27 February-6 March 2025 Weekly Economics Wrap: Insights from Global to Local Markets

 Offshore Ecosystem and the Risks of Overexploitation

U.S.-based marine scientist, Dr. Vincent Pieribone, has sounded the alarm over the increasing risk of pollution and overexploitation of Namibia’s offshore ecosystem. The marine expert raised concerns that ongoing activities such as oil and gas exploration, fishing, and diamond mining threaten the delicate marine environment. Dr. Pieribone warned that these industries, while economically beneficial, could lead to irreversible damage to the country’s rich marine biodiversity, stressing the need for stricter regulations and sustainable practices to protect Namibia’s offshore ecosystem.

Namibia Parliament Debates Investigation into Unethical Banking Fees

In Namibia, parliamentarians are deliberating on the potential investigation into unethical banking fees and overcharging. Some members of parliament (MPs) argue that these high fees are detrimental to consumers and small businesses, calling for increased transparency in banking practices. The motion, which seeks financial reforms, is gaining traction with many MPs pushing for stronger regulatory measures. On the other hand, representatives from the banking sector justify their current policies, attributing high fees to operational costs, further intensifying the debate.

South Africa’s Manufacturing Struggles and PMI Report

South Africa’s manufacturing sector saw worsening conditions in February, as reported by the latest Absa Purchasing Managers’ Index (PMI). The PMI fell to 44.7 from 45.3 in January, remaining below the critical 50-point threshold that signals economic expansion. The report paints a concerning picture for South African manufacturers as they continue to struggle with factors such as declining demand and rising production costs, highlighting the broader challenges facing the economy.

Rand Appreciates Amid U.S. Dollar Pressure

South Africa’s rand saw an upward movement on Wednesday, as the U.S. dollar came under pressure following market reactions to President Donald Trump’s policies. By late afternoon, the rand was trading at 18.37 per U.S. dollar, representing a 0.5% gain from its previous close. This appreciation is attributed to both international market dynamics and investor sentiment toward the South African economy, which has been under significant strain recently.

Sasol Share Sell-Off: A Downward Trend for South Africa’s Asset Managers

South African asset managers, Coronation and Stanlib, offloaded a combined R9 billion in Sasol shares between October and December 2024. This large-scale sell-off contributed to the sustained decline in Sasol’s share price, which dropped from R100 to R80 during this period. The move has sparked concerns among investors about the future performance of Sasol and its potential long-term impact on the South African energy sector.

Nigerian Coffee Farmers Struggle Despite Record Global Prices

Despite the surge in global coffee prices, Nigerian coffee growers are facing significant challenges in benefiting from this boom. Supply shortages from major coffee producers, such as Brazil and Vietnam, have driven global prices to record highs. However, Business Day Nigeria reports that local farmers are unable to capitalize on these favorable conditions due to structural challenges in the industry. In contrast, coffee farmers in neighboring countries like Kenya, Rwanda, and Ethiopia are seeing much better returns on their crops.

China’s Shale Oil Discovery: A New Strategic Resource

Sinopec, China’s leading oil refiner, made headlines this week with the discovery of two significant shale oilfields in the country’s east. The discovery, with a combined proven reserve of 180 million tonnes, was confirmed by China’s Ministry of Natural Resources. This announcement marks a strategic move by China to bolster its domestic oil production and reduce dependence on imported oil, especially at a time when global energy markets are volatile.

BlackRock’s $22.8 Billion Investment in Panama Canal Ports

In a landmark deal, American asset management giant BlackRock has agreed to purchase two ports at either end of the Panama Canal for a whopping $22.8 billion. The transaction, which includes a consortium of investors, sees BlackRock taking control of the ports of Balboa and Cristobal from Hong Kong-based CK Hutchison. This acquisition is a strategic move to expand BlackRock’s infrastructure investments and strengthen its position in global trade routes.

Canada Challenges U.S. Tariff Increases at WTO

In international trade news, Canada has filed a complaint with the World Trade Organization (WTO) against the United States over President Donald Trump’s sweeping tariff increases. The WTO official confirmed that Canada initiated dispute proceedings against the U.S. following the imposition of additional tariffs on several goods, including steel and aluminum. This follows a similar move by Beijing, which filed a complaint against the U.S. over fresh tariffs imposed on Chinese goods.

Financial Indicators: Global Market Snapshot

• Namibia Dollar: Trades at 18.31 to the U.S. dollar, 19.76 to the Euro, and 23.61 to the Pound.
• Gold: Trading at $2,922.04 per fine ounce.
• Brent Crude: Sits at $71.04 per barrel.
• Bitcoin: Costs $1,654,434.27.

Stay tuned for more updates in next week’s economic wrap!

The post 27 February-6 March 2025 Weekly Economics Wrap: Insights from Global to Local Markets first appeared on Future Media News.

The post 27 February-6 March 2025 Weekly Economics Wrap: Insights from Global to Local Markets appeared first on Future Media News.