UK says Tigray conflict puts Ethiopia reforms at risk
Ethiopia’s war in the restive Tigray region is putting prime minister Abiy Ahmed’s reform agenda at risk, according to UK foreign secretary Dominic Raab. Ahmed sent troops into Tigray in November to fight the Tigray People’s Liberation Front, the region’s ruling party, who he accused of launching attacks on federal troops. Thousands are believed to have been killed in the conflict at time of going to press and the government has rejected international ceasefire calls. “The UK has been a longstanding supporter of Ethiopia, which has established itself as a beacon of reform. This conflict is putting all of those reform efforts at risk”, said Raab (see also Editor’s View, page 98).
African governance performance declines in Ibrahim Index
Africa’s governance performance has declined for the first time in a decade, according to Sudanese telecoms billionaire Mo Ibrahim’s
2020 Index of African Governance. His index – compiled before the disputed elections in Tanzania and Côte d’Ivoire and the unfolding conflict in Ethiopia – registered the first overall performance decline since 2010. The 2019 average score for overall governance fell by -0.2 points, triggered by worsening performance in three of the four main categories: participation, rights and inclusion, security and rule of law, and human development.
APRM criticises South African credit downgrade
The African Union’s African Peer Review Mechanism has criticised the decision by Fitch and Moody’s to further downgrade South Africa’s credit ratings. “The double rating downgrades are immediately translating to high debt costs making government debt unsustainable, deteriorating asset values and reduction in disposable income for many,” it said in a statement. The APRM said that factors had not significantly changed since initial post-Covid downgrades, and said South Africa should be given time to implement its medium-term budget policy.
China may reduce Africa investment, says Allianz
China may reduce its investment in Africa over the next few years, according to a research note from insurer Allianz, with a shift in the country’s priorities, a slowdown of economic growth and a heavy domestic debt burden leading to a retreat from low and middle income countries. Angola, Kenya, Ethiopia, Ghana and South Africa could struggle to find alternative international sources for funding, investment and trade to sustain their economic growth, the firm says. For a sample of 10 global economies this would result in a $47bn external financing gap by 2025.