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South Africa’s Pick n Pay leaves Nigeria

Published

2 months ago

October 28, 2024

As part of its plan to restructure outside of its home market, South African grocery chain, Pick n Pay, announced on Monday that it would sell its 51% stake in a joint venture, quitting Nigeria.

With a collaboration with A.G. Leventis (Nigeria), the retailer entered the Nigerian market less than five years ago and now operates two locations there.

The company also announced a broader half-year loss, which included greater borrowing expenses and trade losses in its main grocery sector.

In the 26 weeks ending August 25, the nation’s third-largest grocery store recorded a loss of 1.1 billion rand ($62 million) before tax and capital expenses, down from a loss of 837.2 million rand the previous year.

The corporation reported that trading losses in its pick-n-pay business increased 9.1% to 718.9 million rand, mostly as a result of a decline in the gross profit margin.

Nigeria’s inadequate infrastructure is impeding its potential for widespread economic expansion. Foreign companies have started leaving the country lately, and manufacturers are already complaining about the upcoming year.

A report earlier this year predicted that barring a shock to the naira’s appreciation, the drag from rising energy costs would continue past 2024.

Additionally, borrowings might rise due to the combined impact of rising operating and machinery costs in naira that are meant to be paid for with foreign exchange and rising dollar-denominated debts that might see a spike in value when converted to naira.

Related Topics:Featured Nigeria South Africa

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Moroccan annual inflation rises to 0.8% in November

Published

17 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”