🔅 A Mud-Brick Marvel
Djenne's Great Mosque Replastering, EACOP's $10B Challenges, and Africa's Fastest Growing Companies
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Nigeria's inflation rate has been on a relentless climb for 16 months straight, hitting a staggering 33.7% in April. The main culprits behind this inflationary nightmare are a threefold increase in electricity tariffs and skyrocketing transport costs.
Meanwhile, in Zambia, the central bank is taking a "go big or go home" approach to tackling inflation. They've cranked up the key interest rate to whopping 13.5%, the highest it's been since 2017.
Senegal's inflation rate has taken a nosedive, plummeting to a measly 2.3% in April.
South Africa is making history, as it is likely to achieve a primary budget surplus for the first time in 15 years. That's right, after more than a decade of deficits, South Africa is finally in the black.
*Data accurate as of the close of markets across the continent
Spotlight Stories
Mud, Sweat, and Solidarity: The Annual Ritual of Replastering Djenne's Great Mosque
Thousands of Malians, buckets and jugs of mud in hand, converge annually on the world's largest mud-brick building for a tradition that's equal parts community bonding and architectural preservation. It's like a giant team-building exercise, but instead of trust falls and awkward icebreakers, you get a UNESCO World Heritage site instead.
The Great Mosque of Djenne, a historic centre of Islamic learning in Mali, has been on UNESCO's World Heritage in Danger list since 2016. The building and the surrounding town have been caught in the crosshairs of conflict between Islamist rebels, government forces, and other groups, making it a challenging place to maintain a delicate mud structure.
But the people of Djenne are nothing if not determined. Each year, before the rainy season starts in June, they gather to replaster the mosque with a new layer of mud. This ritual is essential to keeping the building from falling into disrepair and is a powerful symbol of the community's resilience in the face of adversity.
Mud, Sweat, and Solidarity
The replastering event is a true community effort. Women and girls fetch water from the nearby river to mix with clay, creating the perfect consistency of mud for the job. Men and boys then climb the mosque and apply the new layer, working together to ensure that every inch of the building is covered.
But the annual replastering event hasn't been immune to the challenges facing Mali. The country, along with its neighbours Burkina Faso and Niger, is battling an insurgency by armed groups, some of which are allied with al-Qaida and the Islamic State group.
This insecurity has taken a toll on Djenne's once-thriving tourism industry. The replastering event used to draw tens of thousands of tourists each year, but now, the town's tourism industry has all but disappeared.
Despite these challenges, the people of Djenne remain committed to maintaining their cultural heritage. For the people of Djenne, preserving their heritage is non-negotiable, and we're not surprised.
EACOP: The $10 Billion East-African Gamble
In the heart of Africa, a high-stakes game of oil roulette is underway. The East African Crude Oil Pipeline (EACOP), a megaproject that promises to transform Uganda's economy and provide the world with a new source of oil, is facing a series of challenges that threaten to derail its progress.
A Pipeline of Problems
At nearly 900 miles long, EACOP is set to become the world's longest heated oil pipeline, carrying up to 246,000 barrels of crude a day from Uganda to the Tanzanian port of Tanga. But as construction crews battle the elements, from forest fires to deadly snakes, the biggest hurdle they face is a lack of funding.
Despite the backing of French energy giant TotalEnergies, Chinese investors, and big Persian Gulf backers, EACOP still doesn't have its $10 billion price tag fully covered. The project has become a jagged steppingstone for all involved, with the future of Uganda's economyhanging in the balance.
China's Cold Feet & Total's Tightrope Walk:
China, once seen as EACOP's obvious savior, appears to be getting cold feet. Dealing with its own economic woes, Beijing is now expected to provide just $1.2 billion of the $3.05 billion in debt financing it initially offered, leaving Uganda scrambling for alternative sources of funding.
This hesitation from China sheds light on its changing appetite for megaprojects in sub-Saharan Africa.
For TotalEnergies, EACOP represents a $10 billion bet that could make or break its future in East Africa. If the project fails to secure funding, Total may face a multibillion-dollar write-down on its investment, hitting its earnings and stock price.
The company also faces lawsuits from activists and pressure from shareholders over the pipeline's environmental and human rights impacts. Total must navigate a tightrope between its climate goals and the need for new oil investments in the short term.
Uganda's Generational Gamble:
For Uganda, EACOP is a generational chance to transform one of the world's poorest countries. The government expects the pipeline to add some $10 billion to its GDP and provide much-needed tax revenue and dividends.
But the project has raised concerns about its impact on critical water sources and biodiversity. Uganda's officials remain steadfast in their support for EACOP, seeing it as a bridge to exploit the country's other resources and build infrastructure.
As China's lending to Africa has faded, Persian Gulf countries have emerged as potential saviours for EACOP. Uganda is actively courting investors from the region, with some already committing to the project.
This shift in geopolitical dynamics in Africa reflects a broader trend of Saudi Arabia, the United Arab Emirates, and Qatar vying for influence on the continent. But whether their involvement can match the scale of China's past lending remains to be seen.
Will EACOP become a transformative force for Uganda and a new source of global oil, or will it become a cautionary tale of the risks and challenges of megaprojects in the heart of Africa? Only time will tell.
Africa's Corporate Speed Demons
The Financial Times' third annual ranking of Africa's Fastest Growing Companies, a list of 125 businesses that have not only survived but thrived in the face of the pandemic is here. These are the corporate speed demons, the business world's equivalent of Usain Bolt, leaving their competitors in the dust and making it look easy.
From innovative startups to established industry leaders, these businesses represent the best and brightest of Africa's corporate landscape. They're the ones creating jobs, driving economic growth, and putting the continent on the map.
Do you recognise any on the list?
Food for Thought
“No matter how beautiful and well-crafted a coffin might look, it will not make anyone wish for death."