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Uganda has joined the growing number of African countries turning to gold to support their currencies. 

The Ugandan central bank has announced a domestic gold-buying program to buy gold directly from local artisanal miners.

According to a statement on the Bank of Uganda’s website, “The gold purchase program will help in accumulating foreign currency reserves and address the associated risks in the international financial markets."

In an interview, with the Monitor, Bank of Uganda research director Dr. Adam Mugume said, “We are in the process of diversifying international reserves to include monetary gold.”

Uganda has struggled to maintain its foreign exchange reserves due to rising external debt payments and difficulties buying foreign currency such as dollars due to its own currency’s devaluation. 

According to The East African, “Foreign exchange reserves stood at about $3.5 billion as of April 30, equivalent to 3.2 months of import cover, down from 3.4 months a year earlier.”

Mugume said higher interest rates have created additional restrictions on flows of capital into emerging market countries.

The central bank’s statement also said buying gold from small-scale local producers would “be supporting the livelihoods of artisanal and small-scale miners, and this has positive spill-over effects on other sectors of the economy.”

The statement did not elaborate on the “risks in the international financial markets,” but Ugandan officials likely have the same concern raised by leaders in other countries – the risk of holding dollars.

Many countries have expressed worry about the U.S. and Western powers using gold and dollar reserves as a foreign policy weapon.

According to a World Gold Council survey in 2023, a “substantial share” of central banks expressed concern about potential sanctions after the U.S. and other Western countries froze almost half of Russia’s $650 billion gold and forex reserves in the wake of its invasion of Ukraine.

There are also concerns about the fiscal situation in the U.S. with rapidly rising levels of government debt.

Aware of these risks, many countries in Africa and elsewhere are looking for ways to diversify their reserves and minimize dependence on the dollar. Gold is the perfect solution as it carries no counterparty risk and it is recognized as money worldwide.

Other African Countries Looking to Gold

Uganda joins a growing number of African countries turning to gold. 

Nigeria has also launched a domestic gold-buying plan to bolster its reserves. In addition to buying locally sourced gold, the Nigerian central bank has announced plans to bring its existing gold reserves back into the country “to mitigate risks associated with the weakening U.S. economy.”

“Economic indicators such as rising inflation, escalating debt levels, and geopolitical tensions have raised apprehensions among Nigerian policymakers about the stability of the U.S. financial system.” 

Meanwhile, a presidential candidate in Ghana recently said he would back the country’s currency with gold if he wins the election.

“Ultimately, my goal is that we are going to back our currency with gold and that is where I want us to go, increasingly backing our currency with gold,” Dr Mahamadu Bawumia said.

He went on to say a gold-backed currency would “keep a lot of stability in the exchange market.”

“Right now, we don’t have an anchor to hold the currency, but if we back it with gold, it will be very stable, because its value ultimately will be reflected by the value of gold, which is very stable.”

Ghana recently overtook South Africa to become Africa’s biggest gold producer. 

According to a report by Business Insider Africa, Ghana now requires big gold miners in that country to sell 20 percent of their refined gold to the country’s central bank.

Zimbabwe has already created its own gold-backed currency. The ZiG (Zimbabwe gold; ZiG; ZWG) replaced the Zimbabwean dollar (RTGS; 1980-2008: ZWL). The currency is a “structured currency” backed primarily by gold but also by other forex reserves including U.S. dollars (USD).

The growing movement toward gold in Africa underscores an important truth: while fiat currencies come and go, gold has remained a trusted money for over 5,000 years. By Mike Maharrey, Money Metals

Kenya Airports Authority (KAA) said that the Cabinet approved the JKIA Medium Term Investment Plan, which includes extensive upgrades to the passenger terminal building, runway, taxiway, and apron KAA explained that the needed upgrades at JKIA cannot be supported using public funds due to financial constraints KAA said they received a proposal for a strategic partnership with Adani Airport Holdings Limited concerning the JKIA 

The Kenya Airports Authority (KAA) has provided insights into the strategic partnership with Adani Airport Holdings Limited concerning the Jomo Kenyatta International Airport (JKIA).Tuko

People across Africa are demanding better governance and are increasingly willing to take to the streets to get it, writes Abubakar Usman.

Scenes of people marching through the streets of sub-Saharan Africa, passionately demanding change or jubilantly celebrating the overthrow of unpopular regimes, have become a common feature of the region’s evolving political landscape. From Conakry to Bamako, Ouagadougou to Khartoum, Niamey to Libreville, and most recently in Dakar and Nairobi, these powerful images of public mobilisation and protest illustrate a new era of political activism and transformation across the continent.

These dramatic displays of public dissent reflect a broader trend of gradual political change reshaping many countries across Sub-Saharan Africa. Between 2020 and 2023, there have been 14 military coup attempts, with 9 resulting in military takeovers in countries such as Mali, Guinea, Sudan, Burkina Faso, Niger, and Gabon. As the decade progresses, the likelihood of more military coups remains high.

Simultaneously, another significant but less highlighted form of political change is the wave of mass protests driven by public dissatisfaction with governance and political elites.

In 2021, Chadians protested the appointment of Idris Deby’s son as President and leader of the transition. Similarly, students in the Democratic Republic of Congo engaged in mass protests due to the government’s indifference towards striking teachers. Protests also erupted in Cameroon, particularly in the Anglophone region, as well as in Sudan and Ethiopia. According to data from Maplecroft, 36 countries experienced protests, demonstrations, and riots in 2023, a six-year high.

Kenya and Nigeria

The latest protest to capture the attention of external observers is happening in Kenya and is rapidly becoming known as “The Generation-Z Protest.” This name reflects the demographic characteristics of the protesters, who are young people leveraging social media platforms to mobilise and coordinate their efforts. The primary reasons cited for these protests include the finance bill passed by the government in 2024, the high cost of living, governance issues, and corruption.

This Kenyan protest is crucial to understanding the increasing wave of political change sweeping across sub-Saharan Africa. The younger generation is increasingly dissatisfied and agitated with the ruling elites in their respective countries. This discontent has partly enabled military elites in countries experiencing recent coups to exploit the dissatisfaction of the youth and seize power, knowing that the masses are likely to be at least indifferent to their takeover, if not openly supportive. The reactions of young people in Niger, Burkina Faso, Guinea, and Gabon after their coups were largely in favour of change.

In Nigeria, the climate is similarly tense, with protests growing louder since President Bola Ahmad Tinubu assumed power. Once again, young people are at the forefront of these protests, which share common themes with those in Kenya, including the rising cost of living, governance issues, and corruption amid widespread poverty affecting most of the population.

With Kenya and Nigeria, two regional leaders in East and West Africa, experiencing significant political change, it is likely that more countries across the continent will follow their lead.

Several factors are driving these political shifts. Although Africa was not as severely affected by Covid-19 in terms of infections and casualties compared to other parts of the world, the continent has been profoundly impacted by the pandemic’s repercussions. According to ReliefWeb, the pandemic led to job losses, reduced income, and fewer casual labour opportunities, which have eroded people’s ability to purchase staple food stuffs. Violent conflicts, corruption, and low public and private investment in agriculture also contribute to food insecurity in sub-Saharan Africa.

Sub-Saharan African countries dominate the lowest rankings in terms of food security since the pandemic ended. According to The Economist’s Global Food Security Index, Sub-Saharan Africa is the only region in the world that failed to perform above the global average in food security.

Another significant reason for the political changes sweeping across Sub-Saharan Africa is the skyrocketing cost of living, largely driven by the ongoing Russia-Ukraine war. This conflict, combined with the pandemic, has exacerbated food insecurity and caused energy prices to rise due to sanctions on Russian exports and Ukraine’s reduced capacity to produce grain. According to the UN, many sub-Saharan African countries heavily rely on imported wheat from Russia and Ukraine, with 15 countries importing over 50 per cent and six of them importing over 70 per cent of their wheat from these two nations.

With the rising cost of living, food insecurity, and various security challenges, the masses in many of these countries appear unwilling to tolerate further hardships.

It is evident that the current wave of political change sweeping through Sub-Saharan Africa is moving in two opposing directions. In countries where military elites are deeply entrenched in the political system, this has led to either increased power consolidation or violent conflict, as seen in Chad and Sudan, or military coups, as in Burkina Faso, Gabon, Guinea, Mali, and Niger. However, the unfolding situation in Kenya and the recent elections in Senegal suggest that this political change can also lead to more positive outcomes, such as democratic consolidation, improved governance, and better democratic dividends.

In countries like Nigeria, which are on the brink of widespread protests, the ruling elites must carefully choose the direction they want this wave of change to move toward. If handled well, the situation could result in strengthened democracy and elevated governance. By Abubakar Usman, LSE

By BBC

Rescue teams have so far retrieved the bodies of 229 people killed in two landslides in southern Ethiopia, a local official has told the BBC.

The landslides occurred on Sunday evening and Monday morning, after heavy rains in a remote mountainous area of the Gofa zone.

The local authority said the search for survivors was “continuing vigorously” but that the “death toll could yet increase”.

Footage showed hundreds of people gathered at the scene and others digging in the dirt in search of people trapped underneath.

In the background, a hillside can be seen partially collapsed and a large patch of red earth has been exposed.

The chief administrator of Goza zone, Dagmawi Ayele, told the BBC that the dead included both adults and children, while 10 people rescued alive were receiving treatment in hospital.

Heavy rains caused a landslide on Sunday, and as police officers, teachers and residents from nearby villages frantically continued with search-and-rescue operations on Monday, a second landslide occurred, burying them too under the mud, Mr Dagmawi said.

“We are still digging,” he told the BBC.

Markos Melese, the Gofa disaster management head, said that 229 bodies had so far been recovered.

Gofa is part of the state known as Southern Ethiopia, located around 320km (199 miles) south-west of the capital, Addis Ababa.

Southern Ethiopia is among the areas of the country that have been hit by particularly heavy rain and flooding in recent months, according to the UN’s Office for the Co-ordination of Humanitarian Affairs (Ocha).

But instances of landslides and floods go back further. In May 2016, at least 50 people were killed in floods and landslides following heavy rain across the south of the country.

Many factors contribute to flooding, but a warming atmosphere caused by climate change makes extreme rainfall more likely.

The world has already warmed by about 1.2C since the industrial era began and temperatures will keep rising unless governments around the world make steep cuts to emissions. By BBC

Valarie Waswa (right) during one of the development sessions in Switzerland. [Courtesy]

Kenya’s Valarie Neema Waswa is among the inaugural cohort of the  Generation Connect Young Leadership Programme (GCYLP) fellows who completed their development week in Switzerland.

Ms Waswa is among the 30 initial fellows who were selected by a global jury from a pool of 5,249 applicants from over 200 countries worldwide. 

She is an upcoming lawyer who is passionate about women and youth inclusion in governance and decision-making processes.

Ms Waswa has worked with different organisations- from youth activists to youth envoys and woke advocates in causes that seek to promote peace and socio-economic development of women and youth.

 The GCYLP, an initiative launched by the International Telecommunication Union (ITU) in partnership with Huawei, supports 30 fellows each year for a period of three years.

 Aged 18-28, the fellows receive mentorship and financial support in their projects to use digital technology to drive community development through the course of one year.

Director of the ITU Telecommunication Development Bureau Dr Cosmas Luckyson Zavazava said the week-long activities include leadership fireside chats, an intergenerational panel discussion, and visits to Geneva University, Palais de Nations, as well as Huawei Switzerland in Zurich.

"Seizing opportunities and creating new ones, being collaborative and resilient, as well as adopting a multi-disciplinary approach for a multi-sectoral world in which we find ourselves, will go a long way in helping you succeed and in impact people's lives around the world," said Dr Zavazava. 

In addition to the initial development week, Zavazava said the program also provides online mentoring sessions, virtual ‘fireside chats’ with industry experts, group projects with other participants, and other online programs.

She is an upcoming lawyer who is passionate about women and youth inclusion in governance and decision-making processes.

His sentiments were echoed by Selina Wen, Chief Representative to the EU Institutions and Vice President of Public Affairs for Europe at Huawei, who said young leaders have played and will continue to play an important role in the digital era, at a time when the enabling power of technology should be further harnessed to address the most pressing social challenges.

 "The projects you have presented are exactly what the real world is calling for," she said.

 The fellows' project ideas cut across fields from inclusive healthcare, and innovative digital skills training to efficient energy storage and circular economy. 

The program was announced in November 2023 and applications for the inaugural cohort opened in February.

Over the next two years, two more groups of nearly 100 young visionaries from around the world, will embark on a similar journey. By Patrick Vidija, The Standard

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