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Stakeholders Jubilate as AfCFTA Implementation Kicks Off

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AfCFTA

By Adedapo Adesanya

As African countries kick off intra-regional trading under the African Continental Free Trade Area (AfCFTA) agreement, many stakeholders on the continent have welcomed the latest development.

The African Union (AU) launched the start of the trading of the continental free trade area on January 1, marking a significant milestone towards the world’s largest free-trade zone.

The Rwandan President, Mr Paul Kagame, via a Twitter post, stated that, “Cheers to the launch of Trading #AfCFTA, to those who put it all together and the rest of us who have to join in to make it work and worthwhile!!”

The launch is a culmination of years-long negotiations among African countries, which started in 2018 when a landmark agreement was signed in Kigali by leaders of 44 countries.

So far, 54 countries out of the 55 on the continent have signed the agreement. A total of 33 have ratified it and over 40 have submitted their offers. This signals that Africa is ready to start trading as a single market.

The agreement envisions a continental market of 1.2 billion people, with a combined Gross Domestic Product (GDP) of more than $3.4 trillion.

The agreement will also boost the level of intra-Africa trade and the launch of the trading takes Africa a step closer to the vision of an integrated market on the African continent as it will boost the continent’s manufacturing capability and increase exports.

Speaking on this, Mr Wamkele Mene, the Secretary-General of AfCFTA Secretariat said, “This African Continental Free Trade Area should not just be a trade agreement, it should actually be an instrument for Africa’s development.”

Mr Mene said the start of trading offers an immense opportunity for the continent to overcome smallness of national economies, and to overcome a lack of economies of scale.

“We have to take active steps to make sure that we place Africa on a path to accelerated industrial development so that by 2035 we are able to double intra-African trade,” he noted.

It also means that trading across borders amongst African countries will be easier and cheaper and in addition, it also means increased opportunities for thousands of entrepreneurs and businesses.

Investors, too, will be able to do business on a single set of trade and investment rules across the African continent, overcoming market fragmentation that has characterized the continent for decades.

The President of the African Export-Import Bank (Afreximbank), Mr Benedict Oramah said 400 African banks are on board to provide trade finance support to African businesses.

That number is expected to increase to 500 banks soon with a combined $8bn trade finance capacity in the next 18 months.

By 2025, the continent has the opportunity to lift out of poverty 100 million Africans majority of whom are women, cross-border traders, if it implements the AfCFTA effectively, according to the African Development Bank (AfDB).

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Synthetix to Acquire Derive to Strengthen Position in Decentralized Derivatives

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Synthetix Acquire Derive

By Modupe Gbadeyanka

To strengthen its position in decentralized derivatives, Synthetix is considering the acquisition of a decentralized onchain options AI-powered platform, Derive.

Derive, known for its innovative structured product offerings, has quickly gained recognition in the DeFi space for bringing intuitive and institutional-grade financial tools to the blockchain.

By integrating Derive’s front-end expertise and RWA strategies with Synthetix’ robust derivatives and liquidity infrastructure, Synthetix is positioned to accelerate the adoption of decentralized derivatives trading.

The strategic acquisition marks a significant step forward in Synthetix’s mission to launch the most renowned decentralized derivatives exchange on Ethereum Mainnet.

Under the terms of the agreement, Synthetix has proposed to acquire Derive in a token to token transaction.

The exchange ratio will be 27 $DRV <> 1 $SNX, reflecting an approximate $27 million valuation. This transaction is subject to approval from both the Synthetix and Derive community votes, taking place next week.

The acquisition is structured as a token-based merger, with Derive’s community and contributors joining Synthetix governance. The combined team will continue delivering on the Synthetix V4 roadmap and roll out options markets later this year.

“We’re combining the best onchain derivatives stack in DeFi – Derive, with one of the most iconic DeFi projects in its history – Synthetix.

“This deal will get maximum leverage out of Derive’s technical stack, and bring us closer to our shared goal of accelerating the adoption of decentralised derivatives.

“This is just the beginning, and we can’t wait to see the impact of this team up on the market,” the founder of Derive, Mr Nick Forster, stated.

“The acquisition of Derive marks a significant milestone in Synthetix’s pursuit of developing the most robust decentralized derivatives platform in the crypto ecosystem.

“We are delighted to welcome Derive into the Synthetix family, leveraging our combined expertise to drive innovation and accelerate the launch of a comprehensive decentralized derivatives platform on Ethereum,” Mr Benjamin Celermajer of Synthetix stated.

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Relief Across Markets as US-China Agree to Trade Deal

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us china trade deal

By Adedapo Adesanya

The global markets are experiencing relief as the United States and China, the world’s two largest economies, have agreed to slash tariffs on each other, to ease effects of a trade war.

Speaking after talks with Chinese officials in Geneva, US Treasury Secretary, Mr Scott Bessent told reporters that the two sides had reached a deal for a 90-day pause on measures.

US trade representative Jamieson Greer said so-called reciprocal tariffs were now at 10 per cent each.

Business Post reports that in real terms, the deal means the US is reducing its 145 per cent tariff announced by President Donald Trump to 30 per cent on Chinese goods.

A tariff of 20 per cent had been implemented on China when President Trump took office over what his administration said was a failure to stop illegal drugs entering the US.

China has agreed to reduce its 125 per cent retaliatory tariffs to 10 per cent on US goods.

Sector-specific tariffs, such as the 25 per cent tax on cars, aluminium and steel, remain in place.

Last month, President Trump announced a 90-day pause on the reciprocal tarrifs. However, China was the only country exempt from the pause on the retaliatory tariffs above the base 10 per cent levies.

The development had impacted many markets across the world from stocks to oil to bonds and minerals.

Mr Bessent said after a weekend of negotiations in Switzerland, the countries had a mechanism for continued talks.

It is the second major trade announcement made by the US in the last week, after a deal was secured with the United Kingdom on Thursday.

The move signals a willingness from the Americans to make deals on tariffs.

The news was received positively by major markets.

Brent crude is currently up 2.9 per cent to $65.78 per barrel while the US West Texas Intermediate (WTI) is up 3.1 per cent to $62.91 a barrel.

Asian stock markets on Monday as major indexes were up. In China, the Shanghai Composite stock index rose 0.8 per cent, the Shenzhen Component gained 1.7 per cent, and Hong Kong’s Hang Seng index was up nearly 3 per cent.

Korea’s Kospi grew 1.1 per cent, Japan’s Nikkei was up 0.8 per cent while India’s Nifty 50 index of most valuable companies gained more than 3 per cent, as per Sky News.

CNBC reports that US stocks look set to rise on the open, based on after-hours trading. Wall Street’s tech-heavy Nasdaq is expected to rise by 3.3 per cent, and the S&P 500 index of companies relied on to be stable and profitable by 2.5 per cent.

Mr Bessent also said, “As long as there is good faith effort, engagement and constructive dialogue, then we will keep moving forward,” in response to questions from journalists.

The market will await further developments and possible ease to recent headwinds.

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American Robert Prevost Emerges as New Pope 

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Robert Prevost

By Adedapo Adesanya

The new pope of the Catholic Church has been revealed as Robert Prevost of the United States, the first American pontiff in history.

Following his emergence, he will be known as Pope Leo XIV.

Voting commenced on Wednesday, and after three rounds of black smoke, white smoke billowed above the Sistine Chapel on Thursday evening.

This is the signal that cardinals had selected a new pontiff on the second day of the conclave.

Prevost, age 69, from Chicago, Illinois, is a leader with global experience. He spent much of his career as a missionary in South America and served as a Bishop in Peru. He most recently led a powerful Vatican office for bishop appointments. He is expected to build on Pope Francis’ reforms.

There were 133 voting cardinals, who had all been sequestered inside the Vatican during the conclave. Any one of them needed two-thirds of the vote to become the next pope.

“Peace be with you all,” said Leo XIV in his first remarks as pope.

“This is the first greetings of the resurrected Christ, the good shepherd who has given up his life for God,” he said, explaining the choice of his greeting. “And I should also like this greeting of peace to enter our hearts and our families.”

Leo XIV looked visibly emotional as he waved to the adoring crowd in the square below the balcony.

A leader with global experience, he spent much of his career as a missionary in South America and most recently led a powerful Vatican office for bishop appointments. He is expected to build on Pope Francis’ reforms.

He worked for a decade in Trujillo, Peru, and was later appointed bishop of Chiclayo, another Peruvian city, where he served from 2014 to 2023.

Prevost also holds a Peruvian passport and has been a Peruvian citizen since 2015.

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