We bring you various leading news from across Africa, on business, economy, market, and politics. Towards A Profitable Africa.
Kenya Out Borrowing Again, Warns World Bank; Nigerian Banks Worry Over The Nation's Debt Servicing Fee; Facebook Loses Cryptocurrency Fight Again; Ramaphosa Promises to Deal With Eskom's Money Trouble
Nigerian National Petroleum Corporation discovers oil in the northern part of Nigeria; Bankers express worry over money apportioned to debt service; World bank WarnS Kenya against debt piling; Facebook's Libra suffers another blow.
Ethiopia Charms Pretoria For an Equity Stake in the Loss Making South African Airways
Ethiopian Airlines Group to consider buying a stake in South African Airways (SAA) should South Africa decide to sell equity in the struggling state carrier. Since 2011 South African Airways has not made a profit, the airline delayed the release of its annual earnings due to its precarious financial state. Group Chief Executive Officer of Ethiopian Airlines, Tewolde Gebre Mariam said that despite the African National Congress saying it would consider selling equity in the airline, there has been no visible strategy for such a plan. He added that if South Africa asked Ethiopian to buy a stake, they would consider it. Ethiopia and SAA are already partners in the Star Alliance. Tewolde said that the group had discussions with SAA's former Chief Executive Officer Vuyani Jarana before his resignation in May. A deal between the Ethiopian airline group and SAA may involve helping SAA chronic debt problems with banks, which are withholding further loans until the airline can present a repayment plan for 9.2 billion Rands ($611 million) of borrowings. Ethiopian Airlines is Africa's biggest aviation success story, with SAA and Kenya Airways being its main rival, which is struggling with losses and relying on government support. The Ethiopian carrier has looked to invest in other airlines around the continent, including new carriers planned for Ghana and Zambia.
Nigerian Diaspora Remittances is $2.6 Billion, Not $26 Billion - CBN Advises
The Central Bank of Nigeria (CBN) has disclosed that the official inflows of the remittances of Nigerians living abroad to the country were $2.6 billion and not $26 billion as quoted in some quarters. The apex bank cleared the air after some experts argued that the amount had not really impacted positively on the economy. Director, Corporate Communications Department, CBN, Mr. Isaac Okoroafor, who queried the sources of the data being referenced by critics, dismissed the representations as fraught with inaccuracies as he alleged that some people appeared to have misrepresented the transactions that constituted diaspora remittances. He explained that the data, purported to be from the World Bank had also been queried by the Monetary Policy Committee (MPC) of the CBN, as it did not reflect the actual amount of inflows from Nigerians living abroad.
Namibia To Achieve 95% Broadband Coverage in 3-Years, Deputy Information Minister Discloses
Namibia's Government aims to achieve 95 percent broadband coverage by 2024, Deputy Minister of Information and Communication Technology Engel Nawatiseb, told Parliament recently. Nawatiseb made this declaration while tabling the Broadband Policy and its Implementation Action Plan in the National Assembly. He added that the government also aims at 100 percent broadband connections and usage to all primary and secondary schools in the country to enable e-learning by 2024. Similarly, he said the government also intends to have 90 percent broadband connection and usage to 70 percent of the health facilities in the country to ensure e-health by 2024. He said the role of broadband services, as an enabler of economic and social development in countries, is widely recognized in various studies and in documents such as the report of the United Nations Broadband Commission. According to him, the fifth annual edition of the Alliance for Affordable Internet Report of 2018 indicates that affordable internet to low- and middle-income countries are where 1 Gigabyte of mobile broadband data is priced at two percent or less of average monthly income.
Nigeria's Economic Advisory Council To Include CBN Boss And Finance Minister
President Muhammadu Buhari has been urged to include the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, the Minister of Finance, Zainab Ahmed as well as some other ministers in the Economic Advisory Council (EAC). This was said by the Managing Director/Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu during an interview. According to Chukwu, it would be more appropriate if the relevant ministries/agencies were made members of the Council for ease of policy implementation. He stated that some of the decisions of the Council would be expected to cut across monetary policy, and as such, the CBN governor is not expected to be handed over the document by the executive arm for implementation. Chukwu said it was important for Emefiele to come in either as an advisor or as an observer. Chukwu made it known that there has to be a higher level of interface between the Council and the executive arm of government. He also said that the finance ministers and other economic ministers should join the EAC so that it wouldn’t be just advisory but executable government policies.
Mogadishu Interrogates Nairobi on the Violation of its Airspace; Obasanjo Advises Congolese to Invest in Cash-crops; SA's Small Business Minister Has a Solution For Xenophobia...
Former Nigerian President, Olusegun Obasanjo, has called on the Democratic Republic of Congo (DRC) to invest in agriculture; Nigeria generated the total sum of N691.11 billion between January and June 2019; Ethiopian Prime Minister wins Nobel Peace Prize; Google pulls down a game that makes the player act like a Hong Kong protester from its App store
The World Bank Expresses A Pessimistic Sentiment Towards African Economy
The World Bank has revised overall growth projections for Sub-Saharan Africa to 2.6 percent in 2019 about 0.2 percent lower than the April forecast. In the 20th edition of Africa's pulse released on Wednesday this week, the World Bank noted that growth would be hampered by persistent global economic uncertainty. "Global uncertainty is taking a toll on growth well beyond Africa, and real GDP growth is also expected to slow significantly in other emerging and developing regions. The recovery in Nigeria, South Africa, and Angola, the region's three largest economies, has remained weak and is weighing on growth prospects. In Nigeria, growth in the non-oil sector has been sluggish, while in Angola the oil sector remained weak. In South Africa, low investment sentiment is weighing on economic activity. "Africa's economies are not immune to what is happening in the rest of the world, and this is reflected in the subdued growth rates across the region. At the same time, the evidence clearly links poor governance to poor growth performance, so efficient and transparent institutions should be on the priority list for African policymakers and citizens," said Albert Zeufack, Chief Economist for Africa at the World Bank. The report listed Rwanda as one of the non-resource intensive countries on the continent which has enjoyed growth accelerated by strong construction activities alongside Côte d'Ivoire and Ethiopia.
Devastated by Boko Haram Insurgency, Yobe State Recorded Lowest IGR in H1 2019
The latest Internally Generated Revenue report released by the National Bureau of Statistics showed that all states in Nigeria generated the total sum of N691.11 billion between January and June 2019. According to the Bureau’s report, the IGR generated by the 36 states and FCT rose by 94.2 billion (15.7%) when compared to the N596.91 billion IGR generated in half 2018. The report also showed that thirty-one (31) states and the FCT recorded growth in IGR while five (5) states recorded a decline in IGR at the end of H1 2019. Details of the report showed that across the 36 states, Lagos State generated the biggest IGR of N205.16 billion, representing 30% of the total states’ IGR in half-year 2019. River State ranked as the second biggest with an IGR of N75.9 billion Other states among the top 10 states with the biggest IGR include FCT (N38.5 billion), Delta (N36.3 billion), Ogun (N29.5 billion), Kaduna (N22.4 billion), Akwa Ibom (N20.4 billion), Ondo (N19 billion), Kano (N18.5 billion) and Cross River (N16.7 billion). Gombe, Yobe and Taraba states recorded the lowest IGR of N2.08 billion, N2.2 billion and N3.27 billion.
Ethiopia-Eritrea Border Conflict Resolution Sealed with 2019 Nobel Peace Prize
Ethiopia Prime Minister Abiy Ahmed has won the 2019 Nobel Peace Prize for "for his efforts to achieve peace and international cooperation, and in particular for his decisive initiative to resolve the border conflict with neighboring Eritrea." The Nobel committee said during its announcement Friday that the coveted prize was also meant to recognize all the stakeholders working for peace and reconciliation in Ethiopia and in the East and Northeast African regions. Ahmed clinched a peace deal with Eritrea President Isaias Afwerki last year that ended 20 years of the "no peace, no war" stalemate between the two countries. According to TIME, at least 70,000 people were killed since the border disputes began in 1998, five years after Eritrea gained independence from Ethiopia.
IMF Finds Fault With Buhari's Budget Revenue Projections; Nigeria's Inequality Level Worries The World; True-Caller Bows to Nigeria...
Truecaller responds to (NITDA)’s probe on its alleged breach of privacy rights of Nigerians; Oxfam expresses concern over the rising spate of inequality in Nigeria; VEDANTA Zinc International will shut down its Skorpion Zinc Mine refinery; American airlines pulls the Boeing 737 Max from its schedules until mid-January