMF). Tunisia's President Kais Saied this year rejected what he called IMF 'diktats' saying they could lead to social protests, casting doubt on the IMF deal. Tunisia last year reached a staff-level deal with the IMF for a $1.9 billion loan, but it has…

Oct

18

2023

By FELIX ONUAH

Nigeria proposes 26 trillion naira budget for 2024

BUSINESS

NIGERIA plans to spend 26.01 trillion naira ($34 billion) for the 2024 budget and will assume an oil price of $73.96 for its expenditures at an exchange rate of 700 naira per dollar, its budget minister said. Atiku Bagudu, Minister of Budget and Economic Planning of Nigeria Atiku Bagudu, speaking to reporters, also said Nigeria will target oil production of 1.78 million barrels per day under the 2024 spending plan. He added the government will set aside 8.25 trillion naira for debt service ($10.8 billion) and 7.78 trillion naira to cover salaries and pensions for civil servants. Bagudu said the…

Oct

17

2023

By RACHEL SAVAGE

Debt squeeze leaves sub-Saharan Africa’s governments in fiscal bind

BUSINESS

The International Monetary Fund (IMF) urged sub-Saharan African policymakers last week to cut costly fuel subsidies and raise more in taxes, measures that may be hard to implement as governments grapple with tough spending choices amid high debt. The region has been hit by repeated economic shocks since 2020, from the COVID-19 pandemic to Russia's invasion of Ukraine and rising U.S. interest rates, putting cash-strapped, debt-laden governments in a political and fiscal bind. However, the IMF's prescriptions, set out at its annual meetings last week, are often painful to administer. Countries from Ghana, which defaulted on its debts last year, to Kenya, which…

Oct

15

2023

By SETH ONYANGO, BIRD STORY AGENCY

Safaricom’s ‘Lipa Na M-pesa’ model comes to South Africa – courtesy of MTN

BUSINESS

MTN has unveiled MoMoBusiness wallet, a suite of payment solutions to tap into the growing demand for cashless transactions in the South African market. Through its wallet, businesses can settle bills, salaries, and suppliers, collect bulk payments, access financial services such as loans and savings, and create invoices. "Businesses can accept payments directly from customers for transactions on everything from prepaid services to shopping vouchers, completely fee-free. Flexible cash-out options ensure easy access to funds, providing both convenience and security in financial management," said MTN SA Chief Financial Services Officer Bradwin Roper. "Within MTN stores, new point-of-sale devices will also…

Oct

14

2023

By METI TESHOME, BIRD STORY AGENCY

Essential credit comes to millions of women as microfinance and mobile money gain traction in Ethiopia

BUSINESS

WHEN 38-year-old Konjit Alebachew lost her husband, she urgently had to find an income. Farming looked like an option. But the widow, who lives 120 kilometres from Addis Ababa, would have to raise capital. “I started working in one of the private farms in my home town and saved a small amount from my monthly salary,” Alebachew said, describing the period five years ago, right after she lost her husband - and her three daughters lost their father. With no bank account and no financial history, she battled to manage her finances in a way that would offer her a…

Oct

14

2023

By The African Mirror

About 40% of South African consumers shop more at discount stores, NIQ says

BUSINESS

ABOUT 40% of South African consumers are shopping more often at discount stores, while 48% think private-label products are a good alternative to name brands, data from market researchers NIQ showed, as customers adjust to soaring prices. August food prices are up 8.2% over the last year, outpacing the broader inflation rate across the whole economy and adding strain to household budgets already stretched by high transport bills and other price increases. To survive the cost of living crisis, 99% of shoppers have changed the way they shop for fast-moving consumer goods, with 34% buying whatever brand is on promotion…

Oct

14

2023

By JULIA PAYNE and LIBBY GEORGE

Nigeria buying fuel with cash, rather than crude, in post-reform shift

BUSINESS

NIGERIAN state oil company NNPC has begun buying gasoline via cash tenders, rather than oil swaps, for the first time in nearly a decade, four sources familiar with the matter told Reuters. The company's latest tender to buy gasoline for delivery in November closed this week, the sources said. Two of them added that NNPC would pay the last debts owed under the long-running oil swaps by the end of next month. NNPC did not immediately reply to a request for comment. The shift is the result of efforts by President Bola Tinubu, inaugurated in May, to eliminate costly fuel…