Africa’s Alibaba looks more lemon than unicorn 19 Dec 2019 Jumia’s post-IPO limp could be life-threatening. The continent’s first billion-dollar tech firm has just enough cash to make it to 2021. But with losses widening due to high delivery costs and short-sellers questioning online transaction numbers, raising more money will be tough.
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.
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.
Tanzania’s nuts policy is so bad it’s good 22 Nov 2018 President John Magufuli is shelling out $320 mln to buy all its cashew crop at a hefty premium to help farmers. The government faces a big loss. Failure would at least expose the folly of ham-fisted state intervention, at odds with Africa’s gradual liberalisation.
Zambia debt dispute undermines African credit 17 Apr 2018 The copper producer has denied it has dollar debt beyond its $8.7 bln of foreign borrowing. Its vague clarification comes two years after a $3 bln bond scandal in neighbouring Mozambique. Bilateral lending, particularly from China, is blurring the credit picture across Africa.
Glencore is a weather vane for mining M&A 21 Feb 2018 The Swiss commodity group’s once-swollen net debt is below cash flow, but it will only decide later this year whether to hike dividends further. That leaves CEO Ivan Glasenberg scope to look for deals. If Glencore can’t find any decent ones, its peers probably won’t either.
Current account is key Africa factor in 2015 2 Jan 2015 Rapid African growth is likely to continue. But too much spending and borrowing has led many countries into trade deficits. As lenders become more discriminating, the state of the balance of payments, along with freedom from Ebola, will become keys to continued growth.