Thursday’s African Short News Roundup

Recent developments across Africa highlight a vibrant mix of innovation, strategic growth, and international relations.

Nigerian startup Waza recently secured significant funding to transform B2B payments, boosting trade finance across the continent.

Meanwhile, Ethiopia and Australia are enhancing economic ties with a focus on mining and renewable energy.

However, tensions are rising between Somalia and Ethiopia over aviation rights, and Mozambique faces a decline in graphite production amid increasing debt concerns.

Additionally, Oando PLC’s acquisition of the Nigerian Agip Oil Company signals a major shift in the oil industry, potentially doubling its resources.

These (and more further down) events collectively illustrate the ongoing interplay of growth, conflict, and sustainability shaping Africa’s economic and environmental future.

1. Nigerian Startup Waza Secures $8 Million for B2B Payments Expansion:

Waza, a Nigerian-based B2B payment platform, has raised $8 million in combined equity and debt funding to enhance trade finance solutions and expand its market reach.

This round comprises $3 million in equity from investors such as Y Combinator, Byld Ventures, and several others, plus $5 million in debt from Timon Capital.

The funds will support new initiatives beyond its existing markets in Ghana and Nigeria. Waza, established by Maxwell Obi and Emmanuel Igbodudu, seeks to revolutionize B2B payments and liquidity for businesses across Africa.

Since launching in stealth mode in early 2023, the company has processed over $700 million annually and reported a consistent 20% growth in monthly transactions.

2. Ethiopia and Australia Discuss Strengthening Economic Links:

Ethiopia and Australia are engaging in discussions aimed at strengthening their economic partnership, particularly in mining and green energy.

This dialogue was part of a productive phone conversation between Ethiopia’s State Minister of Foreign Affairs, Mesganu Arga, and Australia’s Assistant Foreign Minister, Tim Watts.

Both officials committed to enhancing bilateral economic ties, influenced by Ethiopia’s recent economic reforms designed to attract more investments.

They also discussed Ethiopia’s participation in the upcoming Africa Down Under Conference in September 2024. The conference aims to spotlight investment opportunities in Ethiopia, fostering deeper economic engagement between the two nations.

3. Somalia Considers Suspending Ethiopian Airlines Flights:

In a recent development, Somalia has issued a threat to suspend the operations of Ethiopian Airlines across its territory.

This follows a controversial deal in January granting Ethiopia access to 20 km of Somaliland coastline for 50 years in return for recognizing Somaliland.

The agreement has not yet been confirmed by Addis Ababa but has already heightened tensions between Somalia and Ethiopia.

Somalia’s Civil Aviation Authority has expressed concerns about the airline’s operational management concerning flights to Somalia, compounding the existing diplomatic strain.

In response, Ethiopian Airlines has started using only airport codes instead of city names for destinations in Somalia.

4. Graphite Production Drops by 40% in Mozambique:

Mozambique has reported a 40% decline in graphite production in the first half of 2024, due to disruptions at two major mines, reflecting broader challenges in the global market characterized by reduced demand and fluctuating prices.

The production downturn contrasts with the successful export milestone achieved by the Balama Graphite Mine, which exported 10,000 metric tons to an Indonesian battery manufacturer, marking a significant shift in the mine’s operational focus.

Despite current setbacks, the Mozambican government remains optimistic about a significant recovery in graphite production levels by year-end, underpinned by the ongoing strategic export initiatives.

5. Mozambique’s Domestic Debt Rises 17% in the First Half of 2024:

Mozambique’s internal debt escalated by 17% in the first half of 2024, reaching nearly €5.2 billion. This increase primarily resulted from new issuances of Treasury bills and bonds, aimed at financing government initiatives and servicing existing obligations.

The country also engaged in substantial debt repayments during this period, reflecting its efforts to manage fiscal pressures effectively.

The International Monetary Fund (IMF) has highlighted concerns regarding Mozambique’s reliance on short-term debt, which could heighten refinancing risks.

These developments underscore the challenges and strategies involved in managing public finance in a developing economy.

6. Oando PLC Acquires Nigerian Agip Oil Company for $783 Million:

Nigerian energy major Oando PLC has solidified its position in the oil sector by acquiring the Nigerian Agip Oil Company (NAOC) from Italian multinational Eni for $783 million.

This acquisition doubles Oando’s stakes in key oil fields, significantly boosting its reserves from 505.6 million barrels to nearly 1 billion barrels of oil equivalent.

The deal also promises to enhance cash flows and underpin Oando’s strategic expansion plans within and beyond the oil sector.

Looking ahead, Oando plans to explore further diversification opportunities, particularly in clean energy and infrastructure, aligning with broader national goals to increase energy production and ensure sustainable development.

7. Angola: Illegal Gold Mining Crackdown in Cabinda Province

In a recent operation in Cabinda Province, Angola, the National Police detained 34 individuals, both national and foreign, accused of illegal gold mining.

This enforcement action took place along the Luetchi, Nzimuni, and Ndilu rivers in Penicacata village. The operation led to the seizure of 34 shovels, an electric pump, hoses, two sieves, 20 basins, two pickaxes, and a hoe.

These individuals and the confiscated equipment were subsequently handed over to the Public Prosecutor’s Office in Buco-Zau for further legal proceedings.

This operation is part of ongoing efforts to combat the illicit exploitation of strategic minerals in Angola.

8. Rwanda’s Robust Coffee Exports

Over the past six years, Rwanda’s coffee exports have significantly contributed to the national economy, generating over $452 million from the sale of more than 113,000 metric tons of coffee.

This achievement aligns with the launch of a nationwide campaign by the National Agricultural Export Development Board (NAEB) aimed at rejuvenating aged coffee plantations to boost productivity.

The campaign involves districts in both the Western and Southern Provinces and reflects broader efforts to elevate coffee quality and market reach.

Increased global coffee prices and heightened international recognition of Rwandan coffee have spurred this growth, enhancing the livelihoods of local farmers and reinforcing the coffee sector’s role in Rwanda’s economic expansion.

9. Ethiopia: Tensions with Somalia Over Military Presence Demand

During recent talks in Ankara, Somali Foreign Minister Ahmed MoFiqi expressed strong opposition to Ethiopia‘s demand for a military presence in Somalia, attributing the failure of the negotiations to this issue.

MoFiqi emphasized that the sacrifices made by AU forces, including Ethiopians, do not justify Ethiopia’s territorial or maritime ambitions.

He clarified that the composition of the new AU Support and Stabilization Mission in Somalia (AUSSOM), which will replace ATMIS in 2025, should be decided by Somalia to ensure respect for its sovereignty.

Meanwhile, Ethiopia remains cautious about its role in AUSSOM, considering regional and international dynamics, as the mission’s structure and mandate continue to be debated.

10. Botswana Discovers Monumental Diamond

The Lucara Diamond Corporation in Botswana has unearthed one of the largest rough diamonds ever recorded, weighing 2,492 carats. Found at the Karowe Diamond Mine, this discovery is second only to the Cullinan diamond found in 1905.

Utilizing advanced X-ray technology, this find highlights the mine’s potential and the effectiveness of modern recovery techniques, which play a crucial role in preserving the diamond’s integrity and value.

This landmark discovery underscores Botswana’s prominence in the diamond mining industry and continues a trend of significant diamond finds in the region.

11. Sudan: Temporary Resumption of Aid Deliveries to Darfur

Following a temporary lift of a delivery ban by the Sudanese army, a limited number of aid trucks have resumed entering the Darfur region through the Adre border crossing from Chad.

This area, critical for aid delivery, had been previously restricted due to concerns over arms smuggling. The recent movement of 15 trucks marks a significant, albeit limited, resumption of aid to one of the regions most at risk of famine in Sudan.

Despite the partial lifting of the ban, substantial challenges remain, as millions in Darfur continue to face severe food insecurity.

The situation is further complicated by ongoing conflicts and the need for stringent monitoring by Sudanese authorities at border crossings.

12. Uganda Expands Oil Import Routes

Uganda is diversifying its oil import strategies by utilizing ports in Mombasa and Dar es Salaam to better meet national demand and avoid past issues with supply shortages.

This strategic decision follows recent difficulties in meeting oil import quotas through Kenya, prompting Uganda to increase imports through Tanzania despite higher costs.

The Uganda National Oil Corporation (UNOC) emphasizes this approach as essential for maintaining sufficient monthly oil reserves to support the country’s growing daily consumption needs.

13. Ghana is set to launch Starlink Internet Services.

The National Communications Authority (NCA) of Ghana has completed all necessary licensing and administrative procedures, paving the way for the launch of Starlink‘s high-speed internet services by the end of August 2024.

This initiative by SpaceX aims to enhance Ghana’s connectivity capabilities, offering speeds surpassing those of traditional satellite services.

The impending launch follows efforts to curb a black market that had emerged, allowing users to bypass local restrictions and access Starlink’s global roaming services illegally.

14. Mali’s Agricultural Census Records Significant Growth

Mali’s General Agricultural Census (RGA) has made significant progress, registering 83,092 family farms and 40 agricultural enterprises, covering over 272,105 hectares.

Launched in May 2024, this initiative aims to provide a detailed overview of Mali’s agricultural sector, supporting planning and development strategies.

The census highlights the dynamic nature of agriculture in Mali and the government’s commitment to enhancing sectoral productivity and sustainability.