Crypto News: Next Africa: A swim in a pothole

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 Johannesburg's decaying infrastructure and a new style of electioneering, as well as:

African governments reacting to surging oil prices
Russia sending more weapons to Madagascar
And Chinese miners joining an African copper-rail project

Swimming in a Pothole

Helen Zille donned a wetsuit and snorkel and stepped into a giant water-filled pothole on a suburban Johannesburg street.

The 75-year-old South African politician even tried the backstroke as she literally waded into the debate on failing infrastructure in the continent's richest city. The crater from a burst pipe had raised the ire of residents for about three years.

The spectacle soon trended on social media, highlighting not only the service-delivery problems in the city, but how her bid to become Johannesburg's next mayor for the Democratic Alliance has redefined usually staid election campaigning.

Much has already been written about the decline of South Africa's main industrial and financial hub following years of neglect, mismanagement, graft and political instability. Water shortages have reached crisis levels, with residents rioting in areas subjected to weeks of empty taps.

The stakes are high — further decay could weigh on investments in an already sluggish national economy.

A self-appointed traffic controller directs traffic, to make money from driver tips, while traffic lights are down during a power shutdown, known locally as loadshedding, in Johannesburg, South Africa, on Tuesday, May 23, 2023. Africa's richest city was built on gold, but it's now defined by chaos, crime and corruption more than ever and encapsulates the wider collapse of basic services across South Africa. Photographer: Leon Sadiki/Bloomberg — Self-appointed traffic controllers direct cars for tips in Johannesburg.

For some, in a metro where axel-busting roads and broken traffic lights are common, Zille's swim was a humorous recognition of lived reality.

Others simply brushed it off as a gimmick — the former mayor of Cape Town and ex-opposition-party leader had already posted videos of fixing a damaged road and directing traffic at a chaotic intersection.

The campaign shift appears to be working.

A poll by the Social Research Foundation shows support for the DA has climbed 13 percentage points to 39% since the previous local election in 2021 — making it the most popular group in the city currently.

There is still a long time to go (the election must be held by early February) and the former journalist remains a controversial figure. Past commentary including about race has angered many people, and she frequently clashes with the African National Congress, her party's national coalition partner.

It's also unclear if the social-media strategy can cut through voter apathy and ensure broad support in a city that's seen little progress from 10 mayors over the past nine years, including from the DA.

Still, the pothole stunt did bring results: The hole was filled the next day, with a smart-dressed mayor, Dada Morero, filming his own video from the site to remind children that swimming in flooded street holes is dangerous.

The repair was short-lived, though, with the pipe bursting again a day later. — Prinesha Naidoo

Jennifer Zabasajja speaks with Zille about her mayoral campaign on Bloomberg TV.

Watch Now — Jennifer Zabasajja speaks with Zille about her mayoral campaign on Bloomberg TV.

What Everyone's Reading

Donald Trump tried to sell the American public on his Iran war, but a primetime speech five weeks into the conflict instead underscored the US president's growing defensive posture, rattling investors. With fuel prices surging as much as 81%, African governments are rolling out subsidies and cutting taxes to help cushion households.

Sudanese gold exports to the United Arab Emirates plunged last year, after the military-backed government ended relations with the Gulf state. Sudanese authorities cut ties with the UAE last May, and have repeatedly accused Abu Dhabi of backing the Rapid Support Forces, the paramilitary group that's battling the army for control of the North African country.

Chinese mining, shipping and logistics companies are joining a $1.2 billion project to revamp a railway linking Zambia's copper region to Dar es Salaam on the Indian Ocean. The support for the project comes as Washington tries to loosen Beijing's grip on supply chains for critical minerals in Africa.

Madagascar's five-month-old military government received another shipment of Russian arms and equipment as the two countries deepen ties. A consignment of armored vehicles, small arms, ammunition and uniforms comes as Moscow seeks to boost its clout in a number of fragile states in Africa.

The collapse of Koko Networks, a World Bank-backed clean-cooking company, has struck a blow to confidence in the carbon market, already battered by credibility issues for years. The bankruptcy has had a ripple effect across projects selling carbon credits and the marketplaces on which those offsets are traded.

A store with Koko branding in Nakuru City, Kenya. Photographer: James/Wakibia/SOPA Images/LightRocket/Getty Images — A store with Koko branding in Nakuru City, Kenya.

Mozambique will continue to work with the International Monetary Fund on the framework for a new program after repaying $700 million early, the finance ministry said. The surprise move to settle the obligations even as the government faces severe liquidity pressures raised questions over its motives and future deals with the Washington-based lender.

Nigeria Weighs $5 Billion Swap Deal With UAE Bank as Costs Rise

Nigeria plans to raise $5 billion from the UAE' largest lender in a derivatives deal to cut borrowing costs, joining a growing number of African nations using the instruments as the war in Iran drives yields higher.

Olugbenga Agboola, chief executive officer of Flutterwave.

Flutterwave Wins License to Operate as a Microlender in Nigeria

Africa's most valuable financial-technology unicorn has secured approval to operate as a national microlender and will be able to compete with banks for business.

Next Africa Quiz — Which country's president and some senior officials took a pay cut this week after announcing higher fuel prices? Send your answers to gbell16@bloomberg.net

What's Coming Up

April 5: Egypt PMI for March
April 7: PMI reports for Kenya, Uganda, Ghana, South Africa and Zambia, Mauritius inflation & reserves data for March, Egypt reserves, Seychelles inflation
April 8: Kenya interest-rate decision
April 9: South Africa reserves data for March & manufacturing production for February, March inflation data for Namibia and Egypt, Democratic Republic of Congo interest-rate decision
April 10: Senegal, Rwanda and Mozambique inflation

Last Word

Almost half of South Africa's wastewater facilities are in a critical state, raising the risk of them discharging untreated water into rivers and the environment. Two other studies conducted by the Department of Water and Sanitation showed that a significant number of drinking-water systems remain in high-risk categories and require intensive and urgent corrective action. "Where there is inaction, the department will act," Water and Sanitation Minister Pemmy Majodina said.