<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Climate change could cut life expectancy by half a year, according to&nbsp;<a href="https://journals.plos.org/climate/article?id=10.1371/journal.pclm.0000339" target="_blank" rel="noreferrer noopener">research</a>&nbsp;published Thursday, illustrating another ominous consequence of human-driven global heating after scientists confirmed 2023 as the&nbsp;<a href="https://www.forbes.com/sites/roberthart/2024/01/09/2023-was-officially-the-worlds-hottest-year-on-record/?sh=5b4ccc086655">hottest year on record</a>.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Changes in temperature and rainfall caused by climate change could shave six months off the average human lifespan, researcher Amit Roy said in a paper published in the journal PLOS Climate.



Roy, a researcher at The New School for Social Research and Bangladesh’s Shahjalal University of Science and Technology, came to the conclusion after analyzing life expectancy data from 191 countries between 1940 and 2020.



An annual temperature increase of 1 degree Celsius on its own would cut average human life expectancy by around five and a half months once other factors affecting lifespan like GDP are accounted for, Roy said.



Changes in rainfall—which is&nbsp;<a href="https://climate.ec.europa.eu/news-your-voice/news/how-climate-change-disrupting-rainfall-patterns-and-putting-our-health-risk-2023-08-03_en" target="_blank" rel="noreferrer noopener">disrupted</a>&nbsp;in a multitude of health-affecting ways by climate change—also have an impact on life expectancy, the data showed



Considered in isolation without temperature changes, an increase or decrease in rainfall could be both beneficial or detrimental depending on circumstances—for example, in an area already experiencing heavy rainfall or an area experiencing drought.



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However, when considered alongside temperature changes, Roy—who developed a new composite index to consider the combined impact of the two features on life expectancy—found a more negative outcome, with a 10-point change on the index combining the two features leading to a six month drop on the average life expectancy.



Women and those in developing nations are disproportionately affected by the life expectancy hit, Roy said.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



Scientists have&nbsp;<a href="https://www.forbes.com/sites/roberthart/2024/01/09/2023-was-officially-the-worlds-hottest-year-on-record/?sh=5b4ccc086655">confirmed</a>&nbsp;2023 as the hottest year on record and experts warn 2024 could be hotter still. Experts overwhelmingly believe that human activity is driving significant and rapid climate change the likes of which our planet has never experienced and warn that even with drastic action to mitigate damage, a great deal of hardship from this is going to be in store for coming decades. While variations in climate are a normal and expected part of the planetary ecosystem, emissions of greenhouse gasses like carbon dioxide and methane have disrupted natural cycles and help lock heat inside the planetary system. These temperature increases have disrupted climatic patterns and features like rainfall, which can both decrease and cause problems in the form of phenomena like drought and increase and cause issues like flooding in wetter areas. Without drastic and swift action to cut emissions, scientists&nbsp;<a href="https://www.forbes.com/sites/roberthart/2023/10/25/here-are-6-tipping-points-the-un-warns-could-soon-spell-disaster-for-humanity-from-space-junk-to-disappearing-water/?sh=710d0f72797a">warn</a>&nbsp;we will cross planetary tipping points from which there may not be a return and extreme weather like storms, droughts and freezes are expected to increase in both frequency and severity.



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



While abundant research has documented a slew of negative health effects linked to climate change—including&nbsp;<a href="https://www.forbes.com/sites/roberthart/2023/11/21/extreme-heat-killed-over-70000-in-europe-last-year-study-finds-this-year-is-on-track-to-be-even-worse/?sh=62fbcdd57929">potentially lethal heat</a>,&nbsp;<a href="https://www.forbes.com/sites/roberthart/2022/04/28/climate-change-could-spark-future-pandemics-study-finds/?sh=a5d1e2b57873">the risk of new deadly pandemics</a>, an uptick in extreme weather events and natural disasters and risks for those with&nbsp;<a href="https://www.theguardian.com/environment/2023/sep/04/climate-crisis-poses-greatest-risk-to-people-with-respiratory-illnesses-experts-warn" target="_blank" rel="noreferrer noopener">breathing</a>&nbsp;and&nbsp;<a href="https://www.imperial.ac.uk/grantham/publications/all-publications/the-impact-of-climate-change-on-mental-health-and-emotional-wellbeing-current-evidence-and-implications-for-policy-and-practice.php" target="_blank" rel="noreferrer noopener">mental health</a>&nbsp;problems—Roy said none had yet established a direct link between the phenomenon and life expectancy.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



“The global threat posed by climate change to the well-being of billions underscores the urgent need to address it as a public health crisis,” Roy said, adding: “mitigation efforts to reduce greenhouse gas emissions and proactive initiatives are essential to safeguard life expectancy and protect the health of populations worldwide.&#8221;



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/roberthart/2024/01/09/2023-was-officially-the-worlds-hottest-year-on-record/?sh=5b4ccc086655">2023 Was Officially The World’s Hottest Year On Record</a> (Forbes)

Reports Indicate 2016 Was Hottest Year On Record

Climate Change Could Cut Months From Life Expectancy, Research Warns

The South African comedian’s Emmy for Outstanding Talk Series garnered praise from President Cyril Ramaphosa. 



Renowned South African comedian Trevor Noah has etched his name in history with a prestigious Emmy Award for Outstanding Talk Series for The Daily Show with Trevor Noah this week. This significant win at the 75th Annual Emmy Awards highlights Noah&#8217;s influential presence in the global entertainment sphere and underscores the impact of South African talent on the international stage.



In a category brimming with talent, Noah&#8217;s victory over eminent late-night hosts like Jimmy Kimmel, Seth Meyers, and Stephen Colbert underlines his distinct voice in the variety talk series landscape. This Emmy is his first in the Outstanding Talk Series category, adding to his 2017 win for Outstanding Short Form Variety Series and illustrating his consistent prowess in the industry.



President Cyril Ramaphosa extended warm congratulations to Noah in a statement on X, formerly Twitter, recognizing his role as a global ambassador of South African talent. &#8220;Winning outstanding talk series in a very competitive scene is no laughing matter,&#8221; Ramaphosa stated, celebrating Noah&#8217;s contribution to showcasing South African excellence on the global front.



In his acceptance speech, Noah remarked, &#8220;I told you! I told you we would beat John Oliver if he wasn&#8217;t in our category. We did it!&#8221; He also expressed deep gratitude toward his team and offered special thanks to Jon Stewart, acknowledging Stewart&#8217;s role in his journey. &#8220;Thank you for calling me up and asking me to come join you on this crazy journey,&#8221; Noah said.



Reflecting on his most memorable episode, Noah mentioned “Trump and the African Dictator,&#8221; highlighting its significance in bringing African perspectives to American television. This episode, according to Noah, exemplified the groundbreaking nature of his work on the show.



Noah&#8217;s accolades extend beyond the Emmys. He was also nominated for a Golden Globe for Best Stand-Up Comedian in Television and is nominated for a Grammy for Best Comedy Album. Additionally, he is set to host the Grammy Awards for the fourth consecutive year, showcasing his versatility and appeal as a host and entertainer.



Despite his departure from The Daily Show in September 2022, Noah&#8217;s impact continues. The search for his permanent replacement on the show is ongoing.

75th Primetime Emmy Awards – Press Room

Emmy Wins And More Global Nominations For Trevor Noah A Celebration Of South African Talent

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Annual carbon emissions from bottom trawling—a popular fishing method used to capture seafood at the bottom of the ocean—is equivalent to around 40% of annual transportation emissions in the U.S., a new study published Thursday found, reaffirming previous research on the harms of bottom trawling.



<h2 class="wp-block-heading">KEY FACTS</h2>



<a href="https://www.msc.org/what-we-are-doing/our-approach/fishing-methods-and-gear-types/demersal-or-bottom-trawls" target="_blank" rel="noreferrer noopener">Bottom trawling</a>&nbsp;is a fishing method used to catch large quantities of fish at once, which involves dragging nets towed by boats along the ocean floor to catch fish and other marine animals.



When the nets scrape the ocean floor, they disturb and cut up the coal housed in the marine sediment, releasing carbon dioxide into the water that eventually finds its way into the atmosphere.



Between 55% and 60% of the carbon dioxide made underwater by bottom trawling will be released into the atmosphere within the following nine years, the Thursday study published in Frontiers in Marine Science found.



Around 370 million metric tons of carbon emissions were released into the atmosphere every year between 1996 and 2020 due to bottom trawling, equivalent to around 40% of all U.S. transportation emissions in 2022 (1,023 million metric tons)&nbsp;<a href="https://www.eia.gov/tools/faqs/faq.php?id=307&amp;t=10" target="_blank" rel="noreferrer noopener">according</a>&nbsp;to the U.S. Energy Information Administration.



Annual bottom trawling emissions are more than double the annual fuel emissions from the global fishing fleet(<a href="https://www.nature.com/articles/s41558-018-0117-x" target="_blank" rel="noreferrer noopener">179 million</a>&nbsp;metric tons a year), almost double the annual emissions produced by volcanos (<a href="https://www.usgs.gov/observatories/hvo/news/volcano-watch-which-produces-more-co2-volcanic-or-human-activity" target="_blank" rel="noreferrer noopener">200 million</a>&nbsp;metric tons) and 55% of all U.S. yearly agriculture emissions (<a href="https://www.ers.usda.gov/topics/natural-resources-environment/climate-change/" target="_blank" rel="noreferrer noopener">671.5 million</a>&nbsp;metric tons).



The researchers identified bottom trawling carbon dioxide emissions as the highest in the East China Sea, the North Sea, the Baltic Sea and the Greenland Sea.



A previous&nbsp;<a href="https://www.nature.com/articles/s41586-021-03371-z" target="_blank" rel="noreferrer noopener">study</a>&nbsp;published in 2021 found bottom trawling releases as much carbon dioxide as the entire aviation industry, and there’s less carbon in trawled areas of the ocean than untrawled areas.



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The practice’s controversy has led to the National Oceanic and Atmospheric Administration banning it from some parts of the seafloor off the U.S.&nbsp;<a href="https://montereybay.noaa.gov/resourcepro/ebmi/2020nmfs_rule.html" target="_blank" rel="noreferrer noopener">West Coast</a>,&nbsp;<a href="https://www.mpi.govt.nz/fishing-aquaculture/sustainable-fisheries/strengthening-fisheries-management/bottom-trawling/" target="_blank" rel="noreferrer noopener">New Zealand</a>&nbsp;restricting it from around 20% of its territorial sea and the&nbsp;<a href="https://www.reuters.com/article/idUSL8N3706KS/" target="_blank" rel="noreferrer noopener">U.K.</a>&nbsp;banning it from at least one body of water.



<h2 class="wp-block-heading">CRUCIAL QUOTE</h2>



“The good news is that reducing bottom trawling carbon emissions will deliver immediate benefits,” Enric Sala, study author and executive director of ocean preservation company Pristine Seas, said in a statement. “The bad news is, delaying action ensures that emissions from trawling will continue seeping into the atmosphere a decade from now.”



<h2 class="wp-block-heading">CONTRA</h2>



Some researchers don’t believe bottom trawling emits as much carbon as previously reported. Researchers who wrote a&nbsp;<a href="https://www.nature.com/articles/s41586-023-06014-7" target="_blank" rel="noreferrer noopener">response paper</a>&nbsp;to the 2021 study believe the study overestimated the carbon emissions of bottom trawling by between 100 and 1,000 times due to the researchers’ flawed assumption of the carbon cycle. Around 70% of buried carbon can be broken down by bottom trawling and release carbon dioxide, according to the 2021 study. However, buried carbon isn’t reactive to oxygen, and therefore most of it cannot be broken down, the response paper says. “It doesn’t mean [the 2021 study] can’t be important, but it does mean that the model makes no sense,” lead author of the response paper and researcher at Bangor University in Wales&nbsp;<a href="https://www.seafoodsource.com/news/premium/environment-sustainability/response-paper-aims-to-debunk-the-theory-that-bottom-trawling-releases-as-much-carbon-as-air-travel" target="_blank" rel="noreferrer noopener">told</a>&nbsp;SeafoodSource News. A separate&nbsp;<a href="https://onlinelibrary.wiley.com/doi/full/10.1111/gcb.16105" target="_blank" rel="noreferrer noopener">paper</a>&nbsp;released in 2022 challenged claims that there was less carbon in trawled areas compared to untrawled areas. It reviewed 49 papers and found 61% saw no difference, 29% reported less carbon in untrawled areas and 10% reported higher carbon levels in trawled areas of the ocean.



<h2 class="wp-block-heading">BIG NUMBER</h2>



19 million tons. That’s how much seafood is caught by bottom trawling annually, making bottom trawling responsible for over a quarter of all wild-caught seafood captured each year, according to a&nbsp;<a href="https://www.pnas.org/doi/10.1073/pnas.1802379115" target="_blank" rel="noreferrer noopener">study</a>&nbsp;published in the Proceedings of the National Academy of Sciences of the United States of America.



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



Besides releasing carbon dioxide into the atmosphere, bottom trawling has other dangerous effects. Between 40% to 45% of carbon released by bottom trawling remains in the ocean, which increases ocean acidification and leads to harmful damage on aquatic plants and animals, according to Thursday’s paper. The practice can also lead to a change in nutrient levels, the destruction of habitats and plant roots and reduce photosynthesis in ocean-dwelling organisms,&nbsp;<a href="https://www.usgs.gov/programs/cmhrp/news/what-drag-global-impact-bottom-trawling" target="_blank" rel="noreferrer noopener">according</a>&nbsp;to the U.S. Geographical Survey, an arm of the Department of the Interior. It’s also believed bottom trawling is wasteful:&nbsp;<a href="https://marine-conservation.org/archive/mcbi/DSCC_RedHerrings.pdf" target="_blank" rel="noreferrer noopener">50%</a>&nbsp;of all unwanted and discarded fish by the fishing industry is caught through bottom trawling. This is equivalent to around 437 million tons of discarded fish, or a loss of $560 billion, the University of California, Santa Barbara&nbsp;<a href="https://emlab.ucsb.edu/blog/overlooked-impact-bottom-trawling" target="_blank" rel="noreferrer noopener">reports</a>.



<h2 class="wp-block-heading">FURTHER READING</h2>



<a href="https://www.nytimes.com/2021/03/17/climate/climate-change-oceans.html" target="_blank" rel="noreferrer noopener">Looking for Climate Solutions? Protect More Ocean, Researchers Find.</a>&nbsp;(New York Times)

Crew members of purse seiner hauling in net while fishing for salmon

Here’s How Much Carbon Emissions Are Caused By A Popular—And Controversial—Fishing Method, According To Study

The New York-listedBlackRock is set to buy the entirety of Bayo Ogunlesi’s GIP&#8217;s business and assets.



The world’s largest asset manager BlackRock has agreed to acquire infrastructure&nbsp;investor Global Infrastructure Partners (GIP) for a total consideration of $3 billion in cash and approximately 12 million shares of BlackRock common stock.



In a joint statement, the organizations note that the infrastructure sector, valued at $1 trillion today, is poised for rapid growth, driven by global demands for enhanced digital infrastructure, logistical hubs, and a shift toward decarbonization. They added that the acquisition aligns with the trend of public-private partnerships becoming vital for funding essential infrastructure projects amid large government deficits.



Laurence D. Fink, BlackRock Chairman and CEO, expressed excitement about the potential of this merger, stating, “Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy. We believe the expansion of both physical and digital infrastructure will continue to accelerate, as governments prioritize self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors. Policymakers are only just beginning to implement once-in-a-generation financial incentives for new infrastructure technologies and projects.”



The combined entity, with over $150 billion in assets under management, aims to deliver market-leading infrastructure expertise globally.



GIP, managing over $100 billion in client assets since its founding in 2006, focuses on energy, transport, water, waste, and digital sectors. The acquisition brings together BlackRock&#8217;s extensive corporate relationships and GIP&#8217;s performance in infrastructure investing.



&#8220;We founded BlackRock 35 years ago based on a unique understanding of investment risk and the factors and forces driving investment returns. GIP’s deep understanding of the factors and forces driving operational efficiency for long-term value creation have made them a global leader in infrastructure investing. Bringing these two firms together will create the infrastructure platform to deliver best-in-class investment opportunities for clients globally, and we couldn’t be more excited about the opportunities ahead of us,” Fink said in the statement.



Bayo Ogunlesi, GIP’s Founding Partner, Chairman, and CEO, emphasized the collaboration&#8217;s significance in the same statement: “I’m excited about the power of this combination and the prospect of working with Larry and his talented team&#8230;



&#8220;We are convinced that together we can create the world’s premier infrastructure investment firm.&#8221;



The GIP management team, led by Ogunlesi, will spearhead the combined infrastructure platform, creating a powerhouse for diversified, large-scale sourcing. Subject to completion of customary procedures, Ogunlesi is set to join BlackRock&#8217;s Board of Directors post-closing.



The deal, expected to close in the third quarter of this year, is subject to regulatory approvals and other closing conditions.

2018 New York Times Dealbook

BlackRock And Infrastructure Firm GIP Forge Alliance In $3 Billion Infrastructure Powerplay With 12 Million Common Stock Shares

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



The Emmy Awards hit a record low for viewership Monday night, according to&nbsp;<a href="https://variety.com/2024/tv/news/emmys-ratings-record-low-1235873962/" target="_blank" rel="noreferrer noopener">multiple</a>&nbsp;<a href="https://www.nytimes.com/2024/01/16/business/media/emmy-awards-ratings.html" target="_blank" rel="noreferrer noopener">reports</a>, attracting 4.3 million total viewers—a 27% drop from the 2022 Emmys, which brought in 5.9 million viewers.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Monday’s 75th Emmy Awards aired on Fox and scored a 0.85 rating among adults 18-49, according to&nbsp;<a href="https://variety.com/2024/tv/news/emmys-ratings-record-low-1235873962/" target="_blank" rel="noreferrer noopener">Variety</a>, which cited preliminary data from Nielsen, representing the lowest viewership total on record.



The awards show ran at the same time as an NFL playoff game between the Philadelphia Eagles and Tampa Bay Buccaneers, as well as the Iowa caucuses.



The show created&nbsp;<a href="https://www.vogue.com/article/best-social-media-reactions-to-the-2024-emmy-awards" target="_blank" rel="noreferrer noopener">buzz on social media</a>&nbsp;and was a highlight for Fox despite the poor ratings, becoming the network’s most-watched Monday unscripted telecast in more than eight-and-a-half years.



This year’s installment of the Emmys was delayed by four months due to the WGA and SAG-AFTRA strikes, bucking its yearly tradition of airing in August or September.



Cast and producers behind “Succession,” “The Bear” and “Beef” dominated several categories, with “The Bear” bringing in the most Emmy wins of any show with&nbsp;<a href="https://variety.com/2024/awards/news/emmy-2023-2024-hbo-wins-by-show-platform-1235872548/" target="_blank" rel="noreferrer noopener">10 total</a>.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



The drop in Emmy viewership this year may also be due to awards show fatigue, the&nbsp;<a href="https://www.latimes.com/entertainment-arts/business/story/2024-01-16/fox-telecast-75th-emmy-awards-ratings-low" target="_blank" rel="noreferrer noopener">Los Angeles Times</a>&nbsp;reported, noting the quick turnaround from the Golden Globe Awards’ Jan. 7 broadcast and the Critics Choice Awards’ Sunday broadcast, which meant many of the same award winners from the Emmys had already made repeated appearances on stage days before. The Emmys broadcast on Fox meant cable-cutters had to flock to either YouTube TV or Hulu + Live TV. Both platforms have monthly subscription costs totalling more than $70. Most other prestige award shows have recorded favorable rebounds in recent years including the Oscars, Grammys and last week’s Golden Globes, which had a&nbsp;<a href="https://www.latimes.com/entertainment-arts/business/story/2024-01-08/golden-globe-awards-9-4-million-viewers-cbs-robert-downey-jo-koy#:~:text=A%20new%20owner%20and%20TV,when%20it%20aired%20on%20NBC." target="_blank" rel="noreferrer noopener">50% jump</a>&nbsp;in viewership from last year and raked in 9.4 million viewers.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://variety.com/2024/awards/news/emmy-2023-2024-hbo-wins-by-show-platform-1235872548/" target="_blank" rel="noreferrer noopener">‘The Bear,’ ‘Beef’ Lead 2023 Emmy Wins, HBO Nabs Most Wins by Network</a> (Variety)

75th Emmys Bring In Just 4.3 Million Viewers—An All-Time Low

One of the primary factors contributing to the surge in debt within the continent&#8217;s startup ecosystem is believed to be the decline in equity funding. Experts weigh in.



<blockquote class="wp-block-quote has-text-align-center is-layout-flow wp-block-quote-is-layout-flow">
&#8220;The preference for debt over equity in these sectors can indicate that startups are looking to avoid diluting ownership and are confident in generating revenue to service debt.”
</blockquote>



According to Briter Bridges&#8217; latest report, titled Debt Financing in Africa’s Innovation Ecosystem, there has been a surge in debt financing, especially in the cleantech and fintech sectors, indicating a shift in funding trends. In the past decade, digital, technology-enabled, and green companies across the continent have secured over $2 billion in disclosed debt funding from 140 funders through more than 200 deals, making up approximately 10% of the total funding during this period.



As equity funding declines, debt financing has rapidly grown, accounting for more than a quarter of total funding to innovative companies in Africa in 2023. Cleantech, specifically, experiences debt-funding representing 50% of the total raised, indicating a changing financing landscape.



Similar to equity, over three-quarters of debt funding is directed to Nigeria, Kenya, Egypt, and South Africa.



&#8220;Over the last 18 months, there has been a notable decline in total equity funding volumes and deal flow to startups in Africa. Between January and October of 2023, investment raised hit $2.7 billion across 600+ deals, about a third less than the funding raised at the same time in 2022,&#8221; states the report.



The report analyses the uneven distribution of debt funding, with cleantech and fintech securing the majority. Cleantech sees dominance in solar home kits and pay-as-you-go products, while fintech leads in asset financing and buy-now-pay-later products. It also reveals that nearly three-quarters of debt funding flows to asset-heavy businesses in cleantech, mobility, agriculture, and logistics.



<blockquote class="wp-block-quote has-text-align-center is-layout-flow wp-block-quote-is-layout-flow">
“…the outcomes of the COP28 program held in Dubai have played a pivotal role. The agreements reached during this global environmental conference have acted as catalysts, instigating substantial investment inflows into Africa&#8217;s burgeoning innovative ecosystem.”
</blockquote>



A significant finding is the concentration of debt funding in specific mega-deals: &#8220;Just five deals, [including] M-Kopa’s $200m, MNT-Halan’s $140m, Sun King&#8217;s $130m, Wave Mobile’s $92m, and Planet42&#8217;s $75m debt round, accounted for nearly a third of the total funding over the last decade. However, not all debt deals are mega-deals.&#8221;



A noticeable shift is observed, with almost a quarter of debt deals falling within the $1 million to $5 million range, indicating increased access to debt funding at earlier startup development stages.



&#8220;Innovations like convertible notes and revenue-based financing are making this possible, helping to increase the role of debt in Africa’s startup ecosystem and offering entrepreneurs a much-needed alternative to equity,&#8221; explains the report.



Nigerian business analyst Liadi Oluwaseyi Jimoh sees this shift as an indicator of startups&#8217; confidence in revenue generation and their commitment to maintaining ownership.



&#8220;The preference for debt over equity in these sectors can indicate that startups are looking to avoid diluting ownership and are confident in generating revenue to service debt. It also suggests that lenders are gaining confidence in the startups&#8217; long-term viability and creditworthiness,&#8221; Jimoh tells FORBES AFRICA.



He notes that &#8220;Africa, with its burgeoning population and advancing economic development, is experiencing a substantial demand for sustainable energy solutions.&#8221;



According to Jimoh, fintech companies in Africa have reached a level of market readiness, demonstrating sustainable business models that can handle debt financing.



&#8220;The robustness of these models showcases the industry&#8217;s ability to navigate the complexities of debt while maintaining steady growth.&#8221;



Nigerian cleantech expert Michael Osumune also expresses optimism, viewing this trend as a significant boost to the continent&#8217;s innovative landscape.



&#8220;This upward trajectory is notably attributed to several key factors. First and foremost, the outcomes of the COP28 program held in Dubai have played a pivotal role. The agreements reached during this global environmental conference have acted as catalysts, instigating substantial investment inflows into Africa&#8217;s burgeoning innovative ecosystem. These agreements likely underscore a shared commitment towards sustainable practices and technological advancements,&#8221; Osumune shares with FORBES AFRICA.



Focusing on startups addressing energy access, Osumune anticipates substantial funding in this sector. &#8220;This can be attributed to the growing emphasis on clean energy solutions. The continent has witnessed a remarkable shift in the paradigm of clean energy access, with advancements in Electric Vehicle (EV) mobility, solar-powered housing solutions, and eco-friendly cooking technologies, among others. This shift aligns with the global push towards sustainable practices, and investors are keenly capitalizing on the immense potential of fintech solutions addressing energy access gaps.&#8221;



As the new year unfolds, Osumune believes this trend positions African startups on the forefront of addressing environmental challenges while fostering economic development.

Closeup shot of two person trading Nigerian naira and US dollar

Debt Financing In Africa’s Tech Landscape: Cleantech And Fintech Startups Lead The Shift

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Apple will be allowed to sell a redesigned version of some of its smartwatches, after successfully arguing that some models do not contain a contested blood-oxygen detection technology, a court filing revealed Monday, in an effort to overcome a&nbsp;<a href="https://www.forbes.com/sites/jamesfarrell/2023/12/26/apple-watch-import-ban-starts-today-heres-what-to-know-as-newer-watch-sales-stop/?sh=43c62b272e67">recent ban</a>&nbsp;implemented by the U.S. International Trade Commission last month on certain Apple watch models because of an ongoing patent infringement case.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Apple can sell watches, including the Series 9 and Ultra 2, that do not include a pulse oximeter function—a way to measure the oxygen level of blood— California-based company Masimo Corp. said in a court filing Monday after suing Apple for patent infringement.



The decision was made Friday by the enforcement branch of the U.S. Customs and Border Protection but wasn’t known publicly until Monday when Joseph R. Re, an attorney for Masimo, wrote to the U.S. Court of Appeals informing the court that Apple had been told the redesign falls outside the scope of the initial decision.



Re said in the filing the government had no objection to Apple importing Apple Watches if they did not contain the blood-oxygen detection technology, which is at the heart of their patent infringement suit.



Apple and Masimo did not immediately respond to Forbes’ request for comment.



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



If the ITC disagrees with U.S. Customs and Border Protection decision, it could be overruled.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



In October, the ITC ruled Apple infringed on a patent of medical technology manufacturer Masimo, and issued an order banning sales and imports of watches that contained the pulse oximeter function. The Biden Administration had 60 days to decide whether they would allow the decision to take effect. Ahead of that decision, Apple preemptively&nbsp;<a href="https://www.forbes.com/sites/jamesfarrell/2023/12/18/apple-halts-sale-of-watch-series-9-and-ultra-2-over-patent-dispute/?sh=70e7ac157fa2">pulled</a>&nbsp;the Series 9 and Ultra 2 models of its watches from shelves. On Dec. 26, the U.S. Trade Representative&#8217;s office&nbsp;<a href="https://www.ustr.gov/about-us/policy-offices/press-office/press-releases/2023/december/ustr-statement-section-337-review" target="_blank" rel="noreferrer noopener">said</a>&nbsp;they would not reverse the decision and allowed it to take effect and that same day Apple filed an appeal. One day later, the U.S Court of Appeals ruled Apple could sell its Apple Watch Ultra 2 and the Apple Watch Series 9 after Apple argued it would “suffer continuing irreparable harm to its reputation and goodwill” if it was not allowed to sell Apple Watches with the technology.



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<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/jamesfarrell/2023/12/26/apple-watch-import-ban-starts-today-heres-what-to-know-as-newer-watch-sales-stop/?sh=43c62b272e67">Apple Watch Import Ban Starts Today—Here’s What To Know As Newer Watch Sales Stop</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/zacharyfolk/2023/12/27/ban-on-apple-watch-sales-paused-by-appeals-court/?sh=2f5c7d614555">Ban On Apple Watch Sales Paused By Appeals Court</a> (Forbes)

Apple iPhone 15 And Apple Watch Series 9 Launches In Australia

Apple Can Sell Redesigned Watches Despite Import Ban

The Manufacturers Association of Nigeria (MAN) has voiced concerns about the current state of the sector in the country.



&#8220;Manufacturing growth rate nosedived to 0.48% in Q3 2023 as against 2.4% in 2021. Judging from the observed trend, it is obvious that the outlook for the manufacturing sector in 2024 may not be a positive one, at least in the first half of the year. The period will be challenging, with a subtle possibility of recovery from the third quarter,&#8221; Segun Ajayi-Kadir, MAN&#8217;s director general revealed in a statement.



Ajayi-Kadir asserted the need for a comprehensive approach. &#8220;The envisaged recovery is highly dependent on the deployment of policy stimulus supported with a synthesis of domestic growth driven, export-focused, and offensive trade strategies.&#8221;



He outlined key recommendations for the government to revitalize the sector. &#8220;Expend cost-saving from fuel subsidy to deploy a bouquet of production-focused policies, backed with more structural measures.&#8221;



Among the recommendations were overhauling the power sector, incentivizing investment in renewables, and prioritizing patronage of made-in-Nigeria products in government purchases and contracts.



To address challenges related to raw materials, Ajayi-Kadir proposed comprehensive incentives for local sourcing. He stressed the importance of utilizing the 2024 budget for infrastructural development in industrial hubs to reduce operational costs and enhance competitiveness.



In addressing the foreign exchange situation, Ajayi-Kadir recommended measures such as managing the floating exchange rate system, prioritizing forex and credit allocation to manufacturers, and encouraging foreign direct investment in non-oil sectors.



&#8220;The [Central Bank of Nigeria] CBN should intensify its collaboration with the fiscal authority for proper policy alignment,&#8221; Ajayi-Kadir said, emphasizing the need for a sustainable framework for credit interventions in the manufacturing sector. He added a call for long-term, single-digit interest loans to fast-track the sector&#8217;s growth, aiming for the ambitious goal of a $1 trillion economy.



In a keynote address at the 58th Annual Bankers’ Dinner in November, Olayemi Cardoso, CBN&#8217;s governor, revealed the path for this year, emphasizing a commitment to price and exchange rate stability.



Reassuring stakeholders, Cardoso said, “We assure investors and the business community that the economy will experience significant stability in the short-to-medium term as we recalibrate our policy toolkits and implement far-reaching measures.”

Man working in aluminium factory with machinery

Challenging Period Awaits Nigeria’s Manufacturing Sector This Year

Green Modern Split Screen Tutorial YouTube Thumbnail (12)

50 OVER 50: EUROPE, MIDDLE EAST AND AFRICA 2024

The accountants certified that Tingo Group had $462 million in the bank. The SEC says it was just $50. Short sellers are rejoicing.



Hindenburg Research, known for sniffing out corporate scams, took aim in June at an obscure Nigeria-based outfit named Tingo Group. Hindenburg rolled out a report with a title that left little to the imagination:&nbsp;<a href="https://hindenburgresearch.com/tingo/" target="_blank" rel="noreferrer noopener">“Fake Farmers, Phones, and Financials – The Nigerian Empire That Isn’t.”</a>&nbsp;But Hindenburg didn’t just call Tingo a clear-cut scam. The short-seller also threw a spotlight on the auditor who green-lit Tingo’s financials, challenging its competence, and perhaps its willingness, to see the truth.



“The issues in Tingo’s financials are glaring enough that we’d expect they could have been spotted by any semi-conscious finance undergrad with severe vision loss,” Hindenburg wrote. “These issues were apparently not glaring enough for the company’s auditor, however.”



The auditor in question was Deloitte, the behemoth Big Four accounting firm with annual revenue of&nbsp;<a href="https://www.deloitte.com/global/en/about/press-room/global-revenue-announcement.html" target="_blank" rel="noreferrer noopener">$65 billion</a>&nbsp;through a global network that stretches from Amsterdam to Zhengzhou.



In November, after Tingo’s stock had already fallen about 80% wiping out more than $700 million in market value, the Tingo saga took a sharp turn. The Securities and Exchange Commission stepped into the fray,&nbsp;<a href="https://www.sec.gov/files/litigation/suspensions/2023/34-98920.pdf" target="_blank" rel="noreferrer noopener">slamming the brakes</a>&nbsp;on Tingo’s stock trading. In December, the SEC slapped Tingo CEO Dozy Mmobuosi with charges of&nbsp;<a href="https://www.sec.gov/litigation/litreleases/lr-25915" target="_blank" rel="noreferrer noopener">“massive fraud.”</a>&nbsp;Things only got worse this month, when the regulator&nbsp;<a href="https://www.justice.gov/usao-sdny/pr/founder-and-former-ceo-tingo-companies-charged-securities-fraud" target="_blank" rel="noreferrer noopener">tacked criminal securities fraud charges</a>&nbsp;onto the bill of consequences. According to the SEC’s civil complaint, Tingo, whose audited books boasted a $462 million treasure chest socked away in Nigerian banks, actually had only $50.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“The issues in Tingo’s financials are glaring enough that we’d expect they could have been spotted by any semi-conscious finance undergrad with severe vision loss.”Hindenburg Research
</blockquote>



Auditors are supposed to be the financial world’s most trusted sources of information, armed with calculators and sworn to sniff out fiscal misconduct. A flip through history tells a different story: too often auditors, who are paid fees by the clients they are examining, fail to dig below the surface, and essentially rubber stamp seemingly obvious inconsistencies and problems in financial statements. Worse, some would even say they’re part of the problem, either by not being sharp enough or by looking the other way at the outrageous claims of their clients.



“As outsiders, we’d like to think that auditors are looking for fraud, but fraud detection isn’t one of their mandates,” Matthias Breuer, an accounting professor at Columbia University’s Graduate School of Business, told&nbsp;Forbes. “Auditors don’t go into their work with an adversarial mindset. Their mandate isn’t to be a whistleblower, and because of that it’s usually insiders and short-sellers that uncover these issues.”



Need a few examples? Ernst &amp; Young, after nodding approval at Wirecard’s books, could only watch as the German firm imploded over a $2.08 billion vanishing act. Remember Arthur Andersen? Once an auditing giant, it crumbled under the weight of its involvement in Enron’s notorious collapse. And let’s not forget the infamous 1MDB saga, which roped in the trifecta of Ernst &amp; Young, KPMG and Deloitte, as billions earmarked for development in Malaysia were splurged on lavish parties, opulent real estate and a cache of Monets and Van Goghs. That one cost Deloitte&nbsp;<a href="https://www.bloomberg.com/news/articles/2021-06-03/malaysia-says-received-80-million-1mdb-settlement-from-deloitte?embedded-checkout=true" target="_blank" rel="noreferrer noopener">$80 million</a>&nbsp;when it settled with the country in 2021, a hefty sum, but nothing compared to the&nbsp;<a href="https://www.justice.gov/opa/pr/deloitte-touche-agrees-pay-1495-million-settle-claims-arising-its-audits-failed-mortgage#:~:text=The%20Justice%20Department%20announced%20today,%2C%20Bean%20%26%20Whitaker%20Mortgage%20Corp" target="_blank" rel="noreferrer noopener">$150 million</a>&nbsp;it paid to the U.S. government in 2018 for its role in auditing failed mortgage lender Taylor, Bean &amp; Whitaker.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-routine-failures">Routine Failures</h2>



Auditing failures, despite the cost in money and reputation to the auditors, are practically routine. A 2020 study by the Association of Certified Fraud Examiners showed that auditors uncover less than 4% of frauds. That’s a dismal track record, for sure, but there are a couple of reasons why it actually makes a bit of sense.



First off, auditing is pretty much a by-the-book routine, says Columbia’s Breuer, which provides an opinion on whether companies’ financial statements are prepared in accordance with accounting standards, and whether companies maintain sound financial controls. It’s a straightforward, no-frills affair, and that’s just how the auditing world prefers it.



“What’s happened in the audit industry is that they’ve lobbied to do check-the-box exercises to limit their legal liability,” he told&nbsp;Forbes. “They’re just trying to satisfy the auditing standards, they’re not necessarily trying to attest to the real economic reality of the business.”



Secondly, despite their expertise, auditors are often outfoxed by companies willing to lie to them. Firms can concoct a tangle of fictitious documents, hide critical information, or devise schemes so elaborate they’re nearly impossible to decipher without a whistleblower’s help.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
A 2020 study by the Association of Certified Fraud Examiners showed that auditors uncover less than 4% of frauds
</blockquote>



But Deloitte’s Tingo case isn’t one you can just brush off with the usual excuses. It stands out because Hindenburg, along with a crew of independent internet detectives, managed to cut through the smoke and mirrors without any insider help.



Hindenburg’s exposé on Tingo, echoed by the SEC allegations, hints at a more unsettling issue. Auditors get their paychecks from the companies they’re supposed to keep honest. (Tingo paid&nbsp;<a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/854800/000121390023025186/f10k2022_tingogroupinc.htm" target="_blank" rel="noreferrer noopener">$1.6 million</a>&nbsp;in audit fees in 2022.) This setup can lead to auditors playing it safe, avoiding the hard-hitting questions that could upset a paying customer.



How did Deloitte, the auditing heavyweight watching over Tingo’s books, miss a scam that Hindenburg, an outsider, called out as painfully obvious?



Maybe the answer lies in who was holding Deloitte’s magnifying glass. Tingo, balancing its act between Nigeria and the Nasdaq in New York, wasn’t checked by Deloitte’s team in Nigeria. Instead, it was Deloitte’s Israeli branch, Brightman Almagor Zohar &amp; Co., that certified the books. That’s a head-scratcher, especially since, as Hindenburg highlighted, Tingo didn’t really do much business in Israel. Why not use auditors who operate where the action is? It almost seems like a move to keep the auditors just far enough away so they wouldn’t stumble upon anything they shouldn’t.



In response to questions from&nbsp;Forbes, a spokesperson for Deloitte Israel declined to comment, saying “professional standards prohibit our commenting on client matters.” Tingo didn’t respond to a request for comment.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-astonishing-gap">Astonishing Gap</h2>



The discrepancy between what Deloitte certified — $461.7 million — and Tingo’s actual cash balance of $50 was “astonishing,” Ed Ketz, an accounting professor at Penn State’s Smeal College of Business, told&nbsp;Forbes&nbsp;in an email. “The cash account is the most important balance sheet account and one of the easiest to audit,” he said. “One wonders how Deloitte Israel could have missed that.”



Verifying a company’s cash is a foundational part of the auditing process and one of the boxes auditors are supposed to check, said Stephani Mason, an accounting professor at the Driehaus College of Business at DePaul University.



“In the process of an audit there are some pretty basic things that should be done,” Mason told&nbsp;Forbes. “One of those is confirming cash balances by sending a form that goes directly to the client’s bank. The standard essentially says that the auditor has to verify the bank account independently.”



You’d think the obvious move would be to tighten standards on checking companies’ bank balance claims. But just cranking up the standards might not stop the deceit. In fact, academics argue that squeezing the fraud balloon doesn’t deflate it, it just pushes the hot air somewhere else.



A 2021 paper from folks at the University of Minnesota and Indiana University, titled&nbsp;<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3762260" target="_blank" rel="noreferrer noopener">“Everlasting Fraud,”</a>&nbsp;lays it out. Fraud, they say, shifts shapes, constantly morphing as crafty companies stay one step ahead of regulators in a relentless game of cat and mouse. While regulators are busy learning from old scams like Enron’s off-the-books creativity, companies like Wirecard, and allegedly Tingo, are out there boldly cooking up fake bank balances. It’s a gutsy move, a bet that it’s so obvious that auditors might figure no company would even try it, and not even check.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-not-their-job">Not Their Job</h2>



“If the auditors were really after fraud, I think they could find it,” Columbia’s Breuer told Forbes. “But that’s not the nature of their business. It’s not great for an auditor’s career to claim fraud with a client. They’re very cautious to not be too alarmist too often. That’s why they may look the other way or never get started on these things.”



An added impediment to accountability is the way auditing firms are set up, with offices in different countries acting more like independent franchises than branches of a central tree. That means Deloitte’s main office may never have to pay for this ridiculous oversight. Each office is its own island, so the fallout tends to stay local.



Where you might spot some consequences for auditors, however, is in the stock market. In the short term, Deloitte’s other client companies could feel a bit of a chill. There’s precedent for this. Consider what happened with PricewaterhouseCoopers’ clients after the “OscarGate” fiasco.



Rewind to 2017. PwC had the seemingly simple job of tallying votes for the Academy Awards. In the world of auditing tasks, this was so easy it was a bit dull, but with a hefty upside of a mountain of free publicity. Still, PwC screwed the pooch. Its accountants handed over the wrong envelope for the best picture award (La La Land&nbsp;instead of&nbsp;Moonlight) and what should have been a seamlessly glamorous affair turned into a comedy of errors, swapping the auditor’s PR triumph for a dose of public embarrassment.



Researchers&nbsp;<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3216232" target="_blank" rel="noreferrer noopener">Lawrence Abbott and William Buslepp</a>&nbsp;decided to investigate how PwC’s blunder — witnessed by millions of TV viewers around the world — might ripple out to its clients. They dug into the data and, lo and behold, it was PwC’s roster of clients who ended up feeling the pinch.



“We find that abnormal returns in the days following the error are significantly lower for PwC clients,” the researchers wrote, “suggesting an impaired reputation for audit quality.”



Basically, for a brief spell — the study pegs it at a month — the market was giving PwC’s clients the side-eye. Investors discounted the companies’ financial statements, all because they started wondering if they could really trust what was in them.



“In my expectation, this isn’t likely to affect the Deloitte U.S. firm,” DePaul’s Mason told Forbes. “The SEC can fine Deloitte Israel, disgorge profits, or even give them the death knell, so to speak, by barring them from auditing companies in this jurisdiction. But what I’m interested in is what other companies have they done work for? If I was an investor long on a client Deloitte Israel audited, I’d be very concerned.”

0x0 (1)

How Auditor Deloitte Missed A Nigerian Company’s Massive Fraud

Topline: On Friday, January 12, Israel presented its legal defense at the International Court of Justice (ICJ) at The Hague, Netherlands, responding to a legal claim of genocide leveled at the country by South Africa as a result of its ongoing conflict in Gaza. South Africa brought the charge of genocide to the United Nations’ highest court in late December of 2023, as a result of Israel’s military response to the October 7 Hamas attacks last year. The ongoing conflict in Gaza has so far reportedly left over 23,000 Palestinians dead.



Israel’s Strategy Explained



Israel&#8217;s legal team adopted a methodical approach at the ICJ, focusing on legal technicalities and procedural aspects. Rather than engaging deeply with the substantive aspects of South Africa’s allegations, Israel’s representatives highlighted the potential inadequacies of South Africa’s case; highlighting Israel’s right to self-defense in light of the October 7 attacks, emphasizing that the Israeli military has taken extraordinary measures to avoid civilian casualties, and that Israel has attempted to ensure humanitarian aid to civilians in Gaza.



Also key to the arguments Israel’s representatives made is to challenge the jurisdiction of the ICJ, noting that South Africa’s communications before lodging the case with the ICJ did not constitute a formal diplomatic dispute, before escalating the matter to the UN’s highest court.



Key Facts of Israel’s Defense



<ul>
<li>Israel’s Jurisdiction Challenge: Israel questioned whether the ICJ has the right to hear the case, arguing that there’s no actual legal dispute with South Africa, referencing their communications over the Christmas period.</li>



<li>Self-Defense Claim: Israel defended its actions as necessary self-defense against Hamas&#8217;s attacks on October 7, 2023, denying any acts of genocide against them.</li>



<li>Humanitarian Aid: Israel countered claims of restricting essential supplies, stating it ensured humanitarian aid reached Gaza.</li>



<li>Questioning ICJ’s Orders: Christopher Staker, from Israel&#8217;s legal team, questioned whether the ICJ can ask a country to stop defending itself.</li>



<li>Civilian Casualties: Israel blamed the civilian casualties in Gaza on Hamas’ use of civilian areas for military operations.</li>



<li>Critique of South Africa&#8217;s Approach: Malcolm Shaw criticized South Africa for not genuinely seeking to resolve the dispute before approaching the ICJ.</li>



<li>Debating Genocide Term: Israel’s legal team argued that the term &#8216;genocide&#8217; does not apply to the situation in Gaza.</li>
</ul>



Israel’s Representatives&#8217; Quotes



<ul>
<li>Shaw, a distinguished British legal scholar specializing in international law, told a packed Peace Palace at The Hague, &#8220;South Africa did not give Israel a reasonable opportunity to engage&#8230;before filing its no-doubt long-prepared application,&#8221; criticizing South Africa&#8217;s process.</li>



<li>Staker, a legal expert with extensive experience in international and public law, posed, &#8220;Can provisional measures require a state to refrain from exercising a plausible right to defend itself?&#8221; This reflects the complexity of international law in conflict scenarios.</li>
</ul>



Expanding the Context



Israel&#8217;s defense strategy in the ICJ case not only focuses on its right to self-defense but also brings into perspective its longstanding stance in the protracted Israeli-Palestinian conflict. The backdrop of this legal battle is a century-old saga marked by deep historical tensions and a series of conflicts that have shaped the Middle East.



Future of the Case



The ICJ&#8217;s decision on South Africa&#8217;s provisional measures request could significantly affect the Israeli-Palestinian conflict. Given the complex and detailed nature of ICJ proceedings, which involve extensive written submissions and oral arguments, a final ruling on the genocide allegations might take several years, potentially three to four years. The final decision will occur amidst evolving political and humanitarian contexts in Gaza and Israel, and could have a substantial impact on global diplomatic policies, particularly regarding human rights and international law.



Further Reading



<a href="https://www.forbesafrica.com/current-affairs/2024/01/11/south-africa-presents-its-case-at-the-icj-over-genocide-in-gaza/">South Africa presents its case at the ICJ over genocide in Gaza</a> (Forbes Africa)

Israel begins presenting defense at world court against genocide case

Israel Rejects South Africa’s Claims Of “Genocide” At The ICJ

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



The Federal Aviation Administration announced Thursday it’s investigating whether Boeing failed to ensure its planes were safe for flying after a a “plug” door fell off a 737 Max 9 plane flying from Portland, Oregon.



<h2 class="wp-block-heading">KEY FACTS</h2>



The FAA&nbsp;<a href="https://twitter.com/FAANews/status/1745491519266542047" target="_blank" rel="noreferrer noopener">said</a>&nbsp;it notified Boeing of the investigation, saying it was prompted by the Alaska Airlines 1282 flight, where a “plug” type passenger door blew off the Boeing Model 737 Max 9 plane mid-air, prompting an emergency landing.



Every Boeing 737 Max 9 with a “plug” door has been grounded since Saturday.



The FAA said that the “incident should have never happened and it cannot happen again.”



In a&nbsp;<a href="https://www.boeing.com/737-9-updates/index.page" target="_blank" rel="noreferrer noopener">statement</a>&nbsp;Thursday, Boeing said it would cooperate “fully and transparently” in both the FAA investigation and an ongoing National Transportation Safety Board investigation.



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



Safety concerns regarding Boeing’s 737 Max 9 planes have continued since the Jan. 5 incident. Both Alaska Airlines and United Airlines—the two U.S. airlines that use the 737 Max 9 planes—have&nbsp;<a href="https://www.reuters.com/business/aerospace-defense/no-data-captured-alaska-airlines-737-cockpit-voice-recorder-ntsb-chair-2024-01-08/" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;finding loose parts on grounded Max 9 aircraft. And Wednesday, Alaska Airlines&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2024/01/10/alaska-airlines-cancels-all-boeing-737-max-9-flights-this-week-after-hole-blown-into-plane-during-flight/?sh=6d5a18062273">canceled</a>&nbsp;all flights using Boeing 737 Max 9 planes, awaiting instruction from the FAA. It represents the latest major safety setback for Boeing, which garnered international scrutiny in 2019, two Boeing 737 Max 8 planes were involved in fatal crashes within the span of less than a year. The National Transportation Safety Board is also conducting an investigation into the Alaska Airlines incident, and has since&nbsp;<a href="https://www.forbes.com/sites/roberthart/2024/01/08/jet-door-blown-off-alaska-airlines-plane-is-found-in-oregon-schoolteachers-backyard/?sh=2aa3337e2d43">found</a>&nbsp;the plane door, which landed in an Oregon school teacher’s backyard.



<h2 class="wp-block-heading">TANGENT</h2>



Elon Musk has used the Boeing incident to continue his attacks on diversity, equity and inclusion corporate policies, implying without evidence on X in recent days that the plane-maker’s pursuit of diversity may have made air travel less safe. The posts drew <a href="https://www.nbcnews.com/tech/internet/elon-musk-boeing-dei-diversity-x-posts-pilots-rcna133351" target="_blank" rel="noreferrer noopener">rebuke</a> from civil rights groups.



<h2 class="wp-block-heading">WHAT WE DON’T KNOW</h2>



When the grounding of Boeing planes with “plug” doors may end. The FAA said in its Jan. 9 announcement that “the safety of the flying public, not speed, will determine the timeline for returning the Boeing 737-9 Max to service.”

US-AVIATION-BOEING

Boeing Under Investigation For 737 Max 9

Topline&nbsp;



Thursday, January 11, marked the start of an unprecedented legal confrontation at the International Court of Justice (ICJ) in The Hague in the Netherlands, as South Africa argued that Israel’s actions in Gaza amount to “genocide”. The country has also condemned all violations of international law by all parties, including the actions of Hamas. The case, which has drawn worldwide attention, emphasizes the complexities of the ongoing conflict and the diverse global reactions it has ignited.



Key Facts



<ul>
<li>South Africa presents its case first at the ICJ. The claim by its legal team, led by Tembeka Ngcukaitobi, is supported by an 84-page application citing Israeli military and political statements.</li>



<li>The South African application states, “No armed attack on a State’s territory, no matter how serious&#8230;can provide any possible justification for or defense to breaches of the 1948 Convention on the Prevention and Punishment of the Crime of Genocide.”</li>



<li>Israel&#8217;s President Isaac Herzog firmly rejects these accusations, asserting the country’s stance of self-defense and adherence to humanitarian law.</li>



<li>Ngcukaitobi stated, “The intent to destroy Gaza has been nurtured at the highest level of state,” emphasizing the severity of the situation. His colleague, Adila Hassim, reinforced this sentiment by highlighting the daily suffering of Palestinians: “Every day, there is mounting, irreparable loss of life, property, dignity, and humanity for the Palestinian people.”</li>



<li>The case has sparked significant public interest and polarized views, with demonstrations outside the ICJ and an international outcry from countries like Bolivia, Brazil, Colombia, Turkey and Iran supporting South Africa&#8217;s allegations.&nbsp;</li>



<li>Its outcome could have potential ramifications for South Africa&#8217;s diplomatic relations with the United States (US), an ally of Israel.</li>
</ul>



Contra



Israel has firmly rejected the accusations. Israeli President Isaac Herzog denounced the claims as &#8220;atrocious and preposterous&#8221;, asserting Israel&#8217;s stance of self-defense. &#8220;We will present proudly our case of using self-defense… under humanitarian law,&#8221; Herzog declared during a meeting with visiting US Secretary of State Anthony Blinken, emphasizing Israel&#8217;s commitment to avoiding civilian casualties.



Amidst the legal battle, the South African Jewish Board of Deputies (SAJBD) has criticized the South African government&#8217;s approach. In a statement issued by Prof Karen Milner, National Chair of the SAJBD, the organization accused South Africa of an &#8220;inversion of justice&#8221;. Milner pointed to South Africa&#8217;s alignment with Hamas and the inclusion of controversial figures in its delegation as evidence of a flawed and biased perspective. &#8220;This says volumes about South Africa’s intention,&#8221; Milner remarked, questioning the motives behind the legal action.



Key Background&nbsp;



This legal confrontation at the ICJ comes against a backdrop of escalating violence and political strife in Gaza. The 84-page application was lodged with the ICJ on December 29 2023. The ICJ&#8217;s role in this matter is limited to issuing opinions on allegations, which, while not enforceable, carry significant moral and political weight. The conflict has claimed over 23,000 lives according to Gaza’s health ministry.



The US, historically an ally of Israel, may find its diplomatic stance with South Africa challenged, depending on the outcome and reactions to the ICJ&#8217;s ruling. Zane Dangor, Director-General of South Africa&#8217;s Department of International Relations and Cooperation, commented on the potential impact of the case during a media conference last week. “We will be able to see how we regain this after the hearings are done but clearly, under the current circumstances, the relationship is not going to be normal and we will have to look at how do we engage after this, particularly working towards a permanent solution for the relationship,” adding, “We feel that our position is the principled one and that is something that they understand.”



Further Reading



<a href="https://www.forbesafrica.com/current-affairs/2024/01/01/south-africa-accuses-israel-of-genocide-in-un-filing/">South Africa Accuses Israel Of Genocide In UN Filing (F</a><a href="https://www.forbesafrica.com/current-affairs/2024/01/01/south-africa-accuses-israel-of-genocide-in-un-filing/" target="_blank" rel="noreferrer noopener">ORBES AFRICA)</a>

South Africa’s genocide case against Israel begins at International Court of Justice

South Africa Presents Its Case At The ICJ Over “Genocide” In Gaza

More states are now giving money to families who pull their kids out of public school, creating a pot that can be spent on online learning and microschool programs.



In September, Sandra Testo pulled her 14-year-old son, Keaton, out of his public middle school in Trinity, Florida—a response, she says, to years of bullying that had left him so anxious he ended up routinely hiding out in the school nurse’s office. Keaton now spends his days at home, completing his 8th grade coursework via Outschool, an online learning platform that offers live virtual classes for K-12 students. On Tuesdays, he attends a Christian co-op with other kids his age to study art and play basketball. “It’s been the best thing,” Sandra Testo says. “His demeanor has changed. He’s just so calm now.” Testo pays about $300 per month for Outschool from an educational savings account (ESA) funded by Florida.



Homeschooling is booming for a variety of reasons, but chief among them are dissatisfaction with public schools that spiked during the Covid-19 pandemic and $5 billion a year (and growing) of state stipends for families opting for public school alternatives. Those can include traditional private schools, online classes, homeschooling and microschools—networks of in-person learning “pods” with one teacher and a dozen to two dozen kids, often using online courses.



It all adds up to a growing parent-driven market for the edtech industry, says Michael Moe, founder and CEO of GSV Ventures, which backs educational startups. “Personally, I think the most exciting opportunity is in microschools, but homeschool, charter schools, low-cost private schools and virtual charter schools are all positioned well for this coming boom,” he says.



In 2019, before the pandemic, 3.7% of children aged 5 to 17 were schooled primarily at home either by parents or through virtual classes, up from 2% in 1999, according to a&nbsp;<a href="https://nces.ed.gov/pubs2023/2023101.pdf" target="_blank" rel="noreferrer noopener">survey</a>&nbsp;by the National Center for Education Statistics, which attributes that increase in part to information technology making home instruction more feasible. The NCES doesn’t have more recent data yet, but an&nbsp;<a href="https://www.washingtonpost.com/education/interactive/2023/homeschooling-growth-data-by-district/" target="_blank" rel="noreferrer noopener">analysis</a>&nbsp;by the&nbsp;Washington Post&nbsp;found the number of homeschooled children has surged 51% since the 2017-18 school year. Meanwhile, private school enrollment rose just 7% while public school enrollment declined 4%. The big spurt in homeschooling came during the 2019-2020 and 2020-2021 school years, when virtual classes and mask mandates were widespread. Since then, as public schools have returned to (more or less) normal, homeschooling numbers have dropped some, but held on to much of their pandemic era gains. Notably, some of the students who fled public school for home during the pandemic are now enrolling in microschools.



A&nbsp;<a href="https://www.washingtonpost.com/education/2023/09/26/home-schooling-vs-public-school-poll/" target="_blank" rel="noreferrer noopener">poll&nbsp;</a>conducted in August for the&nbsp;Post&nbsp;found homeschooling has spread well beyond the Christian conservatives most associated with the movement in recent decades. These days, homeschooling families increasingly cite anxiety over school safety (including bullying and violence) as well as a belief that what is available online is better than the instruction in local public schools, with a majority now&nbsp;<a href="https://www.washingtonpost.com/tablet/2023/09/25/aug-1-10-2023-washington-post-schar-school-home-schooling-poll/" target="_blank" rel="noreferrer noopener">using online live or recorded classes</a>.



This parent-driven opportunity is a rare bright spot for an edtech industry still struggling through the bust that followed its Covid boom. Funding for U.S. edtech startups in 2023 totaled $3.2 billion, down dramatically from the $9.5 billion raised in 2022 and $20.3 billion in 2021, according to data from Crunchbase. (In 2019, before the pandemic, the industry received $2.2 billion in investment.) The Covid-era funding frenzy came as three federal stimulus packages showered&nbsp;<a href="https://covid-relief-data.ed.gov/" target="_blank" rel="noreferrer noopener">$190 billion</a>&nbsp;on K-12 schools—money was spent&nbsp;<a href="https://www.newamerica.org/education-policy/reports/k-12-federal-covid-relief-what-can-we-learn-from-doing-school-funding-differently/" target="_blank" rel="noreferrer noopener">on everything</a>&nbsp;from beefing up technology for online learning, to making schools physically safer, to mental health supports and catch-up instruction for students. (Schools must spend their final Covid dollars by this coming September.)



As the federal windfall ends, new money to support the parent-driven boomlet is coming from state-funded educational savings accounts. Back in 2020, there were just four state ESA programs serving about 25,000 children and doling out around $100 million annually, says Joe Connor, founder and CEO of Odyssey, a platform that aims to connect state ESA programs with parents and education vendors. Today, 13 states have programs (some have more than one program, with different eligibility and funding) providing $5 billion a year to parents, he says. Those numbers are likely to grow. The National Conference of State Legislatures reports&nbsp;<a href="https://www.ncsl.org/state-legislatures-news/details/the-top-10-education-trends-for-2023" target="_blank" rel="noreferrer noopener">33 state legislatures considered ESA programs last year</a>&nbsp;and that it is now tracking nearly 100 such proposals.



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In August 2022, Melissa Shah, a Gilbert, Arizona mother of three, used a state funded ESA to enroll her now 16-year-old son into a KaiPod microschool. He’s neurodiverse and excels at math, but struggles with writing and reading comprehension. “Being able to customize your child’s education allows both the child and the family to increase their quality of life,” Shah says. “My son is finally feeling challenged in math, but it took until 11th grade. He spent so many years being bored in this subject, but not until we moved to an accelerated online private school paired with KaiPod Learning did he really shine.” Her son is now making plans to attend college—something Shah doesn’t think he would have considered without the opportunity he’s now had to forge his own educational path.



While ESAs are clearly boosting the money available to parents, Amar Kumar, founder of Boston-based KaiPod, argues they’re actually a “lagging indication” of growing parental demands for more control over their children’s education. “The way I see it is—ESAs follow what’s happening on the ground. As more and more families are saying, ‘Hey, I want to tailor my child’s education the way I see fit,’ that’s when politicians come on board and say, ‘Okay, then you should be able to use your tax dollars to do that.’”



Since launching in 2021 with seed funding from Y Combinator and EO Ventures, among others, KaiPod has helped independent teachers set up 49 pods and has opened 19 of its own company-run pods across five states. About half its current students were homeschooled before enrolling, while another quarter left full-time online schooling to join KaiPod and the last quarter left traditional public or private schools, Kumar says. Each pod is typically made up of 12 to 14 students and one educator. The pod covers a range of school subjects—from math to reading to science—with each student following their own self-paced and family-selected curriculum. Tuition prices vary by pod. In Nashua, New Hampshire, a five-day, Monday through Friday plan costs $6,600 per academic year. In Rosewell, Georgia, the same plan costs parents $9,000 per year. Parents also have the option to purchase two, three or four-day plans at most locations.



If parents have not already settled on a homeschooling curriculum, KaiPod helps them construct one. “So they may choose an a la carte approach of curriculum—Khan Academy for Math or Lexia for reading or something else for science,’’ Kumar says. “And then they come to the Kai pod three, four or five days a week to do all the other things and have a safe place to work.”



Outschool, a San Francisco-based online learning service, has seen a surge in business from ESAs, with the number of users paying with the accounts growing six fold in 2023, reports founder and CEO Amir Nathoo. Over the course of 2023, Outschools’ weekly receipts from ESA funds increased from tens of thousands of dollars to hundreds of thousands, he says. Currently, about half of the 100,000 monthly users of the platform are homeschooled, while others use it to supplement their public or private education. (The service, which was launched from the 2016 Y Combinator class, raised $110 million at a $3 billion valuation in 2021, bringing its total funding to $242 million from more than two dozen investors.)



Tony Wan, head of platform at Reach Capital, an education-focused VC firm that has invested in Outschool, cites state funded ESAs as one of the most important K-12 education trends to watch this year. “We anticipate demand for ESAs to grow as parents continue to seek alternatives for their children who they feel are not well served by existing and local options,” offers Wan, whose firm has also invested in other companies that sell to parents, such as early learning and reading platform Sharpen and tutoring platform Preply.



“We’ve seen (the number of) prospective customers that ask about paying with ESAs and other government funding increase dramatically,” reports Felipe Izquierdo, Founder and CEO of San Francisco-based Quest, which uses online games to teach math to pre-teens. He sees this as a big area of growth for his year-old startup, which now has 500 customers. So too does Garrett Smiley, the cofounder and CEO of Sora Schools, a New York-based virtual accredited private middle and high school that expects to increase its enrollment to 1,000 next academic year, from 335 now.



While ESA proposals have engendered big political fights in some states and so far have only been adopted by Republican controlled states, they seem to enjoy broader public support than the older private school voucher model. In a July&nbsp;<a href="https://hunt-institute.org/resources/2023/12/2023-across-the-aisle-report-cutting-through-the-noise-parents-and-voters-want-real-world-skills-safe-schools-and-literacy/" target="_blank" rel="noreferrer noopener">survey for the Hunt Institute of 1,300 likely 2024 voters</a>, 56% of respondents said they support spending taxpayer dollars on education savings accounts, compared to 49% who said the same for vouchers. (The Hunt Institute, which is affiliated with Duke University’s Sanford School of Public Policy, has received funding from the foundations of Amazon founder&nbsp;<a href="https://www.forbes.com/profile/jeff-bezos/?sh=33966241b238">Jeff Bezos&nbsp;</a>and Microsoft cofounder&nbsp;<a href="https://www.forbes.com/profile/bill-gates/">Bill Gates</a>&nbsp;and his ex-wife&nbsp;<a href="https://www.forbes.com/profile/melinda-french-gates/">Melinda French Gates</a>&nbsp;and from Meta cofounder&nbsp;<a href="https://www.forbes.com/profile/mark-zuckerberg/?sh=65dcd7a3e06d">Mark Zuckerberg</a>&nbsp;and his wife Priscilla Chan.)



Which students qualify for ESAs, how much they get and what parents can spend the money on varies widely from program to program. Montana and North Carolina have launched accounts just for students with special needs. New Hampshire established its ESA in 2021 for families with 350% or less of the poverty rate (a household income of $105,000 or less for a family of four). The accounts are not popular with teachers’ unions. The American Federation of Teachers-New Hampshire sued to block the program, claiming it violates the state constitution because it is partially funded through the state’s lottery program, whose earnings are earmarked exclusively for state aid to education. In November, a Superior Court judge&nbsp;<a href="https://www.doj.nh.gov/news/2023/documents/20231115-howes-v-edelblut-mtd.pdf" target="_blank" rel="noreferrer noopener">dismissed the lawsuit</a>.



West Virginia’s Hope Scholarship program, launched in 2022, and recently upheld by the state’s Supreme Court, provides accounts (equal to the state’s per capita contribution to local public schools) only to students who had previously been enrolled in public schools or are just starting kindergarten. This year, the accounts provide $4,489 to eligible students to pay for tuition, homeschooling curriculum and other expenses for individualized education. But the legislation could eventually make the accounts more widely available.



That’s in line with a trend toward wider eligibility. Arkansas, for example, launched ESAs this year with eligibility restricted to certain students, such as those with disabilities or fleeing the lowest ranked public schools, with total participation capped. The accounts are equal to 90% of the state’s per capita student funding for the prior year for public schools—that translates to $6,600 this year. But by the 2025-2026 school year, the state plans to make the accounts available to all students who want to leave public school.



“Generally, states want to make sure that the programs are up and running and that there is no fraud, waste and abuse before they expand the categories,” Connor observes. “But I think if you step back, generally the policy is to empower parents. And historically what we’ve seen is an expansion of what that means rather than a contraction.”



Arizona’s “empowerment scholarship accounts” were first established in 2011 for students with disabilities. For the 2022-23 academic year, children with disabilities were eligible for up to $43,000 in ESA funding, depending on their disability. But in 2022 the state made smaller accounts (now ranging from $6,000 to $9,000, depending on how much state aid would have been paid to a public or charter school system if the student had been enrolled) available to any non-disabled resident K-12 student regardless of family income, so long as they’re not enrolled in public schools or publicly funded charter schools. Parents can spend the money on private school tuition, curriculum, home education or tutoring, to name a few things. (This is separate from Arizona’s tax-credit subsidized voucher program for private schools and families can’t qualify for both.)



Connor’s Odyssey works with ESA programs in Idaho, Missouri and Iowa, and operates an online marketplace where parents can purchase pre-approved educational services for their children. After the programs are up and running, he sees a spike in interest from education vendors who want in on the action. “Once money actually starts flowing to the parents, and parents are purchasing things, we typically see that is when vendors—some tutoring centers, afterschool programs, music programs—get very interested in it, because now it’s a potential source of business and revenue for them,” he says.

Serious Mother Helps her Children To Do Their Homework in a Living Room

Will Homeschooling Parents Save Edtech?

Affinity Africa founder Tarek Mouganie is addressing the challenges of the unbanked in his country through digital finance.



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After dropping out of high school, Ibrahim Musa, a small business owner based in Ghana, has become somewhat of a serial entrepreneur. With stints in everything from cold stores, car sales and, most recently, selling electronic goods in Makola Market, the country’s busiest local market, his biggest challenge is actually in the digital sphere.



For years, Musa has faced a major snag when it comes to opening a bank account for his small business due to the many regulations involved.



“Every time I try and open a bank account, I am asked for so many documents that I simply do not have. After being rejected several times, I just decided to use mobile money for my banking needs but that is very limited because you cannot have access to the full range of services traditional banks offer and that is a real problem for entrepreneurs like me,” says Musa.



He is not wrong. The problem he speaks of affects over 500 million people across sub-Saharan Africa who do not have, amongst other things, proof of official identity documents. This is according to a 2017 article by the World Economic Forum. The knock-on effect of this problem is that it has led to over 350 million adults being financially excluded and expected to live on cash without the use of financial facilities, cited in a report by AfricaNenda.



For Ghanaian entrepreneur, Tarek Mouganie, the only way to tackle a problem like this is through the development of digital financial services. His solution, Affinity Africa, is a digital bank.



Mouganie holds an engineering degree from Imperial College London and PhD from the University of Cambridge. After working in the United Kingdom (UK) for a number of years, he decided to relocate back to Ghana to help solve the problems of the country’s unbanked and underbanked. It took Mouganie four and a half years to build the company and it finally launched in 2022.



“With no marketing spend, we have acquired 30,000 accounts just by word of mouth and, for 90% of our customers, we are their first-ever bank account. We have helped our customers save $23 million to date and have provided $13 million worth of loans as well. The average revenue of our borrowers has gone up by 500% and their employment base has gone by 3.5 times, so we are seeing growth,” says Mouganie.



The implementation of mobile money certainly is a silver lining for the future of the unbanked but according to Mouganie, it simply provides access. There is a deeper need to be addressed for small business holders.



“Our bank accounts are free, we don’t have any monthly charges and we provide interest across all accounts and that is a unique proposition. Our lending specifically focuses on small businesses which is what traditional banks don’t typically do,” says Mouganie.



He believes the problem is endemic to how African governments run their economies.



“If you look at OECD (Organisation for Economic Co-operation and Development) countries, the tax to GDP ratio is 33%. If you look at Africa, it is 16%. So, we are the lowest tax-paying continent in the world and for this reason, governments typically don’t have money which causes a huge amount of issues. But what is even worse is that a majority of our taxation is indirect –VAT, E-levy and other solutions that are quite regressive.”



“The reason that exists is because we have a huge informal sector and as a result of having been excluded from financial services, small business don’t get created,” Mouganie adds.



According to Mouganie, the reason why small businesses are important is because in developed countries, they employ about 60% of the population and drive about 50% of government revenue.



“In our part of the world, that is just not the case. So, to create employment and build resilient economies, we need to support small businesses, nurture them and encourage those new businesses to be registered, so that we can drive employment and socio-economic development,” says Mouganie.



This is, perhaps, what makes Affinity’s growth noteworthy.



The journey has been far from easy. The stringent process of obtaining a banking license has proven to be a challenge for many fintech entrepreneurs in the past. But Mouganie was so confident in his vision that he sold his house in London to invest in Affinity and set out to conquer the hurdle of regulatory approvals.



“Regulators exist because they are there to protect the consumer and who is the consumer? In our case, it is our customer and the regulator in Ghana wanted to support economic growth and support small businesses. We came up with a proposition of increasing financial inclusion in the true term and not just giving accessibility, which is what mobile money and digital money has done, but very much focus on affordability as well,” says Mouganie.



He founded Affinity with the aim to solve the problem of financial inclusion through digital finance and based on the growth Mouganie has achieved so far, the digital bank is ready to transform Ghana’s unbanked sector, one customer at a time.

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