🔅 Ethiopian army retakes key cities
The government's gains represent the most significant shifts since late last year.
Good morning ☕
In today’s issue, South Africa withdraws contentious benefits for ministers, a child is admitted for malnutrition every minute in Somalia, and Beijing delays the release of key economic figures…
Markets
🔻 Nigerian SE: 45,366.32 (-2.16%)
🔺 Johannesburg SE: 66,351.00 (+0.24%)
— Ghana SE: 2,460.44 (0.00%)
🔻 Nairobi SE: 129.73 (-0.04%)
🔺 US S&P 500: 3,726.61 (+1.32%)
🔻 Shanghai Composite: 3,080.96 (-0.13%)
*Data accurate as of close of markets across the continent
Somalia:Â The International Monetary Fund reached a staff-level agreement with Somalia that will allow the East African country to receive approximately $10 million. The agreement came after committed economic reforms despite a prolonged drought, the Russia-Ukraine war, and ongoing security concerns. The IMF said that if Somalia continues to make steady progress on reforms, it could earn global debt forgiveness by late 2023, reducing its debt to around $550 million from $5.2 billion.Â
Global Markets:Â A Bloomberg poll of mostly Wall Street economists predicts a 60% chance of a downturn in the US in the coming year, up from 50% a month ago. Bloomberg's model itself is even more pessimistic, putting the likelihood of a recession in the next 12 months at 100%.
SECURITY
Ethiopian army says it has captured towns from Tigray forces
According to the government, the Ethiopian army has taken three towns in Tigray's northern region, one to the northwest and two to the south of the regional capital Mekelle.
For the past two years, the Ethiopian military and its allies, including troops from neighbouring Eritrea, have been fighting Tigrayan forces in a conflict that has killed thousands, displaced millions, and put thousands on the verge of famine.
One of the captured towns is Shire, a large town with an airport located about 140 kilometres (90 miles) northwest of Mekelle.
The Tigray conflict stems from long-standing rivalries between regional power blocs for control of Ethiopia as a whole, as well as disagreements over how power should be distributed between federal and regional authorities.
Late last year, Tigray forces advanced to as far as just 190 kilometres from the national capital Addis Abeba before being pushed back. The government's gains this week represent the most significant shifts since that time.
ACROSS THE CONTINENT
Other Headlines
🇸🇴 According to UNICEF, a child is admitted for malnutrition treatment every minute in Somalia. A severe drought threatens to kill children on a scale not seen in half a century. The situation is already worse than in 2011, when famine killed more than 250,000 people.
🇿🇦 Sasol, a South African petrochemicals company, announced on Tuesday that it would collaborate with steelmaker ArcelorMittal South Africa to investigate carbon capture technology and green hydrogen steel production. Green hydrogen is a cleaner energy source that is produced by splitting water into hydrogen and oxygen using renewable energy sources such as solar and wind, but the technology is still in its infancy and relatively expensive. Sasol is the world's largest producer of coal-based fuel products and chemicals, and ArcelorMittal South Africa is Africa's largest steel producer. Both companies are aiming for net zero carbon emissions by 2050, in line with the South African government's goal of reducing greenhouse gas emissions.
AROUND THE WORLD
Beijing delays key economic figures as leaders meet
China has postponed the release of its most recent economic growth figures, which were scheduled to be released as the Communist Party's leadership meets.
The National Bureau of Statistics (NBS) did not provide an explanation for the delay, which was surprising given that figures were being released even during the covid-19 pandemic. Some see this as a sign of a further slowdown in the world's second-largest economy.
A new date for the figures' release has yet to be set.
China has previously stated that it may fall short of its annual economic growth target of 5.5%.
Mr Xi, who is expected to be confirmed for a historic third term at this week's party congress, also indicated on Sunday that there would be no immediate relaxation of his aggressive zero-Covid strategy, which has hampered China's economic growth.
FOOD FOR THOUGHT
Proverb of the Day
"A roaring lion kills no game."
— Ugandan Proverb.