OVERVIEW
Recent developments in Africa highlight significant strides in infrastructure, international diplomacy, and economic reforms. Key events include major investments by the New Development Bank, financial agreements by IMF, humanitarian projects in the DRC, diplomatic mediation in East Africa, and strengthening India-Africa engagement.
There were efforts to assist Africa in infrastructural development, especially in the sector of water scarcity, and extended credit facilities. The New Development Bank approved a $1 billion loan for water and sanitation projects in South Africa, targeting underprivileged communities. Frontier SA, a subsidiary of ERG Africa, completed the handover of 30 solar-powered boreholes to six communities in DRC. This initiative addresses long-term water scarcity and commitment to local development. IMF approves US$7.3 Million disbursement for Guinea-Bissau supporting governance, anti-corruption measures, and economic stability. IMF also reached an agreement with Liberia on $209 Million extended credit facility to support the reform agenda proposed by the new administration.
Turmoil in certain regions of Africa continued as, the UN Security Council condemned a terrorist attack by Jama’at Nusrat al-Islam wal Muslimin in Burkina Faso, urging justice and cooperation to counter terrorism. Meanwhile, diplomatic negotiations between Ethiopia and Somalia have progressed with Turkey's mediation following a dispute over Ethiopia's potential naval base in Somaliland. Whereas, Denmark announced a new policy to boost African student exchange programs and a plan to close its embassies in Mali and Burkina Faso while opening new missions in Rwanda, Senegal, and Tunisia.
Further, Africa experienced political developments in Tunisia and Ghana in the due course of elections. In Tunisia, the Administrative Court reinstated several candidates, including former minister Mondher Znaidi, into the upcoming presidential race, intensifying competition against incumbent President Kais Saied. Whereas, in Ghana, major presidential contenders John Dramani Mahama and Mahamudu Bawumia unveiled their manifestos ahead of the December election, focusing on economic reforms amid ongoing fiscal challenges.
India-Africa engagements seek to attain new avenues as India hosted the 19th CII India-Africa Business Conclave. The conclave underscored the deepening India-Africa partnership, focusing on clean technology, agriculture, maritime security, connectivity, and the green economy. Also, there were aims towards doubling the India-Africa trade to USD 200 billion over the next seven years. The India-Africa partnership shall seek to promote global peace and harmony.
AFRICA
New Development Bank Approves $1 Billion for South African Water Projects and $150 Million for LNG Carriers in China
On August 31, 2024, the New Development Bank has approved a $1 billion loan for water and sanitation projects targeting poorer households in South Africa, to be used through the Municipal Infrastructure Grant for improving basic services. Additionally, the bank sanctioned a $150 million loan in renminbi to China's Bank of Communications Financial Leasing for acquiring LNG carriers. This loan aims to address China's growing LNG demand and supply gap by financing at least three carriers. Click here to read...
Frontier SA Handover 30 Solar-Powered Boreholes to Enhance Water Access in DRC Communities
Frontier SA, subsidiary of the ERG Africa, marked the handover of 30 solar-powered boreholes to six communities in Sakania, Haut-Katanga Province, DRC, addressing long-term water scarcity. Frontier SA, dedicated to improving local living conditions, allocates 0.3 per cent of its annual turnover to DOT-Frontier, a fund for community development as mandated by the DRC mining code. Since 2018, over $5.8 million has been disbursed from a total provision of over $9.2 million. The initiative aligns with ERG Africa’s mission to support impactful projects, with DOT-Frontier currently funding ten development projects in health, education, agriculture, and infrastructure for 2024. The management of DOT-Frontier ensures transparency and community involvement through a specialized body of 12 members. Click here to read...
Talks between Ethiopia and Somalia progresses with the mediation of Turkey
A dispute has arisen over an agreement in which Somaliland would lease part of its coastline to Ethiopia for a naval base, potentially in exchange for Ethiopia recognizing Somaliland's independence. Somalia, considering Somaliland part of its territory, strongly opposes this deal, viewing it as a breach of its sovereignty and territorial integrity. In response, Turkey has stepped in to mediate the conflict, facilitating talks between Ethiopia and Somalia. Turkish Foreign Minister Hakan Fidan reported progress in these discussions, with both sides engaging constructively. A third round of talks is planned for September 17. Click here to read...
UN Security Council Condemns Burkina Faso Terror Attack, Urges Justice and International Cooperation
On August 29, the United Nations Security Council strongly condemned the recent terrorist attack in Barsalogho, Burkina Faso, claimed by the Al-Qaida-affiliated group Jama’at Nusrat al-Islam wal Muslimin (JNIM). The Security Council expressed deep sympathy for the victims and their families, urging accountability for those responsible. The Council highlighted terrorism as a severe threat to international peace and security and called for justice for perpetrators and compliance with international law. It also expressed concern about the worsening security situation in Burkina Faso and the broader Sahel region. Click here to read...
Tunisian court reinstates Former Minister Mondher Znaidi in Presidential race, intensifying contest against President Kais Saied
On August 28, Tunisia's Administrative Court overturned the Independent Higher Election Authority's (ISIE) decision to bar former minister Mondher Znaidi from the October 6 presidential election due to insufficient ballot signatures. This ruling allows Znaidi to join the race alongside other opposition candidates, including Abdelattif Mekki, Ayachi Zammel, and Zouhair Maghzaoui, whose candidacies were also reinstated. The ISIE had previously excluded 14 candidates. Znaidi, who has held various government positions under former President Zine El Abidine Ben Ali, aims to challenge President Kais Saied, who is seeking a second term amid political tensions and criticisms. Click here to read...
Ghana’s Presidential contenders unveil manifestos as economic challenges loom ahead of December election
In Ghana’s upcoming 2024 presidential election, the two main contenders have unveiled their competing manifestos. Ex-President John Dramani Mahama of the National Democratic Congress (NDC) promises to eliminate first-year university fees, reduce taxes, and combat corruption if elected. In contrast, Vice President Mahamudu Bawumia of the ruling New Patriotic Party (NPP) pledges to streamline the tax system, cut the number of ministers, and reduce public spending. The election, set for December 7, will decide the successor to President Nana Akufo-Addo, who is stepping down after two terms. Ghana continues to face economic challenges, including a significant debt default and a restructuring process with the IMF. Click here to read...
AFRICA AND WORLD
IMF approves US$7.3 Million disbursement for Guinea-Bissau
On August 28, 2024, the IMF Executive Board completed Guinea-Bissau's sixth review under its Extended Credit Facility (ECF), approving a disbursement of SDR 5.44 million (about US$7.3 million). This increases total disbursements to SDR 24.88 million (about US$33.44 million). The three-year ECF arrangement, initiated in January 2023, aims to enhance governance, reduce corruption, and support fiscal stability. Despite facing external and domestic challenges, including high inflation and debt issues, Guinea-Bissau's economic growth is projected at 5 per cent for 2024. The IMF emphasizes the need for continued fiscal consolidation, structural reforms, and improved governance. Click here to read...
UN Deputy Chief conducts visit in Chad and Sudan
On her visit to Chad and Sudan UN Deputy Secretary-General Amina Mohammed highlighted the crisis in Sudan as one of the worst globally, and announced a $5 million allocation from the UN’s Central Emergency Response Fund (CERF) for flood recovery in Chad. During her visit, she emphasized the critical need for global solidarity and resources to support humanitarian efforts, including maintaining the newly reopened Adré crossing point for aid into Sudan. Further, an emphasis was laid on the requirement of resources as, the UN's $2.7 billion appeal is only 41 per cent funded. With more than 25 million Sudanese facing acute hunger, Deputy Chief claimed that efforts are to address the Sudanese Government’s legitimate concerns and setting up procedures that would ensure this aid gets to people where it’s meant. Click here to read...
Spanish Prime Minister visit to West African countries
Spanish Prime Minister Pedro Sánchez concluded the three-day visit of West African countries, on August 29. The visits were scheduled in order to strengthen Spanish ties with Mauritania, Gambia, and Senegal, key sources of migrant boats bound for the Canary Islands. In Mauritania, Sánchez announced new agreements, including the introduction of Spain’s circular migration program and renewed security cooperation to combat human trafficking. He emphasized that migration should be managed humanely and safely, recognizing its role in addressing Spain's demographic challenges. The Canary Islands have seen over 22,000 arrivals this year, more than double from the previous year. Sánchez’s tour aims to address migration issues and enhance regional cooperation. Click here to read...
Denmark announces strategy to boost African student exchange programs amid growing global influence
On August 26, Denmark announced a strategy to increase study exchange programs, aiming to attract more African students to study in Denmark and Europe. The strategy emphasizes the importance of these programs for strengthening international ties and mutual understanding. While it does not specify the number of students or establish a timeframe, it highlights Denmark’s commitment to enhancing its role in Africa and countering the growing influence of Russia and China. This policy shift follows Denmark’s previous move to limit international student numbers and reflects a renewed openness to international education. In 2023, Denmark saw a 14.6 per cent decrease in international student enrollments. Click here to read...
IMF and Liberia reach agreement on $209 Million extended credit facility to support reform agenda
The IMF staff and Liberian authorities have reached a staff-level agreement on a 40-month Extended Credit Facility (ECF) arrangement totaling SDR 155 million (about US$209 million), which represents 60 per cent of Liberia's quota. Pending approval from the IMF's Management and Executive Board on September 25, the arrangement will support the new administration’s reform agenda. IMF mission chief Daehaeng Kim praised Liberia’s efforts to address fiscal and governance challenges and restore policy credibility. The plan focuses on fiscal sustainability, rebuilding reserves, financial stability, and combating corruption. The agreement reflects productive cooperation and commitment to essential policy reforms. Click here to read...
Denmark to close embassies in Mali and Burkina Faso, open new missions in Rwanda, Senegal, and Tunisia
Denmark proposes to close its embassies in Mali and Burkina Faso due to political instability and deteriorating relations with Western powers. The Danish foreign ministry announced this decision alongside a new strategy to enhance cooperation with Africa. The closures follow recent military coups in Mali and Burkina Faso and a shift towards Russian support, impacting Denmark's diplomatic engagement in the Sahel region. Denmark will instead open embassies in Rwanda, Senegal, and Tunisia and bolster its diplomatic presence in Egypt, Kenya, South Africa, Nigeria, and Ghana. The new strategy reflects Denmark’s aim to influence Africa’s future orientation between East and West. Click here to read...
A new focus for FOCAC could be towards critical minerals
The 2024 Forum on China-Africa Cooperation (FOCAC) Summit, scheduled from September 4-6 in Beijing, is anticipated to deepen China-Africa relations across economic, political, and social areas. While FOCAC has consistently emphasized sectors like trade, agriculture, and infrastructure, critical minerals remain underrepresented despite their strategic importance to both African economies and China. As global competition for these resources intensifies, African countries are pushing for local value addition, fairer profit distribution, and reduced raw exports. With increased global demand and China's dominance in mineral processing, FOCAC offers an opportunity for Africa to assert its interests and negotiate better terms. Click here to read...
AFRICA AND INDIA
Indian oil companies to resume operations in Mozambique following terrorism induced suspension
The Total Energies-operated LNG project in Mozambique, where Indian oil companies hold a 30 per cent stake, is expected to resume operations in 2024, according to G. Krishnakumar, Chairman and Managing Director of Bharat Petroleum Corp. Ltd (BPCL). BPCL, through its subsidiary BPRL Ventures Mozambique BV, holds a 10 per cent stake in the project. The project's future hinges on the outcome of Mozambique's presidential elections scheduled for October 9. Operations were halted in April 2021 due to terrorist attacks. BPCL is also advancing its strategic 'Project Aspire,' which includes a ₹1.7 trillion investment plan for refineries and petrochemicals. Click here to read...
India-Africa Business Conclave 2024: Building a Partnership for Mutual Growth
The 19th CII India-Africa Business Conclave, held from August 20-22, 2024, in New Delhi, underscored the deepening India-Africa partnership, focusing on clean technology, agriculture, maritime security, connectivity, and the green economy. African leaders welcomed collaboration in various sectors, highlighting joint ventures and investments. With over 1,800 delegates and 900 business meetings, the Conclave laid a foundation for future economic cooperation and mutual growth. Click here to read...
African Leaders Call for Stronger Partnerships to Tackle Global Challenges and Boost Economic Growth
At the 19th CII India-Africa Business Conclave, Gambia’s Vice President Muhammad Bs Jallow congratulated Prime Minister Modi and called for stronger India-Africa collaboration to tackle global challenges like climate change and technological disruption. He emphasized deepening ties and youth empowerment through trade and technology partnerships. Liberia's Vice President Jeremiah Kpan Koung praised India's global contributions and six-decade diplomatic relationship with Liberia. Zimbabwe’s Vice President CGDN Chiwenge urged collective action in areas like infrastructure, agriculture, technology, and minerals, highlighting opportunities for investment and cooperation to promote sustainable economic development. Click here to read...
India and Africa Set Ambitious Goal to Double Trade by 2030 over next seven years
Commerce and Industry Minister Piyush Goyal highlighted the potential to double India-Africa trade to USD 200 billion over the next seven years, speaking at the CII India-Africa Business Conclave. He identified key sectors for collaboration, including agriculture, pharmaceuticals, mining, tourism, critical minerals, and renewable energy. Goyal emphasized expanding participation in India’s Duty-Free Tariff Preference (DFTP) scheme and increasing engagement in the IT, entertainment, and sports sectors. He noted that Africa's mineral wealth could meet India's growing demand for critical minerals, particularly for electric vehicles. Goyal also pointed to opportunities in sustainable mining practices, food security, and strengthening MSME and startup ecosystems, aiming to elevate the India-Africa partnership to new heights. Click here to read...
India-Africa Partnership shall accelerate the global rebalancing and empower the Global South
Vice President Jagdeep Dhankhar highlighted the India-Africa partnership as a catalyst for global rebalancing and the strengthening of the Global South, which could promote global peace and harmony. Speaking at the 19th CII India-Africa Business Conclave, he reaffirmed India's commitment to a non-expansionist policy and underscored cooperation in clean technology, climate-resilient agriculture, maritime security, and the green economy. India has strengthened its presence in Africa by establishing 16 new diplomatic missions, investing over $12.37 billion in infrastructure projects, and supporting capacity-building initiatives. In contrast, the IMF raised concerns over rising debt levels in sub-Saharan Africa, exacerbated by China's stringent lending terms and lack of transparency. The IMF reported that over half of low-income countries in the region are at high risk of, or already experiencing, debt distress. Click here to read...
India and Zambia Hold 4th Foreign Office Consultations, Discuss Strengthening Bilateral Ties
On August 8, 2024, India and Zambia held their 4th Foreign Office Consultations (FOC) in Lusaka. Led by Shri Puneet R. Kundal from India and Ms. Etambuyu Anamela Gundersen from Zambia, the meeting covered a wide range of topics including institutional mechanisms, scholarships, higher education, trade, and sectoral cooperation in defense, health, agriculture, and more. Both delegations expressed satisfaction with the current bilateral relations and agreed on the need for further strengthening. They also discussed regional and international issues and decided to schedule the next FOC in New Delhi at a mutually convenient time. Click here to read...
