East Africa Briefing November 2014

East Africa Briefing
November 2014
October at a Glance
November 2014
Eritrea, October 29: The number of Eritreans crossing into Ethiopia rises to over
200 a day as food shortages and forced military service in Asmara result in a growing
refugee crisis.
Djibouti, October 29: Officials from the African Union, African Development
Bank and UN arrive in Djibouti to mark the first official visit to the country by UN
Secretary General Ban Ki-Moon.
Somalia, October 5:
African Union forces, supported
by Somalia government troops,
capture the headquarters and
last major remaining outpost of
Al Shabab in southern Somalia,
the coastal city of Barawe.
Ethiopia, October 14: Protesters gather outside the US Embassy in Addis Ababa,
demanding the arrest of individuals who had desecrated the Ethiopian flag in the
United States. The protest ended peacefully.
South Sudan, October 31: South Sudanese President Salva Kiir recalls his peace delegation to the IGAD-sponsored talks in Addis Ababa in response to ongoing military
engagements in the Unity State capital Bentiu.
Uganda, October 8: Two people were burnt to death on a disputed piece of land
in Hoima that has been leased to McAlester Energy Resources Limited to construct an
oil waste management facility.
Burundi, October 31: The Burundian Vice-President initiates the country’s latest
BIF 12 billion EU-funded land management project.
Kenya, October 18: KDF forces kill five suspected al Shabaab fighters who were
attempting to drive an explosive laden car into Kenya from the Ethiopian Mandera
border region.
Zambia, October 28: Zambian President Michael Sata dies while undergoing medical treatment in London, paving the way for fresh Presidential elections in January
2015.
Tanzania, October 31: Tanzanian authorities prepare to arrest two top officials
within the national Petroleum development corporation after the pair refused to
release recent production sharing agreements to the scrutiny of parliament.
Malawi, October 17: An assistant accountant in the former Banda administration
is found guilty of possessing over K112 million in hard cash at his home in circumstances in circumstances directly related to the “cash gate” aid corruption scandal.
Mozambique, October 30:
FRELIMO party candidate Filipe
Nyusi is elected President of
Mozambique, winning 57 percent of the popular vote in polls
held on October 15. Former
rebel leader and RENAMO party
chief Alfonso Dhlakama came
in second, receiving more than
double 2009 support with 37
percent of the vote.
Regional Overview
November 2014
Shores near Djibouti Port
Executive Summary
Key Trends
•African Union forces announce major successes
against Al Shabab fighters as allied troops advance
into the heart of militant territory.
•Continuity of oil and gas exploration contracts comes
into question in Mozambique and Tanzania as discord
spreads within state bodies.
•Fears of a power struggle among Zambia’s ruling
Patriotic Front party emerge following the death of
President Michael Sata.
•Violent attacks surge in Kenya’s north-western counties amid improved Ethiopian-Egyptian trade relations.
30
26
20
16
10
2
0
KENYA
4
1
1
MALAWI
Reported Violent Incidents
MOZAMBIQUE
RWANDA
1
SOMALIA
SOUTH SUDAN
TANZANIA
Source: EI data
Politics and Security
November 2014
Somalia
Al Shabab Forces Reduced But Undefeated as
AMISOM Seize Remaining Coastal Strongholds
By Rick Scavetta, US Army Africa, CC-BY 2.0 via Flickrs
On October 5, after two
assassination of leader Ahmed Godane on Septemmonths of military operations
ber 1, in practice such discord does not appear to
across Southern Somalia, govhave impacted operations on the ground. In the
ernment officials announced
immediate aftermath of Godane’s assassination,
the capture of the port city
complex bombing attacks in the Somali capital saw
and strategic headquarters of Al Shabab, Barawe
a brief suspension there, but have since returned
town, marking an
at increased
end to over five
frequency over
years of militant
the course of
rule in the city.
October, amid a
While the immediwider upsurge
Dhuusamarreeb
ate impact of the
in violence in
GALGUDUUD
assault has yet to
south-eastBeledweyne
be realized, the
ern provinces.
BAKOOL
capture of Barawe
While the loss
Xuddur
has occurred amid
of Barawe is
HIRAAN
the most dramatic
almost certain
Garbahaarrey
extension of Mogto add increased
MIDDLE
SHABELLE
Baydhabo
GEDO
adishu’s territorial
challenges to Al
Jawhar
reach in recent
Shabab’s logisBAY
BANADIR
years, with African
tical planning
Mogadishu
Marka
MIDDLE
Union (AMISOM)
and revenue
LOWER
JUBA
SHABELLE
forces now advancstreams, given
Barawe
Bu'aale
ing deep into
the role that
LOWER
JUBA
militant heartlands
charcoal exports
in Lower Juba and
have historically
SOUTHERN
SOMALIA
the Lower Shabelle
played in group
Kismaayo
City
AMISOM-Held
under August’s
financing, the
August 16, 2014
Town
ongoing offendetonation of
August Gains
Al Shabab-Held
sive codenamed
three major car
Territory
September Gains
“Operation Indian
bomb attacks
October Gains
Ocean.”
since October
5 in the capital
What does this
has
suggested
that
in
the
short
term
at least, the
mean for Al Shabab’s long term survival? While
group’s core cells are likely to remain both active
various commentators have spoken of fragmentation
and operational.
within the group’s leadership structure following the
Politics and Security
November 2014
Zambia
Succession Battle Begins in Zambia
Following the Death of Michael Sata
Sata, the second
Zambian president to
die in office in the last
six years, formed the
PF in 2001 and fought
for the presidency four times before finally defeating
incumbent leader Rupiah Banda in 2011, ending the
20 year rule of the opposition Movement for MultiParty Democracy (MMD). Despite outbursts of violence
in 2011, Zambia has historically enjoyed a relatively
stable political history and has established democratic
institutions able to facilitate a smooth transition of
power.
However, Scott - already a divisive figure in Zambian
politics due to his British heritage and outspoken
manner - is stirring internal political tensions. While
unable to run for presidency himself, Scott appears
to be seeking to have a decisive say in the succession, swiftly moving to fire Edgar Lungu, the PF’s
secretary-general and one of the leading presidential
candidates, before reinstating him just 24 hours later
when riots broke out in Lusaka protesting the decision.
The riots were the first major incidents of political
unrest witnessed in
the country since
2011 and protesters
have warned they
may return to the
streets. However,
while an increase in
protests and sporadic
politically motivated
incidents is likely in
the short-term, Guy
Scott can only hold
power for 90 days and
a full return to stability
is expected following the elections.
Although it is clear
that deep divisions have emerged within the PF, these
divisions are likely to prove more damaging to the
reputation of the party than to the overall security
situation in Zambia. The PF, currently in their first and
only term in office, are already vulnerable following
accusations that they repeatedly lied about the severity of Sata’s condition and they may face a tougher
than anticipated battle during the elections.
By Amanda Lucidon, CC-BY-2.0 via Flickr
A power struggle has begun
unfolding within Zambia’s governing Patriotic Front (PF) party,
following the death of President Michael Sata on October
28, raising fears of instability in the generally peaceful
nation. Sata’s vice-president, Guy Scott, has assumed
presidential duties ahead of elections which, under
Zambian constitution, must be held within 90 days.
The succession battle is likely to be watched closely by
Africa and the international community, given Zambia’s
reputation as a safe
investment location.
However, despite
concerns that a lack
of transparency and
personal power plays
may threaten the
success of the democratic process, Zambia’s political maturity
should not be underestimated.
Business and Regulation
November 2014
Mozambique
General Elections Are a Test for
Mozambique’s Booming Gas Sector
Crucially, Frelimo, by losing its two-thirds majority,
also lost its right to make constitutional amendments
at will, which will force the ruling party to compromise. While the refusal of any dialogue and return of
armed attacks is unlikely as Renamo currently has
more incentives to stay involved in the political
process, such political deal will not necessarily be
translated into long-term stability. The formation of
the new cabinet, which will probably have to include
members of Renamo to reflect popular votes and
avoid violence, is likely to slow down the award of
energy contracts and natural resources concessions.
A reshuffle may also be followed by contract revisions
such as the implementation of new taxes, which will
undoubtedly impact on investor confidence and
hinder Mozambique’s ongoing economic development. In a bid to reassure markets in anticipation of
the election results, 15 oil and gas exploration blocks
were offered to buyers on October 24, sending a
signal that business continuity would not be affected
by political negotiations. Despite this apparent
commitment to protect its business environment,
government formation will be determinant for the
future of Mozambique’s hydrocarbon sector.
By Adrien Barbier, CC-BY-2.0 via Flickr
The governing Frelimo party
has emerged as the winner
of general elections held on
October 15, with Filipe Nyusi
succeeding to Armando Guebuza at the head of state. According to the electoral
commission, which is considered as a credible and
relatively independent body, Nyusi won 57.3 percent of the vote, against 36.61 percent obtained by
Afonso Dhlakama, the leader of the main opposition
party Renamo. Although the endorsement of African
observers, who deemed the vote largely free and
fair despite a number of irregularities in some of the
central and northern provinces, Renamo officially challenged the election results on accounts of frauds such
as ballot stuffing. Despite these allegations, Dhlakama
said on October 18 he would opt for dialogue with
Frelimo instead of resorting to violence in a probable
bid to leverage their 89 seats for political power. The
fact that Renamo increased its number of legislative
seats from 51 to 89 is a sign that Frelimo’s popularity
is wavering and that Renamo’s grievances related to
state corruption and monopoly power have found an
audience in Mozambique.
Business and Regulation
November 2014
Tanzania
Corruption Allegations Threaten the Future of
Development Plans in Tanzania
and education initiatives. Under a five-year development plan to help Tanzania become a middle-income
economy by 2025, the country is building new ports,
constructing power plants and strengthening infrastructure, and a reduction in funding is likely to derail
major spending plans in 2015. With a general election
due next year, the government will also be hoping that
a reduction in social and development expenditure will
not damage their re-election attempts.
Recent developments have bought the issue of Tanzania’s economic reliance on foreign aid to the forefront of the debate. International loans and funding
are projected
to make up 15
percent of Tanzania’s 2014/15
budget and there
are calls for the
government to
concentrate on
diversifying the
economy and reduce the potential for future fiscal
shocks should levels of foreign assistance further
decrease. Many are also hoping that the suspension
may force the Tanzanian government to address
the corruption issue, particularly in the economically
important energy sector.
Whatever the outcome of the current investigation,
Tanzania should be prepared for increased scrutiny
from international donors who will be looking for
indications that the country is combating corruption
and creating a stable economic environment. Domestically, it is likely that pressure on the government will
continue to rise as the general population looks for
assurances that the economy is prepared for unexpected shocks, and that crucial development projects
will not suffer as a result.
By Remi Kaupp, CC-BY-2.0 via Flickr
In the wake of an investigation
into reports of embezzlement
in Tanzania’s energy sector,
12 international donors have
suspended aid funding to the
country, threatening the future of a number of key
development projects.
In recent years Tanzania has discovered large natural gas
reserves, however the energy industry has been consistently plagued by accusations of corruption. Details
of the latest case emerged when opposition politicians
claimed that senior government officials had fraudulently authorized
payments of $122
million from state
coffers. With a
continuing investigation pending,
the UK, Germany,
Canada and
other development partners including the World Bank announced in
mid-October that they will not release almost 80 percent of a $558 million injection into Tanzania’s 2014/15
budget until a conclusive and credible outcome to the
incident is announced. The donor group has repeatedly
criticized the Tanzanian government for its failure to
tackle corruption in the past and threatened to withdraw financial assistance on a number of occasions,
although, significantly, this is the first time they have
acted on these warnings.
Tanzanian Prime Minister Mizengo Pinda has been quick
to criticize the aid suspension, claiming that it is the
wider Tanzanian population who will suffer the fall-out.
It is predicted that the freeze could damage the country’s agriculture, manufacturing and tourism sectors,
and prevent the implementation of critical new health
Regional Forecast
November 2014
Upcoming Key Events
ETHIOPIA
Egyptian-Ethiopian Tensions Ease
Progress towards the resolution of the
three year controversy surrounding Ethiopia’s Grand Renaissance Dam on the river
Nile is expected over the coming month
after delegates from both nations met in
the Ethiopian capital in October to sign
a swathe of bilateral trade agreements.
Under the new deals, talks regarding
Egypt’s share of the Nile’s water resources will continue as international experts
meet to assess the impact of river levels.
ETHIOPIA
UGANDA
KENYA
TANZANIA
UGANDA
New Anti-Homosexual Legislation
Expected
Ugandan ministers are currently believed to be debating the introduction
of new measures against homosexuality
within the country’s penal code, adding
further pressure on aid flows from international donors. Proposed legislation
is expected to conform to a simplified version of the annulled February
Anti-Homosexuality Act which in June
saw multilateral donors suspend up to
$118 million in financial assistance to
the country.
KENYA
Rising Insecurity in Oil-Rich Turkana
County
Fighting is set to increase across Kenya’s
north-western counties as military
operations expand efforts against
regional bandits who have terrorized
local communities and attacked Kenyan
police patrols across the course of
October. An impending offensive was
signaled on November 5 when the
Kenyan military sealed the international
border with Uganda, preventing the
escape of assailants in areas of Baringo
and Turkana.
TANZANIA
Gas Contracts Face Further Scrutiny
Measures to promote greater transparency within Tanzania’s gas
exploration licensing regime are set to return to the political agenda, following the arrest of James Andelile, Director General of the
state-owned energy agency The Tanzania Petroleum Development
Corp (TPDC) on November 3. The charges against Andelile relate to
allegations that the RPDC deliberately withheld the terms of production sharing contracts with the parliamentary committee on public
accounts in October.
Editor: James Borrelli
triplecanopy.com
[email protected]
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