🔅 "Africa must have natural gas..."
Today’s Issue: Ethiopia is selling a stake in its state-owned telecom network, Congolese flee M23, and the UK is facing a harsh winter… ☕
Markets
🔺 Nigerian SE: 44,046.94 (+0.54%)
🔻 Johannesburg SE: 72,893.10 (-0.14%)
🔺 Ghana SE: 2,462.80 (+0.5%)
🔺 Nairobi SE: 129.01 (+0.88%)
🔻 US S&P 500: 3,974.47 (-0.43%)
🔻 Shanghai Composite: 3,119.98 (-0.45%)
*Data accurate as of close of markets across the continent
The Continent: Actis, a private equity firm, is looking to invest up to $300 million annually in renewable energy and gas-fired power projects in Africa. The firm has already invested over $2 billion in energy infrastructure on the continent over the past two decades. Africa has just a 2% share of global renewable capacity compared with 8% for South America and 48% for Asia. Growing the continent's renewables capacity presents an opportunity for investors, but the firm will be weighing its potential return on investments versus other regions.
Global Markets: The U.K. is facing a brutal winter as prices remain high. The overall inflation rate jumped to 11.1% in October, the highest rate in 41 years and up from 10.1% in September. The latest figures come ahead of Thursday's Autumn Statement, in which Chancellor Jeremy Hunt is expected to announce billions of pounds worth of public spending cuts and tax rises.
CLIMATE CHANGE
African Development Bank to COP27: "Africa must have natural gas..."
What is Happening?
African countries are pushing for the right to use their natural gas reserves at the COP27 climate talks, even as some nations move to reduce the use of fossil fuels.
African Development Bank President Akinwumi Adesina said, "Africa must have natural gas to complement its renewable energy."
The African Development Bank is a multilateral development bank established to promote economic development and social progress in Africa. The AfDB is seeking to raise $25 billion through the African Adaptation Acceleration Program — the biggest created by any comparable lender, Adesina said. It has also put 85% of its investments between 2016-2021 into renewable energy.
Why Does it Matter?
With the world currently on course to miss its climate goal of limiting global warming to 1.5 degrees Celsius above the pre-industrial average by mid-century, one focus at the conference has been on countries accelerating their shift to renewable energy.
But even if Africa were to triple its production of natural gas from current levels, its contribution to global emissions would only rise by 0.67%.
What's more, "We must recognise the special nature of Africa. Africa has the highest level of energy poverty in the world," Adesina said. Six hundred million people in Africa do not have access to electricity today.
The final wording of any agreement reached at the talks will be critical in determining the future role of natural gas (and other fossil fuels).
ACROSS THE CONTINENT
Other Headlines
🇪🇹 Ethiopia has announced that it is reactivating the process of selling a 40% stake in state-owned Ethio Telecom, as well as plans to issue a second telecom licence. Efforts to lure investment have been hit by the war in northern Tigray that has killed thousands. The government hopes the recent ceasefire agreement will help attract investment. In May 2021, a consortium led by Kenya's top operator, Safaricom, won the first international licence with a bid of $850 million. It is hoped that this will serve as a guide price for the other licence.
🌡️ The International Rescue Committee (IRC) is urging donors to provide cash assistance to East Africa, where a severe drought is threatening the lives of tens of millions of people. The current drought in East Africa has been compounded by climate change and soaring global food prices. The IRC estimates that nine million cattle have died across the region due to it. Families are fleeing their homes in search of food and water, putting strain on resources in cities with means.
🇨🇩 The recent fighting in the Democratic Republic of Congo between the army and M23 rebels has caused a fresh wave of displacement, with many fleeing toward the city of Goma. Former Kenyan President Uhuru Kenyatta is currently there, appealing for calm and urging warring parties to engage in dialogue. The rebel group rose to prominence about a decade ago when its fighters seized control of Goma, the largest city in the region. The recent fighting has put the city of Goma at risk again, and tens of thousands of people have already been displaced.
AROUND THE WORLD
Donald Trump to run again
What Happened?
Donald Trump announced that he is running for president in 2024, just two years after he lost the election to Joe Biden.
This is unusual, as most presidents wait at least four years before announcing their candidacy for re-election. Some believe that Trump is doing this in order to steal a march on potential rivals for the Republicans' White House nomination.
Although Trump is the first to enter the race and instantly becomes the front-runner, he is expected to face serious contenders. These may include his own former Vice-President Mike Pence, and rising star Florida Governor Ron DeSantis.
Why it Matters:
Trump's announcement comes as some fellow Republicans blame him for the party's lacklustre performance in last week's midterm elections. The party is on the verge of holding power in the U.S. House of Representatives, but it would be by a slim margin.
Meanwhile, Democrats have retained control of the Senate and may even bolster their majority after the December run-off in Georgia.
Trump is also being investigated on several fronts, including a justice department investigation into the removal of files marked classified from the White House to Mar-a-Lago at the end of his presidency.
FOOD FOR THOUGHT
Proverb of the Day
“The only time you will see a quiet snake is when it has swallowed another snake.”
— Kenyan Proverb.