🔅 Kenya's Railway Stops Nowhere, Niger's Resource Woes
Plus, $850 Million Road Project, Zimbabwe's Trash Turned Profit.
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Juba, South Sudan
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Jamie Dimon's Warning: The World is Teetering on the Edge | Heads up, investors—Jamie Dimon, the big boss at JP Morgan Chase, has a not-so-great outlook on the state of the world. He's worried about rising tensions in Ukraine and Israel, and how they could impact things like energy and food prices, global trade, and our overall well-being. Even though his bank ranked in $13 billion in profit in the last quarter alone, Dimon is urging caution and preparing for higher interest rates and inflation, making life more expensive.
*Data accurate as of the close of markets across the continent
Brief & Bright: Africa's Top Five
Kenya's Chinese-Built Railway: A Ride to Where Exactly?
Kenya's got a fancy new railway, courtesy of China. But there's just one problem: it's not quite finished. The plan was to connect the coast of Kenya to other landlocked countries in East Africa, but construction suddenly stopped in the middle of the country. Now, the railway does not bring in as much money as hoped since it does not deliver on carrying freight to the landlocked countries and is only suitable for taking passengers from the port city of Mombasa to Nairobi (with a bonus of spotting some wildlife along the way). The freight trains that do make it to Nairobi make a U-turn and go back to Mombasa, most of them empty, which is a considerable loss. As it stands, Kenya is struggling to pay back the $4.7 billion it borrowed from Chinese banks to build it. The government is trying to figure out how to fund the rest of the railway, but they're open to suggestions. Maybe they can get some private-sector players from China to pitch in? Or perhaps they'll just have to ask for a grace period to repay the loans. Either way, most Kenyans are unhappy about it, many of whom are already dealing with increased taxes over the past few months. To make matters worse, Uganda, which was meant to be one major destination on the line, has been making moves to access the railway through Tanzania instead, which got funding from Turkey and Portugal to construct a faster and cheaper railway. They, too, are planning to connect to Rwanda, Burundi, and the DRC. Will Kenya's railway remain a half-finished line to nowhere? Only time will tell.
Niger: Where Rich Resources Meet Poor People
Niger, this West African country that's been in the news recently because of the coup it underwent, is one of the world's poorest countries, despite being rich in natural resources like gold and uranium. And guess who benefits from those resources? Not the Nigeriens. Nope, it's the former colonial powers, like France, who are making bank off Niger's riches. Meanwhile, the people of Niger are living in extreme poverty, with high rates of illiteracy and violence, and more recently have had to deal with blackouts because their neighbour Nigeria cut off their electricity supply following the military takeover. France extracts much of Niger's uranium to power about 30% of its lights and gadgets; likewise across Europe, where Niger's uranium supplies 20% of the EU's nuclear energy. But don't worry, the Nigerien government is totally benefiting from this arrangement. By this, we mean they only get 13% of the mining profits and then rely on foreign aid for 40% of their budget. Yep, it's a real "David vs Goliath struggle", as watchdogs have pointed out the unfair contracts between Niger and multinational companies.
Boat Capsize in DR Congo
Over 40 bodies have been recovered, and 189 survivors rescued after a boat capsized in the Congo River on Friday. But the search continues for 167 people still missing. The boat was overloaded with over 300 passengers and cargo, significantly breaking safety regulations. This is a common occurrence in DR Congo, where boats are a popular mode of transport due to a lack of roads and interconnectedness across its great expanse. Opposition leader Moise Katumbi blames the government for allowing dilapidated and overloaded boats to operate at night. Meanwhile, the provincial government provides psychological support for children who lost their parents in the accident.
The $850 Million Shortcut for African Truckers
Good news for truckers hauling copper and cobalt from the Democratic Republic of Congo to the East African coast—there’s a new $850 million road project in the works that will cut 150 miles off the journey. It includes a 345-meter bridge over the Luapula River that separates the DRC and Zambia. Presidents from the two countries broke ground at the site, marking the start of this modernization and expansion project. Soon, truckers will be able to reach the Tanzanian port of Dar es Salaam even quicker from Lubumbashi in Congo.
Turning Trash into Cash in Zimbabwe
In Zimbabwe, the economic crisis has pushed many to the edge—but some are turning to the garbage pile for a bit of extra cash. Pick up litter and sell it? It may not sound like a lucrative career, but it can pay similar to the average salary of an employee working at a small business. In fact, recycling trash by picking it up and selling it or buying it and converting it into profitable materials (irrigation pipes, plastic wrap, bin liners, planter bags and bags for animal feed, etc.) has become a booming business in the country. Nyemudzai Jakiti, a single mother, knows this all too well. After finding herself out of a job in 2018, she began picking up litter and selling it. And, eventually, her plastic waste selling even got her a job at a plastic recycling facility. Across the country, the number of community-based recycling organizations has quadrupled from 50 in 2019 to 200 in 2023. It’s a business that’s paying off—some people picking waste can make over $150 per month—not bad, considering the country's current economy.
Food for Thought
"A low-class man will just talk; deeds are the hallmark of a gentleman."
— Swahili Proverb