Africa Business News

The Nigerian National Petroleum Corporation announced a trading deficit of N9.53bn for March 2020, which stood out as the oil firm’s first operational loss since October 2018.
Findings showed that the last time the corporation posted a deficit was in October 2018, when the corporation recorded a cumulative loss of N12.66bn.
An analysis of various monthly operational reports of the corporation showed that in November and December 2018, the firm made trading surpluses of N2.06bn and N12.13bn respectively.
The oil firm’s surpluses persisted in January and February 2020 as it recorded N1.87bn and N3.95bn respectively.
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There was tension at the Nigerian National Petroleum Corporation on Wednesday, prompting the Petroleum and Natural Gas Senior Staff Association of Nigeria to threaten that it may embark on an industrial action soon.
It was gathered that the threat by the Group Executive Council of PENGASSAN at the NNPC followed plans by the oil firm’s management to carry out what it described as Internal Open Resource exercise.
The exercise would result in a situation where employees from lower levels would be moved to deputy managerial levels without passing through the mandatory qualifying exams.
PENGASSAN, in a letter addressed to the Group Managing Director, NNPC, Mele Kyari, advised the management of the oil firm to suspend the planned exercise.
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The International Monetary Fund has downgraded Nigeria’s 2020 growth projection, saying the economy will shrink by 5.4 per cent.
The IMF had in April 2020 projected that the country’s economy would contract by 3.4 per cent this year.
The IMF disclosed this in its overview of the World Economic Outlook for June, titled, A crisis like no other, an uncertain recovery, which was released on Wednesday.
It stated that Global growth is projected at –4.9 per cent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook forecast.
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Ben and Jerry's have joined a growing list of firms pulling advertising from Facebook platforms throughout July.
It's part of the Stop Hate for Profit campaign, which calls on Facebook to have stricter measures against racist and hateful content.
Ben and Jerry's Tweeted that it will pause all paid advertising on Facebook and Instagram in the US.
Earlier this week outdoor brands The North Face, Patagonia and REI joined the campaign.
Ben and Jerry's said it is standing with the campaign and all those calling for Facebook to take stronger action to stop its platforms from being used to divide our nation, suppress voters, foment and fan the flames of racism and violence, and undermine our democracy.
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South Africa’s rand moves firmer early on Wednesday ahead of a much-awaited COVID-19 budget speech by Finance Minister Tito Mboweni, with a return of risk sentiment globally overshadowing investors jitters over the local economy.
At 0530 GMT, the rand was 0.17% firmer at 17.2100 per U.S. dollar versus an overnight close of 17.2400 in New York, matching advances by other emerging currencies as upbeat data in Europe bolstered hopes for a global economic recovery.
The special budget, brought forward by the treasury in response to the coronavirus outbreak and President Cyril Ramaphosa’s 500 billion rand ($29 billion) stimulus package, is set to show ballooning deficit and debt in Africa’s most advanced economy.
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Sudan government is pinning its hopes on a conference of potential donors in Berlin this week with the country’s economy at risk of freefall, hammered by inflation exceeding 100% and plagued by shortages of bread, fuel and medicine.
The crisis has been compounded by the coronavirus pandemic, which has diverted the resources of many donors.
New financing, however, has been held up by the need to settle decades of arrears to the International Monetary Fund (IMF) and Sudan’s listing, while under Bashir’s rule, by the United States as a state sponsor of terrorism.
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Ten of Zambia’s international bondholders on Tuesday said they have formed a creditor group ahead of what is expected to be a complex restructuring of its debts.
One of the world’s largest copper producers, Zambia owes money to four main types of creditor. It has $3 billion of Eurobonds outstanding and owes $2 billion to commercial banks, $2 billion to the IMF and World Bank and a further $3 billion to China.
The new bondholder committee did not name any of its 10 members but said they were all based in the United States or Europe and in aggregate hold approximately 35% of the total amount of Zambia’s outstanding Eurodollar bonds.
World Bank data estimates it added up to 45% of Zambia’s gross domestic product (GDP) last year, while its total debt stock was the equivalent to 89% of GDP.
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Zimbabwe’s energy regulator said the fuel prices will go up by as much as 152% after the government removed a fixed exchange rate in place since March.
Zimbabwe is already going through its worst economic crisis in a decade, marked by high inflation, food and medical shortages.
The regulator on Tuesday night announced that the price of petrol will go up to 71.62 Zimbabwe dollars (U.S. $1.25) per litre, from 28.96 Zimbabwe dollars previously. The diesel price will now be 62.77 Zimbabwe dollars from 24.93 Zimbabwe dollars.
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The annual inflation rate in South Africa fell to 3% in April of 2020 from 4.1% in March and slightly below market expectations of 3.1%, thus remaining comfortably within the Reserve Bank's target band of 3-6%. It was the lowest rate since June of 2005, amid a decrease in transport prices. There was also a slowdown in costs of housing & utilities, alcoholic beverages & tobacco clothing & footwear, recreation & culture and restaurants & hotels.
Consumer prices went down 0.5%, after rising 0.3% in March, and compared with market consensus of a 0.4% drop.
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South African lender African Bank swung to a half-year loss on Wednesday after taking a 550 million-rand ($31.89 million) charge for bad debts.
Controlled by the central bank after nearly collapsing under the weight of bad loans in 2014, the lender has struggled to turn itself around.
It reported a net loss after tax of 311 million rand for the six months to March 31, compared to a profit of 69 million rand a year earlier after been hit by the impact of the coronavirus
It said in its results statement the bank continues to maintain robust capital levels and surplus liquidity
African Bank’s bid to restore itself to viability was gaining some traction before the coronavirus hit, dealing a hefty blow to South Africa’s already shrinking economy and its lenders.
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