Category: Africa

Cameroon, Rwanda make major changes in their military positions after Gabon coup

Rwanda and Cameroon have unveiled significant shifts in their security forces, impacting senior military personnel.

In Rwanda, President Paul Kagame retired hundreds of soldiers, coinciding with the advancement of young soldiers within the nation’s security framework. New generals have also been appointed to lead army divisions situated across the country.

The Rwanda Defense Force (RDF) released a statement disclosing Kagame’s approval of the retirement of twelve generals, eighty-three senior officers, and six junior officers.

Additionally, eighty-six senior non-commissioned officers will be retired. About 678 soldiers retired as their contracts concluded, with 160 others medically discharged.

Members of the Rapid Intervention Battalion (Bataillon d’Intervention Rapide, BIR). ©AFP

Prominent figures from Rwanda’s 1994 liberation war, including Gen. James Kabarebe, Gen. Fred Ibingira, and Lt. Gen. Charles Kayonga, are among the retirees. Both Kabarebe and Kayonga previously held the position of chief of defense staff of the Rwandan army.

On the same day, Kagame elevated several young officers to the rank of colonel and designated new generals to lead military divisions. Other retirees encompass Lt. Gen. Frank Mushyo Kamanzi, currently Rwanda’s ambassador to Russia, and Maj. Gen. Albert Murasira, a former defense minister.

In June, Kagame appointed Juvenal Marizamunda as the new defense minister, succeeding Albert Murasira, who had held the role since 2018.

In similar development, Cameroon’s President Paul Biya, one of Africa’s longest-serving leaders, enacted fresh appointments within the Defense Ministry’s central administrative unit, as outlined in a decree shared on social media.

The sweeping changes in Cameroon and Rwanda came barely hours after the coup in Gabon, where President Ali Bongo Ondimba was toppled and placed under house arrest by soldiers. Both leaders did not reference the coups in Niger and Gabon in their respective decisions.

Soldiers who seized power in Niger in late July have also faced sanctions by the Economic Community of West African States (ECOWAS), although the measures have so far failed to persuade the junta to return power to the democratically elected leadership.

Mr Biya, in a statement posted on Twitter Wednesday afternoon, said he had issued a decree to terminate some soldiers and move others from the country’s defence department.

Newly appointed senior military chiefs for the army include Ajeagah Njei Felix, Kamdom Lucas, and Nguema Ondo Bertin Bourger, amongst others.

Edou Essono Serge Durel and Moudio Hervé were among the newly designated officers in the Cameroon’s marine.

US firm Global Fire Power, in its 2023 ranking of the most powerful armies in the world put Cameroon at the 17th in Africa out of 34 countries, and 100th in the world.

Within the CEMAC zone, Cameroon is outperformed by Chad, 15th on the continent and 97th in the world.

Africa’s top 5 military powers are Egypt (14th in the world) Algeria (26th in the world), South Africa (33rd in world), Nigeria (36th in world), Ethiopia (49th in the world) and Angola (55th in the world).

Military officers seize power in Gabon, say election lacked credibility

A group of senior military officers in the Central African country of Gabon said they have cancelled the elections and seized power because polls held over the weekend were not credible.

The officers, in a television announcement on Gabon24 during the early hours of Wednesday morning, revealed this shortly after incumbent President Ali Bongo was announced to have won a third term as president.

The military has dissolved all state institutions and closed the country’s borders. They said they represented all security and defence forces of Gabon.

The announcement came shortly after the state election body said President Ali Bongo Ondimba had won a third term in office in Saturday’s disputed elections.

“In the name of the Gabonese people … we have decided to defend the peace by putting an end to the current regime,” the officers said.

The Gabonese Election Centre said Bongo had secured 64.27 percent of the vote compared with 30.77 percent for his main challenger Albert Ondo Ossa, after a process beset by delays.

Gabonese President Ali Bongo Ondimba casts his vote at a polling station during the presidential election in Libreville, Gabon August 26, 2023 [Gerauds Wilfried Obangome/Reuters]
   The opposition camp, on Saturday, insisted the election was a “fraud orchestrated by Ali Bongo and his supporters” after the internet was cut and a curfew imposed.

French media outlets France 24, RFI and TV5 Monde were also banned, accused of “a lack of objectivity and balance in connection with the current general elections”, the government said.

Bongo was the candidate for the Gabonese Democratic Party (PDG), the party founded by his father, Omar Bongo, who led Gabon from 1967 to 2009. After his death, his son, then the defence minister, took his place as president and has been in power ever since.

So, far nothing has been revealed by the military concerning where the president is.

Tensions had been running high amid Saturday’s vote with the opposition pushing for change and an end to the Bongo family’s dominance of Gabon.

Following the military announcement, the Reuters and AFP news agencies reported the sound of gunfire in the Gabonese capital, Libreville.

Niger: Paris backs ‘president Bazoum’ and ‘ECOWAS’ military action should it be the case’

Macron has insisted that France would not change position in condemning the coup and offered support to Mohamed Bazoum and ECOWAS.

Niamey and Paris’ differences seem irreconcilable. During a major foreign policy speech to ambassadors in Paris, Monday (Aug. 28), French president Emmanuel Macron doubled down on his government’s line regarding the junta.

“Our policy is the right one. It depends on the courage of President Mohamed Bazoum, the commitment of our diplomats, of our ambassador on the ground who is remaining despite pressure,” Macron told a gathering of French ambassadors in the capital on Monday.

French Ambassador Sylvain Itte was ordered to leave Niger within 48 hours in a letter Friday (Aug. 25) from the Nigerien Foreign Ministry that accused him of ignoring an invitation for a meeting with the ministry. The letter also cited “actions of the French government contrary to the interests of Niger.”

Niger’s President Bazoum was toppled on July 26. France, the Economic Community of West African States and the UN among others have called for him to be reinstated.

“We do not recognize the putschists, we support a president who has not resigned, who we remain committed to. And we support the diplomatic action and, military action should it be the case, of ECOWAS, within a partnership approach which is the one I presented last February, ” the French head of state said.

The de facto ruling CNSP have since the coup appointed a new government. Coup leader general Abdourahmane Tiani said the CNSP will return Niger to democratic rule within 3 years as he announced a national dialogue on Aug. 19 .

Although it is considering a more diplomatic channel for resolution, ECOWAS has hit the nation with sanctions, threatening to send troops.

A spokesman for the French military on August 10 said that any cooperation with Niger in the fields of development and financial aid and military partnerships had been suspended until further notice.

Green hydrogen at heart of Namibia’s Vision 2030

Around the world, industrialized economies are looking to undergo green transitions. Countries across Europe and North America particularly are seeking to reduce their dependence on carbon and fossil fuels by investing in new technologies and sources of renewable energy, such as green hydrogen. Namibia is also looking to develop its green hydrogen space, but under rather different circumstances, as James Mnyupe, Economic Advisor to the President of Namibia, explains.

“People think about green hydrogen from an energy transition perspective,” Mnyupe says, “but it’s the exact opposite for us. Lots of highly industrialized countries are consuming huge amounts of carbon and are trying to go towards a low-carbon environment. Whereas with Namibia, we’re going from very little industrialisation to a lot of industrialisation, potentially on the back of a zero-carbon source of fuel.”

“At least in theory, we have the opportunity to leapfrog the carbon-heavy part of industrialisation and go straight to low-carbon industry,” Mnyupe adds.

The Namibian government sees green hydrogen as “a spark,” Mnyupe says. The fuel is perceived not only as a way to drive industrialisation in Namibia, but also promote wider economic prosperity. For one thing, green hydrogen could allow Namibia to develop as an international energy player and establish lucrative foreign markets. Mnyupe explains that “the project is so large and so significant, that it actually enables other industries to flourish… it’s a harbinger of prosperity for the rest of the country.”

In this sense, green hydrogen is also integral to Namibia’s “Vision 2030” project. This was launched by former President Sam Nujoma in 2004 and outlines the country’s ambitions “to improve the quality of life of our people to the level of their counterparts in the developed world by the year 2030”. The importance the government is attaching to the commodity could hardly be higher.

 

Attracting FDI

Because of this, Mnyupe says the government is taking “every step imaginable” to attract foreign direct investment (FDI) into Namibia to provide the capital to develop the required infrastructure. Inter-governmental diplomacy and private sector engagement have both played a role. “We have shared our vision with many different entities around the world, on various platforms, from the United Nations General Assembly to the World Economic Forum, and beyond.

“We have signed memorandums of understanding (MOUs) with the Netherlands, the European Union, Germany, and Japan as well. On the back of all that, we’ve also exchanged at a private sector level. Namibian entities and Belgian, Dutch, German, and Japanese entities have exchanged ideas on how to partner and deploy capital.”

Namibia has already seen the formation of consortiums and joint ventures because of these efforts. At the start of June, the Namibian government agreed a $10bn deal with German company Hyphen that will facilitate the production of two million tonnes of green ammonia per year by 2030. Last year, Namibia’s O&L Group and Belgian company CMB.Tech agreed to collaborate on building a green hydrogen project in the country.

Namibia’s competitive edge

Mnyupe recognizes, of course, that “competition is fierce – and so it should be.” He points to Kenya, Morocco, Mauritania, Egypt, and South Africa as competitors similarly looking to build sophisticated renewable energy industries. However, he does believe that Namibia has several qualities that could help the country emerge as an attractive option for international investors.

“We have a united government, enabling policy legislation, and very attractive solar and wind resources,” Mnyupe says. “We’re not landlocked so we have access to a harbour. I also think that something very interesting in Namibia is that we have a relatively sophisticated capital market that allows for the construction of various financial instruments that allow for the deployment of blended financing.

“That can help lower the cost of capital required for the construction of these projects – and all of these things make Namibia an attractive place to consider building green hydrogen assets.”

 

Developing green finance

The quality of Namibia’s capital markets is certainly something that the government is trying to lean into as it attempts to promote the growth of its green hydrogen industry. In 2021, the government announced plans to float a green bond on the New York Stock Exchange, although Mnyupe says they encountered several issues with this project.

“We realized that the green bond would be trading at the Namibian sovereign credit rating, or at least with yields relative to the credit rating, maybe with a few basis points’ discount,” Mnyupe says, “and so we decided the government would have to get a bit more inventive.” This is because Namibia’s credit rating is currently BB-, according to Fitch, potentially making raising cash for the green hydrogen prohibitively expensive.

“So, we started engaging with the European Investment Bank (EIB) to put together a bespoke facility for Namibia that it could tap into to develop complementary infrastructure for the green project.

“This is very important – this is not a project funded by the Namibian government, this is a privately funded initiative. But the Namibian government might have to invest in ancillary infrastructure around it to unlock the full socio-economic potential of the project. For this, we’ve approached the EIB and they’re putting together a package that would be more concessionary than we can afford on our existing credit rating.”

By developing this green finance infrastructure in Namibia, the idea is to “de-risk the project and encourage other private investors to come in”.

“The heavy lifting has to be done early on by multilateral development banks and governments, which is what we’ve been looking to do,” Mnyupe notes. “Private sector banks come in later, and then pension funds can come in once the asset reaches operating level.”

 

Towards a new economy

Of course, the government is confronting several challenges as it attempts to develop Namibia’s green hydrogen industry. The sheer scale of the project is enormous. The latest estimate shows the cost to be around $10bn – comparable to Namibia’s entire GDP – which is partly a reflection of its complexity. “End-to-end,” Mnyupe outlines, “we need renewable energy transmission pipelines, port infrastructure, roads, housing, and more: quite a hefty undertaking for any government.”

However, if such challenges can be overcome, the rewards could be sizeable – not just economically, but across whole swathes of Namibian social and political life. Namibia is a net importer from one of the most energy-insecure countries on the continent – South Africa. “We import 60-70% of our electricity from South Africa, but with a project like this, we could become a net exporter of electricity.

“That has massive implications from an energy security perspective, from an inflation perspective, and importantly, could allow us to attract energy-heavy industries to Namibia,” Mnyupe says.

This independence would bring wider macroeconomic benefits, too. “The amount of foreign reserves we could attract into the country would be huge, and that would have very interesting consequences for our currency. At the moment, the Namibian dollar is tied to the South African rand so whatever exogenous shocks are experienced in South Africa, we absorb 100% of that,” Mnyupe explains. The positive changes that green hydrogen could bring to Namibia are numerous and profound.

“If we capture even half of the benefits,” Mnyupe says, “the Namibian economy will change fundamentally.”

 

 

(African Business)

A Model for Africa: Côte d’Ivoire Health Ministry Announces New Initiative to Become Self-Sufficient in Paediatric Cardiology Surgery

he Mitrelli Group (https://Mitrelli.com/), the Menomadin Foundation (https://MenomadinFoundation.com/), Save a Child’s Heart (https://SaveaChildsHeart.org/), and the Côte d’Ivoire Health Ministry, this week announced an innovative local-capacity-building initiative in Côte d’Ivoire to establish the country’s local capabilities in the field of life-saving paediatric cardiac surgery, and enable the country to become a model for self-sufficiency in this field in the continent.

The initiative is rooted in the “UN’s Sustainable Development Goal to promote Good Health and Well Being”.

Approximately 1 in every 100 babies born in the world suffers from congenital heart disease (CHD), which are structural heart anomalies that occur during pregnancy when the heart or major blood vessels fail to develop properly. CHD is the most common type of birth defect, but with advanced medical care and treatment, the chances of infants and children fully recovering from CHD and living normal adult lives are better than ever. However, in countries where the necessary treatments are unavailable, CHD is the leading cause of mortality in the first year of life.

According to the WHO (https://apo-opa.info/3O1Ps2F), 2,700 out of 300,000 births registered each year in Côte d’Ivoire, suffer from congenital heart disease. However, the screening rate for these congenital heart diseases is very low (11%).

The goal of the new initiative is to build a national effort to diagnose and treat many more children, while jointly establishing Côte d’Ivoire’s paediatric cardiac surgery health-independence with advanced medical knowledge and resources.

As part of this new partnership, projected to last for 5 years, the Institut de Cardiologie d’Abidjan’s medical staff will undergo advanced training in various heart-related procedures from French and Israeli cardiology teams, enhancing their existing professional capabilities. Delegations of surgeons will travel throughout the year to Côte d’Ivoire, to perform operations on young patients, and provide training for local medical teams. In addition, medical teams from Côte d’Ivoire will benefit from state-of-the-art training in Israel in different fields of paediatric cardiac care.

The project will serve Côte d’Ivoire as a model and a reference point for paediatric cardiac surgery in Africa – not only reducing mortality rates but also improving quality of life for children. Meanwhile, the most serious and urgent cases will be transferred for immediate care in Israel.

The announcement of the initiative was made at a special meeting at the Côte d’Ivoire Ministry of Health and included the participation of nine children with heart deficiencies, ranging between the ages of 1 to 13 years old, who are traveling to Israel in the coming days to undergo life-saving heart procedures at the Sylvan Adams Children’s Hospital through Save a Child’s Heart.

In 2020, during the early stages of the project, the foundation, “Children of Africa” under the patronage of First Lady Mrs. Dominique Ouattara, Mitrelli Group, Menomadin Foundation and the NGO “Save a Child’s Heart”, worked together to facilitate successful surgeries in Israel for five children suffering from cardiologic conditions.

Minister of Health of Cote d’Ivoire Mr. Pierre Dimba spoke on the importance of health independence as a strategy of the government. “Patients with heart defects require not only surgery but also post-treatment. Sending children abroad for surgery is a blessing but not a long-term solution. Achieving health-independence in the field of paediatric cardiological care especially, is a national strategic priority, and this project is the first step on the road to that vital goal. Our vision is to stop outsourcing our healthcare, and instead begin to export our own capabilities to help others.”

He added, “We are extremely pleased with the cooperation with our partners and the treatments of our children at the Sylvan Adams Children’s Hospital through Save a Child’s Heart and we are looking forward to establishing this extremely important and strategic health model for our country and happy to see it serve as a model cross-Africa.”

Haim Taib, Founder and President of Mitrelli Group and Menomadin Foundation and President of Save a Child’s Heart Africa said: “This is an incredible opportunity to make a difference in the wellbeing of children and their future through upgrading local capacities and creating sustainable solutions. If 1% of children in the country need heart surgery, philanthropic activity, however blessed, is just a drop in the ocean. In order to create a significant, sustainable and long-term impact, the government must be involved, because only the government has the power to create a long-term solution. This is the Mitrelli model – to build long term sustainable development solutions in cooperation with our local partners in health, agriculture, education, and more, ​to create real impact. Together with Menomadin’s ability to provide solutions based on national roadmaps and impact management, I am sure that Cote d’Ivoire will be a model for additional countries.  We are extremely encouraged by Cote d’Ivoire leadership – the president and health minister – and their commitment to building a self-sufficient model to treat children, and proud to be working with such special partners.”

Eva Peled, Mitrelli’s Partner in Côte d’Ivoire stated: “We have been working with the government of Côte d’Ivoire and its ministry of health for several years. We discovered a wonderful country with many hidden gems, among which is the Abidjan Institute of Cardiology (ICA). The ambitious vision of His Excellency Alassane Ouattara, President of Côte d’Ivoire, has made the health sector a priority for the nation’s citizens. Under the leadership of Prime Minister Patrick Achi and the guidance of the Minister of Health Pierre Dimba, we are honored and proud to join forces in this humane initiative, which reflects our shared beliefs and values. We believe that Côte d’Ivoire will not only become a point of reference for cardiac surgeries, but for many other sectors in Africa.”

Professor Mohamed Ly, cardiac surgeon, and President of the AFCOA, added: “This extraordinary partnership signifies a monumental step towards providing essential surgical care and empowering local teams, ensuring a brighter future for children who currently lack access to these critical services.”

Simon Fisher, Executive Director of Save a Child’s Heart: “We are very grateful to the Mitrelli Group and the Menomadin Foundation for their partnership and for initiating the expansion to Cote d’Ivoire of Save a Child’s Heart activities.

The arrival of the group of nine children in Israel for lifesaving treatment at the Sylvan Adams Children’s Hospital is a major step in the implementation of this strategic initiative in partnership with the Côte d’Ivoire Health Ministry and the Institut de Cardiologie d’Abidjan. This group of children, and future groups to be treated in Israel, will complement the capacity building efforts in Côte d’Ivoire  led by the Association Française du Coeur pour l’Afrique de l’Ouest (AFCAO) and the Centre Hospitalier Universitaire (CHU) de Nantes from France turning this initiative into an truly international project that will lead to Côte d’Ivoire to  becoming self-sustainable in Paediatric Cardiac Care and a Regional leader in the field.”

Distributed by APO Group on behalf of Mitrelli Group.

For more information, please visit:
www.Mitrelli.com
www.MenomadinFoundation.com
https://SaveaChildsHeart.org/
https://apo-opa.info/44vgDZ9

About Mitrelli Group:
The Mitrelli Group (http://www.Mitrelli.com/) is a Swiss international and multicultural group with around 2,500 employees and a presence in Switzerland, Israel, Cyprus, Portugal, The Netherlands, Angola, Senegal, Cote d’Ivoire and Mozambique.

The Group upholds the universal values of mutual respect, solidarity and excellence. It has implemented dozens of projects, leading innovation in education, health, food security, technology, water and energy, and is committed to a meaningful and sustainable impact on the lives of individuals, families, communities and countries.

For the past 10 years, Mitrelli has dedicated itself to establishing national, economic and social projects in African countries, to benefit local populations, improving their quality of life. Over the years, the Group has developed and delivered innovative, sustainable solutions to millions of citizens, in line with the United Nations’ Sustainable Development Goals (SDGs), and has impacted the lives of millions of citizens on the continent.

About Menomadin Foundation:
The Menomadin Foundation (https://MenomadinFoundation.com/) operates in Israel and in Africa, advancing social ventures and Impact Investments, that aim to further the UN Sustainable Development Goals (the UN SDGs).

The Foundation is working to achieve social goals focusing on three lines of operation: Strategic Philanthropy endeavors in Israel, aiming to strengthen Israel’s social resilience, and in Africa – advancing unprivileged communities; Impact Investments in start-up companies who develop Impact-driven products and technologies in the fields of Agro-tech, health, water, energy and education; and Cross-Sector Partnerships involving local and national Governments, NGOs and the business sector, all committed to the realization of common social goals.

About Save a Child’s Heart:
Save a Child’s Heart (https://SaveaChildsHeart.org/) is an Israeli humanitarian organization, working internationally to save the lives of children from countries where access to pediatric cardiac care is limited or nonexistent. Founded at the Wolfson Medical Center in 1995 and operating today at the Sylvan Adams Children’s Hospital, Save a Child’s Heart has saved the lives of more than 6,500 children from 69 countries around the world and has brought more than 150 local healthcare professionals to Israel for training so they can treat their own children independently and create centers of excellence in their home countries.

Save a Child’s heart believe that every child deserves the best medical care, regardless of race, religion, gender, nationality or financial status.

SOURCE
Mitrelli Group

Sierra Leone: ECOWAS Speaker In Peace Talks to End Elections Dispute

From Melvin Tejan Mansaray, Freetown

 

The Speaker of the ECOWAS Parliament, Dr. Sidie Mohamed Tunis is part of ongoing talks with the main opposition All Peoples Congress (APC) over the post June 24, 2023 elections dispute in Sierra Leone.

It could be recalled that APC rejected the outcome of the June polls citing lack of transparency by the Electoral Commission Sierra Leone (ECSL).

The party has consequently called for the reversal of the results and the sacking of the Chief Electoral Commissioner among other government officials.

Tunis who doubles as a ranking member in the National Assembly of Sierra Leone, has himself just been reelected in a District Block electoral system representing Pujahun District, Southern Region of Sierra Leone for the Fifth term.

Speaker Tunis is part of his Sierra Leone People’s Party (SLPP) peace brokers who met with the former President Dr. Ernest Bai Koroma who is the erstwhile Chairman of the APC and a towering figure.

Speaking to the media, Hon Tunis said the meeting was “exploratory,” noting that more meetings are underway aiming at “bringing down the political heat in the country.”

“Everything should be done to maintain peace and national cohesion in Sierra Leone and for all political parties to play their part in the governance of the state,” Hon. Tunis said .

Hon. Tunis is a consensual personality that is respected among the political divide and has a track record of conducting successful political mediations over time.

Tunis is apparently a top contender for the Speaker of the Sixth National Assembly of Sierra Leone. He said that he is hopeful that by the grace of Allah he will get his party’s nomination for the House’

 

The $500 million deal between AfDB and the US

African Development Bank and USAID extend and expand their partnership through the Regional Development Objectives Agreement (RDOAG) to tackle energy poverty and climate change in sub-Saharan Africa.

The agreement aims to eliminate energy poverty by 2030, accelerate the just energy transition, and improve the enabling environment for renewable energy in Africa.

The partnership allows for potential future US contributions of up to $500 million and provides financial, technical, and operational support to stakeholders through grants, investments, and risk-reduction strategies.

On the sidelines of the Africa Energy Forum in Nairobi, the African Development Bank and the United States Agency for International Development (USAID), through the Power Africa Presidential Initiative, signed an extension and expansion of their current Regional Development Objectives Agreement (RDOAG).

The action increases the foundation for collaboration in the development of creative and sustainable solutions to tackle energy poverty, and climate change, and enhance energy systems in sub-Saharan Africa. It also deepens the strategic relationship.

The pact specifically aims to eliminate energy poverty by 2030, speed up the just energy transition in Africa, and improve the favorable climate for renewable energy.

The five-year extension, which runs through September 2028, opens the door for potential future US contributions of up to $500 million to support RDOAG’s goals. The Sustainable Energy Fund for Africa (SEFA) and the African Development Bank’s Desert to Power program have received direct funding through the RDOAG to date, totaling around $388 million.

The partnership will also be able to help the public, commercial, civil society, and other stakeholders financially, technically, and operationally through grants, equity and debt investments, and risk-reduction strategies.

Acting Coordinator for Power Africa David Thompson emphasized the importance of partnerships in advancing and sustaining the fair energy transition during the signing ceremony at the Africa Energy Forum. “The importance of our partnership with the AfDB, as evidenced through this agreement, in achieving our shared ambition of universal access to energy cannot be overemphasized. We effectively leverage one another’s strengths to accomplish much more jointly than either institution could do on its own,” he said.

The Power Africa Strategic Framework, the Bank Group’s New Deal on Energy for Africa, and Sustainable Development Goal 7 are all concerned with ensuring that everyone has access to cheap, dependable, sustainable, and modern energy. Activities carried out under the enlarged agreement will support these goals.

Partnerships are crucial, as Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank, who signed the extension on behalf of the Bank’s Vice President for Power, Energy, Climate, and Green Growth, emphasized.

According to Schroth, “Power Africa is a long-standing and key partner of the African Development Bank, and a central pillar of our collaboration focuses on mobilizing increased private sector investments, which are quintessential to achieving our joint objectives of universal access to energy and a just energy transition in Africa.”

EAC launches peace caravan to promote peaceful coexistence

The East African Community (EAC) on Monday launched a peace caravan aimed at promoting peaceful coexistence, good neighborliness and peaceful resolution of disputes among border communities through experiential learning from practices of other border communities in the region.

A statement by the EAC headquarters in Tanzania’s northern city of Arusha said the initiative, called peace caravan and benchmarking tour for border communities in Kenya, Uganda and South Sudan, was launched in Namanga on the Kenya-Tanzania border.

According to the statement, the initiative was launched by the EAC secretariat in collaboration with Kenya, Uganda and South Sudan, and in partnership with the African Union Border Program. It is also aimed at sensitizing border communities on other ongoing national, regional and continental initiatives to peacefully and sustainably resolve border issues as well as learn from experiences, lessons and practices of border communities where border disputes have been peacefully and successfully resolved.

The seven-day caravan that involved representatives of the Atekar community composed of Turkana in Kenya, the Toposa of South Sudan, and the Karamajong of Uganda, started in Lodwar in Turkana county, Kenya, and traveled by bus to Namanga border through Eldoret to interact and learn from the experiences of the Maasai community, said the statement.

 

Why Nigerian billionaires do not “japa”

Nigerian billionaires choose to stay in the country due to significant disparities in tax rates compared to developed economies like the UK and the US, where higher-income earners face higher tax burdens.

Some billionaires benefit from monopolistic business ventures supported by the Nigerian government, while developed economies have antitrust laws that promote fair competition and limit market power.

While the allure of developed economies may be enticing, these billionaires weigh the benefits against the unique opportunities and circumstances presented in Nigeria.

In 2022, the National Immigration Service reported that a staggering 1,899,683 passports were issued, indicating a significant outflow of Nigerians seeking better opportunities abroad.

 

This phenomenon, often referred to as the “brain drain,” has caught the attention of experts and policymakers. Surprisingly, amidst this mass exodus, Nigeria’s billionaires remain resolute in their decision to stay.

 

Figures like Aliko Dangote have openly declared their commitment to the country, prompting an investigation into the reasons why these billionaires choose not to relocate.

 

Tax Rates: A Favorable Comparison

One crucial factor that may contribute to Nigerian billionaires’ decision to remain in the country is the significant disparity in tax rates between Nigeria and countries like Canada, the United Kingdom, and the United States.

 

The Nigerian Federal Inland Revenue Service reports that only a small fraction of the labour force is captured in the tax net. In contrast, countries such as the United Kingdom have stringent measures in place to prevent tax evasion, especially for high-net-worth individuals like Femi Otedola and Aliko Dangote.

For instance, if Aliko Dangote, with a net worth of $9.7 billion, were a resident of the United Kingdom, his tax liability would amount to up to 40% of his income. The UK’s progressive income tax system has different tax bands based on income levels, with the highest bracket being 45% for income above £150,000.

This stark contrast in tax rates presents a compelling financial incentive for Nigerian billionaires to stay put.

 

Economic Monopoly: A Distinct Advantage

In Nigeria, there are speculations that certain billionaires have been able to establish monopolistic business ventures with the support of the government.

 

One prominent example is the Dangote Group, which operates at the top of the manufacturing chain for staple food and building items.

 

Reports suggest that Dangote’s business empire owes much of its success to governmental support, including waivers and subsidies in foreign exchange.

 

However, in developed economies like the United States and the United Kingdom, antitrust laws are in place to promote fair competition and prevent the concentration of market power.

 

These laws ensure that mergers and acquisitions do not create monopolies, and if necessary, they break up firms that have become monopolistic.

 

Consequently, billionaires running businesses in these countries face stiffer competition, which may discourage them from relocating to more developed economies.

 

Income Inequality: A Disparity Challenge

In Nigeria, the business environment is characterized by significant wealth inequality, with a large gap between the rich and the poor

Although Nigeria scored 35.1% on the 2022 Gini coefficient, indicating wealth inequality, the country still faces challenges in reducing unemployment rates, improving job income, and lowering housing prices.

The minimum wage in Nigeria is among the lowest in the world, according to reports. Bloomberg highlights that nearly two-thirds of Nigeria’s population lives on less than $2 a day, with approximately 133 million Nigerians classified as “multi-dimensionally poor.”

However, in Nigeria, these basic necessities are often accessible only to the elites and middle class. This means that the elite class in Nigeria enjoys a higher standard of living. As a result, billionaires in Nigeria feel a sense of security in their wealth, unlike in the United States where these amenities are more widely available to the average person.

 

Economic Competition: A Landscape Comparison

Nigeria’s economy is still in its early stages of growth, grappling with challenges such as inflation, insecurity, and corruption.

These issues, combined with certain policies and macroeconomic shocks, have hindered the progress of many promising companies.

Some businesses, like Opay, faced regulatory challenges that led to their demise as a logistics company.

Without sufficient access to business funding, many companies have been forced to shut down, allowing established players to dominate the market. In contrast, developed countries like the United States and the United Kingdom boast thriving business environments with better access to funding.

If Nigerian billionaires were to operate in these highly competitive landscapes, they would face formidable competitors capable of challenging their market position.

While the allure of developed economies may be enticing, these billionaires weigh the benefits against the unique opportunities and circumstances presented in Nigeria.

As the country strives to address these challenges and create a more conducive business environment, it may foster an atmosphere that encourages both billionaires and talented individuals to contribute to Nigeria’s growth and development.

 

 

(Nairametrics)

Mozambique: African Development Bank adopts new Country Strategy Paper covering 2023-2028

ABIDJAN, Ivory Coast. The Board of Directors of the African Development Bank Group (www.AfDB.org) has endorsed the Bank’s 2023-2028 Country Strategy Paper for Mozambique on 13 June 2023. The new strategy aims to promote the country’s structural transformation by improving fiscal stability, creating decent jobs and generating inclusive growth.

The strategy has two priority areas: fostering improved economic governance and the business environment to facilitate private sector investment and mobilize resources and transforming agricultural value chains by strengthening infrastructure sustainably.

This strategy is the culmination of efforts by the government, development partners, civil society, the private sector and technical experts on the country’s most critical economic reforms to implement in the coming years.

The African Development Bank is working to support the Mozambican Government in consolidating the results of previous and ongoing reforms in economic governance and the business environment. The government is also adopting new regulations and bolstering various administrative processes to improve the country’s fiscal position and stimulate private sector inflows.

“The African Development Bank has been a critical partner in financing the development of our economy. With this new strategy, the Government of Mozambique reaffirms its commitment to work towards strengthening our cooperation considering the objectives we jointly defined for Mozambique,” said Minister of Economy and Finance Max Tonela.

Cesar Augusto Mba Abogo, African Development Bank Country Manager, said, “The approved strategy effectively addresses the challenges and opportunities for fostering inclusive and sustainable economic growth in Mozambique. The extensive consultations conducted with stakeholders, including the private sector, development partners, and civil society, have been commendable. Furthermore, the remarkable co-leadership exhibited by the Government of Mozambique throughout the process has been instrumental in shaping the strategy.”

Implementation of the strategy is expected to lead to (i) greater private sector involvement to boost international trade; (ii) improved investment flows, and (iii) job creation—especially for women and young people. This is expected to have a knock-on effect of raising foreign direct investment to 30% of GDP from 22.7%.

With support from the Bank, Mozambique will stimulate the green economy and transform agriculture to increase the number of competitive industries capable of creating jobs and reducing poverty and inequality. The Bank’s engagement will also help improve livelihoods through investments in the agricultural sector based on a holistic, cross-sectoral approach and the development and modernization of Mozambique’s energy system.

The 2023-2028 Country Strategy Paper for Mozambique envisages establishment of a productive special agro-industrial processing zone by 2028 through the creation of 50 new companies and 200 new cooperatives or groups of external producers. It also projects that new investments will total $100 million. Mozambique’s electricity exports to southern Africa are expected to equal over five gigawatt-hours.

As of 28 February 2023, the African Development Bank Group’s active portfolio in Mozambique comprised 38 operations with a total commitment of $1.21 billion.

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