Africa

1. Senegal’s Eurobonds
2. Electronic litter
3. Ethiopia’s EV push
4. Extortion racket?
5. Unity coalition talks
6. Taxing times

Also, why African international football fans will have to exercise patience.

Hello! Welcome to Semafor Africa, where we promise this column isn’t being written by AI. There’s a heady mix of excitement and uncertainty around the possibilities of artificial intelligence, especially in the last few years since we’ve all become much more aware of the capabilities of consumer-targeted large language models such as ChatGPT. But of course there’s much more to AI than LLMs, and it has been integrated into many of the business applications and tools we use every day.

On the face of it, the opportunity for African economies can seem boundless as a way to get round many capacity building challenges, from skills training to improving healthcare delivery and agriculture production outcomes. But of course this requires investment in the infrastructure and technology that underpins AI platforms. There will also need to be some venture backing for the entrepreneurs trying to use AI to address Africa’s particular challenges.

There is still plenty to be concerned about, such as challenges around AI safety discussions and the role of regulators in trying to ensure safety for citizens without dampening the opportunities ahead. But these are challenges everywhere, from Silicon Valley to China. While it might seem likely that more technologically advanced economies would have an advantage, there might be a rare chance for African policymakers and the African Union to strike the right balance because there are fewer major entrenched AI players on the continent. Getting it right could be a positive version of the game-changing impact we often hear about but rarely see.

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Senegal’s first Eurobond under Faye presidency

The amount Senegal raised on the Eurobond market this week. It joins Côte d’Ivoire, Benin, and Kenya on the list of African countries that borrowed from international capital markets this year. Senegal raised the amount in two tranches, offering a 7.75% coupon rate with 2031 as the maturity date, with JP Morgan as the lead manager on the sale, Bloomberg said. It marks Senegal’s first major Eurobond issue since President Bassirou Diomaye Faye took office in April. Senegal is expected to begin oil and gas production later this year, a factor that could boost real gross domestic product growth to an average of 9.8% between 2024 and 2025, according to the African Development Bank.

Tackling an e-waste scourge

Global levels of e-waste have surged in line with the increased use of electronic devices. The world generated 62 billion kilograms of e-waste in 2022, up from 34 billion kilograms in 2010, according to the Global E-waste Monitor. Only 22% of that e-waste was documented as properly collected and recycled. The surge in e-waste has also been seen in African countries, which generated 3.5 billion kilograms in 2022, just 0.7% of which was formally collected and recycled. Most of the top generators of e-waste roughly match the size of the economies (see chart). But on a per capita basis, countries with smaller populations — like Libya, Mauritius, and Seychelles — lead the list. South Africa is fifth on that list producing 9 kilograms of e-waste per capita. The report notes there has been an improvement in e-waste regulation across the continent since 2010, but only 11 countries had developed national e-waste policy, legislation or regulation by the end of 2022.

Ethiopia’s transition to green mobility encounters headwinds

ADDIS ABABA — Ethiopia inaugurated its biggest electric vehicle factory in Debre Berhan in the Amhara region on Tuesday, as part of an ambitious strategy to turn the country into a leading player in green mobility on the continent.

The country’s 10-year Perspective Development Plan calls on the government to import 4,800 electric buses and 148,000 electric cars. Last year, Ethiopia banned the import of non-electric cars and offered a new tax exemption for the import of electric cars as part of a green legacy project initiated by Prime Minister Abiy Ahmed.

But the development of the nation’s biggest electric vehicle factory comes as the government faces economic challenges. Limited financial capacity has delayed the completion of government priority projects scattered around the country. This includes the $5 billion Grand Renaissance Dam, which would help upgrade the electricity network needed to power a rising influx of EVs.

With the Horn of Africa nation facing a large economic deficit, skeptics are questioning if Ethiopia has the capability or the resources to execute such an ambitious project. Addis Ababa is displacing citizens and gutting neighborhoods to pave the way for skyscrapers and EV charging stations, part of an effort to make the capital “The East African Dubai.”

US lawmakers say Nigeria is detaining American to extort Binance

US lawmakers have accused Nigeria of wrongfully detaining an American staff member of cryptocurrency exchange Binance in an attempt to extort money. They urged President Joe Biden and the State Department to quickly intervene in the case.

Tigran Gambaryan, 40, and a company colleague were arrested by Nigerian security authorities in February while on an official visit to the country. Gambaryan is facing charges of tax evasion, money laundering and engaging in unlicensed financial activities, in a trial that began in May. But his representatives and Binance have demanded his release, stating that he has no decision-making power in the company, and should not be held to answer to any alleged company offenses.

“Mr. Gambaryan’s health and well-being are in danger, and we fear for his life,” read a letter dated June 4 and signed by 16 members of the US House Foreign Affairs Committee.

“It is crucial to emphasize that the charges against Mr. Gambaryan are baseless and constitute a coercion tactic by the Nigerian government to extort his employer, Binance,” stated the letter, which also said he had been subjected to harsh treatment and called for swift action to save his life.

Nigeria’s government, responding to the accusations, said it is following due process. “Prosecutors are confident of their case, based on the facts and evidence gathered. Binance will have every opportunity to defend itself in court against these severe charges of financial crimes,” Information Minister Mohammed Idris said on Wednesday.

Nigerian authorities this year renewed their crackdown on crypto, arguing that trades on platforms like Binance helped weaken the local naira currency.

— Alexander Onukwue in Lagos

South Africa’s ANC considers a national unity coalition

A coalition government that includes most of South Africa’s main parties has emerged as the most popular option for the African National Congress as it considers its options after losing the parliamentary majority it held for 30 years.

A government of “national unity” has been identified as the most suitable option because “this is what the people of South Africa said to us,” ANC spokeswoman Mahlengi Bhengu-Motsiri told journalists on Wednesday. She said the party had been in talks with five parties from across the political spectrum, including the center-right Democratic alliance and the populist Economic Freedom Fighters, which espouses Marxist ideologies.

The ANC will have 159 of parliament’s 400 seats following last week’s general election, where it won 40% of the vote. The DA will have 87 seats, and the EFF is set to have 39.

The ANC’s most senior body, the National Executive Committee, was set to meet on Thursday to consider its options. The meeting is expected to be attended by 110 of the party’s most senior members, including President Cyril Ramaphosa.

Under the constitution, the country’s parliament must meet on June 17 to elect a president.

— Sam Mkokeli in Johannesburg

Bolt, Uber threaten Kenya exit over new tax

Ride-hailing companies Uber and Bolt have warned that proposed new taxes could force them out of the Kenyan market. The country’s finance bill, tabled in May, proposes the introduction of a 6% Significant Economic Presence Tax aimed at multinational tech firms offering their services through digital marketplaces. It would replace the current 1.5% Digital Service Tax.

Appearing separately before a parliamentary committee on Wednesday, the two companies said the new tax, on top of existing taxes, would mean the companies would suffer losses. Bolt Public Policy Manager George Abasy said the tax would “likely lead to the collapse of the industry due to losses or low margins.”

The bill, which is at the public participation stage before going to a parliamentary vote, has faced opposition from various business and consumer groups, including the Kenya Association of Manufacturers, which highlighted the potential impact of tax hikes on jobs and industries.

— Martin K.N Siele in Nairobi

Geopolitics

🇷🇺 🇧🇫 Russia’s Foreign Minister Sergey Lavrov on Wednesday pledged his country’s support to Burkina Faso in the fight against extremists affiliated with al-Qaeda and Islamic State. He was on a regional tour which included stops in Chad, Guinea, and the Republic of Congo.

🇨🇩 🇺🇸 The US embassy in DR Congo on Monday said the country’s authorities had yet to share details or provide access to American citizens who were arrested following an attempted coup against President Felix Tshisekedi’s government last month.

🇺🇬 🇰🇷 South Korea’s EXIM Bank will lend Uganda $500 million “to finance infrastructure projects,” the east African country’s finance ministry said. The agreement was signed at the Korea-Africa summit.

🇰🇪 The American Chamber of Commerce, Kenya, asked the national assembly to cut motor vehicle tax from 2.5% to 1% of the value of the vehicle, and exempt agricultural and commercial vehicles from the tax.

Governance

🇰🇪 Kenya’s central bank on Wednesday held its benchmark rate at 13% for the second time in a row, despite citing positive progress in the cost of living and exchange rate in the Kenyan market.

Energy

🌍 🇺🇬 Uganda National Oil Company on Tuesday signed sales and purchase agreements with fuel dealers in contracts involving over 80 oil marketers to help address the country’s fuel supply crisis.

Deals

🌍 German vaccine maker BioNTech has secured up to $145 million from a global coalition against infectious diseases to help build a production network in Africa for shots based on mRNA technology.

🇧🇼 Botswana’s president said the government may raise its stake in global diamond miner De Beers, following plans by its parent company Anglo American to sell or divest the diamond business. Botswana owns a 15% stake in De Beers.

International Finance

🇿🇲 Zambia’s government has asked the International Monetary Fund to increase its loan program to $1.7 billion from $1.3 billion, to help it respond to a severe drought.

Tech

🇿🇦 On-demand taxi service Bolt permanently removed 6,000 drivers from its app in South Africa over alleged misconduct related to safety.

It’s a delay that will frustrate the continent’s most ardent football fans. The next edition of the Africa Cup of Nations (AFCON) has been pushed back by six months to the start of 2026. The timing of Africa’s biggest sporting competition clashed with the expanded 32-club FIFA Club World Cup next June in the United States, where five African clubs will be participating. The postponement will slow down “football diplomacy” efforts by host country Morocco, which have seen it tap into the sport to build stronger relationships with African countries. The North African nation is set to host several African national teams who lack CAF-approved stadiums in upcoming World Cup qualifier matches. The delay offers CAF and local event organizers more time to seal more of the deals that saw this year’s AFCON in Cote d’Ivoire break global viewership records.

• Why carbon removal still won’t save the planet.
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— Yinka, Alexis, Alexander Onukwue, Martin Siele, Muchira Gachenge, and Jenna Moon