Dear Friends,

A very happy Thanksgiving to our American readers.

Have a great weekend everyone.

• Absa. The South African banking giant is on the verge of buying the Mauritian assets of Hong Kong and Shanghai Banking Corporation (HSBC) for an undisclosed amount, pending regulatory approval, as part of its strategy to grow its retail and business offerings in the country. A Business Day report says the deal will see HSBC sell its wealth, personal, and banking operations in Mauritius to Absa’s subsidiary in the country. The deal includes some 38 000 customers (BusinessDay).

• Afrobeats. As the world becomes more African, the art and culture of the continent is becoming more mainstream. An example of this is the rise of Afrobeats — Nigerian star Burna Boy won the first-ever best Afrobeats act presented by the Billboard Music Awards. Fellow Nigerian artist Rema won the award for best Afrobeats song with the global hit “Calm Down.” Billboard is the latest U.S. awards body to add an African music category. Earlier this year, the Recording Academy announced the expansion of the 2024 Grammys to include a new category: best African music performance (Grammy Awards).

• Chad. The World Food Programme is seeking US$185 million to ensure continued support for crisis-affected populations in Chad over the next six months. The Programme says its current lack of funds could soon halt food and nutrition aid for over 1 million people in the country (Agence France Presse). 

• Democratic Republic of Congo (DRC). The Congolese electorate heads to the polls this December. Campaigning for the presidential election kicked off in synchronicity with a surge of violence in the country’s eastern, mineral-rich provinces. M23 rebels, reportedly backed by Rwanda, have been advancing towards the provincial capital (DW). 

• Germany. Chancellor Olaf Scholz committed €4 billion to the Africa-EU Green Energy Initiative, proclaiming that a significant share of Europe’s largest economy’s green hydrogen needs will be sourced from the continent — especially from Namibia (Reuters).

• Ghana. The African Development Bank (AfDB) greenlit a US$102.6 million budget support program to assist Ghana’s fiscal consolidation and economic recovery amid the country's ongoing talks with creditors about debt restructuring (Reuters). Next Monday, Ghana will announce its interest rate decision as it struggles with currency depreciation and high inflation (running at 35%).

• Kenya. The International Monetary Fund (IMF) is set to expand its financing to Kenya by US$938 million to secure the nation’s forex reserves before a US$2 billion Eurobond repayment is due in June ‘24. The Kenyan shilling remains Africa’s sixth worst-performing currency, as tracked by Bloomberg this year (Bloomberg). Meanwhile, the World Bank announced a potential US$12 billion support to Kenya over the next three years (Reuters).

• Liberia. George Weah, Libera’s President, conceded defeat to Joseph Boakai in a recent run-off election. Mr. Weah’s concession ends worries about post-electoral violence in the country’s second democratic transfer of power since 1944 (The Economist). 

• Madagascar. Andry Rajoelina is projected to win a third term to rule the East African island nation as President in an election boycotted by most opposition candidates. Unrest has defined this election cycle as police imposed curfews and several polling stations have been set ablaze (Reuters). 

• Malawi. The IMF approved a US$178 million loan for Malawi to boost its foreign exchange reserves (Bloomberg). Malawi is ranked the 174th poorest country in the world. 

• Senegal. Inflation in Senegal slowed to 2.4% in October, the lowest rate in more than two years (Bloomberg).

• Somalia.  Disaster agencies reported that flash floods in Somalia have resulted in 50 fatalities and displaced almost 700,000 people, leaving over 1.7 million in need in the Horn of Africa (Al Jazeera). 

• Zimbabwe. The death of a democratic activist is the latest in what civil society and political leaders say has been a string of violent episodes since the elections in August. The country remains under the iron fist of the ruling ZANU-PF party which has ruled since the end of colonial rule (NYT). 

Three graphics for you this week. The first details South Africa’s improved yet still worryingly high unemployment rate. The second and third map China’s consumption of African minerals and Zimbabwe’s rise as a lithium powerhouse. 

In context: South Africa is known for its 30% + unemployment rate. But in good news, employment rose above the level it was before the COVID-19 pandemic — with the finance and community and social service sectors adding much-needed jobs in the three months through September 2023. The number of employed people in the country stands at 16.7 million. Despite this improvement, the 31.9% jobless rate remains among the highest in the world. Recently appointed as an Adjunct Professor at Columbia Business School, Colin Coleman in a MoneyWeb interview laid out his solution set for the problems bedevilling the South African economy. 

In Context: The Economist reports on Africa’s rising importance in the critical minerals industry. The publication writes that according to Rystad Energy, by 2025, Africa’s share of global lithium production will be 10.6% — up from just 0.1% in 2019 — with Zimbabwe accounting for most of it. Overall, more than 90% of Africa’s supply this decade will come from entities at least partly owned by Chinese firms according to Benchmark Mineral Intelligence. China has 8% of global lithium reserves but refines 60-70% of the metal.