4 minute read
NEWS
Around Africa in seven stories…
FINANCE
SOMALIA MOVING TOWARDS A CASHLESS SOCIETY
IT HAS only been seven years since the city of Mogadishu installed its first-ever ATM. Since then, Somalia’s economy has evolved so quickly that it looks set to become the world’s first cashless society. The Central Bank of Somalia introduced a central payments system last month, connecting all 13 of the nation’s financial lenders to a single digital payment system. Cash usage was already in decline prior to COVID-19, but the global pandemic has sped up this process. Somalia’s economy now sees more than 67 percent of all payments made digitally, making the nation’s developing financial sector a significant opportunity for techsavvy innovators.
OIL & GAS
Large oil and gas field discovered off Côte d’Ivoire
A LARGE oil and gas field has been discovered approximately 60 kilometres offshore in Côte d’Ivoire. The field is thought to contain up to two billion oil barrels and 2.4 trillion cubic feet of gas, a huge boost to the West African nation’s current reserves estimated at 100 million barrels. Côte d’Ivoire has been extracting offshore oil since its discovery in 1977. The country currently produces circa 50,000 barrels per day but has its sights set on increasing investment in mining and energy sectors. This discovery is expected to boost investment in the region; neighbouring Ghana already produces about 200,000 barrels per day while Nigeria produces an impressive 2.5 million per day.
HEALTHCARE
France donates more than 10 million vaccines to African countries
FRENCH PRESIDENT Emmanuel Macron has issued a statement confirming that the European nation will send 10 million doses of COVID-19 vaccines to Africa before the end of 2021. The move comes after South African President Cyril Ramaphosa criticised richer countries for ignoring poorer nations’ struggle to buy vaccines. Africa is currently the least vaccinated continent in the world with just two percent of the 1.2 billion population fully vaccinated. Macron’s statement confirmed that the donation would allow 400 million people to be vaccinated in the next year, around one-third of the continent’s total population. Donated vaccines will be distributed through the African Union’s Vaccine Acquisition Trust.
ECONOMY
New Zambian President hopes to rebuild economy
ZAMBIA IS currently in the midst of an economic crisis, with ballooning national debt and accusations of corruption being thrown at all sides. But recently President Hakainde Hichilema has set his sights on reversing the nation’s financial difficulties by reducing borrowing from foreign lenders and increasing Zambia’s already impressive copper mining output. Copper demand has been rising with increased interest in sustainable energy, a demand that has seen the metal’s market price soar in recent years. Zambia’s finance ministry has outlined a plan to boost copper output, aiming to become the thirdlargest copper producing nation in the world by 2026 - behind Chile and Peru.
ECONOMY
TANZANIA’S PARLIAMENT
has ratified the African Continental Free Trade Area (AfCFTA) treaty, effectively joining the trade group’s market of 1.2 billion people. Ratification was announced by the nation’s Minister of Industry and Trade, Kitila Mkumbo via Twitter on September 9th. The move allows Tanzania to formally join the AfCFTA two years after thenPresident John Mafugali signed the agreement, signalling that current President Samia Suluhu Hassan is keen to develop strong relationships with other members of the East African Community. Tanzania became the 38th of 54 signatory nations to ratify the deal, which currently has a combined GDP of over $3 trillion and is committed to reducing intra-African tariffs by 90 percent within five years. THE GHANAIAN economy expanded by an impressive 3.9 percent year-over-year in the second quarter of 2021, improving on the 3.1 percent growth it experienced in the first three months of the year. The growth is encouraging after the country fell into recession following two consecutive quarters of economic contraction towards the end of 2020 – the first time Ghana has experienced a recession since the 1970s. Poor growth can naturally be attributed to issues caused by COVID-19, with this year’s reversing fortunes perhaps a sign that Ghana is on the road to overcoming the health concerns created by the global pandemic.
ECONOMY GHANA’S GDP BOUNCES BACK IN 2021
MINING A DELICATE SITUATION FOR GUINEA’S MINING SECTOR
A SUCCESSFUL coup d’etat in Guinea earlier this month has sent shockwaves through the mining industry, with the nation a significant player in the global aluminium, bauxite, and iron ore markets. President Alpha Condé was removed from office on September 5th by military forces, led by Mamady Doumbouya. The coup, which has been condemned by most major governments including the United Nations, initially sparked concerns that Guinea’s export of bulk minerals would be disrupted following the closure of the nation’s borders. However, borders were quickly re-opened by Doumbouya’s transitional government, who assured mining companies operating within Guinea under existing agreements will be honoured.
