GOOD MORNING CHOP FAMILY!

Since Thursday was named after the Norse God Thor, it’s your cue to go out and smash the day. No procrastinating, no delay, bring results! But before you do that, check out what’s on the menu today.

TRENDING TOPICS

Strait Drama
Oil prices have been hovering around and above the $100 mark because of the continued blockade and fighting in and around the now famous Strait of Hormuz.

Ships have been seized, mines are being laid, and orders to shoot ships have been made. Nations like Pakistan and others are trying to broker continued peace talks, but it appears we are at an impasse.

The global economy is in jeopardy, and back home in African countries, people are hoping and praying for things to ease up so energy prices can come down, securing supply lanes and reducing inflationary pressures.

BUSINESS

The AFC (African Finance Corporation) has been busy lately. They just announced that they will open a regional office hub in Nairobi, Kenya, and will target around $2 billion in regional investment, focusing on infrastructure and industrial development.

Along with this move, they secured a cool $100 million from Exim Bank (India) to further enhance and strengthen ties while deploying much-needed capital to critical infrastructure.

A watershed moment may also have been witnessed, as reports indicate that domestic capital pools have surpassed external flows.

Domestic non-bank funding has exceeded $2 trillion, while external flows are around $1.7 trillion.

This is a good step forward in shoring up financial sovereignty in Africa.

In more AFC news, they also welcomed the Bank of Tanzania as a sovereign shareholder in the AFC, which will help diversify ownership and participation across the continent.

We will keep tabs on the AFC and will report on “results”, because to be honest, the easy part is getting funding and loans, the hard part is deploying and execution.

FINANCE & MARKETS

Blocks and Chains

We have been told that Blockchain is the framework that will change how we complete financial transactions going forward. But has it started yet? When will it take hold?

In simple terms, blockchain in finance is a shared, digital ledger that records transactions (securely) across a network of computers without the need for a central bank or intermediary.

It will make transactions more efficient, transparent, and extremely secure. Maybe this is why the big financial institutions are fighting against its deployment.

Back in Accra, Ghana, there is an agreement with a Singaporean company to establish a partnership with a local Ghanian firm to make commerce and trade (especially in the informal sector) easier and with less friction.

There will be real-time access to current exchange rates, real-time settlement, and 24/7 access to liquidity, no need to wait until the bank opens at 9 am.

Chop’s Take - This ambitious endevor will not be easy, but we argue that it is imperative. African economies need fewer obstacles and smoother access to funding, payment, and transaction recording.

If this is done right, imagine the positive implications. The informal economy could merge with the mainstream, and more exact data and information will be readily available to help African economies plan and grow.

BUT, will African leaders score the goal, or fumble the ball?

TECH

The Million-Job Engine

A new study from the Harvard Business School just put numbers to what we’ve all been feeling: African fintech is not just moving money; it’s all about jobs.

Researchers estimate that if payment systems continue to harmonize, fintech firms could help create over one million remote jobs on the continent by 2030.

By solving the "how do I get paid?" problem for international companies, startups like Flutterwave are effectively turning every African city into a global talent hub.

Chop’s Take - I think we should be careful and not pigeonhole ourselves into being “workers” for international companies or big fintech firms, but should focus more on solving “how do I get out of poverty” for the millions on the continent.

Fintech alone won’t solve this. Jobs overall will help, along with sound policies that remove the barriers to starting and owning businesses and getting funding.

⚡ Quick Bites ⚡

🌍 What Else is Cooking? 🍳 The Global Spread

Dish of the Day 🥘

All of this finance talk and Middle East drama has made us hungry. So, as we were visiting our Cameroonian friends in Yaounde, they treated us to Achu.

Achu is a lovely dish comprising pounded smooth cocoyam, paired with “yellow soup.” The soup is made with palm oil, local spices, and ours had cow skin (ponmo) and tripe, along with garden eggs. Wow, it was great!