9-16 May Weekly Economic Wrap: Diverse Trends Unfold Across Africa and Beyond

In the dynamic landscape of African and international economies, the past week has witnessed a plethora of developments, from notable milestones to significant shifts in key sectors. Here’s a comprehensive roundup of the latest economic highlights:

Namibia: Private Sector Credit Declines, Port Authority Achieves Milestone

• Official data from Namibia reveals a substantial decline of 65.7% in private sector credit disbursements over the past year, totaling N$1.44 billion compared to N$4.21 billion in the preceding equivalent period. The normalized cumulative credit outstanding stands at N$112.7 billion.
• Meanwhile, the Namibian Ports Authority has reached a milestone by managing 8 million tonnes of cargo in the fiscal year ending March 31, 2024, showcasing a 4% rise from the previous year. Significant exports like salt, copper concentrate, manganese ore, and zinc/lead concentrate contributed to this achievement.

South Africa: Mixed Fortunes for Vehicle Dealer, Rand Maintains Positive Momentum

• Vehicle dealer WeBuyCars reported a half-year loss following its April listing on the JSE. However, the company remains optimistic about its operational performance, having managed to reduce its debt by a fifth.
• South Africa’s rand maintained its positive momentum, trading at 18.35 against the dollar on Wednesday, reflecting a 0.22% increase compared to its Tuesday close. This uptrend was supported by favorable domestic retail sales data and a U.S. inflation report.

Nigeria: Surging Consumer Inflation and Corporate Dividend Miss

• Nigeria’s consumer inflation surged to a 28-year high in April, reaching 33.69% year-on-year, driven by the removal of petrol and electricity subsidies and currency devaluation. The central bank responded by raising interest rates twice this year.
• Vodacom Group Ltd., Africa’s largest wireless carrier, declared a full-year dividend that missed estimates despite recording impressive revenue and operating profit growth of over 20%.

International: Oil Prices Surge, Anglo American’s Strategic Shift, Uber’s Expansion

• Oil prices surged on Tuesday, attributed to a tightening supply-demand balance resulting from operational disruptions, increased demand, and voluntary output reductions.
• Anglo American announced plans to exit diamond, platinum, and coal mining in one of the biggest shake-ups in its 107-year history, aiming to fend off a takeover approach from rival BHP Group.
• Uber Technologies Inc. is acquiring Delivery Hero SE’s Foodpanda business in Taiwan for $950 million, consolidating its position in the Asian market as part of its regional expansion strategy.

The economic landscape remains dynamic, with countries and corporations navigating a range of challenges and opportunities. As stakeholders adapt to evolving market conditions, vigilance and strategic planning will be crucial to navigating the road ahead.