30th April 2024
Good morning! Zimbabwe’s central bank holds rates amidst the launch of its gold-backed currency, the US vies for influence in Africa as China and Russia expand their presence, while African leaders call $120B and Coca-Cola's hints at a potential IPO. Here is your daily Roosters Crow:
Zimbabwe's Golden Gamble
Zimbabwe's central bank maintained its benchmark interest rate at 20% during its inaugural policy meeting post the launch of its gold-backed currency, ZiG. Governor John Mushayavanhu cited positive market feedback for the decision, expecting currency reforms to stabilize exchange rates and inflation. The Monetary Policy Committee also established an interest rate corridor spanning 11% to 25%. ZiG, introduced on April 5, is supported by 2.5 tons of gold and $100 million in foreign reserves, with interest rates resetting from 130% to 20% on launch day.
Africa Spoilt for Choice
Amidst China and Russia's expanding influence in Africa, the US has reaffirmed its position as the continent's preferred partner. Despite fierce competition, recent polls indicate higher approval ratings for China and Russia. Commerce Secretary Gina Raimondo emphasized the US as Africa's choice for partnerships, highlighting values of freedom and democracy. During her visit to Kenya, she emphasized a spirit of collaboration over lecturing. Meanwhile, Russian Deputy Foreign Minister Mikhail Bogdanov's visit to Sudan on Monday signaled support for the Sudanese army amid its year-long conflict with the paramilitary Rapid Support Forces (RSF).
Togo Political Transition
Legislative elections commenced in Togo on Monday, following constitutional reforms enabling President Faure Gnassingbe's 19-year rule extension. The revised charter, adopted in March, shifts presidential election authority to parliament. The new constitution outlines a vague process for selecting the head of state. Amid opposition backlash, over four million registered voters cast ballots for 113 lawmakers from 2,352 candidates. Gnassingbe's UNIR party faces opposition challenge after previous boycotts. Togo, historically resisting dynastic rule, witnesses ongoing political unrest despite constitutional amendments.
African Leaders Call for $120 Billion
African leaders convened on Monday, urging affluent nations to boost contributions to the World Bank's low-interest facility, IDA, crucial for development and climate initiatives. President William Ruto of Kenya advocated for a minimum commitment of $120 billion at a gathering with the World Bank. African economies grapple with a deepening development crisis and climate emergencies. Recent floods in Kenya and severe droughts in Southern Africa underscore the urgency. The proposed amount would surpass the 2021 fundraising, aiming to address pressing global challenges through IDA lending cycles.
Fizzing with Potential
Coca-Cola is reportedly considering an IPO for its African bottling arm, aiming for a valuation exceeding $8 billion, sources revealed. Plans, still in early stages, may see changes. The move aligns with last year's commitment to list Coca-Cola Beverages Africa (CCBA) publicly. Initially planned for 2021, the IPO was delayed due to market volatility stemming from geopolitical tensions. Once envisioned as a $3 billion offering, the potential IPO could significantly impact the Johannesburg Stock Exchange, marking its largest listing in years.
