🔅 South Africa's anti-corruption plans
Ramaphosa is overhauling its anti-corruption strategy
Good morning ☕
In today’s issue, Ethiopia peace talks are underway, 'We need a Marshall plan for Africa' says a US representative, and Sunak stabilises the pound…
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ECONOMY
South Africa's Ramaphosa outlines anti-corruption plans
What is Happening:
The South African government is overhauling its anti-corruption strategy following a judicial commission of inquiry into allegations of high-level graft during former President Jacob Zuma's nine years in power.
Inquiry reports said investigations, which implicated ANC politicians and company executives, found rampant graft across vital economic sectors, including state-owned companies such as power utility Eskom and freight and logistics group Transnet.
In a letter addressed to the Speaker of the National Assembly, President Cyril Ramaphosa said his response outlined steps government will take to catch suspects and other reforms.
Why it Matters:
The inquiry findings have damaged the reputation of the ruling African National Congress, which has been in power since the end of white-minority rule in 1994.
The party is due to hold a conference in May to elect new leaders, and the findings have put Ramaphosa under pressure to ensure the ANC does not lose power in local elections later this year.
Ramaphosa said the government would set up an inter-ministerial committee on state capture and that the director-general of intelligence would be appointed by the president and report directly to him.
ACROSS THE CONTINENT
Other Headlines
🇪🇹 An Ethiopian government delegation and rival Tigray forces are due to meet in South Africa for peace talks. These are the first talks since the war broke out two years ago. The war in Ethiopia is rooted in a power struggle between the federal government and Tigray authorities. The conflict has killed thousands, displaced millions and left hundreds of thousands on the brink of famine. The talks will focus on the immediate cessation of hostilities, unfettered humanitarian access, and the withdrawal of Eritrean forces.
🇸🇩 Sudan's ruling military has sacked a southern Blue Nile province commander after two days of fierce tribal clashes last week killed at least 220 people. The unrest has added to the woes of a country plagued by civil conflict. Fighting in the Blue Nile, which borders Ethiopia and South Sudan, reignited earlier this month over a land dispute, pitting the Hausa tribe, with origins across West Africa, against the Berta people. The tensions escalated Wednesday and Thursday in the town of Wad el-Mahi on the border with Ethiopia. The violence comes ahead of the first anniversary of Sudan's military coup that upended the nation's short-lived transition to democracy.
📝 'We need a Marshall plan for Africa', says US representative for Minnesota, Ilhan Omar. In an opinion piece in the UK Guardian, she argues that Africa has over 1.3 billion people and is expected to double in size by 2050. And even though Africa's economies are poised for more growth, the continent faces severe threats from malnutrition, lack of education, and the Covid-19 pandemic. She argues that the US has often treated African countries not as political and economic partners but as a security problem that needs to be addressed with military and policing solutions. However, Africans prefer to partner with the United States on infrastructure, development, and health. In 1948, the US invested in a 'Marshall plan' worth $13bn to help European economies become self-reliant and prevent the spread of Soviet totalitarianism--a move widely seen as successful.
AROUND THE WORLD
Sunak is named prime minister — British Pound stabilises
What is Happening:
The pound is broadly unchanged against the dollar on Monday afternoon, and government borrowing costs stayed lower after Commons leader Penny Mordaunt dropped out of the leadership race. Rishi Sunak is set to be the UK's next prime minister.
Earlier in the day, the pound had risen close to $1.14 against the dollar before falling back.
Last month, the sterling plunged to a record low against the dollar, and government borrowing costs rose sharply after outgoing Prime Minister Liz Truss's mini-budget.
Investors were spooked after then-Chancellor Kwasi Kwarteng promised significant tax cuts without saying how they would be paid for - something Mr Sunak warned about during this summer's Tory leadership contest.
Why it Matters:
The UK is also borrowing billions of pounds to limit energy bill rises for households and businesses.
The Institute for Fiscal Studies think tank predicted borrowing this year could reach £194bn, almost double the figure previously forecast by The Office For Budget Responsibility.
The country has a tricky line to walk.
FOOD FOR THOUGHT
Proverb of the Day
"A wise man who knows the proverbs of the land reconciles difficulties."
— Ashanti Proverb.
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