Jump to navigation

Vol 57 No 1

Published 8th January 2016


New ideas, harder times and a few surprises

After a decade of strong growth, new economic pressures are prompting protests and political change

When international conferences have to devote an extra day to crafting upbeat resolutions, you know hard times are coming. In December, over 180 delegations went an extra 100 metres to produce a hopeful-sounding communiqué to wind up the Climate Change conference in Paris. For all the skilful diplomacy on show, Africa didn't get the cast-iron commitments it was seeking on funds for the proposed US$100 billion a year climate change adjustment fund. Nor did it see any deluge of investment in solar power projects in the world's sunniest continent.

Similarly, Beijing's diplomats worked hard to put the best possible spin on the Forum on China-Africa Cooperation summit in South Africa, also in December. Some $60 bn. of Chinese investments and loans would be sluicing through Africa over the next five years, President Xi Jinping smilingly assured the gathering. It was a welcome respite from the gloomy reports of tumbling copper, cobalt and iron prices as China rebalances its gigantic resource-hungry economy.

With its practised diplomacy the International Monetary Fund warns of the 'stronger headwinds' facing Africa's economies in 2016. Lower revenues together with mounting debts and budget deficits are pushing African governments to make some hard choices. When these headwinds translate into cuts in jobs and spending on schools and healthcare, there are going to be repercussions.

We expect political upsets in those countries with strong opposition parties and traditions of civic activism. Unquestionably, South Africa's governing African National Congress will face its toughest challenge yet in the local and metropolitan elections with its control of cities such as Johannesburg, Pretoria and Port Elizabeth now at risk. A poor showing by the ANC would have national consequences, perhaps encouraging a challenge to President Jacob Zuma, whose authority was severely weakened in the last few weeks of economic meltdown in 2015.

Ghana and Zambia are struggling with similar demons in the run-up to their elections this year, as well as chronic power shortages and rising debt. In both countries, the opposition parties scent victory.

The third-term movement – the club of presidents who cannot bear to leave office – faces more tests in Congo-Brazzaville and Congo-Kinshasa. Veteran putschist President Denis Sassou-Nguesso has faced down his opponents and pushed through changes in a hastily-organised constitutional referendum. Another victory in elections, due in July, looks certain. Far less clear are the prospects for President Joseph Kabila in Congo-Kinshasa, who has been dithering over the third-term matter.

There will be no prizes for guessing the election winners in Uganda (Yoweri Museveni in February), Niger (Mahammadou Issoufou, February) and Djibouti (Ismail Omar Guelleh, April). But the presidential elections due in Benin on 28 February break the mould: the race to succeed outgoing President Thomas Boni Yayi appears to be wide open and few in Porto Novo and Cotonou are willing to predict the outcome. 

 



Related Articles

The tough trade talks after Hokkaido

Aid and trade are to be discussed as Africa looks to Japan to act on protectionist farming tariffs

Tokyo's careful diplomacy ahead of the Hokkaido G8 summit the 7-9 July now faces its biggest test among African states: how can Japan explain its stance at the next round of the ...


Counting the cost

Hopes that Africa would turn the economic corner have been dampened as the Asian and Russian crises hit growth prospects

Fending off a globalised recession is top of the agenda for world financial leaders gathering in Washington for the annual meeting of the World Bank and International Monetary Fund...


Jungle justice

Lingering court cases such as the murder of Judge Bernard Borrel in Djibouti, the Angolagate arms trial and the arrest of Rwanda’s Rose Kabuye cast a shadow over French President N...


South Bank challenge to IMF and World Bank

The 28-29 March New Delhi summit of the BRICS (Brazil, Russia, India, China and South Africa) countries debated establishing a BRICS development bank – the South Bank – to give the...


Shantayanan Devarajan

Chief Economist, Africa Region, World Bank

The effects of the global slowdown on African economies have been generally overlooked. The World Bank has responded with its advocacy of more regional integration and infrastruc...