17th January 2024
Niger, Russia Bolstered Ties:
Russia and Niger had agreed to enhance military cooperation. The Russian Deputy Defense Ministers had met Niger's junta-appointed Defense Minister to develop defense relations and stabilize the region. The move had raised concerns as Niger's junta ousted French troops and severed security ties with the EU, potentially creating a new foothold for Russia. Niger's significance in uranium, oil, and combating Sahel militants made it strategically crucial for the US, Europe, China, and now Russia. The junta-appointed Prime Minister had also planned to discuss partnerships in defense, agriculture, and energy during his Moscow visit.
Shell Exited Nigeria:
Shell had agreed to sell its Nigerian onshore oil business to a consortium of local companies for over $1.3 billion. The deal had allowed Shell to exit the challenging Niger Delta region, where it had faced disputes over oil spills and human rights violations. The buyer, Renaissance, included Nigerian companies ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin. While local companies' presence had increased as international majors exited Nigeria, regulatory approval had remained uncertain. The deal, part of Shell's strategy to simplify its portfolio, involved a $1.2 billion loan to the buyers and additional cash payments. Meanwhile, Nigeria's currency had hit a record low in the parallel market due to persistent dollar shortages and increased demand. Despite currency reforms introduced by President Bola Tinubu, the naira had depreciated by about 50% against the dollar in 2023. The central bank had aimed to clear a backlog of forward foreign-exchange contracts to boost investor confidence and attract inflows.
Davos 2024 Highlights:
In the kickoff of Davos 2024, South African Central Bank Governor Lesetja Kganyago had dismissed interest rate cuts while inflation persisted. Kganyago had emphasized the need for inflation to decline to the anchor of 4.5% before considering policy adjustments. Despite easing supply constraints, he had noted inflation remained stubbornly high, requiring keeping rates higher for a longer duration. Finance Minister Enoch Godongwana had been expected to address the deteriorating debt trajectory in the budget presentation. Elsewhere, U.S. Secretary of State Antony Blinken had pledged commitment to a peaceful resolution between Rwanda and Congo while meeting Rwandan President Paul Kagame at Davos. Tensions had involved accusations of Rwanda supporting M23 rebels, allegations Rwanda had denied. Over 6.5 million people had been displaced in Congo, emphasizing the need for diplomatic solutions to address regional conflicts and humanitarian challenges.
Tanzania Lifted Kenya Airlines Ban:
Tanzania had reinstated approval for Kenya Airways to operate flights between Nairobi and Dar es Salaam after a temporary ban. The ban had been in response to Nairobi denying Air Tanzania's request for cargo flights. The decision had reflected diplomatic negotiations, emphasizing the importance of aviation connections in the East African region, a key market for Kenya Airways.
