Connect with us

Markets

Afreximbank Sees $40bn Russia-Africa Trade by 2023

Published

on

Institute of Chartered Shipbrokers
  • Afreximbank Sees $40bn Russia-Africa Trade by 2023

The growing Russia-Africa trade relation is expected to get better in the next three years, the Africa Export-Import Bank (Afreximbank) has stated.

The bank predicted that the current $22 billion trade between the African continent and the Russian Federation will surge to $40 billion in the next three years.

Prof. Benedict Oramah, the President, Afreximbank, disclosed this in Moscow during the bank’s annual meeting, the second of such meeting outside Africa.

“The purpose of coming here is to create an opportunity for business relations between Russia and African businessmen and women.

“We expect that this will make it possible for trade to go on, we hope that this will make it possible for investments to go on including infrastructure in Africa.

“We expect that two-way trade between Africa and Russia should grow from the current level of about 22 billion dollars to more than 40 billion in about three years.

“We expect that given what we know to be the expertise of the Russians, that we will see Russian investments in manufacturing, petrochemical, mining, cyber security, medicine and so on.

“This is a new relationship we are trying to develop so these are early days but we know that this will be a fast growing relationship.

“The two way trade between Africa and Russia rose by 70 per cent between 2017 and 2018 and with the kind of attention being paid to trade and investment now, I expect double digit growth in trade in the coming years .’’

Oramah noted that it was the second time Afreximbank would be holding its annual meeting outside the African continent. The first was in China in 2011.

According to him, the first annual meeting in China strengthens trade relation between Chinese entities and African businesses substantially.

Therefore, he said the bank was glad to have been invited by the Russian Government.

“The Russian Federation has made a strategic decision to increase trade and economic relations between Africa, one of the key things they did was to join the Afreximbank shareholding through the Russian Export Center in 2017.

“So, since the past two years there has been an increase in trade and investment activity between Russia and Africa .We will be working very actively with Russian Export Centre to promote the trade.

“And we hope that the annual meetings will provide the opportunity for many of the African businesses to know more about the Russians and for the Russians we are visiting to know more about Africa.

“As experienced when we went to China, we look forward to an increased flow of business following this meeting.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Oil Posts 2% Gain for the Week Despite India Virus Surge

Published

on

Crude Oil - Investors King

Oil prices steadied on Friday and were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India capped prices.

Brent crude futures settled 0.28% higher at $68.28 per barrel and U.S. West Texas Intermediate (WTI) crude advanced 0.29% to $64.90 per barrel.

Both Brent and WTI are on track for second consecutive weekly gains as easing restrictions on movement in the United States and Europe, recovering factory operations and coronavirus vaccinations pave the way for a revival in fuel demand.

In China, data showed export growth accelerated unexpectedly in April while a private survey pointed to strong expansion in service sector activity.

However, crude imports by the world’s biggest buyer fell 0.2% in April from a year earlier to 40.36 million tonnes, or 9.82 million barrels per day (bpd), the lowest since December.

In the United States, the world’s largest oil consumer, jobless claims have dropped, signalling the labour market recovery has entered a new phase as the economy recovers.

The recovery in oil demand, however, has been uneven as surging COVID-19 cases in India reduce fuel consumption in the world’s third-largest oil importer and consumer.

“Brent came within a whisker of breaking past $70 a barrel this week but failed at the final hurdle as demand uncertainty dragged on prices,” said Stephen Brennock at oil brokerage PVM.

The resurgence of COVID-19 in countries such as India, Japan and Thailand is hindering gasoline demand recovery, energy consultancy FGE said in a client note, though some of the lost demand has been offset by countries such as China, where recent Labour Day holiday travel surpassed 2019 levels.

“Gasoline demand in the U.S. and parts of Europe is faring relatively well,” FGE said.

“Further out, we could see demand pick up as lockdowns are eased and pent-up demand is released during the summer driving season.”

Continue Reading

Commodities

Lagos Commodities and Futures Exchange to Commence Gold Trading

Published

on

gold bars

With the admission of Dukia Gold’s diversified financial instruments backed by gold as the underlying asset, Lagos Commodities and Futures Exchange is set to commence gold trading.

According to Dukia Gold, the instruments will be in form of exchange-traded notes, commercial papers and other gold-backed securities, adding that it will enable the company to deepen the commodities market in Nigeria, increase capacity, generate foreign exchange for the Nigerian government to better diversify foreign reserves and create jobs across the metal production value chain.

Tunde Fagbemi, the Chairman, Dukia Gold, disclosed this while addressing journalists at Pre-Listing Media Interactive Session in Lagos on Thursday.

He said, “We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange. The listing shall enable us facilitate our infrastructure development, expand capacity and create fungible products.

“This has potential to shore up Nigeria’s foreign reserve and create an alternative window for preservation of pension funds. A gold-backed security is a hedge against inflation and convenient preservation of capital.”

“As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies. Our refinery will also have multiplier effects on the development of rural areas anywhere it is located,” he added.

Mr Olusegun Akanji, the Divisional Head, Strategy and Business Solutions, Heritage Bank, said the lender had created a buying centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.

Continue Reading

Crude Oil

Oil Nears $70 as Easing Western Lockdowns Boost Summer Demand Outlook

Published

on

Crude oil

Oil prices rose for a third day on Wednesday as easing of lockdowns in the United States and parts of Europe heralded a boost in fuel demand in summer season and offset concerns about the rise of COVID-19 infections in India and Japan.

Brent crude rose 93 cents, or 1.4%, to $69.81 a barrel at 1008 GMT. U.S. West Texas Intermediate (WTI) crude rose 85 cents, or 1.3%, to $66.54 a barrel.

Both contracts hit the highest level since mid-March in intra-day trade.

“A return to $70 oil is edging closer to becoming reality,” said Stephen Brennock of oil broker PVM.

“The jump in oil prices came amid expectations of strong demand as western economies reopen. Indeed, anticipation of a pick-up in fuel and energy usage in the United States and Europe over the summer months is running high,” he said.

Crude prices were also supported by a large fall in U.S. inventories.

The American Petroleum Institute (API) industry group reported crude stockpiles fell by 7.7 million barrels in the week ended April 30, according to two market sources. That was more than triple the drawdown expected by analysts polled by Reuters. Gasoline stockpiles fell by 5.3 million barrels.

Traders are awaiting data from the U.S. Energy Information Administration due at 10:30 a.m. EDT (1430 GMT) on Wednesday to see if official data shows such a large fall.

“If confirmed by the EIA, that would mark the largest weekly fall in the official data since late January,” Commonwealth Bank analyst Vivek Dhar said in a note.

The rise in oil prices to nearly two-month highs has been supported by COVID-19 vaccine rollouts in the United States and Europe.

Euro zone business activity accelerated last month as the bloc’s dominant services industry shrugged off renewed lockdowns and returned to growth.

“The partial lifting of mobility restrictions, the expectation that tourism will return in the near future, and the lure of the psychologically important $70 mark are all likely to have contributed to the price rise,” Commerzbank analyst Eugen Weinberg said.

This has offset a drop in fuel demand in India, the world’s third-largest oil consumer, which is battling a surge in COVID-19 infections.

“However, if we were to eventually see a national lockdown imposed, this would likely hit sentiment,” ING Economics analysts said of the situation in India.

Continue Reading

Trending