4 African Business March 2023
Business Intelligence News
Johannesburg plans solar farm to tackle ‘load shedding’
In a national broadcast just before Nigeria’s election, outgoing President Muhammadu Buhari ordered old small denomination 200 naira notes to remain in circulation. The countr y has been struggling with a shortage of physical cash since the Central Bank of Nigeria (CBN) began to swap old notes for new, redesigned ones. Buhari defended the polic y, describing it as a “positive departure from the past” and a “bold legacy step” towards free and fair elections by helping to curb vote-buying. He declared that the old bills will remain legal tender until 10 April, alongside new notes – though a court case brought by state governments against the CBN may change that again.
The government of South Africa’s Gauteng province plans to spend R1.2bn ($66m) on a solar farm in order to shield itself – including its capital Johannesburg – from the country’s energy crisis. Premier Panyaza Lesufi said in his State of the Province address on 20 February that this was part of a plan to lessen dependence on the state power firm Eskom, beset by failures leading to power cuts. “If we don’t tackle load-shedding and ensure that our province remains the economic hub of our country, we will face difficult challenges… In a few weeks, we will appoint six developers who will commence the construction of an 800 MW solar farm in Merafong.”
Ruto calls on Africa to collectively tackle climate change
President Ruto of Kenya has called on Africa to speak with one voice on climate change. Speaking in February at the second conference of the Heads of State and Government of the Climate Change Commission for the Sahel Region, he said that effective action will be felt only when the efforts of individual nations are converted to a collective endeavour. “We must defend our people against injustice that motivates the plunder of Africa’s natural resources,” he declared. Kenya will host the African Climate Action Summit from 4 to 6 September, at which African nations will review pledges made at the Cop27 climate summit.
A reprieve for small n a i r a not e s i n Nigeria
Africa must grow at 7% to 10% per year to achieve development goals
Experts meeting on the sidelines of the African Union (AU) summit in February emphasised the need for the continent to sustain annual growth of at least 7% to 10% over the next 40 years in order to meet the goals of Agenda 2063, the AU’s master plan for development. Presenting the study “Key Actions to Drive Inclusive Growth and Sustainable Development in Africa”, Kevin Urama, acting chief economist at the African Development Bank, said that Africa’s current growth is insufficient to eradicate poverty. Further study to analyse the continent’s growth trajector y and identify actions for doubling growth rates from the current level is expected to be completed in December 2023.
