Africa Business News

Brent crude futures traded lower at $44.6 per barrel on Friday, as uncertainty over whether US lawmakers would strike an agreement on a new coronavirus relief package weighed on sentiment, while investor focus turns to an OPEC meeting next week, although Russian Energy Minister Alexander Novak said he does not expect quick decisions on output cuts. Brent crude futures headed for a gain of about 0.5% this week as oversupply concerns eased on the back of US data showing crude oil, gasoline and distillate inventories all fell last week amid higher production and fuel demand. Meanwhile, the gains were curbed after the IEA cut its 2020 oil demand forecast for the first time in several months, following a similar move from the OPEC.

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Online retail giant Amazon has launched an internet pharmacy in India, marking its entry into the country's online medicine market.
Amazon Pharmacy will make its debut in Bangalore and it may be trialed in other Indian cities.
The move comes as the online drugs business has been given a major boost during the coronavirus pandemic.
This year US technology giants have invested billions of dollars in the Indian economy.
The Amazon Pharmacy service offers prescription, over-the-counter and traditional Ayurveda medication as well as basic health devices.

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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

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President Donald Trump on Thursday said that any deal to sell Chinese-owned social media app TikTok to an American company must substantially benefit the United States and provide total security.
Trump made the remarks after issuing an executive order banning transactions with TikTok’s Chinese parent Bytedance by mid-September after appearing to bless a sale of the popular video sharing app to Microsoft.

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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

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Alphabet Inc’s, Google on Friday said it would no longer provide data in response to requests from Hong Kong authorities following the enactment of a new national security law imposed by China.
It added that it had not produced any data since the sweeping new law took force in June and would not directly respond to such requests henceforth.
Google in an emailed statement said as always, authorities outside the U.S. may seek data needed for criminal investigations through diplomatic procedures.
It added that Google reviewed all requests for user data and pushed back on overly broad ones to protect the privacy of users.
According to the Washington posts, Google also notified Hong Kong police on Thursday that it would direct officials to pursue any requests for data through a Mutual Legal Assistance Treaty with the United States, which involves routing through the U.S. Justice Department.

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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

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South Africa’s rand edged higher on Friday in subdued trade, with the currency’s rally this week slowed by the resumption of nationwide power cuts and more evidence that the domestic economy remains under pressure.
At 0630 GMT the rand was 0.2% firmer at 17.3825 per dollar, not far off a close of 17.4000 on Thursday.
On Thursday, state power utility Eskom implemented nationwide rolling electricity blackouts, cutting up to 2,000 MW from the national grid. The company said the power cuts, or load shedding, would continue on Friday.

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This episode is sponsored by
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South African retailer Woolworths on Friday said its profits for the 52-weeks to June 28 could plunge by as much as 70% due to the impact of the coronavirus crisis, high tax rate, and adoption of IFRS 16 accounting standards.
Woolworths said its headline earnings per share (HEPS) - the main profit measure in South Africa- would fall by between 60% and 70% compared to the 342.9 cents it reported a year earlier.
The owner of David Jones in Australia also impaired the carrying value of certain store assets, which will only negatively impact earnings per share and not HEPS.

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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

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South Africa’s Sibanye-Stillwater on Friday said it expects to swing to a profit in the first half of 2020, boosted by higher precious metals prices and a weaker rand currency, sending its shares up sharply.
Shares in Sibanye, which said it remains positive about its performance in the second half of the year, were up 11.16% at 55.30 rand by 0836 GMT.
The precious metals producer, said headline earnings per share (HEPS) for the six months to June is expected to be 350 cents compared with a loss per share of 54 cents a year earlier when it was hit by strikes.
Sibanye said the inclusion of the Marikana operations, higher metals prices and a weaker rand currency helped partially offset foreign exchange losses and the impact of COVID-19 lockdown regulations on output.

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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

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Fitch Ratings has predicted that the Central Bank of Nigeria’s (CBN) cash reserve requirement (CRR) policy will hurt Nigerian banks’ earnings.
According to the senior director for Europe, Middle East and Africa bank ratings at Fitch, Mahin Dissanayake said the Central Bank of Nigeria has been highly interventionist.
Jhe said while countries like South Africa and Kenya followed the global trend of giving banks more room to lend, Nigeria hasn’t budged, with CRR at 27.5 per cent.
The central bank also dips into the accounts when lenders fail to extend 65 per cent of their deposits as loans, a measure that was introduced to stimulate credit.
Dissanayake said that and other penalties push the effective hit on capital to between 40 per cent and 50 per cent.

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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

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The Minister of State for Petroleum Resources, Timipre Sylva, said the country needs an oil price of $70 per barrel and a production of two million barrels per day to sustain its budget.
Sylva said the production cuts by the Organisation of Petroleum Exporting Countries and its allies had helped to stabilise the oil market, adding that all members of the alliance shared the same commitment to balancing supply and demand.
He said that the market is already starting to show signs of rebalancing; it’s stabilising. They believe towards the end of this year, they will see a rebalanced market.
The OPEC+ production cuts have helped lift the price of the international oil benchmark, Brent crude, from a low of around $20 per barrel in April. It stood at $44.85 per barrel as of 6:40pm Nigeria time on Thursday.

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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

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The Managing Director of CHI Limited, Mr Deepanjan Roy, said the company is partnering with Niger State to drive the Central Bank of Nigeria’s backward integration programme.
Roy said this on Thursday in a statement entitled CHI Limited supports CBN’s backward integration programme.
He noted that the CBN rolled out a new policy to encourage backward integration for the local production of select items including dairy products to save depleting national reserves, revive local production capacity and create employment.
He said the new policy offered challenges and opportunities for major manufacturers of milk and dairy products in Nigeria.

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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

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