27th March 2024
Good morning. Nigeria confronts 30 year high inflation with another rate hike under Governor Olayemi Cardoso, China pledges support for Zambia's debt restructuring efforts, Nissan Motor tests waters in the African automotive market, and Ethiopia's largest bank navigates a recovery process following a system glitch. Here is your daily Roosters Crow:
Nigeria's 30 Year High Inflation Battle: Central Bank Raises Rates Amidst Economic Challenges
Nigeria's central bank, led by Governor Olayemi Cardoso, raised the monetary policy rate to 24.75% as inflation soared past 30%, marking its highest level in three decades. The decision, Cardoso's second since assuming office, followed a significant 4-percentage-point hike in February, the largest in 17 years. Rising price pressures stemmed from President Bola Tinubu's reforms, including fuel subsidy cuts and naira devaluation, stirring public discontent despite intended economic growth and investment.
China's Role in Zambia's Debt Crisis: Cooperation Amidst Bondholder Deal
China has pledged ongoing cooperation to aid Zambia's debt restructuring, withholding explicit endorsement of Zambia's recent $3 billion bondholder agreement. While Zambia and bondholders approved the proposal, China, the largest official creditor, refrained from confirming support. Zambia's debt woes, spanning three years, has faced obstacles like a rejected November bond deal. China's Foreign Ministry affirmed efforts to assist Zambia's debt disposal while refraining from explicit backing of the recent bondholder agreement.
Nissan Explores African Markets: Introduction of e-Power Cars in Tunisia
Nissan Motor announced plans to introduce e-power hybrid technology cars in Tunisia, aiming to assess demand in Africa's emerging automotive market. Despite low vehicle ownership rates, affordability and infrastructure challenges persist, hindering widespread adoption. Nissan's e-Power system, featuring a petrol engine and electric motor, targets markets primed for electrification. South Africa leads the continent with an electric vehicle policy roadmap, while Nissan expands exports of Navara pickup trucks to several African countries, reinforcing its commitment to the region.
Ethiopia's Banking Glitch: Recovery Efforts and Social Media Fallout
Ethiopia's largest bank, Commercial Bank of Ethiopia, has reportedly recovered nearly 80% of the $40 million lost due to a system glitch allowing excess fund withdrawals. President Abe Sano revealed approximately $14 million was withdrawn or digitally transferred, voluntarily by 15,000 individuals. 567 individuals remain non-compliant, leading the bank to “name and shame” by publicizing their details. The incident, widely publicized on social media, saw withdrawals primarily by university students, prompting institutional appeals for fund returns.
