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Afreximbank Sees $40bn Russia-Africa Trade by 2023

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  • 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.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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