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Egypt’s non-oil activity shrinks for 28th month as inflation soars

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A survey has shown that Egypt’s non-oil private sector activity shrank for the 28th straight month in March 2023 as import and currency restrictions and rising inflation continued to hurt business.

The S&P Global Egypt Purchasing Managers’ Index (PMI) edged down to 46.7 in March from 46.9 in February, well below the 50.0 threshold that marks growth in activity.

S&P Global economist, David Owen said “At 46.7, the headline PMI signalled a further solid deterioration in the performance of non-oil companies, driven by steep falls in activity and new business volumes.”

Despite the Egyptian pound’s half-depreciation since March 2022 and the completion of a $3 billion rescue package with the International Monetary Fund in December, Egypt still lacks foreign money.

According to the state statistics agency, headline inflation increased to a five-and-a-half-year high of 31.9% in February from 25.8% in January, while core inflation increased to 40.26%.

The sub-index for purchase prices increased to 64.3 from 63.9, and that for overall input prices increased slightly to 62.8 from 62.7 in February.

“Steep inflationary pressures and a drop in client demand continued to negatively impact non-oil businesses, chiefly through a sharp reduction in new orders,” S&P Global said.

The new orders sub-index fell to 44.3 in March from 44.7 in February, while that for output strengthened to 44.9 from 44.6.

“Output levels fell at a marked rate across the non-oil private sector during March, in part due to ongoing difficulties with accessing key inputs due to import controls and currency restrictions,” S&P Global said.

Inventories and employment levels also decreased, S&P Global economist David Owen said.

The sub-index for future output expectations improved to 54.2 from 52.5 in February, still near an all-time low.

“Despite picking up to a three-month high, the year-ahead outlook for activity was still among the weakest recorded since the series began in early-2012,” S&P wrote.

Africa

Escalating Jihadist Retaliation Claims Over 120 Lives in Burkina Faso

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Escalating Jihadist Retaliation Claims Over 120 Lives in Burkina Faso

Escalating Jihadist Retaliation Claims Over 120 Lives in Burkina Faso

Human Rights Watch (HRW) revealed on Wednesday that jihadist groups in Burkina Faso have intensified attacks on civilians, particularly targeting those accused of collaborating with government forces or refusing to join their ranks.

The conflict, fueled by insurgents linked to al-Qaeda and ISIS, has plagued the West African nation for nearly a decade, spilling over from neighbouring Mali.

Under military leader Ibrahim Traore, Burkina Faso has recruited thousands of civilian volunteers, known as VDPs, to assist in the fight. However, this move has provoked increasingly violent reprisals from jihadist factions, leading to tragic consequences for local communities.

HRW documented seven attacks between February and June, resulting in the deaths of at least 128 civilians.

These assaults, including a massacre in a Catholic church and strikes on displaced persons camps, were attributed to al-Qaeda affiliate Jama’a Nusrat ul-Islam wa al-Muslimin (JNIM) and ISIS-linked Islamic State in the Greater Sahara (ISGS).

Witnesses claimed some attacks were motivated by civilians’ involvement with government forces.

“We are between a rock and a hard place,” a 56-year-old villager lamented, describing the dire situation faced by many.

HRW’s report also highlighted that some villagers were killed after being forced by authorities to return to areas previously overtaken by jihadists.

In response, Burkina Faso’s justice minister dismissed HRW’s claims of slow prosecutions, asserting that human rights violations by insurgents are being investigated.

The junta, which came to power following a coup in 2022, faces growing criticism for its handling of the crisis, with analysts noting a further deterioration in security under Traore’s leadership.

Despite Traore’s promises to restore stability, the conflict shows no signs of abating, with HRW citing the recent massacre in Barsalogho, where hundreds were killed, as one of the deadliest incidents in the country’s history.

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Tunisian court jails opposition leader, bans him from presidential elections

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A Tunisian court sentenced opposition party leader Lotfi Mraihi, a potential presidential election candidate, to eight months in prison on a charge of vote buying, his lawyer said on Friday.

The court also banned Mraihi, leader of the Republican Union Party and one of the most prominent critics of President Kais Saied, from running in presidential elections for life, his lawyer Omar Ismail said.

Mraihi will appeal the sentence, Ismail added.

Opposition parties, many of whose leaders are in prison, have accused Saied’s government of exerting pressure on the judiciary to crack down on his rivals in the 2024 elections and pave the way for him to win a second term.

Elected president in 2019, Saied has not officially announced his candidacy for the vote expected to be held on Oct. 6.

Still, it is widely anticipated that he will seek a second term.

He said last year he would not hand power to what he called non-patriots.

The opposition says fair and credible elections cannot be held unless imprisoned politicians are released and the media can do its job without pressure from the government.

In 2021, Saied dissolved parliament and began ruling by decree in a move the opposition have described as a coup.

Saied said his steps were legal and necessary to end years of rampant corruption among the political elite.

(Reuters/NAN)

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Nigerian, South African Defence Chiefs Unite Against Continental Security Challenges

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Nigerian, South African Defence Chiefs Unite Against Continental Security Challenges

Nigerian, South African Defence Chiefs Unite Against Continental Security Challenges

The Chief of Defence Staff (CDS), Gen. Christopher Musa, has called for stronger ties between the Armed Forces of Nigeria and the South African National Defence Force (SANDF) to tackle the complex security issues facing Africa.

Gen. Musa made this appeal during an official visit to his South African counterpart, Gen. Rudzani Maphwanya, in Pretoria, South Africa. The call for enhanced cooperation was highlighted in a statement released by Brig.-Gen. Tukur Gusau, Acting Director of Defence Information, on Tuesday in Abuja.

“The meeting is a panacea to addressing the multifaceted challenges bedevilling the continent,” Gen. Musa emphasized. He underscored the importance of mutual cooperation and strengthening bilateral ties to combat regional security threats.

During their closed-door meeting, both leaders discussed various strategies to address these challenges, focusing on the exchange of expertise and forging stronger ties for the betterment of the continent.

Gen. Musa was honoured with Cannon Gun Salutes, a mark of high regard, during his visit. Brig.-Gen. Gusau noted the significance of the meeting between the two largest economies and military powers in Africa.

The meeting also saw the presence of SANDF Chiefs of Intelligence, Policy and Plans, International Affairs, and Joint Operations, among other departmental chiefs, highlighting the comprehensive nature of the discussions aimed at enhancing regional security cooperation.

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