Business Headlines: Protests in Kenya, Inflated Oil Prices in Nigeria, and China’s Expansion into Congo and South Africa’s Foray into Medical Cannabis
In sub-Saharan Africa, several key events have been making headlines in the business world this week. In Kenya, protests against a tax increase plan have led to the weakening of the shilling. President William Ruto’s decision to shelve the plan has raised concerns about the country’s ability to meet International Monetary Fund targets, potentially leading to higher borrowing costs.
Meanwhile, in Nigeria, an executive of Dangote refinery has accused oil majors of blocking access to locally produced crude by selling it at inflated prices or claiming it was unavailable. This has forced the refinery to rely on expensive imports to meet its daily capacity needs. On a positive note, Namibia has announced plans to begin construction on its second desalination plant in January 2025, in response to increased water demand due to uranium exploration and green hydrogen plans.
In other news, China North Industries Corp has agreed to acquire struggling cobalt miner Chemaf SA’s assets in the Democratic Republic of Congo. Chinese investors, mainly state-backed firms, have been increasing their presence in Congo as they seek to secure copper and cobalt supplies for their electric vehicle industry. South Africa’s Cilo Cybin made history by becoming the first medical cannabis company to list on the Johannesburg Stock Exchange’s Alternative Exchange. The company plans to use funds from the listing to tap into the growing global market for medical cannabis, which is projected to reach $40.5 billion by 2032.
