In this edition:
Nigerian Supreme Court confirms Tinubu’s election
Toronto-based Orosur to mine lithium in Nigeria
DP World wins deal to manage Tanzanian port
South Korea turns to Africa for graphite supplies
Nigeria’s top court confirms Tinubu as president
Nigerian President Bola Tinubu’s controversial February 25 electoral victory was confirmed by the Supreme Court on October 24, paving the way for him to fully unfurl his economic and political agenda.
Seven justices of the Supreme Court that heard the appeal of two opposition candidates unanimously tossed their cases, relying mainly on technicalities. On the key issue of the Independent National Electoral Commission not following its own election guidelines and aborting electronic transmission of results from polling units, the court ruled that the electoral had the right to decide however it wished to transmit the results. Other grounds of appeal that bordered on certificate forgery and perjury were also dismissed.
That leaves Tinubu with the weakest mandate since Nigeria ended military rule in 1999, elected by only 8 million people, just 35 percent of the votes cast and less than xx percent of a national population of more than 200 people, a greater percentage of which believe he usurped the office.
Despite the affirmation of the Supreme Court, Tinubu will struggle to gain legitimacy in the eyes of most Nigerians. The polity will remain severely divided and trust in the electoral system broken, as European Union election observers noted, with beneficiaries unlikely to initiate reforms.
In the midst of it all, Tinubu has taken tough economic decisions including scrapping age-old fuel subsidies and allowing massive devaluation of the national currency, naira. As resentment toward his regime persists, Tinubu will be relying more on the military and security forces (who are already being pampered) to ensure a firm hold on power.
Toronto-based Orosur to mine lithium in Nigeria
Orosur Mining Inc., a Toronto-based company with a track record of operations in South America, won concessions to mine lithium in Africa’s most populous country, Nigeria.
Orosur has signed a joint venture with a Nigerian company, Jurassic Mines Limited, to explore four licences covering more than 300 square kilometres in the country’s central region. More areas are also under consideration for additional licences, according to a statement published by the company on its website.
“A team of experienced geologists is in place, with all necessary equipment and logistical support such that field programs will be commencing immediately,” Orosur said. “Work will start initially with preliminary reconnaissance, and it is expected that results and additional work can advance quickly.”
Orosur noted that Nigeria was emerging as one of the prolific regions of Africa with regards to lithium deposits and company ChairmanLouis Castro described the deal as a “continuation of the company’s strategy of securing high-quality mineral exploration opportunities in key jurisdictions worldwide.”
Thor Explorations is another Canadian company that has also drilled successfully for lithium in Nigeria, this time in the southwest. It also has a gold prospecting licence known as the Segilola Gold project located in Oyo state, also in the southwest.
The demand for lithium has surged worldwide with its use in rechargeable batteries for a wide variety of devices, from cell phones to electric vehicles to grid storage.
DP World wins deal to manage Tanzanian port
DP World, the United Arab Emirate’s ports and logistics company, won a management contract to manage the port in Tanzania’s capital for 30 years.
The contract will see DP World invest as much as US$250 million to expand and improve services at the Dar es Salaam port as part of President Samia Hassan’s push to increase revenue from the facilities. A container terminal is also being offered to private investors.
Director-General of the Tanzania Ports Authority Plasduce Mbossa, who signed the agreement on behalf of the government, said DP World will operate only four berths and not the entire port, with the deal subject to review every five years, and not exceeding 30 years in all.
The agreement provoked a backlash from opposition and civic groups, outraged at the idea of a foreign company managing the country’s port. There were street protests in June after the parliament approved the deal leading to several arrests.
South Korea seeks graphite supplies from Africa
South Korea is turning to Africa for graphite supplies after China, the world’s biggest producer, announced increased export controls.
Graphite is an important component of batteries used in electric vehicles. South Korea is currently exploring options for supplies from Tanzania and Mozambique to cover expected shortages, the trade ministry said in a statement.
Earlier this year, South Korea’s POSCO International Corp and Canada’s NextSource signed a memorandum of understanding that will see the South Korean mining firm getting 45,000 tons of graphite a year from Madagascar’s Molo graphite mine for 10 years. POSCO also signed a deal for the supply of another 45,000 tons of graphite a year from Tanzania.
Briefly
Ethiopia says it won’t force its way to the sea
Landlocked Ethiopia walked back a statement by its Prime Minister Abiy Ahmed that seemed to suggest it would use force, if necessary, to get port access to the Red Sea.
Ethiopia lost sea access after it conceded independence to neighbouring Eritrea in xxx after a three-decades war of independence. Its other neighbours with sea access are war-torn Somalia and tiny Djibouti.
Abiy said in another speech this week there was no “plan to achieve our objectives through force.”
Zambia agrees to a framework to restructure $3 billion bond repayment
The government of Zambia worked out a framework agreement with its bondholders that will enable the International Monetary Fund to make more bailout disbursements to the copper producer.
Zambia defaulted on its US$3 billion Eurobond payments three years ago and currently has liabilities of more than US$6 billion.
U.S., EU back deal for Angola port corridor
The U.S. and the European Union have signed an agreement that will see them back the building of an export corridor for DR Congo and Zambia through Angola.
Feasibility studies have started for a rail link for the two countries that are rich in critical resources to the Angolan port of Lobito, on the Atlantic. It’s part of the EU’s 300 billion infrastructure plan that seeks to challenge China’s positioning for access to critical minerals.
Economic Indicators
Namibia’s central bank left its benchmark interest rate unchanged at 7.75 percent.
Botswana’s central bank held its key rate at 2.65 percent for the seventh consecutive time.
Zimbabwe cut its benchmark rate to 130 percent as it lost the position of the global leader in rate hikes to Argentina.
Ahead
October 30
South Africa to release money supply data.
October 31
Kenya, Uganda to release October inflation figures
Namibia to release money-supply data
King Charles III to start a state visit to Kenya expected to recall colonial legacy
November 1
South Africa Purchasing Manager’s Index for October
Angola to release foreign reserves data
November 2
Summit on U.S. Africa Growth and Opport Act holds in South Africa
Africa Conference on Biosecurity holds in Lagos, Nigeria
November 3
Mozambique, Uganda, Kenya, Zambia and Ghana to issue Purchasing Managers Index reports.
Insights Newsletter is published by Afrika Insights, an Ontario, Canada-based business advisory and publishing firm. Email: afrikainsights@afrikainsights.ca