Wednesday’s African Short News Roundup

Recent developments across Africa highlight significant economic, political, and humanitarian changes.

Inflation in the West African Economic and Monetary Union (WAEMU) surged to 4.1% in Q2 2024, driven by rising food prices and geopolitical tensions.

Ethiopian Airlines expanded its African network by opening a new route to Port Sudan. Nigeria’s first-ever domestic dollar bond raised $900 million, showing strong investor confidence.

Rwanda seeks $1.7 billion in agricultural investments to boost food security while Egypt’s inflation rose to 26.2% after fuel subsidy cuts.

In Guinea-Bissau, analysts are reacting to President Embaló’s announcement to not seek re-election. Kenya’s air traffic was paralyzed by a strike at Nairobi’s airport over expansion plans, while Ethiopia and Italy are deepening trade relations.

Meanwhile, the U.S. pledged $100 million in food aid to South Sudan, and Nigeria faces a humanitarian crisis after severe flooding caused by a dam collapse in Maiduguri.

West Africa: Inflation Returns in WAEMU

Inflation in the West African Economic and Monetary Union (WAEMU) rose to 4.1% in the second quarter of 2024.

This is up from 2.9% in the previous quarter, according to Jean-Claude Kassi Brou, Governor of the Central Bank of West African States (BCEAO).

This increase is driven primarily by rising food prices due to weak agricultural output and disrupted supply chains caused by insecurity in the region.

External factors, such as ongoing geopolitical tensions in the Middle East and Ukraine, have also contributed. Despite inflation, economic growth in WAEMU remained strong at 5.3% for the second quarter, with projections of 5.9% growth for 2024.

Credit growth in the region’s banking sector and improved trade balances have helped stabilize the economy.

Ethiopian Airlines Opens New Route to Port Sudan

Ethiopian Airlines has launched a new route connecting Addis Ababa to Port Sudan, with the inaugural flight scheduled for September 2024.

The move aims to enhance connectivity across Africa, boost regional growth, and support trade and tourism between Ethiopia and Sudan.

The new route, operated by Boeing 737 Max aircraft, will increase the airline’s African network to 66 destinations.

CEO Mesfin Tasew emphasized that this expansion is part of Ethiopian Airlines’ commitment to linking African markets and cultures, facilitating economic progress across the continent.

Nigeria’s Dollar Bond Oversubscribed by $900 Million

Nigeria’s first-ever domestic dollar bond has attracted $900 million in subscriptions, surpassing its $500 million target.

The five-year bond, which carries a 9.75% interest rate, marks a significant step in the government’s efforts to diversify funding sources and promote financial stability.

Investors, both local and international, showed strong confidence in Nigeria’s economic prospects. This success is part of a larger $2 billion bond program, with proceeds allocated to critical economic sectors.

Nigeria’s federal government revenue reached N9.1 trillion in the first half of 2024, more than double the previous year’s figure, highlighting the country’s progress in financial management.

Rwanda Seeks $1.7 Billion Investment in Agriculture

At the 2024 Africa Food Systems Forum, Rwanda highlighted the need for $1.68 billion in agricultural investment to boost food security and economic growth.

The “Rwanda Legacy Program” aims to attract investment in key sectors like avocado and chili production, poultry, and beef, creating jobs for youth and women.

Rwanda seeks to expand avocado production from 2,230 metric tons in 2022 to 31,164 metric tons by 2029, requiring $143.5 million in investment.

The country also plans to increase chili exports by 500% over the next six years, with a $470 million investment in production and processing.

Rwanda’s agriculture sector contributed 27% to its GDP in 2023, and the government hopes to further enhance its role in food security and economic development.

Egypt: Inflation Rises After Fuel Subsidy Cuts

Egypt’s inflation rate rose to 26.2% in August 2024, up from 25.7% in July, after the government reduced fuel subsidies.

This increase ends a five-month period of declining inflation and complicates efforts to stabilize the economy. The cuts have led to higher transportation and food costs, with food prices rising 29% annually.

Despite a 40% currency devaluation earlier in the year, which helped secure a $57 billion bailout, the country now faces renewed inflationary pressures.

Economists expect the Central Bank of Egypt to maintain its interest rate at 27.25% until inflation begins to ease, likely in early 2025.

Guinea-Bissau: Analysts React to President’s Announcement

Political analysts in Guinea-Bissau are evaluating President Umaro Sissoco Embaló’s recent announcement that he will not seek a second term.

Some believe this decision is not final, while others argue that it reflects pressure from his family and political challenges.

Embaló’s presidency has been marked by efforts to destabilize opposition parties, a strategy that has not always succeeded. Despite his statement, many expect further developments before the 2025 presidential election.

Kenya: Air Traffic Paralyzed by Strike at Nairobi Airport

A strike by workers at Nairobi’s Jomo Kenyatta International Airport (JKIA) on September 11, 2024, disrupted air traffic.

The employees are protesting the government’s decision to allow an Indian company, Adani Group, to expand the airport in exchange for a 30-year management contract.

The strike followed failed negotiations between workers and the government. Kenyan authorities defended the project, stating that it is necessary to modernize an airport operating beyond capacity.

A Kenyan court has temporarily halted the project for a judicial review. The strike threatens to impact Kenya’s growing aviation sector, which saw a 19.2% increase in activity between 2022 and 2023.

Ethiopia and Italy Strengthen Trade and Investment Relations

Ethiopia and Italy are deepening their bilateral ties with a focus on trade and investment. Recent discussions between Ethiopian and Italian officials emphasized the importance of expanding economic cooperation.

Italy’s involvement in Ethiopia is seen as a catalyst for attracting more foreign investment, not only into Ethiopia but potentially other African nations.

This partnership aligns with Ethiopia’s strategy to boost economic growth and enhance regional stability.

The collaboration aims to enhance trade infrastructure and promote peace by tackling key issues like unemployment.

Italy’s engagement with Ethiopia could serve as a model for similar partnerships between African and European countries, promoting long-term development.

South Sudan: U.S. Announces $100 Million in Additional Food Aid

The U.S. Agency for International Development (USAID) has pledged an additional $100 million in food aid to South Sudan.

Sonali Korde, USAID’s Assistant Administrator for Humanitarian Assistance, made this announcement during her visit to the country. Her visit took place from September 9 to 11, 2024.

The aid will deliver around 42,000 metric tons of food to nearly one million people suffering from severe food insecurity.

This additional funding brings U.S. humanitarian support to South Sudan to approximately $609 million for fiscal year 2024.

The partnership with the U.S. Department of Agriculture will help address the pressing needs of those in crisis.

Korde emphasized the importance of the South Sudanese government using public revenues for humanitarian relief.

She also urged improved security for aid workers, highlighting that South Sudan remains one of the most dangerous countries for them. The U.S. also commended peace talks in Nairobi, calling for further dialogue to consolidate these efforts.

Nigeria: Major Flooding Follows Dam Collapse

Heavy rains have caused a dam to collapse in Maiduguri, the capital of Borno State, Nigeria, leading to severe flooding. Homes, schools, and businesses were submerged, and the humanitarian situation is expected to worsen.

Videos shared by Nigeria’s National Emergency Management Agency (NEMA) show entire rows of houses underwater.

Maiduguri, which has been the center of a 14-year insurgency, is experiencing its worst flooding in 30 years.

The United Nations Refugee Agency (UNHCR) reported that several lives have been lost, although specific figures were not provided, and rescue operations are ongoing.

Since the start of Nigeria’s rainy season, at least 201 people have died, and more than 200,000 have been displaced.