Africa

Zimbabwe discusses $12.7 billion debt restructuring

Business /

Zimbabwe’s President Emmerson Mnangagwa hosted creditors and finance executives on Monday to discuss plans for clearing the country’s $12.7 billion external debt and restructuring arrears. With the nation’s debt representing 81% of its GDP, the task is daunting for a country with a history of financial crises, including hyperinflation and failed currency reforms. Mnangagwa revealed that Zimbabwe is negotiating a Staff Monitored Program (SMP) with the International Monetary Fund (IMF), which would pave the way for key policy reforms. African Development Bank (AfDB) President Akinwumi Adesina expressed the AfDB’s readiness to provide financial support for these reforms and help clear arrears. Finance Minister Mthuli Ncube said timelines for debt restructuring would be clearer by mid-2025, once Zimbabwe secures bridge financing from lenders. Analysts warn that addressing arrears is crucial for the country’s economic recovery, as Zimbabwe currently cannot access funds from the IMF due to its debt situation. Clearing arrears with major creditors, including the AfDB, World Bank, and European Investment Bank, is key to unlocking future funding. The IMF has been unable to provide financial support due to Zimbabwe’s unsustainable debt. While the SMP would not include financial aid from the IMF, it would signal a return to sound economic policies. Zimbabwe’s debt situation remains complex, with a significant portion of the debt in arrears and penalties, limiting access to international financial assistance.

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Malaria costs Nigeria’s economy $1 billion annually

Africa /

In Nigeria, Africa’s most populous country, the malaria outbreak is reported to cause an annual economic loss of $1 billion. Muhammad Ali Pate, Nigeria’s Minister of Health and Social Welfare Coordination, spoke at a meeting titled “Malaria Elimination Consultancy in Nigeria” in the capital, Abuja. Minister Pate emphasized that malaria is not only a health crisis but also an urgent issue that requires immediate solutions for the country’s economy and development. He stated that malaria causes an annual economic loss of $1 billion in Nigeria and reiterated the government’s commitment to eliminating the disease. Highlighting the severe impact of malaria in Nigeria, Pate noted, “27% of global malaria cases and 31% of global malaria deaths occur in Nigeria. Our country bears the heaviest burden of this disease.” Pate also pointed out that in 2022, more than 180,000 children under the age of five died from malaria in Nigeria, stressing that this tragedy is preventable.

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WHO declares Mpox outbreak ongoing public health emergency

Africa /

WHO Declares Mpox Outbreak Ongoing Public Health Emergency The World Health Organization (WHO) has reiterated that the mpox outbreak remains a public health emergency of international concern, citing the rising number of cases, continued geographic spread, and operational challenges in managing the crisis. The WHO’s emergency committee issued this assessment on November 22, extending the emergency declaration first made in August. Africa has been the hardest-hit region, with 19 countries reporting mpox cases since the start of the year. The Democratic Republic of the Congo (DRC) continues to be the epicenter of the outbreak. Canada has also confirmed its first case of Clade I mpox, linked to travel associated with the ongoing outbreak in Central and Eastern Africa. To combat the spread, over 50,000 people have been vaccinated in high-risk areas, with plans to expand the vaccination program to the capital, Kinshasa, next week. Last week, the WHO approved a second mpox vaccine for emergency use, following a review of its safety, quality, and efficacy. As of now, Africa has reported over 46,000 suspected mpox cases and 1,081 deaths in the current outbreak.

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Niger demands EU ambassador’s replacement over aid dispute

Africa /

Niger Requests EU Ambassador’s Replacement Amid Aid Dispute Niger’s government has formally requested the European Union to replace its ambassador, Salvador Pinto da Franca, amid tensions over the distribution of emergency aid. The EU recalled da Franca on Saturday after Niger’s military rulers accused him of allocating €1.3 million in flood relief to NGOs without prior approval. The EU rejected these allegations, expressing “profound disagreement.” On Sunday, Niger’s foreign ministry accused da Franca of continuing “unauthorized operations” despite previous warnings issued in October. The ministry declared that cooperation with the ambassador had become untenable and called for his replacement “as soon as possible.” Since June, flooding in Niger has killed more than 300 people and displaced over 1.1 million. The government stated that it had not requested EU aid and would address the damage with its own resources. Tensions between Niger and the EU have escalated since the July 2023 military coup, with the country distancing itself from both France and the European bloc.

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Namibia’s Nandi-Ndaitwah poised to become first female president

Africa /

Namibia’s Vice President Could Make History as First Female President Namibia’s Vice President, Netumbo Nandi-Ndaitwah, could become the country’s first female president if she wins the upcoming presidential election on Wednesday. Around 1.4 million people—approximately half the population—have registered to vote, with 15 political parties vying for the presidency and National Assembly seats. Early results from special polls for Namibia’s foreign missions, seamen, and security services, released this month by the Electoral Commission of Namibia, show that Nandi-Ndaitwah and her party, the South West Africa People’s Organization (SWAPO), are leading the race. SWAPO has governed Namibia since the country gained independence from South Africa’s apartheid regime in 1990. However, the party lost its two-thirds majority in the National Assembly for the first time in 2019, a blow largely attributed to corruption and money laundering scandals in Namibia’s fishing industry, which led to arrests and convictions of key ministers and businessmen. Political analyst Henning Melber, a professor at the University of Pretoria and University of the Free State, cautioned that SWAPO and Nandi-Ndaitwah must heed the 2019 election results, despite their apparent lead in the current race. He noted that SWAPO faces the challenge of attracting younger voters, who may not feel the same emotional connection to the party’s liberation history as older generations. Melber pointed out that “born-frees”—those born after the country’s liberation—are more likely to vote based on policy delivery and governance rather than historical sentiments. “The process of erosion of legitimacy as a former liberation movement has advanced too much,” he said. Nandi-Ndaitwah, 72, has promised to tackle high youth unemployment, which stands at 20%, by creating more than 500,000 jobs over the next five years, backed by a $4.7 billion investment. However, critics argue that her goals may be unrealistic. Issues affecting women, such as reproductive rights, equal pay, and healthcare, are also expected to be key topics for voters. Should she win, Nandi-Ndaitwah would join the ranks of other pioneering female African leaders, such as Liberia’s Ellen Johnson Sirleaf, Malawi’s Joyce Banda, and Samba Pranza of the Central African Republic. Erika Thomas, a political science lecturer at the University of Namibia, emphasized that Nandi-Ndaitwah would need to demonstrate independence, transparency, and accountability if elected. “She must also push for policies that increase women’s participation in political structures,” Thomas added. Nandi-Ndaitwah’s main competition will come from the Independent Patriots for Change, led by former dentist Panduleni Itula, and university professor Job Amupanda’s Affirmative Repositioning party. As the election campaigns wrapped up this weekend, political analysts pointed to significant changes across southern Africa this year. The ANC in South Africa lost its 30-year parliamentary majority, Botswana’s ruling party was unseated after 58 years in power, and the opposition in Mauritius claimed a landslide victory. Meanwhile, protests continue in Mozambique over disputed election results, leading to at least 30 deaths.

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IMF backs Egypt’s reforms, addresses global economic challenges

Business, Egypt /

IMF Highlights Progress in Egypt’s Reforms, Assesses Global Economic Challenges The International Monetary Fund (IMF) reiterated its support for Egypt’s reform program, noting significant progress despite ongoing economic difficulties exacerbated by regional tensions. Speaking in Washington, D.C. on Thursday, IMF Communications Director Julie Kozack praised Egypt’s commitment to key reforms designed to ensure macroeconomic stability. The IMF recently completed a mission to Egypt, making headway in discussions for the fourth review of the country’s 46-month loan program, which was approved in 2022 and expanded to $8 billion earlier this year. The program aims to address Egypt’s severe economic challenges, including high inflation and foreign currency shortages. Completing the review could unlock an additional $1.2 billion in financing for the country. Limited Economic Impact of Spain’s Floods The IMF also addressed the economic effects of the recent devastating floods in Spain, offering condolences to those impacted. While the floods caused significant damage in some areas, Kozack noted that the broader economic impact has been limited. Key infrastructure sectors such as transport and industry saw only minor disruptions. A more detailed assessment will be provided in the IMF’s World Economic Outlook update in January. Argentina’s Stabilization Efforts Show Progress The IMF also pointed to signs of economic stabilization in Argentina, following a challenging year of contraction. As the country works on restructuring its $44 billion loan with the IMF, Kozack reported progress in Argentina’s stabilization program, including reduced inflation, fiscal surpluses, stronger reserve coverage, and early signs of recovery in economic activity and real wages. The IMF pledged continued support to help Argentina maintain these gains and address remaining challenges. These updates underscore the IMF’s ongoing efforts to assist member countries in tackling complex economic issues and implementing reforms necessary for long-term stability.

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Developing nations reject $250B climate deal at COP29

Business /

At the UN’s COP29 climate summit in Baku, Azerbaijan, delegates from developing countries expressed disappointment over a proposed climate finance deal in which wealthy nations pledged $250 billion to poorer countries by 2035. While this amount is more than double the previous goal of $100 billion annually set 15 years ago, it still falls far short of the $1 trillion that developing nations have been requesting to cope with the impacts of climate change. “This is a slap in the face,” said Mohamed Adow from Power Shift Africa. “Our expectations were already low, but this is not something any developing country will accept.” COP29 has centered around the issue of climate finance, which requires wealthy nations to compensate developing countries for the damage caused by extreme weather events, support their adaptation efforts, and help them transition away from fossil fuels. For many developing nations, the summit represents one of the few opportunities to hold wealthy countries accountable, especially since they are often excluded from meetings of the world’s largest economies. The proposed $250 billion deal was announced later than expected, leaving many countries, analysts, and advocates frustrated and concerned about the transparency and handling of the negotiations. “These texts form a balanced and streamlined package for COP29,” summit organizers said in a statement, urging parties to carefully study the proposal to reach a consensus on the remaining issues. While wealthy nations and analysts argue that the pledged amount will be leveraged to increase overall climate funding, much of this financing will come in the form of loans—further burdening countries that are already struggling with high levels of debt.

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