🔅 U.S. promises Africa $55 bln ahead of major summit
Today’s Issue: A Golden Globe award for Nigeria, Africa’s getting a major internet connection upgrade, and a Mali couple welcomes Nonuplets! ☕
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Photo of the day: Kinshasa, Democratic Republic of Congo
Markets:
🔻 Nigerian SE: 48,853.54 (-0.09%)
🔺 Johannesburg SE: 75,910.99 (+2.00%)
🔻 Ghana SE: 2,458.81 (-0.10%)
🔻 Nairobi SE: 127.81 (+1.07%)
🔻 US S&P 500: 3,998.95 (+0.21%)
🔻 Shanghai Composite: 3,176.33 (-0.08%)
*Data accurate as of the close of markets across the continent
Ghana: On Tuesday, the IMF finally announced it had approved a $3b loan for Ghana to get its finances back on track. The money is meant to help Ghana tackle its soaring inflation, currency decline, and other economic woes. In return, the government is promising to work on reforms to protect the vulnerable, improve its public finances, and strengthen the currency.
US: Remember when Sam Bankman-Fried, the former FTX boss, tried to convince us that he wasn’t a fraudster? Yeah, well, the SEC is not convinced. On Monday, they arrested him on charges of defrauding investors. It’s been a wild ride for Sam Bankman-Fried. He launched FTX, a cryptocurrency exchange, in 2019 and raised more than $1.8 billion from investors. But the SEC accuses him of using customers’ funds to finance his hedge fund, Alameda Research, and making lavish real estate purchases, amongst other things.
GEOPOLITICS
U.S. commits $55 bln to Africa ahead of major summit
What's the story?
It’s about to be a big week for Africa: US President Joe Biden is hosting 50 African heads of state at the second US-Africa Leaders Summit (the first one was sponsored by Obama).
And before the summit even started, the US president said he was bringing some serious cash to the table.
How much cash?
Biden is pledging $55 billion in investments over the next three years. He says the US won’t be “imposing conditionality” on its investments, and over 300 US and African companies will get to meet to discuss investments in critical sectors.
That's not all; he's also promising to lobby for a seat at the G20 table and a permanent spot on the UN Security Council.
OK, but why?
In part, it’s about counteracting China and Russia, which have been wooing African countries with significant investments and (in the case of Russia) weapons sales.
China, which has been pumping billions into African projects, is the biggest bilateral lender to Africa, and is seen by the US as a threat to the “rules-based international order.”
What does China have to say about this?
China’s ambassador to the US, Qin Gang, isn’t too thrilled. From China's investments, "You can see hospitals, highways, airports, stadiums," Qin said.
He also argued that African countries owe three times more debt to Western institutions than to China, and said the US summit should focus on “concrete and workable measures” to help the continent. In other words: Don’t use Africa as a chessboard for geopolitical games.
ACROSS THE CONTINENT
Other Headlines
🇨🇩 At least 50 people have died in the DRC capital, Kinshasa, after torrential rains caused flash floods and landslides, leaving roads looking like something out of a disaster movie. The city’s police chief Sylvano Kasongo reported that the death toll could still rise, while images shared online show entire neighbourhoods submerged in muddy water. Poorly regulated rapid urbanisation has made the megacity increasingly vulnerable to flash floods, and in 2019, at least 39 people were killed after a bout of heavy rains. The daily cost of the floods to households is estimated to be around $1.2 million, and the city hopes to take measures to prevent such a disaster from happening again.
🇲🇱 Welcome home, Nonuplets! After 19 months of being cared for in Morocco, the world’s only nine-baby-at-once set has returned to Mali. And they’ve done more than just break a Guinness World Record — they’ve become local celebrities. When Halima Cissé, now 27, was expecting the nonuplets last year, she had to be flown to Morocco for specialised care. But on Tuesday, the babies - five girls and four boys - returned home to Bamako in the early hours. The father, Abdelkader Arby, thanked the Malian government, which he said had been providing financial support. The babies were born by C-section at 30 weeks, weighing between 1 and 2.2 pounds.
🌍🇿🇦 Africa’s about to get a much-needed internet upgrade: MTN South Africa and MTN GlobalConnect, with help from a consortium of partners, have just completed the first stage of their 2Africa project: a 45,000-kilometre subsea cable connecting the continent to Europe and the Middle East. The cable is a massive deal for Africa’s rapidly growing internet users, who currently suffer from slow internet speeds due to inadequate infrastructure. The new line is expected to support data traffic growth estimated to quadruple over the next five years. Plus, it’ll provide a direct connection between countries along the African coast, the Middle East, and Europe—something that’s been long overdue. The consortium consists of MTN GlobalConnect, China Mobile International, Meta, Orange SA, Telecom Egypt, Vodafone, Mauritius-based infrastructure provider WIOCC, and Saudi Arabia’s center3. It’s a veritable who’s who of international telecoms, and their joint efforts are expected to make the internet a lot faster and more reliable for Africans. The cable will go live in 2023 and 2024.
🇳🇬 We’ve got another one to add to the list of Nigerian superstars: Tems has just been nominated for a Golden Globe award! The singer-songwriter, nominated for a Grammy last year, is up for the award, this time for her writing contribution to Rihanna’s Wakanda Forever soundtrack, Lift Me Up.
IN TECH
Taiello raises $2.5m to bring furniture into your home
Tired of waiting months for that new couch to arrive? Then you’ll love what Taeillo is up to. This Lagos-based furniture startup has just raised $2.5 million in “expansion” funding from Aruwa Capital to make buying furniture in Africa easier and faster. How’s it work? Taeillo is a one-stop shop for all your furniture needs. You can buy everything from sofas and beds to chairs and tables. The startup also has a unique edge: It’s infusing cultural elements into its furniture pieces (aka “Afrocentric furniture”). And, get this, the company promises delivery in four to eight weeks – not the three to six months you’d typically expect. Taeillo started in 2018 when founder Jumoke Dada launched the platform with seed funding from investors. Then, during the pandemic, the startup pivoted to a direct-to-consumer approach – a move that paid off big time. Since then, the online furniture manufacturer and retailer has expanded into Kenya and shipped over 10,000 pieces of furniture to over 5,000 customers in both countries.
FOOD FOR THOUGHT
Proverb of the Day
“An army of sheep led by a lion can defeat an army of lions led by a sheep.”
— Ghanaian Proverb.