Africa

1. Nigeria’s economy
2. Private equity trends
3. Tuition fees row
4. Studying in Britain
5. Deal or no deal?
6. Bumpy ride

Also, the nonagenarian who scaled Mount Kenya.

Welcome to the 250th edition of the Semafor Africa newsletter! We’ve been obsessing over higher education. In our two main stories, we look at a new system of university tuition fees in Kenya that threatens to punish poorer students, and the choices made by Nigerian students after a change in Britain’s migration policies. With a new academic year about to start in much of the world, both stories tap into much deeper issues.

Kenya’s tuition fees row reflects the government’s desperation to reinvigorate its faltering economy. But it threatens to reignite youth-led protests that have rocked the country in recent weeks.

My story about the sharp fall in the number of Nigerians seeking a British study visa reflects the impact of the naira’s devaluation, which for many makes it too expensive to move abroad. But it also shows anti-migrant policies imposed by Britain’s erstwhile Conservative government are having the desired effect.

African students, understandably, will find the UK less appealing when faced with greater restrictions on bringing their families. And for many, the sight of white supremacists staging anti-migrant riots in British cities earlier this month will have reinforced the sense that there are more welcoming places to live.

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Nigeria’s Q2 economic growth

How much Nigeria’s economy grew year-on-year between April and June 2024, compared to 2.98% in the previous quarter. Growth in the second quarter was largely driven by higher oil output, data from the country’s statistics office shows. Crude oil production rose to 1.41 million barrels per day in the period, up from 1.22 million barrels a year earlier. The improved oil output helped offset the impact of the weakened naira currency on other sectors.

The rise of venture debt

African entrepreneurs are increasingly turning to debt to raise money as equity financing becomes more competitive. The median value of a debt deal rose 63% to $8.8 million between the first half of 2023 and the corresponding period this year, according to the African Private Capital Association (AVCA). Debt deals between April and June were worth $295 million, not far off the $322 million raised from equity deals within the period, AVCA’s data says. Venture debt raised by African entrepreneurs has been increasing in recent years, with the value of such deals doubling to $1.5 billion in 2022. “The increased uptake of venture debt indicates a strategic adaptation to presently unfavourable market dynamics, given the increasing competition for traditional equity fundraising,” AVCA said.

Kenya student fee change sparks fresh protest threat

Higher university fees in Kenya threaten to reignite youth-led protests against the government.

Critics say poorer students will miss out on higher education.

The new model, called the University Fund, moves more costs to students through higher fees while reducing government funding and scholarships. It is being rolled out ahead of the new academic year. The plan will place students in different categories depending on their family income, the size of their family, and the number of children in school.

President William Ruto “should stop killing the education system in this country by making it a preserve of the rich,” said Paul Ongili, a lawmaker from the opposition Orange Democratic Movement party, adding that the new system “discriminates against students from poor families.”

Student leaders and lawmakers have called for demonstrations if the changes go ahead. More than 60 people died during demonstrations in recent weeks. Similar unrest could scupper another policy aimed at tackling the country’s deepening economic crisis. Other recent demonstrations forced the government to scrap tax rises.

Ruto has argued that it does not punish poorer students. “We are increasing scholarship and loans for students from vulnerable families from 80% to 95%,” he said in a speech this month.

— Vivianne Wandera in Nairobi

September 24, 2024 | New York City | Request Invitation

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Nigerian students are avoiding the UK

The number of Nigerian students moving to the UK has more than halved following British policy shifts aimed at curbing migration.

Under a rule change that came into force in January, foreign postgraduate students are no longer allowed to bring family members to Britain. People from Nigeria make up one of the UK’s biggest groups of foreign students and in recent years brought more relatives than those from any other country.

Home Office figures show the number of “main applicant” student visas granted to Nigerians in the first six months of 2024 was 4,669, compared with 14,772 in the corresponding period last year — a 68% drop.

The fall in Nigerian student visas granted — 10,103 — accounted for 43% of the overall drop in overseas student visas.

Overall, the number of students arriving from African countries fell. In the few cases where the number of student visas granted rose, the increases were small. The number of Kenyan students moving to the UK rose from just 351 to 491.

The shift reflects the success of UK policies aimed at cutting immigration. Skilled Nigerians are increasingly choosing US and Canadian universities, causing a decrease in enrollments that has deepened a funding crisis in British universities.

A broader drop in non-EU overseas students moving to the UK has prompted panic in British universities, which rely on tuition fees from that group for nearly 20% of their total income. Many universities now fear funding shortfalls amid concerns that international students will not return.

Senegal reconsiders energy deals

Senegal set up a committee tasked with reviewing the country’s oil and gas contracts.

The committee, whose first meeting was led by Prime Minister Ousmane Sonko, will “review these various agreements, re-examine them and work to rebalance them in the national interest,” he announced last week.

Sonko did not provide a timeline for the work of the committee, which comprises around 20 members with expertise in law, tax, and energy.

The main assets likely to be scrutinized are the offshore Sangomar oil field, and the Greater Tortue Ahmeyim liquefied natural gas project, which straddles the Senegal-Mauritania border. It is expected to produce on average 2.3 million tonnes of gas per year.

While in opposition, both Sonko and President Bassirou Diomaye Faye railed against energy deals signed by the government of former president Macky Sall.

Since taking power in April, the new government has undone many decisions made by the former administration. Last July, Dakar broke a €700 million ($778 million) contract signed last March with Saudi company Acwa Power for the construction of a water desalination plant.

It has launched tax audits of various industries, including the media and the mining sector.

— Joël Té-Léssia Assoko

Uber, Bolt under pressure in Kenya

Ride-hailing app Bolt has announced a 10% increase to its fees in Kenya, barely a week after Uber announced a similar 20% price hike in the country. Little App, which also offers ride-hailing services in Kenya, last week announced a 15% price hike.

Soaring operational costs including the price of fuel have led frustrated drivers in Kenya to organize against the apps in recent months, putting them under pressure to raise prices. Some have resorted to offering alternative price lists and renegotiating fares with customers, ignoring fares displayed on the app.

Many drivers use the walkie-talkie app Zello to share information and mobilize in real-time. In some cases, drivers have coordinated action to forcibly ground vehicles with Uber and Bolt stickers.

Bolt said its latest move would help drivers in Kenya “earn a fair wage, which in turn will allow them to continue providing the reliable and safe transportation our riders depend on.”

Drivers in Nairobi told Semafor Africa that, while welcome, the price hikes remained inadequate. “When you factor in the commissions taken by the app, the price of fuel, the cost of maintaining and servicing the car and the cost of living, many drivers are barely making ends meet,” said Abel Musyoka, who drives with Bolt and Uber. “We are still demanding higher prices.”

— Martin K.N Siele in Nairobi

Health

🌍 The World Health Organization on Monday unveiled a six-month plan aimed at stopping outbreaks of mpox. The organization said $135 million is required to fund the plan, which will improve access to vaccines and increase the number of health care workers in affected countries.

Governance

🇲🇱 Mali’s junta government on Saturday suspended broadcasting by French private news channel LCI on its territory for two months, alleging “false accusations” were made on air against the army and its Russian allies.

🇹🇳 Tunisia’s President Kais Saied on Sunday announced a cabinet reshuffle replacing 19 ministers. Saied said the changes ahead of the Oct. 6 elections were necessary to defend national security.

Tech

🇧🇼 Elon Musk-owned satellite internet service Starlink officially launched in Botswana this week. The roll-out comes three months after Starlink secured a regulatory license in the country.

Deals

🌍 African B2B commerce startups Wasoko and MaxAB have completed their merger. The newly-formed company will operate in Kenya, Tanzania, Rwanda, Egypt, and Morocco.

🇿🇦 South African consumer privacy startup Omnisient has raised $7.5 million in Series A funding to support its expansion into new international markets.

Mining

🇧🇼 A 2,492-carat diamond was unearthed in Botswana by Canadian mining firm Lucara Diamonds. The gem is the largest diamond found in more than 100 years.

Geopolitics

🇪🇸 Spain’s Prime Minister Pedro Sanchez began a tour of West Africa aimed at curbing migration to the Canary Islands and to counter the Russian presence in the Sahel region.

🇩🇰 Denmark’s foreign ministry on Monday said it was shutting its embassies in Mali and Burkina Faso as part of a new Africa strategy. It will open embassies in Senegal, Tunisia and Rwanda.

Energy

🇸🇸 Malaysia’s state-owned energy giant Petroliam Nasional said on Monday it had initiated arbitration proceedings against South Sudan for allegedly blocking a $1.25 billion sale of its local assets.

Mountain climbing attracts enthusiasts of all ages who want to push boundaries — and that’s the case for one 90-year-old Eritrean-American who recently scaled Mount Kenya. Naigzy Gebremedhin climbed to the peak of the mountain, Africa’s second-tallest, on his birthday — marking the 14th time he’s made the trek. That’s not the nonagenarian’s only mountaineering feat: Gebremedhin has also climbed to the peak of Tanzania’s Mount Kilimanjaro, the continent’s highest point. The former dean of the Building College at Addis Ababa University said that when it comes to mountaineering, “advanced age is not a disadvantage” but added would-be climbers need to be well prepared for it.

• Kamala Harris will use human Donald Trump stand-ins, not AI, for debate prep.
• China encroaches on Japanese airspace
• Deadly militant attacks roil Pakistan.

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