Africa

1. Naspers’ strong year
2. Tax comparison
3. Kenyan police
4. Horse trading
5. Ghana’s breakthrough

Also, Madagascar’s capital has a new weapon in the fight against traffic.

Hello! Welcome to Semafor Africa, where we’re expecting awkward conversations in South Africa. The most high profile conversations will be between the African National Congress and its new coalition partner, the Democratic Alliance, over who gets the top ministerial jobs in their government. But the elevation of the white-led DA to government positions is also a reminder of apartheid’s legacy and is sparking conversations around race. That was abundantly clear this week when the DA suspended one of its members of parliament after an old video in which he uses racist language resurfaced online.

The ANC and DA will lead a “unity government” likely to feature the biggest contingent of senior white lawmakers since the end of apartheid 30 years ago. That, coupled with the large number of parliamentary seats secured by the Economic Freedom Fighters and Jacob Zuma’s Mkhonto weSizwe Party — populist parties who are likely to form a vocal opposition bloc — means race is likely to become an even more prominent part of conversations about South African politics.

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Naspers nearly doubles profit

The core headline earnings from continuing operations for South African tech and media giant Naspers for the year ended March 31. The figure is nearly double the earnings for the same period a year earlier. Naspers, which owns a stake in Chinese tech giant Tencent, said on Monday that its consolidated e-commerce business achieved profitability in the second half of the year, ahead of its expectation for the first half of 2025.

More taxes, more problems

The ongoing anti-tax protests in Kenya are in conflict with the conventional thinking on how African countries are often advised to boost revenues — by raising taxes. Boosting tax revenue to help reduce debt burdens and balance budgets is more effective than cutting government expenditure, argued the International Monetary Fund in a recent advisory note. Sub-Saharan Africa’s tax revenue as a share of gross domestic product tends to lag other economies — representing 13% of GDP, compared to 18% which was the average in emerging economies globally in 2022. But while it encourages African countries to enact measures that will generate more income from taxes, the IMF cautions that such moves should be handled with care “to avoid negative effects on poverty and inequality.” Kenya’s fierce protests have signaled the difficulties that can arise when a government’s revenue targets clash with the reality of a cost of living crisis. Increases in consumption taxes or import tariffs for essential goods should be accompanied by initiatives like cash transfers “to protect vulnerable populations,” the IMF said.

Protesters storm Kenya parliament amid Haiti deployment

NAIROBI — Protesters on Tuesday stormed Kenya’s parliament in Nairobi, getting past a heavy police cordon as MPs voted to pass an unpopular finance bill containing a raft of tax hikes. A section of the parliament building was set on fire and protesters ventured into some of the rooms in parliament, with police struggling to gain control.

Police fired live bullets outside parliament in a bid to stop the protesters. As of press time, Amnesty International had reported that at least five people have been killed and dozens wounded in the protests. There has now been at least one credible report of an internet disruption to Kenya.

The protests, taking place on the same day 400 Kenyan police officers left the country for Haiti to lead a UN-backed security mission, were predominantly organized by young Kenyans over social media platforms.

A series of abductions of several social media influencers and mobilizers associated with the youth-led protests is also fuelling public anger against President William Ruto’s government. Amnesty International said in a statement on Tuesday that 21 Kenyans had been illegally abducted or disappeared over five days by “uniformed and non-uniformed officers” in connection to the protests.

“It is inconceivable that law enforcement officers are the perpetrators of illegalities and we will unmask and take actions against these rogue criminal elements putting our police in ruin,” said Faith Odhiambo, president of the Law Society of Kenya, on Tuesday.

ANC and DA negotiate ministerial roles in coalition government

South Africa’s two biggest parties remain confident they will form a cabinet for their landmark coalition government before the end of the week, despite signs of tensions in negotiations over ministerial posts, three people involved in the talks told Semafor Africa.

President Cyril Ramaphosa and Democratic Alliance leader John Steenhuisen held talks on Monday, their second meeting in three days. The party leaders are working to flesh out an agreement between their two parties — historically rivals in South Africa’s legislature.

The DA has said it wants 11 ministers and for Steenhuisen to be Ramaphosa’s deputy president.

Two leaked letters, one from the DA’s federal chair Helen Zille to ANC secretary Fikile Mbalula, and a counter salvo from Mbalula, created a picture of warring partners going through their first serious public disagreement.

Zille insisted power had to be shared in proportion to each party’s vote proportion in the May 29 poll. Her party claimed 22% to the ANC’s 40%.

Two ANC officials and one from the DA told Semafor Africa that, while the letters looked hostile, the parties were committed to reaching a conclusion this week.

The ANC officials said their party was opposed to giving the number of cabinet positions sought by Zille. Ramaphosa asked the DA to provide six names to be considered for inclusion in the cabinet, which is expected to be made up of 28 people, the sources said.

— Sam Mkokeli in Johannesburg

Ghana agrees a deal with bondholders

Ghana said it has reached an agreement in principle that would see two groups of bondholders accept billions of dollars in losses, helping the country to carve a path towards debt relief and economic recovery.

Bondholders would forgo around $4.7 billion in the cash they are owed, offering cash flow relief of up to $4.4 billion under the agreement, the government said. The concessions will offer a 37% haircut on $13 billion of Ghana’s external debt, but they “are necessary given the constraints faced by the Republic of Ghana and are essential to achieve the debt relief required to restore debt sustainability to the country,” the government wrote in a statement.

Ghana has been aiming to restructure its debt since a December 2022 default marked an aggravation of the country’s economic crisis. Its present agreement follows a successful negotiation with creditors, including China and France, earlier this month to restructure $5.4 billion in loans. These agreements are necessary for Ghana to draw from a $3 billion relief loan agreed with the International Monetary Fund.

Ghana said its newest agreement with bondholders is “compatible” with the parameters of its IMF deal. The IMF will meet on June 28 to review its Ghana program. The deal will see the bondholder groups offered preferential terms on new bonds, and will include a mandate on the government to “ensure certain other creditors do not receive better net present value terms.”

— Alexander Onukwue

Governance

🇷🇼 Rwanda’s President Paul Kagame launched his campaign for next month’s election, which will see him extend his 24-year rule. He has defended the decision of courts to bar some opposition figures.

🇲🇼 Malawi’s newly-appointed Vice President Michael Usi was sworn into office. The 55-year-old former comedian replaces former VP Saulos Chilima, who died in a plane crash this month.

🇳🇪 Niger’s junta confirmed that rebels damaged a newly opened pipeline carrying crude oil to neighboring Benin. The group says it is fighting for the release of former President Mohamed Bazoum, who was overthrown in a coup last July.

🇳🇦 Namibia’s high court overturned two colonial-era laws that criminalized same-sex acts between men.

Geopolitics

🇳🇪 Niger’s military government on Thursday revoked the permit of French fuel producer Orano. The company was licensed to work on one of the world’s largest uranium mines.

Tech

🇿🇦 South African online retailer Takealot described the expansion of two Chinese competitors, Shein and Temu, as “a growing concern that threatens the nation’s reindustrialisation and localisation efforts.”

🇳🇬 Nigerian fintech company Flutterwave laid off 3% of its staff — about 24 people — on Monday, citing a need to use its resources more efficiently.

Deals

🇳🇬 The African Development Bank and InfraCredit, a Nigerian investment firm, signed a $15 million loan agreement to strengthen InfraCredit’s capital base.

🌍 UK development finance institution British International Investment committed $75 million to a bond by Symbiotics Investments, to finance small-scale green projects across Africa and parts of Asia.

International Finance

🇹🇿 The International Monetary Fund’s executive board on Thursday approved $786 million in funding for Tanzania to help tackle climate change. It also completed a separate review allowing for the disbursement of $149 million for budget support.

Madagascar hopes its capital Antananarivo will see reduced congestion following the launch of a new cable car. The president and several government members traveled on the gondola lift for its inaugural tour. The project was completed by two French companies at a cost of $162 million, more than half of which was funded by France’s public investment bank Bpifrance. Antananarivo, which today has a population of 3 million, was planned for just 300,000, and its existing traffic infrastructure has not kept up with demand. The president has been criticized for prioritizing a project that many might not be able to afford: Tickets will cost between 3,000 and 5,000 Malagasy ariary ($0.60 to $1.10).

• TikTok in denial as US ‘ban’ approaches.
• US Supreme Court to hear challenge to state bans on gender-affirming care.
• Fresh concerns over India’s revived river-linking project.

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Happy independence day to the people of Mozambique 🇲🇿!!

Happy independence day to the people of Madagascar 🇲🇬!! (June 26)

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