🔅 Africa's the Next Fashion Hotspot & A Huge Chocolate Potential
Plus, US Boots Uganda, CAR, Gabon & Niger, & South Korea Looks To Africa for Graphite
Photo of the day
Burkina Faso
Markets:
🟢 Nigerian SE: 69,236.19 (+1.65%)
🔴 Johannesburg SE: 69,871.16 (-0.21%)
— Ghana SE: 3,125.62 (+0.00)
🔴 Nairobi SE: 88.56 (-0.30%)
🟢 US S&P 500: 4,183.88 (+0.41%)
🔴 Shanghai Composite: 3,018.77 (-0.09%)
Rwanda: International Monetary Fund staff and Rwanda have agreed on a new credit facility worth a cool $262 million. The money will help Rwanda deal with some of the fallout from climate-related disasters like droughts and floods, as well as the ongoing challenges of the COVID pandemic. Hopefully, this cash infusion will also help with some much-needed reconstruction efforts after the severe floods in May. IMF board consideration of the agreements is tentatively scheduled for December.
*Data accurate as of the close of markets across the continent
Brief & Bright: Africa's Top Five
"Africans Want to Wear Africa" - The Growing Potential of Africa's Fashion Industry
Move over Paris, London, and Milan—the fashion world has a new hotspot: Africa. According to a new report from UNESCO, the continent's fashion industry is booming and could triple its $15.5 billion annual earnings with the right investments. The entire industry is growing, and movies and social media are partly to blame for driving the demand for African fashion brands. Africa leads web traffic on mobile devices, also allowing young designers across the continent to set up and market fashion houses globally with their unique and cultural designs. As Omoyemi Akerele, founder of Lagos Fashion Week, puts it, "Africans want to wear Africa." And why wouldn't they? With the mix of traditional and modern styles, colors, and techniques, African fashion is taking over the world.
US to Kick Uganda, Gabon, Niger, and CAR Out of Special Trade Program
Looks like some countries are getting a major side-eye from the US. President Biden announced that Uganda, Gabon, Niger, and the Central African Republic are getting the boot from AGOA. This special trade program gives duty-free access to the US for certain African countries. These four countries have either been violating human rights or not making progress towards democracy. The news comes just before South Africa hosts the 20th AGOA forum this week. It's way more than a slap on the wrist; many of the countries will likely feel the economic impact of being kicked out. Uganda passed a controversial anti-homosexuality law earlier this year, while Gabon, Niger and CAR underwent coups and are currently under military rule. Burkina Faso, Mali, and Guinea have all been expelled from AGOA in the past for similar reasons.
Fairafric: Chocolate, Cocoa, and Economic Development
You may not know this, but Africa produces 70% of the world’s cocoa beans. That’s a lot of chocolate potential. But here’s the kicker: Africa only makes 1% of the chocolate. Prominent American and European companies do the rest. Figures like these make you realise how much benefit the continent would gain if value addition to commodities was made locally, rather than once exported outside the continent. Take Fairafric, for instance. This company manufactures chocolate in Ghana, providing stable, well-paying jobs and supporting other connected local businesses. The goal is to keep more profits from chocolate sales in Ghana, rather than seeing it all disappear overseas. Fairafric buys beans from small farmers and pays a premium for organically grown ones. Not only that, it provides health insurance for workers, free transportation, and even a canteen for all shifts. The New York Times has an interesting read on how the company was started and how it has impacted its community - you can read it here.
Scabies Strikes Back: The Climate Crisis and Malawi's Health Woes
Malawi is dealing with another health crisis, and this time it’s not cholera—it’s scabies. The itchy, contagious skin disease has returned to the country, with over 4,000 cases reported in the past week. Experts believe the climate crisis is to blame. The current heatwave, high humidity, and water shortages have made people more vulnerable to disease outbreaks, and Malawi’s lack of access to clean water only adds fuel to the fire. But don’t worry, the government is on it. They’re doing mass awareness campaigns and asking for help from other organizations. Even though low-income countries and small island developing states contribute the least to global emissions, they seem to be facing the harshest of health impacts from climate change. Only a few months ago, Malawi's cholera outbreak killed more than 1,800 people and affected a total of 58,982 people.
South Korea Turns to Africa For Graphite
South Korea is facing a bit of a dilemma regarding graphite—the key material used in electric vehicle batteries. China is the top producer of graphite and they recently tightened export controls on it, which is not great news for South Korean battery makers. So, what’s a country to do? Well, they’re turning halfway across the world to Africa for help instead—specifically Mozambique and Tanzania, which have considerable reserves of the material.
Food for Thought
"Even the king of the forest, the lion, protects himself against flies."
— Ghanaian Proverb