🔅 A Cocaine Crisis, A Venice Biennale Debacle, & Ruto's Fiscal Fiasco
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Market Mondays
Year-to-Date Performance:
🟢 Johannesburg SE: 80,797.38 (+5.08%)
🟢 Nigerian SE: 100,022.03 (+33.77%)
🟢 Nairobi SE: 109.02 (+18.36%)
🟢 Ghana SE: 3,950.49 (+26.20%)
🟢 US S&P 500: 5,567.19 (+17.38%)
🔴 Shanghai Composite: 2,949.93 (-0.42%)
Ethiopia's cabinet has approved a bill permitting foreign banks to establish local subsidiaries and allowing foreigners to acquire shares in domestic lenders. This decision is part of the government's broader plan to liberalize the economy of one of the largest markets in Sub-Saharan Africa, attracting foreign investors after decades of economic closure.
Rwanda's Finance Ministry announced that South Korea has granted $1 billion in concessionary loans to support projects in various sectors, including transport, healthcare, and education.
Ivory Coast anticipates more than tripling its oil production by 2027, following significant discoveries in the Baleine and Calao offshore fields. Additionally, a recovery in cocoa production in Ivory Coast and Ghana is expected to end the massive bean shortage that caused prices to surge to record levels this year, according to commodities broker Marex.
Botswana may not achieve the government's 4.2% GDP growth target for this year, according to a senior central bank official, due to global and domestic challenges. Despite an optimistic projection by Finance Minister Peggy Serame, driven by improvements in the diamond sector, the economy grew by only 2.7% in 2023. The mining sector, heavily reliant on diamonds, is still facing sluggish global market conditions.
Tanzania’s central bank has maintained its key interest rate at 6%, citing expectations of strong economic growth for the remainder of the year due to favorable weather for agriculture and a stable power supply.
China's Tsingshan Holding Group has commenced production at its $1 billion steel plant in central Zimbabwe. The plant, operated by Tsingshan's Dinson Iron and Steel Company, will produce 600,000 metric tons of carbon steel annually in its first phase.
*Data accurate as of the close of markets across the continent
Spotlight Stories
Agadez's Cocaine Crisis: A Bitter Pill for Europe's Drug Habit
Picture this: you're a young woman, chasing dreams of a better life in Europe. But instead of reaching the promised land, you find yourself trapped in a city that is a one-stop-shop for both migrants and cocaine. To pay off your transportation debts, you're forced into sex work. And to numb the pain of your nightmarish reality, you turn to crack cocaine.
That is the reality for a growing number of female migrants caught in Agadez’s vicious cycle of debt, exploitation, and addiction in Niger.
But who's to blame for this mess? Enter Europe's insatiable appetite for white powder.
As Brazilian drug cartels ship record amounts of cocaine to Africa's Atlantic coast, the Sahel region has become a smuggler's paradise, with weak governance and ancient trade routes providing the perfect cover.
The result? A booming drug trade that's leaving a trail of destruction in its wake.
Europe's Blind Eye: Out of Sight, Out of Mind
You'd think European politicians would be all over this, right? After all, they're obsessed with stopping migrants from reaching their shores. But when it comes to the devastating impact of their own cocaine habit on transit countries like Niger, they seem to have developed a sudden case of selective blindness.
Meanwhile, the people of Agadez are left to pick up the pieces. The local health system is buckling under the weight of the addiction crisis, and organizations like Azizou Chehou's are struggling to provide support to the women trapped in this nightmare. But without proper funding and engagement from the government, it's an uphill battle.
So, what's the solution? For starters, Europe needs to wake up and smell the cocaine. It's time to recognize that their drug habit is fueling a crisis that extends far beyond their borders.
More on this, in The Guardian
The DRC's Venice Biennale Debacle: A Rollercoaster Ride of Art and Politics
The Democratic Republic of Congo (DRC) had a bit of a rough start at this year's Venice Biennale. While other nations were busy sipping prosecco and admiring their fancy pavilions, three Congolese artists found themselves staging an impromptu performance called "Invisible" outside the Giardini.
The artists, Aimé Mpane, Eddy Ekete, and Steve Bandoma, had traveled all the way from the DRC on their own dime, only to discover that they had no space to show their art. Apparently, there was a bit of a tiff between the DRC's ministry of culture and the Italian co-curator of the pavilion, Michele Gervasuti, over who should foot the bill for restoring the Palazzo Canova, where the DRC pavilion was supposed to be housed.
Former culture minister Catherine Kathungu Furaha explained that the DRC couldn't afford the restoration costs. But participating in the Biennale is crucial for the nation, as it's a chance to showcase Congolese talent and improve the country's image beyond the headlines about war and violence.
Enter Gabriele Salmi, an Italian who's been living in the DRC for over 20 years. He's been tasked with finding a new space and managing the show, which will now be titled "Vibranium" (yes, like the fictional metal in Black Panther). The exhibition will explore themes of restitution and the controversial exploitation of raw materials from the DRC in the creation of new technologies.
The show, which was supposed to have a soft opening on May 17, is still not open, with the artworks languishing in packaging inside a former chapel in the Castello district. Salmi explains that the Biennale can do more to change perceptions than a thousand lectures and articles.
So, while the DRC's Venice Biennale journey has been a wild ride, the artists and organizers remain determined to showcase the nation's talent and change the narrative surrounding their homeland.
Kenya's Budget Balancing Act: Ruto's Fiscal Fiasco
President William Ruto has found himself caught between a rock and a hard place – or more accurately, between angry protesters and demanding lenders. After scrapping a controversial finance bill that sparked nationwide protests (and a brief parliamentary storming – talk about participatory democracy!), Ruto's now scrambling to fill a $2.7 billion budget hole.
His solution? A 50-50 mix of spending cuts and additional borrowing.
Ruto's austerity measures read like a game of government Jenga: dissolving 47 state corporations, slashing government advisers by half, and even cutting budget lines for the president and deputy president's spouses.
In an attempt to connect with the youth, Ruto hosted a live audio forum on X. He faced some tough questions about police brutality and corruption, including from an activist who claimed he was abducted and questioned by state security agents.
Ruto's response? An apology and a promise to take action.
Meanwhile, protests continue, with some calling for Ruto's resignation. But turnout is down, and some activists are rethinking their strategy after recent demonstrations turned violent.
The government blames "opportunistic criminals," while activists point fingers at "thugs hired by politicians."
Food for Thought
“The food which is prepared has no master."
— Malagasy Proverb