2 August 2024 Morning Biz News: Namibia Lifts Vehicle Acquisition Ban, Tiger Brands Expands in South Africa, Currency Fluctuations Impact Global Markets

August 2, 2024 27

Government Lifts Ban on Vehicle Acquisitions

Finance Minister Iipumbu Shiimi announced that the Namibian government has lifted the five-year ban on acquiring new vehicles for ministers and government employees. This moratorium, initially imposed by the late President Hage Geingob in 2020, follows a previous halt in 2015 by former Finance Minister Calle Schlettwein as part of austerity measures. The move marks a significant policy shift and could lead to increased government spending on vehicles in the coming months.

Tiger Brands Expands in South African Townships

Tiger Brands, South Africa’s largest food producer, has expanded its presence in South African townships by nearly 50% this year, now reaching over 71,000 stores. The expansion reflects the company’s strategy to tap into previously underserved markets, aligning with a broader trend among FMCG companies and grocery retailers investing in townships and rural areas. This growth underscores the potential of these markets and Tiger Brands’ commitment to enhancing its footprint.

Currency Market Movements

In the global currency markets, the Japanese yen and Swiss franc surged to multi-month highs against the US dollar on Friday. This rise follows a surprising drop in U.S. manufacturing, raising concerns about a potential economic downturn. Conversely, the British pound fell to a one-month low after the Bank of England initiated interest rate cuts. The euro also weakened following dovish comments from the European Central Bank.

Oil Prices See Modest Increase

Oil prices experienced a modest uptick on Friday, with Brent crude increasing by 33 cents per barrel and U.S. West Texas Intermediate crude rising to $76.69. Despite these gains, both benchmarks are on track for their fourth consecutive weekly decline. This trend is attributed to disappointing global fuel demand growth, overshadowing concerns about potential supply disruptions in the crucial Middle East production region.