Africa in Brief - August 30, 2024

Egypt to Arm Somalia | Turkey's Growing Ties | e-Visas Expand + Senegal Launches Satellite

Happy Friday! Let’s jump right in.

Africa Trivia

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TL; DR

  • Africa: e-Visa systems expand on the continent in 2024 (Further Africa).

  • DRC: Mpox vaccines expected this Sunday (Bloomberg).

  • Egypt: E-commerce firms, MaxAB (Egypt) and Wasoko (Kenya) merge to form retail giant (Bloomberg).

  • Libya: Oil prices surge as production is halted, escalating crisis (CNBC) (Bloomberg) (Bloomberg).

  • Mauritania: Spain and Mauritania boost ties amid a surge in Canary Islands migrant arrivals (Africa News).

  • Namibia: Gov’t culls wildlife to aid drought relief (Reuters); Oil discovery boosts interest in local bonds and Exchange Traded Funds (Reuters).

  • Nigeria: Q2 economy boost by 3.19% attributed to higher crude oil production (Bloomberg).

  • Somalia: Egypt delivers military aid to Somalia as tension with Ethiopia increases (Reuters).

  • South Africa: Naspers anticipates $5.2B e-commerce boost for South Africa by 2035 (Bloomberg); Rand weakens ahead of key economic data, bond yields drop (Reuters).

  • Sudan: WFP investigates Sudan officials for fraud and obstructed aid amid severe hunger crisis (Reuters).

  • Tunisia: President shakes up cabinet before election (Reuters).

  • Turkey: The country’s influence is growing in Africa (FT).

Graphic of the Week 

The Cooking Smoke Hazard

  • Startups including Mega Gas, Burn and Koko are innovating to provide clean cooking fuel that reduces air pollution risks in homes and mitigates negative climate effects.

  • According to the World Health Organization, approximately 3.2 million people die prematurely each year from diseases caused by household air pollution. 

  • Most sub-Saharan African households cook with charcoal leading to millions of devastating household deaths every year. 

  • Up close and personal: 

    • The past few weeks of limited rainfall in Rwanda have created a dense haze over the city. 

    • The gray-yellow horizon reminded me (Andrew) more of Los Angeles than the lush landscape that I enjoy in Kigali.

    • When I inquired to friends about the haze, it wasn’t cars or pollution they blamed it was indoor cooking with open fires. 

Business & Finance in Africa 

Countries Scramble to Woo Travelers with E-Visas

  • As mentioned in last week’s brief, AmEx is expanding its footprint in Africa, largely following the surge of international travelers visiting the continent every year.

  • Africa is responding as well. In 2024, CĂ´te d'Ivoire, Ethiopia, Gabon, Kenya, Morocco, Mozambique, Nigeria, Rwanda, SĂŁo TomĂ© and PrĂ­ncipe, Tanzania, Uganda, Zambia and Zimbabwe have adopted e-Visa systems to simplify travel.

Africa’s Shifting Oil Giants

  • Due to a recent oil price surge, Nigeria has seen a bump in their economy.  

  • But the big picture is that Nigeria is no longer the undisputed leader in African oil production as a result of high production costs and security issues.

  • Major oil companies are divesting from the Niger Delta region, contributing to a near 50% drop in production since 2005

  • This creates an opportunity for other oil-producing African nations including Libya, Angola, Algeria and Egypt.

Merger Joins Two African E-Commerce Giants 

  • This month, Kenyan e-commerce firm Wasoko and Egypt's MaxAB merged through an all-stock deal, creating a new retail powerhouse in Africa.

  • The merged companies serve more than 450,000 merchants across eight African countries, including Kenya, Tanzania, Rwanda, Egypt and Morocco.

  • Daniel Yu (Wasoko) and Belal El-Megharbel (MaxAB) will serve as co-CEOs of the yet-to-be-named company.

  • The new firm plans aggressive expansion, having raised $230M and expects its revenue to more than double by the end of the year. 

Cotton to Couture: Benin's Leap

This week, FT reported how Benin is embarking on a bold journey to reshape its economy through a textile revolution.

  • Arise Integrated Industrial Platforms is investing EURO 550M into Benin’s textile sector to shift from exporting raw cotton to processing and manufacturing finished apparel locally.

  • The industry could add $12B to the economy by processing its entire cotton crop and create more than 13,000 jobs.

  • Glo-DjigbĂ© industrial park is already operational, employing 12,000 workers and aims to process 13% of the cotton crop by 2026.

  • Future Vision: Benin aims to boost manufacturing capacity and expand into other sectors by 2030.

Health in Africa 

Vaccine Delays for Mpox

  • The World Health Organization has declared mpox a global public health emergency, reflecting the severity of the outbreak, coinciding with the nomination of Tanzanian politician Faustine Engelbert Ndugulile for a five-year term as the WHO’s regional director for Africa. 

  • The Democratic Republic of Congo anticipated receiving mpox vaccine deliveries this week, but regulatory processes mean that these doses are delayed

  • Meanwhile, scientists have expressed concern about the rapid mutation of the virus, particularly the new strain, which is complicating efforts to track and manage the disease.

  • In response to the crisis, Spain has pledged to donate 500,000 mpox vaccine doses to support the broader regional effort to curb the outbreak. 

Tech & Society in Africa

Safaricom Fights Back Against Starlink

Love him or hate him, Elon Musk’s Starlink is rolling out satellite internet across Africa, aiming to bring high-speed connectivity to areas long ignored by traditional providers.

  • Starlink faces regulatory roadblocks in countries like South Africa, where Musk was born.

  • The competition is not happy either. In August 2024, in response to Starlink’s rollout in Kenya, Safaricom launched a new more competitive pricing structure for its fiber internet reducing prices to $38.61 from $50.19 in an attempt to win back customers from Starlink

  • Safaricom is advocating for government regulation of satellite internet providers, recommending they partner with local operators before getting licenses.

Peace & Security in Africa 

Egypt Sides with Somalia

  • Egypt announced it will deliver military aid to Somalia, the first in over four decades.

  • The support, which included weapons and ammunition, coincides with escalating tension surrounding Ethiopia's controversial deal with Somaliland. 

  • Somalia has opposed the Ethiopia/Somaliland deal, viewing it as a direct challenge to its sovereignty and has threatened to expel Ethiopian troops who are part of a peacekeeping mission. 

  • Egypt's new military support for Somalia and its offer to contribute troops to a future peacekeeping mission could significantly strain relations with Ethiopia, potentially leading to increased regional instability and the risk of a proxy conflict. 

  • Egypt and Ethiopia's political relations have long been strained including a decade-long frustration due to Ethiopia’s Grand Ethiopian Renaissance Dam

Climate in Africa

Namibia’s Sad Drought Plan

Amid southern Africa’s worst drought in a decade, Namibia is culling 723 wild animals, including 83 elephants to manage overpopulation in areas with depleted grazing land and water.

  • Severe droughts in the area have exhausted 84% of the country's food reserves, leaving nearly half of Namibia's population facing food insecurity. 

  • As Namibia grapples with this critical situation, some believe the culling represents a critical intervention to balance wildlife management and human needs in an increasingly dire situation (Reuters).

Democracy in Africa

From Friends to Foes to Friends Again?

  • On August 27, 2024, President William Ruto endorsed Raila Odinga for the African Union Commission (AUC) chairperson position, praising Odinga’s experience and leadership as key to boosting Africa’s global prominence. 

  • The Ruto-Odinga relationship has been a rollercoaster, evolving from close allies to arch rivals and now back to being close friends. 

  • Ruto may be doing this to quiet Odinga. For example, in July, to address discontent over the controversial Finance Bill 2024 and general dissatisfaction with his government, Ruto appointed Odinga’s key allies to his cabinet as part of a strategy to form a "broad-based" government. This initiative aimed to stabilize Kenya's political climate but faces skepticism from critics who see it as a tactic to neutralize the opposition rather than genuine reform. It also marks the first inclusion of the opposition in the government since Odinga’s prime ministership in 2008. 

  • Learn more about the shifting political dynamics between Raila Odinga and William Ruto and their impact on Kenya’s political landscape.

Europe in Africa

Morocco Bridging Continents 

  • In July, Morocco launched the Morocco Atlantic Initiative to promote economic integration and human interaction in the Sahel region including Burkina Faso, Mali, Niger and Chad.

  • The effort aims to develop infrastructure and foster cooperation, particularly through access to the Atlantic Ocean.

  • This week, former French Member of the European Parliament, Florence Kuntz, praised King Mohammed VI's Atlantic initiative for acting as a catalyst for building a partnership between Europe and Africa. 

  • The initiative is part of Morocco's broader vision to re-engineer the strategic geopolitical space of the Atlantic coast, positioning it as a gateway between Africa and the Americas while promoting South-South Cooperation (SSC).

Middle East in Africa

Turkey’s Rising Footprint in Africa

In the growing global race for influence, Africa has emerged as a pivotal battleground where nations including China, United States, Russia and Saudi Arabia vie for strategic ties. Turkey has also become a significant player in this competition, leveraging its diplomatic, economic and security agendas to make its mark on the continent:

  • Diplomatic Expansion: Turkey has nearly quadrupled its embassies in Africa since 2003, now totaling 44.

  • Infrastructure Investments: Turkish contractors have undertaken around 1,800 projects, including major developments like airports and hotels in countries such as Niger.

  • Military and Security Cooperation: Turkey has supplied African nations with drones, small arms, mine clearance vehicles and armored vehicles.

  • Humanitarian Efforts: Turkey has built schools and hospitals in Somalia and launched an Africa-focused news service by its state broadcaster TRT in multiple African languages.

  • Trade and Transportation: Trade between Turkey and Africa reached $32B last year and Turkish Airlines now serves more African destinations than any other non-African carrier.

Explorations in Africa

Senegal’s Mission to Space

  • On August 16, 2024, Senegal launched its first satellite, GAINDESAT-1A, marking the first stage of its national space program, SENSAT. 

  • The nano-satellite, built by Senegalese engineers and technicians, was launched from the U.S. Vandenberg Air Force Base in California on SpaceX's Falcon 9 transport rocket. 

  • Its primary mission is to gather data for state agencies to improve resource management and weather forecasting. 

  • Senegal is the latest African country to launch a satellite, with 17 countries launching 61 satellites as of August 19. The African space industry is projected to be valued at $22.6B by 2026.

Africa Trivia Answer

Answer: D) 25%
Surprising Fact: Sub-Saharan Africa’s working-age population is projected to make up 25% of the global working-age population by 2050, surpassing China. Read more.

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This week’s team includes Andrew Larsen, Mary Ann Achieng, Shaynerose Magabi, Ruth Ayalew and Antony Maina. Reach out to us at [email protected]. Have a great weekend!