Africa Business News

The Democratic Republic of Congo is expected to contract by negative 1.7% in 2020. This is according to data released by the country's central bank on Monday. The latest report is an improvement on an earlier forecast of a -2.4% contraction due to higher mining receipts.
The apex bank's statement says the mining sector has performed better than anticipated because of the success of confinement measures introduced to combat the coronavirus. This is paired with a rise in the global price of copper, which is one of Congo’s key exports.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

South African retailer, TFG, says it has concluded an agreement to buy select assets of budget clothes retailer Jet from the administrators of rival Edcon and expects to meet all conditions by the end of September.
TFG, known as The Foschini Group, said in July it will buy 371 stores and some assets of Jet for 480 million rand. The purchase is to enable TFG expand into the budget clothes market, a segment in which it is not a major player.
TFG says it has now reached an agreement for the assets in South Africa, where most of the stores it is buying are located. The retailer says similar agreements for stores in Botswana, Namibia, Lesotho and the kingdom of eSwatini are expected to be finalised shortly.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

The South African rand was slightly firmer against the dollar early on Tuesday, as the U.S. currency extended its fall to new lows on global markets.
At 0642 GMT, the rand traded at almost 0.2% stronger than its previous close. With no major domestic data releases due this week, the rand is expected to take its cue from global factors.
The rand had a torrid start to 2020, slumping over 20% against the dollar over the first quarter in the leadup to Moody’s downgrading the country’s sovereign credit rating to “junk” status. The rand has swung back and forth since and is still down almost 20% against the U.S. currency year to date.
Government bonds were flat, with the yield on the 2030 bond at 9.28%.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

The Nigerian body responsible for regulating the formation of companies says it generated 36 billion naira between 2017 and 2019. The Registrar-General of the Nigerian Corporate Affairs Commission, Garba Abubakar, stated this on Monday, while denying reports that the Commission realised 56 billion naira in two years.
Garba said the financial statement for 2018 showed there was nothing to pay as there were expectations from service-oriented agencies. He also said the commission needed money, infrastructure and staff to work.
Abubakar noted that the Commission had done reconciliation with the office of the Accountant-General of the Federation for 2014-2017 and that at the end of it, 485 million naira was accessed as outstanding from the Commission.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

An economic outlook released by Nigeria's finance ministry has shown the country expects to spend a record 12.65 trillion naira in 2021 despite severe revenue constraints. The document also said spending would focus on completing as many ongoing projects as possible, and that no new works would be allowed unless there were adequate resources to complete ongoing projects.
The spending by Africa’s largest economy, which is still reeling from low oil prices and the new coronavirus pandemic, is a 17.2% jump from the record 10.8 trillion naira budgeted this year. The projected debt servicing payments would consume 3.1 trillion naira of the spending, or just under 25%.
Additionally, revenues in the year are expected to reach 7.5 trillion naira in 2021, implying a higher deficit.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

Reports say the World Bank is unlikely to approve a much-needed 1.5-billion-dollars for Nigeria in August as planned due to concerns over desired reforms. This is according to three sources familiar with the talks who spoke to Reuters.
The World Bank, which has said Nigeria could be heading toward its greatest fiscal crisis in 40 years, had aimed to bring the loan to its board for approval this month. However, sources say negotiations over what Nigeria will do to secure it were incomplete. Another banking source said the loan could now not be approved until October.
A delay in financing from multilateral lenders could leave Nigeria being unable to fully finance a record 10.8-trillion-naira budget.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

Members of Nigeria’s major labour unions in the oil and gas sector have suspended the strike they embarked upon in protest against the non-payment of their salaries.
Officials of the Petroleum and Natural Gas Senior Staff Association of Nigeria and the National Union of Petroleum and Natural Gas workers called off the strike after various agreements were reached with the Federal Government.
PENGASSAN's National Public Relations Officer, said the strike was called off at 1.04 am on Tuesday.
At a meeting, the unions and the Nigerian government resolved that the three months salary arrears owed to oil workers would be paid through the Government Integrated Financial Management Information System platform.
Parties at the meeting also resolved that a new date would be fixed for all stakeholders to meet and discuss concerns surrounding the enrollment of oil workers on the IPPIS platform.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

BIGO Technology, a smaller rival of embattled Chinese appmaker ByteDance, is shifting servers from Hong Kong to Singapore, out of the reach of a new national security law at a time when it is seeking to emphasise independence from its Chinese parent.
The move, which follows India’s ban on the firm’s apps during this year’s flare-up in hostilities between New Delhi and Beijing, comes as the United States toughens scrutiny of Chinese-owned firms in one of its most promising markets.
Bigo, who owns Likee, and live streaming app, Bigo Live, compete with TikTok, has not been named by U.S. authorities, but a senior official of the firm told Reuters it hoped “not to be caught in the crossfire.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support

U.S. President Donald Trump on Saturday said he could exert pressure on more Chinese companies such as technology giant Alibaba after he moved to ban TikTok.
Trump when asked at a news conference whether there were other particular China-owned companies he was considering a ban on, such as Alibaba replied that they are looking at other things.
Trump has been piling pressure on Chinese-owned companies, such as by vowing to ban short-video app TikTok from the United States. The United States ordered its Chinese owner ByteDance on Friday to divest the U.S. operations of TikTok within 90 days, the latest effort to ramp up pressure over concerns about the safety of the personal data it handles.

---

Support this podcast: https://anchor.fm/newscast-africa/support

Hong Kong Commerce Secretary Edward Yau told CNBC on Monday that rising U.S.-China tensions are unhelpful and that he will take up with the U.S. government the matter of Hong Kong goods for export to the United States to be labelled made in China.
According to a U.S. government notice posted last week, Goods made in Hong Kong for export to the United States will need to be labelled as made in China after Sept. 25.
Yau referred to World Trade Organization rules which state that Hong Kong is entitled to use its own labeling for its exports.
He also said that Hong Kong’s growth slowed to an “unprecedented” 9% decline in the second quarter.

---

This episode is sponsored by
· Afrolit Podcast: Hosted by Ekua PM, Afrolit shares the stories of multi-faceted Africans one episode at a time. https://open.spotify.com/show/2nJxiiYRyfMQlDEXXpzlZS?si=mmgODX3NQ-yfQvR0JRH-WA

Support this podcast: https://anchor.fm/newscast-africa/support