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Africa Trivia

Graphic of the Week 

Where to Stretch Your Dollar in Africa

Love this…from This Week in Fintech, Africa.

TL; DR

• Ethiopia: Lemi National Cement Factory, the largest in the country, launched to boost industrial growth (Further Africa).

• Ghana: Gov’t successfully restructured $13B of Eurobonds, with a majority of bondholders agreeing to a debt exchange (Bloomberg).

• Ivory Coast: Cocoa prices rose to $3.06/kg, surpassing Ghana’s rate to curb smuggling (Bloomberg).

• Kenya: Inflation fell to 3.6%, a 12-year low (Bloomberg); parliament launched a motion to impeach the deputy president (Reuters).

• Libya: Last month, a political crisis in Libya led to a 480,000 barrel-per-day drop in OPEC's overall output for September Oil (Bloomberg); but this week oil production resumed (Bloomberg).

• Mauritius: The UK agreed to relinquish the Chagos Islands to Mauritius after more than 50 years of British control (BBC). Wonder where the Chagos Islands are? Google Maps.

• Morocco: AfDB approved $78.3M in financing to boost trade finance through Morocco's Bank of Africa, aiming to catalyze $331M in trade across the continent (Reuters).

• Mozambique: Central Bank reduced the benchmark interest rate to 13.5%, the fifth cut this year (360 Mozambique); and presidential elections this week are expected to extend the ruling Frelimo party’s rule (The East African).

• Nigeria: The World Bank approved $1.57B to boost Nigeria's health, education and power sectors, addressing governance, infrastructure and flood safety (Reuters); gov’t set to approve Exxon Mobil's $1.3B sale of oil and gas assets to Seplat Energy to boost the country’s production and economy (Bloomberg).

• Rwanda: The country is experiencing its first Marburg virus outbreak, with 27 confirmed cases and nine deaths (Bloomberg). 

• South Africa: Bond yields dropped below 10%, reflecting continued optimism in the country’s economic recovery under its new coalition government (Bloomberg).

Business & Finance in Africa 

Libya’s Back in The Game

• Libya’s eastern government lifted the embargo and resumed oil production on October 3, 2024 after a political standoff caused a significant drop in output. 

• It ordered oil fields and export terminals, including the key Sharara field, to restart operations.

• The country’s production, falling from more than 1.2 million barrels per day to under 450 thousand, will recover within days. 

• This increase in production will likely push down global oil prices amidst weak demand. Despite recent agreements, political instability between Libya’s rival administrations continues to pose risks.

Drones Take Off in Africa’s Mainstream

As drone technology spreads across Africa, it's transforming healthcare, security and industry though regulations, air traffic concerns and public trust do pose hurdles for commercial expansion. Here's what's happening:

• Healthcare Boost: Zipline’s partnership with Nigeria is set to improve healthcare delivery by using drones to reach remote areas with medical supplies, similar to what the country did in Rwanda.

• Industry Growth: Nigerian startup, Terrahaptix, is scaling drone production for sectors like oil, mining and agriculture, already generating more than $1M in revenue.

• Security Uses: Military and surveillance drones are becoming essential, with Nigeria and other African nations using them for national security and combat operations.

Read more in Semafor.

South African Markets Rally

• In September 2024, South Africa's benchmark bond yield fell below 10% for the first time in over two years, indicating a turning point in the continent's economy. 

• The new coalition government, which took power in June 2024, has shown a commitment to building infrastructure, including roads, railways and dams, as part of a broader economic revival plan and fiscal discipline. 

• New investments, such as Anglo American PLC's investment in iron-ore projects and Qatar Airways' acquisition of a stake in SA Airlink PTY LTD, also reflect investor optimism.

Kigali’s Population is Booming!

• Kigali, the capital of Rwanda, is one of the fastest-growing cities globally and it’s facing a major urbanization crisis. 

• The Kigali population has doubled over the last two decades and is expected to see around 4.5 million newcomers by 2030! 

• How will it provide adequate housing? The government is behind on housing.

• The city has only built 2,600 units in the past decade—far short of the 25,000 needed annually. 

• Interestingly:

  • Almost a third of Kigali's households earn less than $200 monthly.

  • The cheapest single-bedroom unit sells for $15,000.

  • To qualify for a 20-year mortgage at 11%, a household would need to prove earnings of at least $700. Most households therefore cannot get a mortgage.

  • Only 8% of Rwandan homes are bought with mortgages.

• Needless to say, the government has to go back to the drawing board and come up with a new housing strategy. Knowing Rwanda, they’ll get it done. For real estate investors and almost all infrastructure and urban services investors, watch this city. 

Health in Africa 

Marburg in Rwanda: Government Acts Fast

• Rwanda is facing its first-ever Marburg virus outbreak, with nine reported deaths, mostly among healthcare workers in an intensive care unit in Kigali.

• The outbreak has led to the isolation of 18 patients and restrictions on funeral gatherings to a maximum of 50 people.

• The World Health Organization (WHO) is delivering medical supplies to support Rwanda's strong public health response.

• The Marburg virus has a mortality rate of 88%, causing severe hemorrhagic fever and symptoms like fever, vomiting and bleeding.

• Previous Marburg outbreaks have occurred in Uganda, Ghana and Tanzania.

Tech & Society in Africa

And That’s Why We Love Competition

• Starlink, with more than 4,000 customers as of June 2024, is preparing to launch 300 satellites for direct-to-mobile service, aiming to transform the telecom landscape.

• In response to Starlink’s entry to Kenya, Safaricom has upgraded its fiber internet packages, doubling or even quintupling speeds.

• Safaricom has resumed talks with Starlink and other satellite companies, despite initially rejecting Starlink’s proposal due to regulatory concerns.

• While affordability has been a major factor in Starlink’s entry into Kenya, this week Starlink announced a dramatic price increase for its satellite internet service in Nigeria, with subscription fees doubling effective October 31, raising concerns about high-speed internet’s affordability and accessibility. 

• President Ruto sums it up: “I keep encouraging Peter (CEO, Safaricom) that competition makes you keep ahead…I must admit, he’s really upped his game.”

• We’ll see, but generally, the consumer wins and that’s good for Kenya and other African countries.

Climate in Africa

Long Live The Baobab!

• Baobabs, ancient trees that have been part of Africa's landscape for 12 million years, continue to thrive despite concerns over climate change. 

• While some feared droughts and rising temperatures were causing their decline, recent research by Dr. Sarah Venter suggests otherwise. 

• Her study found that most baobabs in Africa, including exceptionally large and old trees, are flourishing, with many showing resilience even in the face of environmental challenges.

• Though a few baobabs have collapsed, most have regrown from their stems, showcasing the tree’s resilience. 

Europe in Africa

U.K. Gives Chagos Islands Back To Mauritius

• The U.K. has agreed to transfer sovereignty of the Chagos Islands to Mauritius after more than 50 years of British control.

• The deal, reached after years of negotiations, allows the U.S. to retain its military base on Diego Garcia for 99 years, a key strategic site in the Indian Ocean.

• Mauritius will begin a resettlement program on the islands, but Chagossians are still barred from Diego Garcia, causing frustration.

• The treaty represents a major step in the decolonization process, with both the U.K. and Mauritius aiming to finalize it quickly.

Sports in Africa

Springboks Reclaim Rugby Championship

• Last weekend, South Africa’s Springboks defeated Argentina’s Los Pumas 48-7, winning the Rugby Championship and marking their first title since 2019.

Africa Trivia Answer

Answer: Bangladesh, Nigeria and Pakistan. Read more.

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