🔅 China-Africa Belt & Road Projects Slow Down
Plus: Biden asked to cancel $1bn arms sale to Nigeria, Torture wounds in Uganda, Senegal opposition leader faces jail, A charity calls out Europe's double standards on migration, And more... ☕
Photo of the day: Adjamé Market, abidjan, ivory coast
Markets:
🔺 Nigerian SE: 54,520.20 (+0.02%)
🔺 Johannesburg SE: 80,227.19 (+0.95%)
🔻 Ghana SE: 2,410.03 (-0.01%)
🔻 Nairobi SE: 127.66 (-0.15%)
🔺 US S&P 500: 4,105.16 (+1.02%)
🔺 Shanghai Composite: 3,249.03 (+0.96%)
Nigeria: After the Central Bank started circulating new 1,000, 500, and 200 naira notes last year, citizens have been finding it difficult to get their hands on the new cash. The deadline for turning in old notes has already been extended once to February 10th, and Buhari just announced a 60-day extension to April 10th. The old 1,000 and 500 notes can still be swapped at the Central Bank and “designated points,” he said.
Burkina Faso: Endeavour Mining has sold 200 kilograms of gold to the West African country's government. Gold is a universal currency that can be used to purchase foreign currency to shore up reserves. Endeavour is the biggest gold miner in Burkina Faso. It's part of the country's Mining Code, which states that it may acquire gold from mining companies in exceptional circumstances. The country's military leader, Ibrahim Traore, has vowed to crack down on the insurgency, and the sale of gold is helping to fund the recruitment of volunteer auxiliaries to support the army.
*Data accurate as of the close of markets across the continent
INFRASTRUCTURE
China-Africa Belt & Road Projects Slow Down
China's investment and financing of big infrastructure projects in Africa under the Belt and Road Initiative saw a huge drop last year.
It fell 54% last year, down to $7.5 billion from $16.5 billion in 2021. Investment in construction dropped to $4.5 billion last year, compared to $8.1 billion in 2021, and there was no new Chinese funding for African railway projects at all.
Why the change?
China’s policy lenders, such as the Export-Import Bank of China, grew more cautious and started evaluating risks more closely.
The shift to smaller, lower-risk projects was a priority for President Xi Jinping from as far back as 2021, with the Central Bank issuing regulations capping external lending by Chinese banks.
And then, there was a certain pandemic, which caused many Chinese investments to come to a halt. The subsequent global recession led to an increase in US interest, the currency in which most belt and road debt is denominated. This has led to increased borrowing costs, which has put stress on borrowers and reduced their appetite for new loans.
Will the investment come back to previous levels?
It depends on how the Chinese economy recovers from its zero-Covid policy. But even without the virus, analysts do not expect belt and road activities in Africa to return to previous levels soon because of the above reasons.
If you’re a regular here, hit that share button. Tell your friends and colleagues about how Baobab will get them smarter on African business, money and current affairs in less than 5 minutes a day, for free!
OTHER HEADLINES
Across the Continent
🇳🇬 Nigerian Military Abuses Spark US Response | A recent Reuters investigation into the Nigerian military has sparked a response from the US House of Representatives Foreign Affairs Committee, which has called on President Joe Biden to nix a nearly $1 billion arms sale to the African nation. They’ve also asked for a review of security assistance and cooperation programs, including a risk assessment of civilian casualties and abuses resulting from the arms assistance. The investigation found that since 2013, the Nigerian military has conducted a secret, illegal abortion program, and has also targeted and killed children. Human rights experts say these actions could constitute war crimes.
🇺🇬 Torture in Uganda | Ugandan authorities have been denying torture allegations against their security forces, even as a man who had been missing resurfaced with raw wounds on his chest. Eric Mwesigwa claims he was tortured by security personnel, a claim backed up by the famous singer and opposition figure Bobi Wine. The military has dismissed the allegations, but it hasn't been enough to stop people from calling out the government for its lack of action. The incident has highlighted the country's long history of torture by security forces, a legacy that can be traced back to the days of Idi Amin. Meanwhile, President Yoweri Museveni, who has been in power since 1986, denied involvement in the torture and blamed it on security agents enforcing his authority. Yet, the government announced last week it would not be renewing the local mandate of the United Nations Human Rights Office...
🇸🇳 Senegal's Opposition Leader in Hot Water | The presidential elections in Senegal next year just got a lot spicier. Ousmane Sonko, the top opposition leader, was “escorted” from his car by police after a court appearance—where his trial was postponed until next month—and his supporters clashed with police. It’s a situation that has been building for a while: Sonko is being sued for defamation and public insults, and he faces a potential 10-year jail sentence if convicted on rape charges. His supporters think the government is trying to keep him out of the running.
🌊 8,400 Migrants Perished at Sea | Europe’s approach to migration is getting called out by a charity group for having “double standards”. 8,400 people perished at sea while attempting to cross the Mediterranean to Europe over the past four years, according to Save the Children’s report. They found that while Europe opened its doors to 8 million refugees from Ukraine, those from Middle Eastern and African countries were met with pushback, violence, and unlawful deportations. To make matters worse, the UN refugee agency reported that these deportations were “carried out in a violent and apparently systematic way.” While Europe is the destination of dreams for many, this report is a stark reminder that the journey to get there is still incredibly dangerous.
🎤 Nigeria is Taking Over the NBA All-Star Game | It’s a takeover! Three of Nigeria’s hottest music stars, Tems, Burna Boy, and Rema, are performing at the NBA All-Star Game this Sunday. In a halftime show that promises to be an Afrobeats-themed extravaganza, these artists are bringing the African beat to one of the year's biggest sporting events. Tune in to see if the halftime show can draw back some of the viewers the NBA has lost in recent years!
FOOD FOR THOUGHT
Proverb of the Day
“It is the duty of children to wait on elders and not the elders on children.”
— Kenyan Proverb.