25 July-1 2024 August Weekly Economics Wrap: Telecom Namibia’s Major Upgrade, Rand Strengthens, Shoprite Growth, and Global Financial Updates

Namibian Telecom Sector Gets a Boost

UCOM and BDQ Mobile Network Solutions have launched a 10-year partnership to rejuvenate Namibia’s third mobile phone operator. According to The Brief, BDQ, in collaboration with American-based VANU Technology, will introduce cutting-edge telecommunications infrastructure to enhance service quality across the nation.

Telecom Namibia has also made headlines by activating the Equiano subsea cable. This major development promises to significantly improve internet connectivity with higher bandwidth and lower latency. Featuring 12 fiber pairs and a design capacity of 144 Tbps, the Equiano cable offers 20 times the capacity of current connections between Europe and Southern Africa. Economic projections suggest a 7.5% increase in internet penetration in Namibia by 2025, marking a substantial boost for the country’s digital landscape.

South African Financial Markets

The South African rand showed resilience on Friday, strengthening to 18.27 against the dollar. This 0.6% gain came as U.S. inflation data did not alter expectations of a Federal Reserve interest rate cut in September.

In retail news, Shoprite Group’s Checkers Sixty60 on-demand delivery platform saw remarkable growth, reporting a 58.1% increase in the 2024 financial year. The overall group and its core Supermarkets RSA business unit, which accounts for over 80% of sales, also experienced double-digit growth, highlighting a strong performance in South Africa’s retail sector.

Nigerian Economic Developments

The Central Bank of Nigeria has intervened to stabilize the naira by selling $148 million in foreign exchange to 29 authorized dealer banks, easing pressure on the currency. The dollars were sold at rates between 1,470 and 1,510 naira. This move follows the naira hitting a four-month low of 1,640 naira earlier in July.

Additionally, the Nigerian government has authorized the sale of crude oil to the Dangote refinery in naira, resolving previous disputes with oil regulators. The Nigerian National Petroleum Company Limited has been directed to implement this change immediately, streamlining transactions and addressing previous issues with crude supply.

Global Financial Updates

Asian shares experienced a rebound on Monday amid a busy week of earnings reports and central bank meetings. Market observers are anticipating potential easing signals from the U.S. and the UK, while Japan may consider raising borrowing costs. Oil prices also saw a slight increase due to concerns over escalating conflict in the Middle East, following a rocket attack in the Israeli-occupied Golan Heights attributed to Hezbollah.

Samsung Electronics reported its fastest growth since 2010, with operating profits soaring to $7.5 billion for the second quarter. This impressive 1,462.29% increase from the previous year was driven by rising memory chip prices and robust demand for generative AI. The company also saw a 23.4% rise in overall sales, fueled by strong OLED panel sales.

The Federal Reserve, in its recent two-day meeting, decided to keep interest rates unchanged but hinted at a potential rate cut in September. The central bank noted progress towards its 2% inflation target, though further efforts are needed to fully achieve its goals.

Stay tuned for more updates and insights in our next wrap-up!