Crypto legislation, more EU-Africa trade and Nigeria enters a new era of FX policy
a QCX Africa publication
Hi QCX People!
There’ve been some impactful moves these last few months in Africa, and they’re providing opportunities left, right and centre.
Today we’re highlighting some interesting movements across the continent, and as always some tips to take full advantage them for your activities in Africa.
For better or worse, in sickness and in health - Crypto finally gets its regulatory oversight in South Africa (VentureBurn)
Why it actually matters: The crypto industry has ironically been clamouring for regulation, because broad adoption of crypto has been hampered by the perspective that it is a fringe asset, a play-thing of tech nerds and get-rich-quick junkies. They’ve now got it - a definitive move to regulate crypto by SARB - and crypto providers are hopeful that the gates to institutional money might now have been opened.
Summary: The South African Reserve Bank has officially (and finally, after many years of back-and-forth) classified cryptocurrencies as ‘financial assets’. It is the first major step in the direction of a full regulatory framework for crypto. The new legislation won’t solve crypto providers’ woes, but it certainly does mark a new era for the industry.
Marketing Insight: Before creating your ads, thoroughly review the advertising policies of Google and Facebook related to cryptocurrencies. Familiarise yourself with the specific restrictions, guidelines, and prohibited content. Both platforms regularly update their policies, so stay up-to-date.
A lightning-quick trade deal between Kenya & Luxembourg (AllAfrica)
Why it actually matters: Europe is a massive consumer, Kenya is a massive producer. This duty-free export deal means Kenya’s agricultural produce will be significantly cheaper in Europe, putting Kenya in a super-powerful competitive position and likely a boon to its export economy.
Summary: Brussels struck a deal in record time with Kenya, under which the African country will be able to export its agricultural produce to Europe duty-free. The move comes amid trying times for European food security as wild fires rage on around the continent, destroying farmland.
Marketing Insight: Create marketing campaigns that celebrate the collaboration between the two regions, highlighting the stories of Kenyan farmers and the journey of their produce to European markets. When it comes to agriculture, people value transparency within the supply chain to understand how their food is produced.
Nigeria’s new President ends currency manipulation (AfricaNews)
Why it actually matters: Nigeria has long been openly manipulating its currency (the Naira) to suit its agenda, with the official exchange rate determined by its central bank, and an entirely separate exchange rate (priced in USD) which applies only to its export activities. The end of manipulated FX policy for Nigeria is akin to the end of the gold standard back in the 1960’s for the US - a major move that brings the country’s FX policy into the modern era.
Summary: Nigeria’s new President Tinubu, who has been in power for just 5 weeks, has made sweeping changes to Nigeria’s foreign exchange policy in an effort to bring the country into the modern era, by scrapping it’s manipulated currency in favour of a single, open market exchange rate for the Naira. The short term effects on the economy have been highly mixed, but the move has been received well by the international markets.
Marketing Insight: Nigeria is rebranding itself as progressive and open to economic reforms, potentially attracting more attention from the international business community. Brands that join this progressive moment will benefit from the new era Nigeria is moving into.
Fact: ‘Q’, ‘C’ and ‘X’ are the English denotations for the 3 most common linguistic clicks in African languages. If you can say all three clicks, three times in a row fast, you can legally call yourself African.
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