6-13 June 2024 Weekly Economics Wrap: Namibia’s Fuel Sector Divestment, African Trade Growth, and Global Market Shifts

Namibia: Vitol Emerald Bidco to Divest Service Stations

In a bid to uphold fair competition standards, Vitol Emerald Bidco (Pty) Ltd is set to divest from 58 Engen and Shell service stations across Namibia. This move comes as a requirement following Vitol’s acquisition of Engen Ltd, with the Namibian Competition Commission imposing the condition to prevent monopolistic dominance. The decision aims to ensure a level playing field in the country’s fuel retail sector, as reported by The Brief.

Namibia’s Pork Production Grows, Boosting Self-Sufficiency

The first quarter of 2024 saw Namibia’s local production of fresh and processed pork meet 49.4% of the country’s consumption demands. This marks a significant step towards self-sufficiency, with the Livestock of Namibia Board noting a 10.3% increase in pigs slaughtered compared to Q1 2023, rising from just over 11,100 to 12,253. The data, also reported by The Brief, underscores positive growth in the agricultural sector.

South Africa: Volkswagen Cautious Due to Power Supply Uncertainty

Volkswagen’s operations in South Africa face uncertainty over power supply issues, hindering the German automaker’s expansion plans in the country. Despite a recent two-month respite from power cuts that have plagued South Africa since 2008, no sustainable solutions have been presented to address the concerns of manufacturers, as reported by News24.

MultiChoice Group Reports Loss Amid Economic Challenges

MultiChoice Group in South Africa disclosed a pre-tax loss of 706 million rand for the fiscal year ending in March. The company attributed the downturn to currency fluctuations and reduced consumer spending. The announcement highlights ongoing economic challenges affecting consumer-driven sectors in the region.

African Developments: Tanger Med Port Anticipates Record Container Handling

Morocco’s Tanger Med port expects to surpass its nominal processing capacity of nine million containers this year. Despite security challenges in the Red Sea region, the port’s traffic growth remains robust, according to the deputy managing director’s statement reported by Reuters. The development underscores Morocco’s strategic position as a key player in African logistics and trade.

Nigeria: NNPC Partners with Golar LNG for Gas Production

Nigeria’s state firm NNPC has entered into an agreement with Golar LNG to deploy a floating liquefied natural gas vessel off the coast of the Niger Delta. With Nigeria boasting Africa’s largest gas reserves exceeding 200 trillion cubic feet, the partnership aims to boost gas production and attract investments to enhance output capacity, as indicated in a Reuters report.

International Markets: Economic Indicators and Currency Movements

In global markets, oil prices declined for the second consecutive session on Monday, pressured by a stronger dollar following robust U.S. jobs data. Meanwhile, the euro faced downward pressure after French President Emmanuel Macron’s call for a surprise election in response to a far-right victory in the EU elections. Asian currencies generally strengthened against the weakened U.S. dollar, buoyed by softer U.S. inflation data, while the yen faced pressure ahead of the Bank of Japan meeting.

This weekly economic roundup highlights significant developments across Namibia, South Africa, and broader African regions, as well as key international market movements impacting global currencies and commodities.