STORY: See what’s been making business headlines in sub-Saharan Africa this week.
1. President Cyril Ramaphosa promised on Thursday (July 18) to revive South Africa’s economy by revitalizing factories and farms, building roads and seizing opportunities offered by green energy.
“We have a clear intention to turn our country into a construction site.”
Making his first policy speech to a new parliament after the ANC lost its parliamentary majority, Ramaphosa acknowledged that the economy had “barely grown” in the past 15 years.
2. Trading houses face losses of at least $1 billion in cocoa derivatives after major producer Ghana failed to deliver beans this year, six industry sources said.
Much of Ghana’s cocoa is bought months in advance by trading houses who also take short positions in the futures market to protect against losses in the long position.
The strategy is thrown out, however, if physical delivery is delayed in a rallying market, as happened in the case of Ghana – which is struggling with a disastrous harvest.
3. Nigeria’s main labor unions on Thursday (18 July) agreed to a new minimum wage of 70,000 naira a month, or $44, after talks with the government.
:: June 3, 2024
This ends months of deadlock and the threat of strikes.
4. Rio Tinto said on Tuesday (16 July) that its massive African iron ore project in Guinea, which it is developing jointly with a Chinese joint venture, has received all the necessary regulatory approvals.
The Simandou project, delayed for years by legal, political and infrastructure hurdles, is set to be the world’s largest and highest-grade new iron ore mine with production starting in late 2025.
5. And finally, Zimbabwe will keep what it promised when it launched a new currency in April, the central bank governor said on Wednesday (July 17th), ensuring it remains fully reserve-backed.
:: December 4, 2008
Zimbabwe Gold, or ZiG for short, is the sixth attempt at a local currency in 15 years after a period of hyperinflation under former leader Robert Mugabe.
Governor John Musayavanhu said “confidence can only come through discussion”, referring to the central bank’s pledge not to print money to fund government spending, which has led to previous currency collapses.