🔅 Fuel Crisis Chaos in West Africa, Terrorism Takes Over Sub-Saharan Africa, Kenya's Wallet-Wrenching Fuel Tax: What's Next?
Discover the latest challenges shaking Africa: Smuggled fuel prices soar, terrorism surges, Kenya's citizens hit hard by fuel tax hike, and more.
Photo of the day: Lac Abbe, Djibouti
Markets:
🟢 Nigerian SE: 60,108.86 (+1.30%)
🔴 Johannesburg SE: 74,265.04 (+0.40%)
🟢 Ghana SE: 2,785.04 (+1.04%)
🔴 Nairobi SE: 107.19 (-0.02%)
🟢 US S&P 500: 4,368.54 (+0.92%)
🔴 Shanghai Composite: 3,189.44 (+1.23%)
The Dollar's On Notice as BRICS Nations Try to De-Throne It | The dollar’s future has been looking a bit shaky lately, with Brazil and South Africa’s leaders questioning its role in international trade at a Paris conference. Treasury Secretary Janet Yellen stepped in to defend the buck, saying that the US’s deep, liquid, open capital markets and rule of law were the reasons for its dominance. But rival countries like China and Russia are determined to knock the greenback off its throne, launching initiatives like switching to the yuan and buying gold to diversify their reserves. The BRICS countries, that include South Africa, are also pushing to launch a new reserve currency to dethrone the dollar, and Brazilian president Luiz Inácio Lula da Silva asked why they can’t just trade in their own currencies.
*Data accurate as of the close of markets across the continent
Brief & Bright: Africa's Top Five Highlights
🇳🇬 Nigeria's Fuel Crisis: No More Cheap Contraband | Things have been upside-down lately in West Africa, where the price of smuggled fuel from Nigeria has skyrocketed, leaving everyone from motorcycle taxis to black market fuel vendors in a jam. For years, West African nations have relied on cheap contraband fuel from Nigeria to keep things running. But after Nigeria scrapped its fuel subsidy on May 31, the price of a litre of petrol on the black market suddenly doubled. This has left customers feeling ripped off, motorcycle-taxi riders struggling to make ends meet, and petrol stations overwhelmed by queues. Authorities had either turned a blind eye or been complicit in the trade of black market fuel. The informal sector is central to the region’s economic activity, so the sudden disruption has been felt far and wide, and some illicit fuel vendors are now needing to find other sources of income.
⚠️ Terrorism Trends: Sub-Saharan Africa is Now the Hot Spot | The UN’s counter-terrorism experts reported that sub-Saharan Africa is now the hottest terrorism spot on the planet, with a whopping 50% of terror victims last year hailing from the continent. So, what’s going on in Africa? Well, the UN's Assistant Secretary-General Khaled Khiari blamed “local political, economic and social ‘fractures,’ porous borders and ‘identity-based mobilization’” for fueling the spread of al-Qaeda and the Islamic State. The Qatari envoy for counter-terrorism, Mutiaq Al-Qahtani, highlighted West Africa as a particular hot spot, with the tri-border area of Burkina Faso, Mali and Niger being particularly vulnerable.
🇰🇪 Kenya's Fuel Tax: A Punch to the Gut | MPs in Kenya took a swing at citizens’ wallets last week, voting in favour of doubling the value-added tax (VAT) levied on fuel. In a 184 to 88 vote, the ruling party coalition managed to push through a proposal that is expected to add to the already rising cost of living. But hey, at least the government will make a cool $356 million out of it. The leader of the opposition MPs called the decision to pass the fuel tax clause “the saddest day in the history of this country”, and it’s not hard to see why. It’s not the only unpopular proposal being put forward either: A housing fund levy to be paid by salaried workers and an increase in taxes for social media influencers are also in the works. We guess it’s true what they say—when it rains, it pours.
🇸🇩 Warring Factions: Sudan's RSF Seizes Central Reserve Police Base | The Rapid Support Forces (RSF) and the Sudanese army conflict has now spanned 11 weeks and displaced nearly 2 million people. The latest is that the RSF just scored a major victory in Khartoum, seizing the main base of the Central Reserve Police. The base was home to 160 pickup trucks, 75 armoured personnel carriers, and 27 tanks—not to mention boxes of ammunition. This news comes just after reports of ethnic targeting and summary executions in El Geneina and a major uptick in violence in Nyala. The international community is calling for safe passage for civilians and access for aid workers, but no one knows when the fighting will stop. As one resident asked, “Where are the Jeddah talks, why did the world leave us to die alone in Burhan and Hemedti's war?"
🇲🇱 Mali's Referendum: 97% of Voters Say Yes | Mali’s population voted overwhelmingly in favour of a new constitution in Sunday’s referendum, with 97% of the votes cast in favour. Regional powers and Mali's ruling military junta have called the referendum a success, and they say it will lead to a return to civilian rule in 2024. While the proposed changes are controversial, regional bodies are still happy that the junta is sticking to the transition plan and holding a nationwide democratic process. Unfortunately, security incidents forced some voters to flee, and little voting took place in the parts of northern Mali that are controlled by al Qaeda and Islamic State-linked militants. But still, Mali’s population had their say, and they’re making their voices heard: 97% of voters said yes to the new constitution.
Food for Thought
“A healthy person who keeps begging for food is an insult to a generous farmer.”
— Ghanaian Proverb.
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