What you need to know today
ABSA PMI Improves for Second Consecutive Month
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) showed signs of improvement in June 2024, rising to 45.7 from 43.8 in May. Despite the increase, the index remains below the critical 50-point threshold. Economist Sello Sekele from Absa Group discussed the sector’s challenges, including declining business activity and subdued demand. Positively, cost pressures have eased thanks to the strong rand and decreasing fuel prices.
Watch the full interview with Sello Sekele
State Intel Report: Evolving Investment Strategies of African Institutional Investors
Dolapo Omidire, Research Director at State Intel, shared insights from a report highlighting a shift among African institutional investors towards longer-term holding of income-producing assets. The report also noted a surge in ESG-linked financing activities and the significant interest in the hospitality sector in regions like French West Africa.
Watch the full discussion with Dolapo Omidire
Rockefeller Foundation’s Mission 300 Initiative
Rajiv Shah, President of the Rockefeller Foundation, discussed the Mission 300 initiative, aimed at providing electricity to 300 million Africans, with a particular focus on Nigeria. The initiative plans to replace diesel generators with renewable energy sources and expand mini-grid systems to boost energy access in remote areas.
IMF Approves $67 Million for Benin
The IMF has approved $67 million in funding for Benin, signaling a positive outlook for the country’s economic stability and growth. Constant Lonkeng Ngouana, IMF Mission Chief to Benin, emphasized the importance of domestic revenue mobilization and subsidy reforms to achieve sustainable growth.
Watch the discussion with Constant Lonkeng Ngouana
South Africa’s Energy Transition: The Role of Natural Gas
Dele Kuti of Standard Bank discussed South Africa’s progress towards stabilizing its power grid and highlighted the role of natural gas in the country’s just energy transition. He emphasized the need for continued investment in renewable energy and efficient energy management to meet growing demand while reducing carbon emissions.
Watch the full interview with Dele Kuti
President Ghazouani’s Re-election in Mauritania
Robert Besseling of Pangea-Risk analyzed the re-election of Mauritania’s President Ghazouani, noting the likely continuation of policy stability and investment attraction. Key areas of focus include commodities market development and boosting foreign direct investment to address socio-economic challenges.
Watch the analysis with Robert Besseling
African Tech VC Funding: Trends and Outlook
Despite a 56% drop in funding in the first half of 2024, experts remain optimistic about African tech startups. Oswald Guobadia and Raj Kulsaingham discussed the need for tailored funding models, diversification in sectors like climate tech, and the role of local investors in supporting innovation.
Watch the insights from Oswald Guobadia and Raj Kulsaingham
Ramaphosa Names Government of National Unity Cabinet
South Africa’s President Ramaphosa has announced a new, larger cabinet as part of the Government of National Unity. Louw Nel of Oxford Economics examined the strategic decisions behind key appointments and their potential impact on policy stability and future electoral outcomes.
Watch the briefing with Louw Nel
Rainbow Chicken’s JSE Main Board Listing
Rainbow Chicken’s stock has surged nearly 30% following its listing on the JSE main board. Managing Director Marthinus Stander discussed the company’s strategies for maintaining profitability and competitiveness amidst sector challenges.
Watch Marthinus Stander’s insights
South Africa’s Business Reaction to New GNU Cabinet
Business leaders Mtho Xulu (SACCI) and Cas Coovadia (BUSA) shared their perspectives on South Africa’s new GNU cabinet. They emphasized the need for unity, effective governance, and collaboration between the private sector and the government to drive economic growth and address socio-economic challenges.
Watch the full discussion with Mtho Xulu and Cas Coovadia
India Expands Search for Critical Minerals
India is actively engaging in discussions with countries in Africa and Latin America to secure critical mineral blocks on a government-to-government basis. Veena Kumari Dermal, joint secretary of the Ministry of Mines, highlighted this at an industry event. These talks are also extending to Australia with the aim of securing lithium blocks. Indian state-owned firm Khanij Bidesh India Ltd (KABIL) has already set up operations in Argentina and signed a $24 million lithium exploration pact for five blocks in January.
South African Markets Update
On Monday, South African assets gave up some of their initial gains following the formation of a new cabinet by President Cyril Ramaphosa. Specifically, the Top-40 index on the Johannesburg Stock Exchange closed around 0.2% weaker, while the country’s benchmark 2030 government bond yield fell by 3 basis points to 9.955%. The government is also planning to hold its weekly auction of long-term bonds.
African Markets’ Key Developments
Multiple factors are currently affecting African markets. In Kenya, activists have scheduled another week of anti-government protests, compelling President William Ruto to reconsider his unpopular tax hikes. The Kenyan shilling remains steady but under pressure due to increased demand for hard currency by importers and manufacturers. In Somalia and Ethiopia, Turkey is mediating discussions over a port deal signed with the Somaliland region. Meanwhile, the International Monetary Fund has revised its 2024 growth forecast for Ghana upwards due to improved economic stability. In the Democratic Republic of Congo, the state miner Gecamines has declined to approve the sale of Chemaf SA’s cobalt assets to Norin Mining. Lastly, Nigeria’s Dangote oil refinery is increasing gasoil exports, impacting European refiners.
