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As diamond market shrinks, Botswana to bargain larger share in HB Antwerp

Published

1 month ago

August 13, 2024

Following the decline in the diamond market, Botswana is to renegotiate its planned acquisition of a portion of Belgian gem dealer, HB Antwerp, to quadruple the amount of its stock at no additional cost, the nation’s minister of mines announced on Tuesday.

Since Botswana produces the most diamonds globally in terms of value, the decline in demand for diamonds brought on by the global economic recession has had a disproportionately negative impact on the country’s economy.

Lefoko Moagi informed the legislature that the government might renegotiate because the company’s valuation had been impacted by the weakening diamond market.

“We will not be injecting more capital, but we will get more shares for the same amount proposed in 2023,” Moagi said. “Instead of the 24%, we will negotiate to get 49.9% for the same amount initially proposed.”

According to budget documents from the Finance Ministry in February, the nation had set aside 890 million pula, or $65.95 million, for the 24% stake, which put the Belgian company’s valuation at almost $275 million.

In March 2023, amid Botswana’s discussions for a new sales contract with Anglo-American’s diamond unit De Beers, the HB Antwerp deal was revealed.

Botswana claimed that the HB Antwerp arrangement would bolster its position in the downstream diamond sector as it worked to get more authority to sell its stones outside of a long-standing contract with De Beers.

It involves providing the merchant with raw diamonds through the Okavango Diamond Company (ODC), a state-owned company, for five years.

Related Topics:Botswana Diamond Featured

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Ezz al-Arab appointed as Egypt’s CIB chairman

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

VenturesNow

Nigerian inflation falls again, drops to 32.15% in August

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.