ExxonMobil and Seplat’s deal can be completed this year

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Africa Headlines

• ExxonMobil and Seplat’s deal can be completed this year – According to Reuters, the deal to acquire the Mobil Producing Nigeria assets for US $1.3 billion by Seplat from US ExxonMobil can still be completed this year. The deal had been stuck on regulatory considerations for over a year now. In the report, Gbenga Komolafe, the head of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was quoted as saying, “it (the agency) is optimistic …. that the right things will be done”. Meanwhile, ExxonMobil, in another deal, has agreed to buy the Shale giant Pioneer for US $60 billion. The all-share merger will transform ExxonMobil into a clear leader in oil production in the US with an asset of 16 billion barrels of oil equivalent.

• Ghana’s inflation data – Ghana’s inflation rate fell to a 12-month low, according to data released yesterday. Annual inflation was 38.1% for September compared to 40.1% in August. It was 43.1% in July and 42.5% in June. The inflation trajectory has remained stubborn above the 6% - 10% target range of the government. The current monetary policy rate is 30%, held steady at the last monetary policy decision meeting of the Bank of Ghana, citing lower inflation, stabler exchange rate, and relatively strong economic growth, expected to be around 3% this year. Ghana currently has an IMF three-year programme of US $3 billion on debt restructuring conditionalities.

• Global exports to reach US $30 trillion in 2030 – The 2023 Standard Chartered “the future of trade” report has estimated global exports to reach US $30 trillion by 2030. The growth is still expected to be dominated by Asian economies, led by China and India, rising from the 2020 figure of US $6 trillion to US $11.5 trillion. Africa’s exports, despite the establishment of the Africa Continental Free Trade Area (AfCFTA) is expected to rise from US $260 billion in 2022 to US $540 billion in 2030. For Nigeria, the report sees India, Indonesia, and Mainland China as key opportunity corridors for trade growth, while the opportunities are in Pakistan, Uganda, and USA for Kenya.

  https://av.sc.com/corp-en/content/docs/Future-of-Trade-2021.pdf?time=1679582924

• King Charles to visit Kenya – King Charles will visit Kenya on a State visit October 31 – November 3, according to statement from Buckingham Palace yesterday. The visit will be the first by the king to a commonwealth country since he became king last year. He visited Kenya before in 1971. The king plans to visit the Nairobi National Park and meet with environmental activist Wanjirai Mathai, the daughter of the late Nobel laureate Wangari Maathai. The visit is a precursor and part of Kenya’s 60^th independence anniversary, officially December 12^th .

Global Headlines

• Israel forms government of national unity, poised for a long-drawn war – The Israeli government yesterday formed a government of national unity and established a war management cabinet comprising Prime Minister Benjamin Netanyahu, defence Minister Yoav Gallant and ex defence Minister Benny Gantz, who is also the head of opposition. It comes amidst rapid growing humanitarian crisis in Gaza. The only power plant has run of fuel and death has risen to more than 1,200 and an estimated 263,000 already displaced. Israel has continued its air raid into the fifth day. Meanwhile, the US, Egypt and Israel are engaged in discussions about safe passage for the about 500 – 600 Americans based in Gaza. Meanwhile, most of those abducted by Hamas on Saturday are still in captivity, with Hamas suggesting that those captured will be used as exchange for Hamas imprisoned in Israel and in the US.