🔅 Senegal no longer wants Asian-imported rice
'We'll make our own, thank you!'
Good morning ☕
In today’s issue, Ghanains close their shops, the British Pound rejoices, and WHO’s Director-General accuses Ethiopia of using food as a weapon of war…
Markets
🔺 Nigerian SE: 44,332.21 (+0.03%)
🔺 Johannesburg SE: 65,794.28 (+0.22%)
🔻 Ghana SE: 2,365.89 (-3.84%)
🔻 Nairobi SE: 129.73 (-0.05%)
🔻 US S&P 500: 3,661.55 (-0.91%)
🔻 Shanghai Composite: 3,035.05 (-0.31%)
*Data accurate as of close of markets across the continent
Ghana:Â Traders in Ghana closed their shops on Wednesday, in protest of the worsening economic conditions. The Ghanaian cedi has been plummeting to new lows, with a new low of 12.3 to the dollar on Wednesday. This has caused inflation to surge, despite repeated rate hikes by the central bank. Ghana's government is negotiating a support package with the International Monetary Fund, but some merchants say that help is not coming fast enough. As a result, the streets were quiet in the ordinarily bustling heart of Accra's central business district.
Global Markets:Â With oil prices rising and midterm elections just around the corner, U.S. President Biden has decided to get creative to keep gas prices from going any higher. The president unveiled a plan to sell 15 million barrels of oil from the U.S. strategic reserve, an emergency supply of oil that is meant to be used only in the event of a significant oil supply disruption. This move is unusual because it goes against the grain of what the strategic reserve is meant for, but it may be a necessary measure to keep prices from spiralling out of control. The decision to sell oil from the reserve was likely spurred by a recent decision by OPEC+ nations to cut oil production, thus increasing prices.
AGRICULTURE
Senegal working to cut down its dependence on Asian-imported rice
What is happening:Â Â According to a Reuters report, the U.N. trade and development agency UNCTAD estimated that West Africa imported rice worth around $3.7 billion in 2021. The region's rice consumption is forecast to hit 22 million tonnes by 2025, a nearly 40% increase on 2017, according to ECOWAS, whose "Rice Offensive" envisages the region achieving rice self-sufficiency. But on September 8, India restricted exports because of fears that food shortages could fuel rampant inflation at home. Senegal, which sourced around two-thirds of its rice imports from India last year, was sufficiently worried for President Macky Sall to call for talks with India over the move.Â
Why it matters:Â West Africa's dependence on rice imports is a drain on foreign reserves. It also exposes countries to global price volatility and trade disruptions, as when India - one of the top rice exporters to the region - banned exports of broken rice and imposed a 20% duty on exports of various other grades in September. Like other countries in West Africa, Senegal ramped up rice production after a global food price crisis in 2007-8 led to public unrest and a renewed drive to reduce reliance on imports. Senegalese rice output more than tripled between 2011 and 2020 to 1.3 million tonnes. But rapid population growth and a growing preference for rice over other grains saw apparent consumption more than double in the same period to over 1.9 million tonnes.Â
What's next:Â Improving the value chain by helping to cut production costs and improving quality will be the main focus moving forward.
ACROSS THE CONTINENT
Other Headlines
🇳🇬 Nigerian police officers tear-gassed a group of protesters in Lagos on Thursday, who were gathered to mark the second anniversary of demonstrations against police brutality. The protesters had gathered at the Lekki toll gate, where security forces killed 11 people in October 2020. A police spokesman claimed that the tear gas was fired at "lawless people", but human rights lawyer and activist Oke Ridwan insisted that the protesters were demonstrating peacefully. The #EndSARS movement emerged in October 2020 amid widespread accusations of brutality, unwarranted arrests and bribery by the now-disbanded police unit known as SARS. Despite promises of reform, the human rights watchdog says that more than 40 protesters arrested that day are still in prisons and that panels set up to investigate allegations of police brutality have failed to deliver justice to hundreds of victims.
🇬🇳 The opposition coalition in Guinea has reported that at least five people were injured on Thursday after security forces fired at anti-government protesters in the capital Conakry. The protesters were reportedly pushing for a junta that took power in a September 2021 coup to restore civilian rule and had set up roadblocks and burnt tyres across the city. Sporadic protests have been taking place in Guinea since the government was overthrown and replaced with military leaders that have dragged their feet on promises to hand power back to civilians. Coup leader and interim President Mamady Doumbouya has proposed a 36-month transition to elections, which regional leaders and opposition politicians have rejected. Following criticism of the 36-month timeline, the junta has banned all public demonstrations.
🇪🇹 WHO Director-General Tedros Adhanom Ghebreyesus has accused Ethiopian authorities of using food and healthcare as weapons of war in Tigray, and warned that there is a "very narrow window now to prevent genocide". The Ethiopian government has repeatedly denied blocking humanitarian supplies to Tigray or targeting civilians, and has accused Tedros of supporting Tigray forces. The Tigray conflict is rooted in long-running rivalries between regional power blocs over control of Ethiopia and deep disagreements over how power should be balanced between federal and regional authorities. Tedros, who is from Tigray, has said that the conflict affects him personally but that his job is to draw the world's attention to crises that threaten people's health wherever they are.
AROUND THE WORLD
Liz Truss resigns, the pound rejoices
What is happening: The pound has risen against the dollar after Prime Minister Liz Truss announced her resignation late yesterday. Government borrowing costs have also dipped, with the interest rate on U.K. government bonds for borrowing over a 10-year period falling below 4%. The markets are reacting positively to the resignation despite much uncertainty moving forward. Business groups said the new prime minister would have to act quickly to restore confidence. Â
How we got here:Â Â Ms Truss's resignation comes after a key minister quit and Tory MPs rebelled in a chaotic parliamentary vote on Wednesday.
What's next: Her resignation means there will now be a Tory leadership contest, to be completed in the next week. The new prime minister and their chancellor will have a big task on their hands — to navigate the economy through the cost of living and borrowing crisis.
FOOD FOR THOUGHT
Proverb of the Day
"One who possesses much wisdom has it in the heart, not on the lips."
— Ugandan Proverb.