Africa briefs

Sudanese pound strengthens

The Sudanese pound strengthened to 46.95 to the US dollar on Sunday, bankers said, in its first rise since the national currency was devalued under a new mechanism introduced last week to combat a financial crisis.

A team comprising bank executives and exchange houses designated to set the exchange rate on a daily basis kept the pound steady at 47.5 to the dollar throughout last week following the steep devaluation introduced last Sunday from the previous official rate of around 29 pounds to the dollar.

Sudan has been reeling from an acute shortage of foreign currency and an increasingly expensive black market for dollars that has sapped its ability to import and made prices soar, kindling unrest earlier this year in some parts of the country.

Abdel Hamid Jamil, who heads the so-called exchange rate mechanism team, said the rate was determined by the indicators on that day and after consultations.

-Nampa/Reuters

Libya state oil firm may suspend operations

Libya’s state oil firm NOC warned on Sunday it would have to suspend operations at its 120 000 barrels per day (bpd) Zawiya refinery unless security improved after two recent attacks.

The refinery west of the capital Tripoli supplies western and southern Libya with fuel. Its port also exports crude from the southern El Sharara oilfield.

Gunmen attacked the site on Wednesday, trying to break into the oil mixing operation and stealing a company car, NOC said in a statement.

The previous week unidentified people assaulted staff, kidnapping one employee who later was released and stealing cars as well as personal things from workers.

“The NOC board warned that any continuation or failure to address this situation, to ensure staff and site protection and increase security, will affect ongoing operations and result in their suspension,” NOC said in the statement.

Libya is currently producing 1 million bpd of oil on average and plans to increase output, NOC Chairman Mustafa Sanallah said on Wednesday.

Protests, blockages by armed groups or staff and outbreaks of violence have frequently interrupted production in Libya.

Current production levels remain below the OPEC member’s pre-civil war pumping rate of around 1.6 million bpd, but are at their highest since mid-2013, according to Reuters estimates.

-Nampa/Reuters

Kenya's KenGen says new geothermal plant nearly ready

KenGen's new 165.4-megawatt (MW) capacity plant powered by geothermal steam is three quarters complete and on schedule for commissioning next July, Kenya's main electricity producer said on Friday.

Geothermal steam, hot underground steam found in the Rift Valley which is used to drive turbines for electricity production, is the second biggest source of Kenya's annual power generation of 2,336 MW, accounting for 26.84% of the total.

-Nampa/Reuters

First commercial flight in 40 years links Ethiopia to Somalia

An Ethiopian airline on Saturday made the first commercial flight between Addis Ababa and Mogadishu in 41 years, in yet another sign of warming ties between neighbouring Horn of Africa nations Ethiopia and Somalia.

A plane from the private airline Ethiopia National Airways landed at Mogadishu's Aden Adde airport, and will conduct four flights per week, officials said.

"It's a historical day for us as we launch this direct flight between Addis Ababa and Mogadishu. It has never been easy, we have been trying so many times, but finally we succeeded and this day finally came," said airline owner Abera Lemi at a ceremony in the capital.

Ethiopian Airlines in July launched the first flights between Addis Ababa and Eritrea in two decades in a whirlwind peace process between the two nations after a bloody conflict and extended cold war.

-Nampa/AFP

Egypt looks to tap Asian debt markets

Egypt is considering issuing bonds in currencies other than the euro and the US dollar after launching a roadshow in Asia, Finance Minister Mohamed Maait told Reuters on Saturday, as the government steps up efforts to improve its debt structure.

The minister met investors in Seoul last week and plans to continue the marketing trip to Singapore, Japan and Malaysia among other countries, Maait said in an interview on the sidelines of the International Monetary Fund and World Bank annual meetings in the resort island of Bali.

Egypt raised 2 billion euro in bonds in April, its first issue in the single currency, and is planning to sell more euro-denominated debt next year.

-Nampa/Reuters

Rand firm as Moody's delays ratings move

The rand strengthened further on Monday after Moody's Investors Service held off on its ratings review of South Africa on Friday.

By 10:04 the local unit was trading 0.41% firmer at R14.45 against the US dollar, despite the dollar firming somewhat on risk-off sentiment.

Last week, the rand rebounded sharply following lower-than-expected CPI figures from the US as well as a decline in US stocks, following volatile trading amid a change in finance ministers. The appointment of Tito Mboweni in place of Nhlanhla Nene as Finance minister, however, reassured markets.

"On Friday, the much anticipated Moody’s ratings announcement was postponed, buying South Africa more time to bolster key measurement criteria, such as policy stability," said Peregrine's Bianca Botes in her daily market commentary.

The ratings agency did not say when it will announce its credit ratings decision, but speculation is for a decision after the Medium Term Budget Policy Statement on October 24. Moody's was the only major ratings agency not to downgrade SA sovereign debt to junk status in 2017. It is currently rated at Baa3, the lowest investment grade.

On Friday, the local unit was one of the top-performing emerging market currencies amid a rebound in local share and bond prices. NKC Africa Economics expects the rand to trade between R14.40/US$ - R14.60/US$.

-Fin24