04-11 April 2024 Weekly Economics Wrap

Africa Global Logistics Wins Contract for Walvis Bay Terminal: Africa Global Logistics (AGL) has secured the contract to oversee operations at the Walvis Bay Multipurpose Bulk Terminal in Namibia. AGL aims to facilitate access to SADC markets and invest in modern infrastructure to drive economic growth in the region. The company plans to support Namibia’s energy, mining, and industrial projects by offering integrated services adhering to global standards.

Namibia-China Trade Surpasses N$24 Billion: Namibia’s trade relations with China have experienced a significant uptick, with bilateral trade volumes exceeding N$24 billion in 2023. China maintains its position as Namibia’s second-largest trading partner, witnessing a notable 16.5% year-on-year growth in trade volume.

Sibanye Stillwater Eyes $500 Million Financing: South African company Sibanye Stillwater announces its intention to potentially raise approximately $500 million through prepayment arrangements, including metals streaming. This move aims to bolster its cash position amid optimism about improving metal prices and market conditions.

Strength of South Africa’s Rand: South Africa’s Rand exhibits strength, with anticipation building for U.S. inflation data and Federal Reserve meeting minutes. By late afternoon on Wednesday, the rand was trading at 18.47 against the U.S. dollar, marking a 0.9% increase compared to its Monday close.

Challenges with Zimbabwe’s New Currency: Zimbabwe’s new gold-backed currency, the ZiG, encounters a chaotic start as shops only accept US dollars, leading to long queues outside banks as citizens seek to access their savings. Despite its official launch, many in the country were unprepared for the transition, with banks struggling to transition their systems to accommodate the new currency.

Legal Battle for Standard Bank: Standard Bank, Africa’s largest lender by assets, faces legal scrutiny as the Pretoria High Court orders the release of information on the accounts of the Central Bank of the Republic of Guinea to a Belgian arms exporter. This case will shed light on the control of resources in the francophone country.

Antitrust Concerns for Microsoft: South African antitrust watchdogs are set to file a formal complaint against Microsoft’s cloud business, citing concerns about the company’s market power. This move could lead to a legal battle and potentially significant fines for the tech giant.

Elon Musk Announces Robotaxi Launch: Tesla owner Elon Musk announces plans to launch the company’s robotaxi on August 8, although details remain scarce.

Goldman Sachs Revises China’s Growth Forecast: Goldman Sachs revises its forecasts for China’s economic growth, citing the country’s robust manufacturing sector. The investment bank projects a 5.0% year-on-year GDP growth for China in 2024, up from the previous forecast of 4.8%.

These developments highlight the diverse economic landscape across Africa and globally, reflecting both opportunities and challenges for businesses and policymakers alike.