Global Courant
Here are the three most important events from the past week in the African business and technology world that you may have missed.
The CBN says it has cleared the currency arrears
Nigeria’s naira rallied steeply in official and parallel markets last week after authorities announced they were clearing a backlog of unmet foreign exchange liabilities to industries and foreigners. According to Hakama Sidi Ali, a spokeswoman for CBN, the apex bank has settled “all valid” foreign exchange arrears worth $7 billion. The last payment the company made was $1.5 billion.
Forex lags have been a heavy millstone for the naira, sending it down to an all-time low of almost $2,000 in February. It has also spooked many foreign investors over the past year, as capital inflows plummeted in 2023.
However, there is still a debate over the CBN’s FX approval. According to a BusinessDay report, Kingsley Nwokoma, Chairman of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), claimed “Nothing has changed.” What happened is that the CBN offered them the opportunity to get their money from the banks using the rates at the I&E counter. The airlines refused because the current I&E window rate is not the same as before for ticket sales.
Meta wants to pay Nigerian creators
Meta Platforms will allow content creators in Nigeria to make money through advertising and other features, in the hope that it will keep the country’s top content creators on its platforms. These options and features are expected to be ready before June 2024, says Nick Clegg, the company’s President of Global Affairs.
Content creators in America, Australia, Canada and South Korea were the first to make money in 2023 through ‘Ads on Reels’, a performance-based program that pays based on the number of plays of their reels.
“A performance-based model allows creators to focus on the content that resonates with their audience and helps them grow,” Meta said in May 2023 after months of testing the program.
Senegal gets a new president
Senegal held general elections on Sunday, March 24, and the results were pouring in. Voters chose from 19 candidates approved by the Constitutional Council, Senegal’s highest court. President Macky Sall, whose term ends on April 2, is not on the ballot because he has served two terms.
It marks an end to a month-long drama that Sall started by delaying the election. That decision raised concerns among many countries, because Senegal has long been seen as an example of stability in West Africa. The country has never experienced a military coup, even though military juntas have recently taken over some of its neighbors.
As of press time, supporters of opposition party Bassirou Diomaye Faye have taken to the streets of the capital Dakar to celebrate as early results from Sunday’s vote showed him in the lead. The celebration took place as at least five of the seventeen candidates in the race issued statements congratulating Faye on what they called his victory.
ICYMI: Market Overview
The NGX All-Share Index and market capitalization declined by 0.42% to end the week at 104,647.37 and N59.169 trillion respectively. The biggest winners were Juli Plc. (+46.10%), NEM Insurance Plc (+45.11%), International Energy Insurance Plc (+22.95%), Jaiz Bank Plc (+20.40%) and Thomas Wyatt Nig. Plc. (+19.78%). The biggest losers were Julius Berger Nig. Plc. (-17.15%), Daar Communications Plc (-14.10%), UPDC Real Estate Investment Trust (-12.73%), Deap Capital Management & Trust Plc (-12.50%) and MTN Nigeria Communications Plc (-12.25%). The naira closed the week at N1422.85/$ on the NAFEX window. Brent crude fell to $85.91/barrel, while WTI crude fell to $81.14. The crypto market cap now stands at $2.55 trillion. Bitcoin fell 1.65% to close at $66,845; ETH lost 3.95% to close at $3445; and BNB gained 2.61% to close at 582.
ClusterLabthe Tunisian company behind Arabic audiobook summary app Reedz has secured $600,000 in pre-seed funding.
Acasia Ventures has invested a six-figure bridging round in Cairo’s digital marketplace Marts Pharmacy. Egypt MNT Halan has come into possession of Advans Pakistan Microfinance Bank.
