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Africa Headlines

Cardoso, Edun, Others Appear Before Reps, provide optimistic outlook – The trio in charge of the three key ministries and agencies of the government on the economy appeared before a House of Representatives select committee yesterday. The Finance Minister Olawale Edun, the Budget Minister Atiku Bagudu, and the Central Bank of Nigeria (CBN) Governor Yemi Cardoso delivered statements that provides an optimistic and early end to Nigieria’s current economic challenges. They reiterated the unsustainable fiscal situation the government met in May 2023 and argued that the ongoing reforms will deliver a stable price and exchange rate outcome. In the meeting, Yemi Cardoso traced spike in the demand for US dollars on the rise in demand for foreign education and health care. He stressed that the Bank has shifted to inflation targeting approaching and expects that to deliver 21% inflation rate at the end of this year. As explained here before, the Governor also stressed that the current volatility is not based on real demand for exchange purposes, but on arbitrage and the expectation that the US dollar will continue to appreciate against the Naira. Unknown to many speculators, the practice will lead to investment and production collapse in the economy, making the capacity for the economy to recover even worse.

Kenya to enter the Eurobond market Q2 2024 – The Kenya government is in talks with its advisers to return to the Eurobond market later this year. Before then, it is planning a buyback before the end of this quarter. Kenya wants to carry out the buyback to bypass the current high yields and allow for a more favourable terms in the market later in the year. The Kenya plan shows that Africa economies are now returning to Eurobond after two years that have been characterised by high interest rates and tightened financial conditions. Cote d’Ivoire returned to the Eurobond for US $2 billion last month. Meanwhile, Kenya’s usable foreign reserves rose above US $7 billion this week after receipt of the US $685 million from the International Monetary Fund (IMF).

Nigeria’s Striker Victor Osimhen declared fit for South Africa clash tonight – Nigeria's star striker Victor Osimhen has been declared fit to face the South Africans in the AFCON semi-final clash this evening at the Stade De Bouake. The striker had been feared to have abdominal discomfort that would have ruled him out of the clash. Though scored only a goal so far, Osimhen has been a constant in the Super Eagles’ attack and missing him for this important clash would have been massive for the team. This semi-final holds historical significance for Nigeria, equalling record of 16 appearances. South Africa, meanwhile, are riding a wave of momentum after overcoming initial struggles. They defeated Morocco in the round of 16 and are aiming for a repeat of their 2000 semi-final victory against Nigeria. Coach Broos, known for his AFCON success, acknowledges their quarter-final performance wasn't their best but believes they can overcome their nerves and continue their impressive run.

Senegal's delayed Vote: ECOWAS Raises Concerns – Senegal's recent decision to postpone its February 2024 presidential election to December has drawn disapproval from the Economic Community of West African States (ECOWAS). While not issuing a formal mandate, ECOWAS strongly urges Senegal to restore the original electoral calendar as it considered current circumstances “constitutional violations and democratic backsliding”. Critics, including opposition parties, view the delay as a manoeuvre by President Macky Sall to extend his rule beyond the two-term limit. Despite reassurances that he won't seek a third term, the postponement fuels suspicion and raises questions about transparency. ECOWAS, committed to regional stability and upholding democratic principles, emphasises the importance of respecting constitutional frameworks and conducting timely elections. While the outcome remains uncertain, ECOWAS's intervention highlights international scrutiny and potential consequences for Senegal's democratic trajectory.

Global Headlines

US and China seek to close gaps on economic ties – It appears the lingering trade and technological policies and access issues between the US and China is on the mend after another meeting to iron out all the gaps in their economic ties this week. While no agreement is reached yet, the economic teams from both countries met in Beijing. The delegations were led by the Undersecretary for International affairs at the US Department of Treasury Jay Shambaugh on the US side and the Chinese Vice Premier He Lifeng. The meeting was the third meeting of the US – China economic working group. There have been trade and technology tensions between the two largest economies in the last few years.

India Energy Week 2024 Paves Way for US $67 Billion Energy Boost – Prime Minister Modi ushered in a promising future for India's energy sector during the inauguration of India Energy Week 2024 in Bangalore. With over US $67 billion pledged in investments over the next six years, the event signals a significant step towards India's ambitions for energy independence and sustainability. Renewable energy emerged as a key focus, attracting substantial commitments. This aligns with India's goal of achieving 40% of its energy capacity from renewable sources by 2030. Investments also flowed towards clean coal technologies, a vital step towards reducing carbon emissions from this important energy source. Additionally, oil and gas exploration received funding, highlighting India's efforts to secure its energy needs. This event signifies a pivotal moment in India's energy trajectory. The substantial investments not only address growing energy demands but also contribute to a cleaner and more secure energy future for the nation.

Chile's former president Sebastian Pinera dies in helicopter crash – A somber cloud hangs over Chile as news broke of former president Sebastian Pinera's death in a helicopter crash on Tuesday. The 74-year-old billionaire businessman, who served two non-consecutive terms from 2010 to 2014 and 2018 to 2022, was reportedly piloting the aircraft near Lago Ranco in southern Chile when it plunged into the lake. While three passengers onboard survived, Pinera was pronounced dead upon rescue teams reaching the scene. Pinera's presidency was marked by both economic growth and social unrest. He oversaw a period of rapid financial expansion but faced criticism for widening inequality and his handling of mass protests in 2019. Despite remaining a polarising figure, his death has drawn condolences from across the political spectrum, acknowledging his contributions and impact on the nation. The cause of the crash is still under investigation, leaving a shadow of uncertainty amidst the grief. Whether a technical malfunction, human error, or other factors played a role remains to be seen. As Chile mourns the loss of a prominent figure, questions linger about the circumstances surrounding this tragic event.

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