Business and Technology
Nigeria Cash Withdrawals Constricted
Nigeria's central bank has imposed restrictions on weekly cash withdrawals to limit the use of cash in a bid to curb counterfeiting and discourage ransom payments to kidnappers.
Under a new policy announced late Tuesday, the Central Bank of Nigeria (CBN) said that weekly cash withdrawals had been slashed to 100,000 naira ($225) from 2.5 million naira daily for individuals.
For businesses, the weekly limit has been cut to 500,000 naira from the current daily limit of three million naira.
The central bank said that withdrawals from cash machines were also included in the new measure, which takes effect on January 9.
"The maximum cash withdrawal per week via automated teller machine shall be 100,000 naira subject to a maximum of 20,000 naira cash withdrawal per day," it said.
Only denominations of 200 naira and less will be loaded into ATMs, it said.
"The maximum cash withdrawal via the point of sale terminal shall be 20,000 naira daily," it added.
"Withdrawals above these limits shall attract processing fees of five percent and 10 percent, respectively," the CBN said.
The announcement of the cash restrictions comes just days after Nigeria launched new banknotes of 200, 500 and 1,000 naira.
The new notes come into use on December 15, but Nigerians have until January 31 to turn in old notes when they will cease to be legal tender.
The central bank warned commercial lenders against violating the new cash limits, which it said were in line with its policy to promote cashless transactions.
The bank has expressed concerns in the past over currency counterfeiting, the volume of money outside the banking system and huge ransom payments to kidnappers and bandits.
Analysts also see the new cash policy as a move by the CBN to discourage vote-buying and financial inducements by politicians ahead of a presidential election in February.
See all News Updates of the Day
Egypt, India Amp Trade Partnership
Egypt and India announced Thursday a "strategic partnership" to increase trade by billions of dollars and strengthen diplomatic ties, as President Abdel Fattah al-Sisi concluded a visit to New Delhi.
President al-Sisi Sisi and Indian Prime Minister Narendra Modi expect annual bilateral trade to rise "to $12 billion within the next five years", said the meeting statement, capping the Egyptian president's three-day visit.
The two leaders agreed to increase Indian investments in Egypt, which currently stand at "over $3.15 billion" according to their statement, including through a potential "dedicated land area for Indian industries in the Suez Canal Economic Zone."
The statement also notes "strengthened bilateral cooperation" in agriculture, space research and tourism.
Facing a worsening economic crisis, Egypt is scrambling to boost international trade and attract investors.
India is already Egypt's seventh-largest trading partner, according to data from Cairo's central bank, with a joint statement issued Thursday touting "a record high of $7.26 billion" during the last fiscal year.
The economic crisis in Egypt, triggered by Russia's invasion of Ukraine last year, has sent the local currency plummeting.
The Egyptian pound has lost half its value against the US dollar since March, following a devaluation demanded as part of a $3 billion loan agreement with the International Monetary Fund.
In a sign of closer diplomatic ties, Modi has also invited Sisi to participate in the G20 summit in India in September to represent "the interests and priorities of the global south", their statement said.
The two leaders also called for "comprehensive reforms in the UN Security Council, including by expanding membership categories and strengthening representation for developing countries."
S. Africa Power Cuts Gutting Growers
Situated in Ceres, one of the country's major fruit growing regions around 120km (75 miles) north east of Cape Town, the century-old family farm "Remhoogte" needs a steady electricity supply for an automated irrigation pump network that sprays thousands of trees heavy with fruit.
South African deciduous farmer Heinie du Toit frets as the worst power cuts on record threaten to take the shine off his apple and pear crop destined for foreign markets.
Too little water during the irrigation peak, from end of November to mid-March, affects the size and quality of a wide variety of apple and pear cultivars, hitting produce and revenue as only premier grades are shipped to the European Union, UK, China and the Middle East.
"The trees have a certain need for water and if they don't get that water it's going to affect the quality negatively and then you can't export the fruit," Du Toit said.
A 10% reduction in exports from the farm may result in some 7.5 million rand ($435,600) lost revenue, Du Toit said, with lower grades destined for the domestic market and juice processors.
Daily power outages, which utility Eskom anticipates would continue for two more years at least, have hammered economic growth, fueling widespread discontent among businesses and households.
"Many farmers said this is their last chance and if something doesn't happen very quickly they are going to sell their farms ... It is a huge concern," Du Toit said as the steady throb of a diesel generator kicked in.
At the Bella Frutta fruit exporters' packaging warehouse in Ceres, two massive diesel generators help keep conveyor belts moving and cold storage units at -1.5 degrees Celsius.
Earlier in January, the pack house used 5,000 liters of diesel in just under three days to keep operations running.
"We struggle to keep a constant cooling supply to our cold rooms," said Fransu Viljoen, engineering manager at Bella Frutta, adding it was frustrating to get up before the crack of dawn to reset the generators.
Cape Town vegetable farmer Carl Gorgens has given up on about half of his farming area because he cannot irrigate as frequently as needed.
"It's impossible to farm like this, to farm half the amount of seedlings in a season, when you're supplying supermarkets. I might as well stop and close the doors," said Gorgens.
Roughly 20% of maize, 15% of soybeans, 34% of sugarcane and nearly half of South Africa's wheat production was under irrigation, said Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, adding farmers had raised concerns about power cuts hitting output.
US Downs Ransomware Operation
The US Justice Department announced Thursday it had shut down the Hive ransomware operation, which had extorted more than $100 million from more than 1,500 victims worldwide.
US Attorney General Merrick Garland said that US authorities working with German and Netherlands law enforcement took over Hive's website and servers after having infiltrated it for nearly seven months.
The infiltration helped hundreds of companies avoid paying $130 million in extortion demands made after Hive hacked and froze their data systems.
Deputy Attorney General Lisa Monaco called the operation to infiltrate Hive a "21st-century cyber stakeout."
"We hacked the hackers," she said.
Hive operated as a ransomware service, meaning anyone could hire its software and other services to help hack into and lock down a target's IT systems, and to process payments. Hive and the client would share the profits from the extortion.
Since it first emerged in 2021 more than 1,500 companies and institutions have been hacked -- their IT systems or databases encrypted by Hive and backup deleted or rendered inaccessible.
The hackers would demand large payments, often in cryptocurrency, in exchange for freeing up the systems.
If victims refused to pay, Hive would publish confidential internal files and documents on the internet.
Victims included India's Tata Power, German retail giant Media Markt, Costa Rica's public health service, Indonesia's state gas company and multiple US hospital groups, according to cybersecurity advisors.
Early on Thursday, Hive's website on the dark web was frozen and a screen alternating in English and Russian said it had been taken over by the US Federal Bureau of Investigation.
US officials said that by breaking into Hive's dark-web site and collecting information, Justice authorities were able to obtain the digital keys necessary to unlock a victim's frozen data so that they were not forced to pay Hive.
This helped prevent a Texas school district, and Louisiana hospital, and an unnamed foods services company from having to pay millions of dollars in ransom after being hit by a Hive attack, for example, they said.
"For months, we helped victims defeat their attackers and deprived the Hive network of extortion profits," said Monaco.
US authorities would not say who is behind Hive or whether any arrests would accompany the shutdown of the operation, saying the investigation is ongoing.
The investigation involved the US FBI, the German Reutlingen Police Headquarters, the German Federal Criminal Police, the Netherlands National High Tech Crime Unit, and Europol.
S. Africa Reserve Hikes Rates
South Africa's central bank on Thursday raised its main lending rate by 25 basis points to 7.25%, smaller than the 50 basis point increase expected by the majority of economists polled by Reuters.
Three members of the bank's Monetary Policy Committee preferred the 25 basis points increase, while two members preferred a 50 basis points increase, Lesetja Kganyago, Governor of the South African Reserve Bank, said.
"The revised repurchase rate remains supportive of credit demand in the near term, while raising rates to levels more consistent with the current view of inflation and risks to it," he said in his statement.
"While economic growth has been volatile for some time, prospects for growth appear even more uncertain than normal. A material reduction in load-shedding (power cuts) would significantly raise growth," the governor added.
South African monetary policymakers started raising rates in November 2021 and unleashed their steepest hike in a decade - 0.75 percentage points - in July last year.
The bank said that the economy is expected to grow by just 0.3 percent in 2023 due to the electricity supply crisis plaguing the continent's most industrialised economy.
The economy grew 2.5 percent last year, up from 1.8 percent in 2021.
This report was compiled with data sourced from Reuters and Agence France-Presse.
US 2022 Economic Growth Slowed
UPDATED WITH COMMENTS, ADDITIONAL DATA: The US economy grew at a slower pace in 2022, the Commerce Department said Thursday, as activity eased in the final months of the year and recession fears loomed.
The world's biggest economy expanded 2.1 percent for all of 2022, down from the 5.7% growth figure in 2021, according to Commerce Department data.
In the October to December period, the US saw its gross domestic product rise at an annual rate of 2.9 percent.
This was down as well from 3.2 percent in the third quarter last year, although better than analysts expected.
Household spending and business investment remained positive in the final quarter last year though they slowed, while inventories and net exports helped growth, said Rubeela Farooqi of High Frequency Economics.
Meanwhile, residential investment continued contracting.
The interest-sensitive housing sector has been reeling on the back of the Federal Reserve's rate hikes, with mortgage rates remaining high and weighing on affordability.
"Looking ahead, recent data suggest that the pace of expansion could slow sharply in the first quarter, as the effects of restrictive monetary policy take hold," Farooqi said.
Declines in manufacturing and retail sales were also recorded.
The slowdown would be welcome news to the Fed and could open doors to a slower pace of rate increases ahead.
The latest number marks the second straight quarter of growth after two rounds of contraction.
"The increase in real GDP in 2022 primarily reflected increases in consumer spending, exports," and certain forms of investment, said the department in a statement.
While unexpectedly resilient consumer spending supported growth last year, there are signs that households are drawing down on their savings from the pandemic period.
This could point to more subdued expenditures ahead, analysts say.
"Recent economic data signal the economy entered 2023 on a weak footing," said Ryan Sweet of Oxford Economics in a report.
He expects the US could enter a recession in the second quarter as consumers limit spending and businesses become more reluctant to hire and invest.
But others believe the country may yet avoid a recession, if the labor market remains strong and household balance sheets are healthy.
Even if households are eating into their funds due to inflation, "they're coming from a very high point," and this should alleviate or prevent a protracted downturn, according to Moody's Analytics economist Matt Colyar.