East Africa

Details: East Africa; 21 July 2024; 203

Ugandan charge d'affaires denies accusations, asserts Kampala's commitment to regional stability cooperation.

The Congo's Foreign Ministry summoned Uganda's charge d'affaires, Matata Twaha, following a UN report that alleged Ugandan support for the March 23 Movement (M23) rebel group.

The report, released earlier this month, alleges that the Ugandan military is supporting the M23 -- a group active in eastern Congo that is linked to Rwanda. It said Rwandan forces have been operating alongside M23 rebels, complicating security in the region.

Deputy Foreign Minister Gracia Yamba Kazadi summoned Twaha on Friday to discuss the allegations.

Twaha denied the allegations and reiterated Uganda's commitment to regional stability and cooperation with the Congo government.

Earlier in March, the Congo recalled Rwanda's ambassador for attacks on its troops, accusing Rwanda of supporting the M23 rebels in the eastern regions of Tchanzu and Runyonyi.

Renewed M23 attacks since November 2021 have displaced thousands and heightened tensions between Rwanda and the Congo.

The Congo accuses Rwanda of trying to exploit its mineral-rich territory and of supporting the M23, a charge Rwanda denies.

The M23 is made up of Tutsis, the tribe of Rwandan President Paul Kagame. By Yasin Gungor and Ahmet Emin Donmez Anadolu Agency

Details: East Africa; 21 July 2024; 220

Three Kenyan banks have exited the government’s lucrative $500 million monthly oil import deal with two Gulf states, amid rising competition for the issuance of letters of credit (LCs) to the selected local importers.

The agreement, which involves the extension of the credit period for the importation of petroleum products from 30 days to 180 days, was mid-wifed by the Kenyan government in partnership with the governments of the United Arab Emirates (UAE) and Saudi Arabia in March 2023 to help ease dollar shortage in the economy and stabilise the foreign exchange market.

Latest disclosures by the Energy and Petroleum Regulatory Authority (Epra) shows NCBA Group Plc, Absa Bank Kenya Plc, and Co-operative Bank have exited the deal, paving the way for new entrants Equity Group, United Bank of Africa, Diamond Trust Bank, I&M Bank and Pakistan’s MCB.

Sources from the banking industry say the selection of the lenders under the oil deal was not an automatic guarantee for business and, as a result, some of them could not cope with the intense competition for business from the four local oil importers: Gulf Energy, Galana Energies Ltd, Asharami Energy and One Petroleum Ltd.

To clarify, just like the Open Tender System (OTS), a bank has a better chance if their client is an importer,” a source said.

“There is no guarantee of business if you participate ... you still have to win business from importers.”

An LC is proof of commitment that a bank issues on behalf of an importer, which offers comfort to the supplier of goods.

KCB Bank disclosed in November 2023 that it had cumulatively guaranteed fuel import purchases worth $3.37 billion since the start of the government-to-government deal, revealing its might in supporting the government-backed deal with Saudi Aramco, Abu Dhabi National Oil Corporation and Emirates National Oil Company, which started in April 2023.

KCB Group Chief Executive Officer Paul Russo said on July 16 that the group had built expertise in oil and gas, established a strong trade finance segment and developed a strong relationship with international financial institutions to boost its international trade business in the oil sector.

Read: How KCB reclaimed position of East Africa’s most profitable bank

“Three teams are important for the success of this business: Oil and gas, trade finance and financial institutions.

“Oil and gas build relationships, trade finance structure products while financial institutions ensure you have limits with counterparties to fulfil client commitments,” Mr Russo said in an interview.

NCBA and Co-operative banks were not available for comment as their managers did not respond to our calls and text messages.

The government in March 2023 picked a consortium of five local banks to issue LCs of up to $4.8 billion for fuel to be imported on credit from the UAE over nine months by the oil marketers.

KCB, NCBA, Absa Bank Kenya, Stanbic Bank, Co-operative Bank made the list, alongside Africa Export-Import Bank (Afreximbank).
The importation of petroleum through the government-to-government arrangement is one of the key measures that Kenya implemented in early 2023 to avoid an economic meltdown due to money supply constraints that existed then, in particular, dollar liquidity constraints.

The scheme is aimed at easing forex pressures by eliminating the buying of fuel, the country’s largest import commodity, in the spot market by postponing the demand for dollars.

Prior to the oil deal, the oil marketing companies’ demand for foreign currency to meet their import bills under the OTS stood at $500 million every month.

The nine-month scheme expired in December 2023 but was extended by 12 more months to December this year. By James Anyanzwa, The East African

Details: East Africa; 20 July 2024; 193

The Sudan People’s Liberation Movement in Opposition (SPLM-IO) in Eastern Equatoria State has accused Governor Louis Lobong of delaying the opening of State Parliament to frustrate the opposition and give himself time to loot without accountability.

Their accusations include the unequal distribution of vehicles and other resources, and the opaque use of 1.5 million dollars a loan from the South Sudan Central Bank for the repair and the release of 16 vehicles.

SPLM-IO said in a press that Governor Lojore favored his SPLM party’s wing of the Cabinet, while neglecting the others in the allocation of government vehicles and other resources.

The statement was issued at the SPLM-IO headquarters in Torit on Thursday.

The Eastern Equatoria State SPLM-IO chairperson, also the Deputy Governor, Mary Alphonse Lodira, said delaying the reopening of Parliament was a strategy to exploit the State resources without accountability.

Lodira said most Cabinets members from other political parties had no vehicles for running their ministries.

She said the delay, under the pretext of no money to expedite the renovation of Parliament that has now taken a year, was unacceptable, adding that the Governor was constantly on the move within and outside the State, hardly ever spending time at the headquarters.

Lodira wondered why vehicles were distributed selectively yet several members of the SPLM-IO were chairpersons of the independent commissions.

Charles Odwar, the Speaker of the Assembly, and a member of SPLM, refuted the accusations, saying the delay had no connection with State leadership.

He said that the four vehicles allocated to the Assembly were distributed equally to the party representatives.

“They know 100 per cent that the Parliament is composed of all parties. The delay in the opening is not the problem of the State leadership under SPLM. UNMISS contracted Ark for Humanity to renovate Parliament from December last year and was supposed to finish in February, but that did not happen,” he told Radio Tamazuj.

“UNMISS have not handed over to the leadership of Parliament. It is not our intention as SPLM to close the House,” Odwar added

The Eastern Equatoria SPLM and the State government were yet to comment on the accusations.

South Sudan is currently governed by a transitional government created after the 2018 peace agreement between President Salva Kiir, First Vice President and SPLM-IO leader Riek Machar and other political figures.

The country is scheduled to hold general elections in December this year at the conclusion of the transitional period, but little preparations are in place. By Choi Mawel, Tower Post

Details: East Africa; 21 July 2024; 192

This devastating event demonstrates the crucial need for safe and legal pathways for migration, said Gregoire Goodstein, the head of the IOM in Haiti. At least 40 migrants have died and several others were injured after a boat they were travelling in caught fire off northern Haiti, a UN spokesman said on Friday, quoting the International Organization for Migration (IOM).

“Two days ago, according to the Haitian National Office for Migration, the boat, carrying over 80 people, departed from Labadee en route to the Turks and Caicos Islands, a 250-kilometer journey,” said Farhan Haq, the deputy spokesman for UN Secretary-General Antonio Guterres, at a daily briefing.

At least 40 migrants have died, and several others were injured after their boat caught fire off Cap Haïtien in northern Haiti, he said. Forty-one surviving migrants were rescued by the Haitian Coast Guard and are currently receiving medical care, food, water, and psychosocial support provided by the IOM, in support of the national authorities, said the spokesman. Eleven migrants were taken to the nearest hospital for treatment, including burns, he added.

This devastating event demonstrates the crucial need for safe and legal pathways for migration, said Gregoire Goodstein, the head of the IOM in Haiti. According to the IOM, more than 86,000 migrants have been forcibly returned to Haiti by neighbouring countries this year. By Xinhua

Details: East Africa; 20 July 2024; 205

David Lammy MP, the UK Foreign Secretary, addressed the House of Commons this week, stating that “Hamas cannot remain in charge of Gaza. But equally, the Israel Defence Forces cannot remain situated in Gaza.”

During his remarks, Lammy spoke of concern for the safety of hostages held in Gaza, detailing ongoing conversations with Israeli Prime Minister Netanyahu and meetings with UK hostage families.

“They remain paramount in the Government’s mind as we head, I hope, towards the ceasefire that we all want,” he said.

The Foreign Secretary criticised the inadequate aid reaching Gaza, noting that “Seventy trucks a day, when we know there should be 500, is not enough.” He highlighted the UK’s allocation of an extra £5.5 million to support UK-Med in Gaza amidst the dire situation of bombed medical facilities and rising disease, including polio.

“The whole House recognises the word ‘flood,’ and we were told in April that Gaza would be flooded with aid. Seventy trucks is nowhere near enough. As a consequence, we hear stories of disease—now including polio—setting in, which is horrific and troubles us all deeply,” Lammy stated.

Lammy endorsed the Biden plan, which he discussed with G7 Foreign Ministers and Arab partners, expressing hope for its adoption by the end of the month. He stressed the need for a new security paradigm in Gaza, suggesting involvement from Arab partners to ensure Israel’s security while eliminating Hamas’s control.

“There is a sticking point with prisoner release as well as with hostage release: what happens on the day after? Israel’s security is paramount. Hamas cannot remain in charge of Gaza. But equally, the Israel Defence Forces cannot remain situated in Gaza. There has to be a new paradigm. It will involve, I suspect, Arab partners and others who can give security guarantees to Israel. It is a complicated picture. We have to work at pace on what comes afterwards,” he explained.

Addressing the West Bank situation, Lammy described his meeting with the new Prime Minister to discuss financial withdrawals and the illegal expansion violating international law.

“It was important for me to meet the new Prime Minister on the west bank to discuss the finances that have been withdrawn and the febrile situation we saw against a backdrop of an unbelievable expansion, which breaches international law that the House stands by. I press the Israeli Prime Minister on that issue greatly. We are of course looking closely at those issues,” he said.

Lammy also commented on Iran’s role in the region, “On the role that Iran plays in sponsoring Hamas, sponsoring Hezbollah and engaging in malign activity, we keep a close eye. I stand by what I said at the Dispatch Box when I was Opposition spokesman on these matters, and I will work over the coming months to review the context of terrorist activity and state threats with the Home Secretary.” By George Allison, UKDJ

George Allison