Breaking News Today – Wednesday 28 May 2025

Business & Tech News

Outlook For African Growth Diminishes:

The African Development Bank (AfDB) has downgraded its projections for Africa’s economic growth over the next two years, with what it described as “unprecedented global circumstances” and “seismic shifts in the trade policies of major economies.” Significant aid cuts will also hit low-income countries on the continent, Tuesday’s African Economic Outlook report warned. AfDB is now projecting growth of 3.9% for 2025 and 4% for 2026 – a downgrade of 0.2 and 0.4 points, respectively. Despite ongoing uncertainty, 21 African countries are still expected to see economic growth of more than 5% this year, a resilience the bank ascribes to effective domestic reforms, relative diversification and improved macroeconomic management over the last decade.

Sales Force Buys Informatica:

Salesforce, the cloud-based customer relationship software company, bought cloud data management firm Informatica in an $8 billion equity deal. The move aligns with Salesforce’s trajectory in building AI and data infrastructure capabilities. The announcement, made Yesterday, was not entirely unexpected as rumours of the acquisition started over a year ago. Under the terms of the deal, Salesforce will pay $25 in cash per share. A 30% premium on the closing price on 22 May, for Informatica’s Class A and Class B-1 common stock, adjusting for its prior investment in the company.

Nvidia to Power Swedish Supercomputer

Sweden’s largest enterprise AI computer is set to be powered by Nvidia processor chips, with Nvidia also announcing that it will establish its first AI technology centre in Sweden. A business consortium which includes the likes of AstraZeneca, Ericsson, Saab, and SEB is driving the project. The AI data centre and factory planned will offer secure AI compute access to all the partner groups.

Chinese EV Giant BYD Slashes Prices:

The massive electric vehicle market in China, and globally has just seen further disruptions with BYD cutting its prices across their product range. They have reduced the price of their entry-level Seagull hatchback model by 20% to a price of $7780. The impact of the Chinese EV manufacturers, and the introduction of radically reduced pricing models, is being felt globally, with Tesla’s sales in Europe and the U.K. showing major declines, according to data released yesterday by the European Automobile Manufacturers Association. In April, Tesla sold 7,261 vehicles in the European Union, European Free Trade Association, and the U.K., indicating a 49% fall in year-on-year sales. EV’s accounted for 15% of sales in the EU for April, up from 12% a year ago, while overall sales were down 1.2%

Business, Tech & Market News Shorts:

• AI replacing Jobs is certain after a recent survey from the World Economic Forum found that 40% of employers intend to cut staff where AI can automate tasks. Researchers at SignalFire, a data-driven VC firm that tracks job movements of over 600 million employees and 80 million companies on LinkedIn, released a report indicating that the Tech industry may be seeing the first signs of AI’s impact on hiring.
• Starlink telecoms will, according to the South African Communications Minister. Solly Malatsi,  not be given special dispensation by South Africa to bypass the country’s Black ownership requirements, as communicated by the minister yesterday. South Africa requires foreign companies owning communications licences to sell 30% of their equity in local subsidiaries to historically disadvantaged groups.
• Brazilian prosecutors are suing Chinese electric vehicle (EV) giant BYD and two of its contractors, saying they were responsible for human trafficking and conditions “analogous to slavery” at a factory construction site in the country.

Markets by Numbers

Currencies:

Currency markets indicate the US Dollar is currently trading stronger against the Euro at 1.13065 and against the Pound at 1.34875. The Yen is currently at 144.41 to the dollar, with the rand currently trading lower at R18.00 to the dollar.

Commodities:

• Gold futures prices have dropped further this morning and are currently at $3307 per ounce.
• Copper prices are trending lower this morning and are currently at $4.7013.
• Silver futures prices are currently trading lower, and at $33.256
• Platinum futures are trading upwards this morning, and are currently trading at $1088.10, while Palladium prices are currently at $983.50
• Brent crude oil prices are currently at $64.47, with WTI trading at $61.23.
• Cocoa futures are currently at $9801 per ton.
• Coffee futures prices are trending slightly higher today and are currently at $360.33.

Crypto Currencies:

• Bitcoin prices are currently trading at $108960
• Ether prices have dropped just over -1% this morning, and are currently at $2634
• $Trumpcoin is trading marginally lower today, and is currently trading at $12.80

(All prices quoted at approximately 09H10 – Central African Time)

Other Breaking News in Africa Today

SA Broadband Network Insolvent:

The South African state-owned fibre network operator Broadband Infraco is technically insolvent and was declared as such since the start of the 2024/25 financial year. Things, however, have not improved, and it is struggling to meet its universal access obligation (UAO) mandated by the state. Broadband Infraco provides long-distance national and international connectivity to private sector partners and is mandated to provide universal Internet access to South Africa as part of the SA Connect programme. In February, it announced that it had deployed 6,312 community Wi-Fi hotspots nationwide in partnership with 76 Internet service providers. According to its most recent financial reporting from the 2023/24 financial year, its total liabilities stood at R1.36 billion, while its assets totalled R1.33 billion.