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Behind the News: All the backstories to our major news this week

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Over the past week, there were many important stories from around the African continent, and we served you some of the most topical ones.

Here is a rundown of the backstories to some of the biggest news in Africa that we covered during the week:

IMF in new push to ease Africa’s debt burden

During the week, multilateral body, the International Monetary Fund (IMF) authorized fresh loan interventions for Kenya and Malawi. For Malawi, it was $178 million by the Fund’s executive board, with an immediate disbursement of about $35 million.

Landlocked Malawi is currently experiencing severe shortages of vital imports like fuel, medicines, and fertilisers due to forex shortages. 58.8% of the country’s population currently live in extreme poverty.

The country devalued its currency by roughly 30% earlier this month in response to acute shortages of fuel, medications, and fertiliser caused by the forex shortages.

In Kenya’s case, a staff-level agreement was reached to unlock immediate access to a $682.3 million credit tranche. The agreement will also boost the current lending programme by $938 million as Kenya grapples with acute liquidity challenges caused by uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures next June.

Kenya will have access to a total of $3.88 billion, subject to the executive board of the Washington-based fund’s approval. According to the IMF, this would increase Kenya’s total funding under the current Extended Fund Facility and Extended Credit Facility arrangements to $4.43 billion.

The IMF is also “seriously considering” a possible augmentation of Egypt’s $3 billion loan programme. Five African nations have formally defaulted on their national debt: Zambia, Ghana, Ethiopia, Chad, and Sri Lanka. Zambia successfully applied for a debt restructuring plan under the G20 framework, a deal that has not yet been finalised.

Intervention to ease fears of repeat of Nigeria’s banknote scarcity saga

On Wednesday, Nigeria’s central bank reiterated that old 200, 500, and 1,000 banknotes meant to be out of circulation next month would continue as legal tender amid fear of renewed currency scarcity in the country.

Earlier, a statement by the Director of Corporate Communications of the CBN, Isah Abdulmumin, directed all its branches across the country to continue to issue different denominations of the old and redesigned banknotes in adequate quantities to deposit money in banks, stressing that every banknote that it had issued remained legal tender and should not be rejected by anyone.

After a serious cash shortage resulting from an attempt to remove excess money outside the banking system earlier this year, the announcement is expected to put an end to months of uncertainty.

It was believed that redesigning the country’s currency and the limited supply of the new notes were a deliberate plot by the then-outgoing president Buhari to check “vote buying” and frustrate politicians planning to unfairly tilt the process to their favour.

Meanwhile, Nigeria’s inflation rate has continued its upward movement for the tenth straight month, surging to 27.33% in October. It was a 0.61 percentage point increase from the 26.72% that was recorded in September. Posing a monetary dilemma for the apex bank as it hopes to manage the supply of currency to manage the inflation crisis, an intervention is necessary amidst growing concern about the unavailability of cash in circulation in some parts of the country.

US returns to Ethiopia but concerns remain over Somalia

Months after it stopped aid action in Ethiopia, the United States is set to resume food aid for people across the country. A statement by the US Agency for International Development (USAID) says the return of the aid follows the implementation of comprehensive reforms.

In June, the US temporarily stopped providing food aid to the northern region of Ethiopia after complaints of widespread donation theft. The World Food Programme (WFP) did the same in May, subsequently cutting off all aid to Ethiopia in June.

More than 20 million Ethiopians, or roughly 16% of the country’s 120 million inhabitants, depend on food assistance as a result of ongoing droughts or regional conflicts that have forced 4.6 million people to escape their homes.

But the story is not the same for Ethiopia’s neighbour, Somalia, as the WFP warned during the week that a quarter of Somalia’s population was forecast to face “crisis-level hunger or worse” this year due to drought and floods caused by climate change.

After the most recent evaluation of Somalia’s performance under the Extended Credit Facility agreement, the lender commended the country, noting that despite several obstacles, the country had made significant progress in putting recommended changes meant to boost the economy into practice, but climate situations remained a challenge as floods had uprooted hundreds of thousands of people in the country.

The East Africa region has experienced a historic drought described by the United Nations as a once-in-a-century event.

Musings about opposition politics in Africa

Nigeria’s Atiku Abubakar, a former Vice President, and candidate of the Peoples Democratic Party in the 2023 general elections, called for a united opposition force to displace the ruling All Progressives Congress (APC).

The call has drawn reactions from other opposition parties, like the Labour Party which described Abubakar’s merger proposal as a good one that should be considered, and the New Nigeria People’s Party (NNPP)— which had the former governor of Kano State, Rabiu Kwankwaso as its 2023 presidential candidate— giving its conditions for a possible merger.

Also in the week, major opposition parties in the Democratic Republic of the Congo announced that consideration was on for the best approach to displace President Felix Tshisekedi in the forthcoming elections, we and have begun talks in Pretoria with a potential joint candidate to challenge Tshisekedi in the works.

While political mergers have yielded the desired results, like in the case of Nigeria in 2015, victory is not guaranteed. An instance was the last Gabonese presidential election earlier this year, in which major opposition parties adopted a single candidate and consented to support a former minister and university professor, Albert Ondo Ossa but failed to end the 56-year grip of the Bongos in power, although incumbent Ali Bongo was later removed in a military coup as part of the fallout of the election.

Meanwhile, an incumbent president lost an election over the weekend in Liberia, West Africa. The country’s president, George Weah, has been defeated by an opposition leader, Joseph Boakai, after a tight race for the country’s top job, a development that is a rare ray of hope for Africa’s struggling opposition, particularly because Boakai cruised to victory without political mergers.

Behind the News

Behind the News: All the backstories to our major news this week

Published

on

Over the past week, there were lots of important stories from around the African continent, and we served you some of the most topical ones.

Here is a rundown of the backstories to some of the biggest news in Africa that we covered during the week:

1. Stop wailing, they are for your good, Nigerian govt defends Tinubu’s multiple
taxes

Despite the hues and cries of Nigerians over multiple taxes imposed on citizens by the President Bola Tinubu’s administration since coming into office almost a year ago, government officials have continued to defend the so-called reforms.

The latest to do so is Vice President Kashim Shettima who said the multiple taxes are a “necessary evil” aimed at revitalising the economy and not to frustrate Nigerians.

Shettima who spoke at a close-out retreat of the Presidential Fiscal Policy and Tax Reforms Committee set up by Tinubu, said “contrary to speculations in some quarters, the reforms will benefit the country in the long run.”

He stated that fears nursed by citizens over the tax reforms being implemented by the Tinubu administration, are targeted at revitalizing the country’s economy and not to frustrate and further impoverish Nigerians.

“We are not here to frustrate any sector of our economy but to create an administrative system that ensures the benefits of a thriving tax system for all our citizens.

“Our aim remains the revitalisation of revenue generation in Nigeria while sustaining an investment-friendly and globally competitive business environment,” the VP said.

This has been the usual rhetoric by government officials who are not adversely affected by the hardship and hunger being experienced by ordinary people in the past one year of Tinubu’s “bold reforms”.

From the removal of fuel subsidy without provision for ameliorating the expected fallout, to the tight grip on monetary policy, to the multiple taxation which has led to skyrocketing inflation and high cost of living, ordinary Nigerians have been made to bear the brunt of government policies.

Like Senate Chief Whip, Ali Ndume argued, it is inhuman for the government to continue taxing Nigerians without increasing their income.

2. Edgar Lungu still Zambia authorities’ nightmare

Despite being out of office for over two years, former Zambian President, Edgar Lungu remains one of the biggest nightmares of the Hakainde Hichilema administration.

Every move made by Lungu is viewed with suspicion by the government and its agencies and being the smart alec, Lungu has often played them to his advantage.

So it was last week Thursday when the ex-President caused a stir when he decided to take a walk around the Lusaka’s Central Business District which turned into a rowdy scene as traders and residents chanted and cheered his name, while motorists honked in solidarity as he strolled through the area.

Lungu was also warmly welcomed at Lusaka’s biggest trading marketplace, Soweto, as he waved at the traders, and motorist while assessing the cost of living and engaging with traders.

The actions and increased popularity of the former President must have sent the security agencies into panic mode as they did everything to douse the tension, coupled with the fact that the government had since banned such public procession.

There were reports that the National Police had suspended six officers who refused to prevent Lungu from embarking on the march due to its potential of causing a breach of public peace.

But in a swift reaction aimed at further dousing tensions, Police Public Relations Officer, Rae Hamoonga, said contrary to the allegations, no police officer had been suspended on the said allegations.

“Our investigation has revealed that such an incident did not occur, and therefore, no disciplinary action has been taken against any officers in connection with this matter,” Hamoonga said.

The Zambian government has done virtually everything within its powers to clip Lungu’s wings as the country gears up for a general election next year but it seems the more they try, the more the ex-President is becoming more popular.

It is left to be seen the next line of action from the administration to put Edgar Lungu in check.

3. Success has many relations; the intriguing story of Ademola Lookman

Before accepting to Switch allegiance from England to Nigeria, Ademola Lookman had rejected the country of his father three times with the hopes of playing for the Three Lions.

Former Super Eagles coach, Genort Rhor extended invitation to Lookman on two occasions but he turned them down.

Amaju Pinnick, used his position as the then Nigeria Football Federation (NFF) President, to personally court the striker through his parents but he still refused to accept an invitation to play for Nigeria.

In his final rejection of Nigeria in 2018, Lookman, sounding frustrated, said in an interview:

“I’ve not changed my mind on wanting to represent England.”

But after waiting in vain for a call up from England manager, Gareth Southgate, Lookman did the sensible thing by requesting a change of allegiance from FIFA and
February 10, 2022, his request to represent the Nigerian national team was approved by the world football governing body.

Lookman made his debut for Nigeria on March 25, 2022, in their scoreless draw with Ghana as part of the third round of the African section of qualification for the 2022 FIFA World Cup and went on to give a five-star performance at the 2023 Africa Cup of Nations held in the Ivory Coast where he scored three goals for Nigeria.

The rest, as they say, is history as the 25-year-old is now one of the most loved players both in Nigeria and in Italy where he plies his trade with Atalanta.

Such is the great love his fans have for Lookman that an Italian couple named their new born baby after him after leading the modest team into the final of the Europa League.

The Super Eagles forward gained the namesake after he scored a spectacular goal against Olympic Marseille of France in the Europa League semifinal second leg match to take Atalanta to the final.

According to reports from EuroFoot on X, Ademola’s performance was recognised by the couple who live in Palosco, a district in Bergamo where the Italian club is based.

“Somebody named their child after Ademola Lookman following his goal which helped send the Italian club to the Europa League final!” EuroFoot wrote.

The story of Lookman’s metamorphosis can only be compared to a man who has his palm kernel cracked for him by the gods.

4. Idriss Deby: From Army khaki to civilian president

During the week in review, Chadian interim president, Mahamat Idriss Deby, became another military junta leader who easily transformed into a civilian president after he was declared declared winner of the country’s disputed election held on May 6.

The State Electoral Commission of Chad announced that Deby, who succeeded his father who was killed in an army uprising in 2021, had secured an absolute victory in the presidential election, receiving more than 61% of the votes according to provisional figures

Deby was declared winner despite the main opposition candidate claiming victory for himself.

His “victory” at the presidential poll meant that
Chad, like in many African countries, has moved from a military regime back to constitutional governance through democratic elections, but with the same man on the saddle.

Though the election was marred by pockets of violence and discontent by the opposition who cited electoral manipulation, Deby has joined continental leaders who transitioned from military leaders to civilian leaders.

5. Count us out, Nigerian govt denies bribery allegation by Binance CEO

Attempts by the CEO of cryptocurrency exchange giant, Binance, Richard Teng, to rope in some government officials in a $150m bribe aimed settle the ongoing criminal charge filed against the firm has been vehemently denied by the Nigerian government.

Teng, in an article he write for the New York Times, had alleged that unknown government officials had made the bribe demand to Binance officials shortly after they held a meeting with Nigerian lawmakers on January 8.

In the article, Teng accused the individuals whom he failed to identify, of acting on behalf of government officials to demand $150m in cryptocurrency to resolve the tax evasion and money laundering case against the company and its officials.

“They demanded a significant payment in cryptocurrency to be paid in secret within 48 hours to make the issues go away,” Teng wrote in the article.

But in a swift reaction on Wednesday, Nigeria’s Minister of Information and National Orientation, Mohammed Idris, denied the allegations,
describing them as blackmail aimed at tarnishing the image of the country.

“The allegations are baseless and part of a wider attempt by Binance to evade accountability for alleged criminal activities,” Idris said.

“This claim by Binance CEO lacks an iota of substance. It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria,” Idris said.

“They lack any evidence and are merely a diversionary tactic employed by Binance to deflect attention from the serious charges it faces in the country.”

Despite Idris’s strong denial of Teng’s allegations, questions are still being asked how one of the detained Binance officials, Nadeem Anjarwalla managed to escape from custody and flee from Nigeria?

Was his escape part of the alleged bribe scheme? Was there an exchange of money that paved the way for Anjarwalla’s escape from Nigeria?

How was he able to secure an alternative passport when his original passport had been seized by the EFCC?

Questions and more questions keep arising from the Binance-gate while Nigerians wait for answers which may never come.

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Behind the News

Behind the News: All the backstories to our major news this week

Published

on

Over the past week, there were many important stories from around the African continent, and we served you some of the most topical ones.

Here is a rundown of the backstories to some of the biggest news stories in Africa that we covered during the week:

Different takes as African leaders spotlight multilateral loans

The call for a reform in the financial instrument of multilateral bodies like the International Monetary Fund (IMF) and the World was at the front burner in the week as African leaders on Monday called for rich countries to commit to record contributions to a low-interest World Bank facility for developing nations. The leaders stressed that most African countries depend on the fund to sponsor development and combat climate change.

Kenya’s President William Ruto told a meeting of African leaders and the World Bank to discuss IDA funding, “call on our partners to meet us at this historic moment of solidarity and respond effectively by increasing their IDA contributions… to at least $120 billion.”

Ruto has been a notable voice in the call. Last year, during a session at the Paris Climate Summit, he called for a new global financial architecture outside the present creditor system which according to him tilts in favour of lenders like the IMF and the World Bank.

“We need a financial consumption tax at a global level that countries like Kenya pay, we do not want anything for free, we will pay more eventually because we have a bigger economy. We want those resources controlled not by IMF and World Bank because IMF and World Bank have the final say…,” Ruto said.

The World Bank has maintained that IDA lends money to 75 poor countries around the world at low-interest rates. More than half of these countries are in Africa. Governments use the money to improve access to healthcare and energy, put money into farms, and build important things like roads.

But Ugandan President, Yoweri Museveni, expressed a fresh perspective to the discourse at the same event as he urged African leaders to verify the true intentions of multilateral lending institutions towards the continent. He asked African leaders to “audit the intentions of the World Bank loans to ensure that they are for prosperity rather than profiteering”. He added: “What loans are we getting as Africa? Is the World Bank giving us loans for private sector-led growth or to be more dependent?”

“Our populations are increasing, but our economies are stunted. The International Development Association (IDA) should tell us why they are funding the modern slavery of Africans, and we should address issues like why Africa is producing what it does not consume and consuming what it does not produce”, the Ugandan leader stated.

Interventions by multilateral bodies have remained controversial in some cycles although the bodies have claimed that poverty reduction is one of their objectives, but some studies have shown that IMF borrower countries experience higher rates of poverty. A 2022 research by Glen Biglaiser and  Ronald J. McGauvran which investigated the effects of IMF loan conditions on poverty using a sample of 81 developing countries from 1986 to 2016,  found that IMF loan arrangements containing structural reforms contribute to more people getting trapped in the poverty cycle, as the reforms involve deep and comprehensive changes that tend to raise unemployment, lower government revenue, increase costs of basic services, and restructure tax collection, pensions, and social security programmes.

Liberia enacts war crimes court; who should follow? 

Liberia’s President Joseph Boakai has signed an executive order to establish a war crimes court. Boakai granted his final approval and congratulated the lawmakers for their effort in the legislation. A special court was eventually ordered to be established to try those who were deemed to be at fault by the Truth and Reconciliation Committee.

Many atrocities, such as rape, massacres, and the use of child soldiers, occurred during the wars that lasted from 1989 to 2003. In their fight against rebels affiliated with the Liberians United for Reconciliation and Democracy (LURD), government forces in Liberia have been accused of war crimes as well as grave violations of human rights, such as the widespread rape of women and girls, the summary execution of numerous civilians, and the looting and burning of entire villages.

Without warning or predetermined protocol, hundreds of civilians were allegedly arbitrarily and forcibly conscripted and deployed to fight on the front lines, frequently with little to no military training. The LURD troops have also been alleged to have committed grave crimes such as rape, forced recruitment of civilians, including child soldiers, and summary killings of suspected government collaborators.

Activists and civil society organizations that have demanded greater justice for crimes committed during the conflicts that claimed the lives of almost 250,000 people have praised the initiative. Some in Liberia are against its development, arguing that it could weaken the amnesty law that was already in place and cause old grievances to resurface. This helped put a stop to the violence.

Most African countries have a shared history of civil wars and internal crises that have made calls for special courts to try war popular in the continent.  Nigeria, Rwanda, Ethiopia, Sudan, Congo DR have recorded thousands of deaths of civilians occurring in separate conflicts of armed groups. Some of those killings are also categorized as war crimes and crimes against humanity, with most cases unsolved and consequential agitations in cases for self-determination and secession by aggrieved section of the state, which account for the volatile nature of most African states.

Liberia’s template which has birthed a special war crimes court might be a direction to follow in states with these experiences, first to afford victims closure through justice and likely deterrent for likely war crime offenders but much still lies on the political will of the state to ensure justice despite the special court.

Scrabble for Niger as US accuses Russia over military base incursion

Despite remaining under military reign and retaining consequent pariah status in the international community, West African country, Niger Republic, appears to remain a toast for world powers as the United States and Russia had their latest confrontation over the country during the week. Russian military personnel have reportedly made their way into an American military air base in Niger, according to a senior US defence official cited by Reuters. This move follows the junta in Niger’s decision to expel American personnel.

Until a coup last year, the country had been a vital ally for Washington’s fight against insurgents who had killed hundreds of people and displaced millions more. Mali, Libya, Chad, the Central African Republic, and other nations on the continent have looked to Russia for security cooperation. Russian paramilitary soldiers have now landed in Niger, isolating the United States and compelling its 1,100 military personnel to leave the country for the next few months.

America will lose access to a vital military facility it needs to combat terrorist organizations like ISIS as a result of Russia’s increasing influence in Niger. To strike terrorist bases in the area, intelligence gathered from the U.S. drone base in Niger is crucial. In what global politics observers have labelled a “failed strategy” Cameron Hudson, a former intelligence officer for Africa at the CIA, referring to countries with coup governments in Africa noted that “when all of these countries kicked out the French and turned inward, we then tried to pivot to become the peacemaker in the hopes that we could keep our presence there.” “All of that is not working. We are now out. Russia is now in.”

According to US law, Washington is not allowed to give money to coup regimes like the one in Niger. However, in an attempt to eventually restore military and other financial support, American leaders have made an effort to retain diplomatic ties with those nations, many of which have abundant natural resources.

A few African leaders have praised Moscow’s participation, arguing that in situations where the United States is unable to offer prompt security support, Moscow can. Some have resisted American efforts for reform, arguing that the West has no right to preach democracy in Africa when it ignores comparable problems with its friends elsewhere in the world.

On Africa and long-distance race at the Olympic 

Ahead of the 2024 Summer Olympic Games in Paris, France, Athletics Kenya named their six-man team on Wednesday. The team consists of three men and three women, with one reserve on each side. The team is led by Hellen Obiri, Benson Kipruto, and Eliud Kipchoge, the reigning champions. A “killer squad” the team has been called by sports enthusiasts giving the track record of the East African country at long-distance races. Kenyan and regional neighbours Ethiopian athletes have dominated the middle- and long-distance sports since the 1968 Mexico City Olympics. They have also shown a similar level of dominance in international cross-country and road racing competitions.

Benson Kipruto, the winner of the Tokyo Marathon, and Alexander Mutiso, the winner of the London Marathon, are both picked in the final Kenyan Olympic team. Timothy Kiplagat, the runner-up in Tokyo, will be backup in case any of the three chosen athletes are unable to compete. As she travels to Paris in fine form, having set a new women’s only world record last month by winning the London Marathon, Jepchirchir will have an opportunity to defend her championship with the final team list.

Their success has attracted significant attention on a global scale and has been the focus of social, sporting, and even scholarly studies. Genetic predisposition, development of high maximal oxygen consumption as a result of extensive walking and running at an early age, and comparatively high haemoglobin and hematocrit were some of the factors identified by Randall L. Wilber and Yannis Pitsiladis.

Developing a good metabolic “economy/efficiency” based on somatotype and lower limb characteristics, having an advantageous oxidative enzyme profile and skeletal-muscle-fiber composition, living and training at altitude, following a traditional Kenyan/Ethiopian diet, and having the drive to succeed economically are additional factors. However, although the variety of physiological and anatomical explanations appear tenable for the dominance, no definitive advantage has been found through research as athletes from other parts of the world like Asia and North America with little or no features peculiar to East Africa have had considerable success in long-distance also.

East Africa will continue counting its medals with pride while the search continues.

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