Africa

1. East Africa’s mining boost
2. South Africa’s optimism
3. Africa braces for Trump
4. Sub-Saharan debt costs soar
5. Cocoa yields decline

A memorial that ‘aims to right a 110-year-old wrong.’

East Africa’s mining prospects

East Africa is likely to see increased interest from mining companies, many of which are smarting from disputes with military governments across the Sahel, the head of a major gold mining firm told Semafor.

West African countries have traditionally been hotspots for miners but a number of companies are locked in disputes with military administrations in the region. In recent weeks, several companies have launched arbitration cases against authorities in Burkina Faso, Mali, and Niger. Last week Canadian miner Barrick suspended operations in Mali after the government seized control of its gold stocks, reportedly worth $245 million.

“Now you have what’s going on in West Africa, there should be a little more investment into East Africa,” Stephen Mullowney, CEO of Canadian miner TRX Gold, said in an interview. He cited Ethiopia, Kenya, Mozambique, and Tanzania — the latter of which TRX Gold is already operating in — as countries that are likely to see an uptick in interest.

South Africa’s economic recovery

South Africa’s beleaguered economy is showing signs of recovery, its central bank governor said. Growth this year in Africa’s biggest economy could be close to 2%, hardly a breakneck pace but a distinct improvement following years of relative stagnation. The election of a coalition government that includes a pro-business party was one of the key enablers of the turnaround, Governor Lesetja Kganyago told Reuters at the World Economic Forum in Davos, leading to reforms in transport and energy infrastructure and a rethinking of the immigration system. His comments came as new data showed South Africa’s annual inflation rate was a lower-than-expected 3% in December, raising the prospect of an interest rate cut this month.

Africa waits for new US policies

African policymakers are scrambling to work out how their countries will be affected by the return of US President Donald Trump to the White House. South Africa’s central bank governor, speaking in Davos, said Trump’s presidency could threaten the country’s economic recovery by pushing inflation beyond the central bank’s target level. In Mauritius, a deal for the island-nation to secure control of the nearby Chagos archipelago from the UK needs Trump’s go-ahead because a US military base is located on Chagos’ largest island, Diego Garcia. Washington may block the agreement due to the base’s strategic importance, according to The Diplomat. Meanwhile, Trump’s executive orders for the US to withdraw from the World Health Organization and the Paris climate agreement will “make China more central” in Africa, analyst Cobus Van Staden told Voice of America.

Interest payments on debt are skyrocketing

Interest payments on long-term debt in sub-Saharan Africa rose nearly seven-fold to $26 billion between 2010 and 2023, according to the World Bank. The increase came as the region’s foreign borrowing doubled to $864 billion within the period. Mozambique and Senegal grappled with particularly severe debt pressure. The continent’s worsening debt crisis has left some countries spending more on debt repayments than vital services such as health care or education. Though China is one of the continent’s major creditors and is often vilified for its lending practices, Africa has also borrowed heavily from multilateral financiers such as the World Bank and International Monetary Fund.

— Alexander Onukwue

Ghana delays cocoa delivery

The number of metric tons of cocoa beans Ghana delayed delivering in the previous 2023/24 season to the current one due to poor output. Production of the crop, one of the country’s main exports, has dropped to a “two-decade low,” a parliamentary committee in Accra heard this week. The world’s second-largest cocoa producer has been beset by challenges in recent years. Analysts say unlicensed gold miners are encroaching on farmland for the crop, contributing to the fall in production, while climate change and tree disease have also been blamed for the lower yields.

Moving beyond identifying barriers to achieving practical, scalable interventions — The Next 3 Billion at Davos will discuss emphasizing collaboration between public and private sectors to mobilize resources and technology for global good.

Semafor’s Yinka Adegoke will moderate a conversation with Phuti Mahanyele-Dabengwa, CEO of Naspers South Africa, and Simi Nwogugu, CEO, Junior Achievement Africa to discuss digital upskilling and inclusion.

Jan. 23, 2025 | Davos, Switzerland | Request Invitation

Tech & Deals

🇳🇬 Nigeria’s telecoms regulator approved a 50% price increase for service providers, a move telecom operator MTN said would ensure “long-term sustainability of the telecoms industry.”

🇿🇦 South African insurance-tech company Naked raised $38 million in new funding from existing investors including the International Finance Corporation and Germany’s development finance institution DEG.

Geopolitics & Policy

🇰🇪 Kenya sent more police officers to Haiti, bringing the total deployment to more than 600, as part of a multinational security mission aimed at quelling gang violence in the country.

🇨🇩 Belgium appointed an investigative judge for a case filed by DR Congo alleging that Apple knowingly sourced “blood minerals” from armed groups in the country — a claim the firm strongly disputes — according to lawyers for the African country.

Business & Macro

🇰🇪 Kenya’s government said it would allow citizens of most African countries to visit without requiring prior authorization.

Climate & Energy

🇲🇿 TotalEnergies further delayed the start of its $20 billion liquefied natural gas project in Mozambique over ongoing political uncertainty after last year’s disputed presidential elections.

A memorial of South Africans who died during World War I was unveiled on Wednesday in Cape Town. It pays tribute to 1,772 predominantly Black non-combatants who died while serving in Britain’s armed forces fighting in what were then colonial territories in Africa. Each veteran is remembered with an African iroko hardwood post bearing his name and the date of his death, Al Jazeera reported, in a memorial that “aims to right a 110-year-old wrong.” It is part of a wider project by the Commonwealth War Graves Commission to address inequalities in commemoration. An estimated 100,000 Black Africans died while fighting for the Allies on the continent.

Joe Biden’s White House homeland security team urged Trump’s team to focus on a number of major threats that include Iran’s plots against dissidents and current and former US officials, Semafor’s Morgan Chalfant scooped.

Liz Sherwood-Randall, Biden’s top homeland security adviser, briefed the incoming Trump team headed by Stephen Miller on seven top priorities.

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— Alexis Akwagyiram, Preeti Jha, Alexander Onukwue, and Yinka Adegoke.