Breaking News today –  Friday 18 October 2024

Business & Tech News

Gaza War Impacts Egyptian Economy: According to a United Nations report, it estimates that the total economic impact of the Gaza war on the Egyptian economy, will reach between $5.6 billion and $19.8 billion over the current and next fiscal years (2024-2025). This represents a loss of between 1.6% and 5.2% of average Egyptian GDP, that will depend on the extent of the conflict’s escalation or de-escalation over the period. A major impact of the conflict for Egypt has been significant revenue losses due to the suspension of Israeli gas re-exportation. Traffic through the Suez Canal has reduced greatly and the tourism sector is also likely to be impacted severely, according to the report. Revenues are expected to decrease by $3.7 billion to $13.7 billion over the current and next fiscal years.

Pargo Expansion Plans for Africa: The South African click-and-collect company Pargo, is looking at the possibility of expansion into the rest of Africa. This was announced by Pargo’s CEO, Lars Veul said in an interview. The company is betting on the e-commerce growth potential across the African continent, where forecasts show that it will exceed half a billion e-commerce users by 2025, having shown a steady 17% compound annual growth rate of online consumers, according to the International Trade Administration, a U.S. government agency. “We’re already operational in Egypt as a second country, but we are quite seriously looking at, in the future, building a network across Africa,” said Veul.

Central Bank Chaos in Tunisia:  In what appears to be ever increasing political interference, Tunisia’s parliament will be voting on a new bill today that proposes to strip away the Central Bank’s independence. The bill will enforce restrictions on its current exclusive power to adjust interest rates or foreign exchange policy, and will in future only be able to take such action in consultation with the government, but it will still be allowed to finance the treasury. This action is the latest move that will completely undermine the central bank’s independence after continuous criticism by President Kais Saied, who has said that the bank should not be a state within a state. Tunisia has been unable to secure international funding since Saied seized nearly all power in 2021, ruling by decree, in a move the opposition has called a coup. Twenty-seven lawmakers warned that Tunisia would inevitably go bankrupt if the bank law was not changed. They said that the current law, adopted in 2016, which does not allow the central bank to make loans to the public treasury or direct bond purchases, has led to huge losses for the state estimated at $36.6 Billion.

Market News

Markets: Indices in the US hardly shifted yesterday, with the NASDAQ up by 0,08%, the S&P 500 -0,02% down and the Dow Jones closing 0,37% up. The Nikkei closed 0,18% up today at 38981, while the Hang Seng is currently -1,02% down at 20079.

Currencies: The US Dollar is currently trading at 1.085 against the Euro, at 1,306 against the Pound, and at 149.96 against the Yen. The rand has strengthened slightly today, and is currently trading at R17.59 to the US dollar.

Commodities:

• Gold prices breached the $2700 mark and is currently trading at $2,705
• Platinum prices have maintained above the $1000 mark and is at $1004 currently, with Palladium also gaining momentum and trading at $1060 currently
• Brent crude is currently trading upwards at $74.76 with WTI trading slightly up at $70.48 currently.
• Cocoa prices have clawed back ground and is currently trading at 5856 pounds,

(All prices quoted at 08H45 CAT)

Other News in Africa Today

Somali Suicide Bomber Kills Seven: At least seven people were killed and six others were injured at a Café located near the police training academy in the Somalian capital Mogadishu, when a Suicide bomber set off an unknown explosive on Thursday according to police reports. The report indicated that victims of the suicide terror attack, included both officers and civilians who were having tea outside the General Kaahiye Police Academy on Thursday. An eye-witness stated that people there had seen a person acting suspicious and were questioning him about the object he was carrying. At this point the bomber blew himself up. The explosion impacted the restaurant facing the camp, where Somali soldiers and police officers are stationed. Terror group Al-Shabaab claimed responsibility for the suicide attack.

Kenyan Deputy President Rigathi Gachagua Fired: Kenyan Deputy President Rigathi Gachagua has been fired from his office, after a senate vote in the Kenyan Parliament yesterday. This despite his nonattendance and not testifying due to him being admitted to hospital. In a dramatic turn of fortune in the Kenya political arena, Gachagua who had been a close ally of President Ruto, had been due to appear in the Senate after lunch to defend himself, a day after he had pleaded not guilty to 11 charges. However, Gachagua, did not show up and his lawyer requested a postponement saying his client was suffering from chest pains and was being treated by doctors at The Karen Hospital. Parliamentarian Senators however, chose to continue the trial without him, prompting the defence team to leave the chamber.