Nigeria’s Richest Man Tries to Turn Around its Slippery Oil Slope

Nigeria’s Richest Man Tries to Turn Around its Slippery Oil Slope

By CultureBanx Team

  • Aliko Dangote is building the world’s largest single oil refinery

  • The Dangote Group has signed a $650 million loan deal with Afreximbank

CBx Vibe: “Take Off” The Legendary Fruitman

Nigeria’s wealthiest man Aliko Dangote is building the world’s largest single oil refinery through his Dangote Group. Currently, Nigeria exports all of its oil as crude and then reimports expensive refined petroleum. Will this move help to address the ongoing problems in Nigeria’s energy markets?

Why This Matters: The Dangote Group has signed a $650 million loan deal with the African Export-Import Bank (Afreximbank) in order to complete the $10 billion project. As for the $650 million loan, it’s arranged as a seven-year term facility with interest to be paid quarterly. Standard Chartered Bank is also letting the company borrow $3.3 billion for the project and Dangote has put in $6 billion of his own money. The remainder will be funded by equity and through export agencies.

“When we finish this project, for the first time in history Nigeria will be the largest exporter of petroleum products in Africa,” Dangote told the Financial Times.

Just how robust will this new facility be for Nigeria? It will process 650,000 barrels of oil a day, while also pumping out all the plastic the country’s 190 million people need, Reuters reports. If that’s not enough the refinery will produce three million tonnes of fertilizer a year, that’s more than all its farmers currently use on their fields.

Read More

Camels Bring New Flavor to Dairy Aisle

Camels Bring New Flavor to Dairy Aisle
  • Camel milk market expected to grow by 7% in the next 4 years

  • African ranchers choose to invest in camels, rather than cows

CBx Vibe: Drip” Cardi B, Migos

After experiencing more severe droughts in recent years, Kenyan ranchers are trading in their cows for camels. Since camels require less maintenance under extreme weather conditions, they have become a more sustainable source of milk in East Africa.

Why This Matters: Unlike female cows who depend on copious amounts of water daily to produce a steady milk flow, female camels can produce milk for about a week without consuming any extra water. This makes them a better investment for ranchers whose income relies on their consistent milk production.

Due to this increase in production, East Africans are capitalizing off of camel milk in many different ways. It’s replacing cow milk in chocolates and ice creams and is even sold fresh by the liter in vending machines.

Research from a study conducted by Technavio, a market research company, expects the camel milk market to grow by approximately 7% in the next four years, but the company admitted that plant-based milk alternatives are still their biggest global competitors.

“[Plant-based] drinks have low-fat and low-cholesterol levels. Medical benefits, rising health consciousness among consumers and increasing vegan population are driving the demand for such products.”

Read More

Kenya’s Silicon Savannah Pushes More Products Digital

Kenya’s Silicon Savannah Pushes More Products Digital
  • 9 out of 10 Kenyan adults own a mobile device

  • Kenya’s government wants e-services to help tackle corruption

CBx Vibe: “2 Phones” Kevin Gates

Kenya is mostly credited with drawing millions of unbanked people into the formal financial sector. Now the country is pioneering a new path beyond digitizing money where non-tech companies can use the Kenya’s robust infrastructure.

Why This Matters: Silicon Savannah, the nickname for Kenya’s fast growing technology sector, has grown past moving money and data over mobile networks. Now product-based companies from farming to pharmaceuticals are the new big tech companies in the region.

Kenya has been able to easily move beyond digital money to other types of businesses. This is primarily due to the high smartphone penetration in the region where 9 out of 10 adults own a mobile device.

As for farmers, they currently have poor logistics for getting food to markets where people can buy their products. Kenyans spend on average $0.47 of their income on food, according to the World Economic Forum. By going digital farmers can create a marketplace that cuts out layers of intermediaries.

When it comes to pharmaceuticals companies inefficiency raises the price of drugs, often beyond the ability of ordinary Kenyans to afford them. This industry going digital not only cuts out the middleman, it also decreases the risk of fake medicines entering the supply chain.

Read More