Countries fret over prospect of wider Red Sea violence [Business Africa]

Countries fret over prospect of wider Red Sea violence [Business Africa]

The hijackings, missile strikes and drone attacks on ships by Yemen’s Houthi rebels have forced the world’s biggest shipping and logistics companies to suspend shipments through the Red Sea.

The news has prompted trepidation in Africa whose maritime trade transits through the Red sea.

An estimated 12% of global trade flows through Bal al-Mandeb, a narrow strait between Africa and the Arabian peninsula that has become a no-go zone for commercial ships fearing attacks by Houthi rebels.

The waterway is also a crucial passage for energy shipments.

As the threat of escalation looms, worries about damage to global supply chains, already stressed by the pandemic and the war in Ukraine have grown.

Christof Rühl is an internationally renowned economist, specialising in macroeconomics and energy economics. He joins the show to discuss the implications of instability in the Red Sea for global trade.

Angola looks to step up crude output in 2024

Despite a global push to wind down the use of fossil fuels, Angola is going big on oil. The country has issued licenses for new exploration and plans to auction off 55 oil & gas blocks by 2025.

Africa’s second-largest crude oil exporter is also looking to expand its refining capacity. Three new refineries; Cabinda, Soyo and Lobito are being built.

Ethiopia: Default fears after coupon miss

Ethiopia has missed a coupon payment on its $1bn Eurobond maturing in December 2024 sending its creditors into panic mode.

Africa’s second-most populous country is waiting on debt relief sought under the G20’s Common Framework in 2021, and a bailout loans from the International Monetary Fund (IMF).

Credit ratings agency S&P Global Ratings downgraded Ethiopia to “Default” following failure to pay the $33 million coupon.

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