Africa News
LAST UPDATE: May 16, 2025
US shifting Africa strategy to 'trade, not aid', envoy says
Reuters
The US is transitioning its Africa policy from aid-based support to a focus on trade and commercial engagement. Ambassadors will be evaluated based on successful business deals rather than aid distributed. The strategy includes a $550 million loan for the Lobito rail corridor to enhance mineral exports and counter Chinese and Russian influence.
Insight
This shift signifies a strategic reorientation of US foreign policy in Africa, emphasizing economic partnerships over traditional aid. By focusing on trade, the US aims to foster mutual prosperity and reduce dependency, while also countering the growing influence of China and Russia on the continent.
Trump senior Africa adviser discussed peace plan with Rwanda, Congo leaders
Reuters
Massad Boulos, President Trump's senior adviser for Africa, has engaged in discussions with the presidents of Rwanda and the Democratic Republic of Congo regarding a draft peace agreement aimed at resolving the conflict in eastern Congo. The initiative seeks to stabilize the region and attract Western investments.
Insight
The US's involvement in facilitating peace talks between Rwanda and Congo highlights its strategic interest in stabilizing the mineral-rich region. Successful negotiations could lead to increased foreign investment and a reduction in regional conflicts, aligning with US economic and geopolitical objectives.
EBRD greenlights new African members for investment
Reuters
The European Bank for Reconstruction and Development (EBRD) has approved Nigeria, Ivory Coast, and Benin as new recipient member states, granting them access to substantial investment opportunities. This decision marks a significant step in the bank's strategic expansion into Sub-Saharan Africa.
Insight
The inclusion of these West African nations into the EBRD's investment portfolio underscores the bank's commitment to fostering economic development in Sub-Saharan Africa. This move is expected to enhance financial support for infrastructure, green energy, and governance reforms in the region.
South African Deputy Finance Chief Sees Budget 3.0 as Done Deal
Bloomberg
South Africa's Deputy Finance Minister, David Masondo, has indicated that the third iteration of the national budget, known as Budget 3.0, is finalized and will be presented in Cape Town on May 21. The Democratic Alliance (DA) has expressed objections to proposed value-added tax increases.
Insight
The finalization of Budget 3.0 reflects the government's efforts to address fiscal challenges amidst political opposition. The outcome of the upcoming budget presentation will be pivotal in determining South Africa's economic trajectory and public sector reforms.
Nigeria's annual inflation rate dips in April
Reuters
In April 2025, Nigeria's annual inflation rate marginally declined to 23.71% from 24.23% in March, according to the National Bureau of Statistics. This follows a broader trend of fluctuating inflation in the country, which experienced 28-year highs following economic reforms in 2023.
Insight
The slight decrease in inflation indicates a potential stabilization of Nigeria's economy post-reforms. However, sustained efforts are required to address underlying factors such as food prices and currency volatility to ensure long-term economic stability.
Angola's debt and economic challenges
Reuters
The International Monetary Fund (IMF) has lowered Angola's 2025 growth forecast to 2.4%, attributing the downgrade to falling crude oil prices and rising global interest rates. Angola's heavy reliance on oil exports and significant external debt obligations have raised concerns among investors.
Insight
Angola's economic challenges highlight the vulnerabilities of oil-dependent economies amidst global market fluctuations. The country's consideration of new IMF support underscores the need for diversified economic strategies and fiscal reforms.
Tigray opposition party in Ethiopia calls its ban a 'serious threat' to peace process
AFP
A Tigray opposition party in Ethiopia has condemned its ban as a significant threat to the ongoing peace process in the region. The party asserts that such actions undermine efforts to achieve lasting peace and reconciliation following the recent conflict.
Insight
The banning of opposition parties in Tigray raises concerns about the inclusivity and sustainability of the peace process in Ethiopia. Ensuring political pluralism and addressing grievances are essential for long-term stability in the region.
Mali junta tightens screw as fears of long army rule grow
AFP
Mali's military junta has dissolved all political parties and banned political gatherings, intensifying its grip on power. This move follows unprecedented protests demanding a return to civilian rule.
Insight
The dissolution of political entities signals the junta's intent to prolong military rule, undermining democratic processes and potentially destabilizing the region.
