John Campbell

Africa in Transition

Campbell tracks political and security developments across sub-Saharan Africa.

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Showing posts for "Foreign Investment"

Reduced Airline Service to Nigeria?

by John Campbell
Emirates Airlines aircrafts are seen at Dubai International Airport, United Arab Emirates, May 10, 2016. (Reuters/Ashraf Mohammad)

Quartz is reporting that Emirates airlines is considering pulling out of Nigeria. It is already cutting its twice-daily flights to Lagos and Abuja from Dubai to once a day to Lagos only, starting at the end of October. United Airlines ended its service from the United States to Nigeria in May. Domestic airlines are also facing difficulty. Quartz reports that Aero Contractors, Nigeria’s oldest airline and long regarded as its most reliable, has suspended operations. Quartz also reports that many domestic passengers have been stranded because local airlines have not been able to refuel their planes because of a shortage of jet fuel. Read more »

Africans in China: The Pivot Back

by Guest Blogger for John Campbell
African traders buy clothing at a shopping mall in Guangzhou July 31, 2009. (Reuters/Tyrone Siu)

This piece has been co-authored by Nathan Birhanu and Bochen Han. Nathan is an intern for the Council on Foreign Relations Africa Studies program and is a graduate of Fordham University’s Graduate Program in International Political Economy & Development. Bochen is an intern for the Council on Foreign Relations Asia Studies program and is an undergraduate majoring in political science at Duke University. Read more »

BREXIT and Africa

by John Campbell
People chat in front of an electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton Johannesburg July 9, 2015. (Reuters/Siphiwe Sibeko)

It is early to assess the long term consequences for sub-Saharan Africa of the United Kingdom’s (UK) vote to leave the European Union (EU) on June 24. However, in the short term, it is useful to look at the performance in the exchange rates and stock exchanges of Nigeria and South Africa since the referendum. They provide something of an indication of the wider impact Brexit had on Africa. Nigeria and South Africa together account for more than half of sub-Saharan Africa’s gross domestic product. Both have long had close ties with the UK, especially with respect to trade and financial services. In addition, there are myriad other ties between the UK and Nigeria and South Africa. For example, there is a large British expatriate community living in South Africa. The Nigerian expatriate population in the UK is also significant, and wealthy Nigerians have long favored the UK for education, health services, and second homes. Read more »

South Africa’s Land “Expropriation Bill”

by John Campbell
A Muslim man stands next to iftar (breaking fast) meal plates on the first day of Ramadan in India, at the Jama Masjid (Grand Mosque) in the old quarters of Delhi, India July 7, 2016. (Reuters/Siphiwe Sibeko)

There is less than meets the eye to the South African parliament’s passage at the end of May of a land reform bill, called the “Expropriation Bill.” Ostensibly, the new legislation has some similarity to law of eminent domain in the United States. The new legislation would permit the government to take land for a “public purpose,” but (as in the United States) South African landowners would be compensated with an amount determined by a new ‘valuer general.’ The new legislation replaces the “willing buyer, willing seller” principle of land reform. Read more »

Nielsen: Ivory Coast Now Top Business Prospect in Africa

by John Campbell
A worker holds cocoa beans at SAF CACAO, a export firm in San-Pedro, Ivory Coast, January 29, 2016. (Reuters/Thierry Gouegnon)

Nielsen’s “Africa’s Prospects: Macro Environment, Business, Consumer and Retail Outlook Indicators” of February 2016 rank orders sub-Saharan Africa’s nine leading markets. The list represents 71% of the region’s GDP, and half of its population. Ivory Coast is ranked first, Kenya second, Tanzania third, and Nigeria is fourth. It ranks Zambia as fifth, Cameroon as sixth, South Africa as seventh, Uganda as eighth, and Ghana brings up the rear. Read more »

South Africa and Barclays Africa

by Guest Blogger for John Campbell
A Barclays logo is pictured outside the Barclays towers in Johannesburg, December 16, 2015. (Reuters/Siphiwe Sibeko)

This is a guest post by Allen Grane, research associate for the Council on Foreign Relations Africa Studies program.

The recent rumor of Barclays PLC’s potential sale of its African businesses has caused a stir in South Africa. While Barclay’s has yet to confirm any decisions, there is plenty of reason to suspect the rumors are credible. Barclay’s has recently had to pay large regulatory fines for illegally rigging the London interbank rate, they have cut back substantially in Asia, and, perhaps worst of all, economic growth has significantly decreased in Africa. If Barclays PLC were to divest of holdings in Africa, it begs the question of who would buy their shares in Barclays Africa, specifically South Africa-based ABSA, one of the country’s largest banks. Read more »

IMF Managing Director Lagarde’s Visit a Boost for President Buhari

by John Campbell
Nigeria's President Muhammadu Buhari and International Monetary Fund (IMF) Managing Director Christine Lagarde attend a meeting in Abuja, Nigeria, January 5, 2016. (Reuters/Afolabi Sotunde)

President Muhammadu Buhari faces a serious economic crisis related to the plunge in the world price of oil, slow rates of economic growth, the prospect of rising American interest rates, a falling national currency, and declining government revenues. At the same time, he is working to restructure the economy away from undue dependence on oil by increasing infrastructure investment and vigorously pursuing an anti-corruption agenda demonstrated by the arrests of high-profile public figures. Read more »

The Eastern Congo

by Guest Blogger for John Campbell
South African peacekeepers patrol the streets of Goma in eastern Democratic Republic of Congo, December 2, 2015. (Reuters/ Ed Cropley)

This is a guest post by Allen Grane, research associate for the Council on Foreign Relations Africa Studies program.

Last Thursday, the Council on Foreign Relations’ visual media team released its new InfoGuide: The Eastern Congo. Developed in conjunction with experts from Human Rights Watch, Johns Hopkins School of Advanced International Studies, the United States Institute of Peace, and the Congo Research Group, the guide provides an excellent outline of the conflict that has plagued the eastern Democratic Republic of the Congo. Read more »

The South African Roller Coaster

by John Campbell
South Africa's President Jacob Zuma speaks during his visit to the Lodewyk P. Spies Old Age Home in Eersterust, Pretoria, December 15, 2015. (ReutersS/Siphiwe Sibeko)

On December 10, President Jacob Zuma fired Nhlanhla Nene, the well regarded finance minister, and replaced him with the unknown and inexperienced David van Rooven. Though Zuma is not required by the South African constitution to consult with anybody on cabinet appointments, the fact that he did not inform his cabinet or provide public explanation for his removal of Nene and appointment of van Rooven may have been the last straw. Read more »

Africa Taps Global Bond Markets at Rapid Rate

by Guest Blogger for John Campbell
Stockbrokers trade on the floor of the Zimbabwe Stock Exchange (ZSE) in Harare, February 24, 2015. (Courtesy/Philimon Bulawayo)

This is a guest post by Aubrey Hruby and Jake Bright. They are the authors of The Next Africa: An Emerging Continent Becomes a Global Powerhouse.

Sub-Saharan African governments are tapping global capital markets at a rapid pace, issuing $18.1bn in dollar denominated eurobonds from 2013-2015, nearly triple the $7.3bn issued in the previous three years. Read more »