- Development: Nigeria, South Africa, Others Need $700bn Yearly
The African Development Bank (AfDB) has revealed that Nigeria, South Africa, Kenya and other African countries need at least $700 billion yearly to achieve Sustainable Development Goals (SDGs).
Speaking at the maiden Africa Investment Forum (AIF) held in Johannesburg, South Africa, the bank said the continent needs between $130 billion to $170 billion annually to address infrastructure deficit.
The Sustainable Development Goals, also known as Global Goals for Sustainable Development, are a collection of 17 global goals of the United Nations, set by the United Nations General Assembly (UNGA) in 2015, which serves as a road map to achieving a better future for all.
The SDG, has a 2030 timeline and addresses social and economic global challenges like; poverty, education, hunger, gender equality, sanitation, global warming, water, social justice, environment, urbanization, health and energy.
Dr Akinwumi Adesina, the President of the AfDA, while addressing delegates at the Forum, said commitments to infrastructure on the continent declined to $62.5 billion in 2016.
Breaking down interests, he said West Africa received $16.3 billion interests, East Africa $13.1 and North Africa $12.9 billion interest.
Speaking on the mining sector, Adesina noted the lean attention being given to the extractives sector, adding: ‘’In 2015-2016, FDIs in Africa were mainly targeted at the services sector (66 per cent) and the manufacturing sector (21 per cent), while the extractives sector only got 11 per cent.”
‘’The major components of capital inflows in Sub-Saharan Africa were FDIs and foreign aid (averagely 3.36 per cent and 3.35 per cent of GDP in 2000 to 2017) while remittances accounted for 2.26 per cent of GDP.’’ he added.
Adesina, who further emphasized on the need for effective regulatory policies, called for cooporation among African regulators to enhance development and bridge gap between Africa and the rest of the world.
Also, speaking at the Forum is Dr Bandar Hajjar, the President of the Islamic Development Bank, urged African governments to void infrastructure gaps, poor governance, instabilities and unfavourable policies, in order to create an enabling environment that will open Africa to the world.
Prof. Benedict Oramah, the President of Africa Export-Import Bank, called on Sub-Saharan Africa to collectively create a market for investors.
Admassu Tadesse, the President of Trade and Development Bank, speaking on the slow decision-making process by governments, suggested that they adopt the strategies of scale up, speed up and synergize.
Again, Acha Leke, the Chairman of Mckinsey Africa, called for action in the areas of infrastructure, industrialisation, agriculture, energy and social welfare.
Africa’s development needs are fertile ground for broad-based collaborations between governments, private sector and multilateral development banks.
Brent Crude Oil Approaches $70 Per Barrel on Friday
Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension
Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.
Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.
Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.
While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.
According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.
“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”
Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.
“The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.
“I do believe we’re headed for a much healthier supply and demand environment” she said.
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.
OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.
Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”
Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.
Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.
Experts have started predicting $75 a barrel by April.
“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”
Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin
Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges
Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.
The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.
The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.
“We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.
Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.
Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.
In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.
The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.
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