7 October 2024 Morning Biz News: Economic Activity Slows in Namibia Amid Currency Adjustments and Global Concerns

October 7, 2024 22

Business Registrations Decline in Namibia
Economic activity in Namibia experienced a slowdown in the second quarter of 2024, with business registrations falling by 34% compared to the same period in 2023, according to data from the Bank of Namibia, as reported by The Brief. This downturn was evident in both close corporations, which saw a significant drop of 37.7%, and private companies, which recorded an 8.4% year-on-year decrease. The decline raises concerns about the overall economic environment and business confidence in the country.
South African Rand Gains Ground
The South African rand saw modest gains against the dollar on Friday, despite a strong U.S. jobs report that usually supports the dollar. This comes after a challenging week for risk-sensitive currencies amid escalating tensions in the Middle East. As of Friday afternoon, the rand strengthened approximately 0.3%, trading at 17.465 against the dollar. However, it has declined about 2% since the start of the week, reflecting ongoing volatility in the currency markets.
Nigeria to Automate Foreign Currency Trades
In a significant move towards enhancing transparency and liquidity, Nigeria’s central bank is set to introduce an automated system for foreign currency trades in December, replacing the existing over-the-counter system. As reported by CNBCAfrica, the Central Bank of Nigeria aims for this change to facilitate a more market-driven exchange rate accessible to the public. Additionally, new guidelines for foreign exchange participants have been released to support the transition, aiming to streamline currency trading processes in the country.
Germany Adjusts Economic Forecast
The German government has revised its economic outlook, now expecting a contraction of 0.2% in 2024, down from its previous forecast of 0.3% growth. According to Deutsche Welle, the anticipated second consecutive year of economic shrinkage is attributed to an industrial slowdown, reduced exports, and rising energy costs. This update reflects ongoing challenges faced by the German economy in the current global landscape.