• D.C.
  • BXL
  • Lagos
  • Dubai
  • Beijing
  • SG
rotating globe
  • D.C.
  • BXL
  • Lagos
Semafor Logo
  • Dubai
  • Beijing
  • SG


Zimbabwe’s new lithium mine, Wagner’s CAR base, Africa’s green bonds͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
sunny Goromonzi
snowstorm Mau Forest
snowstorm Bangui
rotating globe
July 6, 2023
semafor

Africa

Africa
Sign up for our free newsletters
 
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.

President William Ruto came to power last year after an inspired election campaign in which he tapped into the public mood by running as the “hustler” candidate who could relate to Kenya’s poorest citizens. But he inherited an economy with a debt problem and skyrocketing inflation. Since being sworn in 10 months ago, we’ve reported on how Ruto delayed paying public workers to avoid defaulting on debt repayments, endured violent demonstrations over the cost of living, and sought to ramp up remittances by signing deals to get more Kenyans working abroad. Our main story in this edition is about his decision to lift a ban on logging to create jobs and open up sectors of the economy that depend on forest products.

The Kenyan president’s move intersects with some of our other obsessions, specifically climate change and the way countries use their natural resources. Environmental campaigners have accused Ruto of hypocrisy given that he pledged to plant 15 billion trees over 10 years to tackle global warming and break the cycle of recurring droughts.

Today’s edition is infused with those obsessions — climate change and natural resources. The transition to clean energy to cut carbon emissions is behind the rise of green financing and the processing of lithium in Zimbabwe, for use in electric vehicle batteries. Both are featured along with a look at the likely impact of Europe’s new carbon border tax. For One Good Text, Marché Arends messages an energy economist about electricity rationing in South Africa, a country struggling to wean itself off coal-fired power stations.

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

Need To Know
Reuters/Philimon Bulawayo

🇿🇼 Prospect Lithium Zimbabwe formally opened a $300 million lithium processing plant on Wednesday in Goromonzi, about 50 miles southeast of Zimbabwe’s capital, Harare. The company is a subsidiary of China’s Zhejiang Huayou Cobalt. The plant has the capacity to process 4.5 million metric tons of hard rock lithium into concentrate for export per year and is set to position the country “as an emerging and competitive player in the global lithium value chain,” said President Emmerson Mnangagwa, taking advantage of a rapidly growing global demand for electric vehicle car batteries.

🇸🇸 South Sudan’s President Salva Kiir announced on Tuesday he will defend his seat in the general election set for December next year. This will be the first general election since July 2011, when he led the country to independence from Sudan. Addressing governing party supporters, President Kiir said he was committed to implementing the revitalized peace agreement signed in 2018 between him and long-time rival and current vice president, Riek Machar. Kiir was the first to announce his candidacy, but Machar is expected to announce his run soon as well.

🌍 African countries are turning to green financing to access low-interest bonds to mitigate rising global interest rates and massive debt burdens. Egypt — which spends 45% of its annual budget on debt-servicing costs — and Angola are both preparing Environmental, Social, and Governance linked debt issuances. This year, Egypt is set to become the first African country to issue a renminbi-denominated green bond with a $345 million partial credit guarantee from the African Development Bank. About 25 African countries are classified as being at high risk of debt distress.

🌍 Nine new African countries are set to receive 18 million doses of the RTS,S malaria vaccine over the next two years, the global vaccine alliance GAVI said on Wednesday. Joining Ghana, Kenya, and Malawi, the countries are expected to receive first doses during the last quarter of 2023. Africa accounted for about 95% of global malaria cases in 2021, according to World Health Organization records. The disease remains one of the continent’s deadliest, killing nearly half a million children under the age of five each year.

PostEmail
Stat

The amount Africa is expected to lose when a new European law imposing the first carbon border tax in the world comes into effect in October. A report by the African Climate Foundation indicates that affected sectors, including cement, iron and steel, aluminum, fertilizers, and electricity, are key drivers of African economies. According to the report, 0.91% of the continent’s combined GDP will be wiped out with the new Carbon Border Adjustment Mechanism ― equivalent to $25 billion at 2021 levels of GDP. The law, which will be applied gradually over the next three years, imposes tax on products exported from Africa to EU markets.

PostEmail
Anthony Langat

Kenya’s lifting of a logging ban has reignited a row over a “corrupt” agency

THE NEWS

NAIROBI — The lifting of a six-year ban on logging in Kenya has sparked outrage and once again put a harsh spotlight on the government’s mismanagement of the country’s forests.

In a speech on July 2, President Wiliam Ruto said logging would follow strict harvesting rules. But critics are concerned that the Kenya Forest Service, the agency responsible for managing public forests and issuing logging licenses, has not been reformed since being labeled “corrupt” by a government inquiry.

“By lifting this ban, president Ruto has prioritized profit over people and nature,” said Greenpeace Africa’s Community Manager Tracy Makheti who, like other environmentalists, expressed alarm at the government’s new policy. Greenpeace Africa is petitioning the government to reinstate the ban.

KNOW MORE

The logging ban was introduced in 2018 after public outcry over shrinking water resources blamed on the destruction of water towers — mountain forests that are key sources of water. The Mau Forest in the Rift Valley was one of the most affected water towers.

The National Assembly pleaded with the government to suspend logging in order to arrest the diminishing forest cover. It proposed that a ban would save the water towers. Though the effects of climate change were already a reality in Kenya with worsening droughts over the last decade, the government attributed the situation to increased deforestation in the country in its 2018-2022 climate action plan.

A 2018 taskforce set up to look into the forest service found that the agency specifically “oversaw wanton destruction of forests” and “executed plunder and pillaging of water towers.” But the recommendations of the report — which included an investigation and prosecution of agency officials, constitution of a caretaker management team, and a complete overhaul of forest management practices — were never implemented.

ANTHONY’S VIEW

For Ruto, the lifting of the ban in order to create more jobs in a sector that employs up to 50,000 people directly and another 300,000 indirectly may have been irresistible, especially with the economy struggling.

But the lifting of the logging ban has come at the wrong time. The right time would have been after the recommendations of the taskforce report had been implemented. While a new board was named with the change of government, nothing much has been done about bringing corrupt officials to book.

The 2018 taskforce found that corruption in the Kenya Forest Service led to destruction of indigenous trees in many critical forest areas, the introduction of irregular settlements and large-scale public infrastructure developments. The system is still the same and the institution still has a bad reputation, not to mention a slew of human rights abuse cases facing it for the violent eviction of indigenous people. In the absence of a purge at the Kenya Forest Service, the government may be entrusting public forests to an untrustworthy and inept institution.

The upside of this situation however is that the presiding cabinet secretary, Soipan Tuya is new, and the board is new. Kenya Forest Service has also stated that it has made changes in how it issues licenses to sawmillers to make it more transparent. This is an opportunity to redeem itself. Any success in spurring growth and creating employment in the timber and furniture business will be a plus for the government.

The bigger picture issue concerns the potential damage to the environment. Efforts to plant trees, such as the African Union-led $8 billion Great Green Wall Initiative to restore degraded landscapes, are looking to forestation to tackle global warming. The impact of climate change is already clear from recurring droughts that have gripped Kenya and neighboring countries in recent years. The lifting of the logging ban could open the door to abuses that deepen the problems of climate change, meaning an attempt to fix short term economic problems could cause long term pain.

THE VIEW FROM UGANDA

Uganda has also been struggling with illegal logging with the timber being trucked across the border to Kenya which has more demand for wood than it can supply — mainly for timber, poles, firewood and charcoal. Despite the Ugandan government’s logging ban in 2017 and a ban of the charcoal trade, the government’s efforts have been unsuccessful.

William Amanzuru, an environmentalist who runs an NGO called Friends of Zoka, said that the bans do not stop illegal logging, as government officials are often involved. “It is highly militarized because it is done by those who hold powerful military ranks in the Uganda People Defense Forces and also Uganda Police Force,” he said.

ROOM FOR DISAGREEMENT

Gerald Ngatia, the National Secretary of the National Community Forest Association is more concerned about the current high prices of timber caused by the ban. Lifting the ban, he said, was necessary to get timber and for industry locally.

“Following the lifting of the moratorium the other day, what we now need to ensure is the proper management of forests. Every forest station should have good forest management plans whereby if you are cutting a hundred, you should be able to restore the same hundred,” he said.

NOTABLE

  • President Ruto is still positive that his plan to plant 15 billion trees by 2032 in Kenya will succeed, reported Daily Nation.
PostEmail
One Good Text

South Africa is in a recovery phase, said the country’s electricity minister Kgosientsho Ramokgopa in a media briefing on the government’s energy action plan on Sunday. Independent Energy Economist Lungile Mashele gives her take.

PostEmail
Briefing

Untangling Wagner’s mining operations in Africa

Center for Strategic and International Studies

→ What’s happening? Russia’s Wagner group has a network of businesses, many of which hinge on the extraction of natural resources, in the Central African Republic (CAR) and Mali. The United States last week imposed sanctions against the Wagner-affiliated companies which it said “engaged in illicit gold dealings to fund the Wagner Group to sustain and expand its armed forces.”

→ What do analysts say? The Center for Strategic & International Studies (CSIS), a U.S. think tank, in a recent report stated that since 2017, Wagner — in coordination with the Russian state — has exchanged paramilitary services in African states for access to lucrative natural resources such as gold, gemstones, oil, natural gas, and timber.

“Its profitable resource exploitation activities have grown in importance in the wake of Western sanctions following the 2022 invasion of Ukraine,” wrote the report’s authors.

→ For example? CSIS looked at the Ndassima gold mine in CAR which it called one of the military group’s most significant gold mining operations. The think tank said Midas Resources, alleged to be a shell company linked to Wagner, has led operations for around three years.

“Wagner and its various shell companies have established relationships — both personal and legal, as in mining concessions — that will likely be difficult to dissolve and replace,” concludes CSIS. “It is uncertain who will control the Wagner network moving forward and how their priorities may alter the current state of activities.

→ What’s next for Wagner in CAR?

“It would be difficult for Moscow to remove Wagner from CAR then replicate its success with another entity,” CSIS associate director Catrina Doxsee, one of the report’s authors, told Semafor Africa. “As Russia debates the future of the Wagner Group and [its leader] Yevgeny Prigozhin struggles to retain some portion of his business empire, it seems likely that Moscow will attempt to install new leadership of Wagner in CAR without dismantling the existing operational infrastructure.”

Prigozhin’s exact whereabouts are unknown and it’s unclear whether his fighters will move to Belarus, as previously agreed. Semafor’s Jenna Moon has gathered insights into what we know so far.

— Alexis

PostEmail
Outro
Adam63/Wikimedia Commons

Tomorrow is World Kiswahili Language Day, marking three years since UNESCO adopted a resolution proclaiming July 7 as a day to raise awareness about Kiswahili’s history, culture and use. With over 200 million speakers, Kiswahili is one of the world’s most widely used African languages for communication in East, Central, and Southern Africa, and the Middle East. It is also the only African language within the Department of Global Communications at the United Nations. The choice of July 7 aligns with the same day in 1954 when the first president of Tanzania adopted Kiswahili as a unifying language for people in the struggle for independence. The theme of this year’s celebration is “Unleashing Kiswahili’s potential in the digital era”.

PostEmail
Hot on Semafor
  • White House officials are pointing to a pair of eye-catching stats to make the case that President Biden’s economic policies have been a world-beating success.
  • The two hottest days ever recorded happened this week. We rounded up expert insights on why we could see more record-breaking days ahead.
  • There’s one big problem with the speculation of ex-CEO Jeff Zucker buying CNN.

If you’re enjoying the Semafor Africa newsletter and finding it useful, please share with your family, friends, enthusiastic Kiswahili speakers, and hopeful South Sudanese voters. We’d love to have them aboard, too.

🇰🇲 Happy 48th Independence Day to Comoros!

🇲🇼 Happy 59th Independence Day to Malawi!

Let’s make sure this email doesn’t end up in your junk folder by adding africa@semafor.com to your contacts. In Gmail you should drag this newsletter over to your ‘Primary’ tab.

You can reply to this email and send us your news tips, gossip, and good vibes.

— Yinka, Alexis, Marché, Alexander Onukwue, and Muchira Gachenge

PostEmail