🔅 Congo's Questionable Choice for a High-Stakes Project & Uganda Takes on the US
Plus, Burna Boy Turns Down $5m Because of Weed & Shell's Namibia Plans Keep Growing
Photo of the day
Rocky outcroppings are a prominent feature of this Sahara Desert landscape in Chad.
Markets:
🟢 Nigerian SE: 70,479.62 (+0.40%)
🟢 Johannesburg SE: 72,856.18 (+0.39%)
🟢 Ghana SE: 3,137.40 (+0.38)
🟢 Nairobi SE: 86.04 (+0.35%)
🟢 US S&P 500: 4,363.40 (+0.12%)
🟢 Shanghai Composite: 3,058.41 (+0.91%)
Nigeria's Stock Market Hits a High: But Will Foreign Investors Finally Come to the Party? | Nigeria’s stock market has reached a record high of 70,000 points (see above), thanks to some recent reforms and a bit of good old-fashioned inflation. President Bola Tinubu got the ball rolling with changes to the country’s foreign exchange market when he came to power, as well as the elimination of a costly fuel subsidy. Since then, stocks have soared 35%, as local funds have jumped back into the market. But where are the foreign investors? They’re still playing hard to get due to currency issues and a lack of confidence in the central bank’s ability to manage the economy. So, while the party is going strong for now, some analysts are still waiting on the sidelines for better FX inflows and consistent liquidity measures.
*Data accurate as of the close of markets across the continent
Brief & Bright: Africa's Top Five
The Start-up That Won Big: Congo's Questionable Choice for a High-Stakes Project
A Canadian start-up operating out of a private home landed a lucrative deal with the Democratic Republic of Congo to extract methane from the depths of a volatile lake. The only catch? The company didn't meet the financial requirements for the project. But hey, who needs qualifications when you've got connections? Congo's President Felix Tshisekedi, who is seeking re-election, has promised to clean up the country's opaque reputation in the oil and gas sector, and although this project was auctioned off under a law meant to promote transparency, it ended up going to a company that didn't make the cut. The lucrative contract involves extracting methane from Lake Kivu, also known as the "killer lake" for its risk of deadly eruptions. It has the potential to provide power to some 80% of Congolese citizens who currently have no access to electricity, but its massive methane potential could backfire in the wrong hands; you need seasoned experts capable of properly reinjecting water and by-products to avoid dangerous carbon dioxide and hydrogen sulfide eruptions. In other words, maybe it's not the best idea to hand over a technically complex project to a company operating out of a private home.
Burna Boy Turns Down $5 Million Offer for a Show in Dubai Because of Weed
Burna Boy, the Nigerian crooner who has taken the music world by storm, recently revealed that he turned down a $5 million offer for a show in Dubai. Why? Because he wouldn't be able to smoke weed while he was there. In a video clip, Burna Boy can be seen singing about his love for marijuana during a performance, and he's not afraid to turn down big bucks in order to stay true to his plant-loving ways. In fact, he recently launched his own cannabis brand in his home country, where smoking weed is still heavily stigmatized.
Uganda vs USA: A Trade Tiff Over Human Rights
Uganda's President Museveni has a message for the US: "You're not that special." After Washington removed Kampala from a major trade pact due to human rights violations, Museveni took to social media to tell Ugandans not to worry. He believes the US is overestimating its importance. Although Museveni asked Ugandans to remain calm, his son-in-law and senior aide, Odrek Rwabwogo, didn't seem as chill about the situation. He says the decision will hurt Ugandan farmers and small business owners. In case you're wondering, the trade pact in question was launched in 2000, is called AGOA, and it offers duty-free access into the US (the world's biggest consumer market) for African countries that meet democratic criteria. But the US is cutting off several nations, including Uganda, due to "gross violations of internationally recognized human rights." This includes Uganda's recently passed anti-gay law. According to AGOA's website, a year before the pandemic (2018/19), Uganda’s exports to the US were valued at $1 million. In 2019/2020, the exports grew to $3.4 million, and by the close of 2021, they rose to $ 5.1 million. Does that sound like much to you?
Shell's Namibia Plans Keep Growing
Shell is heading to Namibia for some oil exploration in the next 6 to 9 months and seems pretty pumped about it. According to CEO Wael Sawan, there's "encouraging data" that could lead to the development of a whole new oil basin in the southern African country. Shell and TotalEnergies have already found some promising oil reserves in Namibia, with Shell saying they would be investing a quarter of their deep water exploration budget in the country as a result. Their overall exploration budget? A cool $1 billion.
Record-Breaking Boat Trips To Europe
Over 32,000 migrants have made the treacherous journey from West Africa to the European Union territory this year. The boats come mostly from Senegal, but also from Gambia, Mauritania, Morocco, and Western Sahara. The journey is no joke—1,600 km of difficult sailing on old fishing boats, with a high risk of shipwrecks or disappearing in the Atlantic. The situation in the region is a major push factor for people in search of a better life; in Senegal, for instance, political unrest, a lack of jobs, and depleting fishing stocks are driving people out. The record number of people risking their lives led to the Spanish Interior Minister flying to Dakar last week, urging the government to stop boats from leaving, as over 500 people have died on this route so far this year (although that is most likely an undercount).
Food for Thought
"One who possesses much wisdom has it in the heart, not on the lips."
— Ugandan Proverb