Sudan coup throws rock into choppy Nile waters 28 Oct 2021 The army has seized power in Khartoum, pushing it back into diplomatic isolation. Sudan and Egypt had existing gripes with Ethiopia over the damming of the mighty river. Removing Khartoum’s veneer of civilian rule risks future spats over Nile water use spiralling into conflict.
Africa’s debt chickens return to restive roost 31 Dec 2020 Even before Covid-19, the continent faced a reckoning. Low commodity prices remove a major growth pillar, while mounting leverage rules out more foreign borrowing. With budgets and citizens under pressure from Angola to Zimbabwe, Africa Rising looks more like Africa Uprising.
Ethiopia piles war risk on shaky economy 24 Nov 2020 Civil conflict is sending the once fast-growing African nation into reverse. Lenders and donors may withdraw, deepening a dollar crunch from reduced investment and exports. High debt and reliance on foreign capital leave PM Abiy Ahmed ill-placed for a prolonged crisis.
Ethiopian swoop would seal South Africa’s descent 4 Sep 2020 Pretoria’s bankrupt state airline may secure a parachute from Addis Ababa, a stunning reversal of fortunes from the 1990s. After apartheid, South African firms blazed trails across the continent. With corruption and dogma hobbling their home base, the tables are turning.
Ethiopia’s state telco has more than rarity value 16 Oct 2019 Prime Minister Abiy Ahmed is ending Ethio Telecom’s monopoly. A private partner will have to fund new kit, while new rival providers will squeeze super-fat margins. With 100 mln potential customers and perhaps a $5 bln valuation, it’s a big test for Ethiopian reforms.
African phone-mast IPO is ready for safari 17 Sep 2019 London-based Helios Towers is dusting off last year’s plans to take its portfolio on the road. Places like Congo have improved politically, and growth prospects across the continent look worth the journey. A possible $2 billion valuation is in plain sight.
Africa growth outlook puts democrats on back foot 3 Jul 2019 Ballooning populations mean per capita wealth is falling in key democracies Nigeria and South Africa. That’s a recipe for trouble. Alongside a stronger performance by autocratic Egypt, it also makes worrying reading for those who believe a democratic Africa is a more stable one.
Safaricom should hunt for its next CEO in Africa 1 Jul 2019 Kenya’s government wants a local to replace the telecom firm’s respected British boss, who has died of cancer. That’s too narrow a remit for an $11 bln outfit which is also big in fintech. But with neighbouring Ethiopia opening its vast market, African expertise is essential.
Africa phone king is China’s tech star in waiting 15 Apr 2019 Little-known Transsion stands out among those waiting to IPO on Shanghai's new board. The Chinese handset maker has strong Belt and Road credentials as the top brand in the last frontier. With striking similarities to Xiaomi’s early years, there’s plenty to get excited about.
Crash findings keep Ethiopia reform dreams intact 4 Apr 2019 An early probe into Ethiopian Airlines’ March 10 disaster found the company’s pilots were not to blame. That’s a double relief for Prime Minister Abiy Ahmed. With the flag carrier central to his privatisation push, internal failings could have stymied wider plans for reform.
Crash report clarifies Boeing’s 737 exposure 29 Mar 2019 Officials think a suspect anti-stall system activated before last month’s airliner crash in Ethiopia, the WSJ reported. That raises the plane-maker’s legal liability. But it also makes it clearer how to fix the problem and get the bestselling jet back in the sky.
Boeing investors fear worst from 737 tragedy 11 Mar 2019 The aerospace giant’s shares lost over $25 bln in value after the second crash of its newest model in six months. That overstates the likely financial impact even if U.S. regulators copy China and ground the plane. The real threat is creating an opening for a Chinese competitor.
African miners get mix of red carpet and red card 8 Feb 2019 The continent can’t work out whether to shake hands with the sector, or shake its fist. Warm welcomes from Ghana, South Africa and Ethiopia contrast with the aggressive resource nationalism of Tanzania. A nasty slowdown there would bolster the open-door approach.
East Africa will buck global great rift trend 20 Dec 2018 Twenty-five years after genocide, Rwanda’s economy is motoring sufficiently to need new markets. The potential inclusion of Ethiopia would make East Africa a single market of 250 million people. If it prospers, it would provide a useful counterpoint to global balkanisation.
Eritrea’s potash potential justifies the risk 2 Oct 2018 Miner Danakali is looking to add a big chunk to global potash production via a $322 million mine in the African state. Ongoing demand for fertiliser and a surprise Ethiopian peace deal underscore its interest. Investors should apply an exotic risk discount though.
China and Africa struggle to kick debt habit 3 Sep 2018 President Xi Jinping pledged another $60 bln to the continent while warning against the kind of binges that have led countries to default. Yet Africa shows no sign of restraint, and China’s lending remains opaque. Accusations of debt-trap diplomacy are likely to linger.
Ethiopia’s bond plan will test hunt for yield 28 Nov 2014 The Horn of Africa nation plans to issue a debut dollar bond, of reportedly $1 bln. The demand for such frontier market debt, which is at the risky and illiquid end of the sovereign bond spectrum, will show just how adventurous investors have grown in their quest for returns.
Ethiopia’s Nile plan emblem of global water woes 9 Jul 2013 A dam to export hydroelectric power looks at odds with IMF hopes for more competition. Egypt’s bellicose threats are wrongheaded, too. Obscured by the rhetoric are longer-term concerns about how nations can sensibly grow their economies when water’s a scarce or shared resource.