Tuesday’s African Short News Roundup

Africa is a continent of dynamic change, with significant developments occurring across its diverse nations.

From economic reforms and political shifts to technological advancements and environmental challenges, the landscape is continually evolving.

This news roundup provides a snapshot of business, economic, and political news from Africa.

Rising Inflation in Angola as of July 2024

As of July 2024, Angola‘s inflation rate had escalated to 31.09%, reflecting an increase of 18.97 percentage points from the same month in the previous year.

Despite this annual rise, inflation showed a decelerating trend on a monthly basis for the third consecutive month, as per the National Institute of Statistics.

Notably, the “food and non-alcoholic beverages” category was the primary driver of this inflation surge, contributing an increase of 1.12 percentage points.

Other categories like “health” and “various goods and services” also experienced smaller increases. Historical data points to a significant inflation rate of 32.58% in May 2017, with an average rate of 32.25% spanning from 2001 to 2024.

The capital city, Luanda, recorded a year-over-year inflation rate of 42.19% with a monthly deceleration of 0.63 points, indicating some easing in price increases.

Major Mozambican Banks Report Profit Growth in Early 2024

The first half of 2024 saw a robust 9.5% growth in profits for Mozambique’s top five banks, accumulating to more than 12.433 billion meticais (around 179 million euros).

Standard Bank led this financial surge with a 3% increase in profits from the previous year, totaling 3.936 billion meticais.

Following closely were Banco Comercial e de Investimentos (BCI) and Millennium BIM, with BCI showing a 2.8% profit increase.

Notably, Absa Bank Mozambique’s profits more than doubled during this period, and Moza Banco rebounded impressively from its prior losses.

This financial performance highlights the banking sector’s resilience and strategic growth amidst Mozambique’s fluctuating economic landscape.

Significant Decline in Mozambique’s Cotton Export Revenue

In the first quarter of 2024, Mozambique experienced a significant 56% decrease in cotton export revenue, earning only 3.7 million dollars compared to 8.4 million dollars in the same period in 2023.

The decline was primarily due to a 1.4% drop in the global market price of cotton fiber, although there was a 36.2% increase in the volume of cotton exported.

In response to these challenges, the Mozambican government has implemented a subsidy of five meticais per kilogram to stabilize cotton prices and support the livelihoods of 600,000 local farmers.

This initiative aims to foster a sustainable agricultural sector and maintain the cultural significance of cotton farming in the economy.

Johannesburg’s New Mayoral Appointment and Coalition Dynamics

Following the resignation of Mayor Kabelo Gwamanda, Johannesburg is poised to appoint Dada Morero as the new mayor by the end of the week.

This transition comes amid strategic shifts within the ANC, which is now opting for a broad coalition encompassing various minor parties.

This coalition strategy, reflecting a move away from traditional governance models, aims to integrate a diverse political spectrum to stabilize city management.

However, the extensive coalition may exacerbate the patronage dynamics previously criticized in the ANC’s governance, potentially impacting service delivery and the party’s performance in the upcoming 2026 local government elections.

Tunisia Gets Major Funding for Entrepreneurship, Jobs

The African Development Bank (AfDB) has confirmed a €92.3 million package to support Tunisia’s business competitiveness and job creation program, CAP Emplois, commencing in November 2024.

This package includes a €90 million loan and a €2.3 million grant from the Women Entrepreneurs Finance Initiative, targeting the empowerment of women through entrepreneurship and skills development.

The program, spread over four years, aims to facilitate job creation, support new business initiatives, and formalize existing enterprises.

At least 50% of training beneficiaries will be women, aiming to significantly enhance economic inclusion and alleviate structural challenges hindering entrepreneurial growth.

Tanzania: Opposition Leaders Released After Assembly Clash

Tanzanian authorities released the leaders of the main opposition party, Chadema, following their detention aimed at preventing a planned assembly in Mbeya.

The leaders, including Chairman Freeman Mbowe and Vice-Chairman Tundu Lissu, were held to stop a parade marking International Youth Day, deemed an illegal assembly by police.

Despite the police’s intervention and subsequent release on bail, tensions remain high as local government elections approach, highlighting ongoing challenges in political freedom and civil engagement in Tanzania.

Senegal-Gambia: Talks to Ease the Border Crisis

Officials from Senegal and Gambia are engaged in discussions to resolve ongoing issues at their border, spurred by new tariffs and police harassment claims.

The talks aim to foster cooperation and ease tensions, which have seen transport disruptions due to a controversial tax on cross-border traffic.

This diplomatic engagement underscores efforts to strengthen bilateral relations and ensure smoother transit and trade between the two nations.

Zenith Bank Seeks Massive Capital for Expansion

Zenith Bank Plc is pursuing a capital raise of 290 billion Nigerian naira ($182 million) to bolster its international expansion efforts.

This initiative involves issuing new shares to existing shareholders and the public, aimed at financing growth in African markets and improving IT infrastructure.

The bank plans to use the capital to support operations in new regions, including a new branch in Paris, emphasizing its commitment to enhancing its market presence across Francophone Africa.

Ethiopia and Somalia Negotiate Port Access Agreement

Somalia and Ethiopia are engaged in talks, mediated by Turkey, to provide Ethiopia with access to a Somali port. In exchange, Ethiopia might reconsider its agreement with Somaliland.

These negotiations aim to ease regional tensions and promote economic cooperation while respecting sovereignty and international laws.

The potential agreement underscores the strategic economic and diplomatic engagements reshaping relationships in the Horn of Africa.

SADC Proposes Regional Development Fund

The Southern African Development Community (SADC), with support from the African Development Bank, is exploring mechanisms to finance regional programs.

A proposal for a Regional Development Fund aims to secure locally sourced funds for SADC projects, addressing challenges in ratifying the operational agreement.

The initiative reflects SADC’s commitment to enhancing regional cooperation and development through structured financial strategies.

Burkina Faso Announces Major Military Recruitment

Burkina Faso’s government has launched an extensive recruitment drive for its national armed forces, aiming to enlist over 12,000 personnel.

This initiative targets volunteers, widows, and orphans of national defense forces, highlighting efforts to bolster military capacity amidst ongoing security challenges.

The recruitment is part of broader measures to ensure comprehensive national coverage and enhance defense capabilities.

Sudan: Geneva Peace Talks at Risk Amid Khartoum’s Stance

The Sudanese peace talks scheduled in Geneva face serious obstacles as Khartoum imposes stringent preconditions. Since April 2023, conflict between General Abdel Fattah al-Burhan’s army and the paramilitary RSF has necessitated negotiations.

Despite failed preliminary talks in Jeddah due to the U.S.’s inability to enforce prior agreements, the U.S. plans to proceed without Sudanese representatives. The talks aim to halt hostilities and protect civilians but lack political dialogue.

Additionally, Khartoum opposes the UAE‘s observer role, complicating the situation further by disagreeing with U.S. strategies to secure peace.

Angola: Okavango Region Elevates Ecotourism Potential

The Okavango Raid is scheduled for September 20–26 and aims to showcase Angola’s ecotourism opportunities.

The event will start in Huambo and travel to Cuando, Cubango Province, with camping at various locations along the way.

Participants will return through Namibia. Rui Lisboa, CEO of ANAGERO, mentioned that the event could attract over 150 tourists and offers three price packages.

Despite the region’s rich wildlife and historical significance, poor accommodation facilities have prompted a focus on adventure tourism.

Significant investments are underway to improve infrastructure, with over $120 million committed to developing tourism, aiming to establish the Okavango Raid as an annual event enhancing regional tourist routes.

Africa’s CDC’s Declaration of Mpox as a Public Health Emergency

The Africa CDC has officially declared Mpox a public health emergency, citing over 38,465 cases and 1,456 deaths across the continent since January 2022.

This declaration underscores a critical turning point in the regional health management strategy, shifting from a reactive to a proactive stance in disease control.

The Africa CDC emphasizes the necessity for immediate action and enhanced cooperation among global health bodies to tackle the outbreak effectively.

The challenges highlighted include security issues in affected areas, limited global focus on the disease, and a severe shortage of vaccines, which are crucial for preventing further spread.

Impact of Severe Flooding in West and Central Africa

The early months of the 2024 rainy season have brought devastating floods to several countries in West and Central Africa, affecting over 700,000 people.

The United Nations has urgently called for increased investment in disaster preparedness and response to mitigate the severe impacts on affected populations.

The flooding has resulted in significant loss of life, extensive damage to homes, schools, and medical facilities, and has severely disrupted agricultural activities, leading to heightened food insecurity.

The situation demands immediate and strategic responses to ensure community resilience and the well-being of the millions affected by these annual climate events.

Zambia and DRC Resolve Trade Dispute

Zambia recently decided to reopen its border with the Democratic Republic of the Congo (DRC) after a brief closure due to a trade dispute concerning the import and export regulations affecting both nations.

The closure highlighted the critical economic interdependencies between Zambia and the DRC, especially regarding the mineral export routes vital for the DRC’s economy.

The resolution, facilitated through discussions between commerce officials from both countries, aims to restore the free movement of goods and people, essential for economic stability and regional cooperation in southern Africa.

Sudan’s Agricultural Optimism Despite Challenges

In Eastern Sudan, the agricultural community, particularly in the New Halfa Agricultural Project, anticipates a promising harvest following improved rainfall and increased international support.

This optimism comes despite the broader challenges faced by Sudan, including a prolonged civil conflict that disrupts food security and economic stability.

The project benefits from international aid, which enhances its agricultural productivity, particularly in cultivating staple crops like peanuts and sorghum.

However, issues with water management and financial support from local banks remain significant challenges, underscoring the need for continued aid and effective agricultural policies.

South Sudan at a Pivotal Point

Thirteen years post-independence, South Sudan encounters severe humanitarian challenges impacting its stability and progress.

Currently, over half of its 12.4 million population faces intense food shortages, while a significant number lacks basic healthcare and electricity.

The majority of the population, 75%, are youth, whose potential is crucial for national development, yet they require substantial support and opportunities.

Moreover, women and girls endure disproportionate hardships, further complicated by gender-based violence and restricted access to education and healthcare.

As South Sudan develops its constitutional framework and nears upcoming elections, its future will significantly depend on these developments.

Enhancing institutions, promoting stability, and empowering the disenfranchised are vital. This moment isn’t merely about overcoming a crisis but about foundational changes for a stable, prosperous future.