Africa

The effective interest rate on Kenya’s newly issued seven-year eurobond. Kenya’s return to the international bond market is expected to alleviate pressure on domestic debt interest rates, though analysts say the high interest rate could lay the groundwork for a future crisis. The bond, worth $1.5 billion, is expected to mature in 2031. The National Treasury said the proceeds of the bond, which will be repaid in three equal installments between 2029 and 2031, will help finance the repayment of $2 billion in debt which is set to mature in June. “Kenya received strong demand with a high quality order book exceeding $6 billion, allowing for tighter pricing and an increased issuance compared to initial guidance,” the National Treasury noted in a statement.

Nigerian nurses reject rules attacking job migration

THE NEWS

LAGOS — Nigerian nurses are protesting new rules to prevent them working abroad for two years after completing their training — a rule imposed by authorities trying to stop the exodus of medical talent being mirrored across the continent.

Hundreds of nurses picketed the health regulator’s offices in Abuja and Lagos in recent days, demanding the withdrawal of the policy announced last week and due to take effect in March.

Governments across Africa are trying to tackle the problem of losing nurses and doctors who leave for jobs overseas that may pay as much as 50 times more. Several African countries — including Zimbabwe, Zambia and Rwanda — are on a list of 53 poorer nations whose loss of medical staff in this way has made their health systems vulnerable with fewer than the global median of 49 doctors, nurses and midwives per 10,000 people.

It takes at least three years to complete nursing training in Nigeria. Under the new rules, newly qualified nurses must work in Nigeria for two years before they can apply for their licenses to be verified for use abroad.

The verification process, which typically lasted two weeks, will now take a minimum of six months, the nursing and midwifery regulatory council said on Feb. 7. It also requires a character reference letter from employers, which nurses say could unduly empower superiors.

KNOW MORE

Entry level nurses in the U.K.’s National Health Service (NHS) start with a £28,407 ($35,660) annual salary. By contrast, a well-paying nursing job in Nigeria may offer 150,000 naira ($100) monthly but even that is typically a scarce government job or in a specialized private facility. It is more common to find offers around Nigeria’s minimum wage of 30,000 naira, nurses say.

Nigeria had 1.6 nurses and midwives per thousand people three years ago, according to the World Bank. Meanwhile, data from Britain’s nursing council regulatory body shows a surge in the number of Nigeria-educated nurses in the U.K. over recent years. They nearly quadrupled to 10,639 between March 2018 and last year, the body’s data shows. Only India and the Philippines had more foreign educated nurses in the U.K. within the period.

ALEXANDER’S VIEW

The nurses’ revolt is lively evidence of deep anxiety among young Nigerian workers trying to figure out a future away from the soaring hardship in the country. Doubtful of the government’s intention to solve their problems, they are vigorously defending the freedom to ‘japa’ — literally to flee — as being as fundamental as the right to life.

Rising inflation and an accelerated depreciation of the naira currency have sparked a cost of living crisis in the last 12 months. For some nurses, these conditions which have persisted for years prompt a search for options elsewhere.

Inem Etuk, 28, started working as a nurse in Nigeria in 2018 on a 25,000 naira a month salary. She left for Canada two years ago even at the steep cost of 35,000 Canadian dollars ($26,000) for university fees and travel costs. “I just felt nursing in Nigeria wasn’t progressing,” Etuk, who said she was laughed at for wanting to be a forensic nurse in Nigeria, told me.

She hopes this week’s protests will amplify a need for reform, which should include plugging loopholes that allow the prevalence of unqualified nurses who work informally, driving down pay at hospitals.

Ghanaian President Nana Akufo-Addo reshuffled his cabinet on Wednesday, dismissing finance minister Ken Ofori-Atta amid a severe economic crisis characterized by high inflation and soaring living costs. The most prominent minister replaced in the shuffle, Ofori-Atta had been overseeing Ghana’s debt restructuring efforts after the country defaulted on most of its external debt in December 2022. Inflation in Ghana has shot up in recent years, amplified by factors including the pandemic and war in Ukraine. He will be replaced by Mohammed Amin Adam, the minister of state for finance, but will remain a senior economic advisor to the president and special envoy on international investments and capital markets, according to reports. His dismissal, long sought by the opposition and even ruling party MPs, comes ahead of Ghana’s December elections which are expected to hinge on the country’s economic woes.

🇰🇪 Kenyan-based Swedish electric vehicle startup Roam has raised $24 million in a Series A funding round to scale the production of locally designed and assembled electric motorcycles and buses. Among the investors were Africa-focused climate tech VC fund Equator, At One Ventures, TES Ventures, and Renew Capital. The funding round included a debt commitment of up to $10 million from the U.S. International Development Finance Corporation. The fundraising comes just two months after the firm secured $7.5 million in capital, marking the largest investment ever for an electric mobility company in sub-Saharan Africa.

🇳🇬 Nigeria’s Dangote Refinery has issued tenders to sell two fuel cargoes for export, the first from the newly commissioned refinery, Reuters reported on Wednesday. Sources told the outlet the first cargo — 65,000 metric tons of low-sulfur straight run fuel oil — was awarded to commodity multinational Trafigura and is due to load at the end of February. Dangote and Trafigura did not immediately comment. Nigeria, which traditionally relies on fuel imports, is set to be a net exporter of fuel to other West African nations thanks to the $20 billion refinery — potentially marking a significant shift in the industry.

🌍 Africa’s clean energy ambitions are being held back by the International Monetary Fund’s strict debt policies, according to the chief executive of French oil giant TotalEnergies. Patrick Pouyanne said on Wednesday that stringent IMF debt rules set for African governments left little leeway to support renewable energy projects on the continent. African countries collectively need to raise around $2.8 trillion by 2030 to meet climate action goals. Private investors struggle to secure funding because of the perceived risks associated with the continent and green projects more generally.

What to expect from the AU summit

→ What’s happening? The 37th African Union (AU) heads of state Summit will take place in Ethiopia’s capital, Addis Ababa, on Feb. 17th and 18th.

→ What’s on the agenda? The AU has promised to discuss and make “far reaching decisions on the security situation on the continent.” Also featured on the agenda are institutional reforms at the AU, Africa joining the G20, climate change, and education. This year’s theme is “Educate and skill Africa for the 21st century.”

→ Who’s speaking? Rwanda President Paul Kagame is scheduled to deliver a report on reforming the AU and Kenya’s President William Ruto will speak on Africa’s response to climate change. Egypt’s Abdi Fattah El Sisi, Sierra Leone’s Julius Maada Bio and South Africa’s Cyril Ramaphosa are also among those expected to address delegates.

→ What about West Africa’s upheavals? Nigerian President Bola Tinubu is expected to lead a high-level Ecowas meeting on the sidelines of the summit following the recent announcement by Mali, Burkina Faso and Niger that they plan to leave the West African bloc, and amid protests in Senegal over the postponement of elections.

→ Is a leadership change coming? With the term of African Union Commission President Moussa Faki expiring next year, countries are set to begin lobbying for their preferred candidates to succeed him. The agenda at this year’s summit includes the appointment of a panel to oversee the pre-selection of candidates, with Faki’s replacement to be named at the next summit. Veteran Kenyan opposition leader Raila Odinga, who lost the 2022 presidential election, today officially declared his interest in the job. He reportedly has the backing of Kenya’s government.

— Martin Siele

Kenyan authorities are searching for one of the country’s most famous lions amid growing public outcry. The lion, called Olobor, has been missing since mid-January. Olobor is a member of the Black Lion pride which resides in the world-famous Maasai Mara reserve, a site popular with tourists for safaris. Some conservationists have alleged that the missing male lion was killed by cattle herders, but the Kenya Wildlife Service (KWS) has called for calm until the situation surrounding the lion’s disappearance becomes clearer. The KWS said it is working with the Mara Predator project, a lion monitoring conservation initiative, to establish what happened to Olobor. Kenya is home to around 2,589 lions, according to the country’s 2021 wildlife census.

• A Saudi banking dynasty has bought nearly half the stock of a U.S. children’s clothing store teetering on the edge of bankruptcy.
• China is allegedly using fake local news sites to push out propaganda.
• The U.S. Senate approves more funding to Ukraine and Israel.

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— Yinka, Alexis, Alexander Onukwue, Martin Siele, and Muchira Gachenge