Africa Business News

Qantas has cancelled all international flights until late October except for those to New Zealand.
The news comes as the Australian government said its border would remain closed into next year to slow the spread of the coronavirus.
The airline and subsidiary Jetstar are now boosting domestic flights as travel restrictions within Australia ease.
The nation's tourism minister has also encouraged Australians to take their holidays within the country this year.
The airline in a statement sent to the BBC said with Australia’s borders set to remain closed for some time, they have cancelled most international flights until late October..
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Tunisia’s investment minister on Wednesday said the country’s economy could shrink by up to 7% this year because of the effects of the COVID-19 pandemic.
The government ended all restrictions on movement and businesses this month and will open its sea, land and air borders on June 27. However, the pandemic is hammering the tourism sector, which contributes nearly 10% of gross domestic product and is a key source of foreign currency.
Investment minister Slim Azzabi said according a government study in partnership with the United Nations, the number of unemployed people in Tunisia will increase by 275,000.
This would raise the unemployment rate to 21.1% in 2020, up from about 15% at the start of the year.
The study expects the economy to shrink by 4.4%, but Azzabi said the figure could rise as high as 6% or 7%.
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South African retailer TFG on Thursday said it plans to raise 3.95 billion rand ($229.66 million) through a right offer to lower debt and protect its balance sheet, as profits fell by 1.1% in the year to March 31.
TFG, which also operates in Australia and Britain, said the proposed rights offer is fully underwritten by a syndicate of banks comprising three of its largest lenders and its major shareholders have shown support.
TFG group CEO Anthony Thunström said at the firm’s results presentation that the intention really is to put them in a position to insulate the balance sheet against any shocks.
He also announced the company would axe its dividend to shareholders this year. As a result of an uncertain economic outlook, several South African companies have either slashed, postponed or axed dividends.
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South Africa’s Sasol Ltd on Thursday said it palns to cut jobs and end West African oil operations as part of a business revamp, adding it had also agreed a deal with lenders to relax borrowing rules.
The company, the world’s top producer of motor fuel from coal, said the review had identified chemicals and energy as the focus areas for its future business.
it said in a statement that the revision of our strategy aims to have a greater focus on enhanced cash generation, value realisation for shareholders and business sustainability.
Sasol said the revamp would affect its workforce, but did not say how many jobs might be lost. The company said it was seeking consultations with trade unions in South Africa and aimed to do the same in other countries.
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The banking association’s managing director Bongiwe Kunene said on a conference call on Thursday that Non-performing loans could hit 10% in South Africa this year due to COVID-19 related economic troubles.
She added that this may deplete banks’ capital buffers.
According to the CEIC global economic data service, South Africa’s non-performing loans ratio stood at 4.3 % last month.
South Africa was already in recession before the COVID-19 pandemic struck, and the fallout of mainstays like mining and tourism have ravaged an already fragile economy. The central bank expects the economy to shrink 7% this year.
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CEO Natascha Viljoen on Thursday said Anglo American Platinum expects to bring its mining production back up to 75% to 80% of capacity by the end of this year as South African mines recover from a forced COVID-19 shutdown.
she told reporters that their ramp-up is targeted to get to 75 or 80 percent towards the end of the year.
She said Production lost during South Africa’s early lockdown, when most mines in the country shut down, would probably not be recovered.
Viljoen estimated the platinum miner had spent 25 million rand ($1.45 million) on sanitation and personal protective equipment at its mines so far.
Viljoen said she estimates they will have an infection rate of between 7% and 10% with COVID-19 screening procedures in place at the mines.
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The Chamber of Mines on Thursday said Mining companies in Zambia, Africa’s No.2 copper producer, have suffered a 30% drop in revenue over the three months to April due to the COVID-19 pandemic and the fallout could last for at least 12 months.
The mining industry association said severe global restrictions on movement have hit mining supply chains and hindered the export and sale of copper whie hurting company revenues and government coffers.
The chamber said the fall in mining revenues is mirrored exactly in the fall in mineral royalty payments, as royalties are levied on each tonne of copper that is sold.
Royalty payments are estimated to have come in at $60 million to $65 million over the three months from February to April, around two-thirds of the $90 million that was expected.
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The Ghana Chamber of Mines says it is adopting innovative approaches to sustain gold production to rake in more revenue from export.
Gold prices saw a sharp rise in prices during the early stages of the rapid spread of the COVID-19 pandemic due to low supply, as economic activities slowed down.
As at June 4, 2020, gold prices hit 1,715 dollars an ounce which was due to the fact that investment in gold is seen as a safe haven during uncertainties.
The Chief Executive Officer of the Chamber of Mines, Sulemanu Konney, while speaking to Citi Business News on how the mining sector performed in 2019, said mining companies are adopting innovative means to continue gold production to increase revenue for the state.
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The Governor of Lagos State, Babajide Sanwo-Olu, said that the state is introducing measures to absorb the shocking effects of the COVID-19 pandemic on Micro, Small and Medium Enterprises in the state.
Sanwo-Olu said these measures, which include an additional N5bn palliative, will ensure business sustainability and stimulate economic growth.
The governor made this known during in a private sector interactive webinar organised by the Lagos Chamber of Commerce and Industry on Wednesday.
Sanwo-Olu said the funds would enable MSMEs to stay afloat and reduce job losses.
He added that within the next one month, an internship programme, which would accommodate not more than 10,000 persons to acquire additional skills to keep them employed and engaged, would be embarked upon.
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Nigeria and other members of the Organisation of Petroleum Exporting Countries have said the global oil market will recover in the second half of this year.
OPEC on Wednesday said that world oil demand was anticipated to decline by 6.4 million barrels per day in the second half, compared with a decline of 11.9 million bpd in the first half, with a gradual recovery projected until the end of 2020.
The group said in its June monthly oil market report  that the dust is starting to settle after a highly turbulent first Quarter due to the enormous impact of COVID-19 on the global economy and oil market fundamentals.
It said available first quarter of 2020 and Q12020 economic data showed that the major declines in output were mostly due to the severe lockdown measures across the globe.
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