Investors update: August 11 2023 - South Africa strikes trade agreements worth $2.2b with China

South Africa strikes trade agreements worth $2.2b with China

Highlights

• Companies from South Africa and China concluded trade deals worth $2.19 billion during a visit to the country by Chinese Commerce Minister Wang Wentao.
• The agreements were made at a meeting of a joint economic and trade committee aimed at boosting South African manufacturing exports to China and Chinese investment in the Southern African country.
• In the first seven months of 2023, China’s trade with South Africa surged by 10.5% year-on-year, reaching $32.69 billion. China’s exports to South Africa increased by 16.5%, while imports from the country rose by 6.1%. 

Source: Bloomberg

Our Takeaway

The thriving trade and investment cooperation between China and South Africa in the past years set a great example for major developing economies. Based on their advantages, the two countries have carried out effective and mutually beneficial cooperation and achieved significant growth in trade. But experts believe the development of the global economy currently requires new paths. China has been actively exploring emerging fields like the digital economy and e-commerce, which provides a good model and reference for African countries including South Africa.

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Airtel Africa and Mastercard launch new remittance transfer service

Highlights

• Airtel Africa and Mastercard announced the launch of a new cross-border remittance service that will enable Airtel subscribers across 14 African markets to send and receive money. 
• An estimated $95.6 billion a year flows into the continent, making remittances a major source of foreign currency in Africa. 
• The new service will be rolled out in a phased approach to provide consumers with a seamless digital experience connecting them to millions across the world.

Source: ABC

Our Takeaway

Africa’s digital economy continues to grow and expand. Per Mastercard’s 2022 Borderless Payments Report, digital payments are seeing strong growth with three-quarters of consumers who send and receive cross-border payments doing so through mobile apps. This growth has created a need to make cross-border remittances easy and secure for both banked and unbanked consumers, an opportunity that Airtel and Mastercard are looking to tap, making mobile financial services accessible to everyone across the continent.

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Ecowas plans standby troops to restore democracy in Niger

Highlights

• Tensions are escalating between Niger’s new military regime and the West African regional bloc that has ordered the deployment of troops to restore Niger’s flailing democracy.
• The ECOWAS bloc said on Thursday it had directed a “standby force” to restore constitutional order in Niger after its Sunday deadline to reinstate ousted President Mohamed Bazoum expired.
• Hours earlier, two Western officials told The Associated Press that Niger’s junta had told a top U.S. diplomat they would kill Bazoum if neighboring countries attempted any military intervention to restore his rule.

Source: The Guardian

Our Takeaway

Niger, a country of ~25 million people, was seen as one of the last hopes for Western nations to partner with in beating back a jihadi insurgency linked to al-Qaida and the Islamic State group that’s ravaged the region. France and the United States have more than 2,500 military personnel in Niger and together with other European partners have poured hundreds of millions of dollars into propping up its military. The junta responsible for spearheading the coup, led by Gen. Abdourahmane Tchiani, has exploited anti-French sentiment among the population to shore up its support as Nigeriens in the capital, Niamey, ask Ecowas to not intervene.