Crypto News: Next Africa: A perennial island dispute

Welcome to Next Africa, a daily newsletter on where the continent stands now — and where it’s headed. Sign up here to have it delivered to your email. In today’s edition, we look at the stalled deal to hand sovereignty of the Chagos Islands to Mauritius. And:

The Iran war is locking out food aid for famine-hit nations
Nigeria’s president names a new finance minister
Morocco unveils its tallest — rocket-shaped — building

An Island Tussle

A standoff over the Chagos Islands risks turning nasty, again.

A UK delegation arrived in Mauritius this week for discussions on a pact that has become a perennial saga — over a tiny outcrop that’s home to a joint UK-US military base.

The Indian Ocean island nation has been battling to regain control of the archipelago for the past seven decades. In 2019, the International Court of Justice found Britain’s 1965 takeover was unlawful, a ruling affirmed by the United Nations General Assembly.

The UK agreed to cede control after lengthy negotiations and Prime Minister Keir Starmer and his Mauritian counterpart Navinchandra Ramgoolam signed an accord almost a year ago setting out the terms.

Then Donald Trump stepped in.

A protest by Chagos islanders outside the High Court, London in 2007. Photo: PA Images/Alamy — A protest by Chagos islanders outside the High Court in London in 2007.

After initially backing the deal, which would have enabled the UK and US to maintain full operational control over the Diego Garcia base, the US president backtracked, posting on social media that relinquishing ownership was “an act of GREAT STUPIDITY.”

The UK buckled under the pressure and abandoned efforts to get the accord offering Mauritius annual payments for 99 years ratified by parliament.

Mauritius, which was anticipating a windfall now has a gaping hole in its budget — it faces a $215 million revenue shortfall in the current fiscal year alone — and its government has hinted at further legal action.

“Le me be clear, we shall leave no stone unturned until the issue of the Chagos archipelago is resolved, diplomatically or otherwise,” Ramgoolam told lawmakers in Port Louis yesterday.

While Mauritius would have the upper hand in any legal battle, as London acknowledged last year, the process would likely take years and it would still have to confront the challenge of enforcing its rights.

For now, the two nations are still talking.

Whether they can reach a common understanding that’s acceptable to Trump remains the multibillion-dollar question. — Kamlesh Bhuckory

Chagos Islands Photographer: Pictures From History/Universal Images Group/Getty Images — Chagos Islands.

What Everyone’s Reading

Trump indefinitely extended a ceasefire with Iran just before its expiration, while maintaining a naval blockade of the Strait of Hormuz after planned peace talks fell apart. The war is keeping thousands of tons of food aid locked out of famine-hit Sudan and other African countries as the effective shutdown of the waterway roils global shipping.

Today’s Big Take analyses satellite data to reveal the scale of destruction from weeks of airstrikes on Tehran, Iran’s capital.

South African annual inflation edged higher in March, even before the Iran war triggered a surge in domestic fuel costs. Meanwhile, the state power utility said it should be able to avoid electricity cuts this winter, thanks to a marked improvement in the performance of its plants, while still highlighting longer-term supply risks and mounting overdue debt.

China indicated it was pleased with three African countries that apparently blocked Taiwanese President Lai Ching-te’s visit to Eswatini, the island’s only diplomatic ally on the continent. Taiwan halted Lai’s first foreign trip in more than a year at the last minute, saying Beijing pressured Seychelles, Madagascar and Mauritius to withdraw their approval for his plane to travel through the flight-information regions they administer.

Nigeria’s president appointed Taiwo Oyedele, the head of the nation’s tax reform committee, as the new finance minister. Oyedele replaces Wale Edun, who oversaw the removal of a popular fuel subsidy, carried out tax reforms that boosted government revenue and worked with the central bank to liberalize currency controls.

France is in talks to lend South Africa €100 million to support a program to regenerate its rundown cities. The funding would add to the $925 million lent to the country by the World Bank to finance a National Treasury program aimed at improving water and sanitation, electricity provision and solid-waste management services.

Russia Expands Sahel Arms Network Via Guinea, Sentry Probe Finds

Russia is expanding its military logistics network in West Africa, using the port of Conakry as a key transit hub for equipment bound for Mali, an investigation by The Sentry has found.

Coming soon: Get the AI Today newsletter — chronicling the disruptions and threats of AI on businesses, workers, governments and economies with analysis from Bloomberg’s global newsroom.

Africa Newsmaker

John Korir of Kenya crosses the finish line to win the men's Boston Marathon on April 20. Photographer: Paul Rutherford/Getty Images — John Korir crosses the finish line to win the men’s Boston Marathon.

Kenya’s John Korir broke the course record at the Boston Marathon with a time of 02:01:52, defending his victory from last year. About 30,000 runners took part in the iconic race — one of the seven World Marathon Majors — on Monday. In the women’s division, Sharon Lokedi, also from the East African nation, won for the second consecutive year.

Last Word

Morocco’s tallest building, a $700 million skyscraper inspired by the rocket that put a man on the moon, is finally opening for business — the latest symbol of progress for one of North Africa’s fastest-growing economies. King Mohammed VI Tower, which is 55 storeys and 250 meters high, has been taking shape for the past eight years on the edge of Rabat.