GOOD MORNING CHOP FAMILY!
It’s Thursday already?… Just one more day till the weekend!
But before you check out and coast through your workday, make sure you catch up on the latest chop from the continent.
In this edition:
Will the UAE leave OPEC?
China opens its gates.
Jollof … e too cost!
TRENDING TOPICS
The energy world is burning with rumors that the United Arab Emirates might be the next to exit the OPEC oil cartel.
Following Angola’s departure last year, the UAE has reportedly felt restricted by production quotas as it seeks to maximize its output capacity.
If the UAE says “dueces”, it could start a domino effect, and the cartel could crumble, and oil price stability would really be in flux. This will be interesting to follow.
FYI, there are six (6) African OPEC members: Algeria, Nigeria, Libya, Congo, Equatorial Guinea, and Gabon.
African Proverb of the Day
"Those who get to the river early drink the cleanest water." (Kenya)
MARKET MOVES
BUSINESS
The Eye of West Africa
Just like Xi Jinping promised, starting May 1st, China is officially implementing a zero-tariff policy for 100% of tariff lines for all African countries with which it has diplomatic ties.
This is a massive development for exporters.
So basically, any goods exported to China (from Africa) would not be subject to Chinese tariffs. Thus making African goods cheaper for the Chinese consumer.
The top exports to China from Africa include: Crude Oil, minerals, and agricultural products.
To mark the occasion, China also just handed over the new $56.5 million ECOWAS headquarters in Abuja.
The much-anticipated beautiful building has been dubbed the "Eye of West Africa," and it’s “looking” for much deeper trade integration with the East.
FINANCE & MARKETS
Courtesy The Guardian
The Cost of the "Green" Transition
A new UN report is sounding the alarm on the hidden financial and environmental costs of mining critical minerals like lithium and cobalt in Africa.
While these minerals fuel the global AI and EV boom, the report highlights the creation of "sacrifice zones" where local water supplies are being depleted.
Chop’s Take - So all this gist about AI and being “Green” sounds good, right? But at whose cost? And I don’t only mean monetary cost.
The irony is that the environments where these precious minerals are dug out of that fuel the AI and Green revolution, leave behind a cesspool of pollution, decay, and poverty.
But who cares as long as I can drive my Tesla while texting on my iPhone, and discarding my plastic water bottle out of my window …
Learning about these “sacrifice zones” is disheartening, but all we get are lectures from the West on how “we” (Africans) should focus on being green and environmentally conscious. A beg comot!
TECH
AI’s Thirst for Power
Piggybacking on the last segment, the race for AI dominance isn't all about code; it's about hardware. The actual “stuff” that makes up the devices that power AI and the gadgets we use to access it.
We're seeing a surge in demand for copper and rare earth elements found across the continent.
Tech hubs in Kenya and Nigeria are watching closely as these supply chains tighten, potentially driving up the cost of local hardware assembly and infrastructure.
AI is often sold as the cure-all for every problem, but we often forget about the problems it creates along the way and the associated costs that come with it.
⚡ Quick Bites ⚡
The 30k Jollof: The cost of preparing a pot of Jollof rice for a family of five in Nigeria has hit a staggering ₦30,435. Fuel shocks and rising transport costs are making this beloved staple a luxury for many. See the breakdown here.
Benz vs. Osimhen: German automaker Mercedes-Benz has reportedly filed a complaint against Super Eagles star Victor Osimhen over an alleged ₦142 million debt related to a vehicle lease. Read the story.
Digital Skies: Ethiopian Airlines is expanding its digital footprint, integrating more AI-driven logistics to manage its cargo fleet as e-commerce across the continent picks up speed.
🌍 What Else is Cooking?
Powell’s Curtain Call: In what is expected to be his final meeting as Fed Chair, Jerome Powell and the U.S. Federal Reserve held interest rates steady today at 3.5% to 3.75%. The decision was reportedly the most divided since 1992, with a 13-11 vote signaling a split on how to handle the "wait-and-see" approach. Read the full Fed report.
Big Tech’s AI Payday: Microsoft and Alphabet (Google) both blew past earnings expectations today. Microsoft reported that its AI business alone is now on a $37 billion annual run rate—up 123% year-over-year. Meanwhile, Alphabet’s cloud strength is following a similar upward trajectory. See the Microsoft earnings breakdown.
Amazon’s Record Q1: Amazon reported net sales of $181.5 billion, with AWS growing at 28%—its fastest pace in 15 quarters. Interestingly, their custom chip business has topped a $20 billion revenue run rate, proving they are serious about cutting their reliance on outside hardware. Read Amazon's official results.
Meta's Big Bet: Meta is planning to nearly double its AI-related capital expenditure in 2026, with forecasts reaching as high as $135 billion. Much of that is going toward "Meta Superintelligence Labs," a bet that is sparking intense debate among investors. Get the scoop on Meta's spending plan.
Dish of the Day 🥘
Since we highlighted the high cost of Jollof this edition, we made it a point to hit the streets and find the cheapest plate of Jollof we could find in Nigeria… and it had us in some sketchy areas😁.
But we did manage to find a “mama put” deep inside a local village, and she priced us 2.5k naira - not bad!
Did You Know? 🤔
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