🔅 Africa's Big Players and Even Bigger Challenges & Nigeria's Bold Monetary Moves
Plus, A Vision for Open Skies & Mauritius's Tourism Forecast
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Brief & Bright: Africa's Top Five
Africa's Economic Tightrope: Big Players, Bigger Challenges
In the grand bazaar of Kenya's economy, a few stall owners have spread out their goods a little too wide, leaving little room for new vendors. This tale of economic dominance is not unique to Kenya but is a common denominator of African markets, according to The Economist.Â
In the spotlight, we have Kenya's EABL (the beer company) and Safaricom (the telecom company), with market controls so tight their profit margins are equally as high.
Problem is, while these giants thrive, the market's health wanes. The barriers erected around these behemoths stifle competition, innovation, and, ultimately, consumer choice and access.
Indeed, Kenya's budding entrepreneurs face a Herculean task to access the market, navigating a labyrinth of bureaucracy, intimidation, and corruption, making David's battle with Goliath look like a friendly arm wrestle.
At the heart of this saga is the cosy relationship between politics and business, where interests intertwine like vines, choking the potential for genuine reform. With politicians moonlighting as business moguls, the state apparatus becomes a tool not for public good but for guarding the golden geese of the elite.
Unlocking the Skies: A Vision for Africa's Air Travel Future
The head honcho of Ethiopian Airlines is charting a course towards a sky without borders across Africa, pushing for a continent-wide open skies agreement. His is a vision where airlines glide freely across African nations, stirring up competition and therefore slicing the hefty price tags for passengers. But his dream faces strict national protections that have been put in place by governments across the continent keen on cocooning their respective carriers.
Launched with fanfare in 2018, the Single African Air Transport Market initiative saw 37 countries signing on, yet its wings are clipped as full implementation is yet to take off. This hesitance to agree to the initiative has left airlines navigating a maze of bilateral, government-to-government agreements.
Despite Africa's airspace teeming with potential, thanks to economic upswings and an expanding middle class, it captures a mere 2% of global air traffic. It's a stark contrast to the continent's bustling populations and burgeoning aspirations for mobility.
The call to liberalize African aviation is not just about easing travel; it's about unleashing economic potential, fostering connectivity, and making the skies a bridge rather than a barrier.
Nigeria's New Central Bank Chief Takes the Bull by the Horns
Nigeria's monetary maestro, Olayemi Cardoso, has finally stepped into the spotlight, and oh boy, did he make an entrance. After a five-month suspenseful wait, he chaired his first monetary policy committee meeting and decided to go big or go home—raising borrowing costs by 4 percentage points to an eye-watering 22.75%.
This move is Cardoso's opening gambit in a high-stakes game to curb an inflation rate that's sprinting like it's late for a meeting, and to give a much-needed pep talk to a currency that's been limping since his arrival. Will this be enough to win back the confidence of investors and put the economy back on track?
President Bola Tinubu is on a quest to bring order to Nigeria's economy, where high living costs have begun sparking protests. He started by axing fuel subsidies and letting the naira roam free—a bold move that's turbo-charged inflation and turned pockets inside out.
Mauritius's Tourism Roller Coaster: The Highs, The Lows, and What's Next
Mauritius, the island nation known for its pristine beaches and luxury resorts, is bracing for a change in the tide of its tourism fortunes. After riding the high waves of post-pandemic revenge travel—where tourists, starved of vacation spots by COVID-19 restrictions, descended en masse—the island's tourism sector is gearing up for a milder season.
Last year, Mauritius's tourism sector was popping champagne as gross earnings surged by one-third compared to 2022, with visitor numbers swelling to almost 1.3 million—a significant rebound that spelt good news for the local economy. However, like all good parties that must come to an end, the boom is expected to simmer down in 2024.
Forecasters are eyeing a more subdued arrival figure of 1.4 million visitors for 2024, roughly hitting the pre-pandemic benchmark. As other destinations open up, global competition is stiffening, and it looks like Mauritius could get crowded out of the market.
Food for Thought
“The child you sired hasn’t sired you."
— Somali Proverb