Africa

1. Namibia powers up
2. Drug trafficking
3. ZiG v dollar
4. White House appointment
5. Amazon arrives

Also, why pedestrians often have a tough time.

Hello! Welcome to Semafor Africa. I’m in Dallas this week for the US-Africa Business Summit which has its usual impressive gathering of African leaders, US business executives, and everyone in between. While many of the discussions here are focused on how business and trade with Africa can be expanded, particular attention has been paid to building and improving supply chains with African countries.

One of the most obvious beneficiaries of that focus has been the Lobito Corridor project, which runs from DR Congo, through Zambia on to the Lobito port in Angola. Here in Dallas, it really felt like Angola has seen extensive benefits from its refreshed US relationship. President João Lourenço was on hand to witness the signing of three deals led by the US Exim bank worth a combined $1.3 billion, including two new solar energy plants, bridge infrastructure, and a radio communications project. It was the latest sign of a closer relationship between the US and Angola. But those who’ve been longtime watchers say this wasn’t always obvious, given US-Angola tensions during and after the Cold War.

As a former president of the US-Angola Chamber of Commerce, Jeanine Scott, told me, “trust was thin” with Angolan leadership which didn’t forget that the US backed the UNITA opposition during the country’s long civil war. “With the Lourenço administration we have moved from frosty to a thaw,” Scott said. I will point out, as I have before, that the really impressive thing here is that President Lourenço is managing to thread the needle between two world powers. China remains a close partner (and largest bilateral creditor), particularly with its oil industry. It’s not that Africa necessarily needs more partners for the sake of it, but it does need better relationships.

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Namibia secures renewable energy loan

The size of a loan approved by the World Bank on Tuesday to bolster Namibia’s power transmission network and add renewable energy into its grid. The loan, the first energy project to be financed by the World Bank in the country, will be used by national energy utility NamPower to invest in solar and wind projects. Namibia is one of Africa’s driest countries, with abundant sunshine and wind making it ideal for renewable energy projects.

The Sahel countries have a drug problem

Increased drug trafficking in Africa’s Sahel region is undermining security and stability, the United Nations’ Office on Drugs and Crime said in a report this month. Cocaine, cannabis, and pharmaceutical opioids have become more abundant in recent years, especially in Burkina Faso, Mali, and Niger. About 1,466 kilograms of cocaine was seized in Sahel countries in 2022, up from 41 kilograms in 2021 and an average of 13 kilograms per year between 2015 and 2020. Cannabis is the most commonly seized drug in the Sahel countries because it is locally produced and consumed within the region, the UNODC said. On the other hand, hashish — a cannabis resin — tends to come into the region from Morocco, where production was estimated at 901 tons in 2022. Half of all pharmaceutical opioids seized worldwide between 2017 and 2021 were in Africa.

Zimbabwe crafts plans to enforce usage of its new ZiG currency

HARARE, Zimbabwe — Zimbabwe ordered its agencies and the private sector to accept its new gold-backed currency, and will introduce new measures to enforce its use.

Zimbabwe Gold (ZiG) was introduced last month to tackle hyperinflation after its predecessor, the Zimbabwe dollar, plunged in value. But local markets have continued to use US dollars. The ZiG is its sixth currency to be rolled out in 16 years after successive failed efforts to tackle its hyperinflation crisis.

Authorities have raided street currency traders in the past few weeks to enforce the official exchange rate, set at about 13.66 ZiG to the dollar, but widely exchanged for up to 20 ZiG across various markets.

Finance Minister Mthuli Ncube on Tuesday called on all government agencies and the private sector to “accept the ZiG in all financial transactions.” He added that the government will introduce “necessary regulations” to ensure only the official rate is used to price goods and services.

The finance ministry did not say when the new regulations would be introduced.

White House quietly appoints Africa director

US President Joe Biden appointed Frances Z. Brown as his new special assistant and senior director for African affairs.

She takes over from Judd Devermont who stepped down in January to take up a role with an Africa-focused investor firm.

Brown joined the White House team two weeks ago without much fanfare, even as the administration winds down what it hopes is a first term. Brown is expected to continue in the National Security Council role if Biden is re-elected in November.

A longtime democracy, development, and defense specialist, Brown had spent just under seven years at Carnegie Endowment for International Peace, a Washington think tank. She previously worked for President Barack Obama at the tail end of his second term, and into the first year of President Donald Trump’s administration.

She will initially focus on the build up to the official visit of Kenyan President William Ruto later this month, the first state visit by an African leader in 15 years. The White House also expects Brown to lead the focus on African elections this year, with up to 12 presidential elections expected, including in South Africa later this month. NSC Spokesperson Adrienne Watson described Brown as a “significant asset for our Africa policy work.”

— Yinka

Amazon takes its e-commerce machine to Africa

Amazon rolled out its online shopping service in South Africa this week, promising same day and next day deliveries. It marks the US giant’s entry into Africa’s e-commerce space.

South Africans will shop from local and international brands “across 20 different product categories,” Amazon said.

Robert Koen, Amazon’s manager for sub-Saharan Africa, said the company will kick off with 3,000 pick up points to complement home deliveries. First time customers will receive free deliveries and, in acknowledgment of WhatsApp’s local dominance, customers will receive order status updates on the Meta-owned messaging platform.

Amazon.co.za becomes the newest competition for online shopping incumbents in South Africa, including local leader Takealot, owned by media and tech giant Naspers, and Jumia, a pan-African player. South Africa’s e-commerce space also includes the food delivery service Uber Eats and its discount fashion retailer Mr Price.

Amazon will hope to accelerate the steady growth of e-commerce in South Africa. Its e-commerce sales totaled 71 billion rand ($3.8 billion) in 2023, a 29% rise on the previous year, according to market research company World Wide Worx.

— Alexander Onukwue

Last month US Senators Jim Risch of Idaho and Chris Coons of Delaware introduced the African Growth and Opportunity Act (AGOA) Renewal and Improvement Act of 2024 to renew the US trade preference program with sub-Saharan African countries. The current iteration of AGOA is set to expire in May 2025.

Governance

🇨🇮 Cote d’Ivoire is set to launch a commodities exchange to be based in the commercial capital Abidjan, the West African Regional Stock Exchange chief executive said. The exchange, in the world’s largest exporter of cocoa, will initially trade kola nuts, cashew nuts and corn, with a view to later adding cocoa.

🇰🇪 Doctors in Kenya’s public hospitals are set to return to work following a 56-day nationwide strike. The government and doctors’ union signed a deal on Wednesday.

🇹🇳 Tunisia has detained a prominent activist and defender of migrant rights, local media reported. President Kais Saied accused groups that defend migrants of treason.

Tech

🇳🇬 Microsoft laid off its engineering team in Nigeria, in what the company called a necessary “organizational and workforce adjustment.”

🌍 Airtel Africa reported an after-tax loss of $89 million for the full year ended March 2024, as foreign currency movements in Nigeria, Malawi, Kenya, and Zambia wiped a billion dollars off its balance sheet.

🇰🇪 Kenyan telco Safaricom reported an operating profit of 139.9 billion Kenyan shillings ($1.07 billion) for the year ended March 2024, driven by growth of its M-Pesa mobile money service. It is the first East African company to cross a billion dollars in annual earnings.

🌍 African e-commerce leader Jumia posted revenue of $48.9 million for the first three months of 2024, a 19% increase over the same period in 2023. Its operating loss reduced 71% to $8.3 million.

🇿🇦 South African telecom giant MTN will set up 100 new sites for 5G internet in the country’s Mpumalanga and Limpopo provinces.

Elections

🇿🇦 Former South African President Jacob Zuma faces attempts to oust him from the leadership of his new uMkhonto we Sizwe party, after falling out with its founder Jabulani Khumalo. Zuma could be a kingmaker if the ANC falls short of a majority and a coalition government is required.

Deals

🇿🇦 Lesaka, a Nasdaq-listed financial services company, will buy digital payments provider Adumo for 1.59 billion rand ($89.5 million). Both companies are based in South Africa.

🇳🇬 American Express is introducing new dollar-denominated credit cards in Nigeria. The US payments company is offering four cards in partnership with Nigerian fintech 03 Capital.

🌍 British International Investment and Citigroup launched a $100 million trade finance fund to back businesses in Africa.

🇰🇪 Indian private equity firm Ascent Capital bought a 49% stake in Dune Packaging, a Kenyan paper packaging company, for 1.6 billion Kenyan shillings ($12 million).

Geopolitics

🇦🇴 Angola’s finance minister said the country had agreed with the China Development Bank, its largest single creditor, to release cash held as collateral for a $17 billion loan owed to China.

🇸🇱 🇷🇺 Russia said it plans to open an embassy in Sierra Leone before the end of this year. Moscow has been mulling cooperation on nuclear energy for Sierra Leone.

Energy

🇰🇪 Italian oil company Eni Kenya said it has conducted a feasibility study for a biogas project in Kenya, which would utilize waste dumped in five major landfills in the country. Biogas is one of the main sources of energy in the country.

African cities are largely inaccessible and unsafe for pedestrians because urban planners typically ignore their needs, a new study suggests. Urban development researchers focused on Ghana’s Accra New Town and Dome areas for the study. They found that policies and municipal plans pay little attention to how walking can be made a pleasant experience. This is despite statistics showing that more than 70% of Africa’s urban population walk daily to their various destinations. The study — which drew on research from Nigeria, Kenya, and Sierra Leone — recommended that city planners work with residents to come up with solutions to make urban neighborhoods safer and more navigable for pedestrians.

• How Princeton got burned by its outreach to Iran.
• Team Trump is warming to TikTok.
• Researchers warned against using AI to peer review academic papers.

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— Yinka, Alexis, Alexander Onukwue, Martin Siele, Muchira Gachenge, and Jenna Moon