28 October 2024 Morning Biz News Regional Economic Update: Agriculture Boost, Inflation, and Currency Shifts

In a promising development for Namibia’s agricultural sector, the Otjimbele Agriculture Project, which has poured an impressive N$120 million into the local economy, is set to commence commercial production of ITUM table grapes in 2025. This first large-scale harvest is expected to bring a substantial boost to Omusati’s agricultural landscape, marking a pivotal shift towards increased food production and regional economic growth.

Meanwhile, South Africa’s Transport Minister Barbara Creecy has announced comprehensive efforts to elevate Transnet’s operational efficiency. Speaking at an ANC National Executive Committee briefing, Creecy highlighted that the establishment of a “war room” is focused on addressing day-to-day challenges faced by Transnet, with an overarching goal of increasing capacity in both rail and port operations. These improvements aim to boost Transnet’s revenue and meet growing logistical demands by enhancing port productivity and expanding freight volumes.

In Zimbabwe, inflation concerns are mounting. The country saw a substantial increase in month-on-month inflation, reaching 37.2% in October, primarily due to a significant depreciation of the Zimbabwean dollar. Following the central bank’s September decision to allow a 40% devaluation of its gold-backed currency, the exchange rate slid from 24.39 per USD, weakening further as the economic impacts unfolded.

Turning to Asia, Japan’s yen hit a three-month low, fueled by political uncertainties after the ruling coalition lost its parliamentary majority. This shift has led investors to expect a pause or slowdown in future rate hikes. Meanwhile, the dollar gained strength as U.S. yields climbed, pushing the yen to 153.3 per dollar and 165.36 per euro in early trading.

Financial Indicators

Namibia’s currency is currently trading at:

• 17.64 NAD to the USD
• 19.09 NAD to the EUR
• 22.90 NAD to the GBP

In commodities:

• Gold stands at $2,747.95 per ounce.
• Brent crude is priced at $76.05 per barrel.
• Bitcoin is trading at N$1,196,496.86 per BTC.

Stay tuned with Biz News for more insights into these dynamic markets and updates on economic developments across Southern Africa and beyond.