24th July 2024
Good morning! Nigeria hikes its key interest rate again to curb inflation and stabilize the naira, Ghana's budget deficit reaches 3.4% of GDP in the first half of 2024, South Africa passes its first comprehensive climate change law, and Botswana proposes legislation for locals to acquire 24% stakes in mining ventures.
Here is your daily Rooster’s Crow:
Another Nigeria Rate Hike
The Central Bank of Nigeria has increased its key interest rate by 50 basis points to 19% to combat soaring inflation and stabilize the naira. This marks the second hike this year, driven by persistent inflationary pressures and a volatile exchange rate. Governor Godwin Emefiele highlighted that the decision aims to maintain price stability and strengthen investor confidence amid economic uncertainties. Despite the rate hike, challenges such as high fuel prices and food costs continue to pose risks to Nigeria's economic stability.
Ghana Deficit Hits 3.4%
Ghana's Finance Minister, Ken Ofori-Atta, reported a budget deficit of 3.4% of GDP for the first half of 2024, reflecting ongoing fiscal challenges. The deficit, driven by lower-than-expected revenue collections and higher public spending, underscores the need for fiscal consolidation. Ofori-Atta emphasized the government's commitment to implementing measures to boost revenue and control expenditures. The fiscal imbalance highlights the economic pressures Ghana faces as it navigates recovery efforts amid global economic uncertainties.
South Africa Pioneers Climate Law
South Africa has enacted its first comprehensive climate change legislation aimed at reducing greenhouse gas emissions and promoting sustainable development. The law mandates emission reduction targets for key sectors and establishes a framework for monitoring and reporting progress. Environment Minister Barbara Creecy stated that the legislation aligns with South Africa's commitment to the Paris Agreement and enhances the country’s climate resilience. The new law represents a significant step in addressing climate change and transitioning to a low-carbon economy.
“China-esque” Law forBotswana Mines
Botswana has proposed legislation requiring local citizens to acquire at least 24% ownership in mining ventures. The move aims to boost local participation and ensure that the benefits of the country’s mineral wealth are more broadly shared. The proposed law is part of broader efforts to empower Batswana and stimulate economic growth. Mining, a crucial sector in Botswana's economy, is expected to see significant shifts as the law, if passed, will affect new and existing mining operations.
Coming up…
South Africa releases its June inflation figures whilst Nigeria will publish its latest oil production data.
