16 October 2024 Morning Biz News: Global Economic Trends: Namibia’s Repo Rate, Infrastructure Funding, and Rising Inflation

Bank of Namibia Set to Cut Repo Rate Amid Regional Trends

Analysts predict that the Bank of Namibia’s Monetary Policy Committee (MPC) will announce a 25-basis point reduction in the repo rate, lowering it from 7.50% to 7.25% on Wednesday. This expected move mirrors global and regional shifts toward more accommodative monetary policies, following a recent rate cut by the South African Reserve Bank. The decision comes as Namibia seeks to balance inflation control with economic growth, easing borrowing costs to stimulate investment and consumer spending.

South Africa Launches Funding Bid to Boost Infrastructure and Growth

South Africa’s Public Works and Infrastructure Minister, Dean Macpherson, has unveiled a bid window for project preparation funding in the energy, water, sanitation, and transport sectors. This initiative aims to bolster infrastructure investment, create employment opportunities, and add 1.5 percentage points to the nation’s economic growth. In addition, a National Construction Summit is set for next month in eThekwini, providing a platform for stakeholders to discuss the future of South Africa’s construction sector and furthering its contribution to economic recovery.

Nigeria’s Inflation Rate Climbs to 32.70% in September

Nigeria’s inflation rate rose to 32.70% in September, up from 32.15% in August, marking the first increase in three months. The national statistics agency attributes this rise to persistent inflationary pressures, with CNBCAfrica reporting that analysts had cautioned about a potential reversal in the slowdown seen in July and August. The recent surge in petrol prices, alongside the broader cost-of-living crisis, has compounded inflationary concerns, putting additional strain on household spending and economic stability in Nigeria.

Global Steel Demand Forecast to Decline in 2024

The World Steel Association has forecast a 0.9% decline in global steel demand in 2024, predicting a total consumption of 1.75 billion tonnes. This drop is attributed to high costs, economic uncertainty, and tighter financing conditions. However, a recovery of 1.2% is anticipated in 2025, driven by increased infrastructure investment and a rebound in consumption. The automotive sector, which saw robust demand last year, is expected to slow, contributing to the overall downturn. Geopolitical tensions and economic challenges will continue to impact the steel market in the near future.

Financial Indicators

• Namibia Dollar: N$17.65 to the US$, N$19.22 to the Euro, N$23.07 to the Pound
• Gold: Trading at US$2,662.06 per fine ounce
• Brent Crude: US$77.46 per barrel
• Bitcoin: US$1,188,220.48

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