26 September-3 October 2024 Weekly Economics Wrap

This week’s economic highlights reflect a mixture of local and international developments impacting investment, currency stability, and market performance across various sectors.

Namibia’s Investment Reluctance
A significant portion of Namibians are hesitant to invest, with the 2023 Old Mutual Financial Services Monitor revealing that 37% of the population is unwilling to accept any investment risks. This trend is particularly pronounced among younger consumers, indicating a broader reluctance to engage in the investment landscape.

Osino Resources Abandons Gold Refinery Plans
In a notable decision, Osino Resources has opted against constructing a gold refinery in Namibia for its forthcoming Twin Hills project. The company cited economic and regulatory challenges as key factors in its decision, stating that current regulations mandate gold refining through the Rand Refinery in Johannesburg, South Africa, making the process economically unfeasible.

Amazon Launches ‘Shop Mzansi’
In a positive development for South African businesses, Amazon has introduced ‘Shop Mzansi,’ a platform showcasing over 160 local brands across various categories. Robert Koen, Amazon’s sub-Saharan Africa managing director, highlighted that the initiative aims to support small businesses and help them tap into global markets, fostering economic growth within the region.

Spar Group’s Mixed Performance
The Spar Group has acknowledged that its sales performance for the 47 weeks ending 23 August 2024 has been weaker than anticipated. Despite this, a trading update revealed that group turnover from continuing operations increased by 4.1% during the period, indicating that the company is making significant strides on its short-term priorities.

Stability of Kenya’s Shilling
In Kenya, the shilling remained stable at 128.50/129.50 to the dollar, supported by tea export inflows that balanced month-end importer demand. Traders noted that central bank dollar-buying activity has limited potential gains for the currency in recent weeks.

Nigeria Approves Exxon Mobil Sale
Nigeria is poised to approve Exxon Mobil Corp.’s sale of its oil and gas assets to domestic supplier Seplat Energy Plc. President Bola Tinubu stated that this move is expected to boost oil and gas production, positively impacting the country’s economy.

Oil Prices Steady Amid Global Concerns
Oil prices have remained stable, balancing concerns over potential disruptions to exports from the Middle East due to escalating conflicts with the likelihood of increased supply amid sluggish global demand growth, as reported by Reuters.

Mark Zuckerberg’s Wealth Surge
In international news, new figures from Bloomberg’s Billionaire Index reveal that Meta CEO Mark Zuckerberg has increased his personal fortune by $73.4 billion in 2024, bringing his net worth to $201 billion. He now ranks as the fourth richest person in the world, joining an exclusive club of billionaires.

UK’s Diplomatic Efforts Post-Brexit
UK Prime Minister Keir Starmer met with European Commission President Ursula von der Leyen in Brussels, marking his first visit as British premier. Starmer aims to “reset” relations with the EU following Brexit’s strains but clarified that he does not intend to pursue more significant actions, such as rejoining the Single Market or Customs Union, despite ongoing efforts to enhance diplomatic ties.

This week’s economic landscape illustrates the complexities faced by different sectors, from investment attitudes in Namibia to currency stability in Kenya and international business developments, all contributing to the dynamic economic environment in which we operate.