15-22 August Weekly Economics Wrap: Global Market Movements and Strategic Investments Highlight Weekly Economic Developments

Namibian Gold Exploration and Energy Developments

• Wia Gold’s Exploration Success: Australian gold exploration company Wia Gold has announced significant progress at its Kokoseb gold project. Recent drilling efforts have confirmed the presence of existing gold zones, uncovered high-grade mineralization at depth, and identified a new mineralized area in the eastern zone. This marks a pivotal development in Namibia’s growing mining sector.
• NAMCOR’s Strategic Investments Pay Off: The National Petroleum Corporation of Namibia (NAMCOR) revealed that the drilling of 38 dry wells over three decades, with investments exceeding N$20 billion, is beginning to yield results. Interim Managing Director Ebson Uanguta stated that these efforts are leading to significant discoveries in the Orange Basin, with the potential to double Namibia’s economy in the next 15 years.

South African Economic Updates

• Qatar Airways’ Investment in Airlink: Qatar Airways Group has acquired a 25% stake in Airlink, Southern Africa’s leading independent regional carrier. This strategic investment will enhance Airlink’s capacity and market reach across its 15-country network, including Namibia, where it operates flights to Windhoek and Walvis Bay. Airlink CEO Rodger Foster highlighted this deal as a significant boost to the company’s growth and partnerships.
• South Africa’s Inflation Decline: South Africa’s inflation rate dropped to 4.6% in July, down from 5.1% in June, marking a three-year low. This decline, surpassing analysts’ expectations, brings inflation closer to the central bank’s target and raises the possibility of an interest rate cut next month.

African Financial Developments

• Investment in African Fiber Networks: Liquid Telecommunications Holdings, an African fiber company, is looking to raise $225 million in equity by the end of the year, with a significant portion expected from a US development agency. CEO Hardy Pemhiwa noted that the International Development Finance Corporation will be one of the biggest participants, contributing $90 million in the next few weeks.
• Nigeria’s Remittance Surge: Nigeria recorded a remarkable increase in remittance inflows, reaching $553 million in July, a 130% year-on-year rise. This surge has caught the attention of investors, especially following cautious trading after Monday’s oversell in the bond market.

International Market Highlights

• U.S. Dollar Weakness and Global Currency Movements: The U.S. dollar hovered near a seven-month low as traders anticipate potential interest rate cuts by the Federal Reserve next month. This dollar weakness boosted the euro to its highest level this year and brought the British pound to a near one-month peak. The emerging markets currency index also reached a record high, with market focus now shifting to Federal Reserve Chair Jerome Powell’s upcoming comments.
• Japan’s Export Growth: Japan’s exports rose by 10.3% in July, driven by the yen’s depreciation to a 38-year low. The growth, primarily in chip parts and cars, aligned closely with economists’ forecasts, signaling robust performance in the country’s export sector.
• Global Equity Markets: Equity markets experienced a pause on Wednesday after a global rally fueled by expectations of Federal Reserve rate cuts. Wall Street saw a dip as investors awaited Jerome Powell’s speech at the Jackson Hole symposium, where further hints on potential policy easing are expected.

This week’s economic developments highlight significant progress in Namibia’s resource sectors, strategic investments in African aviation and telecommunications, and global market movements that continue to influence economic forecasts and strategies.