14th March 2024
Good morning. Today, South Africa pioneers crypto regulations, Somalia relieved of $2B debt by global creditors, Nigeria gears up for eurobond issuance with $1B target and secures $1.3B funding for transformative railway project. Here’s your Roosters Crow:
South Africa Takes Lead in Cryptocurrency Regulation
South Africa is poised to grant licenses to around 60 cryptocurrency platforms by the end of the month, pioneering continental regulations mandating permits for digital-asset exchanges. The Financial Sector Conduct Authority, reviewing over 300 crypto-asset provider applications, underscores the nation's commitment to regulatory oversight. Commissioner Unathi Kamlana emphasizes that existing financial laws, particularly the FAIS Act, will govern crypto exchanges, ensuring integrity and consumer protection. As Bitcoin surges to record highs, South Africa's move aligns with global trends toward crypto regulation. Yellow Card Financial Inc.'s Botswana license remains a notable milestone in Africa's evolving cryptocurrency landscape.
International Support Eases Somalia's Debt Burden
The world's wealthiest nations have agreed to absolve Somalia of over $2 billion in liabilities, aiding the war-torn nation's quest to achieve debt sustainability. Paris Club creditors will waive $1.2 billion under the IMF and World Bank Enhanced Heavily Indebted Poor Countries Initiative, with an additional $815 million relief offered bilaterally. This accounts for 99% of Somalia's debt to Paris Club members as of January 2023. The move comes as Somalia grapples with over three decades of civil conflict and contends with the insurgency of al-Shabaab, an al-Qaeda-linked group.
Nigeria Ventures Back into International Bond Markets
Nigeria enlists Citibank NA, JPMorgan Chase & Co., and Goldman Sachs Group Inc. for counsel on its forthcoming eurobond issuance, marking its first since 2022. Expected before June, the bond's size remains undetermined but could reach $1 billion. President Bola Tinubu's approved $18 billion spending plan for 2024 drives the move, aiming to finance a deficit of 3.8% of GDP. Nigeria's resurgence in international bond markets aligns with broader emerging-market debt sales. Tinubu's reforms, including currency devaluation and subsidy removal, aim to attract foreign investment, supported by advisors like Standard Chartered Bank and Chapel Hill Denham.
Nigeria Secures Funding for Key Railway Project
Nigeria secures $1.3 billion funding for a pivotal railway project linking Kano to Maradi in Niger, announces the transport ministry. Led by China Civil Engineering Construction Company (CCECC), the consortium contributes 85%, enhancing economic and cultural ties between the nations. African Export-Import Bank and African Development Bank are among the backers. This development marks a significant stride in bolstering critical infrastructure, says ministry spokesperson. The initiative aligns with Nigeria's broader vision to rejuvenate the northern region and overhaul national transport networks, crucial for long-term economic development.
