5th February 2024

Africa's Resources: Global Battle

Western miners face challenges in tapping into Africa's critical raw materials as the continent's reserves gain global attention. While Middle Eastern powers emulate China's investment in Africa, Western firms, constrained by risk aversion and ESG concerns, struggle to advance projects in countries like the Democratic Republic of Congo. Major miners Rio Tinto, BHP Group, and Anglo American, facing shareholder scrutiny, navigate challenges in negotiations with Ivanhoe Mines. Rising costs and competition for critical minerals complicate the search for assets, contrasting with Middle Eastern investors like Saudi Arabia and the UAE, deemed more capable of taking risks.

Namibia's New Leadership

Namibia's new president, Nangolo Mbumba, was sworn in following the death of Hage Geingob, who succumbed to cancer. The 82-year-old Mbumba, previously vice president, will lead until November 2024 when elections are scheduled. In his inaugural address, Mbumba pledged to build on the foundation laid by the country's leaders. Netumbo Nandi-Ndaitwah, likely a presidential contender in November, was sworn in as vice president. Mbumba, an influential figure in the ruling party, has a diverse background including education roles in Namibia and the United States, UN positions, and past ministerial roles, including finance.

Senegal Election Turmoil

Senegal's indefinite postponement of elections following the disqualification of opposition candidates has sparked concerns, with France urging a quick resolution. President Macky Sall's announcement led to a delay in the Feb. 25 polls, citing a dispute between the National Assembly and the Constitutional Council. The political turmoil, a first for Senegal, may impact investor confidence in a fast-growing economy. Critics argue it represents a democratic setback, with fears of a constitutional coup if Sall stays in power beyond his mandate's end in April. Security measures are heightened ahead of planned opposition rallies.

Morocco's Deficit Declines

Morocco's annual trade deficit shrank by 7.3% to MAD 286 billion ($28.6 billion) in 2023, driven by reduced energy imports and increased tourism revenue, reports the foreign exchange regulator. Imports declined 2.5% to MAD 715 billion, while exports rose 0.2% to MAD 429 billion. Factors contributing to the improved deficit included decreased energy imports, lower wheat and ammoniac imports, a 27% surge in automotive sector exports, and record tourism revenue at MAD 104 billion. Remittances from Moroccans abroad also hit a record MAD 115 billion, up 4% from 2022, playing a key role in bolstering hard currency inflow.