Holding the US accountable for market manipulation targeting African tech companies

• The recent attack on Tingo Group by Hindenburg Research, a manipulative US financial research company, raises concerns for Nigeria and Africa.
• Hindenburg Research employs deceptive tactics to manipulate stock prices, causing significant harm to African businesses and communities.
• Nigeria and Africa must take a stand to protect their interests and ensure the sustainability and prosperity of their technological advancements and economic progress.

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The recent attack on Tingo Group, an African tech giant, by a manipulative financial research company operating with impunity in the US highlights a grave concern for Nigeria and the entire African continent.

This article sheds light on the modus operandi of this company, the devastating consequences it inflicts on African businesses and communities, and the urgent need for Nigeria to take a stand and protect its own interests.

The Hindenburg Hustler’s Reign of Manipulation

Operating under the guise of independent analysis, the Hindenburg Research company, led by Nathaniel Anderson, employs a strategy known as “short and distort.” They orchestrate disinformation campaigns targeting booming stocks, fabricating evidence, and spreading lies until the stock prices collapse.

These manipulative tactics, backed by Anderson’s billionaire allies, have allowed them to pocket hundreds of millions of dollars annually. They even had the audacity to publicly shame Carl Icahn, a renowned banker, as a display of their power over Wall Street.

Impacts on Africa and Tingo Group

While such actions may be mere games for US bankers, their consequences for Africa are dire. Tingo Group plays a vital role in enabling 11 million farmers to access seeds, fertilizers, and markets for their crops. Many of these farmers, living in regions affected by climate change, rely on Tingo for their livelihoods, healthcare, and education.

Moreover, Tingo operates in conflict-ridden areas, providing income and communication channels for those who are isolated or displaced. When Tingo suffers, Africa suffers.

Africa’s Technological Progress Under Attack

Africa has witnessed remarkable progress through its homegrown technology entrepreneurs, who have been instrumental in lifting the continent out of poverty. Mobile money services, pioneered in Africa a decade before their adoption in the US, have transformed financial inclusion and reduced poverty.

However, Hindenburg and similar entities are indifferent to the importance of these advancements for Africa’s development.

US Responsibility and Inadequate Support

The United States, through the Digital Transformation with Africa Initiative (DTA), pledged a mere $800 million for Africa’s digital transformation. This amount pales in comparison to the value destroyed by Hindenburg and its likes in just a matter of days.

If the US genuinely cares about Africa’s digital transformation, it must employ its enforcement bodies to swiftly shut down these manipulative entities that exploit unconscious racial biases in financial institutions.

It is hypocritical for US capital markets to tout their concern for ESG matters and UN development goals while failing to regulate criminals like Nathaniel Anderson operating near the UN headquarters in New York.

Protecting African Companies

In the face of regulatory inaction, African tech companies seeking support from US capital markets, like Tingo Group, must take proactive measures to protect themselves.

Seeking independent inquiries, such as Tingo’s engagement with White & Case, a renowned global law firm, is crucial to evaluate allegations and make informed recommendations. Unmasking Anderson’s billionaire allies is necessary to expose the criminal conspiracy surrounding him.

Surviving Hindenburg’s Attacks

Companies like Bloom Energy, Ormat Technologies, and Technoglass have managed to weather Hindenburg’s onslaught.

Bloom Energy’s share price more than doubled within two years, while Ormat Technologies and Technoglass saw their share prices stabilize and triple, respectively, once they dispelled Hindenburg’s allegations. This demonstrates that resilience and evidence-based responses can triumph over baseless attacks.

Demanding Accountability

The fact that such criminal activities persist at the heart of the world’s largest economy, shielded by constitutional protections, is astounding.

Nigeria, together with the African Union, should consider leveraging institutions like the World Bank or IMF’s Financial Sector Assessment Program to hold the US accountable for allowing these manipulative practices to thrive.

Conclusion

In an era where Africa’s population is projected to surpass that of the US within 25 years, Nigeria must draw a line and protect its interests. It can no longer rely on the goodwill of the US to defend its companies, leaders, and people. It is time for Nigeria and Africa as a whole to stand on their own two feet, safeguard their businesses, and assert themselves on the global stage. Only by doing so can Africa protect its progress, ensure sustainable development, and secure a prosperous future.

By: Dr. Monday Ashibogwu  (Lagos-based Development Expert).