Nigeria’s unemployment rate rises to 5% – NBS

Good morning, and a warm welcome to ThinkBusiness Africa, your Monday – Friday dose of commentary, contexts, and insights on business and economic news that matter to you.

Remember to visit www.tb.africa to continue to enjoy the second phase of our media services development. Also remember to share your feedback.

ThinkBusiness Africa thank you.

Please, also share so we can continue to build a community of “business thinkers”.

Upcoming Event

In partnership with

Africa Headlines

Nigeria’s unemployment rate rises to 5% – NBS - Nigeria's unemployment rate climbed to 5% in the third quarter of 2023, marking a rise from 4.2% in the prior quarter. This increase coincides with a decline in labor force participation, dropping to 79.5% from 80.4%. While the new methodology employed by the National Bureau of Statistics (NBS) initially suggested a decrease in unemployment, critics like the Nigerian Labour Congress view these figures as inaccurate. Concerns lie with limited formal employment opportunities, with 87.3% of workers being self-employed and a significant portion (12.3%) experiencing underemployment. Youth unemployment and informal employment remain particularly high, at 8.6% and 92.3% respectively. Despite the NBS methodology being contested, experts like KPMG predict an even grimmer outlook, projecting a potential rise in unemployment to 40.6% compared to 2022's 37.7%.

Celebrating South Africa's 30 Years of Democracy - South Africa is celebrating 30 years of democracy, making it a unique destination to experience the joy and ongoing progress of a young nation. This trip allows you to immerse yourself in the country's history of overcoming its oppressive past and witness its vibrant present. One of the most impactful ways to understand South Africa's journey is through its liberation movement sites. Robben Island, where Nelson Mandela was imprisoned for 18 years, offers a firsthand account of the harsh realities of apartheid. The Apartheid Museum and Mandela House delve deeper into the struggle against racial segregation, while Hector Pieterson Memorial and District Six Museum showcase specific events and their lasting impact. The Mandela Capture Site and Sanctuary Mandela provide contrasting perspectives on his life and leadership. Tourism plays a vital role in South Africa's economic growth, and your visit contributes directly to its success. By experiencing the country's rich history and culture, you become part of its ongoing story of unity and hope.

Niger defaults on debt payments again as post-coup woes pile - Niger defaulted on another debt payment last week, bringing its total debt since the July coup to $519 million. This comes amid ongoing sanctions imposed by regional organizations due to the coup. Niger missed a $22 million payment due on February 16th, adding to previous defaults in August, November, January, and February. This situation is being monitored by the West African debt management agency, UMOA-Titres. The sanctions were imposed following the July coup that ousted President Bazoum. These sanctions, including border closures and frozen assets, have significantly impacted Niger's economy, which already relied heavily on foreign aid. Despite the economic hardship, the coup leaders have consolidated their power. Niger, along with neighbouring Mali and Burkina Faso, recently left ECOWAS and formed a new alliance, raising concerns about further regional instability.

Global Headlines 

Israel economy sinks 20% since start of crisis - The Israeli economy experienced a significant contraction of 19.4% in the final quarter of 2023, according to the country's Central Bureau of Statistics. This decline was largely attributed to the outbreak of the Iron Swords War in October 2023. Preliminary data revealed that the gross domestic product (GDP) shrank at an annualized rate of 19.4% during this period, driven by a substantial 26.9% decrease in private consumption as households reduced spending due to the Gaza war and a decline in confidence. In the preceding quarters of 2023, the GDP growth rates were 3.1%, 2.8%, and 2.7%. Overall, the Israeli economy grew by 2% in 2023, a significant decrease from the 6.5% growth experienced in 2022. The ongoing conflict in Gaza has resulted in a high number of casualties, widespread displacement, and severe shortages of essential resources, leading to accusations of genocide against Israel at the International Court of Justice. 

US Tech profits now exceed most country’s GDP - A study by ABC Finance reveals the staggering wealth concentrated in the world's top companies, particularly those from the US. The combined market cap of the 10 most profitable companies, exceeding $8.8 trillion, would position them as the world's third richest "country," surpassing even Japan's GDP. This highlights the immense financial power wielded by these corporations, with Saudi Aramco alone boasting a market cap larger than Italy, Brazil, Canada, and Russia combined. Apple, a US tech giant, exemplifies this trend. Its market cap of $1.3 trillion mirrors Australia's entire GDP, despite having a significantly smaller workforce. Even more strikingly, the combined wealth of Apple, Microsoft, and Amazon surpasses the UK's GDP, showcasing their immense economic influence. While the UK's top 10 companies hold their own, their collective market cap doesn't reach the level of the US giants. However, it still surpasses the GDP of several European nations, demonstrating the global reach of major corporations. This vast concentration of wealth raises concerns about economic disparity and the distribution of resources across the globe, with US companies playing a prominent role in this dynamic.

UK offering 3,000 visas to Indians through ballot system - The UK government has announced a new visa scheme offering 3,000 opportunities for young Indian professionals to live, work, or study in the UK for up to two years. The application process involves a ballot system with two rounds. The first ballot opens on February 20th and closes on February 22nd. Eligible Indian citizens can enter the ballot for free by submitting their details online. Selection will be random, and successful candidates will be notified within two weeks. They will then have 90 days to formally apply for the visa, which costs £298. Remember, meeting eligibility requirements like education and finances is crucial. More information and complete eligibility criteria, is contained on the official channels of the British High Commission in India.

X faces restrictions in Pakistan amid protests over alleged vote rigging - X, formerly Twitter, remains inaccessible in Pakistan since February 17th, following protests over alleged election rigging. Despite government denials, internet watchdogs report a nationwide block. Officials, including ministers, haven't responded to inquiries, while the regulatory body claims to only enforce government orders. Notably, the IT minister himself could post on X, raising questions. This follows repeated internet restrictions in recent weeks, often during events linked to former PM Khan's party. In January, Facebook, YouTube, and others faced similar blocks. The latest block coincides with a senior official's alleged confession of election manipulation, shared on X. Authorities deny the claims, but rights groups condemn the repeated shutdowns as illegal and harmful to Pakistan's digital economy. Experts suggest X's global reach and influence among politicians and media make it a target for restrictions, limiting the platform for voices critical of the elections.

Brazil recalls ambassador to Israel in row over Lula’s Gaza comments - Brazil and Israel are embroiled in a diplomatic crisis sparked by President Lula da Silva's comparison of Israel's Gaza campaign to the Holocaust. His remarks, made at an African Union summit, drew outrage from Israel, with Prime Minister Netanyahu deeming them "disgraceful" and declaring Lula persona non grata. In retaliation, Brazil recalled its ambassador from Tel Aviv and summoned the Israeli ambassador in Brazil. Lula's comments also faced criticism within Brazil, with accusations of fueling anti-Semitism. However, he had previously condemned Hamas attacks on southern Israel and criticized the retaliatory military campaign. This escalating tension underscores the potential for further strain in diplomatic relations between the two countries.