🔅 Somalia: 100 dead in car bombs

And speeding up adoption of the eNaira.

Good morning ☕

In Today’s Issue, the eNaira attracts only 1 out of 200 Nigerian users, at least 100 are killed in car bombs in Somalia, and Brasil goes to the polls in elections not lacking in drama…

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Markets — Year to Date

🔻 Nigerian SE: 43,912.64 (+2.8%)

🔺 Johannesburg SE: 66,385.58 (-9.94%)

🔻 Ghana SE: 2,460.31 (-11.8%)

🔺 Nairobi SE: 128.43 (-22.85%)

🔻 US S&P 500: 3,901.06 (-18.67%)

🔻 Shanghai Composite: 2,915.93 (-2.25%)

*Data accurate as of close of markets across the continent

• South Africa: South Africa's state debt is expected to reach 71.4% of the gross domestic product in the current fiscal year. This is two years earlier than previously predicted and almost four percentage points lower.

• Mali: Industrial gold production in Mali, one of Africa’s top producers, is falling short of forecasts. Gold production stood at 45.8 tonnes in September, instead of the 47 tonnes at the same time last year. Mali’s total gold production in 2021 was 63.4 tonnes.

• Global Markets: In Q3, the US economy expanded after contracting in the year's first half. Although the annualized GDP growth rate of 2.6% was higher than anticipated, there were some indications that the economy might not be doing as well as hoped—such as slower consumer spending growth and a decrease in housing investment.

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TECHNOLOGY

Somalia: At least 100 killed in car bombs

What is happening:  

Somalia's president says at least 100 people were killed in Saturday's two car bombings at a busy junction in the capital and the toll could rise in the country's deadliest attack since a truck bombing at the same spot five years ago killed more than 500.  

The al-Qaida-linked al-Shabab extremist group, which often targets the capital and controls large parts of the country, claimed responsibility, saying it targeted the education ministry.  

The attack in Mogadishu occurred on a day when the president, prime minister and other senior officials were meeting to discuss expanded efforts to combat violent extremism and especially al-Shabab.  

After decades of conflict, the attack has overwhelmed first responders in Somalia, which has one of the world's weakest health systems.  

Why it matters:  

A high-profile new offensive has angered Al-Shabab by the government that also aims to shut down its financial network. The group is committed to fighting until the country is ruled by Islamic law.

The recent car bombings in Somalia's capital of Mogadishu are the country's deadliest attack since a truck bombing in the same spot five years ago killed over 500 people. 

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ACROSS THE CONTINENT

Other Headlines

Photo by Oyemike Princewill on Unsplash

🇳🇬 Nigeria's central bank is turning to the nation's three-wheeler taxi operators to speed the adoption of the eNaira. It's offering a 5% discount to drivers and passengers of the motorized rickshaws - known locally as Keke Napep - who use the eNaira. The eNaira has so far attracted just one in 200 people in Nigeria. The central bank hopes the discount will encourage more people to use the digital currency.

🇿🇦 The police and armed forces in South Africa are reinforcing security this weekend following an alert from the US embassy about a possible attack in a Johannesburg suburb. This comes as South Africa hosts several major events this weekend, including the coronation of King MisuZulu Zulu in Durban and a gay pride event in Johannesburg. Nigeria's capital, Abuja, is also under a security alert after warnings from several embassies about a high probability of an attack. The Nigerian government has beefed up security in response and is calling for the public to remain vigilant but calm.

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AROUND THE WORLD

Brazilians go to polls in elections not short on drama

What is Happening:

The Brazilian people are heading to the polls on Sunday in what is arguably the most important election of recent years. The contest is between leftist challenger Luiz Inácio Lula da Silva and far-right incumbent Jair Bolsonaro. 

Opinion polls on the eve of the ballot show Lula, as the Workers’ party candidate is known, with a lead of between four and eight percentage points. However, polls before the first round of voting underestimated Bolsonaro's numbers, so there is no guarantee that Lula will win. 

After a week in which Bolsonaro faced several setbacks, Lula has all the momentum. Last Sunday, one of Bolsonaro's most rabid supporters threw grenades at police officers and shot at their cars when they went to arrest him for breaking the rules of his parole. 

A Lula victory would cap one of the most remarkable comebacks in political history. A former union leader who lost three presidential elections before finally winning in 2002, the now 77-year-old Lula led the country for eight years before leaving office with approval ratings above 80%.

The two leading candidates promised to improve the economy for the poorest citizens if elected. Jair Bolsonaro and Luiz Inacio Lula da Silva have both pledged to raise minimum wages, cut taxes for low-income earners, and increase paychecks for the poor. 

Neither of them has specified how they would fund these plans, but with lower commodity prices (a key export market) and tighter global financial conditions, it may be difficult. Additional fiscal stimulus could support demand and make inflation more persistent.

Why it matters:  

A victory for Lula would be a significant setback for Bolsonaro and his allies and could help turn the tide against the far-right populism that has been on the rise worldwide in recent years.

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FOOD FOR THOUGHT

Proverb of the Day

“A great leader is an ordinary person with extraordinary wisdom."

— Malawian Proverb.

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