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A Temporary Reprieve for Beleaguered Migrants: Next Africa - BLOOMBERG
By Michael Cohen and S'thembile Cele
Once lauded for opening borders to African refugees, South Africa is trying to clamp down on migrants ahead of next year’s elections.
The government was forced to extend special residence permits for some nationals from Zimbabwe and Lesotho by two years after the appeals court barred it from rescinding them.
The authorities had decided not to renew the visas for more than 232,000 people to help cut the number of migrants in the country — which officially stands at almost 4 million.
That may not be the end of the case. Home Affairs Minister Aaron Motsoaledi is appealing the ruling, warning foreign nationals are placing an excessive burden on taxpayers.
He also plans to revamp the laws governing citizenship, immigration and refugees, limiting the rights of asylum seekers and to reduce benefits granted to migrants. The overhaul will address a “mistake” the government made by adopting United Nations immigration protocols after apartheid ended in 1994 without taking the country’s own needs into account, the minister says.
The African National Congress welcomed neighbors after it came to power, grateful for the support the continent offered to end White-minority rule. Yet perceived competition for scarce services and jobs has blown up into bouts of bloody xenophobia over the past 15 years, making migrants a hot political topic.
With polls showing the ANC risks losing its outright majority and several opposition parties capitalizing on anti-foreigner sentiment, the challenges most migrants face look set to become more daunting.
News Roundup
Opposition leaders in the Democratic Republic of Congo are in talks about choosing a single candidate to face President Felix Tshisekedi in national elections in two weeks time. Martin Fayulu, who was officially runner-up to Tshisekedi in the disputed 2018 vote, revealed in an interview that talks are ongoing among several candidates, including Nobel Peace Prize winner Denis Mukwege. There have been no large-scale independent polls, making it difficult to gauge public opinion.
Zimbabwe is using the proceeds from platinum exports to settle a $400 million loan from the African Export-Import Bank as the indebted southern African nation turns to its mineral wealth to secure lines of credit. Zimbabwe’s reliance on its resources underscores the difficulty it faces in getting money from international financiers. It’s saddled with $18 billion of debt and remains ineligible for funding from multilateral lenders including the World Bank, the International Monetary Fund and the African Development Bank.
The UK has struck the “strongest possible agreement” on immigration with Rwanda, Rishi Sunak’s spokesman said as the prime minister seeks to force his controversial plan to fly asylum seekers to the East African nation past British courts. Home Secretary James Cleverly landed in Kigali on Tuesday to sign a treaty with President Paul Kagame’s administration. The UK’s Sunday Times reported that the government will pay Rwanda at least another £15 million to secure the immigration deal, on top of £140 million already given.
bring electricity from off-grid solar projects to 72 million people in some of Africa’s poorest countries. The Hardest-to-Reach Initiative will cover 16 countries ranging from Congo to Somalia across a continent where about half of the population have no access to electricity. Its backed by the South Korean-based Green Climate Fund.
>span class="ArticleImage_imageOverlay-7Sc0rHbcwnc-" tabindex="0">South Africa’s dysfunctional logistics system is emerging as the biggest threat to a country that was already grappling with crippling power cuts because of a failing electricity utility. Read this QuickTake explainer on why Transnet has become a drag on the continent’s most industrialized economy and forced mining companies to find other ways to export commodities. The impact is becoming clearer, with gross domestic product shrinking more than expected in the third quarter.
Two of the year’s hottest Nigerian stocks are companies that reinvented themselves as financial technology providers, targeting demand among the vast ranks of consumers without bank accounts. Chams has soared more than 800% to be the top performer on Nigeria’s market after securing fintech licenses in 2022, while Computer Warehouse Group has rallied almost sevenfold. The surge underscores opportunities for the sector in a country with one of the lowest bank branch densities.
Thank you for your responses to our weekly Next Africa Quiz and congratulations to Sammy Kibet who was the first to name Seychelles as the nation to complain that it’s missing out on concessional funding needed to deal with the fallout from climate change because it is considered too wealthy.
Africa’s biggest banks booked windfall profits as regional currencies tumbled this year, but some gains are being eaten up by higher debt provisions and their 2024 outlook appears mixed. While sharp slides in units like the naira and Kenyan shilling reflect wider economic weakness, the largest lenders look well capitalized and should be an important source of strength for the region grappling with high interest rates and a cost-of-living crisis.
