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    Omanyano ovanhu koikundaneki yomalungula kashili paveta, Commisiner Sakaria takunghilile Veronika Haulenga

Business / Economics

Weekly Economics Wrap: 7-14 November 2024

todayNovember 14, 2024 7

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Your Weekly Economics Wrap

Welcome to this week’s economic highlights, capturing key developments from Namibia, South Africa, across Africa, and on the international stage.

Namibia: Access Bank’s Graduate Program & Market Activity

Access Bank Namibia recently selected 38 promising graduates to join its highly sought-after Graduate Programme, where they will undergo rigorous training at the bank’s Lagos headquarters. Head of Human Resources Edwina Hashikutuva shared that the program received over 1,000 applications, underscoring its competitiveness and popularity. Designed to blend practical and theoretical banking knowledge, the program is expected to prepare these young professionals for advanced roles in the financial industry.

Meanwhile, the Namibian Stock Exchange (NSX) experienced a quiet trading day on 13 November, with total trading valued at N$1.16 million across 125,000 shares in 12 deals. Year-to-date numbers reflect a more robust performance, with over 22 million shares traded, totaling approximately N$360 million across 1,286 deals. This indicates sustained investor interest and resilience in the local market despite global uncertainties.

South Africa: Taxi Industry Hit by Border Closure & Vodacom’s Profit Drop

South Africa’s cross-border taxi industry faced substantial financial losses following the recent closure of the Mozambique border amid ongoing violence. Joseph Ntemane, Chairperson of the South African Cross Border Association, reported that drivers, especially those who financed vehicles on credit, were severely impacted, losing crucial income during the shutdown. This strain on the transportation sector highlights the broader economic impact of regional instability on small and medium enterprises.

Additionally, Vodacom Group, Africa’s largest telecommunications company by market value, reported an 18% decline in net income for the first half of the fiscal year, attributing the loss primarily to currency devaluations in Egypt and Ethiopia. This income drop to N$6.84 billion demonstrates the challenges facing African businesses amid fluctuating currency rates and a complex economic landscape.

Africa: Nigeria’s Banking Sector Capital Raise & Gas Supply Deal

Nigeria saw notable movements in its banking sector as FBN Holdings Plc launched a substantial capital-raising effort, issuing nearly 6 billion new shares in a rights issue valued at around ₦149.6 billion. This capital boost aims to strengthen First Bank of Nigeria, its primary subsidiary, in a move that underscores the institution’s commitment to fortifying its financial base amidst a competitive banking environment.

In a separate development, Nigeria’s state-owned oil company, NNPC Ltd, announced a 10-year agreement to supply 100 million standard cubic feet of gas daily to the Dangote oil refinery. Although financial details were not disclosed, this long-term deal emphasizes Nigeria’s focus on expanding its energy sector and establishing stable domestic partnerships to support major industrial players.

International: China’s Economic Slowdown, Mining Detentions in Mali & Bitcoin’s New High

China’s economy is under pressure as recent data shows a slowdown in consumer price growth, marking the weakest rate in four months. Simultaneously, producer price deflation has deepened, prompting Beijing to intensify economic stimulus measures to counteract the downturn. These indicators highlight the challenges facing China’s recovery as it grapples with balancing inflationary pressures and stimulating growth.

Australian gold mining company Resolute Mining saw a sharp 30% drop in its stock price on Monday following news that CEO Terry Holohan and two employees were detained unexpectedly in Mali last week. The detentions underscore risks within the African mining sector, particularly for foreign-owned operations amid political and security issues.

In the cryptocurrency world, Bitcoin surged to a record high of over $81,000, driven by optimism surrounding supportive regulatory policies and the success of pro-crypto political figures in the U.S. This recent rally demonstrates the increasing investor confidence in the cryptocurrency market, which continues to gain traction on the global financial stage.

Stay tuned for next week’s wrap, where we’ll keep you updated on the latest in economic developments both locally and globally.

Written by: Leonard Witbeen

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