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Published 18th April 2025

Vol 66 No 8


South Africa

The budget fight threatening to shatter the coalition

Enoch Godongwana. Pic: GovernmentZA
Enoch Godongwana. Pic: GovernmentZA

Both the ANC’s Ramaphosa and the DA’s Steenhuisen are fighting to preserve power-sharing – but for vastly different reasons

When Finance Minister Enoch Godongwana failed to secure backing within the Government of National Unity (GNU) on 12 March for his proposal to raise VAT from 15% to 17% to finance this year’s budget, he handed a powerful weapon to the centre-right Democratic Alliance (DA). Godongwana, an African National Congress (ANC) stalwart, faced opposition to his VAT hike across the political spectrum – from the extreme right to the two main populist parties, the Economic Freedom Fighters (EFF) and the uMkhonto weSizwe (MK) party. That should have allowed the DA to lead parliamentary opposition to Godongwana’s plan, but it failed to seize the opportunity.


Washington tries a new push in Kinshasa

Massad Boulos meets with Félix Tshisekedi. Pic: @Presidence_RDC
Massad Boulos meets with Félix Tshisekedi. Pic: @Presidence_RDC

President Trump’s special advisor is testing transactional diplomacy amid the conflict and the continent’s biggest reserves of critical minerals

Washington’s latest intervention in Kinshasa, led by Massad Fares Boulos, senior advisor to United States President Donald Trump, is disrupting the calculations of Congolese politicians and warlords. Boulos,...

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How Trump’s in-law shut down the Kinshasa lobbyists

Massad Boulos meets with Félix Tshisekedi. Pic: @Presidence_RDC
Massad Boulos meets with Félix Tshisekedi. Pic: @Presidence_RDC

After meeting the US President’s senior Africa envoy, President Tshisekedi has blocked millions of dollars’ worth of consultancy deals

After agreeing contracts with a string of K-Street lobby shops worth close to US$8 million with mandate to broker a mineral access deal with US President Donald Trump’s...



BLUE LINES
THE INSIDE VIEW

Facing the prospect of United States's tariffs that will hurt their exports, the European Union and African Union are under pressure to deepen and widen their trade relations. The European Commission wants to diversify its trade partnerships, setting a December deadline for a trade deal with India and opening negotiations with the United Arab Emirates. In practice, the EU moves as fast as its slowest member on trade, whether it is the French farm lobby or German car makers. Africa’...

Facing the prospect of United States's tariffs that will hurt their exports, the European Union and African Union are under pressure to deepen and widen their trade relations. The European Commission wants to diversify its trade partnerships, setting a December deadline for a trade deal with India and opening negotiations with the United Arab Emirates. In practice, the EU moves as fast as its slowest member on trade, whether it is the French farm lobby or German car makers. Africa’s capacity is also problematic. With 54 states, many of them small and poor, Africa will be near the back of the queue when dealing with Washington.

Trade relations between the EU and Africa have been in stasis for 20 years ever since Lord Peter Mandelson, then the EU’s Trade Commissioner, pushed unpopular Economic Partnership Agreements on African regional blocs. Only a couple of them have ever been fully implemented.

In 2018, Carlos Lopes, then the AU’s advisor, tried to solve the leverage question by seeking a mandate for the AU to negotiate a continent-to-continent trade deal with Brussels. It made a lot of sense then and makes even more now. But Lopes was blocked by both the EU Commission, who preferred the status quo, and several African governments, including South Africa and Kenya, who feared that the AU could acquire too much power. The question now is whether Africa or the EU can afford to be so short-sighted.

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Ailing Salva ups the ante

Salva has made aggressive moves with Ugandan backing as a visa row with the US marks the superpower’s turn away from its one-time friend

Amid visible signs of worsening ill-health, President Salva Kiir Mayardit has been moving to protect his authority and succession, just as the house arrest of First Vice-President Riek...


IMF sees economic light in Addis amid political gloom

The Fund expects high growth and increasing tax revenues as Abiy Ahmed’s pro-market reforms bed in

As Ethiopia’s government grapples with insurgent forces in its Amhara, Oromo and Tigray provinces and heightened tensions with neighbouring Eritrea and Somalia, Prime Minister Abiy Ahmed and his...


Mamady Doumbouya plots a popular mandate

The sudden release of former dictator Camara fits with the junta leader’s plan to silence party politics and fashion a presidential election victory

One is a self-promoted general – Mamady Doumbouya, head of the military junta, the Comité national du rassemblement pour le développement (CNRD), in power since September 2021. The...


Economic rebound complicates debt talks

Officials in Addis Ababa say the restructuring is almost agreed – but commercial creditors want better terms as growth picks up

Ethiopian officials are making progress towards restructuring US$8.4 billion external debts owed to official creditors, announcing an ‘agreement in principle’ on 21 March but they are locked into...



Pointers

Cash, platitudes but no peace

About US$750 million in fresh humanitarian aid – €522m ($592m) from the European Union and £120m ($158m) from the United Kingdom – was on the table along with...