๐ Uganda Responds To World Bank Pressure, Russia Following America's Lead in Mercenary Use
Plus, How an African Goalkeeper Inspired a Legend & Debt-for-Nature Swaps
Photo of the day: Zambia
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Madagascar and Kenya's Rates |ย The Bank of Madagascar is cranking up the heat, raising its key rate by 50 basis points to 11%. Meanwhile, the Bank of Kenya is playing it cool, leaving its benchmark rate at 10.5%. The moves come as Madagascar struggles to bring inflation back to single digits, while Kenya expects prices to keep going down.
*Data accurate as of the close of markets across the continent
Brief & Bright: Africa's Top Five Highlights
Uganda's Response to the World Bank's Anti-LGBTQ Law: We'll Just Find Other Sources
After the World Bank suspended new funding to Uganda in response to the countryโs anti-LGBTQ law, President Yoweri Museveni fired back with a statement that made it clear that Uganda will not be intimidated. โThey really underestimate all Africans,โ he said, adding that Uganda would tap other sources of credit if needed. Museveni also pointed to the expected start of oil production in 2025 as a source of potential revenue. Human rights organizations have strongly criticized the law, which imposes the death penalty for certain โaggravated homosexualityโ offences. In response, the World Bank said that the law โunderminesโ its efforts to eradicate poverty and that it would suspend new funding until it could test measures to prevent discrimination in projects it finances. In response, the Ugandan government is preparing to revise its budget to reflect the potential financial impact of the World Bankโs decision. Meanwhile, the US has imposed visa restrictions on some Ugandan officials and is reviewing US aid to the country.
Russia's Mercenaries: Following America's Lead?
After Wagner Group's mutiny in Ukraine, Russiaโs President Putin chose to let its founder, Yevgeny Prigozhin, live to fight another day. Not just that, he allowed his fighters to keep on doing their thing outside of Russia and Ukraine. The Kremlin is well aware of the utility of private military companies (PMCs) and has probably been taking cues from Americaโs heavy reliance on them for years. During the height of the 2008 counterinsurgency effort in Iraq, for example, there was almost an equal distribution of PMCs (163,400) compared to US troops (146,800). PMCs offer a convenient means for proxy warfare and plausible deniability, and the US has poured trillions of dollars into them to help with military operations in Afghanistan, Iraq, and elsewhere. The result has been a powerful military contractor industry that has gone global and transformed how great and smaller powers engage in warfare. Looks like Russia took a page out of Americaโs book, which is how we ended up with such a significant presence of Russian PMCs in Africa.
Madagascan Chief-of-Staff in UK Court Over Alleged Bribe
Madagascan president's chief-of-staff Romy Andrianarisoa and her associate Philippe Tabuteau were arrested in London last week for allegedly offering a British gem mining firm licenses in exchange for ยฃ225,000. The National Crime Agency said the pair also asked for a 5% equity stake in any Madagascar projects. Andy Kelly, head of Madagascar's National Crime Agency, said he was "grateful to Gemfields for bringing this matter to our attention." The two were remanded in custody after their court appearance and are set to appear again in September.
How a Cameroonian Turned Buffon Into a Legendary Goalkeeper
Who said you can't find inspiration in the most unlikely of places? Gianluigi Buffon, the legendary 45-year-old Italian goalkeeper, was almost an attacking midfielderโuntil he saw Cameroonian Thomas N'kono play at the 1990 World Cup. That's when Buffon decided to switch positions and become a goalkeeper. In an interview with the BBC's Victoire Eyoum, Buffon shared how N'Kono's performance inspired his life.
Gabon's Debt-for-Nature Swap: A Win-Win for Conservation and Finances
Hereโs a situation where everyoneโs a winner: Gabon just closed a debt-for-nature swap that will ease its debt burden while also giving a boost to conservation efforts. The $500 million deal, facilitated by Bank of America, will see Gabon pay back its debt over a longer period and with lower interest rates. In exchange, the African nation is spending at least $125 million to widen a marine reserve and protect endangered humpback dolphins. Activist investor Jeff Ubben, who sits on the board of ExxonMobil and is part of the advisory team for the UN climate summit COP28, believes that this type of debt-for-nature swap could be the key to reshaping the financing landscape for developing countries. โItโs the hardest thing to do in the world to put money into [protecting] nature,โ he said. โ[But] you get enough use cases and more and more participants are comfortable and then it really takes off.โ
Food for Thought
โYou must attend to your business with the vendor in the market, and not to the noise of the market.โ
โ Beninese Proverb.
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