Plus: Uganda’s oil rush, US/China/Russia’s scramble for S. Africa’s heart, A journalist’s death in Rwanda, And much more… ☕
Photo of the day: Jazeera beach day, Mogadishu, Somalia
If you’re a regular here, hit that share button. Tell your friends or colleagues about Baobab, and how it’ll get them smarter on African business, money and current affairs in less than 5 minutes a day, for free!
Markets — Year to Date:
🔺 Nigerian SE: 52,594.68 (+2.62%)
🔺 Johannesburg SE: 79,269.77 (+8.52%)
🔻 Ghana SE: 2,434.44 (-0.39%)
🔻 Nairobi SE: 124.27 (-2.51%)
🔺 US S&P 500: 3,972.61 (+0.88%)
🔺 Shanghai Composite: 3,264.81 (+4.76%)
Google's Cuts: Alphabet, Google's parent company, is letting go of 12,000 employees worldwide. That's 6% of the total workforce... This is just the latest round of tech layoffs, following Amazon's (18,000) and Microsoft's (10,000) announcements of job losses. Are tech job cuts a warning for the broader economy?
Nigeria's $50 Billion Debt Burden: What's Nigerian President Muhammadu Buhari's final move before he leaves office? A whopping $50 billion overdraft on the nation's debt pile. Talk about going out with a bang. The legality of this move is up for debate, but it's a pretty clear indication of how Buhari's presidency has gone since 2015... Nigeria's oil production has tanked, violence-related deaths are up, unemployment and under-employment are rampant, and 25 million people are facing hunger this year. And, in a move that's sure to make Buhari's successor's life more complicated, the president has ignored regulations and put the debt at 50% more than previously thought.
*Data accurate as of the close of markets across the continent
ECONOMY
Africa at Davos
Davos is the name of a ski resort town in Switzerland. It is also the location of the Annual Meeting of the World Economic Forum (WEF). This non-profit organization brings together business leaders, politicians, academics, and other experts to discuss and address global issues.
The meeting is held annually in January, and critics have argued that the forum primarily serves the interests of the world's elite — not necessarily the people of other developing regions, including Africa.
Not anymore, because Africa is vying to take centre stage:
The continent is showcasing itself at Davos in a very African way. You would have been able to find 'Africa House' on the promenade, showing its colours, costumes, and culture — and its entrepreneurial spirit. Africa House was a platform for African businesses and entrepreneurs to network, build relationships, and show their activities to global leaders. It was launched in 2020 at the World Economic Forum's 50th annual meeting, and since then, it's been a hit.
Global investors are paying attention. There's been a big turnout for panels on entrepreneurship and technology at the Africa House. African startups, especially in Nigeria, South Africa, Kenya, and Egypt, have seen a rise in funding, with a record of $2 billion in 2021.
The IT sector is taking centre stage:
The success of the Kenyan mobile money platform, M-Pesa, has been a major driving force behind the African IT sector. Launched in 2007, its mobile payments have driven financial inclusion in Africa, and it now moves around 40% of Kenya's GDP.
Yes, Africa was a late bloomer on the tech scene, but it's determined to make up for the lost time. Entrepreneurs are using technology to develop solutions adapted to their own realities.
And it's working. Mamadou Toure, the founder of Ubuntu Tribe, said: "For a very long time the African tech industry wasn't even considered a part of the innovation part of the world. It started changing with the introduction of mobile money, mobile payment, where Africa pioneered and led the world in terms of mobile banking."
OTHER HEADLINES
Across the Continent
🇷🇼 Rwandan Journalist's Death | John Williams Ntwali, a journalist known for his critical stories about the government, died in a car accident on Wednesday. While the police are saying it was just an accident, critics of President Kagame have a habit of disappearing or ending up dead in suspicious circumstances. Ntwali had reported on human rights abuses, opposition arrests, and forced evictions and had said in an interview last year that "those who try to speak out, they are jailed - harassed, intimidated or jailed. Second, forced to flee their country. Three, some of them disappear in thin air. Or even, they die."
🇧🇫 Burkina Faso's Protest Against France | The people of Burkina Faso took to the streets on Friday to send a clear message to France: We don't need you. Hundreds gathered in the capital Ouagadougou to chant anti-France slogans and set fire to French flags. Relations between the former coloniser and the West African nation have soured since the two military coups last year. The French army, which has been stationed in the country since 2015 to fight the Islamist insurgency, has been seen as ineffective. The tensions between France and Burkina Faso have only been amplified in recent months, with the suspension of RFI radio broadcasts, the request for the replacement of France's ambassador, and the withdrawal of French troops from the country. As for the Burkina Faso people, they just want their country to be secure again—over 60 were kidnapped by armed assailants last week but were subsequently released. The group included 39 children, including four infants, who were out gathering wild fruit near the town of Arbinda when they were taken. The jihadi violence linked to al-Qaida and the Islamic State group has been wreaking havoc in the West African nation for years, leading to thousands of deaths and the displacement of nearly 2 million people. The military junta that took over in September is still grappling with restoring security.
🇺🇬Uganda's Oil Rush | Uganda is moving toward developing its oil resources and getting them ready for export by 2025. After years of stalled progress due to a lack of infrastructure and government-company disagreements, the country has finally started to make some progress. The government announced that a third oil licensing round would take place in May, and a US firm is planning to build a $4.5 billion, 60,000 barrel-per-day refinery to produce a range of refined products. A cabinet meeting on Monday approved the application for a $3.5 billion pipeline that will transport the country's crude to international markets. Environmentalists and rights activists have mounted a campaign against the project, but that hasn't stopped Uganda from trying to cash in on its oil reserves, estimated at 6 billion barrels (with 1.4 billion barrels recoverable).
🇿🇦 Russia and China vs the West: Who Will Win South Africa's Heart? | Russia and China are sailing their way into South Africa's heart. Next month, the two nations will join the African nation in conducting a joint naval exercise off the coast of Durban and Richards Bay. While South Africa's opposition party has criticised this, the government insists it is still neutral in the conflict between Russia and the West. The whole situation is pretty tense, considering the war in Ukraine, sanctions, and South Africa's membership in the BRICS bloc. The US and the EU had hoped that South Africa would side with them and lead other African countries to do the same, but it's not looking like that's going to happen. Joe Biden and Antony Blinken have both visited the nation in an effort to strengthen ties, and now Janet Yellen is due to pay a visit. But all this is happening around the same time Russian Foreign Minister Sergey Lavrov is scheduled to meet with South Africa's Foreign Minister. The battle for South Africa's loyalty is on.
FOOD FOR THOUGHT
Proverb of the Day
“No one became wealthy because they broke a holiday and no one who gained weight because they broke a fast.”
— Ethiopian Proverb.
Like Baobab?
Don’t keep it to yourself. Share it with friends and colleagues using the easy one-click button below:
Otherwise, let us know how we’re doing by replying to this email.