Welcome to Next Africa, a weekly newsletter of where the continent stands now — and where it’s going next.
When Nelson Mandela came to power in 1994, ending apartheid, the slogan of his African National Congress was “a better life for all.” Opportunities were promised to those who had been oppressed.
A quarter of a century later, most South Africans aren’t much richer, and the ANC has been dogged by corruption scandals and tales of personal enrichment. The coronavirus outbreak and a rush by the government to procure the personal-protective equipment needed for health workers to treat it, has resulted in a feeding frenzy among the political elite that has been criticized by the party itself.
Contracts, often at inflated prices, were won by the husband of President Cyril Ramaphosa’s spokeswoman, the sons of ANC Secretary-General Ace Magashule and the daughter of Nomvula Mokonyane, a senior ruling party politician. No evidence has been given that any of them has experience in supplying or producing health equipment.
South African President Cyril Ramaphosa.
Under Ramaphosa, it was supposed to be different. The former unionist and successful businessman promised to crack down on the corruption that characterized the rule of his predecessor, Jacob Zuma. The scandal-ridden Zuma administration saw tens of billions of rands looted from the government and state companies.
Ramaphosa has once again promised to bring those responsible for the latest corruption to justice. Still, the ANC rejected his proposal that a high-powered party panel be appointed to probe offenders, opting for the matter to be handed to an integrity commission whose rulings have been ignored in the past.
With an inability to clean up his own political organization, the president’s weakness is apparent, some South African political and business leaders say. That augurs badly for the success of his plans to enact unpopular reforms to try and revive a tanking economy.
News & Opinion
Power Clash | Zimbabwean President Emmerson Mnangagwa clashed with his deputy, Constantino Chiwenga, who he accused of planning to use an opposition protest to embarrass him. The rift between the nation’s most powerful men comes as its economy implodes. Meanwhile, the U.S. sanctioned Zimbabwean businessman and Mnangagwa adviser, Kudakwashe Tagwirei, for alleged corruption it said has derailed the southern Africa nation’s economic development.
Zimbabwean President Emmerson Mnangagwa.
Pulling Out | Shoprite, Africa’s biggest food retailer, plans to exit Nigeria after it struggled with supply-chain disruptions and faced challenges in getting money out of the country. Nigeria is reeling from a slump in oil prices that hit its dollar supplies, and a naira that was devalued earlier this year. Delays in clearing goods from Nigerian ports has contributed to Shoprite’s challenges in getting stock onto shelves.
Nuclear Power | Kenya’s nuclear agency published impact studies for a $5 billion power plant, and said it’s on course to start operating the facility in about seven years. The government wants to expand nuclear-power capacity fourfold from a planned initial 1,000 megawatts by 2035. The Nuclear Power and Energy Agency is assessing technologies to identify the ideal reactor for the East African nation.
Automotive Deal | Volkswagen started assembling vehicles in Ghana following a partial government ban on imports of used cars. The German automaker will initially assemble vehicles using a local partner, Universal Motors, and is targeting 50,000 units annually. Nissan, Toyota, Suzuki and Renault are also considering plants in the west African country.
Time Out | The U.S. said time may be running out for negotiating an agreement on the operation of Ethiopia’s mega-dam on the Nile River that’s pitted the Horn of Africa nation against Egypt and Sudan. African Union-brokered talks on the matter ended last month without an agreed timeline for the filling of the Grand Ethiopian Renaissance Dam. The nations’ leaders said they’re committed to further talks.
The Blue Nile river as it passes through the Grand Ethiopian Renaissance Dam.
Past & Prologue
Data Watch
South African new-vehicle sales are set to fall to a 17-year low in 2020 as the country faces its biggest economic contraction in almost nine decades. Kenya’s Nairobi Securities Exchange 20 Share Index slid for seven consecutive months through July, falling to the lowest in 17 years.
Coming Up
August 10 Uganda interest-rate decision, Rwanda July inflation August 11 South Africa May and June manufacturing data August 12 South Africa July business confidence and June retail sales, Ghana and Angola July inflation August 13 South Africa June mining dataLast Word
Mauritius was the first African country to get the coronavirus under control, and is one of the few places globally without local transmissions in more than three months. Now it’s weighing whether to attract the tourists that are its economic lifeblood. The Indian Ocean island nation recorded its last Covid-19 death on April 27 and has managed to keep the total number of confirmed cases to just 344. But in a country that relies heavily on travelers flocking to its white beaches, the government is under pressure to reopen the airport and rescue an industry that employs almost a fifth of its workforce. It’s not without risk: The Bahamas saw infections jump after opening up to travelers in July.
Turtle Bay, Mauritius.
