Investors are keenly eyeing Wednesday’s release of South Africa’s July inflation figures for insights into the future monetary policy of Africa’s most industrialized economy. Economists surveyed by Reuters predict that the South African Reserve Bank will reduce interest rates for the first time in over two years on September 19.

Data released earlier on Tuesday indicated a 0.4% month-on-month drop in South Africa’s leading indicator for June, which monitors vehicle sales, business confidence, and money supply.

Globally, attention will also be on the U.S. Federal Reserve’s minutes and Chair Jerome Powell’s speech at the Jackson Hole symposium this week, as markets look for clues on potential rate cuts.

As a risk-sensitive currency, the rand is influenced by both global economic trends, such as U.S. monetary policy, and domestic economic indicators. On the stock market, South Africa’s Top-40 index showed little movement, while the benchmark 2030 government bond experienced a slight increase in yield to 9.285%.

Following his victory in March, President Bassirou Diomaye Faye, who ousted the ruling coalition candidate, ordered a comprehensive audit of the oil, gas, and mining sectors. He pledged to revisit and amend agreements with foreign operators if necessary to better serve national interests.

Details of the audit and any subsequent renegotiation plans have not yet been disclosed. Sonko emphasized the government’s commitment to reassessing these agreements to ensure they align with the country’s interests. The commission will be well-resourced and may engage international experts if needed, although the timeline for the review remains unspecified.

This initiative comes on the heels of Senegal’s debut as an oil producer. In June, Australia’s Woodside Energy announced that its Sangomar oil and gas field had begun production. Additionally, gas production is expected to commence by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP.

The drought, which started in early 2024, has hit crop and livestock production, causing food shortages and damaging the wider economies.

Heads of state from the 16-nation Southern African Development Community (SADC) were meeting in Zimbabwe’s capital Harare to discuss regional issues including food security.

Some 68 million people, or 17 percent of the region’s population, are in need of aid, said Elias Magosi, SADC executive secretary.

“The 2024 rainy season has been a challenging one with most parts of the region experiencing negative effects of the El Nino phenomenon characterised by the late onset of rains,” he said.

It is Southern Africa’s worst drought in years, owing to a combination of naturally occurring El Nino – when an abnormal warming of the waters in the eastern Pacific changes world weather patterns – and higher average temperatures produced by greenhouse gas emissions.

Countries including Zimbabwe, Zambia, and Malawi have already declared the hunger crisis a state of disaster, while Lesotho and Namibia have called for humanitarian support.

The region launched an appeal in May for $5.5 billion in humanitarian assistance to support the drought response, but donations have not been forthcoming, said outgoing SADC chair Joao Lourenco, President of Angola.

“The amount mobilised so far is unfortunately below the estimated amounts and I would like to reiterate this appeal to regional and international partners to redouble their efforts… to help our people who have been affected by El Nino,” he told the summit.

The drought is a major talking point at this year’s summit, alongside issues such as the ongoing conflict in eastern Democratic Republic of Congo, which Lourenco said was a source of great concern.

The new directive came five months after Kenyan clearing and forwarding agents moved to court to compel South Sudan authorities to suspend introduction of a second cargo tracking seal.

Now, Juba has directed East African countries to comply with immediate effect.

In a notice issued on August 13, Dr Daniel Kon Ater, the South Sudan Revenue Authority (SSRA) Commissioner for Corporate Services informed all stakeholders in Uganda, Kenya and Tanzania to tag goods destined to their country, alongside the requisite Electronic Cargo Tracking Note (ECTN).

SSRA said all taxpayers, clearing and forwarding agents and transporters, including non-governmental organisations involved in moving cargo destined to and from South Sudan, should attach South Sudan regionally recognised electronic cargo tracking seal.

Nj Ayuk, the chamber’s executive chairman, told Tradeque that by refusing to bankroll Africa’s oil and gas projects, with a direct bearing on the continent’s transitioning from energy poverty, lenders from the global north are engaging in financial apartheid that has nearly crippled the industry.

Mr Ayuk did not discuss their legal strategy, but suggested the lobby was mooting a legal challenge. He said African energy lobbies, governments and project sponsors are working together on a joint lawsuit, whose details “we will update soon.”

A spokesperson for the Total Energies-led East African Crude Oil Pipeline (Eacop) – which several lenders have declined to support – said the AEC had not yet approached the developers to discuss a potential joint lawsuit.

Citing environmental risk and oil-related climate backlash, European and American banks have heeded activist campaigns and declined to finance fossil fuel projects in Africa, the top of which is the Eacop, whose total cost is $5 billion.

A sign displayed on the headrest of a driver’s seat reads, “We, as Nairobi online drivers, wish to notify the public that due to the high cost of living, we will not be able to operate under the current rates of Uber, Faras, and Bolt.”

The sign details new fares that drivers believe are necessary for them to remain operational. They are urging ride-hailing companies to reconsider their pricing, starting with increasing the minimum fare from $1.40 (KES 180) to $2.33 (KES 300).

Dennis Nyariki, deputy chairman of the Organisation of Online Drivers Kenya (OOD), explained, “With a minimum fare of KES 300, our calculations cover a litre of fuel plus an additional $0.78 (KES 100) for the driver’s expenses, such as airtime and maintenance. For trips exceeding KES 300, which cover more than 3 km, it’s fair for the driver to multiply the app’s fare by 1.5.”

The drivers have set new fares for airport and railway station pickups and drop-offs, ranging from $7.75 (KES 1,000) to $38.76 (KES 5,000), which are pricier than a train ticket from Nairobi to Mombasa and nearly half the cost of a flight to the coastal city.

According to an analysis by AA Kenya, a mobility solutions company, incorporating maintenance costs suggests that ride-hailing apps should charge at least $0.26 (KES 33) per kilometer.

Drivers are advocating for fare increases to improve their earnings, partly due to the rising cost of living. However, ride-hailing apps are hesitant to raise prices as they aim to keep fares affordable for price-sensitive customers.

Economic challenges, including job cuts, pay freezes, and high inflation, have led to reduced discretionary spending, impacting leisure travel and potentially decreasing ride frequency.

Customers have reported harassment and even assault from drivers when refusing to pay the unofficial rates. In response, the ride-hailing companies have agreed to meet with drivers’ associations to address these issues.

“We understand and empathize with the concerns raised by drivers. However, we are aware that some drivers have taken independent actions to increase fares, leading to inconsistent pricing for customers. We urge drivers to refrain from setting their own fares until this industry matter is resolved,” Bolt said in a statement to TechCabal.

Bolt also mentioned that they are working on a solution to balance drivers’ economic needs with customer affordability and service quality. Industry negotiations mediated by the Ministry of Transport and the National Transport and Safety Authority (NTSA) are expected.

Uber added, “Requesting additional payment beyond what is displayed on the app violates our Community Guidelines. Actions may be taken, ranging from holding the driver’s account to potentially denying further access to the app.”

Past negotiations on this issue have often been unproductive, leading to frequent driver strikes. While fare pricing is a major concern, drivers are also seeking a role in determining and reviewing trip fares.

If the upcoming meetings fail to resolve the conflict, unions have indicated they will continue to enforce their new rates. This situation underscores a challenging moment where ride-hailing apps, once eager to attract drivers, might consider severing ties with them.

Nicolas Guibert, a director at Mobius, stated, “On August 14, Mobius accepted a bid to acquire 100% of its shares from an undisclosed buyer. Both parties are aiming to finalize the transaction within the next 30 days.”

As a result of the acquisition offer, Mobius has postponed a creditor meeting originally scheduled for Thursday to facilitate the ongoing negotiations.

The potential buyer may be interested in utilizing Mobius’s Nairobi assembly plant either to manufacture their own models or to continue producing Mobius vehicles, which are designed for small and medium-sized enterprises (SMEs) in sectors such as infrastructure, agribusiness, and supply chains operating in remote areas.

On August 9, Business Daily reported that two dealers were exploring the possibility of acquiring the financially troubled car manufacturer, with hopes of revitalizing the brand.

This development follows a visit to the Mobius plant by Hassan Abubakar, Permanent Secretary for Trade and Industry, along with representatives from the Kenya Association of Manufacturers (KAM), to discuss potential rescue strategies.

Mobius’s production facility is equipped to handle vehicle frame fabrication, anti-corrosion treatment, general assembly, painting, quality testing, and final inspection, and also includes a research and development unit.

The company has a distributorship agreement with Chinese automaker BAIC, which played a key role in launching the Mobius III, an upgraded version of its earlier models, Mobius I and Mobius II.

Founded in 2009 by British entrepreneur Joel Jackson while in Kenya, Mobius introduced a cost-effective SUV model in 2014 specifically designed for African roads. The initial model was priced at $10,000 (KES 1.3 million), significantly lower than typical SUV prices in Kenya. The Mobius III was retailing at $43,000, compared to over $65,000 for imported and locally assembled models like the Toyota Land Cruiser Prado, Land Rover Defender, and Jeep Wrangler.

Anthony Mwangi, the chief executive of the Kenya Association of Manufacturers, noted that disruptions in transporting goods from ports to factories or markets have halted many operations. This has led to widespread business closures, causing severe losses as production and retail activities come to a standstill.

Traders are facing financial losses due to closed businesses, while the Nairobi County government is missing out on millions of shillings in parking fees daily.

Since June 18, the country has been experiencing protests led by Gen-Zs, sparked by the controversial Finance Bill 2024, which has since been withdrawn. The youth have criticized the government, leading President William Ruto to dismiss his entire Cabinet and appoint a new one, sworn in on Thursday at State House in Nairobi.

President Ruto’s new Cabinet includes members from the Orange Democratic Party (ODM), led by Raila Odinga, in an effort to quell the ongoing demonstrations. The new Cabinet members from ODM are John Mbadi (National Treasury), Opiyo Wandayi (Energy), Hassan Ali Joho (Mining and Blue Economy), and Wycliffe Oparanya (Co-operatives).

Other towns such as Nakuru, Mombasa, Homa Bay, Migori, Eldoret, and Kisumu, which had previously seen protests, were quiet on Thursday. According to the Kenya Human Rights Commission, over 50 youths have been killed and hundreds injured during the protests.