🔅 Ghana finance minister asked to go
Move comes as Ghana is amidst its worst economic crisis in a generation
Good morning ☕
Did you know: UK’s new PM, Rishi Sunak, is the son of immigrants who came to the UK from pre-colonial Kenya and Tanzania?
Markets
🔺 Nigerian SE: 44,788.14 (+0.33%)
🔺 Johannesburg SE: 65,850.84 (+1.35%)
🔺 Ghana SE: 2,461.06 (+0.52%)
🔻 Nairobi SE: 127.35 (-0.33%)
🔺 US S&P 500: 3,838.00 (+1.07%)
🔻 Shanghai Composite: 2,976.28 (-0.04%)
*Data accurate as of close of markets across the continent
Nigeria: A Nigerian court has ordered the seizure of two properties and cars owned by former oil minister Diezani Alison-Madueke, in the latest ruling related to graft allegations against her. Alison-Madueke was a key figure in the administration of former President Goodluck Jonathan. She served as petroleum minister from 2010 to 2015 but has been dogged by corruption allegations since she left office. High Court Judge Mobolaji Olajuwon issued the final forfeiture of the former minister's $3 million homes and cars in Abuja. Alison-Madueke's whereabouts are unclear, but she was last known to be in Britain. In 2017, the U.S. Justice Department filed a civil complaint to recover about $144 million in assets allegedly obtained through bribes to the former minister.
Global Markets: One of the defining characteristics of the Covid pandemic was the backlog of container ships waiting to dock at ports worldwide. But now, the shipping situation is almost back to normal, and the cost of sending a container has dropped drastically from its peak. The fact that goods are being shipped more smoothly could signify that the inflation pressures are starting to fall. However, it may also well be that the clearing of the shipping backlog is down to a drop in global demand for goods—a sign that the world economy is not doing well at all.
ECONOMY
Ghana's ruling parliamentarians ask for finance minister to be sacked
What is Happening:
A majority of Ghana's ruling party parliamentarians have asked the president to sack finance minister Ken Ofori-Atta and his deputy to "restore hope in the financial sector".
The move comes as Ghana is amid its worst economic crisis in a generation, with inflation at a 21-year high and the currency, the cedi, in freefall.
With nearly half of all government revenue going towards interest payments, concerns that Ghana might need to restructure its debt in order to secure a deal with the International Monetary Fund (IMF) have further strained market confidence.
The West African gold, cocoa and oil-producing country is negotiating a support programme from the IMF to reduce economic hardship that has triggered several protests.
Why it Matters:
The IMF negotiations are also likely to be affected by any changes in the government, as the current team has been closely involved in the talks.
If the finance minister is ousted, it could further delay Ghana's efforts to secure an IMF deal, which is key to stabilizing the economy. It could also lead to more political turmoil in Ghana, which already has a hung parliament and is deeply divided between the two major parties.
ACROSS THE CONTINENT
Other Headlines
🌍 The United Arab Emirates has reportedly banned nationals of some 20 African countries from entering its capital city, Dubai. No explanation has been given for the ban. This is not the first time that some African countries have been banned from entering Dubai; in December 2021, Emirates Airlines announced that eight African countries would not be accepted to travel through Dubai until further notice due to Covid 19. The list of countries affected includes Uganda, Ghana, Sierra Leone, Sudan, Cameroon, Nigeria, Liberia, Burundi, Republic of Guinea, Gambia, Togo, Democratic Republic of Congo, Senegal, Benin, Ivory Coast, Congo, Rwanda, Burkina Faso, Guinea Bissau, Comoros, and the Dominican Republic.
🇸🇩 Although the Sudanese military blocked internet services on the first anniversary of the coup that halted the transition towards democracy, tens of thousands of protesters still marched towards Sudan's presidential palace in Khartoum, burning tyres and chanting slogans against the military government. The military takeover a year ago plunged Sudan's economy into crisis, and the government has been struggling to negotiate a power-sharing agreement with the civilian opposition. The anniversary protests come amid tribal violence and unrest across Sudan, which the UN says has killed up to 250 people in the past week alone. The generals leading Sudan's military government have been unwilling to give up power.
AROUND THE WORLD
US charges alleged Chinese spies
What is Happening:
Two Chinese nationals have been charged with paying a US law enforcement official to obstruct a federal investigation into a major telecommunications company, believed to be Huawei.
The official, however, was working as a double agent for the FBI. Beijing has accused US law enforcement of fabricating lies to smear China.
The two men — Gouchun He and Zheng Wang — paid the official tens of thousands of dollars for information about the investigation, including witnesses, evidence and potential criminal charges.
Why it Matters:
The allegations against the two Chinese nationals add to the already tense relationship between the US and China. This could have severe implications for both countries, as they are major economic partners.
The charges come as the US investigates Huawei, a Chinese telecommunications company, for allegedly violating sanctions against Iran.
US officials have also accused Huawei of spying on behalf of the Chinese government.
FOOD FOR THOUGHT
Proverb of the Day
“A bird does not change its feathers because the weather is bad.”
— Kenyan Proverb.