Morning Biz News – 17 February 2025

SACU Revenue Decline Expected in 2025

The Bank of Namibia has projected a decline in revenue from the Southern African Customs Union (SACU), dropping from N$28 billion in 2024 to N$21 billion in 2025. According to The Brief, Simonis Storm’s Head of Investments, Max Rix, attributes this decrease to global economic conditions and adjustments in SACU’s revenue-sharing formula. This reduction is expected to impact Namibia’s fiscal plans, with potential budgetary constraints in key sectors.

South Africa’s Grid Infrastructure Unfit for Growth

The South African National Transmission Company has raised concerns over the country’s electricity grid infrastructure, stating that it is inadequate to support economic growth and the expansion of renewable energy sources critical to the just energy transition. To address this, the company has outlined plans to expand transmission lines by 14,000 kilometers by 2035. The move aims to enhance grid stability and integrate new energy sources into the national system.

Nigerian Businesses Brace for Inflation Hike

Nigerian businesses are preparing for possible economic shocks, with 50.6% expecting inflation to rise this January, according to the Central Bank of Nigeria’s Inflation Expectation Survey Report, as reported by Business Day Nigeria. Last year’s sharp price increases severely impacted company profits, leading to cautious market expectations. The continued inflationary pressures could challenge economic stability and business growth in Africa’s largest economy.

Chinese Stocks Surge Amid AI-Driven Optimism

Goldman Sachs has raised its target for Chinese stocks, citing artificial intelligence (AI) adoption as a major driver of earnings growth, potentially leading to $200 billion in capital inflows. According to Yahoo Finance, Chinese tech stocks have experienced their best rally in over two years, fueled by DeepSeek’s AI advancements and renewed investor confidence. The surge reflects optimism in China’s technology sector and its long-term growth prospects.

Financial Indicators

• Exchange Rates:
  • Namibia Dollar: N$18.38 to the US Dollar, N$19.28 to the Euro, and N$23.13 to the British Pound.
• Commodity Prices:
  • Gold: $2,880.76 per fine ounce.
  • Brent Crude: $74.74 per barrel.
• Cryptocurrency:
  • Bitcoin: $1,769,481.17 per coin.