23rd January 2024
UN membership hope for Africa
United Nations Secretary-General Antonio Guterres expressed hope for a partial reform of the U.N. Security Council during the Group of 77 summit in Uganda. Guterres noted support from all five permanent members—U.S., Russia, China, UK, and France—for at least one African permanent member. While no guarantees exist, the African Union aims for two permanent seats. Guterres highlighted the Security Council's paralysis due to geopolitical divisions and called for reforms to align with the current global reality. He criticized the global financial system, emphasizing its failure to provide adequate support for developing countries.
Blinken Strengthens African Bonds
U.S. Secretary of State Antony Blinken pledges deeper relations with Africa during his four-country tour, emphasizing commitment to partnerships. In Cape Verde, he lauds the nation as a "beacon of stability" and criticizes Russia's invasion of Ukraine, while urging for liberal democracy values. Blinken tours infrastructure projects and discusses partnerships. The visit includes Ivory Coast, highlighting China's influence, and addresses concerns over the Sahel's security. The U.S. seeks continued engagement with Africa, especially amid geopolitical shifts and security challenges. Meanwhile, U.N. Ambassador Linda Thomas-Greenfield monitors peaceful transitions in Guinea-Bissau, Sierra Leone, and Liberia during her concurrent West African tour.
Kenya’s Shilling Hit Low
Kenya's shilling, the second-worst performing African currency in 2024, hit a record low of 162.29 against the dollar. Despite nearly $900 million in new funding pledges, analysts anticipate further depreciation due to rising import costs. The worst-case scenario sees the shilling weakening to 210 against the US dollar by year-end. The Central Bank of Kenya's struggle with dollar reserves and a looming Eurobond repayment deadline in June add to concerns. While a weaker shilling may impact imports and debt-service costs, the flexible exchange-rate policy gains IMF support, with recent disbursements totaling $684.7 million.
Tunisia Eases Default Worries
Tunisia's Finance Minister, Sihem Boughdiri, announces successful repayment of all 2023 domestic and external debts, easing concerns about default. Despite economic pressures, Tunisia manages to settle debts. The country is set to pay $4 billion in foreign debts in 2024, a 40% increase from 2023, amid a scarcity of external financing. Experts note reliance on internal loans to settle external debts, impacting liquidity and reducing banks' financing for the economy. Tunisia anticipates the public debt to reach approximately $45.17 billion in 2024, constituting 79.8% of GDP, up from $41.91 billion. Economic challenges persist with rising foreign debt.
