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Ghana’s John Mahama is back, MTN’s big cable, Eskom’s new loan͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
snowstorm Nairobi
sunny Bamako
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May 16, 2023
semafor

Africa

Africa
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Alexis Akwagyiram
Alexis Akwagyiram

Hi! Welcome to Semafor Africa where we dig into some of the biggest stories around the continent three times a week.

Kenya’s economy is in the doldrums. Its currency is steadily weakening against the dollar, pushing up the cost of living and making it hard for the country to service its debts. As we’ve previously reported, President William Ruto — like other African leaders — has to make difficult decisions. He’s made it clear that he sees the country’s diaspora as a valuable asset. East Africa’s biggest economy now earns more foreign exchange from remittances than from its top exports, such as coffee, tea and cut flowers.

This edition’s main story looks at the risks posed to Kenya’s migrant workers as Ruto attempts to grow their numbers. As Vivianne Wandera in Nairobi reports, those who find potentially lucrative opportunities in Gulf states must consider the risk of physical and mental abuse experienced by some African migrants who take jobs in the Middle East.

Ruto’s migrant worker drive is a reminder of the economic power of Africans overseas to contribute to their home countries, but also discrimination of the type seen most recently in Tunisia in the wake of controversial pronouncements by its president. The treatment of African migrants who built facilities for last year’s football World Cup in Qatar was widely criticized but, while the western media’s gaze has since shifted, many continue to suffer in abusive working conditions. Protecting citizens abroad is yet another challenge for Ruto, and other African presidents, to overcome.

Need to know

🇬🇭 Ghana’s former president John Mahama will contest the 2024 presidential election after the main opposition party, National Democratic Congress, voted him as its candidate last weekend. Mahama, 64, who served as president between 2012 and 2017, ran for office in 2016 and 2020, coming second to President Nana Akufo-Addo on both occasions. The West African country is struggling through its worst economic crisis in decades after defaulting on most of its international debt in December and having to write down its domestic debt in February. It is currently seeking a $3 billion loan from the International Monetary Fund.

Reuters/Luc Gnago

🇿🇼 African Development Bank President Akinwumi Adesina said the lender has developed financial instruments to fast track $3.5 billion in compensation to white farmers whose land was appropriated by former president Robert Mugabe’s regime from 2000 onwards to resettle Black families. Zimbabwe had agreed to compensate local white farmers in 2020, but that has been delayed. Adesina said further delays could cause a lack of trust. Reuters reported that former farmers turned down an initial deal to receive a payment within 10 years via treasury bills.

🇳🇬 The United States on Monday imposed visa restrictions on “specific individuals who undermined the democratic process during Nigeria’s 2023 elections,” Secretary of State Antony Blinken said in a statement. A U.S. State Department spokesman later declined to share details of the individuals as “visa records are confidential.” The Feb. 25 vote in which Bola Tinubu of the ruling All Progressives Congress party was declared president-elect is currently being disputed in court by rivals Atiku Abubakar of the People’s Democratic Party and Peter Obi of the Labour Party.

🇲🇱 A fact-finding report by the UN Human Rights Office said more than 500 people were executed by Malian troops and the Russian-backed Wagner Group during a five-day military operation in the village of Moura, central Mali, in March 2022. The report is based on interviews with victims, witnesses and forensic sources, as Malian authorities denied the UN team access to the village. UN High Commissioner for Human Rights Volker Türk said the summary executions, rape, and torture over the week-long armed conflict amounted to war crimes. The Malians had claimed they were fighting an al-Qaeda-affiliated group known as Katiba Macina. U.S. officials, in a statement, urged Mali’s transition government to promptly release these findings and hold accountable those responsible for the acts of violence.

🇨🇩 DR Congo’s President Felix Tshisekedi said the mandate of the East African Regional Force, deployed last year to restore peace in eastern Congo, may not be renewed next month if the force does not fulfill its obligation. More than 100 armed groups are active in the region where about 7.5 million people have fled their homes, according to the UN. Tshisekedi’s statement followed a commitment last week by the SADC bloc of Southern African countries to deploy troops to areas where M23 rebels say they are fighting for the rights of Congolese people of Rwandan descent. Rwanda denies backing the rebels.

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Stat

The loan Standard Bank intends to offer South Africa’s state-owned power company Eskom to finance investments in its transmission system, according to Africa Report. In order to access the money, Eskom needs approval from South Africa’s treasury and will have to assure Standard Bank that the funds will be directed towards transmission, said Kenny Fihla, an executive at the bank. Eskom has 423 billion rand ($22 billion) in debt that the treasury says is “unsustainable.” Its struggles to provide consumers with reliable electricity, which have prompted rolling blackouts, culminated in President Cyril Ramaphosa declaring a national state of disaster in February.

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Vivianne Wandera

Kenya risks pushing its citizens into “modern slavery” with overseas jobs drive

THE NEWS

Reuters/ Mohamed Azakir

NAIROBI — Kenya’s drive for its citizens to find work in Gulf states risks forcing them into a modern slavery system in which physical abuse is common, warn rights groups.

East Africa’s largest economy plans to sign 10 bilateral labor agreements in the next “couple of months” with countries interested in hiring Kenyan workers, President William Ruto said this month. He named Saudi Arabia, United Arab Emirates, the United States, and Canada as countries with which deals could be struck to create job opportunities overseas and boost remittances.

But campaigners say this push risks the safety of those hired as domestic workers, such as housekeepers and cleaners, in Gulf nations where there have been numerous reports of Kenyans being injured or even killed by physically abusive employers. “So many people come back in coffins and the government doesn’t seem to do anything about it,” said John Mwariri, a lawyer at Nairobi’s Kituo Cha Sheria legal advice center representing 11 Gulf returnees seeking compensation from Kenya’s government for allegedly failing to protect them.

“In those Middle East countries, there is a system called kafala that is like modern day slavery,” said Mwariri, referring to a system under which workers cannot change jobs without their employer’s permission, leaving many unable to escape exploitation and abuse. “Kenyans have been exposed to this and that is why we are saying it is risky and Kenyans should not go there until the government comes up with measures that will stop the violations of domestic workers,” he added.

More than 170,000 Kenyans are working in Gulf states, Labor Principal Secretary Geoffrey Kaituko told a parliamentary committee in March. More than 80,000 Kenyan domestic workers secured employment in Saudi Arabia in 2022, according to Labor ministry figures.

Ruto, announcing the labor export push, said diaspora remittances from Kenyans abroad hit a record $4.2 billion in 2022 — more than the $1.2 billion generated from the country’s top export, tea. Kenyans working in Saudi Arabia sent home 37.78 billion Kenyan shillings in 2022 ($302.26 million), up from 23.12 billion Kenyan shillings ($185.01 million) in 2021.

KNOW MORE

Kenya banned labor migration to Gulf countries in 2012 after abuse of Kenyan workers in the region was reported.The ban was lifted in 2013 after lobbying by Kenyan recruitment agencies.

In September 2021, Macharia Kamau — who, at the time, was a foreign ministry official — told parliament his department recommended a temporary ban on sending domestic workers to Saudi Arabia. He cited an increase in distress cases and deaths, although the suggestion was rejected. Kamau said 48 deaths were recorded in 2020, 29 of those deaths were of domestic workers. He said 41 Kenyans died there the following year, including 28 domestic workers. Meanwhile, he said, the number of distress cases rose from 88 in 2019 to 1,025 in 2021. Saudi Arabian authorities say most of the deaths were from cardiac arrest.

VIVIANNE’S VIEW

The push to increase remittances is part of the government’s attempt to shore up its finances. As we recently reported, Kenya is in the throes of a stark budget crisis. The policy makes sense in theory but overlooks the human suffering that’s a reality of work in Gulf states for many Black Africans.

On TikTok, it’s common to find videos featuring Kenyan domestic workers in Saudi Arabia asking to be rescued or talking about their terrible lives.

Steve Oluoch alleges that his sister, who was a domestic worker in the Gulf state, was killed by her employer two years ago. He also claimed the autopsy results from Saudi were “doctored”. He said an autopsy in Kenya found that “she died of neck compression, plus several injuries all over the body were observed.”

Some government officials and members of parliament are said to own recruitment companies that hire workers and send them to work in Gulf states, according to reports in Kenyan media. Two government officials declined to answer Semafor Africa’s questions about the claims.

“That may well be the case and it’s because in this country we allow public servants to do business,” Geoffrey Kaituko, a labor ministry civil servant, told Citizen TV Kenya this month in response to the allegations.

The lure of better-paid work overseas for unemployed Kenyans struggling with the rising cost of living at home should not be underestimated. Some 13.9% of working age Kenyans (over 16) were out of work or long term unemployed in the final quarter of 2022 while nearly a fifth of people aged 15 to 34 were not in education, employment or training. Those figures, combined with the government’s need to balance the books, make this policy seem appealing.

If you’re a young Kenyan keen to earn some money for a few years in a Gulf country under the current system you have to understand that your government has few means to really protect you — and that some people in government might be conflicted because they own stakes in the agencies they’re meant to be policing.

ROOM FOR DISAGREEMENT

Eliab Muriithi, the Assistant Secretary General of the Association of Skilled Migrant Agencies of Kenya believes bad news has overtaken the good when it comes to the conditions of domestic workers in the Gulf. “Only the undisciplined people who don’t want to work are portraying negative information to Kenyans,” he said.

THE VIEW FROM TANZANIA.

“Although it might be difficult, domestic workers in Saudi Arabia should unionize as this will ensure they are protected and known. The government should also engage the embassy and the Saudi Arabian government to see how they are handling the situation,” said Paul Kisabo, a human rights lawyer in Tanzania.

NOTABLE

  • The BBC’s Africa Eye investigations team produced a documentary that provided insight into the experiences of Africans recruited to work in the Middle East under the kafala system.
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Evidence

Around half of Africa’s commercial banks expect to spend at least $1 million on their digital transformation and innovation this year, according to an African Banker magazine survey of 153 banks from 33 countries. Competition from rising fintech challengers has influenced the pace of digitalization across the continent, note the survey report’s authors. Fintech startups have dominated funding in the African tech landscape over the last decade. The authors also note an increase in the number of banks where digital spending decisions are made by the most senior executives, but the fall in the number of banks that allocated $3 million or more for digital innovation between 2022 and 2023 is highlighted with concern. “Considering digital transformation important in theory and actually putting the resources in place to actually achieve it are two very different things,” write the authors.

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Tech Talk

Mobile network operators, and commercial banks in Nigeria are in a tense clash over revenue sharing that could disrupt access to financial services for millions of consumers. MTN, Airtel, and other leading telecom operators have threatened to cease providing banks with a service that allows customers to use short codes (USSD) for mobile banking transactions, especially money transfers. The group representing the telcos alleged that the banks owe them 120 billion naira ($260 million) in unremitted commissions, and will suspend the service if banks do not pay up. USSD — an interactive messaging feature with digits between a * and # — has become a normal part of branchless banking in Nigeria, especially for consumers who do not own smartphones. A spokesperson for the governor of Nigeria’s central bank cautioned that “the people will suffer” if the telcos and banks fail to find a solution.

MTN Group’s digital infrastructure arm Bayobab and the African Development Bank-backed Africa50 are joining forces to build a $320 million terrestrial fiber optic cable stretching from the east to the west of sub-Saharan Africa. The 20,000-kilometer cable will be routed through three to four countries at a time in three phases, beginning in September this year: Kenya-Rwanda-DR Congo; Sudan-Chad-Niger-Nigeria in 2024; and Sudan-Central African Republic-Congo-Cameroon in 2025. Google and Meta have invested in subsea cables that run between Africa’s coastline and the rest of the world; this one will run through the ground, connecting Africa’s landlocked countries to existing and future undersea cables.

M-Kopa raised $255 million, mostly through debt, to continue an expansion that has seen it become more than a solar products financier. After starting over a decade ago by enabling households in Kenya to own solar home products by paying in small installments, M-Kopa has expanded its offering to include smartphone financing, medical bills, and quick loans, serving customers in Ghana, Nigeria, and Uganda. South Africa’s Standard Bank provided half of the $202 million in debt, with other loans from the World Bank’s International Finance Corporation, and British International Investment, the UK’s development finance institution.

Alexander Onukwue

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One Good Text

Last week the U.S. ambassador to South Africa Reuben Brigety accused South Africa of providing ammunition to Russia through a docked Russian ship last December. The allegations sparked a diplomatic row which is still playing out. Amaka Anku leads Eurasia Group’s Africa practice.

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Outro

Facebook/Shaden Gardood

Prominent Sudanese singer and poet, Shaden Gardood, was killed last Friday in the ongoing war between the Sudanese army and the paramilitary Rapid Support Forces (RSF). A mortar reportedly hit her home in Omdurman city, in the center of the country, which has seen heavy fighting since April 15. Gardood was known for her critical role in promoting peace efforts and the culture of the Baggara, a marginalized community from the southern region of Kordofan. She had been critical of the war on her Facebook page. Gardood died a day after warring parties agreed to the protection of civilians and assistance for the passage of humanitarian aid to the affected regions.

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