World Bank projects lower economic growth for Zimbabwe in 2024

By DavidOchieng Mbewa

Zimbabwe’s economic growth in 2024 is expected to decline to 3.5 percent, compared to 4.5 percent in 2023, according to a report by the World Bank.

The fourth World Bank Zimbabwe Economic Update (ZEU), launched on Wednesday, said that though the country’s economic outlook appeared “moderate”, it reflected continued global headwinds, structural bottlenecks, weather-related shocks, and price and exchange rate volatility.

The World Bank said that one of the factors behind the growth decline is a reduction in agricultural output due to depressed global growth and predicted erratic and below-average rainfall. The Zimbabwe Meteorological Services already warned that the ongoing drought being experienced is expected to continue into 2024.

“The ZEU finds that while Zimbabwe’s economic outlook appears moderate, it reflects continued global headwinds, structural bottlenecks, weather-related shocks, and price and exchange rate volatility,” the World Bank said.

“Prolonged global turmoil could result in a slowdown in global output, reduced trade and investment, increased volatility in commodity prices, and supply disruptions.”

“Climate change shocks may also lower economic output, particularly in the agriculture sector.”

Power shortages are also expected to contribute to the economic growth decline as Zimbabwe’s electricity sector still faces major challenges.

“The report estimates that power shortages cost the country a total of 6.1 percent of GDP per year, comprising 2.3 percent of GDP in generation inefficiencies and excessive network losses, and 3.8 percent of GDP on the downstream costs of unreliable energy.”

Zimbabwe’s persistent power crisis has negatively affected the country’s mining sector and many small- and medium-sized businesses, in addition to disrupting the lives of thousands of households.

The World Bank added that continued economic reforms, including fiscal adjustment and rebuilding foreign exchange reserves, will be vital in helping Zimbabwe mitigate the risks of potential economic downturns.

“To sustain economic growth, Zimbabwe must continue tackling its macroeconomic challenges. Addressing price and exchange rate volatility and public debt arrears will support economic growth and job creation. This will help the country address the poverty, vulnerability, and food insecurity rates, which remain high,” World Bank Country Manager Eneida Fernandes said.

South Africa’s FDI inflows slow in third quarter – central bank

Reuters

FILE PHOTO: A picture of the South African Reserve Bank.

South Africa recorded reduced foreign direct investment inflows of 26 billion rand ($1.40 billion) in the third quarter of 2023, from 53.8 billion rand in the second quarter, central bank data showed on Thursday.

The South African Reserve Bank said in its Quarterly Bulletin that the inflows were due to non-resident parent entities granting loans and increasing their equity stakes in domestic subsidiaries over the period.

Portfolio investments showed a larger outflow of 41.9 billion rand in the third quarter compared to outflows of 4.6 billion in the second quarter of 2023.

The central bank added that this was due to a public entity redeeming a $1 billion international bond.

In October, the World Bank announced a $1 billion loan to South Africa to help tackle the ongoing power crisis.

Africa’s most industrialised nation has had the worst power outages on record this year, with rolling blackouts leaving households and businesses without power for up to 10 hours a day.

Nigeria’s Osimhen, Oshoala win African Footballer of the Year awards

By MathewsMutai

MARRAKECH, MOROCCO – DECEMBER 11: Player of the Year, Victor Osimhen (Nigeria, Napoli) makes a speech at the Confederation of African Football (CAF) Awards 2023 in the Moroccan city of Marrakech on December 11, 2023./REUTERS

Nigerian star Victor Osimhen was named African Footballer of the Year on Monday night at the 2023 CAF Awards ceremony with his compatriot Asisat Oshoala taking home the top prize in the women’s category.

Napoli striker Osimhen beat competition from Egypt’s Liverpool forward Salah and Morocco’s Paris St Germain right-back Achraf Hakimi who were the other two final nominees.

By claiming the coveted honour, the 24-year-old became the first Nigerian winner since Nwankwo Kanu in 1999.

It capped a memorable year for the player who excelled last season for Napoli, scoring 31 goals in all competitions to help them win the Italian Serie A title after a 33-year drought.

“It’s a dream come true for me. I appreciate Nigerians for their support. I appreciate Africa for putting me on the map, encouraging me, and defending me, regardless of my shortcomings,” Osimhen said.

MARRAKECH, MOROCCO – DECEMBER 11: Player of the Year, Asisat Oshoala (Nigeria, Barcelona) makes a speech at the Confederation of African Football (CAF) Awards 2023 in the Moroccan city of Marrakech on December 11, 2023./REUTERS

Barcelona forward Oshoala completed the Nigerian double by winning the women’s African Footballer of the Year for a record sixth time following previous successes in 2014, 2016, 2017, 2019 and 2022.

Morocco won National Team of the Year in the men’s category after their thrilling run to the World Cup semi-finals in Qatar, while their manager Walid Regragui won Coach of the Year.

Nigeria took home the trophy for National Team of the Year, but South Africa’s Desiree Ellis won women’s Coach of the Year for the fourth time in succession.

Congo reaffirms commitment to OPEC, oil minister says

Reuters

FILE PHOTO: OPEC logo is seen in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo Acquire Licensing Rights

Congo on Saturday reaffirmed its commitment to the Organization of the Petroleum Exporting Countries (OPEC), days after neighbor Angola decided to leave the organization.

“The Republic of Congo reaffirms its steadfast commitment to the strategic policy defined by the Secretary-General of OPEC and OPEC+,” Congo’s hydrocarbons minister Bruno Jean-Richard Itoua said in a LinkedIn post.

“Congo is committed to continuing close and constructive collaboration with all member countries.”

The development comes after Nigeria on Friday reaffirmed its commitment to OPEC, with minister of state for petroleum Heineken Lokpobiri saying that his country’s position remained unwavering.

Congo, which became a full member of OPEC in 2018, has been set a target of 277,000 barrels per day (bpd) for 2024 by the Saudi-led oil producer group.

Nigeria, which is Africa’s biggest oil producer, and Angola were among several countries given lower output targets for 2024 after years of failing to meet previous ones.

Angola’s Oil Minister Diamantino Azevedo said on Thursday that OPEC no longer served the country’s interests. It joins other mid-sized producers Ecuador and Qatar that have left the organization in the last decade.

South African rand slips ahead of key US inflation report

Reuters News

South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration

South Africa’s rand slipped on Friday, as focus shifted towards a reading of a key U.S. inflation gauge due later in the day.

At 0630 GMT, the rand traded at 18.4075 against the dollar , down 0.2% from its previous close.

“The rand struggled yesterday… as thin liquidity and the squaring of short dollar positions ahead of the Christmas long weekend hit the currency,” said Andre Cilliers, currency strategist at TreasuryONE.

In the absence of local economic indicators, investors will look at U.S. core personal consumption expenditures print, the Federal Reserve’s preferred measure of underlying inflation, which is expected to provide clues on its interest rate path next year.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 5.5 basis points at 9.830%.

Tanzania secures $1.1bln World Bank investment fund

The East African

One hundred US dollar bills bundles. Getty Images Image used for illustrative purpose.

Tanzania on Thursday received a $1.1 billion financing package from World Bank, which will fuel inclusive growth across the nation and bolster urban services and climate resilience in the city of Dar es Salaam.

The package comprises two crucial components which is $750 million Development Policy Financing (DPF) and $385 million Dar es Salaam Metropolitan Development Project (DMDP) Phase 2.

Read: Tanzania, Rwanda picked for clean energy pilotThis first package aims to ignite private sector led economic recovery by tackling structural challenges hindering growth. Reforms promoting a better business climate, strengthening state-owned entities (SOEs), and enhancing transparency are key areas of focus.

Whereas the second package will build on the success of the initial project, further upgrading Dar es Salaam’s infrastructure and resilience. Climate-smart infrastructure, an integrated solid waste management system, and robust urban institutions are at the heart of this initiative.

World Bank Vice President for Eastern and Southern Africa Victoria Kwakwa commended Tanzania’s commitment to reform and resilience, stating: “We applaud Tanzania’s efforts towards inclusive, private sector driven growth amidst global challenges. We are committed to supporting Tanzania’s reforms for immediate recovery and sustained economic progress.”The DPF addresses critical roadblocks to private-sector growth, including cumbersome business registration, limited access to credit, and public debt burdens. Additionally, it emphasizes social policies that promote inclusivity and economic resilience, laying a strong foundation for sustainable growth.

Read: Tanzania’s radical shift under SamiaThe DMDP Phase 2 prioritizes climate-smart infrastructure to mitigate the city’s vulnerability to climate change. Improved mobility, livability, and resilience are key objectives, building upon the successes of the first phase, which benefited over 4 million people through road construction, flood protection, and informal settlement upgrades.

World Bank Country Director for Tanzania Nathan Belete highlighted the importance of climate action in Dar es Salaam: “Tanzania remains highly vulnerable to climate change, and the DMDP Phase 2 aims to fortify Dar es Salaam while enhancing its livability and resilience.”

Egypt central bank keeps interest rates steady as growth drops

Reuters

A general view of the new headquarters of Central Bank of Egypt, at the New Administrative Capital (NAC) east of Cairo, Egypt December 8, 2023. REUTERS/Amr Abdallah Dalsh/File Photo Acquire Licensing Rights

Egypt’s central bank kept its overnight interest rates unchanged on Thursday as predicted, saying GDP growth had slowed to 2.9% in the second quarter of 2003 and headline inflation had decelerated in October and November.

The central bank’s Monetary Policy Committee (MPC) left the deposit rate at 19.25% and the lending rate at 20.25%, it said in a statement.

The median forecast in a poll of 14 analysts was for the MPC to hold rates, although six analysts had expected a hike of between 100 and 300 basis points.

Second-quarter growth slowed to an annual 2.9% from 3.9% in the first quarter, implying growth of 3.8% for the whole of fiscal 2022/23, which ended on June 30, the MPC said. The economy grew by 6.7% in fiscal 2021/22.

“Furthermore, real GDP growth is expected to slow down further during fiscal year 2023/24 before gradually picking up thereafter,” the MPC statement said, adding that global economic growth had slowed and the outlook revised downwards as well.

Headline inflation slowed to 34.6% in November from a record 38.0% in September.

“In light of the above, the MPC decided that current policy rates remain appropriate at this juncture,” it said.

Some analysts had expected a quick increase in rates after the political tensions of the Dec. 10-12 presidential election that swept President Abdel Fattah al-Sisi into a third, six-year term. Egypt had been widely expected to delay hard economic measures until after the vote.

TotalEnergies to restart its delayed Mozambique LNG project in early 2024 -sources

Reuters

The logo of French oil and gas company TotalEnergies is seen at the company’s headquarters skyscraper in the financial and business district of La Defense, near Paris, France September 14, 2023. REUTERS/Gonzalo Fuentes Acquire Licensing Rights

CAPE TOWN, Dec 22 (Reuters) – French energy firm TotalEnergies (TTEF.PA) plans to restart its long-delayed $20 billion Mozambique liquefied natural gas (LNG) project in the first quarter of next year, two sources told Reuters late on Friday.

Work on the project has been halted since 2021 when a violent insurgency led by Islamic State-linked militants threatened the Cabo Delgado site, leading to TotalEnergies declaring force majeure and halting construction.

In September, chief executive officer at TotalEnergies, Patrick Pouyanne, said the company planned to restart before the end of this year, as the security situation improved with the support a regional military force including Rwanda.

“TotalEnergies have indicated that they want to restart their Mozambique LNG project in January 2024,” a government source close to the process said, asking to remain anonymous due to the sensitivity of the matter.

The ongoing violence in the northern Mozambican province has claimed thousands of lives since it broke out in 2017, disrupting multibillion-dollar investments including the $20 billion LNG project in which TotalEnergies has a 26.5% stake.

“TotalEnergies has asked funders to get approval for the restart of the Mozambique LNG project in the first quarter of 2024,” said a second funding source with direct knowledge of the project.

The project, which will help transform the economic fortunes of the impoverished southern African country, has faced criticism from environmental activists who last month urged funders to withdraw their financial support.

TotalEnergies did not immediately respond to an out-of-office request for comment.

Unleashing Africa’s potential: A vision for innovation and entrepreneurship

Africa Business

Image used for illustrative purpose. Getty Images

SA Innovation Summit CEO Buntu Majaja looks back at this year’s successes and quantifies next year’s opportunities.

– SAIS2023 brought together 2,600 innovators from 26 countries

– The investment capital in attendance equalled around R30 mbillion

– Startups are pivoting to or building on AI

In the dynamic world of technology and entrepreneurship, the courage and determination of startup founders is invigorating. As the CEO of the SA Innovation Summit, witnessing these entrepreneurs, often unsure of their own capabilities until the moment of truth, fuels a passion for the role and a deep sense of responsibility as an enabler for the industry.

It’s believed that everyone possesses an innate desire to contribute positively to the world, and it is this entrepreneurial spirit that is seen on display at the summit.

South Africa is undoubtedly poised to secure its future economy, even amidst these uncertain times. The summit not only attracted startups and investors, but also spectators seeking inspiration.

This active community, always on the lookout for the next big thing, is a testament to the country and continent’s entrepreneurial mindset. By supporting entrepreneurs, everyone is contributing to job creation – an important consideration anywhere in Africa – and fostering an entrepreneurial culture.

Taking stock

In 2023, the summit focused on exploring Africa’s innovation frontier. In fact, we left a space in front of Africa’s innovation frontier in order to create that engagement and buy-in for all who attended. You were free to insert a verb of your choice to personalise not only the conference experience, but your commitment to the founders and innovators.

Those nearly 2,600 registered attendees came from 26 different countries across 6 continents. Over half (15) of the countries represented were from Africa, which indicates a deep desire for interaction that was maybe missing from the innovation landscape in the post-pandemic times.

Founders who toiled in isolation were once again gathered together for face-to-face dialogue and discussion.

There’s a challenge to the perception that Africa lacks the technological capabilities to compete globally. It has been argued that Africa has all the necessary capabilities; but that the use cases are so much different than in more developed economies that it makes directly importing technology or solutions difficult.

The reality of the challenge that we see lies in redefining what investing in innovation looks like in Africa, and how venture capitalists can achieve a return on social investment.

Those dollars make a difference on a deeper level in Africa. It uplifts entire communities which, in turn, inspires more innovation as the elevated technological minds seek new ways to harness the power these digital solutions have unlocked.

Fintech leads African innovation

Standout trends at this year’s summit was a downturn in numbers of crypto-oriented startups. This didn’t affect the general fintech startup ecosystem, though, with the total count of fintech startups in Africa rising to 678 in 2023. This is up from the 576 Disrupt Africa counted in 2021.

That 17.7% increase in fintech startups mirrors the growth rate observed between 2017 and 2019 during which the number of active ventures rose by 17.3% on the back of the blockchain hype. During that period the number of blockchain startups active in Africa leapt 150% to 45 (9.2% of the fintech total).

In 2023 only 37 blockchain startups remain active on the continent, accounting for just 5.5% of the fintech total. More than half of those startups are from Nigeria, with 21 startups while South Africa is home to 9, and 3 found in Kenya.

In total, the count of active fintech startups in Africa has surged by 125.2% from 2017 to 2023.

With its rapid adoption, vast consumer demand, and limitless application possibilities in an untapped market, Africa, particularly South Africa, could be on the brink of becoming a sought-after global crypto valley.

This is in stark contrast to mature economies that are burdened with legacy systems. The key factor here is the competitive talent pool. Given the right nurturing, we believe it has the potential to create a standout blockchain ecosystem.

AI dominates the future

Looking ahead to 2024, a wider adoption of artificial intelligence (AI) is anticipated. Many startups at the 2023 summit were either pivoting to AI or building their solutions on top of AI. It’s believed that we have yet to fully explore all the ways AI can be used to improve lives in Africa.

Despite a dip in venture capital funding in Africa in 2022, optimism about the future prevails. A return to 50-75% year-over-year growth in startup investment in Africa by the end of 2024 is predicted. The cyclical nature of the market, with technology trends ebbing and flowing as they mature, is acknowledged.

Out of the businesses that came to SAIS 2023 with funding ambitions, 50% were at seed stage and 28% ready for venture capital. Nearly a quarter of those startups asking for more than a million dollars to scale to the next phase.

Startups can save the continent

Finally, confidence is high that the startup community can rise to the challenge of saving the continent with much needed job and economic opportunities. SA Innovation Summit 2023 brought together investors representing around $1,5 billion in assets under management, demonstrating the immense potential and promise of Africa’s entrepreneurial landscape.

In meeting rooms and hallways hosted a pipeline of over 80 startups with a collective deal flow of $21.6 million. This leadership and vision underscore the importance of fostering an entrepreneurial mindset to secure a prosperous future for Africa.

TotalEnergies head Pouyanne pledges $6bln for Nigeria energy

Bizcommunity.com

A general view of a logo at the TotalEnergies electric vehicle fuelling station in the La Defense business district in Paris, France, July 28, 2021. Benoit Tessier, Reuters

TotalEnergies reaffirmed its commitment to business interests in Nigeria, the French company said, adding that its head Patrick Pouyanne had met Nigeria President Bola Tinubu in Abuja on Monday.
TotalEnergies said it had signed a co-operation agreement with Nigeria’s state oil firm NNPC Ltd to carry out methane detection and measurement campaigns using its advanced drone-based AUSEA technology on oil and gas facilities in Nigeria.

TotalEnergies pledged to “invest $6 billion in the coming years,” with focus on offshore oil projects and gas production across all terrain, Tinubu’s office said in a statement, citing Pouyanne.

Tinubu’s meeting with Pouyanne follows similar talks with oil majors Shell and Exxon Mobil as part of moves to attract capital to Africa’s top energy producer.

Oil output from Nigeria, Africa’s biggest economy, has been in decline for years, hobbled by large-scale theft and sabotage. It has picked up in recent months, helped by offshore production that is less prone to attacks.

Tinubu pledged to remove “anti-investment impediments in the oil and gas industry” and provide incentives to producers to help boost gas output.