Category Archives: General

Oil drops more than 1 % despite Middle East conflict

Storage tanks are seen at the Petroineos Ineos petrol refinery in Lavera, France, March 29, 2022. REUTERS/Benoit Tessier

LONDON, Jan 15 (Reuters) – Oil prices lost more than 1 % on Monday as the Middle East conflict’s limited impact on crude output prompted profit taking after oil benchmarks gained 2 % last week.

Brent crude futures were down $1.14, or about 1.5%, at $77.15 a barrel by 1250 GMT and U.S. West Texas Intermediate crude lost $1.15, or 1.6%, to $71.53.

Several tanker owners steered clear of the Red Sea and multiple tankers changed course on Friday after U.S. and Britain launched strikes against Houthi targets in Yemen after the Iran-backed group’s attacks on shipping in response to Israel’s war against Hamas in Gaza.

The conflict has also held up at least four liquefied natural gas tankers travelling in the area.

“The realisation that oil supply has not been adversely impacted is leading last week’s bulls to take profit, with the move down somewhat exacerbated by a slightly stronger dollar,” said Tamas Varga of oil broker PVM.

On Sunday the Houthi militia threatened a “strong and effective response” after the United States carried out another strike overnight. The U.S. later said it shot down a missile fired at one of its ships from Yemen.

The chief negotiator for Yemen’s Houthis on Monday warned that attacks on ships headed towareds Israel will continue.

“As the Middle East conflict is currently not affecting oil production, the geopolitical risk premium priced in oil prices now appears modest based on the implied volatility of options,” Goldman Sachs analysts said in a note.

There have been no oil supply losses so far, but the shipping disruption is indirectly tightening the market by keeping 35 million barrels at sea owing to longer journeys shippers have to take to avoid the Red Sea, Citi analysts wrote.

Source: Reuters, 15th January 2024

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DFC Approves Over $3.3 Billion in Investments with a Focus on Africa in Q1 FY2024

 

The U.S. International Development Finance Corporation (DFC) has greenlit a series of strategic investments totaling more than $3.3 billion in the first quarter of Fiscal Year 2024.

The 17 approved transactions, spanning a diverse array of sectors, underscore the DFC’s commitment to advancing global development priorities, with a particular emphasis on fostering growth, sustainability, and empowerment across Africa.

Expanding Global Impact:

DFC’s Board of Directors approved nine transformative projects this quarter, reflecting the corporation’s multifaceted approach to development:

  1. Global Vaccine Access: The DFC will utilize its $1 billion loan facility with Gavi, the Vaccine Alliance, to broaden access not only to COVID-19 vaccines but also to routine childhood vaccines globally.
  2. Empowering Women in the Dominican Republic: A $200 million loan to Banco Popular Dominicano, S.A. aims to empower women entrepreneurs and small businesses in the Dominican Republic.
  3. Energy Security in Eastern Europe: DFC’s support of a €208 million loan to Bulgartransgaz EAD, facilitated by Citi, will enhance energy security in Eastern Europe, reducing dependence on Russian gas supplies.
  4. Small Business Financing in East Africa: A $320 million co-financing effort with Citi will empower CRDB Bank to enhance on-lending capabilities to small businesses in Tanzania and Burundi, with a focus on women-led enterprises.
  5. Clean Energy in Indonesia: A $126 million loan to PT Medco Cahaya Geothermal will boost Indonesia’s renewable energy production by developing geothermal power generation capacity.
  6. Climate and Energy Investment in India and the Indo-Pacific: An equity commitment to Eversource Climate Investment Partners II will drive climate change adaptation and energy transition projects across India and the Indo-Pacific.
  7. Global Food Security: A $250 million loan to Indorama Eleme Fertilizer and Chemicals Limited/SPV Line III will increase fertilizer production in Port Harcourt, Nigeria, strengthening global food security.
  8. Safe Water Access in Angola: DFC’s support of up to $250 million will enable the development of water treatment and distribution infrastructure in Southern Angola, providing reliable, safe drinking water to underserved communities.
  9. Education Access in Emerging Economies: A $250 million loan to a special purpose vehicle (SPV) established by Prodigy Finance Ltd. will enhance access to high-quality education for graduate students from developing nations.

Regional Focus on Africa:

In addition to these board-approved transactions, the DFC has greenlit targeted investments at the sub-board level, with a clear emphasis on Africa:

  1. Critical Mineral Supply Chains in South Africa: A $50 million equity investment in TechMet will support the development of a rare earth element processing facility in South Africa, enhancing global critical mineral supply chains.
  2. Women’s Economic Empowerment Worldwide: A $30 million follow-on loan to the IIX Women’s Catalyst Fund will support the issuance of the sixth IIX Women’s Livelihood Bond, promoting economic empowerment for women globally.
  3. Access to Higher Education in Ukraine: A $10.7 million loan to Ukrainian Catholic University will finance the expansion of the university’s campus in Lviv.
  4. Food Security in Zambia: A $10 million loan to Seba Foods Zambia Ltd. dba 260 Brands will strengthen the food value chain in Zambia by expanding storage and production capacity.
  5. Supporting Ukrainian Small Businesses: A $28 million loan portfolio guaranty to ProCredit Bank Ukraine will catalyze investment in Ukrainian small businesses, especially those in the agricultural sector.
  6. Infrastructure Growth in Zambia: An up to $17.1 million loan to African Eagle Hotels and Resorts will finance the construction and operation of an international hotel in Lusaka, Zambia.
  7. Clean Energy in Africa: Two $10 million loans to SIMA Commercial & Industrial Solar Green Bond B.V. will spur investment in small and medium-sized renewable energy projects across the continent.

Congressional Notification and Global Impact:

Many of these investments are subject to congressional notification, emphasizing the collaborative nature of these strategic endeavors. The DFC’s commitment to fostering sustainable development, economic empowerment, and infrastructure growth across Africa is evident in these diverse and impactful investments.

Source: Today News Africa, 10th January 2024

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Interview: AI expert warns of ‘digital colonization’ in Africa

Artificial intelligence (AI) is ripe to help resolve certain major problems in Africa, from farming to the health sector, but Senegalese expert Seydina Moussa Ndiaye is warning of a new “colonization” of the continent by this new technology if foreign companies continue to feed on African data without involving local actors.

One of 38 people members of the new UN advisory body on machine learning, Mr. Ndiaye spoke with UN News about the landscape ahead, building on his experience in helping to drive Senegal’s digital transformation in higher education, serving as an expert to the African Union in drafting the Pan-African Strategy on AI and in contributing to the Global Partnership on Artificial Intelligence (GPAI).

Senegalese AI expert Seydina NDiaye is one of the 38 experts of the UN High-Level Advisory Body on Artificial Intelligence.

© Courtesy of Seydina Ndiaye
Senegalese AI expert Seydina NDiaye is one of the 38 experts of the UN High-Level Advisory Body on Artificial Intelligence.

 

UN News: How could AI help Africa?

Seydina Moussa Ndiaye: There are several African countries that are beginning to have a dedicated strategy for artificial intelligence. However, there is a pan-African strategy that will soon be published, with a continental vision of AI development.

More and more, young people launching startups are interested in this, and they have a real thirst for knowledge in the field of AI. This growing interest can be accelerated with international help.

However, there is a wall in some areas, and AI can in fact be used to solve certain problems, including in agriculture. In the health sector, AI could in fact solve a lot of problems, especially the problem of a lack of personnel.

The other element that is also very important is the development of cultural identity. Africa has been seen as a continent with a cultural identity that has not been able to impose itself across the world. With the development of AI, we could use this channel so that African cultural identities are better known and better valued.

Bernice Kula-Kula, a refugee from DR Congo, studies computer engineering, cybersecurity and artificial intelligence on a UNICORE scholarship, thanks to Italy with UN-support.

© UNHCR/Agnese Morganti
Bernice Kula-Kula, a refugee from DR Congo, studies computer engineering, cybersecurity and artificial intelligence on a UNICORE scholarship, thanks to Italy with UN-support.

 

UN News: Are there bad sides of AI threatening Africa?

Seydina Moussa Ndiaye: The biggest threat for me is colonization. We may end up with large multinationals in AI that will impose their solutions throughout the continent, leaving no room for creating local solutions.

Most of the data currently generated in Africa is owned by multinationals whose infrastructure is developed outside the continent, where most African AI experts also operate. It’s a loss of African talent.

The other important element to consider is in the context of the fourth industrial revolution. The power of AI combined with advances in biotechnology or technology could be used, and Africa could be the place where all these new solutions are actually being tested.

If it’s not supervised, we could end up with tests that would take place on humans with chips or even integrated biotechnology elements that we improve. These are technologies that we don’t really master well. In regulatory terms, there are certain aspects that have not been considered. The very framework for the application of ideas and existing regulations is not effective.

In concrete terms, and when you don’t control these things, it could happen without anyone knowing. We could have Africa being used as a Guinea pig to test new solutions, and this could be a great, great threat for the continent.

UN Deputy Secretary-General Amina Mohammed interacts with Sophia the robot at the “The Future of Everything – Sustainable Development in the Age of Rapid Technological Change” meeting.

© United Nations/Kensuke Matsue
UN Deputy Secretary-General Amina Mohammed interacts with Sophia the robot at the “The Future of Everything – Sustainable Development in the Age of Rapid Technological Change” meeting.

 

UN News: Do you think that the UN’s new AI advisory group is going to be a platform that will allow you to put these problems on the table?

Seydina Moussa Ndiaye: Yes, absolutely. We’ve started our work, and it’s really very open. These are high-level people who understand international issues well, and there are no taboo subjects.

It’s important that the voice of Africa is represented in the group. International scientific cooperation will be strengthened and not limited to the major powers. At the international level, it includes everyone and also helps the least developed countries.

Currently, there is a real gap, and if this is not resolved, we risk increasing inequalities.

Source: UN, 2nd January 2024

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Economic review: 2024 and its key challenges [Business Africa]

After a tumultuous 2023 for African economies, 2024 is shaping up to be equally challenging.

2024: New Year, New Economic Challenges

The economic pace in Africa, slowed by the Covid-19 crisis and impacted by the consequences of the Ukrainian conflict, has been tested throughout 2023. As the new year approaches, the almost endemic inflation raises questions about its sustainability, prompting reflection on sectors deserving investment priority.

Rabah Arezki, economic expert and former vice president of the African Development Bank, sheds light on the challenges of 2024 in an Exclusive Interview with Business Africa.

Record US-Africa Trade in 2023

A review of US-Africa collaboration in 2023: a memorable chapter with the ratification of over 550 trade and investment agreements.

As the African population continues to grow, and its economic potential expands, the United States has shown a strong willingness to strengthen ties with the continent last year. More details with American analyst Calvin Dark.

In Search of Energy Self-Sufficiency: Challenges in Rural Communities in Congo

In the Republic of Congo, despite the proximity of pipelines, power plants, and high-tension lines, the electricity deficit persists in villages in the oil-rich region of Pointe-Noire, resulting in losses for local businesses. A report by our correspondent Cédric Lyonnel Sehossolo.

Source:  Africanews, 4th January 2024

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Oil prices edge lower with investors cautious ahead of U.S. data

Jan 3 (Reuters) – Oil prices dipped slightly on Wednesday after sharp moves earlier in the week, with investors cautious about the U.S. economy amid supply disruptions from persistent tensions in the Red Sea.

Brent crude fell 39 cents to $75.50 a barrel by 1056 GMT, while U.S. West Texas Intermediate crude futures slipped 51 cents to $69.87 a barrel.

Prices had climbed around $2 earlier in the week following attacks on vessels in the Red Sea by Houthi rebels. On Tuesday they fired two anti-ship ballistic missiles into the Southern Red Sea, though no damage was reported.

A wider conflict could close crucial waterways for oil transportation and disrupt trade flows.
“Although the supply of oil has not been affected, as reflected in yesterday’s oil price sell-off, the nervousness is conspicuous,” said Tamas Varga of oil broker PVM.

Both benchmarks ended Tuesday more than 1% down, with optimism about early and aggressive U.S. interest rate cuts also ebbing ahead of the release of Federal Reserve meeting minutes and jobs data on Wednesday.

“The market bade farewell to 2023 with a considerable liquidation of length and persisting anxiety about the geopolitical outlook failed to draw buyers back to the fore as the new year has kicked off,” added Varga.

Israeli forces intensified their bombing of the Gaza Strip on Wednesday, after the war stretched into Lebanon with the killing in Beirut of Hamas’ deputy leader.

Meanwhile, expectations of ample oil supply in the first half of 2024 have kept a lid on prices ahead of OPEC+ plans to hold a meeting of its Joint Ministerial Monitoring Committee (JMMC) in early February.

An exact date has not been decided, three sources from the alliance told Reuters.

The decision to hold the meeting in early February suggests OPEC+ is possibly growing uneasy over currently weak oil market conditions, despite voluntary cuts of 2.2 million barrels a day for the first quarter agreed in November, OANDA’s senior market analyst Kevin Wong said.

“WTI oil is likely to trade sideways in the short term between $68.90 and $72.30 a barrel (close to the downward-sloping 20-day moving average),” he added.

Ahead of weekly U.S. crude and product inventory reports, analysts polled by Reuters expected crude stockpiles fell last week, while distillate and gasoline stocks likely rose.

Reporting by Natalie Grover, Trixie Yap and Laura Sanicola; editing by Jamie Freed and Jason Neely.

Source: Reuters, 3rd Januar 2024

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