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Africa Headlines

Nigeria’s CBN Governor Yemi Cardoso looks towards Naira Stability in the medium term – The governor of the Central Bank of Nigeria (CBN) Yemi Cardoso yesterday provided an optimistic outlook for the Nigeria economy on the back of deliberate and continued reform measures of the Bola Ahmed Tinubu administration. He spoke at the launch of the Nigerian Economic Group (NESG) Macroeconomic Outlook 2024. One of the key messages of his presentation is that the Naira is undervalued. The immediate and long-term prospects of the economy is not reflected in the volatility of the Naira that we have seen in the last eight months and expects “a genuine price discovery” in the medium term. He was also looking to improvements in Nigeria’s macroeconomic environment through improvements in the oil production, oil receipts from Nigeria’s national oil corporation, NNPC and his continued work with his fiscal counterparts in government. He also alluded to the positive response from ratings agencies in response to the government’s reforms on fuel subsidy, exchange rates, and taxation. The governor says he expects inflation to moderate to 21% at the end of this year. Inflation is currently about 30%. 

Nigeria’s Presidency explains movement of FAAN, CBN departments to Lagos – The Nigerian government has criticised the heightened response of what it considers administrative decisions to move the department of banking supervision of the Central Bank of Nigeria (CBN) and the head office of the Federal Airports Authority (FAAN) to Lagos. The federal government says these measures are not tantamount to the relocation of the administrative capital of Nigeria back to Lagos but to ease the supervisory and regulatory roles of these government agencies. Over 90% of banks in Nigeria have their headquarters in Nigeria and the movement of the department directly in charge of their supervision is expected to provide a greater platform for effective banking supervision. Also, Lagos airports account for about 75% of air movements and the proximity of FAAN will also improve work and effectiveness of the agency. 

AFCON: Relief for host nation as Morocco provided needed help – Morocco's victory over Zambia in the Africa Cup of Nations helped Cote d’Ivoire secure a place in the last 16 of the tournaments. Zambia needed a draw to prevent Morocco from qualifying as one of the best third-placed teams in Group F. However, Hakim Ziyech's goal sealed the win for Morocco and sent Zambia home. Cote d’Ivoire who had sacked their coach earlier in the day due to poor performances, owed their qualification to Morocco's victory. The host nation will now face Senegal in the knockout stages, while Morocco will play South Africa. The match against Zambia was overseen by assistant coach Walid Regragui, as the head coach was serving a four-match ban imposed by the Confederation of African Football.

Asante Gold: UK to loan back Ghana's looted 'crown jewels' – The UK is returning 32 looted items from Ghana's Asante kingdom after 150 years. The Victoria and Albert Museum (V&A) and the British Museum will lend 17 and 15 pieces, respectively, including a gold peace pipe and regalia items. The loan deals serve to allow objects to return without violating UK laws that prohibit permanent restitution. The items, taken during 19th-century conflicts between Britain and the Asante, hold immense cultural and spiritual significance for Ghana. The three-year loan agreements, with a possible extension, are made with Otumfo Osei Tutu II, the Asantehene (Asante king). The artifacts will be displayed at the Manhyia Palace Museum in Kumasi to commemorate the Asantehene's silver jubilee. This initiative is seen as a step towards healing and commemorating the past violence, although it does not resolve the ownership issue. The return of looted artifacts has been a longstanding demand from countries like Nigeria and Greece, highlighting the complexities surrounding repatriation.

Global Headlines

Putin tells Chad coup leader he 'stabilised' country – Russian President Vladimir Putin expressed satisfaction with Chad's President Mahamat Idriss Déby for stabilising the country since coming to power in a coup three years ago. The two leaders met in Moscow as Russia aims to increase its influence in Africa. Déby assumed control after his father's death in 2021 at the hands of rebels. Initially, the junta pledged an 18-month transition to elections but later postponed them until October of this year. In December, a controversial referendum on a new constitution was held, with critics arguing that it could solidify Déby's grip on power. 

The government reported that approximately 86% of Chadians who participated in the referendum voted in favor of the new constitution. During their meeting, Putin commended Déby for stabilizing the country and expressed confidence in the upcoming elections. Russia has been establishing close relationships with Mali, Burkina Faso, and Niger, which are now under military control and have severed ties with former colonial power France.

China desperate to lift economy – The Chinese authorities, since the start of the year, has been ramping up measures to lift the economy’s deflationary trajectory. In the last 24 hours, it has reduced the amount of liquidity its banks are expected to hold. According to reports on CNBC, reserve ratio will be cut by 50%, effectively releasing about US $140 billion into the economy. This will take effect February 5^th , following two similar cuts last year. The stimulus plans are not risk free. There is concern amongst Chinese authorities that deeper stimulus will lead to a widening in the yields of its government bonds compared to that of the US, further weakling the second largest economy’s currency. The Chinese economy has been on different wobbly trajectories since Covid – 19. The expected strong rebound after the pandemic did not materialise while the economy has been hit by real estate wobbles and weak demand. In 2023, GDP growth was 5.2%, lowest in the last decade before Covid – 19.