November 2017 - African Financial & Economic Data

30 Nov

EU Pledges Increased African Investments to Slow Migration

European Union leaders pledged to increase investments in Africa to assist development and help stem the arrival of thousands of migrants who are desperate to flee poverty.

Speaking at a gathering of heads of states of the continents in Ivory Coast’s commercial capital, Abidjan, European Council President Donald Tusk said Wednesday the bloc was “ready to do more” to create jobs and economic opportunities for Africa and its people.

“We have to be ambitious,” Antonio Tajani, President of the European Parliament, said at the same gathering. “There needs to be a true Marshall Plan for Africa.”

The two-day meeting in Ivory Coast takes place as the EU plans to make 8 billion euros ($9.5 billion) available to improve migration control from the Middle East and Africa. In September, the European Parliament adopted a separate 4.1 billion euro plan for Africa that’s meant to generate 44 billion euro in investment and address root causes of migration.

Solutions to Africa’s problems “require significant financial resources, much more than what African resources alone can afford,” Ivory Coast President Alassane Ouattara said. “Our appeal will be for the growth of investments from Europe, public and private.”

Europe is grappling to stem the biggest wave of asylum seekers since World War II, as anxiety over the issue is stoking populism and drives electoral gains by far-right parties from France to Hungary.

Libya Slaves

The plight of African migrants was highlighted this month by videos of what the International Organization for Migration described as slave markets in Libya, scenes that are dominating the summit’s talks.

Leaders and officials of the EU, AU and United Nations met Wednesday with Libyan Prime Minister Fayez Mustafa Al-Sarraj to find solutions for this “atrocious and unbearable situation,” French President Emmanuel Macron told reporters.

Libya agreed to allow access to its territory for the parties to evacuate the camps “where these barbaric scenes” have been identified and to speed up the repatriation of migrants to their countries of origin, he said.

Governments across the two continents will reinforce cooperation to dismantle trafficking networks and their funding mechanisms while the EU may help to pay for the repatriation of migrants to their countries of origin.

A lasting solution to illegal migration will require that Libya solve its political crisis, Macron said. “It is indispensable to reconstitute a durable state and a political balance as part of the roadmap that has been decided,” he said.

Source: https://www.bloomberg.com/news/articles/2017-11-29/eu-pledges-increased-african-investments-to-slow-migration

30 Nov

Buhari’s Graft War Stumbles as Nigeria Security Chiefs Feud

When agents of Nigeria’s financial crimes body arrived this month to arrest a former intelligence chief fired by President Muhammadu Buhari for stashing $43 million in cash in his wife’s apartment, they were stopped by armed secret policemen.

After a 10-hour standoff, the Economic and Financial Crimes Commission backed down in the upscale Asokoro district of the capital, Abuja, with its boss, Ibrahim Magu, vowing his agents would be back to arrest former National Intelligence Agency boss Ayodele Oke.

It was the latest in a string of incidents that have dented the credibility of Buhari’s war on graft. Propelled by pledges to tackle corruption, the 74-year-old former military ruler became in 2015 the first opposition candidate in Nigerian history to defeat an incumbent at the ballot box. The West African nation ranked 136 out of 176 countries in Transparency International’s Corruption Perception Index in 2016, the same as the year before.

Inter-agency rivalry has been a consistent feature of Buhari’s graft war. Twice he sent the nomination of Magu as head of the financial crimes commission, known as the EFCC, to lawmakers for approval, and on both occasions they rejected him based on state security police reports of alleged prior wrongdoing. That’s left the president’s anti-corruption czar in a weakened, acting capacity more than halfway into his tenure.

Lack of Clarity

“This clearly shows the lack of tactics and strategy in the approach of fighting corruption by the current administration,” said Oluseun Onigbinde, head of Lagos-based BudgIT, a civic group that lobbies for government transparency. “There’s no clarity on who’s directly responsible for arresting or prosecuting people.”

Presidential spokesman Garba Shehu said he couldn’t comment on the clash between the two security agencies over the attempted arrest of Oke when contacted by phone, saying he hadn’t been briefed on the matter. Buhari says his administration is making progress.

To read the full article, click here.

30 Nov

Chaos Threatens Key Leadership Vote for South Africa’s ANC

Leadership disputes have ended up in court in three of the nine provinces — KwaZulu-Natal, the Free State and North West — while the party’s national officials stepped in to avert a lawsuit challenging the outcome of its internal election in the Eastern Cape province.

Court challenges, allegations of vote rigging and outbreaks of violence — South Africa’s ruling party is in disarray less than three weeks before it’s scheduled to choose a new leader to replace President Jacob Zuma.

The struggle for power has spawned such disorder that some analysts question whether the African National Congress can hold a credible election at the Dec. 16-20 conference in Johannesburg in what’s shaping up to be the most hotly contested internal vote since Nelson Mandela led the party to power in 1994.

“If all these legal disputes are not sorted out by the time the conference takes place, they will be transferred to the conference itself,” said Mpumelelo Mkhabela, a political analyst at the University of Pretoria’s Center of Governance Innovation. “There is a risk that after the conference, some people challenge its legality and the decisions that have been taken.”

Seven candidates are vying to replace Zuma as ANC leader and become the party’s presidential candidate in 2019. Only Deputy President Cyril Ramaphosa and Nkosazana Dlamini-Zuma, the former chairwoman of the African Union Commission and Zuma’s ex-wife, appear to have a realistic chance of winning.

Most party branches in the Northern Cape and Western Cape nominated Ramaphosa for the post, while Dlamini-Zuma received overwhelming backing in the Free State. The other six provinces will announce their preferences over the next few days.

On Wednesday, the high court in Bloemfontein in the Free State ordered that the province’s conference, which was due to take place this weekend, can’t be held until 29 branch meetings are rerun. The court said 29 of these meetings were irregular and unconstitutional.

To read the full article, please click here.

29 Nov

Africa: Global Response to Malaria at Crossroads

After unprecedented global success in malaria control, progress has stalled, according to the World malaria report 2017. There were an estimated 5 million more malaria cases in 2016 than in 2015. Malaria deaths stood at around 445 000, a similar number to the previous year.

“In recent years, we have made major gains in the fight against malaria,” said Dr Tedros Adhanom Ghebreyesus, Director-General of WHO. “We are now at a turning point. Without urgent action, we risk going backwards, and missing the global malaria targets for 2020 and beyond.”

The WHO Global Technical Strategy for Malaria calls for reductions of at least 40% in malaria case incidence and mortality rates by the year 2020. According to WHO’s latest malaria report, the world is not on track to reach these critical milestones.

A major problem is insufficient funding at both domestic and international levels, resulting in major gaps in coverage of insecticide-treated nets, medicines, and other life-saving tools.

Funding shortage

An estimated US$ 2.7 billion was invested in malaria control and elimination efforts globally in 2016. That is well below the US $6.5 billion annual investment required by 2020 to meet the 2030 targets of the WHO global malaria strategy.

In 2016, governments of endemic countries provided US$ 800 million, representing 31% of total funding. The United States of America was the largest international funder of malaria control programmes in 2016, providing US$1 billion (38% of all malaria funding), followed by other major donors, including the United Kingdom of Great Britain and Northern Ireland, France, Germany and Japan.

The global figures

The report shows that, in 2016, there were an estimated 216 million cases of malaria in 91 countries, up from 211 million cases in 2015. The estimated global tally of malaria deaths reached 445 000 in 2016 compared to 446 000 the previous year.

While the rate of new cases of malaria had fallen overall, since 2014 the trend has levelled off and even reversed in some regions. Malaria mortality rates followed a similar pattern.

To read the full article, click here.

29 Nov

Africa Seeks Investment to Stem Migration as EU Summit Begins

European and African leaders gathering in Ivory Coast have an opportunity to confront one of the biggest sore points between the two continents: migration.

The two-day African Union-European Union summit begins Wednesday as Europe is grappling to stem the biggest wave of asylum seekers since World War II, with more people arriving by sea from African countries this year than from war-torn Syria. Anxiety over migration has stoked populism in Europe and driven electoral gains by far-right parties from France to Hungary.

“For the Europeans, it’s a priority because it’s also a domestic political issue and their electorate is very sensitive to this question,” said Gilles Yabi, head of policy group Wathi in Senegal’s capital, Dakar.

Yet few African leaders want to be seen as curbing migration in a region where going overseas is often considered a rite of passage and remittances are vital for economic survival. That’s why African Union member states favor talks that touch on broader issues such as economic development, security and trade relations, according to Yabi.

‘Concrete Projects’

French President Emmanuel Macron and German Chancellor Angela Merkel are expected to attend the summit in Abidjan. Among African leaders to join the talks are Nigeria’s Muhammadu Buhari and South African President Jacob Zuma.

Africa will only persuade its young people to stay if there are prospects for economic development on the continent, Moussa Faki Mahamat, president of the African Union Commission, told Radio France Internationale last week.

“We have to start at the root of the problem, with development, with concrete projects,” Mahamat said.

The views of African and European leaders on migration are fundamentally at odds, the International Crisis Group said in a report last month. “The European Union is doggedly focused on trying to prevent irregular migration, whereas the African Union is looking for ways to increase legal flows,” the Brussels-based research group said.

To read the full article, click here.

29 Nov

Paralysis Grips South Africa Government With ANC Facing Election

An acrimonious battle for control of South Africa’s ruling African National Congress has paralyzed several government departments, as ruling party leaders focus on electioneering and officials delay taking decisions until they learn who their new political masters will be.

The front-runners to replace Jacob Zuma as ANC leader next month are his deputy Cyril Ramaphosa and Nkosazana Dlamini-Zuma, the former chairwoman of the African Union Commission and Zuma’s ex-wife. The victor will probably also succeed Zuma as president in 2019, or even earlier if the party decides to replace him before his second term ends. Ramaphosa has stressed the need to reignite growth and restore investor confidence, while Dlamini-Zuma has called for the nation’s wealth to be more equitably distributed.

These are some of the key issues that are likely to remain in abeyance until after the ANC’s Dec. 16-20 elective conference:

1. Resolving a standoff over black mine-ownership laws

The government and mining companies have been locked in dispute for months over a new Mining Charter, which seeks to compel companies to maintain a minimum 30 percent black shareholding. The industry argues that the previous threshold of 26 percent should be retained and sales of stakes to black investors who subsequently divested should be taken into account when assessing their compliance. Court hearings on the dispute are due to resume Feb. 19. Ramaphosa has called for the standoff to be amicably resolved.

2. Allocating new broadband spectrum to mobile-phone companies

While mobile phone companies have been clamoring for additional spectrum, the telecommunications minister sued the industry regulator last year to prevent it from holding a planned auction, arguing that the sale was premature and proper regulatory procedures weren’t followed. The case remains unsettled. Telecommunication laws are meanwhile being amended to give the government greater control over spectrum allocation.

To read the full article, click here.

29 Nov

Photographer: Simon Dawson/Bloomberg Gem Smuggling Thwarts Revival of Central African Republic

In the lounge of a luxury hotel in Bangui, the capital of war-torn Central African Republic, soft-spoken diamond dealers cautiously sidle up to guests.

Their whispered offers of gems for sale are a visitor’s first hint of the thriving illegal market for the precious stones in a country that five years ago was ranked as the world’s 10th-biggest diamond producer and is now mostly controlled by armed militias.

The illicit sales are bad news for the Central African Republic as it lobbies for the removal of an international ban on exports of its diamonds. The embargo, which was partially lifted last year, was imposed because of concerns over gem sales funding conflict. Yet while diamond exports offer a potential source of desperately needed government revenue, authorities so far have been powerless to curb the underground trade.

The government is aware that smugglers come to Bangui to buy diamonds but doesn’t have the means to stop them, said Mines Minister Leopold Mboli Fatrane. He cited the example of an Italian traveler arrested recently with scales and other diamond-evaluation equipment in his luggage.

“If you’re caught in the act, we’ll deport you,’’ Mboli Fatrane said in an interview in Bangui. “But we have a big country and barely any means to investigate.’’

Diamonds have been both a blessing and a curse for the Central African Republic since its independence from France in 1960, providing a crucial source of income for the poor while fueling corruption and armed conflict among the elite. Under Jean-Bedel Bokassa, who wore a gem-encrusted crown when he proclaimed himself emperor in 1976, diamonds became a byword for the megalomania of the nation’s politicians.

In his workshop where decades-old equipment is collecting dust, diamond-cutter Joseph Guinot, 65, remembers those days fondly.

To read the full article, click here.

28 Nov

Zimbabwe: Mnangagwa Dissolves Cabinet

President Emmerson Mnangagwa dissolved cabinet Monday and immediately appointed two allies to, in the interim, hold forte at two of the great offices of state – finance and foreign affairs.

Patrick Chinamasa returns to finance and Simbarashe Mumbengegwi to foreign affairs as the president puts together his new cabinet after assuming office last Friday.

The development comes as Zimbabweans eagerly await the new president’s cabinet line-up to see whether he will bring into government fresh blood or keep faith with veteran colleagues.

Talk has also centred on speculation over whether Mnangagwa would into government members of the opposition to help right the country’s battered economy.

Chinamasa and Mumbengegwi led the same ministries before they were demoted in a reshuffle by former president Robert Mugabe last month.

The reshuffle, which side-lined Mnangagwa’s allies leading to his dismissal by Mugabe was part of the events that culminated in Mugabe’s resignation last week.

A statement by cabinets secretary Misheck Sibanda Monday confirmed the appointments of Chinamasa and Mumbengegwi.

“The president … has dissolved cabinet, and is in the process of putting together a new team of cabinet ministers,” said Sibanda.

He added that Chinamasa and Mumbengegwi had been appointed acting ministers “to allow for uninterrupted services in critical ministries”.

In addition the normal Tuesday cabinet gathering would be replaced by a meeting between the new president and the permanent secretaries.

Meanwhile, Mnangagwa’s cabinet line-up will be keen examined for indications of the direction of travel for the new administration.

“The composition of the new government will show a clear path whether we continue with the status quo or the clear break with the past that we need to build a sustainable state. It’s a simple choice,” former finance minister and opposition leader Tendai Biti told Reuters news agency.

“Zimbabwe needs all hands on deck…We cannot continue reproducing these cycles of instability.”

However, for some analysts a coalition government is pointless for the opposition if, as Mnangagwa indicated, elections will go ahead as scheduled next year.

“If I were an opposition politician I would say: what’s in it for me? Unless I’m convinced I’m going to lose the election, I won’t participate,” business studies lecturer Professor Tony Hawkins told Reuters.

“He (Mnangagwa) might introduce technocrats from commerce and that will send out a signal of sorts… As far as the international community is concerned legitimacy is important. It’s a very delicate situation and he has very little room for manoeuvre.”

Source: http://allafrica.com/stories/201711280004.html

28 Nov

Africa: Emmanuel Macron’s Mission in Africa – a New Approach?

The French president’s trip to Africa will attempt to demonstrate a new kind of politics as Macron seeks to break away from neocolonialism across the continent.

Emmanuel Macron wants to make things right. The newest resident of the Elysee Palace is seeking a clear departure from the policies of his predecessors – and he has appointed eleven honorary consultants to help him do it. The new Presidential Council for Africa (CPA), which is made up of mostly business representatives with an African background, has spent the past few weeks educating the French president on all of the major issues across the continent before he kicks off his tour of West Africa. The French foreign media has already learned that Macron will say different things than his predecessors.

Macron will begin his African charm offensive with a speech at the University of Ouagadougou in Burkina Faso to an audience of around 800 students, followed by a question-and-answer session. The location has been strategically chosen as the perfect place to announce his new Africa strategy.

“It’s a strong sign,” says Congolese political scientist, Tumba Shango Lokoho, who teaches at Paris-Sorbonne University. Macron aims to send a clear message that the future of Africa belongs to the younger generation, and they need to be supported. “If African youth are the future, they need an education and work prospects on the continent to advance the transformation of Africa,” says Lokoho.

But it’s no easy task. “France has long been pursuing a schizophrenic Africa policy,” he says. “There needs to be a renewal in discourse, but the African heads of state, who are often in office for a long time, are strategic partners in France.” It’s through them that France got involved, he says, adding that the goodwill of aging rulers alienated young Africans and civil society.

To read the full article, please click here.

28 Nov

South Africans to be hit with a R30 billion tax hike in 2018

Whether the ANC are pursuing free higher education like kamikaze pilots, or trying to add another room on to Nkandla, the party are now pushing for a huge tax hike to fill the holes in our economy, according to a report in Business Tech.

There is a R40 billion gap in the country’s revenue, as identified by Malusi Gigaba in his mid-term budget speech. The government’s failure to stop tax dodgers – complimented by rampant corruption and lax regulations against avoidance – is now set to hit ordinary taxpayers right in their pockets.

They’ve effectively punctured their own tyres, and are now asking us to forfeit our own just so the ANC can continue their journey over the edge of a cliff.

Why a tax hike is planned for 2018

In total, they are looking to plug this rand black-hole over the next two years. South Africa’s shortfall actually stands at R80 billion. There is an expected R50 billion to come in expenditure cuts too.

This would equate to annual cuts in expenditure amounting to about R25 billion as well as revenue-enhancing measures amounting to about R15 billion, including where appropriate, tax measures, the presidency said in a statement.

A huge spanner in the works is the near-suicidal attempt to force through a free-fees plan for higher education. The Zuma regime are desperately trying to implement cost-free higher education. It’s noble in theory, but devastating in practice.

Areas facing cuts:

Social grants payments
Reducing the rollout of RDP houses
Freezing government wages
Halving the military budget

Tax hikes in the last two years have failed to deliver any expected revenue increases. 2015/16 failed to raise the predicted R18 billion, just as 2016/17 failed to earn the R28 billion it was forecast.

But, the third time is a charm right? Here’s the problem. Raising taxes has little-to-no effect on those that are causing the issue. If you aren’t cracking down on those avoiding tax, how are you going to get them to pay an increase?

Source: https://www.thesouthafrican.com/south-africans-to-be-hit-with-a-r30-billion-tax-hike-in-2018/