On October 28, 2024, during a visit to Rabat, France’s President Macron recognized Morocco’s sovereignty over Western Sahara. In Mozambique, October elections have stirred political engagement while across the continent, investments in technology signal growth: Google announced $5.8M to expand AI skills in sub-Saharan Africa and Nigerian fintech Moniepoint joined the unicorn club, highlighting Africa’s expanding innovation landscape. And wait, what? Is that a sniffer rat? Read on for these stories and more!

Africa Trivia 

Graphic of the Week 

Harris or Trump? Does Africa Even Care?

U.S. trade volumes with Africa have significantly declined since their peak in the mid-2000s. During a similar period, Africa and China trade volumes have grown six times larger. This week’s graphic is brought to you from Ken Opalo who it was nice to see at the FT Africa conference in London this week! So many academics and policymakers at the conference who regularly make these pages!

Here’s Ken’s take on how the U.S. election outcomes could impact the continent.

• Harris’s focus might lean towards bolstering economic ties and supporting African infrastructure investments, a continuation of Biden's approach with emphasis on key alliances and commercial partnerships. Recently, Kamala assembled a 25-person team under Eric Holder's leadership to reevaluate the U.S.-Africa policy (Semafor).

• Trump’s approach to Africa likely remains focused on countering China’s influence and prioritizing security through counterterrorism efforts, both of which have shown limited impact on building a comprehensive U.S.-Africa partnership. 

Read Ken Opalo’s full piece on An Africanist Perspective. To summarize, the U.S. election may not matter much unless the U.S. gets its act together and invests in a coherent, timely strategy for Africa.

TL; DR

• The Continent: On Oct 28, 2024, Google announced a $5.8M investment to support the acceleration of AI upskilling across sub-Saharan Africa (Google); British International Investment (BII) and Absa launched $150M to boost African trade, focusing on women and youth-led SMEs (BII).

• Angola: Cabinda refinery to start by April 2025, supplying 5% to 10% of Angola's fuel needs to cut costly imports (Reuters).

• Botswana: President Masisi accepts defeat ending his party’s 58-years in power (Bloomberg).

• Ghana: Gov’t may start importing fuel from Nigeria’s Dangote Oil Refinery, reducing costly imports from Europe and saving up to $400M monthly (Reuters).

• Kenya: Annual inflation fell to 2.7% in October, the lowest in at least 14 years, driven by easing food, fuel and utility costs (Bloomberg).

• Morocco: The country plans to loosen the dirham's currency peg in 2026 and issue at least $1B in eurobonds by early 2025 (Bloomberg); France backs Morocco’s sovereignty over Western Sahara (BBC).

• Mozambique: Authorities have opened a criminal case against opposition leader Venâncio Mondlane following violent protests over alleged election fraud during the October 9 elections (Bloomberg) as he calls for more protests (Bloomberg).

• Nigeria: Central Bank aims for $1B monthly in remittances by addressing transfer issues (Bloomberg); Naira fell 4.3% driven by a significant drop in dollar liquidity, which plummeted 72% to just $81M (Bloomberg); fintech company Moniepoint has become a unicorn, raising $110M from investors and reaching a $1B valuation (FT).

• Senegal: Raised $300M by reopening a bond to finance its 2024 budget after the IMF delayed disbursements due to higher-than-expected debt (Reuters).

• South Africa: Names Crispian Olver as Deputy Chairman of the Presidential Climate Commission to help drive its $9.3B coal reduction initiative (Bloomberg); Competition Tribunal blocked Vodacom’s $745M fiber deal, stalling digital expansion in underserved areas (Bloomberg); after years of crippling blackouts, Eskom has achieved seven months without outages (Bloomberg). 

• Zambia: Inflation hit 15.7% in October, highest since 2021, driven by severe drought-related shortages (Bloomberg).

• Zimbabwe: President Mnangagwa rejected a party offer to extend his term until 2030 (Bloomberg). 

Business & Finance in Africa 

Diamonds Are in the Rough

• Botswana, the world’s largest producer of rough diamonds, has seen a 73% drop in diamond sales, dealing a severe blow to its economy and state funding. 

• In response, President Mokgweetsi Masisi secured a 10-year deal with De Beers, enhancing diamond access and bringing in $746M for development projects. 

• While the ruling Botswana Democratic Party under Masisi looks set to extend its 58-year rule, opposition parties are sharply criticizing the government’s reliance on diamond revenue and economic mismanagement, calling for diversification and urgent action to tackle the nation’s 28% unemployment rate.

Read more here Bloomberg.

Tech & Society in Africa

Glued to the Screen 

• Weird fact: The world spends 720 billion minutes per day on social media platforms. 

• As of January 2024, internet users in Kenya lead the way, spending an average of three hours and 43 minutes each day on social media. 

• South Africa follows closely with an average of three hours and 41 minutes per user. 

• In contrast, internet users in Japan spend only 53 minutes per day on social platforms (Data Reportal).

VISA Investing in Africa 

• EFT Corporation (EFTCorp) and Visa have announced a five-year partnership to enhance financial inclusion and introduce advanced payment solutions across Africa (TechTrendsKE).

• This collaboration invites African fintechs to join a program leveraging EFTCorp’s platform to scale operations and drive innovation.

• Visa has committed to investing $1B in Africa to accelerate digital transformation, with this partnership being a significant step towards that goal.

• Africa has become a battleground market for the world's major credit cards, as Visa intensifies its investment through partnerships and accelerator programs while American Express targets opportunities to expand card adoption in the cash-dominated landscape. Read more in the previous Africa Brief.

Climate in Africa

Africa Leads Global Blended Finance for Climate

• Africa is advancing in climate finance, as noted in Convergence’s 2024 State of Blended Finance: Climate Edition. 

• Sub-Saharan Africa attracted 41% of global climate-blended finance transactions from 2021 to 2023, underscoring its potential in sustainable agribusiness and renewable energy. 

• In 2023, global blended finance hit a record $18.3B—up 120% from previous years—with private sector contributions reaching $6B, highlighting blended finance as a key tool for mobilizing private investment in climate adaptation across Africa despite ongoing investment challenges.

Democracy in Africa

Wait! Integrity in Zimbabwe? 

• Zimbabwe’s President Emmerson Mnangagwa has declined an offer from the ruling Zimbabwe African National Union-Patriotic (ZANU) Front to extend his term by two years to 2030. 

• With unanimous support from all 10 provinces, party members advocated for the extension, praising Mnangagwa’s achievements in infrastructure projects like roads and dams. 

• However, Mnangagwa emphasized his commitment to party rules and term limits, stating that he will step down in 2028 as scheduled, cautioning that extending his tenure could undermine the party’s integrity and the country’s future stability (Bloomberg).

Europe in Africa

France Backs Morocco on Western Sahara

• During his visit to Morocco’s parliament this week, French President Emmanuel Macron voiced strong support for Moroccan sovereignty over Western Sahara and pledged investments in the region—a notable shift that now aligns France with the U.S. and Spain. 

• Macron’s visit aims to mend Franco-Moroccan relations strained by past espionage allegations and stricter visa policies. 

• Macron’s statements, however, have incited sharp reactions from Algeria and the Algerian-backed Polisario Front, which continues to advocate for Sahrawi independence, criticizing Macron’s support for what they view as Moroccan occupation. 

• For more, see BBC’s profile on Western Sahara.

U.S. in Africa 

The U.S. Ramps Up Competition with China in Africa

• The White House is countering China's presence in Africa to secure crucial supply chains, including ones related to minerals required for the energy transition. 

• The Special Presidential Coordinator for Global Infrastructure and Energy Security, Amos Hochstein, admitted that China had a headstart over the U.S. in many developing countries due to its Belt and Road Initiative (BRI). 

• The U.S. is keen on mobilizing funds from private investors and multilateral institutions for "bankable", commercially viable, big-ticket projects with the potential for significant impact on local economies. 

• The Lobito Corridor project in Angola is at the heart of this strategy and is at the heart of President Joe Biden's planned visit to Angola in December 2024. The U.S. has mobilized more than $4B from various sources for the project since its initial $250M commitment 18 months ago (Semafor).

• The Lobito Corridor, launched under the G7 Partnership for Global Infrastructure and Investment, aims to unlock regional potential, enhance export opportunities for Angola, DRC and Zambia and create value and jobs through investments and soft measures.

China in Africa

China’s Footprint in Africa

• In 2022, China became Africa’s largest bilateral creditor, holding more than 15% of the continent’s external debt, largely funding critical infrastructure projects in nations like Angola, Ethiopia, Kenya and Nigeria. 

• Major developments, such as the Addis Ababa-Djibouti Railway and the Mombasa-Nairobi Standard Gauge Railway, have transformed regional trade and mobility. 

• While these investments are positioned as catalysts for Africa’s economic growth, they also spark debates on debt sustainability, with critics cautioning against potential debt traps and rising Chinese influence, countered by proponents who argue that this financing is essential for the continent’s development. Read more here.

Sports in Africa 

“Ali Boma ye!”

Fifty years after the "Rumble in the Jungle," Kinshasa is celebrating Muhammad Ali’s legendary victory over George Foreman, a moment that inspired Congo’s boxing culture and remains a defining symbol of pride. 

• Despite political turmoil and poverty, the fight's legacy lives on, with young boxers still training at the stadium where Ali made history. 

• As Congolese boxing champions like Martin Bakole rise, the spirit of "Ali Boma Ye" ("Ali kill him" in Lingala) endures, marking Congo as a country of boxing talent. 

• This article from NPR is worth a read! 

Explorations in Africa

Ratting Out Poachers

• According to the FT this week, African giant pouched rats are being deployed to sniff out smuggled rhino horns, pangolin scales and other contraband. 

• Trained by the Tanzanian NGO Apopo, these agile rodents are as effective as sniffer dogs (and cheaper?), detecting concealed wildlife products even when masked by strong odors like coffee or washing powder. 

• Outfitted with custom vests (and leashes?), they alert handlers by pulling a ball.

• Costing a fraction of high-tech X-ray and CT machines, these clever creatures can navigate the tight spaces of shipping containers, offering law enforcement a critical, cost-effective tool to outsmart increasingly sophisticated trafficking networks.

Happy Halloween to those across the continent with children insisting on celebrating! 

Africa Trivia Answer

Correct Answer: Morocco

The U.S. Embassy in Morocco notes that Morocco recognized U.S. independence in 1777, making it the first country in the world to do so. 

P.S. We hope you enjoyed the Brief! Reach out if you have ideas or feedback ([email protected]) or want to chat. See you next week!