Here are three big stories from Africa’s business and policy landscape you (probably) didn’t miss but should keep in mind this week:

World Bank suspends Uganda over anti-LGBTQ law 

The World Bank has suspended new loans to Uganda over its new law that criminalizes homosexuality. The law, which was passed in December 2022, imposes a penalty of life in prison for “aggravated homosexuality” and 10 years in prison for “simple homosexuality.” The World Bank said the anti-LGBTQ law violates fundamental human rights and creates a hostile environment for its staff and for projects it supports. The suspension of loans is a major blow to Uganda. The World Bank is a major source of development aid for Uganda, and the suspension of loans will make it more difficult for the country to finance its budget and implement its development plans. 

The Ugandan government has defended the law, saying it is necessary to protect the country’s traditional values. But the law has been widely condemned by human rights groups, who say it is discriminatory and violates the rights of LGBTQ people. The suspension of World Bank loans is the latest in a series of international sanctions against Uganda over the law. Recently. the European Union suspended budget support to Uganda, and the United States has imposed visa restrictions on Ugandan officials involved in the passage of the law.

Central Bank of Nigeria discloses $13.8 billion debt owed to JP Morgan and Goldman Sachs 

New reports from the Central Bank of Nigeria (CBN) show that the apex bank owes a combined sum of $7.5 billion to JP Morgan and Goldman Sachs. According to the audited financial statement released by the CBN, the debt is due to a securities lending agreement that the CBN entered into with the two banks in 2021. Under the agreement, the CBN pledged its holdings of foreign securities in return for cash. The cash was used to support the naira, which was under pressure at the time.

The CBN also owes another $6.3 billion in foreign currency forwards. These are contracts that the CBN entered into with foreign investors to sell them foreign currency at a fixed price in the future. The CBN entered into these contracts to try to stabilize the naira, but the value of the naira has continued to decline. The CBN’s debt to JP Morgan, Goldman Sachs, and foreign investors is a major concern for the Nigerian economy. The debt is denominated in foreign currency, which means that it will increase in value if the naira continues to decline. This could put a strain on the CBN’s finances, making it more difficult for the government to meet its financial obligations.

Multichoice says goodbye to Malawi

MultiChoice, the owner of DStv, has terminated its services in Malawi after a pricing dispute with the Malawi Communications Regulatory Authority (MACRA). MultiChoice had announced plans to raise its prices in Malawi by an average of 25%, but MACRA blocked the move, saying that the price hike was unfair to consumers. MultiChoice argued that it needed to raise prices in order to cover its costs, which have been rising due to inflation and the depreciation of the Malawian kwacha. MACRA disagreed, saying that MultiChoice still made a profit in Malawi, even after adjusting for inflation.

In addition to the price hike, MultiChoice and MACRA also disagreed about who has the authority to set prices for DStv in Malawi. MultiChoice argued that it is a South African company and that MACRA does not have the authority to regulate its prices in Malawi. The dispute went to court, and the High Court upheld MACRA’s order. This meant that MultiChoice could not raise its prices in Malawi. Consequently, MultiChoice decided to terminate its services in the country altogether, announcing that no new DStv subscriptions or reconnections will be accepted in Malawi starting August 9th. Existing subscriptions will be honoured until September 10th. 

ICYMI: Market roundup

• Nigeria’s equities market edged upwards over a 5-day trading week, with the NGX All-Share Index appreciating by 0.20% to close at 65,325.37 points. The top gainers were Guinea Insurance plc (50.00%), The Initiates plc (30.56%), Chellarams plc (29.79%), Sunu Assurances Nigeria plc (23.66%), and Cornerstone Insurance plc (21.65%). The top decliners were John Holt plc (-18.37%), Dangote Sugar Refinery plc (-12.00%), RT Briscoe plc (-10.42%), CAP plc (-10.00%), and Nascon Allied Industries Plc (-10.00%).
• The naira closed the week at N740.60/$ on Friday at the investor’s and Exporters’ window.
• Brent crude closed the week at $86.81, while US West Texas Intermediate (WTI) crude closed at $83.19.
• The global cryptocurrency market cap stood at $ 1.18 trillion, as of 3 am Monday, the 14th of August. Bitcoin stood at $29,246.63, a 0.49% increase over the week, Ethereum also increased by 0.27% to trade at $1,839.47. However, the Binance coin dropped by 1.43% over the week, to trade at $240.32.
• Last week, Moove, one of the world’s first mobility fintechs, secured $76 million in new funding. The funding consists of $28 million in equity from new and existing investors, in a round led by Mubadala Investment Company, $10 million in venture debt from funds and accounts managed by BlackRock, and $38 million in previously undisclosed funds raised during the prior twelve months. 
• Egypt-based AI recruitment company Talents Arena raised a $750 K pre-seed funding round to fuel its expansion plans into Saudi Arabia and the GCC.