🔅 African Airlines are Flying Empty
Good morning ☕ In Today's Issue, Ghana's president reassures investors, DRC celebrates, and South Korea is in mourning…
Markets
🔻 Nigerian SE: 43,839.08 (-0.17%)
🔺 Johannesburg SE: 66,529.56 (+0.22%)
🔻 Ghana SE: 2,460.65 (0.00%)
🔺 Nairobi SE: 128.80 (+0.29%)
🔻 US S&P 500: 3,879.64 (-0.55%)
🔻 Shanghai Composite: 2,893.48 (-0.77%)
*Data accurate as of close of markets across the continent
Ghana: President Nana Akufo-Addo said on Sunday that talks with the International Monetary Fund (IMF) are going well. He reassured investors that the negotiations would not lead to a loss of money from investors, in reference to recent reports of a possible restructuring. The Ghanaian cedi has plummeted more than 40% this year. The president said the government aimed to restore macroeconomic stability and cut the debt-to-GDP ratio to 55% by 2028. The IMF currently estimates Ghana's debt-to-GDP at about 90%.
Global Markets: Some observers are beginning to compare this year's depreciation of US tech stocks with the bursting of the dot-com bubble in 2000-2002. The Nasdaq has lost over $8 trillion in value so far, while the Dow Jones (which focuses on industrial stocks) is performing better than it ever has for the month of October.
BUSINESS
African Airlines are Flying Empty
What is Happening:
African airlines are still operating below 40 per cent of their routine capacity despite easier movement restrictions following the Covid-19 pandemic, according to data from the African Airlines Association (AFRAA).
AFRAA estimates that African airlines had resumed traffic on 99.2 per cent of routes they operated in before the pandemic by September.
Meanwhile, jet fuel prices continue to rise. Year to date, the global average price per barrel is $142. This has resulted in an estimated $131.6 billion fuel bill for airlines worldwide for the whole year.
Why it Matters:
The pandemic has devastated the airline industry, with many airlines struggling to stay afloat.
The AFRAA's data shows that African airlines are still struggling to recover from the pandemic, with only a small percentage of their pre-pandemic capacity.
This is having a ripple effect on the broader economy, with the AFRAA estimating a $3.5 billion revenue loss for 2022, equivalent to 20 per cent of 2019 full-year revenues.
ACROSS THE CONTINENT
Other Headlines
🇧🇫 Burkina Faso's army has announced that 15 soldiers and volunteer militiamen were killed in an attack by Islamist militants on Saturday. The attack occurred in Gourma province, and four soldiers were wounded. Eleven soldiers are still missing. This is the latest in a series of attacks by militants in Burkina Faso, which has seen a rise in violence in recent years. The country's government was overthrown in a coup last month, and the violence has displaced almost 2 million people.
🇨🇩 In the wake of the expulsion of Rwanda's ambassador to the Democratic Republic of the Congo (DRC), Vincent Karega, demonstrators have taken to the streets in support of the DRC government and its army. The African Union (AU) has called for an immediate ceasefire in the region as the M23 rebel group continues its offensive against the Congolese army. Tens of thousands of civilians have fled their homes since fighting broke out ten days ago. There have been no reported civilian casualties thus far. However, the Rwandan government continues to deny any involvement with the M23 and instead accuses the DRC of collaborating with Rwandan Hutu rebels.
AROUND THE WORLD
South Korea in mourning
What happened?
More than 150 people have died after a crowd surged into a narrow alley in Seoul's Itaewon nightlife district. The cause of the surge is unclear, but witnesses say people fell on each other “like dominoes”, and some victims were bleeding from their noses and mouths while being given CPR.
An investigation is underway, and authorities are focused on reconstructing the chain of events leading up to the surge. Calls for accountability have grown in the press and online after witnesses reported seeing a relatively small number of police on the streets in relation to the size of the crowds.
The disaster prompted the cancellation of Halloween events across the country, and a period of national mourning has been declared.
Why does it matter?
The disaster in Itaewon is the deadliest in South Korea since 2014, when 304 people, primarily high school students, died in a ferry sinking.
The incident will likely draw public scrutiny of what government officials have done to improve public safety standards since the ferry disaster.
FOOD FOR THOUGHT
Proverb of the Day
“In the moment of crisis, the wise build bridges and foolish build dams."
— Nigerian Proverb.