🔅 What Does South Africa's Chicken Showdown Mean For Its Economy
Plus: Dangote's Refinery, Liberia's Election Round 2, El Salvador's Tourist Tax, Zimbabwe Abduction
Photo of the day
Beach in Conakry, Equatorial Guinea
Markets:
🟢 Nigerian SE: 70,840.72 (+0.32%)
🟢 Johannesburg SE: 71,633.17 (+2.70%)
— Ghana SE: 3,195.46 (0.00%)
🟢 Nairobi SE: 89.35 (+0.45%)
🟢 US S&P 500: 4,493.99 (+1.87%)
🟢 Shanghai Composite: 3,056.07 (+0.31%)
African Governments Struggle to Borrow on Global Markets | When it comes to borrowing money, African governments are feeling the pinch. The pandemic, conflicts in Ukraine and elsewhere, and inflation have made foreign borrowing too pricey, so they’re turning to local debt markets instead. But with everyone vying for a piece of the pie, the cost of refinancing domestic loans has skyrocketed.
*Data accurate as of the close of markets across the continent
Brief & Bright: Africa's Top Five
South Africa's Chicken Showdown: Nando's vs. Pedros (And What It Says About The Economy)
A chicken battle is happening in South Africa between Nando's and Pedros. These two restaurants are duking it out for the stomachs of South Africans with their spicy chicken and even spicier advertising. And while Nando's may be the big player with over 1,200 locations worldwide, Pedros is giving them a run for their money with 125 stores in just five years (Nando's has been in existence since the 1980s). But what's really got competition specialists excited is that this chicken fight is proving that when markets are open to new entrants, competition thrives. That's not only good for South Africans' wallets, but also for the economy as a whole. The IMF estimates that by making it easier for new businesses to enter the market (reducing red tape and barriers to entry), South Africa's GDP could increase by 2.5% over five years.
Dangote's Refinery: Nigeria's Ticket to Becoming an Oil Exporter
Nigeria's new Dangote oil refinery is set to transform the oil trading game in the Atlantic Basin. Thanks to Africa's richest man, Aliko Dangote, Nigeria will soon be a net exporter of fuels, a dream come true for the country that has long relied on imports from the US and the EU, even though it is a major exporter of crude oil. The refinery in the Lekki free trade zone near Lagos is expected to start test runs in December with up to six cargoes of crude oil from Nigeria's state oil firm, NNPC Ltd. The hope is that the refinery will eventually produce high-quality fuels at full capacity, but experts warn that it could take months to get there. Still, with a 20% stake in the refinery, NNPC is eager to negotiate contracts for gasoline and diesel purchases in the future. Separately, Aliko Dangote, took out a seven-page ad in the local newspapers to call out fellow tycoon Abdul Samad Rabiu for trying to start a money laundering investigation against him. Looks like these two billionaires won’t be sharing a yacht anytime soon.
Liberia: Weah vs. Boakai, Round 2
Yesterday was election day in Liberia and the country was buzzing with excitement. After a close first round, incumbent and former soccer star George Weah is facing off against former Vice-President Joseph Boakai. And when we say close, we mean only 7,000 votes separated these two candidates. Talk about a nail-biter. The first round was filled with drama, with allegations of fraud and violence, and even nine temporary election staff getting arrested for tampering with ballots. Despite that, Liberians are eager to cast their votes and make their voices heard. Weah and Boakai have been scrambling to gain support from the 18 other candidates who didn't make it to the run-off, with Boakai snagging endorsements from three of the top four. But it's anyone's game at this point. And let's not forget, this isn't the first time these two have faced off in a presidential election. Weah came out on top in 2017, thanks to his international fame and promises to tackle corruption. But Boakai is determined to win this time, charging that Weah has not fulfilled his promises. Will Weah's stardom win over the youth vote again, or will Boakai's experience as Vice-President give him the edge.
El Salvador's New Tourist Tax: What's The Link With Africa?
El Salvador is charging a hefty fee (over $1,000) to travellers from 57 countries just for transiting through its main airport. But is it really just a sneaky way to help the US control its southern border? Some say yes, especially since the US has been pressuring Central American countries to stop the flow of migrants. The new fee targets travellers largely made from African countries who are passing through El Salvador to get to Nicaragua, which has lax visa requirements and is a popular transit point for migrants heading to the US. Experts think that El Salvador is just trying to curry favor with the US by making migration more difficult.
Zimbabwe Opposition Activist Found Dead After Abduction
Tapfumaneyi Masaya, a member of the Citizens Coalition for Change party, was found dead after being abducted while campaigning for the upcoming by-elections. This is the second abduction in recent weeks, with another opposition lawmaker being tortured and dumped on the outskirts of Harare just a couple of weeks ago. Zimbabwe has a history of forced disappearances and deaths of political activists, and the opposition is blaming the ruling party for these latest incidents.
Food for Thought
“In the moment of crisis, the wise build bridges and foolish build dams."
— Nigerian Proverb