Friday, January 31, 2025

Next Africa: A war of words

Rwandan, South African leaders engage in public spat
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The rapid advance of a rebel group in the Democratic Republic of Congo has sparked a war of words between two of Africa's most influential leaders.

Rwandan President Paul Kagame and South Africa's Cyril Ramaphosa engaged in a public spat, hours after a key Congolese trading hub fell to Kigali-backed M23 rebels this week.

The ever-prickly central African strongman went as far as daring Pretoria to confront Rwanda after South Africa's defense minister suggested Ramaphosa had warned his counterpart that any attacks on his troops in the escalating conflict in eastern Congo would be regarded as "a declaration of war."

Members of M23 drive through the streets of Goma on Wednesday. Photographer: AFP/Getty Images

"President Ramaphosa has never given a warning of any kind, unless it was delivered in his local language which I do not understand," Kagame said in a post on X. "And if South Africa prefers confrontation, Rwanda will deal with the matter in that context any day."

Ramaphosa leads the continent's biggest economy and his troops are part of  a regional peacekeeping force in Congo. More than a dozen South African soldiers were killed in the battle around Goma.

Kagame's prominence belies his nation's size, built up by strong relations with Western powers and a powerful army that's assisted in several other African countries. While he denies his military is involved in the Congo fighting, the United Nations, US and Congo say Rwanda backs the M23.

The acrimony between South Africa and Rwanda has history.

Congolese President Felix Tshisekedi and Kagame at the Grande Barrière border post in Rubavu, Rwanda, in June 2021. Photographer: Simon Wohlfahrt/AFP/Getty Images

In 2014, Pretoria expelled Rwandan diplomats for alleged illegal acts, including the alleged assassination of dissidents. Seven years later, South Africa accused Rwanda of spying on Ramaphosa in the Pegasus spy-ware case.

It's only in recent months that the two have sought to mend fences, but the prospects of reconciliation now look remote in the wake of this week's diplomatic fallout.

The tit for tat comes as regional bodies scramble to end the fighting amid fears that an all-out war could break out.

Foreign powers including the US and France have ratcheted up pressure on Kagame, but he shows no signs of letting up — and the M23 has continued its advance in eastern Congo.

While an actual clash between Rwanda and South Africa — thousands of miles apart — is unlikely, the animosity augurs ill for any Congo ceasefire talks. — S'thembile Cele

Key stories and opinion:
Ramaphosa, Kagame Trade Barbs Over Rwanda-Backed Siege in Congo 
Rwanda-Backed Rebels Pressing Toward Bukavu in Congo, UN Says
Congo President Vows 'Resistance' Over Rebel Seizure of Key City 
War in Congo Raises Infectious-Disease Risk for Millions 
Rwanda-Backed Rebel Gains in Congo Show Kagame's Growing Power
How Rebel Advances in Congo Threaten War With Rwanda 

On this week's Next Africa podcast, reporters Simon Marks and Michael Kavanagh join Jennifer Zabasajja to explain who the key players in the conflict are and what chances there are of a wider regional conflict.

News Roundup 

Confusion about the Trump administration's directive on foreign assistance is raising the risk of a spread of tuberculosis, the airborne disease that's one of the top causes of death in children, according to Linda-Gail Bekker, head of the Desmond Tutu Health Foundation. Waivers approved earlier this week by Secretary of State Marco Rubio were welcomed by the UN AIDS agency — it said this allows several countries to continue accessing life-saving HIV treatments — but many programs remain halted. The Andelson Office of Public Policy estimated that almost 136,000 babies may be born with HIV in the next three months in the order stays in place

WATCH: Bekker discusses the implication of the foreign-aid order in Africa on Bloomberg TV. 

Nigeria's imports of gasoline are on course for an eight-year low as a new mega-refinery pushes out foreign suppliers, boosting the nation's fuel independence. The Dangote plant is bigger than any other refinery in Europe or Africa and has been touted as a way for Nigeria, Africa's biggest oil producer, to become less dependent on gasoline imports. Separately, Nigeria LNG's exports of liquefied natural gas have taken a hit after vandalism damaged pipelines, curtailing gas supplies to its plant.

The exit of Mali, Niger and Burkina Faso from West Africa's economic bloc has raised concerns about regional stability and could hamper trade and finance. The three nations — all under military rule and accounting for more than half of the bloc's territory — effectively parted with the Economic Community of West African States this week. A spike in militant attacks in coastal West Africa, with Benin and Togo among the hardest hit, is raising fears the extremist violence that has long troubled the Sahel region will spread to neighboring countries if left unaddressed. 

Botswana reached a diamond-extraction and sales agreement with De Beers that will bring certainty to the gem-dependent economy, newly elected President Duma Boko said in an interview. Terms were finalized on Jan. 24 and will be announced soon. The southern African nation is the top miner of rough diamonds by value and the industry generates the bulk of its income. Most of Botswana's gems are produced by Debswana, a venture between Anglo American's De Beers unit and the government.

South Africa is preparing a bid to host a race on the 2027 Formula 1 grand prix calendar, which would be its first in more than three decades. The government is in talks with organizers and will be submitting its proposal in May, Sports Minister Gayton McKenzie says. Discussions have been held with potential sponsors, including Heineken and Red Bull, to help raise $50 million to push the bid. Rwanda has also expressed its interest in hosting Formula 1.

The F1 grand prix in Las Vegas in November 2023. Photographer: Dan Istitene/Formula 1

A coalition of leading African civil-society groups urged the World Bank to exit its investments in for-profit hospitals. The calls follow a Bloomberg News investigation that found some facilities backed by the lender detained patients for unpaid bills and denied others emergency care until they demonstrated an ability to pay. The Africa Public Services coalition said the ongoing support for private hospitals was having a "devastating impact" on low-income patients. 

Next Africa Quiz — Which Africa country reported a new outbreak of Ebola this week? Send your answers to gbell16@bloomberg.net.

Past & Prologue

Data Watch

  • South Africa's central bank lowered interest rates for a third meeting, while warning that risks to the inflation outlook have increased. It cut the benchmark rate to 7.5%.
  • Uber-backed Moove bought Brazil's Kovi as part of plans to further grow its income and footprint outside of Africa. The deal for an undisclosed amount would place the $750 million startup among the world's top-three fleet operators by revenue.
  • Castel Group has agreed to acquire Diageo's 80% stake in its Ghana unit and expand in the West African nation that's recovering from a debt crisis.
  • Kenya's inflation rate remained below the 5% midpoint of the central bank's target range for an eighth straight month in January, providing scope for the central bank to cut interest rates next week.
  • South African power utility Eskom announced power outages for the first time in almost a year, a day after it was denied the full 36% tariff increase it wanted. 

Coming Up

  • Feb. 3 Ghana inflation data for January, South Africa new-vehicle sales & manufacturing PMI for January, Nigeria PMI
  • Feb. 4 Mauritius interest-rate decision
  • Feb. 5 Kenya interest-rate decision, PMI reports for Uganda, Kenya, Zambia, Ghana and South Africa
  • Feb. 6 Uganda interest-rate decision, Mozambique PMI, South African president's state-of-the-nation speech
  • Feb. 7 South Africa reserves & central bank government bond holdings data for January, Mauritius inflation & reserves for January and Seychelles inflation 

Quote of the Week

"I'm a relentless person and when it comes to Africa I will walk relentlessly like this until my last day. My purpose in life is for Africa and whatever I do, it'll be in Africa."
Akinwuni Adesina
African Development Bank president
Adesina was commenting in an interview on what he plans to do after his term ends in August.

Last Work

At his ranch in southwest Nigeria, Moyosore Rafiu watches as an artificial insemination specialist carefully inspects whether his cows are ready. If he gets the nod, another part of his herd will be impregnated with imported semen from the hardy Girolando breed from Brazil. Switching to cattle that can withstand the African climate means twice the milk and more income for Rafiu. But it could also be a game changer for Nigeria, home to one of the world's most food-insecure populations. Rafiu is one of thousands of farmers across Nigeria who are part of an insemination program overseen by the country's top dairy producer, FrieslandCampina, to genetically improve cattle.

Rafiu at his dairy farm in Iseyin Oyo, Nigeria. Photographer: Tom Saater/Bloomberg

We'll be back in your inbox with the next edition on Tuesday. Send any feedback to gbell16@bloomberg.net.

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