๐ Ramaphosa's 'Power Up' Plan
Plus: Kenya Power is Asking Customer to Pay Bills in Dollars, A Ugandan Sect Convinced its Members the World is Ending and to Run to Ethiopia, Russia's Fertiliser for Favors Scheme, And much more... โ
Photo of the day: Liberia
Markets:
โ Nigerian SE: 55,603.94 (0.00%)
๐ป Johannesburg SE: 78,556.54 (-0.18%)
๐บ Ghana SE: 2,392.52ย (+0.22%)
๐ป Nairobi SE: 123.68 (-1.68%)
๐ป US S&P 500: 3,987.57 (-1.50%)
๐ป Shanghai Composite: 3,285.10 (-1.11%)
US Stock Market Tumbles:ย The stock market took a tumble yesterday (see above) after Fed Chair Jerome Powell dropped some not-so-subtle hints about higher interest rates. The Dow dropped nearly 400 points, and investors seem to be feeling pretty spooked. Powell's testimony to Congress is likely what caused the commotion. He said that the Fed is prepared to move in larger steps if the "totality" of incoming information suggests tougher measures are needed to control inflation. This sent traders into a frenzy, and money market futures are now pricing in a more than 57% chance of a 50-basis-point rate hike in March (up from 23% before the remarks).
*Data accurate as of the close of markets across the continent
ECONOMY
Ramaphosa's 'Power Up' Plan
South African President Cyril Ramaphosa has just appointed a new electricity minister in the wake of the country's worst power cuts on record.ย
He also appointed several other allies to his cabinet ahead of the upcoming general election.
So, who's new to the team?
Ramaphosa has chosen Kgosientsho Ramokgopa for the newly created role of electricity minister, who most recently headed efforts to drive infrastructure investment.ย
He's retained key allies like finance minister Enoch Godongwana, Mining and Energy Minister Gwede Mantashe and Public Enterprises Minister Pravin Gordhan.
He also appointed Paul Mashatile as the new deputy president, after David Mabuza resigned last week.
Ramaphosa said the cabinet changes weren't about overhauling the national executive, but about bringing in new skills. His critics argue that he chose the "easier" path by only making urgent changes and not overhauling his team before next year's elections.
Will the new team fix the power crisis?
The jury's still out on that one.ย
The new electricity minister's track record is said to be mixed, so only time will tell.
Some have praised his work regarding infrastructure development, while others have been critical of his time as mayor of the Tshwane metro, which includes South Africa's capital, Pretoria.
His task is humongous, though: state power company, Eskom, has scheduled electricity outages every single day in 2023, and most households and businesses go without power for up to 10 hours a day.
The government declared a state of emergency in response to the cuts.
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OTHER HEADLINES
Across the Continent
๐ฐ๐ชย Kenya Power's Dollar Demand |ย As the Kenyan shilling continues to lose ground against the US dollar, Kenya Power is hoping to shield itself from currency losses by asking some customers to pay their electricity bills in dollars and euros. The company isn't alone in its dollar-pegged pricing: prime office space landlords, short-term rental platforms, and even traders are all trying to keep their finances steady by setting their prices in dollars. With Kenya's foreign exchange reserves currently below the desired import cover of four months, the shilling is likely to keep wobbling, and more businesses may follow Kenya Power's lead and make the switch to foreign currencies.
๐บ๐ฌย The End is Nigh, Say Uganda's Sect Members |ย A religious sect in Uganda has convinced its members that the world is coming to an endโฆ and that the only place to be safe is Ethiopia. Hundreds of members have already sold their property and fled the country in an attempt to escape the apocalypse. The whole "end of days" thing was taken to another level. It's not the first time something like this has happened in Uganda. Back in 2000, another cult leader convinced his followers to sell all their stuff, saying the world was ending, before he locked them in a church and set it on fire.
๐ฒ๐ผย Russia's Fertilizer for Favors Scheme |ย Russia is attempting to get back into Africa's good graces by showering the continent with 20,000 tons of fertilizer. The fertilizer is part of the country's 260,000-ton donation to the continent and is meant to sway African leaders to press for the abolition of international sanctions against Russia at the upcoming Russia-Africa summit. Malawi, which voted to censure Russia at the UN last year, is the first recipient of the gift. The fertilizer will reach 400,000 farming households, and, hopefully, boost agricultural production and help families grow healthier and more nutritious food.
FOOD FOR THOUGHT
Proverb of the Day
โIf there is character, ugliness becomes beauty; if there is none, beauty becomes ugliness.โ
โ Nigerian Proverb.