Newscast - Africa

South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) expanded in July, although at a slower rate compared to the previous month.

The index, which gauges manufacturing activity in Africa’s most industrialised economy, fell to 51.2 points in July from 53.9 points in June, remaining above the 50-point mark that separates expansion from contraction.

Absa in a statement on Monday said the business activity sub-index ticked down slightly to 62.9 from 64.6 in June.

Absa said the fact that more respondents signaled a further increase in output compared to those seeing further growth in demand, could perhaps be explained by some firms producing more in an attempt to catch up on production lost during earlier stricter lockdown levels.

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South Africa’s rand fell to its weakest in more than three weeks on Monday, as fears about the economic fallout from rising COVID-19 cases dented investors’ appetite for riskier assets.

At 0625 GMT, the rand was 0.47% weaker at 17.1400 per dollar, its weakest since July 8.

Signs of a resurgence in global infections in recent days have tamed global demand for assets perceived as risky, putting pressure on the rand, which was already vulnerable because of the frailty of South Africa’s economy.

In South Africa, confirmed cases of COVID-19 crossed half a million on Saturday.

Bianca Botes, executive director at Peregrine Treasury Solutions said Markets continue to dwell on uncertainty regarding trade tensions, U.S. elections and recovery, as well as rising virus numbers.

Government bonds weakened, and the yield on the benchmark bond due in 2030 rose 9 basis points to 9.335%.

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One of Africa’s biggest grocery retailer, Shoprite, has indicated plan to exit the Nigerian market 15 years after it entered the country.

The company disclosed this in a statement titled: “Operational and Voluntary Trading Update (52 Weeks Ended June 28, 2020), seen by THISDAY on Monday.

The company said following approaches from various potential investors and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited.

The company disclosed that its international supermarkets (excluding Nigeria) contributed 11.6 per cent to the group’s sales and reported 1.4 per cent decline in sales from 2018. South African operations contributed 78 per cent of overall sales and saw 8.7 per cent rise for the year.

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The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said Africa, particularly Nigeria, has huge gas resources which can be harnessed and leveraged for economic growth opportunities.

Mele, stated this at the Seplat Energy Summit 2020 with the theme “Business Sustainability and Strategic Leadership in Africa.’

The summit featured discussions on providing valuable insights on the challenging cases on the role of energy systems to build a sustainable African economy.

Kyari said they must not lose sight of the fact that the world is transiting transition to renewable. Gas business is the future.

President of Nigerian Gas Association, Audrey Joe-Ezigbo, said they need to leverage on Africa over 527 TCF proven natural gas reserves and use that side by sides complementary to building up our renewables profile as well which Nigeria should be championing.”

The new Chief Executive Officer, Seplat, Roger Brown, said Africa as a continent need to build that base-load for which it can build from and drive its gas agenda which Nigeria can lead through renewable energy.

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The Chamber of Commerce and Industry has described the dual role of the Nigerian Postal Service as a regulator and operator of the courier business as unfair, inequitable, and repressive.

The chamber, through its Director General, Dr Muda Yusuf, said the power vested on NIPOST to regulate its competitors was not consistent with the best practice principles of business regulations globally.

Yusuf in a statement issued on Sunday entitled ‘Comments on the 2020 NIPOST regulatory provisions for courier industry said the dual role negated the ease of doing business policy of the Federal Government.

He called on the Federal Government and the National Assembly to urgently remedy the situation, saying it was inconsistent with the extant competition law of Nigeria.

The LCCI boss highlighted the challenges facing courier companies in the country and commended the Minister of Communications and Digital Economy, Dr Isa Pantami, for promptly reversing the new licence and renewal fee introduced by the postal service.

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The Nigerian Institution of Estate Surveyors and Valuers has expressed disappointment over the imposition of stamp duties ranging from 0.78 per cent to six per cent of the value of rents and leases by the Federal Government.

The President, NIESV, Emmanuel Wike, gave the stand of the institute at a press briefing held in Lagos on Friday.

He expressed disappointment with the Federal Inland Revenue Service’s decision to impose extra tax burden on Nigerians despite the catastrophic consequences of COVID-19 on the economy.

He noted the 1.5 per cent ad valorem charges on Deeds, Power of Attorney and Memorandum of Understanding documents would stifle investments in housing and real estate and called for a flat rate stamp duty charge at a maximum rate of N1,000.

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The National Association of Aircraft Pilots and Engineers has directed all its members engaged with Bristow Helicopters to embark on a strike action scheduled for August 3, 2020.

This development is coming after all labour matters and negotiations between both parties broke down, despite a preceding three-day warning strike.

In a letter signed by Deputy National Secretary, Umoh Ofonime, with dated July 29, 2020, NAAPE directed its members working with Bristow to proceed on strike over issues not resolved with management.

The union accused Bristow of insistence on benchmarking salaries of national pilots and engineers to an obsolete rate of N345/$1 coupled with their recent insistence on their proposal to implement N355/$1- a rate which is not obtainable on any legal foreign exchange window in the world while still paying expatriates their full remuneration in USD.

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The federal government has been tasked to ensure transparency and fiscal equity in its drive to utilise public finance.

The charge was given by the Civil Society Legislative Advocacy Centre (CISLAC) during a recent stakeholders’ dialogue held in Lagos.

The Executive Director, CISLAC, Auwal Musa, said Nigeria’s fiscal regime has been in a near mess with the different news on financial misappropriation on a daily basis, adding that ministries, department, agencies are having field day with issues of financial malpractices.

He said the call was necessary because tax inequalities and massive leakages in the public procurement process and budget implementation creates loophole for misappropriation of public funds.

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Investigation has shown that filling station owners are currently in panic buying mood, as many of them are stockpiling products ahead of the announcement of a new pump price for petrol in August.

It was also gathered that the price of the commodity might increase to about N150/litre as the committee saddled with the task of fixing petrol price had been meeting and would make the new price public soon.

Marketers and officials of the Petroleum Products Pricing Regulatory Agency told newsmen in Abuja on Sunday that the rise in crude oil price in the international market could lead to an increase in petrol price.

They noted that since March this year, the cost of Premium Motor Spirit, popularly called petrol, had always been adjusted based on the global prices of crude oil.

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Deposit Money Banks on August 1 commenced the implementation of the Central Bank of Nigeria’s Global Standing Instruction which allows them to recover outstanding debts of debtors from other banks.

Experts said the implementation would help to differentiate real wealthy businessmen from debtor businessmen.

A former President, Trade Union Congress, Peter Esele, said the guideline was long overdue but added that it was better late than never.

He said the financial system has been abused and it is baffling that one man would be owing six banks in the same country, it can’t happen anywhere else.

He added that what the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men.

He said the CBN and the banks should start giving credit score.

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