There have been key developments across the African continent that will shape the markets over the next week and months including Ethiopia’s radical plan to finally float its currency amid macroeconomic reforms, which has seen the Birr lose value significantly.
Across the border in Kenya, Indian conglomerate Adani’s has made significant investment proposal for the country’s main airport, in what has become a national controversy. In Nigeria, Dangote is re-selling US crude amid refinery expansion, while Qatar Airways’ is about to add to its strategic investments in South African and Rwandan aviation.
Ethiopia Plans Currency Float to Address Economic Challenges
Ethiopia announced plans to float its currency, the birr, as part of macroeconomic reforms aimed at correcting foreign exchange distortions and solving balance of payments deficits. This move comes ahead of discussions with the IMF and World Bank that could lead to $10.5 billion in funding to help restructure Ethiopia’s $28.5 billion external debt.
African Union Endorses New Force to Combat Al-Shabaab in Somalia
The African Union has approved the creation of a new force to replace over 13,000 troops leaving Somalia by year-end. This decision follows Somalia’s request for continued support to degrade al-Shabaab militants and ensure a smooth transfer of security responsibilities to Somali authorities.
Sudan Conflict Intensifies with Militia Advancing on Key Stronghold
The Rapid Support Forces have gained ground in Sudan’s ongoing civil war, prompting the army to declare a state of emergency in several regions. The escalating conflict has led to widespread looting and increased civilian insecurity, with the UN highlighting severe protection risks.
Survey Shows Most Africans Open to Military Takeover to Remove Corrupt Leaders
A survey by Afrobarometer reveals that a majority of Africans would accept a military takeover if elected leaders abuse power, reflecting a decline in faith in democracy amid rising corruption concerns. This sentiment coincides with recent coups and protests across the continent.
Pirate Attacks Surge Off Somalia Coast Due to Houthi Threat
Pirate attacks off the Somali coast have surged as Iran-backed Houthi militants disrupt shipping in the Red Sea. The resurgence of piracy is forcing vessels to reroute, increasing carbon emissions and freight costs. Pirates, equipped with satellite phones and heavy weapons, have carried out 30 attacks since November.
Nigerians Plan Nationwide Protests Over Rising Living Costs
Nationwide protests are planned in Nigeria from August 1, demanding the reinstatement of fuel subsidies and government officials to use public schools. The demonstrations, inspired by recent protests in Kenya, aim to address the high cost of living under President Tinubu’s administration. In Uganda, protests against corruption particularly in Parliament last week led to the arrest of more than a hundred protestors, as events in Kenya since late June spread across the region.
Adani Proposes $1.8 Billion Investment in Kenya’s Main Airport
Adani Airport Holdings Ltd. has proposed a $1.8 billion investment to upgrade Kenya’s Jomo Kenyatta International Airport. The plan includes building a new terminal and second runway-if the current one is fully utilised, with the proposal undergoing technical, financial, and legal reviews to ensure compliance with public-private partnership laws. The deal has become controversial, with the government saying it is considering it as necessary for the hub’s growing needs amidst public austerity measures.
Dangote Refinery Resells US Crude Amid Market Adjustments
Nigeria’s Dangote refinery is reselling some US crude initially purchased for its operations. The refinery, with a capacity of 650,000 barrels per day, has been ramping up production and has the potential to significantly impact global fuel markets. This development follows the rising prominence of US crude exports.
Qatar Airways in Talks to Acquire Stake in South African Airlink
Qatar Airways is negotiating to purchase a 20% stake in South Africa’s SA Airlink, as part of its strategy to expand its African network. The airline, which already flies to about 30 African destinations, is also finalizing a 49% stake in RwandAir and a 60% stake in a new Rwandan airport.
Houthi Attacks Reinforce Piracy Networks in Somalia
Houthi militants’ attacks on the Red Sea have revitalized piracy networks in Somalia, causing global shipping disruptions. Increased pirate activity has led vessels to take longer routes, raising emissions and costs. Pirates, using advanced equipment, have conducted numerous coordinated attacks on commercial vessels since late last year.
Kenya Officially Files Candidature for African Union Chairperson
Kenya has officially filed the candidature of opposition leader Raila Odinga for the African Union Chairperson, just days after President William Ruto named four members of his (Odinga’s) party to Cabinet. The move to front Odinga was initially seen as a way of placating him and diverting his attention from local politics, but events in the last month have brought the two rivals-turned friends-turned rivals-now turned friends again even closer.
Weapons from Russia, Turkey, fuelling Sudan conflict-Amnesty International
A new report from Amnesty International says that there is “an almost unimpeded supply of weapons into Sudan.” The weapons, mainly from Russia and Turkey, are moved through ‘nearly all neighbouring countries’, further fuelling the conflict that has been ongoing since April 2023.
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