02-09 January 2025 Weekly Economics Wrap

In Namibia, the stock market reported a total trade value of N$13.4 million year-to-date, with 269,245 shares traded across 24 deals as of January 3. The financials sector dominated, contributing over N$8.8 million in value across 15 deals. Meanwhile, Chinese Foreign Minister Wang Yi announced multibillion-dollar investments in Namibia, including nuclear power, minerals processing, and housing for the police force. China’s N$ 94 billion investment in Swakop Uranium is Africa’s largest Chinese investment, reinforcing the growing economic ties between the two nations.

In South Africa, the government has introduced a 150-percent tax incentive for electric and hydrogen vehicle manufacturers, effective March 2026, as part of a long-term strategy to transition the automotive industry over the next decade. However, South African manufacturing activity has seen a decline for the second consecutive month in December, with the purchasing managers’ index (PMI) dropping to 46.2 from 48.1 in November. This indicates challenges for the sector as the PMI remained below the 50-point threshold.

On the African continent, Uganda has secured its place as the only African country among nine new members in the expanded BRICS partnership, officially joining on January 1. This move is seen as a step toward strengthening economic ties with emerging markets, according to UNISA researcher Sipho Mantula. Meanwhile, Ghana’s inflation continues to rise, with December’s consumer inflation hitting 23.8% year-on-year, up from 23.0% in November. The increase is primarily attributed to higher food prices, as stated by Ghana’s government statistician Samuel Kobina Annim.

Internationally, the U.S. dollar hovers near a two-year high as traders await a series of U.S. economic data releases this week, including December’s nonfarm payrolls report, which may provide insights into the Federal Reserve’s rate trajectory. The global space race is also heating up, with significant investments from private sector players. Japanese start-up Interstellar Technologies announced a $44 million investment from Toyota Motor Corporation, signaling further interest in space exploration. Meanwhile, the British pound has dropped to its lowest point in nine months, driven by a rise in UK government borrowing costs, which have surged to their highest levels since the 2008 financial crisis. This increase is raising concerns about potential tax hikes or spending cuts.