Africa

The number of items imported from 10 least-developed countries that China is waiving all tariffs on, starting today, Dec. 1. This covers 98% of the mostly agricultural products imported from African countries including Benin, Burkina Faso, Guinea Bissau, Lesotho, Malawi, São Tomé and Principe, Tanzania, Uganda and Zambia.

Probe puts South African president’s future in jeopardy

THE NEWS

Cyril Ramaphosa’s position as South African president is in jeopardy after an investigation into a stash of cash stored in his sofa found he may have broken rules that could lead to his impeachment

The findings of an independent parliamentary panel that investigated the theft of a large sum of cash from his private game farm threaten his bid to be re-elected leader of the ruling African National Congress (ANC) in two weeks. But now Ramaphosa is said to be considering resigning over the panel’s findings that he may have violated the constitution, Bloomberg reported. He is expected to address the nation imminently.

Even if the president overcomes the controversy to secure a second term, in-fighting could force him to share power with party foes opposed to his reform agenda.

Ramaphosa was hailed as an anti-corruption champion when he was elected unopposed as the party’s leader, automatically becoming president, following the resignation of his embattled predecessor Jacob Zuma in February 2018.

But on Wednesday the panel concluded there was evidence that Ramaphosa may have committed “serious misconduct” that exposed him to “a conflict between his official responsibilities and his private business.”

The investigation was launched after former spy chief Arthur Fraser in June said $4 million in cash was stolen from Ramaphosa’s Phala Phala farm in the northern Limpopo province. Fraser, a Zuma ally, accused Ramaphosa of kidnapping, bribery and acting unlawfully by allegedly authorizing the pursuit of suspects in the burglary. He also claimed the stolen cash was related to money laundering.

Ramaphosa did not report the theft to the police, which took place in 2020. Fraser’s allegations were the first time details of the burglary were publicly disclosed.

Ramaphosa has said the money, which was stashed in a sofa, was from the proceeds of cattle farming and far less than the sum alleged by Fraser. He denied wrongdoing in a statement issued following the publication of the report.

The findings will be debated in parliament on Dec. 6, followed by a vote on whether to launch impeachment proceedings. A resolution to remove him as president can only be adopted if at least two thirds of MPs vote to remove him.

The ANC’s elective conference, held every five years to select its top leaders, will begin on Dec. 16.

The controversy threatens Ramaphosa’s bid to lead the ANC into elections in around 18 months.

“I don’t think Ramaphosa should even be allowed to stand as a candidate. He’s got very serious issues to answer to,” said Carl Niehause, a Zuma ally and former ANC spokesman who has been a vocal critic of Ramaphosa.

Siviwe Gwarube, chief whip for the main opposition party Democratic Alliance (DA) party, said Ramaphosa could not govern properly until the matter was resolved. “If, for instance, the panel finds that impeachment proceedings must be instituted against him, we can’t have a head of state that has that hanging over his head,” she said.

“People must know what went on at the president’s farm and it can’t be done on the whims of the ANC. Our view is that this is urgent,” added Gwarube.

Ramaphosa’s supporters argue that he is best equipped to overcome the country’s challenges, which include high unemployment and an energy crisis that has led to rolling blackouts which have choked economic growth.

Oscar Mabuyane, a Ramaphosa ally who is one of three nominees for the deputy president position, said he hoped conference delegates would attend with the goal of reinvigorating the ANC, which looks set to see its share of the popular vote fall below 50% for the first time at the May 2024 general election, according to several polls..

“We know very well that his leadership role and intervention can help the ANC to regain its strength,” Mabuyane told Semafor.

JAN’S VIEW

Some of President Ramaphosa’s opponents have called for him to step aside but, in the wake of Wednesday’s report, he remained steadfast in denying any wrongdoing.

Professor Richard Calland, a law professor at the University of Cape Town, told me the tradition of the newly elected party president securing the other leadership spots for allies was under threat. “It’s possible that none of his other five candidates would win those other positions and he would end up with… an unfriendly group of colleagues at the top of the ANC,” said Calland. “He might even be isolated.”

Such a scenario could hinder Ramaphosa’s attempts to implement his agenda.

ROOM FOR DISAGREEMENT

Whether Ramaphosa is re-elected or not, the Phala Phala controversy highlights the lowering of expectations around politics in South African society, according to political analyst Ebrahim Fakir.

In contrast to the hope that greeted Ramaphosa’s elevation to president, Fakir said such controversies, and the questions raised about public officials, deepend the “quagmire” in which South African society finds itself in, “from both a public ethics and a public morality perspective.”

Countries across Africa are struggling to control soaring inflation, with many nations experiencing double-digit increases in food costs. Much of this has been due to the war in Ukraine, which has reduced access to goods ranging from seeds and fertilizer, creating scarcity and pushing up prices.

Like their counterparts in the other parts of the world, African central bankers have mainly opted to increase interest rates in an attempt to tame inflation. The main lending rates were raised last week in Africa’s two largest economies — Nigeria and South Africa — and Kenya. Faced with annual inflation at a 21-year high of 40%, Ghana’s central bank hiked its interest rate this week by a whopping 250 basis points to 27%.

Angola and Zambia bucked the trend last week by holding their rates at 19.5% and 9% respectively.

Semafor Africa comes to Washington D.C.

Semafor Africa will host its first major event, the Semafor Africa Summit, on Dec. 12 in Washington D.C. on the margins of the White House’s US-Africa Leaders Summit. We have a packed day of conversations with key African and US government and business leaders, tech entrepreneurs, innovators, and investors.

The many names we’ll have live on stage include Akim Daouda, CEO of Gabon’s sovereign wealth fund, Cina Lawson, Togo’s digital minister, David Rubenstein co-founder of global private equity firm Carlyle Group, and Iyinoluwa Aboyeji, founder of Future Africa.

You can RSVP here to attend in person or watch our live streams on the day.

A governance reset is coming to African tech

Emeka Ajene, lead partner at Africa-focused advisory firm Africreate, and publisher of Afridigest.

The global market downturn has finally caught up to African tech. After a banner 2021 that saw a record amount of capital raised and an explosion in unicorns minted, the pendulum has swung: what was once a founder’s market is now an investor’s market.

In light of this new reality, African founders should not just expect a reset in valuations, deal velocity, and capital availability, but they should expect a reset in governance practices too.

This is especially so after the myriad allegations of bad behavior that have surfaced this year at Nigeria’s Flutterwave, Egypt’s Capiter, Cameroon’s Healthlane, and multiple other VC-funded startups.

When valuations were soaring and FOMO was widespread, some investors were more likely to turn a blind eye to discipline, diligence, and duty under the banner of ‘founder friendliness’ in order to get deals done. But in the current environment, a renewed focus on governance guardrails and officious oversight should be expected.

While that will take many forms, one development worth watching is the rise of new investments being contingent on founders undertaking executive coaching. In an environment replete with young, first-time founders, many of whom lack significant professional experience, this should be welcomed.

While that’s just one example of many, it speaks to the new normal. And although this renewed focus on governance might be a bit off-putting to those in the trenches now, good governance and the gains from it will only improve the African tech ecosystem’s attractiveness over the long-term.

One Good Text With ... Hannah Ryder

• New research into Chinese overseas foreign direct investment between 2003 and 2021 showed the preferred destination for funds was Asia. More surprisingly, African countries lagged behind Latin American nations, particularly Brazil and Chile. The “comparatively small share of FDI that’s gone to Africa during that period did take some scholars by surprise”, according to the China Global South Project.
• African football teams competing in the World Cup have harnessed the power of the diaspora to become more competitive. All five of the continent’s teams are led by home-grown coaches, four of whom built their careers in top-tier European football. African football has become “more open to the political and economic power and expertise of the diaspora,” writes Sean Jacobs in the New York Times.
• Nigerian author Chimamanda Ngozi Adichie has said she is concerned so-called cancel culture has created an “epidemic of self-censorship” that stifles curiosity and creativity. In a lecture on freedom for the BBC, Adichie said literature was increasingly viewed “through ideological rather than artistic lenses”.

Namibia decolonizes

Namibia pulled down the statue of Curt von François, a German colonial officer, from outside the Windhoek City Council building in the country’s capital late last month. The move, championed by the anti-colonial activist group called A Curt Farewell, is part of a broader decolonisation movement in southern Africa and other parts of the continent. In 2015, student activists at the University of Cape Town successfully led the #RhodesMustFall call to take down a statue of former colonial ruler Cecil Rhodes.

If you’re enjoying the Semafor Africa newsletter and finding it useful, please share with your family, friends, custom upholsterers and decolonizers. We’d love to have them aboard, too.

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— Yinka