Africa's Week In Brief
Week of 5 - 9 June, 2023
Dear Africa Brief,
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w/o 5 June - 9 June 2023
TL;DR
BRIMCS? South Africa is considering moving the August BRICS summit to Mozambique in a bid to ease diplomatic pressures (Foreign Policy).
Critical minerals. The Democratic Republic of the Congo becomes the world’s 2nd largest copper exporter overtaking Peru. This should be of no surprise considering Congo has the world’s largest deposits of cobalt, a mineral which is a byproduct of copper and nickel mining (S&P Global).
Geopolitics. The BRICS Bank, a DFI for emerging economies, welcomed Egypt, Uruguay and the UAE as its newest members.
Gigawatts. Morocco and Gotion High-Tech a China-based company specializing in batteries for electric vehicles, signed an MoU to establish the first electric vehicle battery plant in Africa, with a potential production capacity of 100 gigawatts.
Health. Helium Health raises $30million in Series B funding. The African startup provides software-as-a-service tools, financing and insights for healthcare providers and public health organizations. While welcomed, this sum is a tiny fraction of the health-related impact investment market ($1.2 trillion).
Senegal’s democracy. Democracy continues to waiver as at least 23 people have been killed after police clashed with supporters of opposition leader Ousmane Sonko.
Sudan. Ceasefire talks remain stop-start as the warring generals continue discussions in Saudi Arabia. 370,000 people have fled Darfur in the past seven weeks, seeking refuge in neighboring countries.
Graphic of the Week
*Credit: McKinsey & Company
In Context: As of 2019, 13 countries, mostly in East and West Africa, accounted for 41% of Africa’s population and 21% of its GDP. Key drivers for this growth include; above-average urbanization, increased levels of capital investment, more exports, and steady growth in per capita consumption — 3% annually on average (McKinsey & Company).
Art in Africa
The Benin Bronzes are a symbol for the repatriation of African art. However, the New York Times reports that repatriation plans have run aground after the departing Nigerian president moved to pass them into private hands (NYT).
In more upbeat news, the African Union is moving forward on its temporary site for the Great Museum of Africa in Algiers, Algeria. The museum is intended to preserve the continent’s cultural heritage.
Business and Finance Africa
New economic data this week reveals that South Africa is again on the brink of recession with 0.4% growth (Bloomberg). Rolling nationwide power outages continue to hamstring the economy. Eskom, the state electricity provider, will extend power cuts to previously unseen levels as the country enters winter. As the Economist reflects, South Africa has huge potential. It remains unfulfilled.
Staying in South Africa, International Relations & Co-operation Minister Naledi Pandor announced that the BRICS Bank has welcomed Egypt, Uruguay and the UAE as its newest members. The three members joined after the ratification process to join the bank was finalized (IOL). South Africa is also considering moving the BRICS Summit to Mozambique or China to ease diplomatic pressures. Former South African President Thabo Mbeki said that the summit was unlikely to take place in South Africa; “Because of our legal obligations, we have to arrest President Putin, but we can’t do that” (Reuters).
Neighboring South Africa, Namibia is debating taking minority stakes in mining and petroleum production companies amid increasing concerns over local ownership. Namibia is one of the world’s biggest producers of uranium. Mines & Energy Minister Tom Alweendo said: ‘We are making a case that local ownership must start with the state, which holds ownership of our natural resources" (News24).
Just next door The Economist writes that Botswana’s haggling with De Beers over a diamond deal risks the country’s immense potential.
*Credit: The Economist
Further north, the Congo has trumped Peru as the world’s 2nd largest copper exporter. The country is rich in high-grade minerals, especially those for the green energy transition. Most cobalt is produced as a byproduct of copper and nickel mining, and as most of the world’s cobalt mines are in the Congo, so the country's copper exports rise.
*Credit: Bloomberg
Cobalt is an essential mineral for the development of battery technologies. Morocco and Gotion High-Tech, a China-based company specializing in batteries for electric vehicles, signed an MoU to establish the first electric vehicle battery plant in Africa, with a potential production capacity of 100 gigawatts. The project is estimated to cost about $6.4 billion and aims to strengthen Morocco’s goal of being Africa’s leader in electric vehicle manufacturing and renewable energy (Bloomberg)
Moving away from metals and physical products, a Kenyan court has ordered the suspension of the mass sacking of scores of content moderators by a subcontractor, Sama, for Facebook's parent company Meta and directed the social media giant to provide counseling to the employees for their exposure to distressing content in the course of their duties (Fin24).
China in Africa
Chinese state broadcaster, GCTN reports on the renewed commitment between China and South Africa to further deepen their comprehensive strategic partnership.
Climate in Africa
The Economist details the impacts of cocoa farming. In Ivory Coast the county may have lost as much as 90% of its forest cover since 1950, and Ghana may have lost more than 65%.
*Credit: The Economist
Democracy in Africa
This week saw a number of developments across Africa’s democracies in three of its major regions.
Starting in West Africa, Senegal’s democracy continues to waiver as at least 23 people have been killed after police clashed with supporters of opposition leader Ousmane Sonko, who was sentenced to two years in prison for ‘corrupting youth’. Senegalese authorities also moved to ban social media from 2 June (BBC).
While in Nigeria, incoming President Bola Tinubu used his inaugural address this week to announce the end of a popular fuel subsidy, in an effort to repair Nigeria’s finances. The seemingly off-the-cuff comment resulted in long lines at gas stations across the country (The Times).
Elections in Guinea-Bissau’s were held more than a year after President Umaro Sissoco Embalo dissolved parliament (France24).
In central Africa, President Faustin-Archange Touadera of the Central African Republic (CAR) set a referendum on eliminating presidential term limits for 30 July. If successful, the change would allow him to serve indefinitely, a top priority for the ~2,000 Wagner mercenaries in CAR (Al Jazeera).
In Southern Africa, a representative from USAID reaffirmed the organization’s commitment to providing assistance to the people of Zimbabwe (VOA)
While Malawian authorities ended the corruption trial against former President Bakili Muluzi. BBC News reports that Muluzi served two five-year terms as President between 1994 and 2004 and was charged with abuse of $1.7m of public funds (BBC).
Health in Africa
A deterioration in public health services is just one of the casualties of the war in Sudan. This week a Sudanese doctor was apprehended by armed officers in Sudan after speaking out against the army’s diversion of a World Health Organization aid shipment intended for a hospital (The Guardian).
Peace and Security in Africa
The Horn of Africa. In conflicts around the world food is often used as a weapon of war. This week, the World Food Program’s Ethiopia’s country director and his deputy resigned before the result of an internal inquiry over allegations of food aid diversion could be made public (The New Humanitarian).
In Sudan, some 300 children were rescued from an orphanage after being trapped due to intense fighting. Tragically 71 orphans died (Washington Post).
US in Africa
At the 2022 US-Africa leaders summit, the Transform Health Fund was announced as the latest intervention designed to bridge market gaps as well as to finance the scaling of locally led health supply chain, digital, and care delivery solutions on the continent. Since its launch, the blended finance fund has raised $50 million and is officially open for business.
Thanks for supporting,
Joshua