#12: Nigeria's FX Turnover Soars by $1.47 billion in June 2024

Hello Readers,

Welcome to the 12th edition of Jam's Reading List! This newsletter is all about curating some of the best content out there that matters in Business and Finance of the previous week. We know that sometimes you might be busy all week, so we've summarized the key points to make sure you get the gist without the fluff.

Didn't read much this week, focused more on articles by Industry operators and founders, with a sprinkle of Nigerian good news!!

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Happy Reading!

1. Building a Profitable Business in Challenging Times

This article illustrates a successful business from a Construction POV and I love it.

Running a business during the funding winter has forced many startups to pivot, shut down, or seek profitability. Building a profitable business involves scaling margins, increasing outputs, and reducing inefficiencies, which was conceptualized as "The Business House." This includes the "roof" (margins), "pillars" (management, people, technology, customer focus, operations, pricing, and working capital), and "fences" (moats like partnerships, distribution, scale efficiency, network effects, high switching costs, cost advantage, and intangible assets). These components are crucial for maintaining profitability and competitive advantage.

2. Rethinking Scoop-Driven Journalism

Ngozi, the Co-founder of Carbon, addressed the neobank's recent announcement to discontinue its debit card operations. He criticized in his fun and unique way, the scoop-driven journalism for focusing on insider information without context and advocated for deeper, more analytical reporting. Ngozi reflected on the broader issue of neobanks pursuing card operations without thorough analysis and emphasized the need for well-researched journalism that provides genuine insights into business decisions. I won't hold my breathe on that!

Founder Corner

1. Good Business Advice can be Wrong

Roger Norton, CPO at OkHi, argues that while there's abundant advice for starting a business, its applicability varies greatly. He differentiates between small traditional businesses, startups, deep tech, and tech-enabled businesses, noting that each has unique needs and growth strategies. Norton emphasizes the importance of discerning which advice suits your specific business type, as mismatched advice can be detrimental. A must-read!

Finance Corner

1. Ghana Restructures Debt

Ghana has reached a debt restructuring agreement with its $13 billion Eurobond holders, involving a 37% principal haircut and extended maturities. This agreement is part of efforts to secure a $3 billion IMF credit facility and aims to reduce Ghana's public debt-to-GDP ratio from 88.1% in 2022 to 55% by 2028. Additionally, Nigerian banks suffered losses exceeding $1 billion due to their exposure to Ghanaian bonds. The restructuring is essential for the next IMF funding tranche of $360 million.

2. Nigeria's FX Turnover Soars to $199 Million in June 2024

Finally some good Newsssss!!!!

Nigeria's foreign exchange reserves have reached a three-month high of $33.58 billion as of June 19, 2024, due to stable exchange rates and new financial commitments from the World Bank. This marks a significant recovery from a low of $32.11 billion in April. The Central Bank of Nigeria's policies have improved forex liquidity, with an average daily turnover of $199 million in June. The Monetary Policy Committee has urged the CBN to continue focusing on boosting reserves.

Podcast:

1. RiseBiz

I'm very bullish about Bright's Business Community. Learning how to grow a business from someone relatable is truly underrated. You should subscribe to it for practical insights and valuable guidance tailored to real-world experiences.

2. All-in Pod

The episode "In Conversation with President Trump" on "All-In with Chamath, Jason, Sacks & Friedberg" covered various significant topics. It started with economic discussions on regulation, taxes, tariffs, and inflation, followed by federal debt management and energy policy. The conversation also touched on foreign policy issues including Ukraine/Russia, Israel/Palestine, and China, as well as topics like abortion, COVID origins, immigration, and the JFK files. The episode wrapped up with debate predictions and a post-interview debrief.

Thank you for reading the 12th edition of our Reading List. If you enjoyed it, learned something new, or found it valuable, please leave a comment, share, and like. Your support encourages me to keep creating this content.

Love from Jam??!