Major International Business Headlines Brief::: 15 January 2025

Wed Jan 15 13:19:23 CAT 2025

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Major International Business Headlines Brief:::  15 January 2025 

 <mailto:info at bulls.co.zw> 

ü  South African Rescue Operation Brings Illegal Miners, Bodies, to Surface

ü  Sudan: Drone Strikes Hit Dam Causing Power Cuts Across Northern Sudan

ü  Uganda Moves to Start Storing Some of Its Gold Reserves in Local Vaults

ü  Djibouti: Ethiopia-Djibouti Railway Achieves First Profit Milestone Since Launch, Says CEO

ü  Kenya: Agriculture Is Boring, I Will Make It Cool for the Youth - CS Nominee Kagwe

ü  Gambia: Global Hardwood Demand Cuts Deep Into the Gambia's Revenue

ü  Liberia: Mines Admit Huge Revenue Loss to Illegal Miners

ü  Kenya to Grow Steadily Despite Economic Shocks, Cytonn

ü  Morocco: Economic Growth in Morocco Reaches 3 Percent in Q4-2024

ü  Africa: AfDB, World Bank, AU to Host Africa Energy Summit in Tanzania

ü  Liberia: LEC to Reduce Power Outage

ü  Mali: Barrick Gold Halts Operations in Mali After Government Gold Seizure

ü  Benin Eyes $750m Eurobond Amid Tightening Market Conditions

ü  US markets watchdog sues Musk over Twitter stake disclosure

ü  UK inflation unexpectedly dips to 2.5% in December

ü  Meta cuts 5% of jobs to lose 'lowest performers'

 <mailto:info at bulls.co.zw> 

South African Rescue Operation Brings Illegal Miners, Bodies, to Surface

Johannesburg — Rescue operations were underway at a gold mine in South Africa's North West province where hundreds of illegal miners have been underground for months.

More than 50 bodies were brought to the surface at the mine, police confirmed on Tuesday, as operations to rescue those still trapped underground continued. More than 100 people were brought up alive.

The illegal miners, known in South Africa as "zama zamas," or "those who take a chance," have been down the unused mine shaft for more than two months, after police launched an operation to crack down on the illegal activity.

At first, authorities said the miners were refusing to resurface to avoid arrest, but civil society groups say they are unable to get back to the surface as they are too weak from starvation.

A court last week ordered the government to launch a rescue operation, which started Monday. But Mzukisi Jam, an activist who has been involved in rescue operations, said it was too little too late.

"Our volunteers confirmed with us yesterday that there are more than 400 live illegal miners who are still trapped, and our own volunteers confirmed -- who went down there -- that there are more than 100 dead bodies," Jam said.

Police have not confirmed how many miners, living or dead, remain trapped. But Jam said the tragedy could have been prevented.

"We literally begged the government to say, 'Could you please just save them? Take them and put them to the surface?' Then, you can further process them in terms of [the] criminality you're saying they've committed."

But the police minister and minister of mineral resources and energy, who visited the rescue site on Tuesday, defended the government's actions.

"I've not changed my views that illegal mining is a criminal activity," said Gwede Mantashe, mineral resources minister. Mantashe said illegal mining was an "attack on the economy," with the illicit precious metal trade estimated at over $3 billion in 2024.

"While there's a criminal activity, there's a crime scene. ... It should be intensifying the fight against illegal mining," Mantashe said.

But for Zinzi Tom, whose 26-year-old brother is still down the mine, all that matters is that he comes out alive.

"They told us that he's not in good condition -- the guy who was with him was saying that he last saw him two weeks ago. It's a very sad moment, but one thing that I told myself is that I pray to God to give me strength," Tom said. "I have to make sure that he's OK, and pray to God."

Illegal miners like her brother are forced to eke out a dangerous living underground because of high unemployment, she said.

Some are South African, but many others are from neighboring countries like Lesotho and Mozambique.

Experts say that while the actual zama zamas taking the risks make little money, the criminal syndicates who run illegal operations are getting rich.

The rescue operation is expected to take 10 days.

VOA.

Sudan: Drone Strikes Hit Dam Causing Power Cuts Across Northern Sudan

Merowe / Atbara / Port Sudan — Drone attacks on the hydroelectric Merowe Dam in Sudan's Northern State yesterday, have damaged power transformers for the second time in a week, leaving the surrounding areas without electricity. The Sudanese Armed Forces accused the paramilitary Rapid Support Forces (RSF) of targeting the dam, calling it part of a campaign to cripple vital infrastructure.

Videos shared online show fires at the dam's conversion plant, a key hub for Sudan's national grid. Power outages have affected cities including Merowe, Atbara, and Port Sudan, paralysing markets and threatening essential services.

Residents report widespread disruption, with power cuts starting in the early morning. An engineer at the dam said damage to reactors has severed transmission lines, warning repairs could take weeks as replacement parts must be imported.

The RSF has not commented on the incident, though it has previously denied involvement in similar attacks.

Activists and legal groups condemned the strikes, calling them a violation of international law, which prohibits targeting civilian infrastructure.

The Merowe Dam, a critical source of power and water regulation, generates 1,250 megawatts and supports agriculture.

Its strategic location has made it a repeated target in Sudan's ongoing conflict, further straining essential services and deepening the country's humanitarian crisis.

Dabanga.

Uganda Moves to Start Storing Some of Its Gold Reserves in Local Vaults

Government has said it has started a process that will see some of the country's gold reserves stored in local vaults.

The State Minister for Foreign Affairs, Henry Okello Oryem said on Tuesday that this will be finalized soon.

"We are now in the process of studying, and a paper is being developed for Bank of Uganda to start procuring gold so that we have gold reserves in this country and not only gold reserves abroad. We have about US$4 Million of foreign reserves vis-as-vie our GDP. We stand the risk of United States imposing sanctions of freezing all that money and we are finished as a country," said Oryem.

He was speaking in parliament.

Oryem also defended the move by Bank of Uganda to start purchasing gold from local miners, saying it is intended to shield Uganda from threats from United States in case the nation unceremoniously freezes Uganda's gold reserves.

Bank of Uganda last year announced it had started buying gold from the local market to beef up its foreign reserves.

"The BOU, in consultation with relevant key stakeholders, has initiated a Domestic Gold Purchase Program with the objectives of building the country's foreign reserves and minimizing risks on reserves investments," BoU said in the State of the Economy report for June 2024.

"The gold purchase program will help in accumulating foreign currency reserves and address the associated risks in the international financial markets."

The Central Bank also noted that by purchasing gold directly from the artisanal miners, it would also be supporting the livelihoods of artisanal and small-scale miners, "and this has positive spill-over effects on other sectors of the economy in line with the Bank's mission to support socio-economic transformation."

BoU recently introduced stringent guidelines for purchasing gold from the local market that it said aimed at safeguarding the integrity of its gold acquisition program.

The initiative is part of the Central Bank's broader strategy to boost foreign reserves, diversify risks, and reduce reliance on traditional foreign currency reserves.

In a presentation to Parliament's Committee of Commissions, Statutory Authorities, and State Enterprises (COSASE), BoU outlined the guidelines, which emphasize direct sourcing from artisanal, small, medium, and large-scale miners.

The approach aims to ensure traceability and authenticity, avoiding the inclusion of gold from other nations. A pre-qualification process will also be instituted for gold suppliers and refineries to meet quality and purity standards.

BoU's Deputy Governor, Michael Atingi-Ego, highlighted the significance of gold as a stable asset during global economic instability.

"Gold's liquidity, safety, and historical performance as a store of value make it a vital reserve asset. By diversifying Uganda's reserves, we enhance financial resilience," he said.

Nile Post.

Djibouti: Ethiopia-Djibouti Railway Achieves First Profit Milestone Since Launch, Says CEO

Takele Uma, CEO of Ethiopia-Djibouti Railway S.C., announced that for the first time since the company's operational launch, it achieved profitability in the last quarter of 2024.

The announcement followed a comprehensive evaluation of the 2024 performance of the Ethio-Djibouti railway, conducted on 14 January, 2025.

"This achievement sets the stage for our upcoming three-year strategic plan aimed at transforming the company into a profitable venture," Takele stated on social media. "With a solid foundation of profitability now established, we are well-positioned to embark on a journey towards even greater successes in the future."

This development comes five months after Takele pledged to transform the company into a profitable entity within three years. "A three-year strategic plan and a new organizational framework have been developed to drive the necessary changes and achieve profitability," he added.

In August 2024, Takele voiced concerns about the railway's current state, revealing that only 15 out of 32 freight locomotives were operational. This shortfall has significantly reduced the annual freight carrying capacity. "The capacity should reach 6.3 million tons per year. Instead, we are currently operating at only 2.4 million tons per year," the CEO noted, representing a mere 38% of its full potential.

Spanning over 750 kilometers and connecting Addis Ababa to the port of Djibouti, the railway project is a joint venture between Ethiopia, Djibouti, and China. With a total investment of $4 billion, the project was primarily financed by China Exim Bank, which provided 70% of the funding in the form of credit, while the Ethiopian and Djiboutian governments covered the remaining 30%.

The China Railway Construction Corporation (CRCC) managed the railway's operations from its launch in 2018 until May 2024, when management responsibilities were transferred to the Ethiopian and Djiboutian governments.

In September 2024, the Ethiopia-Djibouti Railway announced the commencement of its first livestock exports by rail.

Addis Standard

Kenya: Agriculture Is Boring, I Will Make It Cool for the Youth - CS Nominee Kagwe

Nairobi — Agriculture Cabinet Secretary nominee Mutahi Kagwe has emphasized the need to centralize the agriculture sector to maximize farmers' profits and attract the younger generation to invest in it.

Appearing before the National Assembly Committee on Appointments, Kagwe highlighted the sector's declining fortunes, coupled with outdated operational methods, as key factors discouraging youth from embracing agriculture.

"Agriculture, for the youth, must be exciting. As it stands, it's too ordinary and boring. Youth will not engage in the sector the way it is structured today. It needs to be something more exciting, involving technology and new ways of doing things," Kagwe stated.

Responding to a question from National Assembly Deputy Speaker Gladys Shollei, who noted that the younger generation has avoided the agriculture sector despite it being touted as the backbone of the economy, Kagwe pointed out that profitability is the main incentive.

"The youth will only venture into agriculture if it becomes profitable. To achieve this, we must take the necessary steps to make agriculture responsive to profit-making," he said.

The Agriculture nominee told the committee, chaired by National Assembly Speaker Moses Wetangula, that employing advanced technology, including artificial intelligence (AI) and fintech, would transform the sector and incentivize key players.

"The future of agriculture lies in technology. AI, for example, will play a crucial role in the sector's future. The question is whether we are adequately educating our future farmers to deal with these advancements," said Kagwe.

The former Health Cabinet Secretary emphasized the urgency of involving youth in agricultural extension services as part of capacity-building efforts to make the sector attractive to younger generations.

Kagwe also outlined plans to streamline access to land, a critical agricultural asset, by leasing government land and fostering public-private partnerships.

"Many young people don't have access to land. We need to think broadly about how to make land available. There is a lot of idle land owned by organizations like the Agricultural Development Corporation (ADC) and private sector entities that can be utilized," he asserted.

Capital FM.

Gambia: Global Hardwood Demand Cuts Deep Into the Gambia's Revenue

Laws and policies against illicit logging exist, but sustainable solutions should also consider the many benefits of ecotourism.

Illegal logging in Africa costs the continent up to US$17 billion annually. A high global demand for African hardwood fuels this environmental crime. By value and by volume, rosewood is the most trafficked wildlife product worldwide.

Africa's share of illegal rosewood exports to China surged from 40% in 2008 to 90% in 2018, says the United Nations (UN) Office on Drugs and Crime. In 2022, an Environmental Investigation Agency analysis revealed that over three million tonnes of rosewood, valued at more than US$2 billion, were illicitly traded between West Africa and China over five years.

The Gambia, a small West African nation known for its rich biodiversity, is severely impacted by this trade. Even though it ratified the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in August 1977, most of the 1.6 million rosewood trees exported from The Gambia between 2012 and 2020 violated the convention.

A former Senegalese rosewood trafficker, now a state forest guard, who requested anonymity, said the trade operated inside a clandestine network in The Gambia and Senegal. Locals fell trees and sell the logs to dealers, who bribe forestry officials to transport the illegally cut logs along backroads and through forests to the country's ports. Traders in Senegal and The Gambia then smuggle the wood in mislabelled containers to China.

The Gambia's border with Senegal is porous, with limited checks on the flow of illegally sourced timber. Alleged corruption involving government officials weakens enforcement of regulations, limiting the number of prosecutions.

For over 40 years, Senegal's Casamance region - a strip south of The Gambia - has been the primary source of illegally traded rosewood. The region has been embroiled in an insurgency between the separatist Movement of Democratic Forces of Casamance and Senegal's government. The separatists rely on the illicit rosewood trade to fund their insurgency

The Gambia and Senegal's Casamance regionSource: ISS

Political elitism has also played a part in this illegal logging. During Yahya Jammeh's rule from 1996 to 2017, The Gambia's wood trade, especially with China, and trafficking from the Senegal side of the Casamance reportedly surged to its highest levels. TRIAL International accused Jammeh and some of his business partners of exploiting the country's timber resources and directly funding the Casamance insurgency through his company, Westwood Gambia.

>From 2014-17, Westwood was the sole timber company licensed for exports and played a significant role in the illegal rosewood trade. In 2019, a United States Justice Department investigation found that Jammeh had misappropriated almost US$1 billion from public funds, including revenue from illegal timber.

In March 2022, CITES banned felling, transporting and exporting Pterocarpus erinaceus (Senegal rosewood) in all African countries where the species was endemic. The Gambia's government implemented a national ban that year.

However, Gambian forest guards say traffickers continue to collaborate with Chinese businesspeople and local community members, using back routes to smuggle the timber out of the Casamance and The Gambia.

One said that although a crackdown in The Gambia made it harder to transport wood to the ports, traffickers colluded with officials to facilitate exports. Poverty and scant economic opportunities in rural areas fuel illegal logging and trafficking, with small operators felling trees on farmlands and in protected forests to sell to dealers.

The Gambia recognises the scale of the problem and the impact on its environment, economy and social fabric. In February 2017, President Adama Barrow permanently revoked all timber permits and banned timber exports. The 2018 Forest Act prohibited the felling and export of several species and criminalised timber export from The Gambia without proper authorisation.

But bans alone won't stem the trade. The Gambia is also helping the UN Food and Agriculture Organization to improve its capacity to monitor illegal logging.

The country's 2022 Agroforestry Strategy doesn't directly address illegal logging, but aims to develop a foundation of natural resources strong enough to endure climate change and support community wellbeing, says Senior Forest Ranger Alfred Mendy.

In contrast, The Gambia's National Forest Action Plan - in effect since 2018 - tackles the problem head on. The plan aims to ensure that timber is legally harvested and traded and includes strict regulations for logging permits, tracking timber's origin and compliance with sustainable forestry practices. But the results have not been as robust as intended.

Forest Ranger Ibrahima Sow says The Gambia collaborates with Senegal to deal with the illegal trade. In 2018, Barrow and Macky Sall, Senegal's then president, issued a joint declaration committing to intensify joint patrols, establish an independent observatory on border practices, exchange information on timber exports, identify traffickers and bring them to justice. But again, the outcomes of this agreement aren't clear.

Limited financial and technological resources hinder The Gambia's ability to monitor and control illegal logging. The government also needs financial intelligence to track the profits from the illicit trade, and digital traceability systems to disrupt timber laundering.

The Gambia's ratification of CITES requires the government to publish information on timber permits and logging quotas, which has not happened. Doing so would show its commitment to establishing a more accountable forestry sector.

Ecotourism, agroforestry and sustainable agriculture could create sustainable livelihoods for local communities that depend on forests. The UN Food and Agriculture Organization has offered technical support to various countries to establish ecotourism initiatives rooted in sustainable forest management.

Ecotourism can protect endangered forests by balancing conservation and tourism. The Gambia's biodiversity offers potential for nature-based tourism, engaging local communities as eco-guides, lodge operators or artisans.

This approach not only supports livelihoods but generates revenue for reinvesting in conservation, fostering both environmental protection and economic growth.

ISS

Liberia: Mines Admit Huge Revenue Loss to Illegal Miners

The Inspectorate Division at the Ministry of Mines and Energy has lamented huge losses in revenues to illicit mining in Liberia.

Liberia's Mines and Energy Inspectorate Division says Liberia is losing huge revenues to illegal and illicit miners.

In an interview over the weekend, the Inspectorate Division told journalists that this is depleting mining resources.

However, the Inspectorate Division has assured Liberians of a robust and transparent inspection to address the situation.

The Inspectorate Division said this is intended to ensure a full-scale implementation of Liberia's Minerals and Mining Law and to ensure that Liberians benefit from the country's resources.

Mr. Agatius B. Coker, Inspector-General of the Ministry of Mines and Energy, said that the Inspectorate Division remains unbending in implementing the law.

He stated that the Division will not relent in insisting on the legitimacy of every miner and those with such business aspirations.

He detailed that the ministry's fiduciary responsibility to regulate all mining activities in the country and hold miners by the law is one of the surest ways the national government can generate revenues to support development priorities.

Mr. Coker was responding to the latest inspection works being done across the country by the Ministry's Inspectors assigned to the six mining districts of Liberia.

Before the just-ended festive season celebrations, some unapproved mining equipment were seized from unlicensed individuals.

They were caught carrying out illicit activities in towns and villages without regard for the sector's laws and regulations.

In stronger terms, Mr. Coker condemned such unpatriotic acts, saying the current administration of the Ministry is committed to discontinuing.

Montserrado County's rural towns and Youth Camp, Number-Seven in District #1, have experienced confiscation of contraband mining equipment.

The equipment was confiscated through robust inspection operations.

Persons believed to be implicated in those unlawful practices are being pursued to face attending penalties for their actions as the law provides.

Inspector-General Coker then commended the Minister of Mines and Energy, Wilmot Paye, and his team for a 'high level' of administrative will and technical support towards the functional capacities of the Inspectorate Division.

With such good leadership shown by Minister Paye, Mr. Coker expressed no doubts in the Inspectors' resolve to get the job done.

Minister Paye has not minced his words against unacceptable mining practices in his public statements.

To tackle those bad practices, the Minister has spoken about making needed working tools and motorbikes available and establishing county offices to enhance field operations.

Reports say the Ministry is getting closer to actualizing this ambitious plan, which is also seeking to make the Ministry's presence in mining locations more visible.

Another report says the Ministry of Mines and Energy (MME) could achieve this very important plan when the 2025 fiscal budget of the Government becomes operationalized.

New Dawn.

Kenya to Grow Steadily Despite Economic Shocks, Cytonn

Nairobi — Kenya's economy is expected to experience moderate growth in 2025, according to Cytonn Investment's latest market outlook.

The firm has forecasted a GDP growth rate of between 5 percent and 5.4 percent, with key sectors such as agriculture, services, and tourism anticipated to drive the expansion.

The report highlights that the agricultural sector, in particular, will play a pivotal role in boosting economic output.

A rebound in business activity across industries, especially in information technology and accommodation services, is also expected to provide a substantial contribution.

The growth in these sectors is anticipated to be bolstered by a recovery in the tourism industry, which will continue to benefit from the country's appeal as a travel destination.

However, Cytonn remains cautious about potential headwinds.

The report flags concerns over Kenya's mounting public debt and the possibility of inflationary pressures, which could pose risks to the broader economic environment.

"The key downside to this growth shall be the high risk of debt distress and a possible uptick in inflationary pressures," read the report in part.

The firm has noted the possibility of a rise in inflation, with the annual average expected to reach 5.3 percent, slightly higher than 2024's rate of 4.5 percent.

While the inflation rate is expected to remain within the government's target range of 2.5 percent to 7.5 percent, the impact of rising inflation remains a key risk factor.

Last year, Kenya's annual inflation rate scaled up in two successive months, with December recording 3 percent, up from 2.8 percent in November.

It, however, eased at the lower end of the central bank's target range of 2.5 percent to 7.5 percent.

The scale-up was majorly driven by high food prices as well as increased transport costs in defiance of a steadying shilling.

Capital FM.

Morocco: Economic Growth in Morocco Reaches 3 Percent in Q4-2024

Rabat — Morocco's national economy progressed by 3% in the fourth quarter of 2024, in annual variation, following a 4.3% growth in the third quarter, according to Morocco's High Commission for Planning (HCP).

This moderate growth mainly reflects the return of the secondary and tertiary sectors to more moderate growth rates, in the wake of the readjustment in global demand, explains the HCP in its recent economic outlook.

This deceleration is driven by non-agricultural activities, whose added value rose by 3.7%, against a backdrop of a further 5.3% decline in agricultural activity.

The extractive industries posted more moderate growth in the fourth quarter of 2024, although still above their medium-term trend rate. In annual variation, their added value rose by 6.8%, driven by an increase in the production of non-metallic ores, the HCP said.

Continued strong external demand for crude products, particularly phosphate rock with exports up 25%, stimulated a 9.5% rise in market output.

MAP.

Africa: AfDB, World Bank, AU to Host Africa Energy Summit in Tanzania

The African Development Bank Group (AfDB) is set to host the Mission 300 Africa Energy Summit in collaboration with the World Bank Group, the African Union (AU), and the Tanzanian government. The summit will take place in Dar es Salaam, Tanzania, from 27-28 January 2025, and will address Africa's electricity access challenges.

The event will bring together African heads of state, government leaders, private sector stakeholders, development partners, civil society organizations, and academics to advance the continent's electrification agenda. Central to the discussions is the ambitious Mission 300 plan, which aims to provide electricity to 300 million people in Sub-Saharan Africa by 2030.

Launched in April 2024 by the AfDB and the World Bank, the Mission 300 initiative seeks to combine increased infrastructure investments with comprehensive policy reforms across the energy supply chain. With nearly 600 million Africans lacking access to electricity, representing 83 per cent of the global energy deficit, the summit highlights the urgent need for action.

This Day.

Liberia: LEC to Reduce Power Outage

The Liberia Electricity Corporation (LEC) pledges to address persistent power outages and improve electricity reliability under its newly-appointed Interim Managing Director, Thomas Gonkewon.

Addressing a press conference in Monrovia, Mr. Gonkewon outlines a series of initiatives, including an enhanced load management strategy aimed at minimizing outages and ensuring that no community experiences power cuts exceeding eight hours. He emphasizes transparency in load management schedules and strengthening 24-hour customer service to address technical issues promptly.

He reveals that the corporation has revised a tariff proposal initially submitted to the Liberia Electricity Regulatory Commission (LERC) covering January 1, 2025, to December 31, 2027. The revision aims to ensure the tariff is fair and reflects LEC's operational needs while prioritizing customer interests.

Management announces successfully negotiating a new Power Purchase Agreement (PPA) with Côte d'Ivoire Energies (CI-ENERGIES), securing a 50MW energy supply via the CLSG Transmission Line. An additional 20MW of "Extra Energy" has also been procured for flexibility during peak demand periods.

However, Gonkewon cautions that unforeseen technical issues might occasionally lead to load adjustments beyond the corporation's control.

The LEC discloses that three of its four turbines at the Mt. Coffee Hydropower Plant in White Plain, Montserrado County, are operational, while repairs are planned for the fourth turbine, which is temporarily out of service due to insulation failure.

The $5.5 million repair project, funded by the World Bank's LESSAP initiative, has been awarded to SINOHYDRO Corporation Limited. Repairs are slated to begin in March 2025 and conclude by March 2026, restoring the plant's 88MW capacity.

Additionally, construction of a $16 million, 20MWp solar power plant at Mt. Coffee, financed by the World Bank's RESPITE Project, is underway and expected to be completed by October 2025.

The expansion of the Mt. Coffee Hydropower Plant, funded with $62 million from the World Bank, will add two new turbines, increasing capacity by over 50%.

Plans are also in motion for a new hydroelectric dam, SP2, to be constructed upstream of the St. Paul River in Bong County. The project, expected to generate 150-200MW, is currently in the feasibility study phase with an estimated cost of about $700 million.

LEC's management reiterates its commitment to addressing the nation's energy challenges and ensuring a more reliable and sustainable electricity supply for Liberia's future.

The availability of uninterrupted or stable electricity is crucial for vibrant economic activities across the country. Editing by Jonathan Browne

New Dawn.

Mali: Barrick Gold Halts Operations in Mali After Government Gold Seizure

Canadian mining giant Barrick Gold said it will temporarily suspend operations at its Loulo-Gounkoto mining complex in Mali following the government's seizure of approximately three metric tons of gold, valued at $245 million. The gold was transported to the state-owned Banque Malienne de Solidarité in Bamako over the weekend.

The seizure stems from a court order issued last week, with Mali's economy ministry claiming Barrick owes $5.5 billion, a figure significantly higher than previous estimates. The company disputes the claim, citing a long-standing contractual disagreement with the government under new mining rules.

Barrick has filed for arbitration with the International Centre for Settlement of Investment Disputes, further escalating tensions. This dispute adds to previous disruptions, including the detention of Barrick executives and shipment blocks. Jefferies analysts estimate that a prolonged suspension of Loulo-Gounkoto operations could reduce Barrick's earnings before interest, tax, and amortization (EBITDA) by 11% in 2025.

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Key Takeaways

The seizure of Barrick's gold highlights the growing trend of resource-rich nations like Mali renegotiating mining agreements to capture a larger share of revenues. This comes as gold prices hit record highs, increasing pressure on foreign operators to revise terms. Barrick, which owns 80% of the Loulo-Gounkoto complex, has paid $85 million to Mali in October but denies owing the billions demanded by the government. The company's challenges mirror similar renegotiation efforts across Mali, Burkina Faso, and Niger, signaling a shift in how African nations approach mining contracts. The suspension could exacerbate Mali's economic instability while raising risks for foreign investors. Barrick's arbitration proceedings may set a precedent for disputes in the region, with broader implications for the global mining industry.

Daba Finance.

Benin Eyes $750m Eurobond Amid Tightening Market Conditions

Benin is preparing to issue $750 million in Eurobonds, aiming to secure external financing as yields near levels that previously stalled African debt sales

he bond, expected to have a 16-year maturity and a 15-year weighted average life, could be priced around 8%

The government has enlisted Citigroup Inc., J.P. Morgan Chase & Co., and Societe Generale SA to arrange investor meetings, starting January 8

Benin is preparing to issue $750 million in Eurobonds, aiming to secure external financing as yields near levels that previously stalled African debt sales. The bond, expected to have a 16-year maturity and a 15-year weighted average life, could be priced around 8%, with Benin's 2038 dollar bonds recently trading at 8.76%.

The government has enlisted Citigroup Inc., J.P. Morgan Chase & Co., and Societe Generale SA to arrange investor meetings, starting January 8, virtually and in-person in London. The sale comes amid strong emerging-market bond issuance, with $26 billion sold globally in the first week of 2025.

Benin's Finance Ministry says the timing depends on market conditions, while officials seek to capitalize on investor appetite for African issuers. Alongside the Eurobond, Benin is offering a €250 million tender for its euro-denominated bonds due 2032.

Benin's push to tap Eurobond markets reflects its urgent need for external financing amid political and economic uncertainties. Political instability in neighboring Niger, domestic tensions ahead of the 2026 elections, and spillover from Islamist insurgency pose risks. While S&P upgraded Benin's foreign-currency debt outlook to positive in October, the government remains reliant on concessional funds like those from the IMF and commercial loans. The IMF agreement to provide $95 million further strengthens its financing options. The sale's success will depend on investor confidence in Benin's ability to manage rising risks, diversify funding sources, and maintain debt sustainability as global borrowing conditions tighten.

Daba Finance.

US markets watchdog sues Musk over Twitter stake disclosure

The US markets watchdog has filed a lawsuit against Elon Musk alleging he failed to disclose that he had amassed a stake in Twitter, allowing him to buy shares at "artificially low prices."

The Securities and Exchange Commission (SEC) lawsuit alleges that the multi-billionaire Tesla boss saved $150m (£123m) in share purchases as a result.

According to SEC rules, investors whose holdings surpass 5% have 10 days to report that they have crossed that threshold. Musk did so 21 days after the purchase, the filing says.

In a social media post, Musk called the SEC a "totally broken organisation."

He also accused the regulator of wasting its time when "there are so many actual crimes that go unpunished."

"Musk's violation resulted in substantial economic harm to investors," the SEC complaint said.

In a statement emailed to BBC News, Musk's lawyer, Alex Spiro, described the lawsuit as a "sham" and "a campaign of harassment" against his client.

Twitter's share price rose by more than 27% after Musk made his share purchase public on 4 April 2022, the SEC said.

Musk ended up buying Twitter for $44bn in October 2022 and has since changed the platform's name to X.

The complaint was submitted by the SEC to a federal court in Washington DC on Tuesday.

The lawsuit also asked the court to order Musk to give up "unjust" profits and pay a fine.

The head of the SEC, Gary Gensler, announced in November that he will resign from his role when Donald Trump returns to the White House on 20 January.

That was after Trump said he planned to sack Mr Gensler on "day one" of his new administration.

Under Mr Gensler's leadership, the SEC clashed with Musk, who is a close ally of the president-elect.

But Musk had run-ins with the SEC long before Mr Gensler took office.

In 2018, the regulator charged Musk with defrauding investors by claiming he had "funding secured" to take Tesla, the electric car company he leads, private.

He later settled the charges, stepping down as chairman of the firm's board and agreeing to accept what was dubbed a Twitter sitter - limits on what he could write on social media about the company.-BBC

UK inflation unexpectedly dips to 2.5% in December

UK inflation unexpectedly dipped in December for the first time in three months as hotel prices fell and tobacco costs eased.

Prices rose 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said.

Despite the rate of price rises remaining above the Bank of England's target, expectations of an interest rates cut next month have grown.

The latest figures also ease pressure on Chancellor Rachel Reeves, who has faced criticism following a fall in the value of the pound and government borrowing costs hitting the highest level for several years.

Borrowing costs fell back to last week's levels and the pound rose slightly to stand at $1.22 as traders reacted to the unexpected inflation drop.

Easing price rises in restaurants, falling hotel prices, and smaller rises in airfares than usual last month helped the overall inflation rate come down, the ONS said.

Prices for tobacco products, which include cigarettes, pouches, vape refills and cigars, also increased at a slower pace.

But Grant Fitzner, chief economist of the ONS, said this was offset by the rising cost of fuel and second-hand cars.

Inflation is much lower than its peak in October 2022 when prices soared, pushing up the cost of living for households and leading to higher interest rates, which has made the cost of loans, credit cards and mortgages, more expensive.

Economists had expected inflation to remain unchanged last month, so the falling rate will be welcome news for Reeves.

The chancellor said there was "still work to be done to help families across the country with the cost of living", but added the government had "taken action to protect working people's payslips from higher taxes" and increased the minimum wage.

But shadow chancellor Mel Stride said economic growth had been "killed stone dead by this government" and called for Reeves to "urgently explain how she will now achieve this".

When will interest rates fall?

Why are prices rising in the UK?

Line chart showing the UK Consumer Price Index annual inflation rate, from November 2015 to December 2024. In the year to November 2015, inflation was 0.1%. It then rose to around 3% in late-2017 before falling back closer to 0% in late-2020. From there, it began to rise sharply, hitting a high of 11.1% in October 2022, and then fell to a low of 1.7% in September 2024. In the year to December 2024, it rose to 2.5%, down from 2.6% the previous month.

In response to turbulence in the markets, it is understood the chancellor will bring forward announcements for Labour's industrial strategy.

Jane Sydenham, investment director at Rathbones Investment Management, said a weak pound tended to signal a "lack of confidence" in the UK economy.

She told the BBC's Today programme investors needed to "see some detail" on the UK's plans. "Are there going to be some tax breaks for certain industries? I think specifics and action is what the market wants to see," she added.

Rising borrowing costs have a knock-on effect on the government's tax and spending plans, because it will have to pay more interest to finance its existing debt. That leaves less to spend on public services and investment.

Darren Jones, chief secretary to the Treasury, told the BBC public services would "have to live within their means".

When pressed on whether that sounded as though cuts were on the way, he replied: "It's just about prioritisation."

'You can only charge so much'

Jonny Gettings, director of operations at Italian restaurant and small hotel Ennio's 

Jonny Gettings, director of operations at Italian restaurant and small hotel Ennio's in Southampton, told the BBC the hospitality business was being hit by rising costs from produce and ingredients, to staff wages and utility bills.

He said the outlook for the business appeared "considerably worse" with increases to the minimum wage and national insurance contributions and reductions to business rates relief on the horizon.

Mr Gettings said cutting staff working hours would be the "last scenario", but said the restaurant could look at shrinking its menu size, review its suppliers, or change opening hours.

"As soon as you increase the prices, you've got another bunch of problems to deal with, because then the worry is the customers will vote with their feet and they'll go and eat elsewhere," he added.

"You can only charge so much for a menu item before the guest is going to say, 'well, hang on a minute'."

'More rate cuts'

Michael Saunders, a former member of the Bank of England's monetary policy committee which sets interest rates, said the latest inflation figure would be "some help" in trying to ease some of the worries over UK interest rates.

"If it stays like this, we will be on route to slightly more interest rate cuts," he told BBC's Today programme.

The Bank of England decided to hold interest rates at 4.75% last month, after policymakers said the UK economy had performed worse than expected, with no growth at all between October and December.

It will next set rates in February, but inflation remains above its 2% target.

However, Ruth Gregory, deputy chief UK economist at Capital Economics said the lower-than-expected inflation figure for December "strengthens the case" for a 0.25 percentage point cut next month. Investors have also increased bets on a cut next month.-BBC

Meta cuts 5% of jobs to lose 'lowest performers'

Meta, the owner of Facebook, Instagram and WhatsApp, is preparing to cut about 5% of its global workforce, as the company looks to drop "low performers faster".

In a memo to staff, boss Mark Zuckerberg said he had made the decision to speed up the firm's regular performance-based cuts in anticipation of an "intense year".

He said the company would "backfill" the roles later in 2025.

The company, which employs about 72,000 people globally, did not say how the cuts would be distributed around the world.

Workers in the US who are affected will know by 10 February, according to Mr Zuckerberg's memo. Those outside the US will be informed "later".

"This is going to be an intense year, and I want to make sure we have the best people on our teams," he wrote.

"I've decided to raise the bar on performance management and move out low performers faster."

The move comes on the heels of other big decisions by Mr Zuckerberg, including moves to end the company's fact-checking and diversity programmes.

Performance-based job cuts are common in corporate America. At Meta, they would normally unfold over the course of a year, Mr Zuckerberg said, but the process is being accelerated this year.

Facebook and Instagram get rid of fact checkers

Nick Clegg leaves Meta ahead of Trump's return as US president

Roughly 3,600 people could be affected this move. They will receive "generous severance", he said.

The last big cuts at Meta came in 2023, when the company cut about 10,000 positions in a cost-cutting drive after Mr Zuckerberg declared it the "year of efficiency". It cut about 11,000 roles in 2022.

Mr Zuckerberg also appears to be overhauling his own public image.

On a recent podcast with Joe Rogan, Mr Zuckerberg said he thought companies needed more "masculine energy" and discussed taking up martial arts, which he said he enjoyed because he felt he could more fully express himself, than in his corporate role.

"When you're running a company, people typically don't wanna see you being like this ruthless person who's just like I'm gonna crush the people I'm competing with," he said. "But when you're fighting, it's like no."

"I think in some ways when people see me competing in the sport they're like oh no, 'That's the real Mark."-BBC

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