Next Africa: Two sides of change

Nigeria’s oil and gas industry is evolving ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to Next Africa, a daily newsletter on where the continent stands now — and where it’s headed. Sign up here to have it delivered to your email. In today’s edition, we look at Nigeria’s oil industry reforms. And: The Nigerian stocks rally is the world’s best Egyptian inflation is easing despite fuel shock We look at the impact of Morocco’s football success Too Much, Too Soon? Bola Tinubu is overseeing, perhaps, the most consequential reform yet of Nigeria’s oil and gas industry. The manner in which he’s going about it is beginning to worry investors. The president’s biggest change was scrapping a costly fuel subsidy, followed by incentives for deep-water projects and tax waivers on certain fossil-fuel investments. Approvals have been faster for international companies divesting and special concessions were granted to Aliko Dangote’s mega-refinery. The results are showing. Nigeria — Africa’s biggest crude producer— is finally a net exporter of petroleum products. Shell, TotalEnergies and ExxonMobil have announced major deep-water commitments, while local producers that benefited from divestments continue to boost output. A vendor at a weekly market in Abuja, Nigeria. Photographer: Etinosa Yvonne/Bloomberg The same speed that has impressed investors is now unsettling some of them. As the US and Iran resumed hostilities this week, executives gathered in an Abuja conference named after Tinubu to take stock of the state of their industry. Publicly, the reforms were praised. Privately — in smaller groups and lowered voices — there’s a concern that Nigeria is also becoming less predictable. Investments are long-term bets requiring billions of dollars and a payback period stretching across administrations. Investors need assurances that policies can be durable, surviving legislators and presidents. That’s why Executive Order 9, which is Tinubu’s most significant diktat and directs the state-owned oil company and the regulatory agencies to remit oil and gas revenues to a federation account, has become a test case. While some hailed it as necessary to improve state finances and transparency around the agencies that have historically been opaque, it also encroaches on aspects of a landmark petroleum-industry law that took decades of bargaining to pass. The law was meant to provide the sector with a coherent legal and governance framework, yet it was simply overridden by a presidential order without recourse to lawmakers. Reforms can often hand investors riches, but change subject to the whims of politicians can also take them away. — Nduka Orjinmo Tinubu. Photographer: Evaristo Sa/AFP/Getty Images What Everyone’s Reading  Nigerian equities have overtaken South Korea’s for the highest dollar-based returns this year. The African nation’s stocks have rallied on macroeconomic reforms, higher oil prices and improved foreign-exchange supply, with the naira gaining 4% against the dollar since January. That S&P Dow Jones Indices is considering upgrading the country to frontier-market status adds to investor appeal. Egyptian inflation slowed for a third consecutive month, though new risks to US-Iran peace talks may prompt caution when the central bank decides on interest rates later on Thursday. Consumer price growth has eased since April, despite pressures from higher fuel costs from the Iran war and a weakened Egyptian pound. Oil eased from its biggest gain since May on Wednesday as traders assessed the outlook for Middle Eastern crude supplies after fresh hostilities between the US and Iran. The US military struck Iran for a second day, and Tehran retaliated against American allies in the Persian Gulf, raising fears of a return to war. The World Bank approved an $875 million loan for Ivory Coast to support economic growth and job creation, and signed an interim deal with Eni’s local unit and the West African nation to provide technical assistance for its burgeoning gas sector. The business district of Abidjan, Ivory Coast. Photographer: Andrew Caballero-Reynolds/Bloomberg The City of Johannesburg pledged to pay creditors by next week to have $219 million of government funding reinstated and is in talks about selling debt to fund upgrades to infrastructure. The Nation Treasury withheld transfers to South Africa’s economic hub because of failure to manage its finances properly, amid deteriorating services. World Bank Sees Kenyan Growth at Weakest Since Covid on Iran War Kenya’s economy is likely to grow at the slowest pace since the coronavirus pandemic because of the effects of the US-Israeli war on Iran, according to the World Bank. Quote of the Week “Life is unfair. The world is unfair.” Hossam Hassan Egyptian men’s World Cup football coach Hassan was speaking after his side lost to Argentina in dramatic fashion, claiming the defending champions were favored in refereeing decisions. Last Word Morocco is the final African nation remaining in the World Cup and faces one of the favorites, France, in the quarter finals. Its run at the football showpiece adds to a record unbeaten streak and victory in Boston today will match its semi-final spot in Qatar four years ago. It’s no surprise then that success on the pitch has spilled over into growing influence in Moroccan politics. In this week’s Next Africa podcast, Jennifer Zabasajja asks former Moroccan star Hassan Kachloul what the Atlas Lions’ historic campaign means to fans back home. Morocco celebrate a second goal against Canada during their Round of 16 match on July 4. Photographer: Kevin C. Cox/Getty Images We’ll be back in your inbox with the next edition tomorrow. Send any feedback to gbell16@bloomberg.net. More From Bloomberg Enjoying Next Africa? You might also like: Businessweek Daily for fresh perspectives on business, economics, politics and tech Markets Daily for what’s moving in stocks, bonds, FX and commodities Balance of Power for the latest political news and analysis from around the globe Bloomberg Money for insights, ideas and tools for doing more with your money. AI Today for a chronicle of the disruptions and threats of AI on businesses, workers, finance and economies We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Next Africa newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |

Fixing fashion’s heat risk

Fashion suppliers face growing challenges  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Rising temperatures are a growing concern for the world’s top fashion brands, many of which rely heavily on supply chains in nations experiencing outsized impacts from climate change. One manufacturing campus in eastern India shows how suppliers are tackling heat threats, though at a cost. Also, we hear about preparations for a Super El Niño and learn how New Zealand — with an economy dominated by agriculture — is becoming a global test bed for methods to curb methane emissions. Subscribe to Bloomberg.com for unlimited access to all our coverage. Hot fashion By Azman Usmani A grid of about 800 sewing machines whir, rows of hissing irons let out clouds of steam and hundreds of workers move across a production floor at a vast clothing manufacturing facility in eastern India, some using laser-guided cutters to slice through giant rolls of fabric. Outside the sprawling site in Khordha, in Odisha state – a 40-acre campus intended to eventually pack in as many as 10,000 staff – temperatures on a late June morning hover around 34C, and feel far more extreme as hot, damp winds sweep in from the Bay of Bengal to deliver punishing humidity. Employees heading to work at Epic Group’s manufacturing site in Khordha, Odisha, on June 26. Photographer: Anindito Mukherjee/Bloomberg The conditions appear all too familiar for supply chains across Asia that serve the $1.7 trillion global fashion industry, and in which tens of millions of staff – predominantly women — face increasingly severe impacts from extreme heat, frequently with inadequate protections inside their workplaces. In India, scorching temperatures are driving higher employee absences and contributing to productivity losses of as much as 10% for garment manufacturers during the peak summer months, according to a June study by the NYU Stern Center for Business and Human Rights. Production lines for the clothing industry have long been particularly susceptible to the effects of extreme temperatures – often combining large numbers of workers in close proximity, high volumes of heat-generating equipment and basic or poorly ventilated buildings. The 40-acre Trimetro site has been built for as many as 10,000 employees. Photographer: Anindito Mukherjee/Bloomberg “Industrial architecture was designed to keep the most economically important component in the factory safe — which was the machines,” says Vidhura Ralapanawe, executive vice president for innovation and sustainability at Epic Group, a garment supplier to brands like Uniqlo that opened its new Khordha campus in April with an ambition of tackling workplace heat. The wider clothing sector has been slow to address the impacts of surging temperatures on employees, according to Ralapanawe. “It’s like the crab in the boiling pot of water. You don’t see the problem because it’s happening so slowly,” he says. “By the time you realize the thresholds are crossed, it comes as a shock.” Step into Epic’s Trimetro campus, through airlock-style doors and past machinery blasting out a curtain of chilled air, and the tropical stew outside vanishes. Thick overhead pipes circulate cool gusts across production lines, while huge fans suspended from ceilings slowly push a continuous breeze toward workers, keeping the temperature inside closer to 28C. The air conditioning system uses oversized pipes to reduce friction and chiller power consumption. Photographer: Anindito Mukherjee/Bloomberg Beneath the sweeping blades, Mamata Sahani, 23, and Madhusmita Das, 27, guide fabric through stitchers. Their faces are dry and collars free of sweat, and the pair joke together as the factory’s speakers broadcast a mix of Hindi film soundtracks and Odia devotional songs. In a previous job at a different factory there was minimal cooling equipment, Sahani explains. “We just had a few fans across the factory floor. During summers the tin roof got so hot that we felt we were baking,” she says. “I am able to work better here. It isn’t hot, so I can focus on my work more.” Keep reading Workforce at risk 90 million The number of people directly employed in the global apparel industry, many of whom are exposed to worsening climate risks, according to Cornell University’s Global Labor Institute and the International Finance Corp. Rising bill “The more you stretch the limits, the more expensive it becomes.” Vidhura Ralapanawe Executive vice president for innovation and sustainability at Epic Group on the mounting costs of tackling increasingly extreme climate impacts. Your Heat Week Zero listen Zero Is the World Prepared for Super El Niño? The great famine of the 1870s killed 50 million people — and El Niño was a key driver. Another El Niño phase has just begun and it’s expected to be among the strongest. There are five times as many people in 2026 as there were in the 1870s and the planet is 1.4C hotter. So are we better prepared? Bloomberg’s Akshat Rathi speaks with Mingfang Ting, professor of climate at Columbia University, about the natural phenomenon and its interaction with human-caused climate change. Listen now, and subscribe on Apple, Spotify or YouTube to get new episodes of Zero every Thursday. Extreme impacts ⚡ US heat sends power demand far beyond forecasts 🔥 Europe’s expanding heat wave tests fire defenses 💧 Here’s how climate change could raise your water bill World’s methane lab By Tracy Withers New Zealand’s farms are set to become a real-life laboratory for one of agriculture’s toughest climate challenges — reducing the methane cows and sheep belch.  After years of research and investment, the country is on the cusp of giving farmers the first of a new generation of tools to curb the amount of the greenhouse gas livestock emit. Whether they can be deployed at the scale and speed needed to meaningfully reduce emissions and satisfy climate goals remains uncertain. Cows at Pamu Landcorp Farming’s St Kilda facility near Taupo. Source: Pamu Landcorp Farming A growing number of startups and researchers are testing everything from methane-inhibiting compounds extracted from daffodils and probiotics known as Kowbucha — a nod to kombucha — to vaccines and selective breeding for lower-emitting livestock. Together, the technologies may reshape farming globally — if they can clear regulatory hurdles and gain widespread adoption. Get full coverage 🎥 Attention all filmmakers! Working on a short documentary about climate change? Don’t miss your chance to submit it to the Bloomberg Green Docs film competition. Grand prize: $25,000. Submissions accepted through August 14, 2026. See official rules at bloomberg.com/greendocs. More from Green California chosen for sodium-ion battery plant Peak Energy said it’s building what it describes as the first commercial US manufacturing facility for grid-scale sodium-ion energy storage systems in Sacramento, California. Read more Meat giant JBS pulls back from net-zero goal The world’s largest meatpacker is stepping back from a 2040 goal and dropping targets for indirect emissions. TotalEnergies exits from small-scale solar The company sold small solar assets in Europe to developers Amarenco Solar and Ampyr Distributed Energy. EU plans 2040 target to cut oil, gas consumption It wants to propose an electrification goal for the next decade to strengthen the local market for clean tech. Photo finish A live King Cobra in a cafe in Hong Kong. Photographer: Paul Hilton/Bloomberg News. At least 900 snakes have escaped from inundated breeding farms in China’s Guangxi region, the world’s largest snake breeding hub. The reptiles, including venomous cobras, fled into nearby villages and farmland as heavy rains flooded the area. Authorities deployed teams to capture the animals and set up temporary medical clinics to ensure rapid treatment for bite victims. Still, at least one woman died after being bitten as her journey to hospital was delayed due to flooded and blocked roads. More from Bloomberg Business of Food for a weekly look at how the world feeds itself in a changing economy and climate, from farming to supply chains to consumer trends Energy Daily for a daily guide to the energy and commodities markets that power the global economy Tech In Depth for analysis and scoops about the business of technology Explore all Bloomberg newsletters. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Green Daily newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |