Economy
Experts Back Intra-African Trade at Afreximbank AGM
By Dipo Olowookere
Speakers at the 24th Annual General Meeting (AGM) of the African Export-Import Bank (Afreximbank) have stressed the importance of regional integration to develop the continent’s economy.
The 24th AGM of the lender opened on Wednesday in Kigali, Rwanda, and over 100 speakers, including academics, African and global trade development experts are scheduled to speak during the four days of the event with a focus on unlocking Africa’s trade potential.
Rwanda’s Minister of Finance and Economic Planning, Mr Claver Gatete, emphasised the need to create regional value chains which have the potential to generate enormous benefits for African economies.
In his opening address during the seminars of the Afreximbank Advisory Group on Trade Finance and Export Development in Africa, the Minister said, “The creation of regional value chains in Africa along several product lines could ease the integration of African economies into global value chains.”
“In this context, ongoing efforts to deepen regional economic blocks within Africa offers tremendous opportunities to draw on economies of scale to transcend the natural and environmental constraints imposed by geography,” he continued.
Mr Gatete remarked that although African trade had witnessed remarkable growth, especially over the last two decades, rising from $210 billion in 1996 to $1.2 trillion in 2015, its share of global trade had barely changed, remaining at about 15 percent, compared to 67 percent in Europe, 53 percent in Developing Asia and about 37 percent in America.
He commended Afreximbank’s support to Rwanda’s economic transformation, noting that the Bank had provided direct financing amounting to $155 million in support of development projects in Rwanda.
Also speaking, Mr Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services, said that the resounding success achieved by some countries in Asia, in particular China and Korea, and the critical role played by intra-regional trade in their development, presented Africa with valuable lessons for positioning intra-African trade as a key pillar for economic growth, and sustainable development.
Noting the challenge posed to Africa by small size of economies and market fragmentation; to Mr Denya argued that connecting the host of small and disconnected markets through deepening of intra-African trade and economic integration would create an environment where firms gained access to hitherto non-existent larger markets.
He said that Africa’s progress toward economic development and structural transformation had been hindered by over-reliance on export of natural resources and primary commodities and a deficit of export diversification which limited the ability of countries to effectively develop regional value chains to enhance their integration into global value chains.
In a presentation, Dr Hippolyte Fofack, Afreximbank’s Chief Economist, said that the Bank’s, Fifth Strategic Plan, known as “Impact 2021: Africa Transformed”, had been designed to address the challenges facing African countries on their path to development.
Its first two pillars, Promoting Intra-African Trade, and Industrialisation and Export Development, would support the economic diversification and trade openness, which had been identified as the key to attaining and sustaining growth, he said.
By Adedapo Adesanya
Nigerian energy company, Oando Plc, has won the bid for the operatorship of oil block KON 13 in Angola.
The company, which recently acquired Eni of Italy’s oil assets in Nigeria, disclosed on Wednesday that the award of the oil block located in Angola’s onshore Kwanza Basin followed a competitive bidding process by the country’s oil and gas sector regulator.
Oando disclosed that the asset, in which it owns 45 per cent participating interest, has an estimated prospective resources of 770 to 1,100 million barrels of oil. Oando is handling its operations relating to the asset through its upstream subsidiary, Oando Energy Resources (OER).
“Oando Plc (the company), Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange is pleased to announce that its upstream subsidiary, Oando Energy Resources (OER), has been awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, following a competitive bidding process organised by the Angolan National Agency for Petroleum, Gas, and Biofuels (ANPG).
“Block KON 13 is strategically located in the prolific Kwanza Onshore Basin which represents significant exploration potential in both pre-salt and post-salt plays, with estimated prospective resources of 770 to 1,100 million barrels of oil.
“The block has two exploration wells previously drilled to a target depth of 3,000m, with oil and gas observed across various depths. With a 45 per cent participating interest, OER will lead the development of the block as an operator, alongside Effimax (30 per cent) and Sonangol (15 per cent) as co-venturers,” it stated.
Commenting on the award, the chief executive of Oando Plc, Mr Wale Tinubu, expressed confidence in the capacity of the company, in collaboration with its co-venturers, to unlock the full potential of the asset for the country.
“We look forward to collaborating with our co-venturers and other key stakeholders to harness this opportunity and unlock its full potential for Angola and Africa as a whole,” Mr Tinubu said.
This milestone, the company said, marks its strategic entry into the Angolan oil and gas market and represents a significant step in its long-term vision to grow its upstream operations across Africa.
According to Oando Plc, it also solidifies the company’s position as a prominent player in the continent’s energy landscape, evolving from a local indigenous operator to a regional powerhouse.
Following the company’s recent successful acquisition of NAOC Ltd in Nigeria, the addition of Block KON 13, the energy firm stressed, further bolsters the company’s upstream portfolio and reflects its commitment to driving regional growth and energy security.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange appreciated by 0.74 per cent on Wednesday, January 22 as a result of buying pressure on the market.
Yesterday, the NASD Unlisted Security Index (NSI) garnered 22.86 points to wrap the session at 3,123.19 points compared with 3,100.33 points recorded in the previous session, as the value of the unlisted securities market went up at midweek by N5 billion to close at N1.076 trillion, in contrast to the preceding day’s N1.071 trillion.
The alternative bourse ended with three price gainers and two price losers at the Wednesday session.
Mixta Real Estate Plc improved its value by 25 Kobo to end at N2.83 per unit compared with the previous day’s N2.58 per unit, Okitipupa Plc jumped by N3.56 to close at N43.55 per share versus N39.99 per share, and First Trust Mortgage Bank Plc added 2 Kobo to settle at 39 Kobo per unit compared with Tuesday’s trading price of 37 Kobo per unit.
On the flip side, UBN Property Plc lost 16 Kobo to end at N1.86 per share, in contrast to the preceding session’s N2.00 per share, and Mass Telecomm Innovation Plc went down by 1 Kobo to 41 Kobo per unit from 40 Kobo per unit.
During the session, there was a 216.2 per cent rise in the volume of securities traded to 581,160 units from 183,780 units, the value of securities traded by investors decreased by 48.9 per cent to N2.3 million from N4.5 million, while the number of deals increased by 84.6 per cent to 24 deals from 13 deals.
When the bourse closed for the day, Industrial and General Insurance (IGI) Plc was the stock with the highest trading volume (year-to-date) with 25.3 million units valued at N5.9 million, followed by Geo-Fluids Plc with 9.1 million units sold for N44.0 million, and FrieslandCampina Wamco Nigeria Plc with 4.1 million units worth N162.9 million.
By value, FrieslandCampina Wamco Nigeria Plc topped the activity chart after selling 4.1 million units worth N162.9 million, trailed by Geo-Fluids Plc with 9.1 million units sold for N44.0 million, and 11 Plc with 55,358 valued at N14.5 million.
By Adedapo Adesanya
The Nigerian Naira recorded improvements in the official and black markets on Wednesday as the Central Bank of Nigeria (CBN) announced its intention to launch an FX code designed to boost the integrity of the market.
The apex bank explained the code will serve as a guideline for the ethical conduct of FX dealers in the Nigerian forex landscape.
“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of Authorised Dealers in the Nigerian Foreign Exchange Market.
“The bank will formally launch the code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” a statement from the regulator read.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the forex market window, the local currency gained 0..01 per cent or 20 Kobo against the US Dollar to close at N1,552.58/$1 compared with the preceding day’s N1,552.78/$1.
However, the domestic currency depreciated against the British Pound Sterling in the official market yesterday by N8.55 to wrap the session at N1,915.53/£1 compared with Tuesday’s N1,906.98/£1 and against the Euro, the Naira lost N4.24 to sell for N1,617.72/€1 versus N1,613.48/€1.
At the parallel market, the Nigerian currency improved its value against the greenback yesterday by N10 to quote at N1,660/$1, in contrast to the preceding session’s N1,670/$1.
In the cryptocurrency market, it was bearish after it was clarified that an earlier leak on the website of the Chicago Mercantile Exchange (CME), showing regulated XRP (XRP) and Solana (SOL) futures could start trading on February 10 pending regulatory approval, was an error.
This, coupled with profit-taking from the Mr Donald Trump rally, saw Dogecoin (DOGE) fall by 3.9 per cent to $0.3537, as Ethereum (ETH) depreciated by 3.1 per cent to quote at $3,213.39, and Bitcoin (BTC) depleted by 3.0 per cent to trade at $102,654.79.
Further, Cardano slumped by 2.9 per cent to $0.9708, Litecoin (LTC) weakened by 2.7 per cent to $113.62, Solana (SOL) recorded a 2.5 per cent depreciation to sell at $249.58, Binance Coin (BNB) shed 1.9 per cent to close at $686.40, and Ripple (XRP) dropped 1.2 per cent to end at $3.14, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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