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UK ‘ll Use Aid Budget to Boost Trade in Africa, Says May

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Theresa May
  • UK ‘ll Use Aid Budget to Boost Trade in Africa, Says May

Britain will use its international aid budget to boost its interests and deepen trade ties with Africa, Prime Minister Theresa May said yesterday.

She is due in Nigeria today to meet with President Muhammadu Buhari and to visist Lagos before leaving for Kenya on the last leg of her three-nation African tour.

Speaking in Cape Town yesterday, Mrs May said she wanted Britain to become the biggest investor in Africa out of the Group of Seven nations, overtaking the united States by using the aid budget to help British companies invest on the continent.

The government has held out the prospect of increased trade with non-European Union countries as one of the major selling points of Brexit as it prepares to leave the bloc, currently its biggest trading partner, in March next year.

In April, Britain hosted a meeting of Commonwealth countries, including South Africa, Kenya and Nigeria, seeking to reinvigorate the network of mostly former colonies and drum up new trade amongst its members.

May recommitted to maintaining the overall British aid budget at 0.7 per cent of economic output but said she would use it in a way that helped Britain.

“I am unashamed about the need to ensure that our aid programme works for the UK,” May said.

“Today I am committing that our development spending will not only combat extreme poverty, but at the same time tackle global challenges and support our own national interest.”

Britain’s overseas aid last year was 13.9 billion pounds (18 billion dollars).

May, who was accompanied by a delegation of British business executives, also said Britain would work with African states to tackle insecurity and migration by creating jobs.

“It is in the world’s interest to see that those jobs are created, to tackle the causes and symptoms of extremism and instability, to deal with migration flows and to encourage clean growth,” May said.

According to the UN Conference on Trade and Development, British direct investment in Africa was 43 billion pounds ($55.5 billion) in 2016, compared to 44 billion pounds (56.7 billion dollars) from the U. S.

Investment from France, which maintains close ties with its former colonies in West Africa, stood at 38 billion pounds ($49 billion) and from China, rapidly becoming a major player in Africa, 31 billion pounds (40 billion).

Mrs May said 87 million Nigerians were living below the poverty line of $1 and 90 cents per day.

She said: “Much of Nigeria is thriving, with many individuals enjoying the fruits of a resurgent economy, yet 87 million Nigerians live below $1 and 90 cents a day, making it home to more very poor people than any other nation in the world.”

The Prime Minister noted that achieving inclusive growth was a major challenge across the world.

She stressed that Africa needs to create 50,000 new jobs per day to keep employment rate at its current levels till 2035.

”Today I am committing that our development spending will not only combat extreme poverty but at the same time tackle global challenges and support our own national interest.

“It is in the world’s interest to see that those jobs are created, to tackle the causes and symptoms of extremism and instability, to deal with migration flows and to encourage clean growth,” she added.

The UK’s historical relationship with many African countries still counts for something, but, as Prime Minister Theresa May will find on her trip to the continent, the UK now vies for attention with larger economies offering greater riches.

The continent’s leaders need to decide who to prioritise: an ambitious but friendly China, the huge European Union bloc, the potential riches of the United States, or the historically-linked United Kingdom.

The prime minister’s trip comes a week before the huge Forum on China-Africa Cooperation in Beijing. Dozens of African heads of state are expected there and China may offer new trade and finance deals. Mrs May’s trip seems rather low key in comparison.

Yesterday, Mrs May flew into Cape Town where she met young people, before delivering a keynote speech on trade and how UK private sector investment could be brought into Africa.

After a bilateral meeting with South African President Cyril Ramaphosa, she visited Robben Island, where Nelson Mandela was imprisoned for 18 years.

She had a guided tour and was handed a key to open the cell Mr Mandela was imprisoned in, before writing in the guestbook: “His legacy lives on in the hopes and dreams of young people here in South Africa and around the world.”

Today, Mrs May wil meet President Buhari in Abuja before meeting victims of modern slavery in Lagos.

She will leave for Kenya for a meeting with President Uhuru Kenyatta, visit British troops and a business school before her Africvan trip is rounded off with a state dinner hosted by Mr Kenyatta.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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