Connect with us

VenturesNow

South Africa’s Reserve Bank excepted to hike interest rate at next meeting

Published

on

In a bid to raise contraction of the sale and repurchase agreement rating as a result of inflation forecasts caused by rising costs in the second quarter of 2022, the South African Reserve Bank (SARB) is expected to lift its repo rate by 25 basis points in May and 50 basis points in Q3 at its next meeting.

In a survey conducted by renowned economists between, the country’s Central Bank has concluded that it would hike its repo rate by 25 basis points to 4.50% at its May policy meeting, almost in line with a poll carried out in March.

A majority in the survey predicted that the SARB will hike again in the third quarter by 50 basis points to 5.00% compared with only once in the third quarter to 4.75% in the March poll.

According to the survey, the SARB is then expected to pause in November at 5.00%, and then hike by 25 basis points every quarter, but pausing at 5.75% at the final policy meeting of 2023.

An economist and researcher with Gina Schoeman, in a research note, said hefty goods price rises have pushed inflation expectations above the 4.5% mid-point target and the SARB is understandably more concerned now about second-round effects.

“We forecast consecutive 25 basis point hiking with the door open for a 50 basis point move if second round effects surprise to the upside,” Schoeman said.

However, the SARB’s official aim is to keep inflation in the 3%-6% range while South Africa’s annual inflation rate rose to 5.9% in March from 5.7% in February, driven mainly by food and fuel price rises following Russia’s invasion of Ukraine.

Another economist, Mpho Molopyane, at Rand Merchant Bank, said if the reprieve were to be extended for another 10 months, this could shave 0.2 percentage point from this year’s headline consumer price inflation.

“The added benefit would be much lower second-round effects to core inflation and food prices, which could lead to a further moderation in headline CPI inflation,” said Molopyane.

VenturesNow

World Bank predicts Mozambique economy growing at 5.7% on average

Published

on

The World Bank has predicted that the economic growth in Mozambique is expected to accelerate in the medium term averaging 5.7% between 2022 and 2024, as a result of demand recovery and economy benefits from the start of liquefied natural gas production this year.

In a report released Thursday, the World Bank said the start of LNG production at the offshore Coral Project and the expected resumption of other LNG projects would help spur the southeast African nation’s growth in the intervening year.

The World Bank said a three-year extended credit facility arrangement agreed by Mozambique with the International Monetary Fund (IMF) and budget support from other partners would further help to strengthen its economic recovery.

The IMF’s executive board had, in May, approved a $456 million program for the country, the first since the global lender suspended support to Mozambique six years ago.

However, the World Bank warned that risks remained for Mozambique’s growth, especially from rising import prices due to the conflict in Ukraine, a possible surge in COVID infection waves, and insurgency in the north.

Continue Reading

VenturesNow

Nigeria, Algeria, Niger to revive Saharan gas pipeline talks

Published

on

The governments of Nigeria, Algeria and Niger Republic have held talks to revive a gas pipeline project across the Sahara which had been put on hold for over 40 years, with the potential opportunity for Europe to diversify its gas sources as the world faces a short fall as a result of the Russian-Ukraine war.

The three countries, represented by their various Petroleum Ministers, met in Abuja, Nigeria’s capital on Wednesday and resolved to set up a task force to revive the project and designated an entity to update the feasibility study.

A statement by Niger’s Oil Ministry after the two-day meeting stated that the Trans-Saharan gas pipeline project estimated at $13 billion, could send up to 30 billion cubic metres a year of supplies to Europe.

The statement added that the energy ministers of the three countries will meet again in Algiers at the end of July to “validate the proposals of the newly installed task force.”

“The pipeline should allow Europe to diversify its sources of natural gas supply but also allow several African states to access this high value energy source,” the statement said.

“With a length of 4,128 kilometres (2,565 miles), the pipeline would start in Warri, Nigeria, and end in Hassi R’Mel, Algeria, where it would connect to existing pipelines that run to Europe,” it said.

The gas pipeline idea was first proposed more than 40 years ago with an agreement signed between the three countries in 2009, but progress stalled stalled following a lack of follow through by the countries.

Earlier this month, Nigeria also took steps to revive another gas pipeline project that would pass through West Africa, Morocco to Europe.

Continue Reading

EDITOR’S PICK

Culture9 mins ago

Nigerian singing sensations, Wizkid, Tems, win 2022 BET Awards

Nigerian music stars, Ayo Balogun and Temilade Openiyi, popularly known as Wizkid and Tems respectively, were the biggest African winners...

Metro1 hour ago

Nigeria: Zamfara state government wants gun licenses for residents over insecurity

The Commissioner for information in one of Nigeria’s Northern states, Zamfara state says residents in the state can start approaching the police command...

Metro4 hours ago

Ex-Liberian rebel warlord charged in US over attempt to obtain citizenship fraudulently

A former commanding general of the Armed Forces of Liberia (AFL), a notorious rebel group during the West African country’s...

Politics16 hours ago

18 years after suspension, Zimbabwe lobbys for readmission into Commonwealth

Southern African Zimbabwe has continued with lobbying for readmission 18 years after it was thrown out of the body over...

Politics17 hours ago

Malian military leader signs election law that will allow him contest in 2024: Is this deja vu?

Leader of the Malian military junta, Col. Assimi Goita, has signed a new law which will pave the way for...

Politics17 hours ago

South Africa: President Cyril Ramaphosa arrives Germany for G7 Summit

South Africa’s president, Cyril Ramaphosa arrived in Munich, Germany on Sunday for the G-7 summit. According to the South African...

Metro17 hours ago

Spanish PM, Pedro Sanchez, blames ‘Mafia’ for human trafficking after African migrants’ deaths at Morocco/Melilla border

Spanish PM, Pedro Sanchez, blames ‘Mafia’ for human trafficking after African migrants deaths at Morocco/Melilla border The Prime Minister of...

Metro17 hours ago

South Africa: Eskom announces ‘Stage 4’ power cuts

South Africa’s state-owned power utility, Eskom says it will continue with “Stage 4” power cuts until Wednesday. The power rationing has been through 3...

Metro19 hours ago

Tragedy as 22 die in South African night club

At least 22 people have died from exposure to poisonous substances in a popular nightclub in East London, South Africa....

Sports19 hours ago

African soccer stars who flopped in the English Premier League

When English Premier League giants, Arsenal, paid French club Lille, a whopping £72 million which was a club record, for...

Trending