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Zambia’s China debt deal, Sierra Leone votes, Flutterwave’s IPO, Disney’s African odyssey͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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June 27, 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.

The world held its collective breath over the weekend when Russia’s Wagner military force was marching to Moscow after capturing the southern city of Rostov. The consequences of that brief mutiny could be felt for years to come in African countries that rely on Wagner to fight rebels and dissenting voices.

Russia has in the last five years wielded Wagner as a multipurpose tool to grow its soft power in Africa while generating funds through access to natural resources in several countries, most notably the Central African Republic and Mali. These relationships have been useful in the wake of Russia’s invasion of Ukraine, when it has needed non-Western allies and ways to circumvent sanctions.

Any reshaping of Wagner could radically alter Russia’s influence on the continent, be it through a drawdown of troops, African countries reappraising the risks involved in ditching the West in favor of Moscow, or other powers seizing the opportunity to bolster ties with nations on the continent. “U.S. and allied decision makers have a fleeting opportunity to present such nations with alternative, stable forms of assistance and, in doing so, counter Moscow’s growing footprint on the continent,” argues Catrina Doxsee in a commentary article for the Center for Strategic and International Studies think tank in Washington.

For today’s lead story, Yinka and I spoke to keen watchers of geopolitical trends to see how this may play out across Africa.

Also in this edition: Alex sat with the CEO of Africa’s best-funded tech company, Flutterwave, to ask about its long-expected IPO, we also spoke with China Global South Project’s editor to ask for his take on the Zambia debt restructuring, and we look at a big step forward for African animation with a new Disney series.

🟡 Follow Semafor Africa on Twitter for all our latest stories.

Need To Know
Reuters/Cooper Inveen

🇸🇱 Sierra Leone People’s Party (SLPP) candidate President Julius Maada Bio is leading in the country’s presidential election with over 60% of votes counted, according to the country’s electoral commission. A provisional results sheet showed Bio had received over 1 million votes so far. On Sunday, Bio’s main rival Samura Kamara alleged there were attempts to assassinate him. Final verified results will be announced within the next 48 hours, with the candidate who secures 55% of the total votes declared as the winner, the commission said.

🇰🇪 Kenya’s President William Ruto on Monday signed into law the controversial Finance Bill 2023, which was passed by a majority in the National Assembly last week after a third reading. Among the approved proposals was a 16% value-added tax on gasoline, up from 8%, and the introduction of a new housing levy.

🇷🇼 Sending asylum seekers to Rwanda, as per the UK government’s policy announced in April 2022, would cost about £170,000 ($216,240) per person, according to a recent government report. The Illegal Migration Bill being discussed in parliament is the UK government’s attempt to deter migrants from illegally entering the country. The UK’s Home Office said the estimated cost would include funds to be provided to the Rwandan authorities, the cost of flights as well as the amount needed to meet the costs incurred by the Home Office and Ministry of Justice.

🇺🇬 Joined by five Ugandan and French aid groups, 26 Ugandans sued French oil giant TotalEnergies on Tuesday over alleged human rights violations. The Tilenga exploration of 419 oil wells ― one third of them in Uganda’s Murchison Falls national park ― and EACOP, a 932-mile pipeline bringing crude oil to the Tanzanian coast, deprived communities of their land, the associations said in a statement. The groups are seeking reparations for the more than 118,000 people whose land has been wholly or partially expropriated due to the two TotalEnergies projects.

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Stat

The total value of credit approved by the IMF’s executive board for Senegal to “address macroeconomic imbalances by reducing debt vulnerabilities, strengthening governance, and delivering a more inclusive and job-rich growth,” according to an IMF statement on Monday. Of the total amount, $216 million will be disbursed immediately while the remainder will be accessed over a 36-month period. The IMF said its intervention comes at a time when Senegal faces rising food prices, insecurity in nearby countries, and “growing socio-political tensions ahead of the presidential elections next year.”

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Alexis Akwagyiram and Yinka Adegoke

Wagner’s Russia rebellion is creating uncertainty some African governments

THE NEWS

Barbara Debout/AFP via Getty Images

The Wagner private military group’s abortive mutiny in Russia risks destabilizing African countries where its troops have been deployed.

A number of African nations, including Mali, the Central African Republic (CAR), Libya and Sudan, rely on Wagner to fight insurgents, quell dissent, train local troops, and spread propaganda.

President Vladimir Putin, in a televised address on Monday, declared that Wagner’s leader, Yevgeny Prigozhin, will “be brought to justice” after the latter ordered his troops to march to Moscow on Saturday before later calling them off. Putin said Wagner fighters could sign a contract with the Russian military, return to their families, or move to Belarus.

“Wagner is not Russia anymore,” said Rama Yade, senior director of the Atlantic Council’s Africa Center, referring to the view widely held prior to the mutiny that the military force was inextricably linked to the Kremlin.

KNOW MORE

Wagner, founded in 2014, routinely operates in African countries for access to natural resources such as gold and precious stones. Analysts say this has become a crucial part of its business model generating millions of dollars which has helped Russia to evade sanctions imposed over the Ukraine war.

CAR President Faustin-Archange Touadéra has used Wagner to fight insurgencies since 2018. Mali’s military junta, whose leaders seized power in 2021, have also called on Wagner to fight Islamist rebels.

Wagner has been accused of carrying out human rights abuses in the CAR and Mali. Calls by the United Nations earlier this year for an independent investigation into possible crimes by Malian troops and Wagner fighters in March 2022 soured the UN’s relationship with Mali’s ruling junta. Earlier this month Mali called on the UN to withdraw its 13,000-strong peacekeeping force, Minusma, from the West African country “without delay.”

ALEXIS’ VIEW

Mali and the CAR are now in limbo. Wagner’s structure must change because Putin can’t allow a private force capable of mounting a rebellion to remain in its current form. The move to absorb Wagner fighters into the Russian army is the first stage of that transformation. Mali and CAR rely so heavily on Russian fighters that they will be seriously weakened if troops are redeployed in large numbers as part of that restructuring, which could also destabilize neighboring countries.

Mali’s military rulers formed a close alliance with Russia while growing more hostile to other foreign nations, who reacted by withdrawing peacekeeping troops. Minusma’s seemingly imminent exit will leave around 1,000 Wagner troops to fight militants linked to Islamic State and al Qaeda who have killed thousands of people in the last decade and control huge swathes of central and northern Mali. The use of aircraft, procured from Russia, also helped Mali’s rulers. But events in Russia call into question the extent of the support the junta will receive.

Wagner clearly no longer has the Kremlin’s backing and African leaders who lean on it must wait for power struggles in Russia to play out. They must also realize that Putin will prioritize stabilizing the situation at home and pursuing victory in Ukraine.

The implications could be dire for Mali, CAR, and countries around them. Both nations are fragile and at risk of falling deeper into disorder that could spill across borders. We’ve already seen those problems unfold in the Sahel where Islamist militants have attacked Burkina Faso, Chad and Niger in recent years. And CAR borders Sudan which is mired in a conflict that has spawned a growing humanitarian crisis.

Russia has used Wagner to expand its economic and political footprint in Africa. It’s been particularly effective as a propaganda tool that portrays Moscow as a trustworthy ally and demonizes France in its former colonies. Lagos-based risk analyst Cheta Nwanze, who monitors the Sahel, told me Wagner’s use as a geopolitical weapon that generates funds from African natural resources meant Moscow would find a way to maintain its presence on the continent.

“Russia needs to have a private military company to do its dirty work, so someone else will be found to take over what Prigozhin leaves behind,” said Nwanze, lead partner at SBM Intelligence.

The uncertainty probably means there may be a “brief respite” from the expansion of Wagner operations across the subregion, said Peter Pham, the former U.S. special envoy for Africa’s Great Lakes Region. “But nature abhors a vacuum and, inexorably, someone else will fill the void if security and proper governance do not.”

Read more details on this story here.

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One Good Text

More than two years after it defaulted, Zambia finally reached a $6.3 billion debt restructuring agreement with international creditors, including China, its largest bilateral lender. Eric Olander, editor of China Global South Project, has been following the story closely.

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Tech Talk
Alexander Onukwue/Semafor

An initial public offer by African payments startup Flutterwave is not yet close as the company is focused on business development operations, chief executive Olugbenga Agboola said.

“Obviously we have plans to do that but currently our goal is deepening market penetration, getting our customers where they want to be across the continent,” Agboola told Semafor Africa. He said plans for a public offer, which the company first acknowledged last August, has seen it rejig its executive team with hires, mainly new chiefs of finance and technology.

Founded in Lagos, in 2016, Flutterwave has secured hundreds of millions of dollars in investments by large firms like the U.S. firm Tiger Global to a private valuation of $3 billion (as of 2022). Part of its success as a business is built on long-term relationships with big clients like Uber, being the ride-hailing company’s online card payments processor wherever it sets up in Africa.

For all the talk of expansion and an IPO however, Flutterwave has been in the spotlight in the past year for allegations of corporate mismanagement (which the company has denied). It has faced a combative regulatory environment and account freezes in Kenya following multiple reports of fraud in its systems.

Agboola, one of the architects of a blacklist project between Nigerian fintech companies to fight fraud, described the problem as inevitable: “You can’t run a payments company if there’s no fraud, unless someone is lying to you. Bad actors sometimes will pass all [know your customer] procedures.” The anti-fraud project is still at infancy, he said, but is necessary to stop the spread of bad actors.

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Outro
Disney/Triggerfish Studio

Pan-African Disney Plus original animated series “Kizazi Moto: Generation Fire,” will be released on July 5 on the international streaming platform. Capetonian animation house Triggerfish, along with Oscar winner Peter Ramsey, produced the 10-part anthology series offering a “blend of mythology, science fiction and Afrofuturism.” The series features animators from six different African countries and is expected to be a game-changer for the continent’s animation industry. From cyborg cattle and flying minibus-taxis to radioactive octopi and contemporary urban landscapes, viewers will see a side of Africa that has not yet been explored.

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