7-14 March 2024 Weekly Economics Wrap: Key Developments Shaping Markets

Namibia Focus:

1. The Ministry of Industrialisation and Trade continues its commendable efforts in nurturing entrepreneurship within Namibia. Approximately 2000 Macro, Small, and Medium Enterprises (MSMEs) have undergone entrepreneurship training under the EMPRETEC Namibia program since its inception in 2019. This week, an additional 188 MSMEs commenced their training, signaling continued support for the growth and development of entrepreneurial skills in the business sector.
2. The Pupkewitz Group, a prominent player in Namibia’s business landscape, is expanding its footprint beyond national borders. With the inauguration of its first retail store outside Namibia in Upington, South Africa, the Group marks its entry into neighboring markets. Andrea Barry, Chair of the Megatech Board and a Board Director at Pupkewitz Holdings, underscores the strategic advantage of leveraging Namibia’s geographical positioning to deliver competitive products to adjacent markets.

South African Update:

1. The South African rand maintained its strength on Monday, holding onto gains from the previous week amid the absence of significant domestic economic releases. Trading at 18.67 against the dollar by 3 pm, the rand exhibited resilience, strengthening by about 0.3% compared to Friday’s close.
2. South Africa’s financial conduct regulator granted operating licenses to 59 cryptocurrency businesses, marking progress in regulating the asset class within Africa’s most industrialized economy. With crypto assets classified as financial products since 2022, regulatory oversight aims to safeguard financial customers against risks such as money laundering and terrorism financing.

African Highlights:

1. Nigeria experiences a notable increase in foreign exchange inflows, reaching $2.3 billion in February, attributed to renewed interest from foreign investors and a rise in overseas remittances. Despite challenges such as persistent dollar shortages, Nigeria’s foreign exchange reserves receive a boost, reflecting resilience amid economic headwinds.
2. Nigeria’s transport ministry secures $1.3 billion in funding to finalize a transformative railway project linking Kano to Maradi in neighboring Niger. This infrastructure initiative aims to enhance economic and social connections, fostering increased trade and cultural collaboration between the two nations.

International Insights:

1. Saudi Aramco’s Chief Executive, Amin Nasser, expresses intent to explore additional investment opportunities in China, highlighting the robust demand for oil in the country. Saudi Aramco’s strategic investments in refining and petrochemicals in China align with the company’s expansion efforts in key markets.
2. Oil prices see modest gains in early Asian trading, awaiting monthly reports from oil agencies. Brent futures and U.S. crude futures experience slight increases, reflecting market anticipation amid ongoing geopolitical and economic factors.
3. Asian stocks make modest gains ahead of the impactful U.S. inflation report, while Japanese shares decline. Expectations mount regarding the Bank of Japan potentially exiting its ultra-easy monetary policy, influencing market sentiment and currency dynamics.

As global economic dynamics continue to evolve, these developments underscore the interconnectedness of markets and the importance of staying informed to navigate opportunities and challenges effectively.