Here are three big stories from Africa’s business and policy landscape you (probably) didn’t miss but should keep in mind this week:
Anonymous Sudan hacks X(formerly Twitter)
Last Thursday, a group of hackers from Sudan disrupted X, formerly known as Twitter, in more than a dozen countries. Their motive was to pressure Elon Musk into launching his Starlink satellite internet service in Sudan. These hackers, who identified themselves as “Anonymous Sudan,” flooded Twitter’s servers with traffic, causing a more than two-hour outage that affected users in the US, UK, and several other countries.
In a statement on Telegram, the group said they were targeting Twitter because Musk had not responded to their demands to launch Starlink in Sudan. They also cited the ongoing civil war in Sudan, which has hindered internet access for the population, as a motivation for their actions. Their disruption technique involved a distributed denial-of-service (DDoS) attack, a method that floods a website with excessive traffic, rendering it inaccessible.
The attack on X is the latest in a series of cyberattacks targeted at Elon Musk. In recent weeks, Musk has been the target of hacking attempts, phishing scams, and death threats. As of now, neither X nor Musk has publicly addressed the disruption caused by this attack, nor have they responded to the group’s demands.
MTN raises commercial paper notes
MTN Nigeria has raised ₦125 billion ($161 million) by issuing series 6 and 7 commercial paper notes. Commercial paper notes are unsecured debt instruments typically issued for short periods, usually less than a year. They are a popular financing option for companies that need to raise short-term cash. The interest rates on commercial paper notes are typically higher than the interest rates on longer-term debt instruments. The 265-day and 181-day commercial papers were issued on August 23, 2023, with yields of 13.50 percent each.
MTN Nigeria initially sought to raise ₦100 billion, but the offer was oversubscribed by 146%, resulting in the issuance of ₦125 billion. This is the largest aggregate CP issuance within a calendar year by any corporation in Nigeria’s debt capital markets. The proceeds from the issuance will be used to meet MTN Nigeria’s short-term working capital needs. This move underscores the company’s robust financial standing, boasting a healthy balance sheet and a consistent track record of meeting its financial commitments. The issuance is also a vote of confidence from investors in the company’s prospects.
Nigeria’s stock market is the second best-performing in Africa
The Nigerian Exchange Limited (NGX) has emerged as the second-best-performing stock market in Africa in the last three months. The NGX All-Share Index rose by 19.33 percent in the period, trailing only the Ghana Stock Exchange (GSE), which rose by 22.84 percent. Several factors have contributed to the NGX’s impressive performance. First, growing investor confidence in the Nigerian economy is noteworthy, driven by government measures aimed at enhancing economic conditions, such as reducing inflation and attracting foreign investments. Secondly, listed companies are doing well. Many companies have reported strong earnings in recent quarters. This has made investors more confident in the stock market.
The NGX also launched new exchange-traded funds (ETFs), enabling investors to purchase a diversified basket of stocks with a single transaction. This has simplified investment in the Nigerian stock market. The NGX’s performance is in contrast to the overall trend in the global stock markets, which have been declining in recent months due to concerns about inflation, interest rate hikes, and the war in Ukraine.
ICYMI: Market roundup
- Nigeria’s equities market edged upwards over a 5-day trading week, with the NGX All-Share Index appreciating by 3.00% to close at 67,527.19 points. The top gainers were Omatek Ventures plc (53.33%), Nigerian Aviation Handling plc (41.80%), Association Bus Company plc (39.71%), Consolidated Hallmark Insurance Nigeria plc (38.55%), and Thomas Wyatt Nig. plc (27.65%). The top decliners were CWG plc (-19.80%), John Holt plc (-14.38%), Prestige Assurance plc (-12.50%), May and Baker Nigeria plc (-11.82%), and Ikeja Hotel Plc (-11.76%).
- The naira closed the week at N740.38/$ on Friday at the investor’s and Exporters’ window.
- Brent crude closed the week at $85.55, while US West Texas Intermediate (WTI) crude closed at $85.55.
- The global cryptocurrency market cap stood at $ 1.04 trillion, as of 8 pm Sunday, the 3rd of September. Bitcoin stood at $25,952.66, a 0.63% decrease over the week, Ethereum also decreased by 1.15% to trade at $1,367.26. However, the Binance coin dropped by 2.16% over the week, to trade at $214.14.
- Egypt-based fintech HEDG raised a six-figure pre-seed funding round from undisclosed investors based in Egypt and Saudi Arabia.
- South African insurtech startup LeaseSurance raised $ 161 K in seed funding in a round led by Fedgroup Private Capital, to expand its team and further develop cutting-edge technology solutions for the real estate industry.
