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

Nigeria cuts power supply to Niger

In the aftermath of the coup that usurped President Mohamed Bazoum from power in Niger, Nigeria has suspended its electricity supply to its neighbouring country. Niger is considerably reliant on Nigeria, which serves as its primary source of electricity. As much as 70% of Niger’s electricity supply is hinged on Abuja’s support.

Before this development, the Economic Community of West African States (ECOWAS) put sanctions on Niger but has not said if these include electricity supplies. In addition to a one-week ultimatum to restore constitutional order and suspend financial transactions with Niger, ECOWAS decreed the freezing of “all service transactions, including energy transactions”.

However, there is another aspect to consider. The Kainji Dam, which supplies most of Nigeria’s hydropower, relies on turbines driven by water flow from the Niger River. This situation raises concerns about Nigeria’s energy sustainability if the military-led government in Niger were to take an unprecedented step – blocking the river’s flow from their side.

GSK exits Nigeria

After 51 years of operation in Nigeria, GlaxoSmithKline (GSK), a British multinational pharmaceutical and biotechnology company announced plans to exit Nigeria last week. The company, well-known for its products such as Augmentin, Neosporin, Panadol, Sensodyne, Advair, Ventolin, and Theraflu, among others, is taking this action after evaluating the options for moving to a third-party distribution model for its pharmaceutical products.

Before now Recall that the company had noted that challenges with accessing forex were disrupting the availability of drugs in Nigeria. And at a point, shareholders of the company had called on the board and federal government to save the company from the brink of collapse.

GSK is not the only company with plans to exit Nigeria. A combined impact of some early reforms in Nigeria has led numerous companies to withdraw their operations. GSK is simply the latest in this sequence raising questions about the future of businesses in Nigeria amidst the economic recalibration.

UK offers £60 million support to Nigeria

The government of the United Kingdom has said it is offering support totalling £60 million for agriculture, food systems and humanitarian activities in Nigeria.

According to the British government, the package is hoped to help more than 4 million people develop better agricultural practices and combat the effects of climate change occasioned by carbon emissions.  

Nigeria is currently facing economic challenges that have led to a significant increase in inflation, reaching a prohibitive 22.79 per cent. This high figure has been primarily driven by a steep rise in food prices, causing food inflation to climb to 25.25 per cent. In light of the alarming nationwide food inflation, the federal government declared a state of emergency on food security  The assistance fund provided by the UK could play a crucial role in enhancing the resilience of the country’s fragile food system, which remains highly susceptible to the adverse impacts of climate change.

ICYMI: Market roundup

• The Nigerian Exchange Group opened trading on the stock market on Monday 31 August. The NGX All-Share Index appreciated by 0.22% to close the week at 65,198.08. The top gainers were Sunu Assurances Nigeria PLC (55.00%), Chellarams Plc (32.95%), Abbey Mortgage Bank (32.73%), Dangote Sugar Refinery PLC (25.00%), and Skyway Aviation Handling Company PLC (20.82%). The top decliners were John Holt plc (-33.18%), OMATEK Ventures Plc (-30.61%), Sovereign Trust Insurance plc (-28.57%), Eterna Plc (-26.74%), and Ikeja Hotel PLC (-18.52%).
• The naira closed the week at $1/₦743.07 against the dollar at the Investors’ and Exporters‘ window. 
• Brent crude closed the week at $86.24, while US West Texas Intermediate (WTI) crude closed at $82.82.
• The global cryptocurrency market cap stood at $1.16 trillion, as of 1;34 am Sunday, 6th of August. Bitcoin stood at $29,043, (a 0.99% decrease in 7 days), Ethereum stood at $1,834.49 (a 2.40% decrease in 7 days) and Binance coin stood at $243.36 (a 0.36% increase in 7 days).
• South African venture capital firm, REdimension Capital, has raised over $10 million for its inaugural fund.
• Terragon, a cloud analytics and marketing platform, has announced a $ 9 million Series B round.
• Remedial Health, a Nigerian startup digitizing pharmacies and bringing efficiency to the pharmaceutical value chain, has raised USD 12 M Series A equity-debt funding.
• Emtech, an African provider of central banking infrastructure announced a $4 million seed investment.
• Traction, the Nigeria-based merchant solution platform, announced a $6 million seed round.