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Tunisia: Despite experts’ warnings, President Saied wants central bank powers reviewed 

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Tunisian President, Kais Saied is championing a constitutional review that will allow the central bank to finance the budget directly by buying state bonds.

A distinction must be established between the bank’s function in battling inflation and its position in supporting the budget, President Saied said during Friday’s visit to the bank’s offices.

He also emphasised that the central bank was a public organisation and was not autonomous from the government.

Saied said that “the budget financing law which says that the bank cannot grant loan facilities or acquire bonds issued by the state should be developed”.

Former central bank governor, Marouan Abassi had warned against the move and insisted that allowing the bank to buy treasury bonds had real risks to the economy, including increased liquidity strain, rising inflation, and a decline in the value of the Tunisian dinar.

The detractors of President Saied’s position claim that an attempt to change the 2016 financial law would threaten the bank’s independence and raise the possibility of increased state involvement in monetary policy, particularly in light of the expanding fiscal deficit, the lack of financial resources, and the challenges associated with borrowing from abroad.

Although Tunisia and the International Monetary Fund (IMF) struck a preliminary deal in October and Saied declared this year he would not accept “diktats” and that subsidy cuts might trigger protests, talks on a $1.9 billion loan have stagnated.

According credit ratings agencies, Tunisia could default, like other African countries like Ghana, Zambia and Ethiopia, on its foreign debt despite the bulk of its debt being internal.

Politics

Mozambique’s top court affirms governing party’s victory in recent election

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The highest court in Mozambique affirmed Monday that the incumbent Frelimo party won the October election, sparking widespread demonstrations from opposition parties who claim the vote was manipulated.

Fears of fresh bloodshed have been raised in the nation already shaken by weeks of fatal protests after Mozambique’s top electoral court mostly confirmed the results of the country’s contentious October elections, reinforcing the Frelimo party’s decades-long hold on power.

The final decision on the election process rests with the Constitutional Council. Mozambique, a nation of over 35 million people in Southern Africa that Frelimo has ruled since 1975, is expected to see more protests in response to its judgement.

Mozambique operates a framework of a semi-presidential representative democratic republic in a multi-party system. The president of Mozambique serves as both the head of state and the head of government.

The government exercises executive power. The administration and the Assembly of the Republic have the authority to enact laws.

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Alliance of Sahel States opposes ECOWAS disengagement schedule

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The Economic Community of West African States (ECOWAS) withdrawal timeline has been rejected by the Alliance of Sahel States (AES), which is made up of Mali, Burkina Faso, and Niger.

The AES claims that the ECOWAS is attempting to destabilise their newly formed organisation.

During a meeting last week in Abuja, Nigeria, the regional organisation announced a six-month withdrawal period to give the three nations time to change their minds after their official departure date at the end of January 2025.

However, this decision is “nothing more than yet another attempt by the French and its auxiliaries to continue planning and carrying out destabilising actions against the AES,” according to the heads of state of the AES.

“This unilateral decision is not binding on the ESA countries,” the statement continues. Before the conference, they stated that their choice to leave the organisation was “irreversible.”

According to the president of the Ecowas Commission, this will be a “transition period” that ends on “July 29, 2025” to “keep the doors of Ecowas open.”

The three nations accused the bloc of neglecting to assist them in resolving their domestic security challenges and of imposing “inhumane and irresponsible” sanctions related to the coup.

The three nations that were involved in the coup have mostly rejected ECOWAS’ attempts to undo their withdrawal. They are creating their alliance and have begun thinking about how to issue travel passports independently of ECOWAS.

It is anticipated that they will finish giving their one-year notice of departure in January.

Visa-free travel to other ECOWAS members is a significant perk of membership, and it is unclear how this would alter after the three nations exit the group.

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