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Chinese EVs in Africa, Ecowas’ breakaway threat, South Africa’s loadshedding milestone.͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
thunderstorms Nairobi
sunny Abuja
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July 9, 2024
semafor

Africa

Africa
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Today’s Edition
  1. Losses v loadshedding
  2. Battling a breakup bid
  3. Rwandan troops
  4. Kenya’s protests
  5. Boeing criticism
  6. Africa’s EV markets

Also, a record-breaking middle distance athlete eyeing Olympic glory.

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First Word

Welcome to Semafor Africa, where we embrace change. An obvious consequence of this year in which so many countries are holding elections is that we’re seeing new political leaders emerge with fresh policy agendas. That much is clear in this edition. West Africa’s regional bloc Ecowas plans to use Senegal’s fresh-faced new president to communicate with the sub-region’s military regimes since his youth and populist leanings are likely to make him an acceptable intermediary for junta leaders.

Further afield, the UK’s new government has already ditched the previous administration’s plans to deport migrants to Rwanda. As we’ve previously reported, the British government’s policies on everything from higher education to elderly care impact the lives of African migrants.

Looking ahead, Ghana’s next president — following an election in December — could determine the experiences of the country’s LGBT community following the passing of an anti-gay bill that is waiting to be signed into law. And, of course, we’re watching the US election campaign closely to report on what a Trump presidency could mean for African countries.

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1

Eskom expects a loss but keeps lights on

The annual loss that South African state-owned power utility Eskom is expected to publish in its financial results for the year to March, according to the Financial Times. Africa’s most industrialized nation recently passed the 100-day mark without Eskom cutting power. This marks the longest period in three years without load shedding — the blackouts introduced in 2008 to ration electricity. Eskom’s CEO told the FT that the company may make a profit for the year to March 2025, after clocking up combined losses of 111 billion rand ($6.1 billion) since 2019.

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2

Ecowas tries to prevent junta-led breakup

 
Alexander Onukwue
Alexander Onukwue
 
The leaders of Mali, Niger, and Burkina Faso (left to right), Reuters/Mahamadou Hamidou

West Africa’s economic and political bloc has launched a formal push to convince three junta-led member states to shelve their joint breakaway plan, with Senegal’s president Bassirou Diomaye Faye appointed special envoy to the disaffected nations.

At a meeting in Nigeria’s capital Abuja on Sunday, Ecowas chair President Bola Tinubu of Nigeria commissioned Faye to work “around the clock” in concert with Togo’s President Faure Gnassingbe to persuade Mali, Burkina Faso, and Niger to abandon their Alliance of Sahel States (AES) and remain Ecowas members.

They formed the AES as a defense pact last September, in the face of Tinubu’s threat to restore democratic rule in Niger through a military intervention. They declared their split from Ecowas in January. At the alliance’s first summit last weekend, Niger’s head of state Abdourahmane Tiani said their Ecowas departure is “irrevocable.”

A breakup of the bloc could “disrupt the freedom of movement and settlement of people” and worsen insecurity in West Africa, warned Omar Touray, president of the bloc’s commission.

Mali, Burkina Faso, and Niger have mutual borders and are battling insurgencies by affiliates of Islamist groups Al-Qaeda and Islamic State. Each is led by a military government, following coups that overthrew elected civilian administrations, and has pared down defense partnerships with France and the United States while increasing engagement with Russia.

AES nations are also eyeing a currency shakeup. →

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3

UN says Rwandan, Ugandan troops are fighting in DR Congo

Reuters/Djaffar Sabiti

Thousands of Rwandan troops have been fighting alongside rebels in DR Congo, United Nations experts have said in a newly-published report. The UN has warned that the fighting risks spilling over into a wider regional conflict.

The UN experts reviewed photos and drone footage. They said at least 3,000 to 4,000 Rwandan troops were working with M23 as of the report’s completion in April, at a “conservative” estimate.

Rwanda has de facto control over the rebel militia, the UN alleges, though Kigali has repeatedly denied that it has any involvement in the crisis. Rwanda is not alone in its reported backing of M23. On Monday, the UN also alleged that the Ugandan army has supported the group, and said that Kampala has allowed M23 troops to pass through Ugandan territory.

Last week, the DRC cracked down on “traitors” within its army, sentencing to death 25 soldiers who were accused of fleeing from battles with M23. Millions of people have been internally displaced as a result of the conflict in eastern DRC.

— Jenna Moon

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4

Kenya’s opposition backs Ruto’s plan to quell protests

Hundreds attended a concert for those killed in the protests; Reuters/Monicah Mwangi

Kenya’s opposition Azimio coalition has backed the government’s push for a national dialogue following weeks of demonstrations.

The multi-sectoral dialogue, fronted by President William Ruto, is scheduled to begin on July 15 and run for a week, featuring 150 participants from different groups.

It follows weeks of protests first sparked by opposition to a finance bill containing controversial tax hikes. The demonstrations have continued despite Ruto’s abandonment of the bill last month. Moody’s this week downgraded Kenya’s sovereign debt ratings, citing the government’s inability to introduce “significant revenue-raising measures in the foreseeable future.”

Former Prime Minister Raila Odinga, a five-time presidential candidate and leader of Azimio, said on Tuesday that “dialogue is the way forward out of the crisis we’re having in our country.” He spoke alongside Ruto, other government officials, and opposition leaders.

But Odinga’s stance prompted a strong backlash online. Protesters — many of whom are calling for Ruto’s resignation — have long maintained that they are opposed to dialogue and only want their demands met. Those demands include sacking the entire cabinet and the dissolution of parliament.

Ruto has scrapped the First Lady’s official budget and announced the planned dissolution of 47 state agencies in response to the protests. But protesters are planning more targeted interventions aimed at specific ministries, such as sports and health.

On Sunday, hundreds of Kenyans attended a concert in Nairobi to honor the dozens of people killed in the protests, a sign of continued support for the movement.

— Martin K.N. Siele in Nairobi

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5

Relatives of Ethiopia crash victims criticize Boeing plea deal

Reuters /Peter Cziborra

Plane-maker Boeing has agreed to plead guilty to a criminal fraud conspiracy charge to resolve an investigation into crashes involving its 737 Max aircraft. But the move, which saw Boeing agree to pay a fine of $243.6 million, has angered relatives of some of the 157 people killed when an Ethiopian Airlines flight crashed in 2019.

Many of those who lost loved ones wanted a criminal prosecution.

“Such a deal only widens our wound,” said a woman whose 29-year-old daughter was among those killed. “We haven’t seen any accountability but we are all expected to receive financial compensation and move on,” the woman, who asked to remain anonymous due to her fear of reprisal by Boeing, told Semafor.

Erin R. Applebaum, a lawyer representing 34 Ethiopian families of those on the Ethiopian Airlines flight, said the deal was “nothing more than a slap on the wrist.”

The plea bargain comes as Boeing builds up its presence in Ethiopia. This year the company announced the opening of its Africa office in Addis Ababa.

Ethiopian Airlines is also building financial stakes in a number of African airlines, including in Zambia and Mozambique. It continues to rely heavily on Boeing planes.

Samuel Getachew in Addis Ababa

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6

EU, US tariffs could boost Chinese EV sales in Africa

BYD Atto 3 SUV/Alexander Migl/Creative Commons license

Major Chinese electric vehicle manufacturers are setting up shop in Africa and the Middle East, eyeing alternative markets amid new trade restrictions in Europe and the United States.

EV brand Neta last month opened its first store in Africa, located in Nairobi. It plans to open 100 dealerships in 20 countries on the continent, with the goal of selling 20,000 vehicles in the region over the next three years. The company sees Kenya as “a gateway to southern, East and Central Africa.” XPeng, another Chinese EV brand, in June also announced that it would begin sales of two of its EV models in Egypt — the G9 SUV and the P7 sedan.

China’s largest EV company, BYD, has also been building up its presence on the continent. This year it opened a dealership in Kigali, Rwanda, selling its Atto 3 SUV which it also rolled out in South Africa last year.

The push into Africa by EV companies comes amid the imposition of import tariffs of up to 38% on Chinese electric vehicles by the European Commission in June, over concerns that subsidies enjoyed by the Chinese companies were giving them an unfair advantage in the market. US President Joe Biden in May also quadrupled tariffs on EVs from China to 100%, from 25%, essentially locking them out of the American market.

Although the uptake of EVs in markets including Kenya, Egypt and South Africa is growing, Africa and the Middle East represent less than 1% of global EV sales.

— Martin K.N. Siele in Nairobi

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One Good Text

Ambassador Rama Yade is senior director of the Atlantic Council’s Africa Center, in Washington DC. She is also a senior fellow at its Europe Center. Yade was previously France’s permanent delegate to UNESCO and had been a minister in the French government from 2007 to 2010. In a surprise result over the weekend, France voted in a left-leaning national assembly to prevent the far-right taking control of government.

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Continental Briefing

Deals

Reuters/Tiksa Negeri

🇪🇹 African money transfer firm Dahabshiil and Safaricom Ethiopia’s M-Pesa signed a partnership deal. It will enable the Ethiopian diaspora to send money directly to M-Pesa mobile wallets.

🇸🇦 🇩🇯 Saudi Arabia’s Ajyal Petroleum & Energy laid a cornerstone last week for the construction of a $12.7 billion refinery project in Djibouti.

🇹🇿 Tanzania-based remittance startup Nala raised $40 million from a range of investors including Acrew Capital, DST Global, Norrsken22, and HOF Capital.

Geopolitics

🇳🇪 Niger’s military government withdrew a mining permit granted to Canadian miner GoviEx Uranium, which has operated in the country since 2007.

🇹🇿 🇪🇺 The European Union announced a $16.3 million grant for Tanzania to support women and the “blue economy,” which focuses on the sustainable use of ocean resources.

Tech

🌍 Google has announced the arrival of 110 new languages ​​in Google Translate, around a quarter of which come from Africa. The languages added include Fon, Kikongo, Luo, Ga, and Wolof.

🇸🇩 US messaging firm Gupshup, in collaboration with Meta and other partners, launched a telemedicine chatbot to provide healthcare access for Sudanese refugees in Egypt, Eritrea, Saudi Arabia, Libya, and Djibouti.

Governance

🇱🇷 Liberia’s President Joseph Boakai announced that he will cut his salary by 40%, a move his office said aimed to set a precedent for “responsible governance.”

Justice

🇨🇩 Two US citizens told a military court in DR Congo that the leader of the attempted coup in May threatened them if they did not participate. They denied involvement in plotting the attempted coup.

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Outro
Reuters/Manon Cruz

Kenyan middle distance runner Faith Kipyegon broke her own 1500 meter world record at the Paris Diamond League on Sunday. Kipyegon, the current world champion, eclipsed her previous record by 0.07 seconds to record a time of 3:49:04. The 30-year-old hopes to win her third consecutive 1500 meter Olympic title when she returns to Paris later this year. The athlete last year became the first woman to complete a 1500-5000 meters double at the World Championships and will try to repeat the feat at the Olympics.

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

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