🔅 1976 Olympics and Africa's United Voice
All Aboard the African Express: Where Superpowers Rival Each Other
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Market Mondays
Year-to-Date Performance:
🟢 Johannesburg SE: 81,120.51 (+5.50%)
🟢 Nigerian SE: 98,201.49 (+31.33%)
🟢 Nairobi SE: 104.22 (+13.15%)
🟢 Ghana SE: 4,490.18 (+43.45%)
🟢 US S&P 500: 5,459.10 (+15.10%)
🔴 Shanghai Composite: 2,890.90 (-2.41%)
Nigeria's Dangote refinery is aiming to reach 85% capacity (550,000 barrels per day) this year but is facing significant crude supply challenges. Due to insufficient domestic supplies, the refinery is seeking crude from Libya and Angola to meet its operational needs. Meanwhile, Nigeria's central bank has raised its key interest rate by 50 basis points to 26.75% in an effort to curb inflation and support the nation's currency.
Zambia is projecting a substantial increase in its annual copper production, expecting it to rise by over 40% to 1 million tons by 2027. The country aims to capitalize on predicted supply shortages in the coming years, leveraging its position as Africa's second-largest producer of the metal.
Kenya is planning to seek fresh financing from the IMF as its current program is set to end in April. The country is also in talks with the World Bank for development policy financing. Meanwhile, the Kenyan shilling has been weakening against the dollar for 11 consecutive days, indicating economic pressures.
South Africa's central bank has maintained its key interest rate at 8.25% in a split decision. Notably, two out of six policymakers favored a cut, potentially signaling a shift towards policy easing in the near future.
Zimbabwe is facing a severe food security crisis, with over half of its rural population expected to face food insecurity by the first quarter of 2025. This situation is primarily due to an El Nino-induced drought that has significantly affected crop output in the country.
On the international front, the International Monetary Fund is working to rally G20 nations around a new initiative aimed at helping poor countries reduce debt burdens and avoid defaults. And the United States tech sector experienced a significant setback as Big Tech stocks suffered substantial losses. The "Magnificent Seven" tech stocks lost a combined $750 billion in market capitalization, marking their worst day ever. This downturn led to the S&P 500 and Nasdaq having their worst days since 2022.
*Data accurate as of the close of markets across the continent
Spotlight Stories
The Montreal 1976 Olympics: A Turning Point for Africa's Global Voice
As this weekend marked the start of the Paris 2024 Olympic Games, it's worth reflecting on the event's nonpolitical ethos and whether it can be maintained in today's complex geopolitical landscape. The Montreal 1976 Olympics serves as a prime example of how the games have been used for political ends, particularly in the context of Africa's fight against apartheid.
In the lead-up to the 1976 games, the Olympic competition between the US and the USSR seemed to be the main focus, reflecting the Cold War tensions of the time. However, just a week before the opening ceremony, a shocking event unfolded: a landmark boycott by African countries, orchestrated by the Organisation of African Unity (OAU). This move not only shifted the spotlight to the struggle against apartheid but also marked a significant moment in Africa's assertion of its international voice.
The OAU's Olympic Gambit: Bypassing Bureaucracy for Global Impact
The OAU's decision to boycott the Montreal Olympics came in the wake of the Soweto massacre in Johannesburg, where brutal police violence led to the deaths of hundreds of demonstrators, mainly black people.
What made the OAU's move so effective was its ability to bypass the bureaucratic channels of the Olympic movement. By going directly to the global stage, the OAU forced the world to confront the issue of apartheid, dominating headlines and revealing the powerlessness and conservatism of the International Olympic Committee.
The consequences of the boycott were significant. Africa asserted itself as an autonomous power in international sports diplomacy, compensating for the relative ineffectiveness of the OAU within the UN. The OAU's fight against complicity with apartheid had both a moral and a geopolitical dimension, reflecting its efforts to build a genuine African force on the world stage.
As we look ahead to the Paris 2024 Olympics, the lessons of Montreal 1976 remain relevant. The games have always been a platform for political expression, whether it's the Cold War rivalries of the past or the fight against apartheid. Today, issues such as human rights, climate change, and social justice are likely to take center stage, challenging the nonpolitical ethos of the event.
All Aboard the African Express: Where Superpowers Play Train Set
Once upon a time, railways were the backbone of African cities, but alas, like your high school dreams of becoming a pop star, these railways have mostly faded into obscurity.
Now, Africa's entire rail network is only slightly larger than France's and Germany's combined. To catch up with China or India, Africa needs investments of up to $105 billion a year until 2050.
But just when you thought all hope was lost, enter the superpower rivalry!
In one corner, we have the United States, flexing its diplomatic muscles and throwing money at the Lobito corridor project. In the other corner, China.
The USA is betting big on the Lobito corridor, hoping to use it to redirect precious minerals westward. Meanwhile, China, not to be outdone, is promising billions to refurbish rival railways.
African countries, clever as they are, are playing these superpowers like fiddles. "Playing them against each other is really helping us," says a Zambian official. Still, the real challenge for African governments is to move beyond the "pit-to-port" model that's been the norm since colonial times.
And some ambitious plans are in the works, with projects now promising to "integrate" places and industries along routes far beyond just mining.
But let's not get ahead of ourselves. Recent history is littered with the rusting remains of overly ambitious rail projects. Ethiopia and Kenya have both poured billions into railways that are now drowning in debt.
So, what's the moral of this transcontinental tale? Well, if Africa's latest railway age is going to deliver more than just commodities to ports, it needs to think bigger. It's time to start building real networks that can drive economic growth, urbanization, and industrial development.
How Crushing the Mosquito Menace Could Boost Africa's GDP
Nigeria, Africa's most populous country, has a $34 billion incentive to squash the malaria menace by 2030.
According to a study by Oxford Economics Africa, meeting the World Health Organization's malaria goals could boost Nigeria's economy by a quarter of the $142.7 billion cumulative output benefit expected for malaria-endemic countries.
But Nigeria isn't the only one set to benefit from this malaria-fighting mission. Africa as a whole would account for 88% of the economic boost across the 85 nations plagued by the disease.
The WHO's Ambitious Goals and the Promise of Vaccines
The World Health Organization has set its sights on reducing both malaria incidence and mortality by 90% in the next six years.
While progress has stalled due to funding drops and growing resistance to existing treatments, recently released vaccines offer a glimmer of hope in the fight against the disease.
And with eight African countries already offering the malaria vaccine as part of their childhood immunization programs, it seems like the team is starting to gain some momentum.
Research shows that a mere 10% drop in malaria cases could lead to a 0.11 percentage-point increase in annual GDP growth per capita.
But the economic benefits don't stop there. The study suggests that trade would increase if malaria incidence fell, with exports from Nigeria alone expected to be $4.8 billion higher over the period.
As if the fight against malaria wasn't tough enough, Africa is also grappling with the impacts of climate change. Despite being the least responsible for the warming world, the region is one of the hardest hit by adverse weather, which not only increases the risk of infectious disease spread but also makes it difficult to predict malaria patterns.
In the end, investing in malaria control and elimination programs isn't just about saving lives—it's also an economically smart move for malaria-endemic countries and their international partners. So, let's all raise our mosquito swatters and toast to a malaria-free, economically thriving Africa.
Food for Thought
“Do not follow a person who is running away."
— Kenyan Proverb