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Zambia’s debt breakthrough, Nigeria’s economic woes, Guinea’s general strike, and an Afrobeats label͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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February 27, 2024
semafor

Africa

Africa
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Alexis Akwagyiram
Alexis Akwagyiram

Hello! Welcome to Semafor Africa, where we’re wondering what the future holds for Ecowas. The reputation of West Africa’s economic bloc has been battered over the last few months, culminating in a climbdown over the weekend when it lifted most sanctions imposed on Niger over last year’s coup, without securing the release of the country’s detained former president.

To be clear, lifting the sanctions — a move the bloc said it took “on purely humanitarian grounds” — was the right thing to do. The people of Niger, one of the world’s poorest countries, were suffering as a result of sanctions intended to put pressure on the small group of soldiers behind the coup. “Ecowas thought people would fight and demonstrate against the government, but they haven’t,” a Niger-based diplomat told me. Instead, it merely made life even harder for ordinary people with blunt instruments that failed to harm the intended targets. And there isn’t a deterrent to make other putschists think twice before attempting a coup.

Ecowas is being punished for its clumsy handling of the democratic crisis in the region. The empty threat of using military force to unseat Niger’s coup leaders was ill advised and prompted the first big climbdown. Since then, Ecowas has been repeatedly outmaneuvered by the unruly trio of Niger, Mali and Burkina Faso, who have undermined the tight economic and strategic integration that is the founding principle of the bloc’s existence with their decision to leave the group. On the security front, all three nations are increasingly looking to Russia for assistance, and there’s even talk of the breakaway states looking to set up their own currency.

Nigeria’s President Bola Tinubu seemed set on reinvigorating Ecowas when he took over as chairman last year. Instead, the bloc now looks weak and ineffective in tackling insurgencies and political unrest in the region. As Yinka illustrated in a simple post on X, Ecowas seems to be collapsing before our very eyes.

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Stat

The amount Zambia owed Chinese lenders at the end of 2022, according to the most recent data from the International Monetary Fund (IMF). Zambian President Hakainde Hichilema announced on Saturday that Zambia had finally signed debt restructuring deals with China, its single largest creditor. It also reached a similar agreement with India. The restructuring deals will help boost a $1.3 billion IMF bailout program aimed at economic recovery in Zambia, where the nation is struggling under the weight of $13 billion in debt. The country defaulted on its debt in 2020, when it stopped making payments on its loans. Hichilema said the country would now shift its focus to sealing debt restructuring deals with private creditors. Zambia’s bonds jumped to their highest level since June 2022 on Monday following the announcement.

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Julius Karugaba

Thousands of Ugandans may sue over U.S. security work in war zones

Semafor/Joey Pfeifer

THE SCOOP

KAMPALA, Uganda — Thousands of Ugandans who guarded U.S. government buildings in war zones are preparing to sue their former employers who they claim failed to pay their agreed wages and cover medical bills, leaving many badly injured and mired in debt.

The workers guarded institutions and military bases in Iraq and Afghanistan in the wake of the U.S. invasion of both nations from 2005 to 2022. They were recruited by private security companies contracted by the U.S. Department of Defense (DoD).

The guards, who were cheaper than American personnel, helped meet the need for increased security at U.S. buildings after they became targets for insurgent attacks following the toppling of Saddam Hussein in Iraq and the fight against the Taliban in Afghanistan.

The private security companies included Tennessee headquartered Explosives Ordnance Disposal Technology (EODT), Special Operations Consulting (SOC) and Constellis (formerly Triple Canopy) — both based in Virginia — and Sabre (Torres) International, among others.

Uganda’s government last month gave its backing to former workers seeking restitution after they presented ministers with documents to support their claims, including letters of employment after a campaign by a group of more than 130,000 Ugandan ex-contractors.

The Special Returnees Association (SRA), a Ugandan umbrella organization of former security guards in Iraq and Afghanistan which has more than 130,000 members, told Semafor Africa it may pursue a “mass legal action” on behalf of thousands of its members to secure financial compensation and pay for the medical costs of those injured.

The claims would be against various companies, especially the biggest contractors, EODT, SOC and Constellis in the U.S. courts. The SRA said litigation would be an option if compensation could not be arranged through diplomatic channels involving Uganda government’s security and labor ministries.

EODT, SOC and Constellis did not respond to emails and phone calls from Semafor Africa seeking comment in response to the allegations and the prospect of legal action.

JULIUS’S VIEW

If this dispute goes to the U.S. courts, it won’t be the first time. Tara Coughlin, an American attorney who runs a law firm in the U.S. state of Michigan, has represented Ugandan ex-contractors who were wounded in Iraq between 2005 and 2010. Some of these cases were settled for between $2,500 and $100,000, but other claims were denied in the different U.S. state courts between 2009 and 2016.

Mixed results from these previous cases makes it hard to predict the outcome of any legal process. Both sides will fancy their chances if this goes to court.

But, beyond the intricacies of any future litigation, the experiences of the people struggling with debt and life altering injuries have shone a light on the wider challenges faced by Ugandans — and other Africans — seeking work abroad under uncertain circumstances.

Taking work overseas is challenging and requires a leap of faith. It can lead to painful experiences, as in the case of Ugandan women who have sought domestic work in Saudi Arabia only to be subjected to horrific abuse. Many back at home are completely unaware of such risks. For others, faced with a lack of job options and the promise of well paid work that could benefit them and their relatives, it’s a risk worth taking — even in a war zone.

Read on for more details of other countries whose citizens did similar work. →

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Evidence

Nigeria’s economy grew 2.7% last year, the lowest rate since the country’s recession in 2020, according to data released by the country’s National Bureau of Statistics last week. The slowdown follows low growth across most sectors of Africa’s largest economy. The transport sector was the worst hit. The road transport sector shrank 55% between March and June, a downward trend that continued until December. President Bola Tinubu’s termination of a decades-long petrol subsidy — which cost the government $10 billion in 2022 alone — saw pump prices triple across Nigeria last year, leading to corresponding hikes in transportation fares. Petrol prices have risen further this month, and transportation and food prices hikes are likely to follow, as goods are mostly moved by road in Nigeria. The main labor unions for government employees held protests today in response to the nation’s 30% inflation rate. They say the government has yet to implement cost-of-living adjustments agreed to last October.

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Unfolding

Senegal’s difficult dialogue

Seyllou/AFP via Getty Images

Senegal’s president Macky Sall said he will ask the country’s top court to choose a temporary president on April 2, the day his term ends, if an election is not held before then.

Sall made the pledge on Monday, the first of a two-day national dialogue attended by some candidates, political parties and representatives of civil society groups, Reuters reports. He called for participants at the dialogue to reach a consensus on a new date for the elections, stating that his wish is a date “before the winter.”

But the event was boycotted by at least 16 out of 19 presidential candidates who were due to contest the polls initially set for Feb. 25, including former mayor of Dakar Khalifa Sall (no relation to the president), and businesswoman Anta Babacar Ngom.

The dialogue follows Sall’s contentious postponement of the vote earlier this month. A session of parliament led by his ruling coalition’s MPs backed the postponement, setting a new date in December that would have seen Sall overstay his term. But a Constitutional Council judgment that Sall could not postpone the polls led the president to reverse course, pledging that he would leave office on April 2.

At Monday’s dialogue, Sall also proposed an amnesty bill for those arrested during protests that kicked off after his election postponement. Beneficiaries will also include those arrested during demonstrations in 2021 following the arrest of popular opposition figure Ousmane Sonko. The amnesty bill to be presented to parliament will “make it possible to pacify the political arena,” Sall suggested.

Sall’s dialogue was attended by some candidates disqualified by the Constitutional Council from participating in the elections. But it is not clear if Karim Wade, the son of a former president whose disqualification by the court triggered Sall’s postponement of the polls and the unfolding constitutional crisis, participated. Amadou Ba, the candidate of Sall’s ruling coalition, was in attendance, the French service Radio France reported.

Alexander Onukwue

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Need to Know
Joseph Okpako/WireImage/Getty Images

🇳🇬 Universal Music Group has acquired Nigeria’s Mavin Global, one of Africa’s most successful independent record labels. Founded by legendary Nigerian producer Don Jazzy in 2012, Mavin has been a force in the global rise of Afrobeats, with its roster of superstars including “Calm Down” singer Rema and Grammy nominated Ayra Starr. Details of the price were not disclosed but analysts have placed the label’s valuation as high as $150 million.

🇬🇳 Guinea’s capital Conakry remained largely empty on Monday, as businesses shut following the start of an open-ended general strike. The walkout was called by a confederation of unions last week who urged a strike to demand the release of a jailed member of the press, lower food prices, and an end to internet restrictions, among other concerns. The strike comes a week after the ruling military junta unexpectedly dissolved the transitional government without providing a reason.

🇳🇬 Nigeria’s central bank raised its main interest rate by 400 basis points to 22.75%, as the country battles a months-long cost of living crisis that has sparked protests. “We expect that this will moderate [inflation] in the short to medium term,” said central bank governor Yemi Cardoso on Tuesday. Nigeria’s inflation is at a three-decade high of 30%. The rate review is the first since Cardoso assumed leadership of the bank in September, and follows two canceled meetings of the monetary policy committee.

🇹🇿 Tanzania’s Julius Nyerere Hydropower Plant began its operations on Sunday, sending power to the grid. The nation’s energy minister said an additional 235 megawatts would be supplied to the grid by mid-March to help solve power rationing problems in the East African nation. Conservationists have criticized the 2,115 megawatt project, located in the Selous Game Reserve World Heritage Site, arguing it threatens the endangered animal species, especially the black rhinoceros and elephants.

🇸🇩 The U.S. has named a special envoy to Sudan, to coordinate the U.S. policy on Sudan and advance its “efforts to end the hostilities.” Tom Perriello previously served as the Special Envoy for the Great Lakes and the DR Congo. A new U.N. report shows that Sudan’s nearly year-long war has resulted in thousands of civilians killed and millions displaced as the conflict has spread across the country.

🇧🇯 Benin has offered to send 2,000 troops to Haiti to support a planned security mission to the country, led by Kenya. The troops would help Haitian authorities combat armed gangs in the country, which were responsible for 5,000 civilian deaths in 2023, according to the U.N. The offer by Benin comes as Kenya’s planned deployment of 1,000 police officers to lead the mission remains in limbo after the High Court in Nairobi declared it unconstitutional in January.

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Outro
Geraint Rowland Photography/Getty Images

The Great Green Wall Initiative, started by the U.N. Convention to Combat Desertification, is taking shape in northern Senegal. Communities there are rehabilitating desert land and repurposing it for agriculture in conjunction with the World Food Program. The Wall’s aim is to halt the southern expansion of the Sahara Desert. A new video shows the Senegal River zone communities working to build economically viable ecosystems that restore degraded soil biodiversity in the region. As a result of the project, thousands of young people who previously sought to migrate to urban areas like Dakar or abroad are growing sorghum, millet, pigeon peas, and other crops, helping them to remain self-reliant.

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