The current consolidated medal count for Africa is 21 as part of the 2024 Paris Olympics! Sub-Saharan Africa's debt landscape is a bit of a cautionary tale. And things in the Sahel are complicated.

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Graphic of the Week

SSA and Its Crushing Debt…

Gray is Good, Orange (in this case) is Bad

In Context: 

• In 2002, Africa's economic prospects were bright with debt relief from wealthy nations and soaring global demand for commodities. 

• Then came sovereign credit ratings aimed to help sub-Saharan countries attract global investors. Many complex factors later and low sovereign credit ratings led to high borrowing costs. 

• Currently, many nations are struggling with overwhelming debt, exacerbated by economic mismanagement, commodity price fluctuations and the impact of global crises, including COVID-19 and the war between Russia and Ukraine, resulting in defaults and severe financial strain. That’s the context for present-day Kenyan and Nigerian protests. 

• This week the Kenyan Central Monetary Policy Committee (MPC) decreased the policy rate from 13.00% to 12.25% and named a new cabinet. In Nigeria, nearly 700 protesters have been arrested. 

• Go Deeper: This 17-minute read from Reuters on the crushing debt is worth your time. 

Too Long; Didn’t Read

• Africa: Africa’s central banks are spending huge sums to save their currencies - $1.3B since July (Bloomberg); Seychelles, Mauritius and Egypt lead Africa as best investment destinations (Bloomberg).

• Algeria: Kaylia Nemour secures Africa’s 1st gymnastics gold in the Paris Olympics (Forbes).

• Egypt: Annual urban consumer price inflation slowed to 25.7% in July (Reuters).

• DRC: U.S. provides DRC with $414M in humanitarian aid - helps American farmers (Reuters).

• Equatorial Guinea: Gov’t seeks $2B from Trafigura for hydrocarbon sector (Bloomberg).

• Ethiopia: Ethiopia’s securities exchange to start operations in October (Reuters); Gov’t allocates $5.9B to ease living costs (Bloomberg) as reforms boost investment (Further Africa); Gov’t auctions dollars (Bloomberg).

• Kenya: Central bank cuts rate to 12.75%—first cut since 2020 (Bloomberg); Ruto appoints new cabinet amid protests (Bloomberg).

• Niger: U.S. officially handed over its last military base to local authorities (AP News); Gov’t follows Mali and cuts ties with Ukraine (FT).

• Nigeria: Fitch downgraded Dangote rating (Bloomberg); WhatsApp facing suspension in Nigeria (techcabal); Country navigating economic challenges (Bloomberg) and malnutrition (Bloomberg); naira gains after Central Bank of Nigeria (CBN) dollar auction (Bloomberg) - Dollar auctions are a thing this week! 

• South Africa: Johannesburg, Africa's richest city, requires $12B for urgent maintenance (Bloomberg); Gov’t seeks gray list exit amid corruption woes (Bloomberg).

Sports and Entertainment in Africa

As the Olympics wrap up this weekend, we took a look at some of the notable highlights for African athletes in Paris.

Click to check out our Dynamic Olympic Graphic: 

• Runner Beatrice Chebet (Kenya): Women's 5000m - Gold Medal

• Runner Faith Kipyegon (Kenya): Women's 5000m - Silver Medal

• Runner Mary Moraa (Kenya): Women's 800m - Bronze Medal

• Runner Faith Cherotich (Kenya): Women's 3000m Steeplechase - Bronze Medal

• Runner Abraham Kibiwot (Kenya): Men's 3000m Steeplechase - Bronze Medal

• Men's Rugby Sevens (South Africa): Bronze Medal, defeating Australia at the Stade de France

• Swimmer Tatjana Smith (South Africa): Women's 100m Breaststroke - Gold Medal; Women's 200m Breaststroke - Silver Medal

• Cyclist Alan Hatherly (South Africa): Men's Cross-country - Bronze Medal

• Runner Joshua Cheptegei (Uganda): Men’s 10000m - Gold Medal

• Runner Peruth Chemutai (Uganda): Women’s 3000m Steeplechase - Silver Medal

• Runner Soufiane el Bakkali (Morocco): Men's 3000m Steeplechase -Gold Medal 

• Men’s Football “Soccer” (Morocco): Bronze Medal

• Gymnast Kaylia Nemour (Algeria): Uneven Bars: Gold Medal, the first Olympic medal for an Algerian and African gymnast

• Runner Letsile Tebogo (Botswana): Men's 200m - Gold Medal

• Berihu Aregawi (Ethiopia): Men's 10000m - Silver Medal

• Tsige Duguma (Ethiopia): Women's 800m -  Silver Medal

• Fencer Fares Ferjani (Tunisia): Men’s Individual Sabre - Silver Medal

• Taekwondo Mohamed Khalil Jendoubi (Tunisia): Men -58kg - Bronze Medal

• Boxer David de Pina (Cabo Verde): Men's 51kg - Bronze Medal

• Fencer Mohamed Elsayed (Egypt): Men’s Épée Individual - Bronze Medal

• Runner Muzala Samukonga (Zambia): Men’s 400m - Bronze Medal

*As of August 9, 2024

Read More: Olympics.com

Short Olympic Stories:

• Over the weekend, Algeria's Kaylia Nemour made history at the Paris 2024 Olympics by becoming the first African gymnast to win an Olympic medal, securing gold on the asymmetric bars. The medal also marks Algeria’s first gold medal in 36 years. 

• Four African cyclists briefly pulled ahead in the Men's Olympic Road Race at the halfway mark. The group included Eric Manizabayo (Rwanda), Achraf Ed Doghmy (Morocco), Christopher Rougier-Lagane (Mauritius) and Charles Kagimu (Uganda). Notably, in the women’s field, Ese Lovina Ukpeseraye from Nigeria made history by becoming the first Nigerian cyclist to compete in the Olympic road race. Diane Ingabire from Rwanda, also competed in the women's road race. 

Business & Finance in Africa 

Ethiopian Birr Falls, P.M. Criticizes Banks

• On Monday, the Ethiopian birr fell to 101 ETB to the dollar (was 53 two weeks ago) after Ethiopian Prime Minister Abiy Ahmed criticized banks last Friday for propping up the national currency. 

• Following the removal of its peg to the dollar on August 2, the birr depreciated by 23% to ETB 74.74 per USD, according to the banks while black market prices were ETB 118 to 128 to the dollar. 

• Abiy also claims the float will not cause inflation. 

• On August 7, The National Bank of Ethiopia conducted a special auction, selling U.S. dollars to commercial banks at an average rate of ETB 107.9 per USD. The currency float was part of efforts to secure a $3.4B bailout from the International Monetary Fund and attract foreign investment.​

What’s Up with WhatsApp in Nigeria?

• WhatsApp is considering suspending operations in Nigeria after a government agency fined the platform $220M for data privacy violations. 

• Nigeria is requiring WhatsApp to stop sharing user data with third parties including Facebook without explicit consent and to provide more transparency about data collection and usage. 

East Africa's Rail Race

• Tanzania has inaugurated its Standard Gauge Railway (SGR) from Dar es Salaam to Dodoma, while Kenya's extension from Naivasha to the Uganda border continues with Chinese backing. 

• Meanwhile, Uganda has shifted from Chinese to Turkish support, signing a contract with Yapi Merkezi to construct the SGR from Kenya’s border to Kampala. 

• Integrated railway projects throughout the continent are critical to unlocking the African Continental Free Trade Area (AfCFTA), which aims to eliminate trade barriers and boost intra-African trade.

Peace & Security in Africa 

Proxy War: Sudan

• The conflict in Sudan, which began in Khartoum in April 2023, has evolved into a devastating proxy war involving regional powers like the UAE, Saudi Arabia and Russia. The war has resulted in immense human suffering, with an estimated 10 million displaced and 25 million facing acute hunger. 

• According to yesterday’s article in FT, weapons are flowing across most of Sudan’s seven neighboring borders with Egypt and Saudi Arabia supporting the Sudanese Armed Forces led by Abdel Fattah al-Burhan and Russia and the UAE supporting the Rapid Support Forces, led by Mohamed Hamdan Dagalo. 

• Why? Gum arabic, gold, land, water from the Nile, the Red Sea Coast and other resources are at stake. 

Ukraine vs. Russia…in Africa

• Mali severed diplomatic ties with Ukraine this week, accusing it of supporting Tuareg rebels in northern Mali. 

• The decision followed a video by a Ukrainian military intelligence spokesman that was posted on the Ukraine embassy's Facebook page, claiming Ukraine had provided information to the rebels during recent clashes in late July 2024.

• The conflict resulted in significant casualties, including the deaths of 84 Russian Wagner Group mercenaries and 47 Malian soldiers​. Its neighbor, Niger followed suit on Wednesday by also severing ties with Ukraine over Ukraine’s alleged support for rebels fighting Russia’s Wagner Group in Africa. Both Mali and Niger are located in what’s known as the “coup belt” and run by military dictators slowly turning away from the west and towards Russia as their reliable partner. 

U.S. Fully Exits Niger

• The U.S. handed over its last military base in Niger to local authorities this week, completing the withdrawal from Airbase 201 in Agadez and Airbase 101 in Niamey. 

• The remaining American soldiers are expected to leave by September 15 under an agreement with Nigerien authorities. 

• This withdrawal follows Niger’s shift in security partnerships towards Russia, undermining U.S. interests in the Sahel region. 

In Context: The Washington Post shared an insightful timeline on how the U.S. built and lost its partnership with Niger and what that means for the region. To me, a clear example of the U.S. losing its way related to its African policies and relationships. 

In case you missed it, here’s the timeline of key events in the Sahel.

This week’s brief is brought to you by Andrew Larsen in Rwanda, Antony Maina and Mary Ann Achieng in Kenya, Ruth Ayalew in Ethiopia and Laura Davis in the U.S. We’d love to hear from you! Email us at [email protected]. See you next week!