30th January 2024
Ghana: Rate Pioneers
The Bank of Ghana has made its first benchmark interest rate cut since 2021, reducing the key rate from 30% to 29%. This move is based on the bank's expectation of continued inflation slowdown while aiming to support the economy. Annual inflation dropped to a 21-month low of 23.2% in December. Governor Ernest Addison emphasized that the disinflation process is expected to continue, with inflation easing to around 13%-17% by the end of 2024. The cautious approach is due to existing inflation risks, requiring adherence to the 2024 budget and a tight monetary policy stance.
South Africa's ANC Suspends Ex-President Zuma Over Election Support
South Africa's ANC has suspended former President Jacob Zuma after he declared he wouldn't vote for the party in upcoming national elections and pledged support for a rival group. The ANC's national executive committee made the decision amid concerns that Zuma's opposition could impact the party's support base. Zuma, facing accusations of tacit consent to state looting during his presidency, recently announced campaigning for the uMkhonto WeSizwe party. The move highlights internal rifts within the ANC, risking challenges as the country prepares for elections later this year.
Dangote Refinery Imports US Crude Amid Global Competition
Nigeria's Dangote refinery, the largest in Africa, is set to import crude from the U.S. for the first time, reflecting the competitiveness of American barrels in the global market. Trafigura Group sold 2 million barrels of WTI Midland to the Dangote refinery for end-February delivery. Nigeria's economy heavily relies on petroleum exports, making the move noteworthy. The 650,000-barrel-a-day refinery, owned by Aliko Dangote, Africa's richest person, recently commenced operations and plans to process domestic and international crudes, including those from the U.S. The decision is likely influenced by the competitive pricing of U.S. oil.
Maroc Telecom Faces $636 Million Fine in Unfair Competition Lawsuit
Morocco's commercial court has ordered Maroc Telecom, the market leader, to pay $636 million to competitor Wana Corporate (Inwi) for unfair competition practices. Maroc Telecom's shares fell 9.99% following the verdict. Inwi accused Maroc Telecom of abusing its dominant market position. The fine exceeds Maroc Telecom's 2022 annual profit. The company has the right to appeal the decision. In 2020, the telecom regulator fined Maroc Telecom for similar practices. Maroc Telecom, 53% controlled by UAE's Etisalat, operates in several African countries, while Inwi is majority controlled by the royal family's holding company Al Mada.
