Economy
Brexit, China’s Economic Deceleration Threatens Africa’s Growth—ECA Director
By Dipo Olowookere
Africa’s economy is set to feel the effects of Brexit following Britain’s formal trigger Wednesday of the two-year exit process from the European Union after last year’s historic referendum vote to leave the EU.
Director Adam Elhiraika of the of Economic Commission’s Macroeconomic Policy Division says Africa’s economic growth declined from 3.7 percent in 2015 to 1,7 percent in 2016 due to weak global economic conditions, persistent low oil prices and adverse weather conditions and may further be affected by Brexit.
“The effects of Brexit may slow the global economy with spillover effects into Africa, mainly through trade and financial channels,” Mr Elhiraika said as he spoke about the ECA’s Economic Report on Africa (ERA) 2017 which was launched Saturday in Dakar.
He added; “Economic deceleration in China, subdued performance of the euro area and low commodity prices also pose risks for Africa’s growth. Rising debt levels also pose a concern for continental long-term growth.”
Mr Elhiraika said although Africa’s medium-term growth prospects remained positive despite risks and uncertainties, growth continued to decline regardless of a sluggish recovery in global commodity prices.
He said weather-related shocks remained a regional risk, in particular in parts of eastern and southern Africa and could lead to poor harvests and heightens the risk of inflation.
Ultimately Africa’s growth is expected to rebound despite global headwinds even after feeling the effects of Brexit and all but Mr Elhiraika said also of concern was the fact that security remained a risk in some African countries affecting economic growth in the process.
He said progress in combating poverty and addressing inequalities on the continent remained slow raising the need for countries to embrace the rapid urbanization on the continent and coming up with policies that will spur sustainable, inclusive growth.
“The high level of initial inequality, rapid population growth and delayed demographic transition and the sectoral composition of growth are some factors responsible for the limited impact of economic growth on poverty reduction,” he said.
ERA2017 urges governments in Africa to implement urban and industrial policies in a coordinated manner and to instigate and coordinate investments in urban infrastructure, particularly in electricity and transport, both to support industrial enterprises and to meet urban populations’ needs.
Titled; “Urbanization and Industrialization for Africa’s Transformation”, the ERA looks at recent economic and social developments in Africa and offers policy recommendations to Member States and the 2017 edition specifically calls on Africa to take advantage of rapid urbanization being experienced throughout the continent.
Africa is expected to be predominantly urban by 2050 with the average annual rate of urban growth over the period 2010-2015 estimated at 3,6 percent, much higher than the rest of the world.
However, close to 60 percent of people in Africa still live in rural areas.
“Unlike global trends, urban-rural differential in welfare and living standards in Africa do not converge with increasing urbanization,” said Mr Elhiraika.
He said recent developments in the global economy have demonstrated that Africa’s dependence on commodity exports is not sustainable and suggested the continent diversifies and emphasizes value addition through commodity-based industrialization.
“Volatility in commodity prices calls for prudent and counter-cyclical macroeconomic policies and strategies,” said Mr Elhiraika, adding; “There’s need also to boost productivity and competitiveness by building the continent’s infrastructure and increased investment in research and development.”
He said Africa also needs to enact policies that promote agricultural growth and increase its global competitiveness, adding this is crucial to reducing poverty and overall income inequality and enhancing structural transformation in Africa.
The policy response to urbanization, he said, needs to cover the entire rural-urban continuum, including secondary cities.
By Adedapo Adesanya
Oil traded lower on Wednesday after US President Donald Trump eased fears of disruptions to Iranian supplies, indicating that killings in Iran’s crackdown on civil unrest were subsiding.
Yesterday, the price of Brent futures declined by 92 cents or 1.41 per cent to $64.55 per barrel while the US West Texas Intermediate (WTI) futures slipped 96 or 1.57 per cent to $60.19 a barrel.
Prices had risen on fears of Iranian supply disruptions due to a potential US attack on Iran and possible retaliation against US regional interests.
President Trump said on Wednesday afternoon he had been told that killings in Iran’s crackdown on nationwide protests were subsiding and he believed there was currently no plan for large-scale executions.
Still, tensions between Iran and the US remained high after Iran had warned US allies in the Middle East it would strike American bases on their soil if the US attacked it. The US began evacuating military personnel from a key Qatar air base on Wednesday.
While markets may have cooled somewhat on the back of President Trump’s comments, protests in Iran have persisted, and there remains plenty of uncertainty over what might come next.
Market analysts noted that continued protests in Iran risk tightening global oil balances through near-term supply losses, but mainly through rising geopolitical risk premium.
However, this remains somewhat minimal as the protests had not spread to the main Iranian oil-producing areas, which had limited the effect on actual supply.
Also supporting oil prices, Federal Reserve Bank of Minneapolis President Neel Kashkari said on Wednesday he was optimistic about the economic outlook and expected inflation to ease.
It is also looking increasingly likely that Venezuela’s oil supply is set to return to markets, with the US completing its first sale of Venezuelan oil on Wednesday.
Two supertankers departed Venezuelan waters on Monday with about 1.8 million barrels each of crude in what may be the first shipments of a 50 million-barrel supply deal between Venezuela and the US to get exports moving again following the capture of Venezuelan President Nicolas Maduro.
Crude oil inventories in the US increased by 3.4 million barrels during the week ending January 14, according to new data from the US Energy Information Administration (EIA) released on Wednesday.
The EIA’s data release follows figures by the American Petroleum Institute (API) that were released a day earlier, which suggested that crude oil inventories grew by 5.27 million barrels.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
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