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Africa's Week In Brief
Week of 19 - 23 June, 2023
Dear Friends,
I am excited to share that the Africa Brief is moving from Substack to Beehiiv â a platform which is more tuned to growing this network of Africa watchers (thanks to advice from International Intrigue and Tech Safari).
In similarly positive news, The Rest is Politics mentioned the Africa Brief in its show this week.
Thanks for your support and continued readership. Please share this newsletter far and wide.
- Joshua
Too Long; Didnât Read
Africa Energy Conference. The AEF kicked off in Nairobi on Tuesday as governments, banks, and energy companies discuss new gas deals to supply Europe following cuts to Russian hydrocarbons.
Equatorial Guinea. The worldâs longest serving president, Teodoro Obiang Nguema Mbasogo, (try 4 decades in power) heads to Russia (Foreign Policy).
Mali. The junta has given a 15,000 UN peacekeeping mission the boot asking them to "leave without delay". The Wagner Group now guarantees the country's security.
Mega-cities. Africa will be home to 31 cities with more than 5 million people within the next 20 years. This means more economic growth, demands for public services, and trade. Find out more in this weekâs graphic.
Namibia. Is shaping up as a green hydrogen powerhouse with more significant investments from European states.
Pan-African Payments. The African Export Import Bank is pursuing an integrated African payments network by the end of the year. Fintechs are licking their lips.
Peace Mission. South Africaâs President led a delegation to Ukraine and Russia on a peace mission. An ongoing question is whether South Africa will host President Putin in the country later this year for the BRICS Summit.
Yellow Raises. The solar energy and digital services company, Yellow, raises $14million. Cleantechs attracted $863M in equity or 18% of the total funding raised by African startups, according to the 2022 Partech Africa report.
Weekend fun facts: Lesotho has the highest lowest point of any country in the world and the highest pub in Africa.
Graphic of the Week
*Credit: McKinsey & Company
In context: By 2040, the continent will be home to 12 cities of more than ten million people each as ten more cities join Cairo and Lagos. Additionally, 19 cities will have populations between five million and ten million. 31 cities will be spread across the continent and split evenly among countries across all four clusters.
Business & Finance in Africa
Starting on the macroeconomic front this week, France hosts the New Global Financing Pact Summit. The Summit intends to build a new contract between the Global North and the South in facilitating access to financing between states. Some 13 African countries will attend the Summit.
The objectives of the Summit:
Increasing fiscal space and mobilizing liquidity.
Unlocking finance for the private sector in low-income countries.
Scaling up investment in green infrastructures.
Designing innovative financial solutions for climate vulnerability.
IMF Managing Director Kristalina Georgieva joined the chorus, calling for more action on debt relief for low- and middle-income countries hit by climate disasters, including âdebt for climate swaps,â ahead of the Paris Summit for a New Global Financing Pact (The Guardian).
Zambia reaches a deal on its debt with a $6.3 billion restructuring.
The African Union hosted the Pan-African Network Conference on Fighting Illicit Financial Flows. The Mo Ibrahim Foundation estimates that some $88.6 billion leaves the continent annually as illicit capital ďŹight - more than the $83.0 billion received in FDI inďŹows in 2021.
The African Export-Import Bank (Afreximbank) expects anywhere between 15 to 20 countries to have joined the Pan-African Payment and Settlement System (PAPSS) by the end of the year â according to Afreximbank President Benedict Oramah. The system is using dollar exchange rates for now, said Oramah, whose bank funds the system. Initiatives like PAPSS and the African Continental Free Trade Agreement (the worldâs largest free trade zone by area) seek to boost intra-Africa trade by reducing barriers.
*Credit: PAPSS
In Nairobi, Africaâs business elite are striking new export deals for natural gas and metals to drive the energy transition. Advances in green hydrogen are also grabbing some attention, especially in Namibia (see Climate in Africa). Despite this deal making, some 600 million Africans are without electricity, a typical person on the continent uses less electricity than an American fridge. Africa is home to 18% of humanity, yet receives less than 5% of global energy investment.
*Credit: The Economist
China in Africa
China is Africaâs largest trading partner, hitting $2trillion in trade last year. Last weekend ambassadors from across the continent visited companies in the Chinese city of Shenzhen to discover opportunities in telecommunications, AI, and healthcare (CGTN). African states have entered into multiyear contracts with Huawei for its telco and smart city services.
Climate in Africa
The Conversation picks up on our graphic of the week, asking how Africaâs cities will manage climate change. Earlier this year Malawi, Mozambique, and Madagascar were hammered by Cyclone Freddy â an extreme weather event that laid bare the absence of climate mitigation infrastructure. Local authorities then have two major challenges; establishing public infrastructure and planning for new climate risks. For expenditure on climate mitigation, should it be African states that pick up the bill or those historic polluters?
The Netherlands and Namibia will work together on a green hydrogen-focused sovereign wealth fund. Namibia has become a leader in green technology, and announced plans in 2021 to build a $10B green hydrogen plant.
Will Africa become the new green hydrogen âEl Doradoâ? *Credit: S&P
Democracy in Africa
The Sahelian state of Mali on Sunday held a referendum on a new Constitution that would, in theory, start the process of returning the country to democratic civilian rule (BBC). International Intrigue writes that the referendum follows a slew of coups and a military junta that has huddled up with the Wagner Group as a key security partner â which is also very popular with the public. Such is the relationship between Wagner and the Malian government that the country revoked a decade-long peacekeeping mission in the country.
A new survey from Afrobarometer has found a growing majority of South Africans (72%) would be willing to forgo elections in favor of an unelected but efficient government that delivers security, jobs and housing. South Africa heads to the polls in 2024 for an election which may see the ruling African National Congress lose its majority.
Sierra Leone will hold elections on Saturday, rising costs have created an opening for the west African nationâs opposition politicians. âWeâre sufferingâ is the message from the people which Sierra Leoneâs opposition hopes to tap into.
*Credit: Financial Times
Health in Africa
If youâre in the United States or United Kingdom and have received healthcare, you are likely to have been treated by an African doctor or nurse. Mass emigration is leaving huge gaps in Africaâs healthcare system (Devex). As an example, Mary Wairimu earned the local equivalent of about $322 a month as a highly skilled pediatric nurse at a top Nairobi hospital (with an increase in salary of just $36 over 6 years). Having left for the United Kingdom, she makes $33 per hour.
The loss of healthcare professionals is a huge loss to the continent. The region has 1.55 health workers per 1,000 people that's far below the 4.45 per 1,000 the WHO says is needed.
Peace and Security in Africa
Before we head to the major story of the week, i.e. the peace mission to Ukraine and Russia, here are some other stories making the news.
The New York Times reports on a horrific attack last Friday night on a private boarding school compound near Ugandaâs border with the Democratic Republic of Congo which left 37 of the schoolâs 63 students dead, raising fears of resurgent militant activity in a historically restive region. It was the deadliest terrorist act in Uganda in years.
A new ceasefire in Sudan is expected to last until Wednesday, allowing delivery of humanitarian aid nationwide as an upcoming summit in Geneva aims to raise $3 billion for the conflict-affected country (DW).
These developments were offset by the news that the Darfur governor was killed. Security analysts are sounding the alarm at incidents of ethnically targeted killings and widespread sexual violence being carried out in West Darfur state by the paramilitary Rapid Support Forces.
Russia and Ukraine Peace Mission
President Cyril Ramaphosa led an African heads of state delegation from Zambia, Senegal and Comoros, Egyptâs prime minister, and envoys from the Republic of Congo and Uganda. The leaders met with both Putin and Zelensky.
The best way to relay this story is to share some choice quotes from the trip:
Senegalese President Macky Sall: âWe do understand, Mr. Zelensky, your position because your country is occupied, and for you, military action is a way out of the situation. But we are thinking that when youâre fighting, you still probably need to have place for a dialogue.â
President Ramaphosa: "We recognise the sovereignty of other nations in terms of the UN Charter and, yes, in terms of that charter, we believe that should work in terms of internationally recognised principles. It is for that reason that weâd like to submit that we recognise the sovereignty of countries in terms of that charter."
Ramaphosa also said Africa would like to see the release of prisoners of war on both sides. There should also be post-war reconstruction and, lastly, weâd like to see further engagements with regards to processes that will lead to the end of this war.
Ramaphosa called for both parties to return their prisoners of war, and said children removed by Russia should be returned home.
For the history of Russian-African relations consider the special briefing of March, 2023. I will resend this briefing on Monday.
Meanwhile, the longest serving president of any country ever, Equatorial Guineaâs president, Teodoro Obiang Nguema Mbasogo will visit Russia this week.
Tech and Society in Africa
Consistent with our stories on energy markets, TechCrunch reports on Yellow, an asset financier for solar energy and digital devices in Africa, having raised $14 million in series B funding. Yellow was founded and launched in Malawi in 2018 to initially bring solar energy to the country. The company has since grown its footprint across Africa and increased its product offering to include electronics.
The main offering is the startupâs âsmall home solar systemâ, comprising a 6W-10W panel, 20-50Wh battery, 4 lights, cell phone charger and radio. It also sells solar systems with bigger capacities, and smartphones. For the small and large solar home systems, users pay a deposit of $10, and $68 respectively, and remit the balance through monthly payments spread over six and 24 months.
US in Africa
South Africaâs News24 reports that US President Joe Bidenâs special assistant and senior director for African Affairs at the National Security Council, Judd Devermont, has echoed Democratic and Republican legislatorsâ concerns over SAâs âpotential security partnership with Russia.â A bipartisan group of US lawmakers have asked the Biden administration to punish South Africa for its support of Russia, according to a letter published in the New York Times.
The lawmakers said South Africaâs joint military exercises with Russia and China, the planned hosting of the BRICS summit, and alleged shipment of weapons to Moscow via a US-sanctioned ship all called into question the countryâs eligibility to receive preferential trade benefits under the African Growth and Opportunity Act (AGOA). However, as Foreign Policy writes, ostracizing South Africa could continue to chip away at the little US influence across the region.
Meanwhile, ActionSA has written to the US Ambassador to SA, Reuben Brigety, to ask that he requests the Biden administration to delay taking any action around removing SAâs beneficial status under AGOA until after the 2024 national elections âwhen the ANC will be removedâ (PoliticsWeb).
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