Eighty officers from the Somali Security Forces (SSF) and the African Union Transition Mission in Somalia (ATMIS) have concluded a three-day training on countering Improvised Explosive Devices (IEDs) used by illegal armed groups, including Al Shabaab.

The training, facilitated by the United Nations Mine Action Service (UNMAS) and the United Kingdom Mission Support Team (UK-MST), aimed to enhance the operational efficiency of SSF in dealing with IED risks in the Federal Member States (FMS). The comprehensive programme covered various aspects of IED detection, disposal, and post-blast investigation techniques.

“This training will be pivotal in the actualisation of the ATMIS mandate to degrade Al Shabaab in support of the Somali-led peace and security process,” said ATMIS military Chief of Staff, Brig. Gen. Kindu Gezu.

Brig. Gen. Gezu emphasised the importance of continued vigilance in countering the threats posed by IEDs, which are the primary weapon of choice for Al-Shabaab in its asymmetric warfare.

The Chief of UNMAS, Justin Smith, highlighted the successful collaboration between ATMIS, SSF, and UNMAS over the years, which has enabled the troops to detect and neutralize a significant number of IEDs planted by Al Shabaab militants in various parts of the country.

He said since 2017, ATMIS Counter-IED teams have managed to discover and safely detonate 439 devices, preventing an estimated 1,756 potential casualties.

“In 2023 alone, ATMIS Search and Explosive Ordnance Disposal (EOD) teams found and cleared 74 percent of devices assessed as targeting ATMIS troops, preventing a potential 150 ATMIS casualties,” said the UNMAS Somalia Chief.

ATMIS Military Chief Engineer, Col. Suleiman Ibrahim, urged partners to effectively tackle the IED menace to minimize threats to livelihoods, infrastructure, and humanitarian relief efforts.

“An effective counter-IED effort requires ingenuity, adaptability, and application of basic tenets. The fight against the IED menace is not easy and requires concerted efforts by all stakeholders,” Col. Ibrahim observed at the closing ceremony on Thursday.

The Chief Engineer for the Somali National Army, Col. Adan Abdullahi Ali, expressed his gratitude to ATMIS, UNMAS, and UK-MST for providing the Somali Security Forces (SSF) with the relevant skills and equipment to ensure Somalia’s peace and stability.

The theme for this year’s training workshop was ‘Working towards a sustainable SSF Counter-IED capacity development in preparation for the Somalia security transition’.

During the training, participants discussed Somalia’s IED threats, the Somali National Army’s threat assessment, and ongoing counter-IED operations.

UNMAS and ATMIS have been working together to improve the capacity of SSF personnel, equipping them with the necessary skills and facilities to detect and destroy IEDs that pose a threat to civilian safety.

Distributed by APO Group on behalf of African Union Transition Mission in Somalia (ATMIS).

Uganda is welcoming increasing numbers of Sudanese arrivals – over 33,000 people, 19,000 of whom have arrived in Kampala since the start of 2024 – seeking safety from a war that has raged for more than a year. 

Most Sudanese arrivals are from Khartoum, and many have a university-level education.

Including the Sudanese, on average 2,500 people arrive in Uganda every week, mainly from the Democratic Republic of the Congo and South Sudan, primarily driven by ongoing conflicts and climate-related challenges.

The continuous influx of refugees is not making the headlines but combined with funding shortfalls, puts significant pressure on protection and assistance services provided to refugees and their host communities, risking Uganda’s solid protection regime and refugee response model.

Due to funding gaps, the health sector – which serves both refugees and the surrounding host populations – has already been hard hit. Health centre staff numbers have had to be reduced and there are insufficient supplies to meet critical health needs.

An outbreak of conjunctivitis (red eye disease) around the country has also impacted several refugee settlements. For example, 141 cases have been reported in Nakivale settlement and there are concerns it could get worse due to a shortage of water and soap, impacting hygiene. Mental health concerns persist. Four attempted suicides among refugees in Adjumani – two of them young people – have been reported in the past two weeks, highlighting the vulnerability of youth and the necessity for increased targeted interventions.

Schools are overcrowded and there are not enough teachers or educational materials, making it difficult for children – representing more than half of the total refugee population – to get an education.

Critical protection services are also being hampered. For example, refugee registration is facing lengthy delays as there is a lack of necessary materials and equipment to make the process smoother.

Investments in supporting refugees with income-generating activities have had to be curtailed, with a ripple effect on efforts to make refugees less dependent on aid.

This past week, UNHCR with senior Ugandan officials have visited key partners including the Governments of Denmark, Netherlands, and Belgium as well as EU institutions, to highlight the profound impact of reduced funding, and advocate for additional resources. UNHCR highlighted the importance of donor support in alleviating the plight of refugees and their host communities, emphasizing Uganda’s unwavering commitment to fulfil pledges toward greater socio-economic inclusion and self-reliance for refugees made at the 2023 Global Refugee Forum.

Uganda hosts the highest number of refugees and asylum-seekers in Africa, with almost 1.7 million people mainly from South Sudan and the DRC, yet it was among UNHCR’s 13 top underfunded operations globally in 2023. In 2024, the Uganda Country Refugee Response Plan (UCRRP) which is seeking $858 million for 96 partners to support over 1.67 million refugees and 2.7 million host community members, has received just 13 per cent of the required funds.

For decades, Uganda has been at the forefront of assisting refugees and has been a beacon of stability in the region, embracing progressive policies that exemplify the Global Compact on Refugees, allowing refugees to have land and freedom of movement and to reside in urban areas provided they can support themselves.

If those policies lose ground as funding ebbs, we may see people moving out of Uganda in search of a way to survive. In May, refugees started leaving for neighbouring countries citing the lack of support and the reduction in food rations. If there is no action, development gains and institutional capacity will be weakened and peaceful coexistence with the hosting communities hampered. More international support is needed to help support Uganda’s commitment to refugee protection.

Distributed by APO Group on behalf of United Nations High Commissioner for Refugees (UNHCR).

Africa has an unprecedented opportunity to accelerate development by aligning its abundant renewable energy resources with solutions for its infrastructure deficiencies. This is a key conclusion from a new annual study on the State of Africa’s Infrastructure initiated by the Africa Finance Corporation (www.AfricaFC.org).

The report highlights critical gaps in key sectors including power, transport, logistics, digital communications, and commodity-based value chains. It aims to quantify the extent of Africa’s infrastructure opportunities and provide strategic guidance for prioritizing investments essential for sustainable growth.

Among the key findings: despite decades of progress, Africa’s infrastructure development has not kept up with the growing needs of its population. The continent’s dependence on outdated pit-to-port models is hindering economic growth. However, global economic shifts in supply chains and the transition to green energy present an opportunity for Africa to redefine its economic role by leveraging its rich raw materials and youthful population.

For Africa to capitalise on this pivotal moment, decisive and urgent action is required to develop the infrastructure and value chains that will enable industrialisation and climate-adaptive development.

Focusing on energy access as a cornerstone to development, the report highlights the disparity in access to electricity as the most significant barrier to industrial growth. For this reason, progress in the crucial area of energy access should be measured not just by reductions in household energy poverty, but also by the capacity to provide sustainable energy solutions that support industrial and economic development. The potential for growth by bridging Africa’s energy deficit is illustrated using new metrics such as the Modern Energy Minimum, and application to the processing needs for commodities like bauxite and copper.

Taking Guinea as a case study, the report observes that despite possessing the world’s largest bauxite reserves and being a top producer, Guinea cannot fully capitalize on its resources without receiving significant investments to boost its energy systems and processing facilities. By contrast, Australia, with similar bauxite volumes, extracts more than twice the economic value thanks to advanced refining and smelting capacities supported by a robust natural gas-powered energy infrastructure. This disparity underscores the urgent need for West Africa to develop robust energy systems and processing infrastructure. Investments in cross-border electricity and gas networks, leveraging existing ECOWAS treaties, could enable the region to build new industrial supply chains and move beyond raw material extraction.

Coordinating transport and logistics networks is crucial to reducing high transportation costs, which currently inflate the price of goods by up to 40%. Significant investments in port infrastructure need to be matched by improvements in connecting road and rail networks. The report identifies opportunities to support trade corridors with new cross-border rail and road networks and to expand cargo handling at airports.

“This report is not just about identifying challenges; it’s about unlocking the immense potential that lies within our collective resolve,” said AFC President&CEO Samaila Zubairu. “The State of Africa’s Infrastructure Report is a call to action for stakeholders across the continent to collaborate for a smarter, more targeted, and better coordinated investment approach.”

Read the full report here (https://apo-opa.co/3ywnOW2).

Distributed by APO Group on behalf of Africa Finance Corporation (AFC).

Media Enquiries:
Yewande Thorpe
Communications
Africa Finance Corporation
Mobile: +234 1 279 9654
Email: yewande.thorpe@africafc.org

About AFC:
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.

Seventeen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 43 member countries and has invested US$13 billion across Africa since inception. www.AfricaFC.org

By Miranda Abraham, Head of Loan Syndication at RMB (www.RMB.co.za) in London.

Over the past few years, African debt markets have faced significant challenges due to a combination of factors including soft global economic conditions, the COVID-19 pandemic and related supply chain failures.

These factors led to a decrease in demand for African debt and a dramatic rise in borrowing costs, placing sovereign borrowing in particular in a difficult position.

In fact, in 2023, there was no issuance at all in Sub-Saharan Africa, marking the first time since 2008 that this happened.

The global bond market was effectively frozen for Africa.

The funding squeeze and the closure of the bond market forced African countries to seek alternative sources of financing, such as domestic capital markets, multilateral institutions, and bilateral agreements.

But in January and February 2024, everything changed. 

Suddenly there was a rush of deals. First Cote d’Ivoire reopened the market with a bumper $2.6bn of bond issuance. Even more encouragingly, the sale was oversubscribed more than three times, with a combined demand of $8 billion.

Then Benin came to market with a smaller issuance of $750m at a yield of just under 9%. Kenya issued a hefty $1.5bn at a yield of 10.4%, the proceeds of which will be used to buy back most of its debt which falls due in June this year. First Quantum Minerals issued $1.6bn, closely following Kenya.

Moreover, these bonds actually all priced lower than initial guidance – indicating that investor demand was far stronger than initially anticipated.  The issuance was proof positive that the market had turned a corner and confidence had returned.

This confidence spread to the loan market, with banks suddenly rushing to pitch loan bridges to bond issuance and / or medium-term financing at more attractive loan pricing than borrowers have been offered over the last 2 years.

As we approach the midway point of the year, the prospect of further interest rate cuts from central banks seems less and less likely. Debt capital markets issuance however is continuing with recent deals for Puma Energy for $500m and phosphate miner OCP S.A., which successfully completed a bond issue on the international markets for $2bn. There are more in the pipeline which suggest the African bond markets are alive and well again.

These recent debt sales in Africa show that investors are buying riskier bonds. This trend is likely to continue as more high-yield borrowers return to sub-Saharan Africa, seeking to capitalise on the region’s growth potential.

The cost of borrowing remains high in Africa, but with projections that most of the central banks will be reducing their base rates in hard currency, borrowers will immediately start to see the benefits as costs fall.

Encouraging too, is that the debt levels in sub-Saharan Africa have largely stabilised at around 60%, and this could begin to ease slightly from 2024, halting a nearly decade-long upward trend.

We are also optimistic of a rise in event-driven financing this year.

Event driven financing refers to strategies where investment decisions are made based on specific corporate events, such as mergers, acquisitions, spin-offs and bankruptcies.

In the context of Africa’s economic development, event-driven financing can play a crucial role. We expect event-driven financing in Africa to leverage innovative financing instruments to crowd-in private climate investments and support sustainable development and green initiatives.

Importantly, the African Development Bank Group has actively promoted the use of philanthropic and other forms of capital to create an ecosystem of green growth.

This approach has been highlighted at the World Economic Forum (WEF) earlier this year.

Additionally, the African Union has hosted the Conference of Ministers of Finance, Planning, and Economic Development (COM2024) in Victoria Falls, Zimbabwe, with a theme focused on financing Africa’s green and inclusive transition. The event brought together experts to discuss ways to mobilise climate finance at national, regional, and global levels.

Events such as the African Economic Outlook 2023 launch and the Conference Internationale De Lome Sur Le Financement also focused on venture capital and infrastructure financing for African projects and businesses as the continent looks towards a new financial landscape to support green industrialisation and sustainable growth.

African countries are seeking to address global development challenges and are calling for a fair financial system to handle climate shocks and implement their development agenda.

Debt remains a headwind and inequalities in the international financing architecture make access to finance inadequate and expensive.

In other developments, the African Union has emphasised the need for global reforms, concessional finance, Special Drawing Rights, and Africa’s voice in decision-making to address debt, risk ratings, and the cost of capital.

We are also seeing a significant uptick in activity around underwriting, not only for clients who want fund certainty for general loans, but for M&A activity as well, which clearly demonstrates renewed investor appetite.

While M&A deals tend to have a long lead time before coming to market, they are eagerly anticipated and often represent new borrowers and new transactions, along with renewed investor activity in a challenging market.

All the signs point to a positive turnaround for both bonds and loans in 2024.

There is plenty of pent-up demand from both borrowers and investors, and as the year got off to a strong start there are clear grounds for cautious optimism. 

Distributed by APO Group on behalf of Rand Merchant Bank.