🔅 South Africa’s Power Crisis: Is Government Throwing in the Towel?
Plus: French Troops vs Migrants in Mayotte, Nigeria's $12 Billion Clean-Up Bill, The World Bank's $1 Billion Problem in Congo, And much more...
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Photo of the day: Windhoek, Namibia
Markets — Year to Date:
🔺 Nigerian SE: 52,187.93 (+1.83%)
🔺 Johannesburg SE: 78,175.82 (+7.02%)
🔺 Ghana SE: 2,571.06 (+5.20)
🔻 Nairobi SE: 98.52 (-22.71%)
🔺 US S&P 500: 4,191.98 (+9.62%)
🔺 Shanghai Composite: 3,283.54 (+5.36%)
Global Markets: China Beats Japan to Become Top Car Exporter | Move over Japan, there’s a new king in town! China just became the world’s biggest car exporter, after overtaking Japan in the first quarter of the year. With 1.07 million cars shipped overseas, China is riding a wave of success, boosted by demand for electric cars and increased exports to Russia. China’s car industry has seen its star rise in recent years, as the country’s shift away from fossil fuels helped it become the second largest car exporter in 2022. Tesla is one of the biggest winners of the trend, with its Gigafactory in Shanghai producing 1.25 million cars a year and plans to expand capacity. And with Western countries imposing sanctions on Russia, Chinese carmakers like Geely, Chery, and Great Wall saw their market share in Russia surge last year.
*Data accurate as of the close of markets across the continent
ENERGY
South Africa’s Power Crisis: Is Government Throwing in the Towel?
South Africa’s state-owned power utility, Eskom, has seen security incidents skyrocket since last year.
In the last three months of 2020, the company recorded 768 such incidents, and a 25% jump in crimes over the next 90 days.
The South African government blames fraud at every step of the supply chain, starting right at the beginning with the theft of coal. Crooks often trade high-quality coal for low-grade material, which eventually damages the plant's equipment.
Eskom also points its finger at contractors, alleging they break machines they then seek contracts to repair.
That's not all: municipalities aren’t paying Eskom, leaving the utility with billions of dollars in unpaid bills.
What’s the government doing about it?
The government has appointed a new electricity minister, Kgosientsho Ramokgopa, to try and fix the grid.
He plans to extend the use of some coal-fired plants to avoid an escalation in blackouts.
But many are questioning if the government is really trying to fix the problem.
With no real power to get anything done, it looks like South Africa's power crisis isn't going away anytime soon.
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OTHER HEADLINES
Across the Continent
🇾🇹 French Troops vs Migrants in Mayotte | Welcome to Mayotte, the French island territory off the east coast of Africa that is at the centre of a migration quagmire. The French government has sent in 2,000 troops and police to try and sort out the situation, but it’s proving to be an uphill battle. The root of the problem is poverty: Mayotte’s average income is around $3,500 a year—double that of its neighbour, Comoros—which has created a powerful pull for those looking to escape the destitution in their own country. Meanwhile, anti-migrant collectives are taking things into their own hands, blocking hospitals, disrupting shipments, and threatening to destroy slums if the authorities don’t get there first. Youth gangs are fighting back, and tensions are high between locals and immigrants.
🇳🇬 Nigeria's $12 Billion Clean-Up Bill | According to a report from the Bayelsa State Oil and Environmental Commission, it's going to take $12 billion and 12 years to get rid of the decades-old oil spills in southern Bayelsa state. But who’s going to pay? The commission has its eyes on Shell and Eni, who are being held responsible for the majority of the pollution. Unfortunately, their plans to clean up the mess are falling short, as toxins that can cause burns, lung problems, and cancer are still rampant. The oil companies aren’t thrilled about being the ones on the hook for the clean-up costs. Shell has said they’re not even aware of the report, while Eni claims that the spills are mostly the result of theft, illegal refining, and sabotage. They also claim to have done their part in cleaning up the mess.
🇨🇩 The World Bank's $1 Billion Problem in Congo | The World Bank is taking its money back after the Democratic Republic of Congo dissolved a project fund without warning. In a letter, the Bank warned the country’s finance minister that the sudden change would affect 600,000 beneficiaries—including Nobel Peace Prize-winning gynaecologist Denis Mukwege—and demanded answers about $91 million already advanced. A spokesperson for Congo’s finance ministry said they were waiting for the president’s okay before commenting. However, Congolese auditors have raised concerns about the government’s lack of transparency, and four opposition politicians have called for an audit of the funds. In the meantime, 600,000 people have been left in the lurch.
FOOD FOR THOUGHT
Proverb of the Day
“When the village chief himself goes around inviting people to a meeting, know there is something wrong with the system.”
— Malawian Proverb.