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Africa

Egypt PMI Hits Three-Month Low as New Orders Plunge

Egypt PMI Hits Three-Month Low

Cairo, Egypt – Egypt’s private non-oil business sector declined for the second consecutive month in September, as the strongest drop in new orders in five months dominated the downturn, according to a recent Purchasing Managers’ Index (PMI) report released by S&P Global on Sunday.

The seasonally adjusted PMI fell to 48.8 in September from 49.2 in August, the weakest since June and still short of the key 50.0 level that separates contraction and growth.

A Deteriorating Contraction in Demand

The principal explanation for the fall was a steep and prolonged decline in new order inflows. Firms reported tough local conditions, including continued inflation and diminished client purchasing power, that significantly damped demand. The declining new orders were the biggest since April, and they prompted many firms to reduce their purchasing activity for the second consecutive month.

To the domestic problems, there was added the fact that the export facet of the economy remained a huge weak link. Overseas sales declined for the tenth month in a row, and the decline’s speed hit its highest level in three years. It suggests Egyptian products are not competitive in the international market, perhaps due to international economic forces and continued currency fluctuations.

A Mixed Picture on Costs and Employment

In a single bright spot for businesses, the survey registered some relief on the cost of inputs. Inflation in raw materials and other inputs eased to its lowest rate since March. Economists attributed this easing largely to a stronger Egyptian pound that has lowered the cost of imports denominated in dollars.

However, this was offset by increased staff expenses, which advanced at their quickest rate since May 2024. A lot of this increase has come from an increase in living expenses and the government’s introduction of an above rate higher minimum wage, putting more pressure on firms’ operating margins.

The employment market was stagnant. After two months of poor job growth, staffing numbers were essentially the same in September as nearly every company surveyed reported headcount unchanged. This hiring freeze reflects a defensive business environment where companies don’t want to add to their personnel as orders decline.

Pessimism Increases as Business Confidence Fades

The combined impact of falling demand, stagnant jobs, and continued cost concerns has severely dampened business confidence. Optimism regarding production next year dropped to one of the lowest on record in this survey.

“While companies are struggling to win new business in challenging general market conditions, they can take some comfort from relief trends in input costs,” said David Owen, S&P Global Market Intelligence Senior Economist. “The concern, however, is that weaker demand appears to be the dominant factor currently, restraining expansion and discouraging investment.”

One of the contradictory signs of this caution was a modest rise in levels of inventory for the first time since May. Some firms chose to build up inputs, perhaps as a safeguard against future price hikes or supply chain breaks, while their own production needs for now fell.

The September PMI data paint a different picture of a private sector grappling with the tricky balance of managing moderating cost inflation on one hand, and a sharper challenge of vanishing demand on the other, with growing business despondency.

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Africa

Explosions Heard in Addis Ababa as Opposition Claims Drone Strikes

By George Mensah 5 min read

Explosions were heard overnight in Ethiopia’s capital, Addis Ababa, three diplomatic sources said on Thursday. A source linked to the opposition alliance fighting government forces in the north said the alliance carried out several drone strikes in the city, including some aimed at the military’s headquarters. Reuters could not verify the claim, and witnesses reported no damage near the military base. The blasts have added to fears that renewed fighting in Ethiopia’s north is spreading toward the capital.

What Is Known About the Blasts

The three diplomatic sources spoke on condition of anonymity and gave few details. Two diplomats told Bloomberg that one blast was reported near the 4 Kilo area in the centre of the city and a second near the headquarters of the Ethiopian National Defense Force.

Spokespeople for Prime Minister Abiy Ahmed’s office, the federal government and the Ethiopian National Defence Force did not immediately respond to requests for comment.

If confirmed, it would be the first known drone attack by anti-government forces on the capital. Addis Ababa lies hundreds of kilometres from the front lines in Tigray, Amhara and Afar.

The Opposition Claim

The opposition source said the alliance hit several targets in the capital with drones. Reuters could not independently check that, and witnesses saw no visible damage near the military base. The source gave no further detail on what was struck.

The alliance has been fighting federal forces since last week. It is called the Ethiopian Peoples’ Forces Alliance for Survival, and it brings together seven armed groups from different regions. The Tigray People’s Liberation Front, or TPLF, is one of its main members.

A Drone Ban and a Capture Claim

On Wednesday, the national intelligence service banned drone flights over Addis Ababa and its surroundings for security reasons. It did not say when the ban would end.

Opposition forces had not been known to use armed drones, but evidence is growing that they may have some capability. On Tuesday, a pro-government militia said it had captured drone frames and batteries from forces linked to the TPLF. Reuters could not verify that either.

Drones have already been part of the war. A drone hit the headquarters of Tigrai TV in Mekelle on Sunday, and the UN chief, Antonio Guterres, said he was troubled by reports of drone use and harm to civilians. The government holds a heavy advantage in the air. It has a large drone arsenal, about 500,000 troops and support from abroad, notably the United Arab Emirates.

An Analyst’s Warning

Edward Bach, senior Africa analyst at the risk intelligence company Verisk Maplecroft, said an opposition strike on Addis Ababa would change the politics of the war. He called it “a political game-changer.” It would undercut any government line that the capital is untouched by the conflict, he said. It would also narrow a major tactical advantage for federal forces, which is their control of the skies.

Fighting in the North

Last week’s clashes were the biggest escalation in Ethiopia since the 2020-2022 civil war ended. They broke a four-year-old peace deal between the TPLF and the federal government. The earlier war killed hundreds of thousands of people.

This time the TPLF has teamed up with six other armed groups that aim to overthrow Abiy’s government. Federal forces have moved forward in southern Tigray and are edging closer to the regional capital, Mekelle. The alliance has taken towns in neighbouring Afar.

The pro-government Tigray Peace Forces militia said on Wednesday that it and the Ethiopian military had captured the town of Korem. Korem is about 100 km (62 miles) south of Mekelle. An Afar government official told Reuters on Thursday that federal and regional forces had retaken the towns of Erebti and Abaala, near the Tigray border. Reuters could not confirm any of the battlefield reports.

In Afar, where the TPLF took several towns early in the fighting, tens of thousands of people have fled their homes. Valerie Browning, a founder of the Afar Pastoralist Development Association, told Reuters about the displacement.

Fears for the Wider Region

The conflict could add to instability across the Horn of Africa, which is already strained by Sudan’s civil war, friction between Ethiopia and Eritrea over Red Sea access, and spillover from Middle East conflicts.

Ethiopia’s government accuses Eritrea, Sudan and Egypt of backing the opposition alliance. All three deny it. Haji Awol Arba, Afar’s chief administrator, went further earlier this week. He told Al Jazeera that Eritrean soldiers had crossed into Afar to join the alliance’s offensive. Eritrea’s information minister did not immediately respond to a request for comment.

Eritrea fought alongside Ethiopia’s federal government against the TPLF in the last war. Relations between the two old rivals have since soured. Asmara sees Abiy’s repeated claims that landlocked Ethiopia has a right to sea access as an implicit threat. Abiy has said Ethiopia intends to secure sea access by peaceful means.

What Happens Next

Several questions are open. The government has not said whether the blasts were drone strikes, who launched them or what they hit. Independent confirmation could come from more diplomatic or witness accounts, or from official statements. The drone ban over the capital stays in force, with no end date.

On the ground, federal forces are pushing toward Mekelle and fighting continues in Afar. How far the war spreads, and whether Eritrea takes a role, will shape what comes next. Until the explosions in Addis Ababa are confirmed or explained, the opposition’s claim remains unverified.

Africa

Man Charged Over Fake Nigerian Agency That Won $1 Million Budget

By George Mensah 4 min read

A Nigerian man accused of running a government agency the presidency says does not exist was charged in an Abuja court on Wednesday with forgery and impersonation. Prosecutors allege Adeniyi Adeyemi has posed since 2024 as director-general of the Presidential Foreign Investment Promotion Council, or PFIPC, which the presidency says it neither established nor authorised him to lead. Adeyemi pleaded not guilty to all eight charges and was sent to prison until his next court date on October 12. The case has exposed gaps in the checks that govern Nigeria’s public institutions.

What Prosecutors Allege

Nigeria arraigns boss of bogus government agency.

According to court filings, the purported agency won office space inside the federal secretariat. It secured a roughly $1 million budget allocation this year and tried to open accounts at the Central Bank of Nigeria. Several government institutions also processed its requests in the belief that it was legitimate.

The case has gripped Nigerians because of the scale of what is alleged. A state agency that the government says never existed appears to have passed through several layers of state bureaucracy.

The Forged Letters

Prosecutors accuse Adeyemi of forging an appointment letter purportedly issued by President Bola Tinubu and signed by the president’s chief of staff, Femi Gbajabiamila. Gbajabiamila could not be reached for comment on Wednesday.

They also say Adeyemi used documents bearing presidential letterheads to request office space, staff deployments and cooperation from government agencies. Other counts allege forged requests for office accommodation, an approval of staff account status, and a conveyance approval, all purportedly issued by the State House.

Prosecutors have not accused any government officials of conspiring with Adeyemi. He is jointly charged with two people identified only as Femi and Anu, who are said to be at large.

What Happened in Court

Adeyemi arrived in a white kaftan and baseball cap. He smiled and chatted with his lawyers before prosecutors read the eight charges at the federal high court in Abuja. Justice Muhammed Umar remanded him at the Kuje Correctional Centre after the plea.

Rotimi Oyedepo, the director of public prosecutions, told the court the attorney-general of the federation had directed him to take over the case from the police, and he asked for Adeyemi to be held in custody. Adeyemi’s lawyer, Genesis Francis, said a bail application dated January 12, 2026, had been filed and served on the prosecution. Adeyemi, 38, will stay in custody until that application is heard on October 12.

Adeyemi was arrested in the southwestern state of Osun. A judge had issued a warrant for him after he failed to appear in court five times.

What Adeyemi Says

Adeyemi has denied wrongdoing in interviews with local media. He says the PFIPC is genuine and that he personally approached budget officials to get it included in government spending plans.

He also told a meeting in Lagos on September 26 that the police, the Department of State Services and the Independent Corrupt Practices and Other Related Offences Commission had cleared him of wrongdoing.

That claim runs against the prosecution’s account. Prosecutors say an investigation ordered by the presidency and carried out by the same anti-corruption commission found the council had no legal backing. The two accounts cannot both be right, and the court will have to sort out which is accurate.

What the Case Says About Oversight

Nigeria has long struggled with corruption and weak oversight in public services, and the case is seen as reinforcing a view that official procedures can be bypassed with the right documents and claims of powerful connections.

The charges describe a chain of ordinary administrative steps that were each approved or processed: a request for office space, a staff posting, a budget line, a bank account application. Prosecutors have not said which officials handled those requests or what checks they ran. Those questions are separate from the criminal case against Adeyemi, but they are the ones the court filings raise.

The presidency’s position is clear. It says it did not create the agency or authorise Adeyemi to lead it. Yet according to court filings, the agency held office space in a federal building and a budget allocation in a federal spending plan. That gap is the story.

What Happens Next

Adeyemi returns to court on October 12, when his bail application is due to be heard. He remains in custody until then.

Several points are still open. Prosecutors have not said how Adeyemi allegedly obtained the budget allocation, who in government approved it, or where the money went. Two co-defendants are at large. Adeyemi has not given a detailed public account of how he says the council was created.

His lawyers have not said whether they will challenge the forgery counts. The case will show whether the documents are as the prosecution describes them, and whether a body that never legally existed was able to operate inside the federal system for more than a year.

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