Local debt markets could shield Africa as funding sources shrink, Moody's says
Credit ratings for some countries on the continent have begun climbing after a rough cycle of cuts and outlook downgrades spurred by the stress the Covid-19 pandemic put on sovereign balance sheets.
However, as trade wars and geopolitical risks roil global markets, the countries that are faring the best, such as Benin and Ivory Coast, are the ones that have beefed up local funding, Diron said.
'Domestic funding, I think that has to bridge that gap,' she told Reuters in an interview on the sidelines of an event by the Mo Ibrahim Foundation in Marrakesh, Morocco.
Diron said deep and liquid domestic debt markets had in part shielded SA's rating, and borrowing costs, from the turmoil of US President Donald Trump's adversarial approach to President Cyril Ramaphosa's government.
Using revenue efficiently, lowering exposure to foreign currency debt and lengthening maturities were also key factors supporting African countries' credit ratings and market access, she said.
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IOL News
32 minutes ago
- IOL News
Navigating Tensions: AFRICOM's Role in SADC's Security Landscape
ZAMBIAN President Hakainde Hichilema, Angola President João Lourenço , US President Joe Biden, Democratic Republic of Congo (DRC) President Felix Tshisekedi, and Tanzania Vice-President Philip Isdor Mpango at the Lobito Corridor Trans-Africa Summit held in Benguela, Angola on December 4, 2024. Image: AFP Dr. Sizo Nkala The US Africa Command (AFRICOM) – the combatant command responsible for carrying out the US Department of Defence's military operations, exercises, and security cooperation in Africa – could sow divisions within the southern African region. The leadership of the AFRICOM, including the Deputy Commander Lieutenant General John Brennan and Ambassador Robert Scott, made what seemed to be successful visits to Angola and Namibia at the end of July. In both countries, the parties discussed mutual security interests, including promoting stability in southern Africa, tackling wildlife and timber trafficking, drug cartels and terrorism, which are a threat to regional peace and stability. The visits followed the Obangame Joint Military Exercise conducted in Cape Verde in May, in which both Namibia and Angola took part alongside 22 other African countries and the US. In Angola, it coincided with the Joint Combined Exchange Training (JCET) where Angolan and US troops were conducting live fire exercises aimed at improving combat readiness and the interoperability of allied forces. With the US-funded Lobito Corridor, a railway track which will connect Angola's Lobito port to more inland countries like Zambia and the DRC, Angola is central to US economic interests in southern Africa. The AFRICOM leaders emphasised that they seek to work with African countries in a manner that enhances their sovereignty and autonomy rather than their dependency. This dovetails with AFRICOM's doctrine of 'African Solutions to African Problems'. With its deeper knowledge and experience in maritime security, counterinsurgency activities, and peacekeeping operations, AFRICOM could be a valuable partner for states in the region dealing with violent conflicts in the Democratic Republic of Congo (DRC) and Mozambique's Cabo Delgado province. In flaunting its credentials and values, the AFRICOM leaders could not miss an opportunity to throw shade at US geopolitical rivals – China and Russia – whom it accused of treating African militaries as their training aides. However, the mood was decidedly different for AFRICOM's relations with another southern African country. Early in August, the US Department of Defence decided to cancel the Shared Accord military exercises between the US and South Africa. This was because of a disagreement over allowing armed American soldiers to guard the US aircraft. It is reported that the South African National Defence Force (SANDF) preferred that its personnel protect the aircraft while the DoD insisted on having its soldiers take that responsibility. The DoD argued that the Status of Forces Agreement signed between Pretoria and Washington in 1999 allowed US security personnel to guard US assets. This marks yet another negative turn in the bilateral relations between the two countries, which have deteriorated rapidly since the beginning of Donald Trump's second presidency in January. The latest cancellation is the third time the US has withdrawn from planned security cooperation activities with South Africa since last year. In 2024, the US pulled out of the African Aerospace and Defence Expo and also decided against docking a US Navy ship in Cape Town. This was partly because of South Africa's refusal to sign the so-called 'Article 98', which enjoins countries to sign an agreement to protect the US security personnel from arrest by the International Criminal Court (ICC) when on their territory. The US is not a member of the ICC. South Africa and AFRICOM have always had a frosty relationship since its establishment in 2007. The former vociferously campaigned against the establishment of an American military base in Africa. Pretoria was of the view that AFRICOM was an imperialistic venture, and a keen association with it would be seen as being a lapdog of American imperialism in Africa. This stance was also in part an effort by the African National Congress (ANC) to differentiate itself from the Apartheid government, which had no issues protecting the interests of the US in the region - sometimes through destabilising neighbouring countries. AFRICOM's less-than-cordial relations with South Africa will undermine the effectiveness of its security cooperation with the region. South Africa is a regional powerhouse with the strongest and most well-equipped military in southern Africa. The country is an active participant in peacekeeping operations in southern Africa, having recently contributed the bulk of the troops in the Southern African Development Community (SADC)'s peacekeeping missions in Mozambique and the DRC. Without Pretoria's cooperation, AFRICOM's ventures will have a limited impact. The SADC region is an indivisible security considering the litany of transnational security threats it faces. As such, any engagement with a major external actor like AFRICOM would be more effective if done on a regional rather than a national and bilateral level. Just last year, on the sidelines of the St. Petersburg International Economic Forum, the Zimbabwean President Emmerson Mnangagwa expressed his worries to the Russian President Vladimir Putin over AFRICOM's close cooperation with AFRICOM. He asked that Russia intensify security cooperation with his country as a counterweight to the West's projection of power in neighbouring countries. If the regional leaders do not address this, the region could soon be divided into two security spheres of influence – one controlled by the US and the other controlled by China and Russia. * Dr. Sizo Nkala is a Research Fellow at the University of Johannesburg's Centre for Africa-China Studies. ** The views expressed do not necessarily reflect the views of IOL, Independent Media or The African.
The Star
7 hours ago
- The Star
Jacob Zuma Morocco visit
In a press statement published on the 6 th of August 2025, DIRCO has registered 'its strong objection and concern regarding circumstances around the recent visit of an eminent South African leader, former South African President Mr Jacob Zuma, who is the Leader of the Umkhonto We Sizwe Party, to Morocco on the 15 th of July 2025'. Whilst recognising and respecting the sovereign right of Morocco to invite individuals and groups, DIRCO stated that 'it strongly protests the use of South African national symbols, in this instance the use of the South African National Flag, in the meeting between Mr Jacob Zuma and the Foreign Minister of the Kingdom of Morocco'. This statement, which has been published three weeks after the visit, uses the excuse of the flag previously mentioned in the ANC press release concerning the visit of the previous Head of State to criticise the presence of the latter in Morocco. Indeed, the hypersensitivity of DIRCO and its unusual and exaggerated reaction raise several questions about the priorities of Foreign Policy in our country, especially during these tough times. Amidst the recent punitive Trump Tariffs, the focus should be to mend the trade relationship to assert the economic diplomacy plan that was adopted by DIRCO, DTIC and the Ministry of Finance. Nonetheless, DIRCO took time among these huge trade problems with the USA that threaten our national interest to publish a press release concerning the visit of the former Head of State. This is not the first trip undertaken by Jacob Zuma as the former head of state outside of South Africa. It is indeed worth mentioning that M. Zuma has been invited this year to the inauguration ceremonies of both newly elected Ghana and Gabon presidents in his capacity as an ex-President of South Africa. During those two trips, M. Zuma received a warm welcome from the authorities of those two African countries without sparking any reaction from DIRCO. During his trip to Morocco, M. Jacob Zuma, who voiced his party's support for the autonomy proposal over the Sahara, has been very clear in his address, stating that it was his party's view and not of the State, thus closing the debate about any confusion regarding the South African Government's position concerning the conflict. This position expressed by MK was not a surprise at all. The South African Party published, nearly two months ago, a detailed document named 'A strategic Partnership for African Unity, Economic Emancipation and Territorial Integrity: Morocco', in which it detailed its stance concerning Morocco and the Western Sahara conflict In this document, Umkhonto WeSizwe stated that: ' Commitment to sovereignty: Morocco's efforts to reclaim its full territorial integrity align with the MK Party's commitment to preserving the sovereignty and unity of African states. This resonates more than ever with South Africa as our country battles against internal forces aiming at breaking our country's territorial integrity. Thus, MK party remains steadfast in defending the territorial integrity of South Africa as a sacrosanct principle of its foreign policy'. This statement of MK brought to light the inexistence of a consensus concerning the issue of Western Sahara among the political sphere in South Africa. It is also worth recalling that when the ANC reacted to the position expressed by MK concerning Western Sahara citing 'the right of Self-determination of Western Sahara', the separatist movement 'cape independence' published, on the 20 th July 2025, a tweet saying:' Hypocrisy Alert! ANC pushes for Western Sahara independence while denying Western Cape & other SA groups the same right to self-determination. What's good for one isn't good for all?'. Coming back to the issue of the flag, well-informed cadres among the MK party said that 'The South African flag displayed during Mr. Zuma's visit was done at his express request, as a gesture of honour and respect for his position as a previous Head of State'. Moreover, it is universal practice for national flags to be present in nongovernmental contexts and engagements: sporting competitions, cultural events, civil forums, etc, added the cadres of MK. Thus, the DIRCO statement raises the issue of the use of the national flag by South African citizens, organisations and political parties in General. Expressing concerns over this issue, the spokesperson of MK, M. Nhlamulo Ndhlela, said that 'Mbalula, on his visit in 2023 in Algeria, had a national flag of South Africa in a picture taken with him and the foreign minister of Algeria and DIRCO said nothing. Why now? The ANC and its GNU do not own the South African flag; it belongs to South Africans, and President Zuma is a South African, and a former head of state'. On the details of Zuma's trip to Morocco, IOL was able to confirm that the visit was prepared with the involvement of the South African Embassy in Rabat, which officially asked the Moroccan authorities to grant Mr. Zuma protocol treatment. Under these conditions, some experts contacted by IOL declared that it is 'totally contradictory for the South African authorities to request that Mr. Zuma be treated as a high dignitary, only to criticise the use of the South African flag during his visit'. It is worth noting that all the previous Heads of state in South Africa, when they undertake a trip abroad, are asked to communicate all the details of their trip to the State protocol, who then inform DIRCO to take all the measures to coordinate with the relevant authorities of the country all the aspects of the visit including the protocol. The aspects raised above are just a reflection of the existing deep disagreement of different South African political parties with the ANC's foreign policy, which has sparked a big debate about the national foreign policy of South Africa and the actual existence of a consensus around its priorities. Indeed, the DA, which is a partner of the ANC in the GNU, has undertaken, in March 2025, a trip to the USA, which was officially communicated by the previous DA Spokesperson on International Relations & Cooperation, Mrs Emma Powell, in total contradiction with the official position expressed by the South African Government and DIRCO. It is expected that the MK will not stay silent about this press release from DIRCO. The party will use the platform of the press briefing related to the outcomes of the latest meeting of the national officials of the party, scheduled on Friday, 8 th of August 2025, to address all the issues raised on the press release of DIRCO.
IOL News
12 hours ago
- IOL News
Jacob Zuma Morocco visit
Algerian Minister of Foreign Affairs meeting the ANC SG Fikile Mbalula, while the flag is displayed Image: Supplied In a press statement published on the 6th of August 2025, DIRCO has registered 'its strong objection and concern regarding circumstances around the recent visit of an eminent South African leader, former South African President Mr Jacob Zuma, who is the Leader of the Umkhonto We Sizwe Party, to Morocco on the 15th of July 2025'. Whilst recognising and respecting the sovereign right of Morocco to invite individuals and groups, DIRCO stated that 'it strongly protests the use of South African national symbols, in this instance the use of the South African National Flag, in the meeting between Mr Jacob Zuma and the Foreign Minister of the Kingdom of Morocco'. This statement, which has been published three weeks after the visit, uses the excuse of the flag previously mentioned in the ANC press release concerning the visit of the previous Head of State to criticise the presence of the latter in Morocco. Indeed, the hypersensitivity of DIRCO and its unusual and exaggerated reaction raise several questions about the priorities of Foreign Policy in our country, especially during these tough times. Amidst the recent punitive Trump Tariffs, the focus should be to mend the trade relationship to assert the economic diplomacy plan that was adopted by DIRCO, DTIC and the Ministry of Finance. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Nonetheless, DIRCO took time among these huge trade problems with the USA that threaten our national interest to publish a press release concerning the visit of the former Head of State. This is not the first trip undertaken by Jacob Zuma as the former head of state outside of South Africa. It is indeed worth mentioning that M. Zuma has been invited this year to the inauguration ceremonies of both newly elected Ghana and Gabon presidents in his capacity as an ex-President of South Africa. During those two trips, M. Zuma received a warm welcome from the authorities of those two African countries without sparking any reaction from DIRCO. During his trip to Morocco, M. Jacob Zuma, who voiced his party's support for the autonomy proposal over the Sahara, has been very clear in his address, stating that it was his party's view and not of the State, thus closing the debate about any confusion regarding the South African Government's position concerning the conflict. This position expressed by MK was not a surprise at all. The South African Party published, nearly two months ago, a detailed document named 'A strategic Partnership for African Unity, Economic Emancipation and Territorial Integrity: Morocco', in which it detailed its stance concerning Morocco and the Western Sahara conflict In this document, Umkhonto WeSizwe stated that: 'Commitment to sovereignty: Morocco's efforts to reclaim its full territorial integrity align with the MK Party's commitment to preserving the sovereignty and unity of African states. This resonates more than ever with South Africa as our country battles against internal forces aiming at breaking our country's territorial integrity. Thus, MK party remains steadfast in defending the territorial integrity of South Africa as a sacrosanct principle of its foreign policy'. This statement of MK brought to light the inexistence of a consensus concerning the issue of Western Sahara among the political sphere in South Africa. It is also worth recalling that when the ANC reacted to the position expressed by MK concerning Western Sahara citing 'the right of Self-determination of Western Sahara', the separatist movement 'cape independence' published, on the 20th July 2025, a tweet saying:' Hypocrisy Alert! ANC pushes for Western Sahara independence while denying Western Cape & other SA groups the same right to self-determination. What's good for one isn't good for all?'. Coming back to the issue of the flag, well-informed cadres among the MK party said that 'The South African flag displayed during Mr. Zuma's visit was done at his express request, as a gesture of honour and respect for his position as a previous Head of State'. Moreover, it is universal practice for national flags to be present in nongovernmental contexts and engagements: sporting competitions, cultural events, civil forums, etc, added the cadres of MK. Thus, the DIRCO statement raises the issue of the use of the national flag by South African citizens, organisations and political parties in General. Expressing concerns over this issue, the spokesperson of MK, M. Nhlamulo Ndhlela, said that 'Mbalula, on his visit in 2023 in Algeria, had a national flag of South Africa in a picture taken with him and the foreign minister of Algeria and DIRCO said nothing. Why now? The ANC and its GNU do not own the South African flag; it belongs to South Africans, and President Zuma is a South African, and a former head of state'. On the details of Zuma's trip to Morocco, IOL was able to confirm that the visit was prepared with the involvement of the South African Embassy in Rabat, which officially asked the Moroccan authorities to grant Mr. Zuma protocol treatment. Under these conditions, some experts contacted by IOL declared that it is 'totally contradictory for the South African authorities to request that Mr. Zuma be treated as a high dignitary, only to criticise the use of the South African flag during his visit'. It is worth noting that all the previous Heads of state in South Africa, when they undertake a trip abroad, are asked to communicate all the details of their trip to the State protocol, who then inform DIRCO to take all the measures to coordinate with the relevant authorities of the country all the aspects of the visit including the protocol. The aspects raised above are just a reflection of the existing deep disagreement of different South African political parties with the ANC's foreign policy, which has sparked a big debate about the national foreign policy of South Africa and the actual existence of a consensus around its priorities. Indeed, the DA, which is a partner of the ANC in the GNU, has undertaken, in March 2025, a trip to the USA, which was officially communicated by the previous DA Spokesperson on International Relations & Cooperation, Mrs Emma Powell, in total contradiction with the official position expressed by the South African Government and DIRCO.
