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Yahoo
04-07-2025
- Politics
- Yahoo
Kenyan leader to build huge church at presidential office
Kenyan President William Ruto says he is building a church at the presidential residence in Nairobi that he will pay for himself - and says he has nothing to apologise for. "I am not going to ask anyone for an apology for building a church. The devil might be angry and can do what he wants," President Ruto said on Friday. That statement alone has angered Kenyans already frustrated with his style of leadership and what they regard as the entanglement of the state and the church. The BBC has asked the government for comment. It is not clear who Ruto was referring to as "the devil" in his comments at state house, but he says nothing will stop the project from going ahead. On Friday one of Kenya's leading newspapers - the Daily Nation - published architectural designs showing a large building with stained glass windows and capacity for 8,000 people. The paper questioned whether the project was in keeping with Kenya's secular constitution. There has also been criticism of the cost, estimated at $9m (£6.5bn) at a when time many Kenyans are struggling with the rising cost of living. Ruto said he would pay for the church out of his own pocket, however that raises the question of whether he has the right to build such a large structure on state-owned property. In an open letter, one MP said Kenya was not a Christian state andbelonged to people of all religions. The diverse East African nation is also home to many of followers of Islam, Hinduism and traditional African religions - as well as some agnostics and atheists. There is no mosque or temple at the presidency. "I did not start building this church when I entered the State House. I found a church but one made out of iron sheets. Does that look befitting for the State House?" a defiant Ruto told politicians at a meeting he hosted on Friday. El Chapo & Deputy Jesus - why Kenya's president has so many nicknames Why Kenya's evangelical president has fallen out with churches How African popes changed Christianity - and gave us Valentine's Day Ghana to investigate ex-president's controversial $400m cathedral project Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Focus on Africa This Is Africa
Zawya
26-06-2025
- Business
- Zawya
South Africa: A fairer capital cost for emerging markets will be a boon for global economies
South Africa's 2025 presidency of the G20 comes at a moment of global instability. Volatility in financial markets, escalating geopolitical tensions, and chal- lenges to multilateralism have heightened the stakes for international cooperation. For South Africa, the first African nation to lead the G20, the challenge is immense – but so is the opportunity. President Cyril Ramaphosa has pledged to use the G20 to elevate the development priorities of Africa and all lower middle income countries. Central to these pri- orities is the urgent need to address the prohibitively high cost of capital. This is not merely a technical issue; it is a structural challenge that limits the ability of governments and businesses to invest in people, build resilience to cli- mate change and compete in the global economy. By tackling this issue head-on, South Africa has the potential to redefine the global financial architecture in ways that benefit not only Africa but the entire developing world. A crisis rooted in inequity In the decade leading up to 2022, Africa's debt stocks more than doubled, rising from $283bn to $655bn. Private creditors and multilateral institutions accounted for the largest increases in 2023, accounting for 38% and 35% of Africa's debt stocks respectively. In the same year China ac- counted for 12.4%. This debt accumulation was a logical response to historically low interest rates and the continent's massive infrastructure needs. For many African nations, borrow- ing was not reckless but necessary. However, the Covid-19 pandemic changed everything. As revenues from tourism and remittances collapsed, and government expenditures rose to man- age the health crisis, debt sustainability deteriorated. Meanwhile inflation, fuelled by excessive stimulus and global shocks such as the war in Ukraine, has further strained public finances. Central banks' rapid interest rate hikes – intended to stabilise inflation – have increased the cost of dollar-denominated debt, driving several nations to the brink of default. Today, 23 out of 40 African nations as- sessed by the World Bank are at high risk of debt distress or are already in distress. Half of the $102bn in debt service paid by African countries in 2024 went to private creditors – and this debt has become ex- pensive. African countries pay an average premium of 500% on private loans com- pared to the rates offered by institutions like the World Bank. In 2021 for $1bn in loans, Africa's lower middle income countries paid an average of 5.79% to private creditors and 1.16% to the World Bank, while upper middle income countries paid 5.92% to private creditors and 0.5% to the World Bank. This disparity has devastating consequences. Between 2016 and 2021, the excess inter- est costs associated with these premiums amounted to $56bn – funds that could have transformed health systems, im- proved infrastructure, or enhanced edu- cational opportunities. Global implications The high cost of capital in Africa is not just an African problem. It reflects structural challenges in global finance that limit the ability of developing countries to partici- pate fully in the global economy. For example, African leaders have long argued that African countries face unfavourable credit ratings from agencies like Moody's, S&P Global and Fitch – ratings that fail to accurately reflect the region's economic potential or the resilience of its governments. While the agen- cies are making their methodology more transparent, more is needed. Prudential regulations introduced to protect the banking system after the 2008 financial crisis – embodied in the Basel III framework – play a role in inhibiting private investment in emerging markets by increas- ing the requirements on investors' capital liquidity ratios, despite the fact that these investments pose no structural risk to the banking system. And finally, a paucity of data and do- mestic regulations can increase these costs. By bringing together these disparate agendas, the G20 can lay out a roadmap for addressing these challenges across the various regulatory and market-based agendas that need reform. South Africa's G20 leadership matters As the premier forum for international economic cooperation, the G20 is unique- ly positioned to address the structural factors driving the high cost of capital. Representing 85% of global GDP, 75% of international trade, and 64% of the world's population, the G20 wields significant influence over global financial norms and practices. President Ramaphosa has already out- lined an ambitious agenda, including pro- posing the establishment of a Cost of Capi- tal Commission. This would bring together experts from across the public and private sectors to address the root causes of high borrowing costs for developing countries. It would examine credit rating methodolo- gies, prudential regulations, and the data gaps that exacerbate risk perceptions. This proposal builds on successful G20 finance initiatives, such as the Debt Ser- vice Suspension Initiative (DSSI) launched during the pandemic and an Independent Expert Group (IEG) that was commissioned by the Indian G20 presidency to address reform of the multilateral development banks. The Cost of Capital Commission could provide the technical expertise and political momentum needed to advance these solutions. Building coalitions for change South Africa is not alone in recognising the need for reform. Key G20 members, including Brazil, India and Indonesia, have emphasised similar priorities during their presidencies. The African Union, which now holds a permanent seat at the G20 table, also provides a critical platform for advancing African interests. Moreover, informal coalitions such as the Bridgetown Initiative and the Paris Pact for People and Planet have already laid the groundwork for multilateral coopera- tion on financial reform. By aligning its G20 agenda with these initiatives, South Africa can build a broad- based coalition of support, bridging divides between traditional powers like the G7 and emerging blocs such as BRICS. This collaborative approach will be es-sential for managing the geopolitical ten- sions that often complicate G20 negotia- tions. At the same time, the legitimacy of the G20 framework – rooted in its diverse membership and economic clout – pro- vides a powerful mandate for action. A global imperative Addressing the high cost of capital is not just an African priority; it is a global im- perative. Emerging economies face an estimated $2.3trn to $2.5trn in annual financing needs to meet climate goals and achieve sustainable development by 2030. Without access to affordable capital, these goals will remain out of reach, ex- acerbating inequalities and undermining global stability. For advanced economies, the stakes are equally high. The economic health of emerging markets directly affects global trade, investment, and financial stability. By addressing the cost of capital, the G20 can unlock new opportunities for growth and innovation, benefiting both devel- oped and developing nations. Seizing the moment South Africa's G20 presidency is a chance to turn the tide on one of the most pressing challenges of our time. By championing the estab- lishment of a Cost of Capital Com- mission and building coalitions for change, South Africa can help create a fairer, more inclusive global finan- cial system. This is not just an opportunity for Africa – it is an opportunity for the world. By addressing the structural inequities in global finance, the G20 can lay the foundation for a more resilient, equitable, and sustainable global economy. As the first African nation to lead the G20, South Africa has the moral authority and political leverage to push this agenda forward. The stakes are high, but so is the potential for transformative change. Now is the time to act. n David McNair (above left) is executive di- rector at the ONE Campaign, a member of the European Council on Foreign Relations, and author of 'Why Europe Needs Africa,'published by the Carnegie Endowment for International Peace. Vera Songwe (above right) is a non-resident senior fellow in the Africa Growth Initiative at the Brookings Institution. She is Chair of the Board of the Liquidity and Sustainability Facility and sits on South Africa's Presidential Economic Advisory Council (PEAC). The G20 is uniquely positioned to address the structural factors driving the high cost of capital. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
Coin Geek
06-06-2025
- Business
- Coin Geek
Ethiopia pushes for domestic AI; S. Africa clears path for Starlink
Getting your Trinity Audio player ready... Ethiopian Prime Minister Abiy Ahmed has called on African nations to develop homegrown artificial intelligence (AI) to propel the region's development. In his keynote address at the Ethiopian Technology Expo, Ahmed stated that Africa must shape its own technological destiny with AI after decades of adhering to Western standards. 'Africa must not be a passive recipient of AI tools developed elsewhere. We must become innovators and owners of our future, ensuring that no one is left behind in this transformation,' he stated. Ahmed is the latest to call for local AI solutions in Africa, a region whose needs are rarely addressed by Western technology. AI could exacerbate the divide even further; a United Nations report last month revealed that over 120 countries, mostly in the global south, have been left out of the global AI development, which could widen economic inequalities. 'With a clear strategic vision and bold investment, Africa can guide the development of AI on its own terms—anchored in ethical frameworks, inclusion, and sustainability,' Ahmed stated. He added that AI could usher in a new era 'that holds the promise of inclusive prosperity for our continent, driven by homegrown innovations in AI.' Africans must not rely on foreign solutions, which rarely account for the region's nuanced challenges and its diversity. Africa's AI development has been limited by poor infrastructure. A separate UN report revealed that only 5% of the region's AI developers have access to the computing power they would require to build AI applications. Starlink setting foot in South Africa Elsewhere, South Africa is set to amend a law that requires telecom firms to be at least 30% black-owned to enable Elon Musk's Starlink to operate in the country. The decision, announced on Tuesday, comes at a time when tensions between Africa's most industrialized nation and the United States are at a boiling point. U.S. President Donald Trump and Musk have accused the South African government of orchestrating a genocide against white residents, a claim that the African nation has refuted, and which one court has dismissed as 'clearly imagined and not real.' Still, Trump has persisted, and last week, the U.S. welcomed the first batch of South Africans as refugees. Trump and South African President Cyril Ramaphosa are set to have a meeting this week in Washington, and the decision to amend the black ownership law is seen as an effort to smooth things over before the crucial meeting. 'We're not doing it for Musk' The law being amended—known as the Black Economic Empowerment (BEE) law—was introduced in the '90s as South Africa abandoned apartheid, which had significantly disadvantaged the black majority. It requires companies in some industries, such as IT, telecoms, and automotive, to be at least 30% owned by black entrepreneurs. Starlink, where Musk has 79% control, was to set up operations in South Africa last year after successful debuts in 20 other African nations. However, it didn't meet the BEE threshold, and since then, Musk has ramped up criticism against the Ramaphosa government. The X and Tesla (NASDAQ: TSLA) CEO was born in Pretoria, the South African capital, but relocated to Canada at 17. 'I am in a situation where I was born in South Africa, but cannot get a license to operate Starlink because I am not Black,' he told Bloomberg this week. The South African government has finally bowed to the pressure and will amend the BEE law, allowing Starlink to set up in the country, home to 61 million people. Experts say the timing of the move suggests that Ramaphosa is using it to appease Trump ahead of their meeting. However, the South African government has denied the allegations, claiming it's 'part of a broader strategy to create an enabling environment for international investment and expand digital connectivity across South Africa.' The move is part of the government's medium-term plans, the Department of Communications and Digital Technologies told media outlets. However, some in the country's political landscape remain opposed to Starlink's entry. Economic Freedom Fighters, the top opposition party, says the move is unconstitutional and 'exposes Ramaphosa as willing to compromise on our sovereignty to massage the inflated ego of Elon Musk and Donald Trump,' the party's spokesperson, Sinawo Thambo stated. 'These powers are governed by national legislation and independent regulators, not the whims of one man desperate for foreign approval,' he added. The party has vowed to fight against the move 'in the courts, and on the streets.' In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek's coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI . Watch: Bitcoin Retrospective and a Focus on the Future of the Internet with Mike Hearn title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
The Herald
27-05-2025
- Business
- The Herald
Colonial-era borders create conflict in Africa's oceans — how to resolve them
Africa has 38 coastal and island nations. Their maritime industries — including energy, tourism, maritime transport, shipping and fishing — play a crucial role in developing these nations. Key to harnessing these resources are Africa's maritime boundaries — lines on a map showing the legal divisions of the ocean between neighbouring coastal states. Some of these boundaries were created by colonial powers and kept after independence. Their purpose was to achieve territorial security and ensure the exclusive exploitation of resources and to maintain navigational freedom. But Africa's maritime boundaries sometimes lead to conflict, prevent co-operation on resource management and create room for maritime crimes, like illegal fishing. This is because they are often contested. Countries have overlapping claims and varying interests in resource exploration. This is common in maritime areas rich in oil, gas and fisheries, and deep seabed resources. In our recent paper we found that using international law to resolve maritime boundaries does not always bring peace, especially when it results in ceding the disputed area to one party. It can result in animosity between countries and breed room for continued distrust among peoples. Today, Africa has the most unresolved maritime boundary disputes in the world and the lowest number of settled boundary disputes. As more ocean resources are discovered, climate change may heighten disputes. Rising sea levels can gradually submerge maritime zones, potentially affecting the baselines from which these zones are measured. This could create uncertainty or trigger new conflicts. In our paper, we suggest a collaborative approach to resolving maritime disputes. We hope that this will help prevent many African countries from missing out on the benefits of their oceans. Disagreements over maritime boundaries can have many negative effects. Research has shown that criminal activities tend to increase in disputed maritime boundaries. For instance, illegal fishers are aware that because there is dispute over a border, there will also be enforcement gaps. Countries in dispute will also not work together and will not be sending patrols to contested areas. For instance, in 2016, a Chinese vessel escaped into Sierra Leone to avoid capture. When Guinean naval forces boarded the vessel for enforcement, there was an exchange of fire and 11 Guineans were detained by Sierra Leone. When boundaries are disputed, it also means that local fishers are likely to encroach into neighbouring waters, often unknowingly, in search of better catches. Given the significance of fisheries to coastal livelihoods and the extent of depletion, this threatens peace and security. It fuels tension between communities and countries over access to dwindling resources. Disagreements over maritime boundaries also diminish maritime security co-operation, complicate joint patrols, and divert attention from tackling shared threats such as piracy. Unfortunately, resolving maritime boundary disputes is complicated by a principle in international law known as uti possidetis juris — 'as you possess under law'. The principle says that when countries argue over borders, international law, built around colonial-era boundaries, is used to decide who gets what. This creates a 'winner-takes-all' approach — one side gains control over the disputed area and resources. International courts, like the International Court of Justice and the International Tribunal for the Law of the Sea, follow the provisions of law reinforcing uti possidetis . Our examination of maritime boundary disputes in west and central Africa found that the principle of uti possidetis juris had failed to alleviate maritime boundary tensions. In some cases, it has worsened them. One example is a maritime dispute between Cameroon and Nigeria decided in 2002. The dispute was over who had control of Bakassi, an oil-rich region, and its maritime frontier. The uti possidetis juris principle upheld the lines drawn at the time of Nigeria's independence and resulted in the ceding of Bakassi to Cameroon. The impact of the resolution lingers. To date, thousands of displaced Bakassi people that returned to Nigeria have yet to be resettled and reintegrated. Disputes also continue between fishers from Nigeria and Cameroonian law enforcement agents. In extreme cases, it results in death, like the alleged killing of 97 Nigerian fishers by Cameroonian marine police. In our paper, we recommend that courts, tribunals or disputing countries consider joint management agreements to resolve maritime disputes. Under such agreements, countries share and manage disputed maritime resources. These agreements will allow for the joint management of shared resources. It will also encourage co-operation and collaboration in other areas, such as joint operations to combat illegal fishing and piracy. While international courts may apply uti possidetis juris as required by law, countries should be encouraged to negotiate special arrangements — such as joint development agreements — as part of the resolution process. Especially in cases where livelihoods and long-standing community ties risk being disrupted by unilateral decisions or the ceding of disputed areas to one party. While not perfect, this approach has already improved co-operation on security and resource use at sea. It has worked in places like Nigeria, São Tomé and Príncipe, Senegal and Guinea-Bissau. Ghana and Côte d'Ivoire also have a joint management framework in place for their shared boundaries to avoid future disputes. Prolonged boundary disputes only enable criminal actors to exploit Africa's resources, undermining collective progress. A shift towards collaborative solutions is essential for achieving a sustainable and prosperous future for the continent.
Al Jazeera
08-05-2025
- Business
- Al Jazeera
Will African nations ever be able to repay their debt?
Africa is a continent rich in natural resources with a young population. African nations in theory have the potential to transform their economies. But many of them are facing mountains of debt. Africa's external debt climbed to more than $650bn last year. More than half of African countries are either in debt distress or teetering on the edge. But credit restructuring is painstakingly slow, and many governments end up spending more on servicing their debt than on healthcare or education. The debt problem has plunged many nations into economic crisis with rising unemployment and poverty.
