BUSINESS - The African Mirror

Sep

26

2025

Economic sanctions need a rethink: evidence shows they raise food prices and hurt the poor most

BUSINESS

ECONOMIC sanctions are widely viewed by academics and policymakers as a better alternative to military interventions to pressure governments to change objectionable policies. The idea is simple: instead of using weapons, squeeze the ruling elite economically until they change their behaviour. The use of economic sanctions has been rising steadily. According to recent data from the Global Sanctions Database, the number of active sanctions grew by 31% in 2021 compared to 2020, and this upward trend continued through 2022 and 2023. In Africa, several countries are currently subject to sanctions imposed by the United States, the United Nations or the…

Sep

24

2025

By TAIWO HASSAN ODUGBEMI

Nigeria scores well on electricity reform rankings, but power supply isn’t affordable and reliable. Here’s why

BUSINESS

NIGERIA’S electricity sector remains fragile. About 85 million Nigerians (43% of the population) lack access to grid electricity. This is one of the biggest energy access gaps in the world. Generation capacity is roughly 12,000MW–13,500MW, but far less power is actually delivered. In 2023, Nigeria generated 4,500MW for a population of over 200 million. For comparison, Ethiopia, with a population of 132 million, recently added 6,000MW to its generation capacity. Prior to that, it generated 5,200MW. Nigeria’s under-delivery is largely due to systemic challenges in the grid. These include technical inefficiencies, vandalism and ageing infrastructure. A new Electricity Act was…

Sep

24

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

Climate-smart financing heats up Africa’s cooling industry

BUSINESS

AISHA used to throw away nearly half her tomatoes within three days. Heat, rough handling, and slow markets turned fresh fruit into waste. Today, she pays a small weekly fee for space in a solar-powered cold room two kilometres from her Vihiga market. The same produce now lasts three weeks. “Before the cold room, I would wake up worried that half my tomatoes would rot before I found a buyer,” she said. “Now I can keep them for weeks, and that means I decide when to sell, not the heat.” Her shift reflects a wider change in how farmers and…

Sep

24

2025

By IMRAAN VALODIA

Inequality in Africa: what drives it, how to end it and what some countries are getting right

BUSINESS

THE relationship between inequality and economic growth is a complex one, especially in Africa. Inequality is the result of a host of factors, including policy choices, institutional legacies and power structures that favour elites. Professor Imraan Valodia, director of the Southern Centre for Inequality Studies, spoke to Ernest Aryeetey, emeritus professor of Development Economics at the Institute of Statistical, Social and Economic Research, University of Ghana, about the issues. What policy choices have African governments made that have worsened inequality? Firstly, structural adjustment policies. Many African countries undertook these during the late 20th century, often encouraged by international financial institutions.…

Sep

18

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

Sharpening Africa’s edge in the diamond sector

BUSINESS

A new diamond polishing facility in South Africa has sparked discussions about beneficiation and ethical trade, as the continent seeks to capture more value from its mineral wealth. Finestar, an Indian diamond polishing company, recently opened a R300 million (more than US$17 million) plant on September 5 in the Gauteng Industrial Development Zone near OR Tambo International Airport. “Finestar’s R300 million investment may look modest in scale, but symbolically it’s important. It shows how foreign players see South Africa not just as a source of rough stones, but as a viable hub for skills and value addition,” said Thandiwe Khumalo,…

Sep

17

2025

By SPECIAL CORRESPONDENT

From dormant to dynamic: Botswana’s Tataki Mine’s revival story

BUSINESS

IN the rolling hills of Botswana's North East District, where the earth holds secrets forged over millennia, a remarkable transformation is unfolding. The Tataki Mine - once known as Tati Nickel - has awakened from an eight-year slumber, emerging as a beacon of hope for a nation determined to rewrite its economic destiny. For decades, Botswana's economic narrative has been synonymous with diamonds. While these precious stones brought prosperity, they also created a dangerous dependency. President Duma Gideon Boko recognised this challenge when he assumed office, confronting a sobering reality: the country's economy had been growing at just 3.8% annually…

Sep

16

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

Japan is investing in Africa’s economic future

BUSINESS

JAPAN is recasting its Africa playbook, shifting from aid to strategic investments. This week, Nissan announced a study into launching hybrid cars in South Africa, positioning its e-Power technology as a bridge where charging infrastructure and incomes still lag. The automaker already sells hybrids in Morocco, Egypt, and Tunisia. South Africa could be its next market. Just months earlier, in April, Nissan deepened its South African footprint with a R3 billion investment to produce the award-winning Navara pickup at its Rosslyn plant in Pretoria. The expansion will modernise the facility, add a flexible production line, and create around 1,200 jobs…

Sep

12

2025

By The African Mirror

AUDA-NEPAD pledges bold action to bridge Africa’s skills gap as historic Industrial Summit concludes in Zambia

BUSINESS

THE African Union Development Agency (AUDA-NEPAD) announced sweeping new commitments to transform industrial skills training across Africa as the groundbreaking Industrial Skills Week for Africa (ISWA) 2025 concluded in Lusaka, with youth voices driving unprecedented collaboration between governments, industry leaders, and development partners. Speaking to delegates from across the continent, AUDA-NEPAD CEO Nardos Bekele-Thomas delivered a stirring call to action, declaring that "Africa's industrial transformation cannot happen without transforming how we prepare our people – especially our youth – for the jobs of tomorrow." The two-day summit, themed "Powering Africa's Industrial Future: Skills for Innovation, Growth, and Sustainability," brought together…

Sep

12

2025

By CONRAD ONYANGO, BIRD STORY AGENCY

Africa’s airlines push for one sky

BUSINESS

AFRICA’S aviation market is entering a new phase as carriers resume long-dormant routes and expand into new and underserved corridors within the continent. Progress in the last two years has seen the launch of more intra-African direct flights, signalling a renewed momentum for the African Union’s Single African Air Transport Market (SAATM) initiative. Angola’s flag carrier, TAAG, launched direct services between Luanda and Nairobi on September 1, establishing the first nonstop link between the two countries. The inaugural flight of the Airbus A220-300 aircraft with a capacity for 137 passengers arrived with commercial passengers and a delegation of Angolan and…

Sep

09

2025

By XN IRAKI

Kenya has introduced new banking policies. An economist weighs them up

BUSINESS

THE Central Bank of Kenya has made two significant changes in the country’s banking sector. The first is to lift a decade-long moratorium on licensing new banks. Second is to raise capital requirements, the amount of money banks are required to keep readily available compared with the value of other assets they have. Bank capital is what shareholders have invested in the banking business. It’s a buffer against insolvency. Higher capital makes a bank stronger by reassuring depositors that their money is “safe” in case of a financial crisis. Economics professor XN Iraki answers some questions about Kenya’s banking sector…