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DAVOS 2024: Comparing Notes on Financial Inclusion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1935789375-820x547.jpg" alt="" class="wp-image-448110" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1935789375-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1935789375-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1935789375-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1935789375-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1935789375-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1935789375-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">18 January 2024, Switzerland, Davos: A man stands under a World Economic Forum sign. The annual meeting of the World Economic Forum is regarded as one of the most important meeting places for top politicians, top managers and scientists. Debates and confidential meetings focus on solutions to global challenges. Photo: Hannes P. Albert/dpa (Photo by Hannes P Albert/picture alliance via Getty Images)</figcaption></figure>



Thursday 18 January saw the fourth day of the World Economic Forum gathering in Davos, Switzerland. Some contentious topics were under discussion, the hottest debates raging around African debt.



Standard Bank Chairwoman Nonkululeko Nyembezi was one of the first delegates from Africa to tackle this sensitive subject. She said a sovereign-debt crisis is the biggest issue facing Africa right now, and nations need to address corruption and implement “fundamental structural reforms to address debt problems”.&nbsp;&nbsp;



According to the International Monetary Fund, more than half of the low-income countries in the region are now at a high risk of losing control of their debt, or are already in debt distress.&nbsp;Ethiopia became the latest African country to default on its debt after it failed to make an interest payment in December, joining a league of non-paying nations that includes Zambia, Ghana and Sri Lanka.



Nyembezi said building resilience in sub-Saharan African economies would not be possible without “knocking head-on” the issue of corruption.



Transparency International’s 2023 Corruption Perceptions Index puts sub-Saharan Africa’s regional average score of 32%, with 44 of the 49 countries assessed still scoring below 50%.&nbsp;



Nyembezi called for greater transparency on the balance sheets of highly indebted countries if they want to attract investment.



<h2 class="wp-block-heading" id="h-growth-opportunities-amp-projects-to-attract-investment">Growth opportunities &amp; projects to attract investment</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930407278-820x547.jpg" alt="" class="wp-image-448111" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930407278-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930407278-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930407278-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930407278-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930407278-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930407278-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Faisal bin Fadhil Alibrahim, Saudi Arabia&#8217;s economy and planning minister, during a Bloomberg Television interview on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 16, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



Other news out of Davos is the welcome announcement by the Minister of Economy and planning of Saudi Arabia,&nbsp; Faisal Alibrahim, that his country’s economy is forecast to grow by 4% this year – on the back of sustained increases in non-oil economic activities. &nbsp;Speaking with CNBC Africa’s team at the WEF, he said that Saudi Arabia is leveraging a project called Vision 2030 – an incentive to create more growth opportunities, while highlighting a strategy to enhance relations with African countries.&nbsp;



<a href="https://www.cnbcafrica.com/media/6345114460112/alibrahim-saudi-arabias-economy-to-grow-4-in-2024/" target="_blank" rel="noreferrer noopener">https://www.cnbcafrica.com/media/6345114460112/alibrahim-saudi-arabias-economy-to-grow-4-in-2024/</a>



Staying with Africa in Davos. The Zanzibaris are also in Switzerland, scouting for investment. The island on the east coast of Tanzania is a tourist haven for South Africans and Europeans. Speaking to CNBC Africa, Zanzibar’s Minister in the President’s Office, Mudrick Zoragha, said his government have launched many new projects to attract investment.



<a href="https://www.cnbcafrica.com/media/6345124360112/zanzibar-scouting-for-investment-at-davos/" target="_blank" rel="noreferrer noopener">https://www.cnbcafrica.com/media/6345124360112/zanzibar-scouting-for-investment-at-davos/</a>



SOUTH AFRICA and her energy and logistics crises came under the spotlight again today, when Old Mutual CEO, Iain Williamson, spoke to journalists in Davos. In an interview with CNBC Africa he stressed the urgency of the electricity dilemma. He said it was the demise of Eskom that gave way to the ports and rail disasters, hence Eskom requires preference.



<a href="https://www.cnbcafrica.com/media/6345168531112/old-mutual-addresses-sas-energy-logistics-crisis-/">https://www.cnbcafrica.com/media/6345168531112/old-mutual-addresses-sas-energy-logistics-crisis-/</a>



<h2 class="wp-block-heading" id="h-kagame-amp-bliken-discuss-drc-security-situation">Kagame &amp; Bliken discuss DRC security situation</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1931536493-820x547.jpg" alt="" class="wp-image-448112" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1931536493-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1931536493-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1931536493-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1931536493-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1931536493-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1931536493-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Paul Kagame, Rwanda&#8217;s president, during a panel session on day two of the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 17, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



On the geopolitical front, Rwandan President Paul Kagame and US Secretary of State Antony Blinken met on the sidelines of the World Economic Forum in Davos, Switzerland, to discuss the security situation in the eastern part of the Democratic Republic of the Congo (DRC).



This was Kagame&#8217;s second meeting with a top US diplomat in the space of three months to discuss the DRC; in November last year, Kagame hosted Avril Haines, the US director of national intelligence, in Kigali.



In a statement, US Department of State spokesperson Mathew Miller said Blinken and Kagame &#8220;discussed how to advance efforts to ease tensions in the eastern Democratic Republic of the Congo. The secretary reiterated the need for all actors to take concrete steps to resolve the situation&#8221;.



Addressing the press ahead of their meeting, Blinken added the US was committed to African-led efforts to find a lasting solution.



He said: “We are committed to doing everything we can to support the efforts that are being made &#8211; including by Angola and Kenya &#8211; to support a peaceful resolution of differences and avoid conflict in the eastern DRC.”



&#8220;We very much appreciate the work that president Kagame has done, especially over the last couple of months, and your peaceful way forward,&#8221; Blinken said.



There are two processes underway to resolve the crisis in the eastern DRC. The Nairobi process is an East African Community-led roadmap for resolving inter-DRC violence involving more than 100 paramilitary factions known as &#8220;Mai Mai&#8221; as well as the larger M23 rebel group. There is also the Luanda Process, which works on ending hostilities between the DRC and Rwanda, which it accuses of sponsoring M23.



During the run-up to his 20 December re-election, DRC President Felix Tshisekedi said if granted a second term, he could go to war with Kagame over the M23 issue.



With his inauguration set for Saturday, the war drums are beating.

World Economic Forum in Davos

Hottest WEF Davos 2024 debates around African Debt

DAVOS 2024: Focus On South Africa’s preparation ahead of WEF 2024

DAVOS 2024: Focus On collaboration for an improved South Africa

DAVOS 2024: Day Four Highlights

DAVOS24 NEWSLETTER 3



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930975253-820x547.jpg" alt="" class="wp-image-447837" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930975253-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930975253-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930975253-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930975253-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930975253-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1930975253-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Economic Forum logo on a window in the Congress Center on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 16, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



Wednesday 17 January dawned over the World Economic Forum in Davos in Switzerland, with the news of even more tension in the Middle East. As speaker after keynote speaker yesterday spoke of ideological conflict and ensuing economic crisis, the only positive news seemed to be coming out of Africa.



Delegates at a panel discussion heard the exciting development that the manner in which business is done in Africa, will change dramatically this year. More than half of African nations will use the rules of the African Continental Free Trade Area (AfCFTA) this year as the region moves closer to fully integrating into a single market.



Of the 47 countries that have ratified the AfCFTA agreement, 31 will join the trade initiative, up from seven that joined in 2023. AfCFTA Secretary-General Wamkele Mene said at a presentation at Davos. The new system was put on trial last year and tested on processed agricultural products, manufactured goods and services.



<h2 class="wp-block-heading" id="h-afcfta-s-pan-african-payments-system-pilot-project">AfCFTA’s pan-African payments system pilot project</h2>



For example, Uganda exported some of its excess 2 billion liters of milk to Algeria, while a ceramic-tile manufacturer in Ghana shipped the product to Cameroon. “AfCFTA enabled a 20% reduction in duty,” Mene said. “That is 20% competitiveness as of the start of trade.”



The expanded pilot project will include a pan-African payments and settlement system using local currencies to overcome the continent’s foreign-exchange shortages and convertibility limitations.



According to Mene, quoting the African Development Bank, the African trade region’s digital economy will rocket to $712 billion by 2050, from about $115 billion at present. AfCFTA has a potential market of 1.3 billion people with a combined gross domestic product of $3.4 trillion, and could be the world’s biggest free-trade zone by area when the treaty becomes fully operational by 2030.



The World Bank forecasts that the accord will increase trade within the region by 80% to $532 billion by 2035, partially boosted by improved technology-driven efficiency.



DAY 3 Highlights link: <a href="https://www.cnbcafrica.com/2024/davos-2024-day-three-highlights/" target="_blank" rel="noreferrer noopener">https://www.cnbcafrica.com/2024/davos-2024-day-three-highlights/</a>



<h2 class="wp-block-heading" id="h-south-africa-finmin-godongwana-on-challenges-and-investment-potential">South Africa FinMin Godongwana on challenges and investment potential</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1928545824-820x547.jpg" alt="" class="wp-image-447839" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1928545824-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1928545824-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1928545824-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1928545824-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1928545824-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1928545824-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Enoch Godongwana, South Africa&#8217;s finance minister, during a panel session at Bloomberg House on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 16, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



More good news for Africa out of Davos – and perhaps something of interest to potential investors in the SADC region – is that South Africa has a plan to improve energy provision that will end the need for any power cuts within the next 12-18 months. This is according to Finance Minister Enoch Godongwana. &#8220;Eventually in the next 12-18 months we will be able to say load-shedding is a thing of the past. That is the target,&#8221; he, told Reuters.



In an interview with CNBC Africa’s Editor-in-Chief, Godfrey Mutizwa, Godongwana said that he found a more positive narrative about investing in South Africa at Davos, than what is generally found in newspapers. They also spoke about the country’s investment attractiveness and South Africa’s upcoming Budget Speech in February.



GODONGWANA LINK&nbsp; <a href="https://www.cnbcafrica.com/media/6344993458112/finance-minister-enoch-godongwana-on-sas-2024-budget-outlook/" target="_blank" rel="noreferrer noopener">https://www.cnbcafrica.com/media/6344993458112/finance-minister-enoch-godongwana-on-sas-2024-budget-outlook/</a>



<h2 class="wp-block-heading" id="h-south-africa-banking-system-vulnerabilities-amp-material-risk">South Africa: Banking system vulnerabilities &amp; material risk</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1929487707-820x547.jpg" alt="" class="wp-image-447840" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1929487707-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1929487707-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1929487707-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1929487707-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1929487707-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1929487707-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Lesetja Kganyago, governor of South Africa&#8217;s reserve bank, during a Bloomberg Television interview on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 16, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



Three other South Africans featured prominently at Davos on Wednesday. The Governor of the South African Reserve Bank, Lesetja Kganyago, elaborated on growth plans, inflation, economic outlook, and banking system vulnerabilities in a wide-ranging interview with CNBC Africa’s Fifi Peters. &nbsp;



KGANYAGO LINK <a href="https://www.cnbcafrica.com/media/6345042613112/kganyago-on-global-economy-monetary-policy-inflation-outlook/" target="_blank" rel="noreferrer noopener">https://www.cnbcafrica.com/media/6345042613112/kganyago-on-global-economy-monetary-policy-inflation-outlook/</a>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1243962302-820x547.jpg" alt="" class="wp-image-447841" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1243962302-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1243962302-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1243962302-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1243962302-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1243962302-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1243962302-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sim Tshabalala, group chief executive at Standard Bank, speaks during the Institute of International Finance (IIF) annual membership meeting in Washington, DC, US, on Friday, Oct. 14, 2022. This year&#8217;s conference theme is &#8220;The Search for Stability in an Era of Uncertainty, Realignment and Transformation.&#8221; Photographer: Ting Shen/Bloomberg via Getty Images</figcaption></figure>



Rebuilding Trust, the theme of WEF Davos 2024, is fundamental to the banking and business sectors, according to Standard Bank CEO, Sim Tshabalala. He spoke to CNBC Africa’s Fifi Peters and Godfrey Mutizwa about the big issues being discussed at the Forum, including financial inclusion, artificial intelligence and climate. &nbsp;



THSABALALA LINK <a href="https://www.cnbcafrica.com/media/6345040785112/tshabalala-african-continent-to-be-fastest-growing-by-2030/" target="_blank" rel="noreferrer noopener">https://www.cnbcafrica.com/media/6345040785112/tshabalala-african-continent-to-be-fastest-growing-by-2030/</a>



<h2 class="wp-block-heading" id="h-sa-as-investment-facilitator-in-africa">SA as investment facilitator in Africa</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-465757264-820x546.jpg" alt="" class="wp-image-447842" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-465757264-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-465757264-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-465757264-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-465757264-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-465757264-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-465757264-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">CAPE TOWN, SOUTH AFRICA FEBRUARY 12 (SOUTH AFRICA OUT): Ebrahim Patel, Minister of Economic Development, in his office on February 12, 2012 in Cape Town, South Africa. (Photo by Leon Sadiki/CityPress/Gallo Images/Getty Images)</figcaption></figure>



Commanding interest in Davos was South Africa’s Trade and Industry Minister, Ibrahim Patel, who has drawn high acclaim from many quarters in the business sector in Africa and abroad. He told CNBC Africa’s Godfrey Mutizwa that in an increasingly fractured world, businesses are looking for stable investment opportunities.



PATEL LINK <a href="https://www.cnbcafrica.com/media/6345050965112/patel-sa-a-key-player-in-facilitating-africa-investments-/" target="_blank" rel="noreferrer noopener">https://www.cnbcafrica.com/media/6345050965112/patel-sa-a-key-player-in-facilitating-africa-investments-/</a>



With Africa presenting a positive outlook for advancing global trade ties, for the continent itself the AfCFTA looks set to be a major game changer. Patel is of the opinion that South Africa can be a key player in facilitating investments on the continent through regional value chains.

Opening Day Of The World Economic Forum (WEF) 2024

Africa brings good news stories to WEF Davos 2024

DAVOS 2024: An African Economy of Scale

DAVOS 2024: Day Three Highlights

DAVOS 2024: Frictionless Services

UBA: Investors focus on 2038, 2053 papers

DAVOS 2024: On the Frontlines for Nature

Access: Investors cherry-pick high yielding instruments

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1926670027-820x547.jpg" alt="" class="wp-image-446789" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1926670027-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1926670027-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1926670027-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1926670027-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1926670027-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1926670027-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Economic Forum logo inside the Congress Center ahead of the World Economic Forum (WEF) in Davos, Switzerland, on Monday, Jan. 15, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



Most observers in Davos24 agree that one of the most interesting topics of discussion will be ‘misinformation’ and ‘disinformation’ on social media. The WEF placed this on the agenda to try and get to grips with the worldwide phenomenon of rumour mongering on Facebook and &nbsp;X, as it manifested itself during the US presidential elections of 2016 and since, as well as the daily appearance of fabrications on YouTube. One wonders if Elon Musk and Mark Zuckerberg will be talking about self-imposed censorship and editorial control and whether the flood of nonsense videos can be stopped? Incidentally, Musk wasn’t even invited to Davos this year.



So, in a year in which mass emotions will be stirred and shaken in major elections in the US, India and South Africa, the influence of the social media will be severely tested. The matter of responsible use of social media platforms and just whose baby that is going to be, will undoubtedly be a majore talking point at Davos24. Especially the free-speech fanatics in the developed countries are not going to be happy with any infringements on their right to say what they want. Perhaps they should be reminded that in some countries the social media have been banned, exactly because of irresponsible use.



God forbid, we hear them say. Well, let’s see whether the human race can control itself.



In tomorrow’s newsletter, there will be some astounding news about African demographics revealed at Davos24 today.

Preparations Ahead Of The World Economic Forum (WEF) 2024

Misinformation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927156200-820x547.jpg" alt="" class="wp-image-446785" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927156200-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927156200-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927156200-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927156200-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927156200-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927156200-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Swiss national flag outside the Congress Center ahead of the World Economic Forum (WEF) in Davos Switzerland, on Monday, Jan. 15, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



Another major issue to be discussed this week is the state of world debt. Global government debt is projected to hit $97.1 trillion this year, a 40% increase since 2019. One has to assume that many of the central bankers present in Davos are there to borrow to prevent their economies going into default. Combined world debt (private, public and otherwise) is at a staggering $300 trillion and will not be going away in the next 50 years. To find opportunities for capital expenditure, economic growth and the fostering of an investment climate in this morass is not going to be easy. The mere presence of a world debt almost the size of possible maximum world economic output is cause for paranoia and fear. But in the words of Jeff Bezos of Amazon, there is nothing like paranoia and fear to drive innovation.

World Debt

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927554643-820x547.jpg" alt="" class="wp-image-446781" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927554643-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927554643-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927554643-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927554643-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927554643-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927554643-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">15 January 2024, Switzerland, Davos: A man stands in front of a window with the World Economic Forum logo. The annual meeting of the World Economic Forum is regarded as one of the most important meeting places for top politicians, top managers and scientists. The program starts on Tuesday. Photo: Hannes P. Albert/dpa (Photo by Hannes P Albert/picture alliance via Getty Images)</figcaption></figure>



But there are many pressing issues on the WEF agenda that have nothing to do with religious ideology and in 2024 even they seem larger than life. Everybody at Davos are holding their collective breath over what will happen pertaining to climate change and green energy. The move away from fossil fuel and coal proves more difficult than a lot or people will be willing to admit. But the economists at Davos have been known to pull rabbits from hats. Will they do so again?

Start of the annual meeting of the World Economic Forum

Climate Change

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927540808-820x547.jpg" alt="" class="wp-image-446777" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927540808-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927540808-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927540808-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927540808-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927540808-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/GettyImages-1927540808-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Economic Forum logo inside the Congress Center ahead of the World Economic Forum (WEF) in Davos Switzerland, on Monday, Jan. 15, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



The events of the weekend in the Red Sea, when the US and UK navies launched strikes on the Houthis in Yemen, had cast a sense of gloom over the start of Davos 2024. By this morning, delegates were feverishly watching their iphones for more bad news, instead of confidently following economic indicators. If they did look at market trends, it was to see by how much the oil price was rising, whose supply chains had been interrupted (other than Tesla Germany) and whether the US federal reserve would be making noises about interest rate hikes in the light of the near impossible impasse in the Middle East.



A significant difference between Davos 2024 and the meetings of the last two years is the nature of the crisis or crises in the world. When Covid struck in 2020 and raged through 2021, the pandemic succeeded in unifying the human race and for the rich and powerful at Davos, there was something they could do about it. They could throw money at it. And it worked.



However optimistic the economic leaders gathered in Davos would want to be this week, they are painfully aware of the harsh reality that money cannot be thrown at today’s dilemmas. As always the annual general meeting of the World Economic Forum in Davos is not so much about what happens on the public stages and under the limelight, rather what is spoken about by delegates in private meetings and comments dropped in casual conversations. When the meeting began this morning, it was against the backdrop of a world divided and polarized along centuries’ old secular lines.



Who would have thought, a mere decade ago, that calamities like the cold war and the advent of the Covid pandemic would look like kindergarten stuff in comparison with the present state of the world.

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