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Africa
Members of the armed wing of Nelson Mandela's African National Congress line up waiting to vote in a military base north of Pretoria, on April 26, 1994.
Thirty years ago this weekend, South Africa ushered in its first democratic government.
On April 27, 1994, Black South Africans went to the polls, marking an end to years of white minority rule and the institutionalized racial segregation known as apartheid.
Freedom Day, as that day is commemorated, gave rise to South Africa’s first Black president, Nelson Mandela. The internal protests and violence over apartheid, as well as international sanctions, were relegated to the annals of history, ushering in a new era of promise for racial equality and prosperity.
But three decades later, the “rainbow nation” still faces many challenges, with racial equality and economic development remaining out of reach.
The country struggles with some of the highest inequality levels of any nation worldwide, says Ziyanda Stuurman, a senior analyst with Eurasia Group. “Many young people, in particular, are unemployed and feel despondent about finding work,” she says.
Three main factors have led to persistent inequality. First, South Africa’s unemployment rate is a whopping 32% – the highest globally. Those with secure jobs tend to be non-unionized and, as a result, see lower earnings. And, finally, workers who do well tend to make very high salaries compared to the lower-wage earners, bolstering the poverty gap.
“Due to a lack of economic opportunities and financial inclusion for the majority of Black South Africans,” says Stuurman, “many have not been able to make the most of the expanded political freedoms and opportunities in democratic-era South Africa.”
Since 1994, Mandela’s African National Congress party has been at the helm, but the lack of economic growth and rising inequality may be driving a change of heart among the electorate.
Next month, on May 29, South Africa heads to the polls again for its seventh general election since the end of apartheid. For the first time, polls suggest that the ANC may fail to win 50% of the national vote – which could mean tricky coalition talks or even its exit from power.
Stay tuned to GZERO. We’ll talk more with Stuurman in the coming weeks to gain insights about South Africa’s big election.Hard Numbers: Russia shoots down space resolution, US economy sputters, Nigerian prisoners make slippery escape, Ecuador gets lifeline
A Russian Soyuz rocket is carried to the launching pad at Russia's Baikonur cosmodrome on the territory of the former Soviet Kazakhstan on December 18.
13: A UN Security Council resolution reaffirming a long-standing prohibition on arms races in outer space got 13 votes in favor this week, but it was shot down by a single veto from UNSC permanent member Russia. Moscow says it wasn’t necessary to support a resolution that merely reaffirmed a 1967 treaty that Russia is already part of, but the US ambassador to the UN asked, “What could you possibly be hiding?” In recent months, the US has said it believes Russia is developing a new space-based, anti-satellite weapon.
1.6: The US economy expanded by just 1.6% in the first quarter of the year, lagging analyst forecasts by nearly a full percentage point, as consumer spending slowed. Normally that would create momentum for the Fed to cut interest rates to spur growth, but there’s no joy there either: Core inflation (which excludes food and energy) rose 3.7%, higher than economists expectations, limiting the scope for any near-term rate cuts.
118: Authorities in the Nigerian capital of Abuja are on high alert after a rainstorm destroyed a fence at a nearby penitentiary, allowing as many as 118 inmates to escape. A prison service spokesperson blamed “colonial era” facilities. Weak security and run-down buildings contribute to frequent prison-breaks in the West African nation.
4 billion: After months of talks, Ecuador and the IMF agreed to a $4 billion loan agreement meant to help stabilize the small Andean country’s finances as it grapples with a vicious cycle of economic hardship, rising poverty, and skyrocketing homicides. Just days earlier, Ecuadorians had voted yes in a referendum to boost the government’s ability to crack down on drug violence.Women and children wait for food distribution from the United Nations World Food Programme in Thonyor, Leer state, South Sudan, back in 2017.
Even as three-quarters of South Sudan’s people face starvation, a squabble between the government and the UN over import taxes is leaving vital aid trucks stuck at the border.
The background: South Sudan’s trade ministry ordered this week that all goods trucks entering the East African country must pay a $300 tax. The measure was meant to ensure that the government got its share of revenue from imports that are often underbilled or misrepresented. There was supposed to be a carveout for UN aid vehicles, but if so, officials at the Ugandan border didn’t get the memo – at least not yet.
The bigger background: South Sudan is one of the world’s newest countries – and one of its poorest. After coming into existence in 2011 following years of war with the Sudanese government, it fell into its own civil war, which killed or displaced hundreds of thousands of people.
The legacy of that conflict – along with frequent natural disasters – persists: Seven million of the country’s 12 million people are facing hunger in the coming months. The harrowing civil war in Sudan, which just entered its second year, has exacerbated things, driving an estimated 500,000 people across the border into South Sudan, straining the country’s resources further.
It’s World Book Day! We’re big readers here at GZERO, and we suspect you might be as well. Alas, literature just doesn’t have the caché it once did, but in some ways we are living in a golden age of literacy. At no point ever in human history have so many people been able to read and write.
Some 87% of all people above age 15 were able to read as of 2022, up from 67% as recently as 1979. That’s a big bump, but wind the clock back a bit more to see just how far we’ve come. In 1820, the World Economic Forum estimates that just 12% of the world’s adults could read and write.
Have a look at recent progress in our chart, and don’t forget to crack open that book you’ve been meaning to get to today!
British Prime Minister Rishi Sunak speaks during a press conference at Downing Street in London, Britain, April 22, 2024.
On Monday, Britain's parliament voted to put asylum seekers on one-way flights to Rwanda after Prime Minister Rishi Sunak announced that the UK would be ready to begin deporting asylum-seekers to Rwanda within the next few months.
Sunak has vowed to put a stop to the some 30,000 refugees who entered the UK by crossing the English Channel last year. The idea to send migrants to Rwanda was first introduced by former Prime Minister Boris Johnson in 2022. Under the plan, regardless of a refugee’s country of origin, they will be shipped to Rwanda and forced to submit their asylum applications there instead of in the UK.
The legislation is a response to a UK Supreme Court ruling that deemed such deportations a violation of international law because of Rwanda’s poor human rights record and because refugees would be at risk of being returned from Rwanda to their home countries, where they could face harm.
The plan is being criticized as a highly expensive gimmick for Sunak, who is facing significant political pressure as his party risks defeat in the upcoming general elections. The UK has already transferred $178 million to Rwanda although no refugees have been sent so far. He remains committed to the plan, asserting that preparations, including chartered jets and an airfield on standby, are complete for the flights expected to start in 10 to 12 weeks. However, UN rights experts have cautioned that airlines participating could face legal repercussions for complicity in violating international law.
A Japan Maritime Self-Defense Force ship searching for two MSDF helicopters in waters east of Torishima Island in the Izu Island chain in the Pacific after they crashed.
2: Two Japanese navy helicopters crashed over the weekend during nighttime training in the Pacific Ocean south of Tokyo, leaving one dead and seven missing. Officials believe it’s “highly likely” that the two choppers collided. The US pledged its support after the crash, offering to help with the search and rescue. Japan in recent years has boosted defense spending and strengthened military cooperation with the US amid concerns over China’s ambitions in the region.
800,000: Top UN officials on Friday warned that Sudan’s civil war was placing 800,000 people in the city of El Fasher in “extreme and immediate danger.” Fighting there could “unleash bloody intercommunal strife throughout Darfur,” says UN political affairs chief Rosemary DiCarlo. The war in Sudan, which just entered its second year, has displaced eight million people and left 25 million in desperate need of humanitarian assistance.
50: The US on Thursday restarted deportation flights to Haiti, which has been consumed by deadly gang violence, sending about 50 Haitians back to the Caribbean nation. The move was fervently decried by rights groups and faced pushback from some Democratic lawmakers in Washington. President Joe Biden has felt pressure to take a stronger approach to illegal immigration as Republicans zero in on the issue of border security amid an election year.
14 million: Tens of thousands of people in the Canary Islands took to the streets on Saturday to protest against mass tourism, which they say is putting too much strain on the Spanish archipelago and driving up housing costs while depleting resources. Last year, nearly 14 million people visited the Canary Islands, which is home to 2.2 million people. The protesters called for authorities to limit the number of visitors and place more restrictions on property purchases by foreigners, among other steps.
There’s a word frequently used at global convenings like the World Bank Group’s Spring Meetings held this week in Washington, D.C.—multistakeholder. It refers to an approach to problem solving that involves input from a wide range of players—governments, civil society, private sector corporations and investors.
It will take a multistakeholder approach to bring an ambitious new project announced Wednesday to fruition, an initiative to provide electricity to 300 million people in Africa by 2030.
Of the world’s nearly 800 million people living without power, an estimated 570 million are in Sub-Saharan Africa, according to the World Bank. The organization is partnering with the African Development Bank and its own International Development Association to provide up to $30 billion in funding, but is also banking on private sector investment to help make this plan a reality.
At the meetings this week, GZERO’s Tony Maciulis spoke to Lucy Heintz, Head of Energy Infrastructure at Actis Energy Fund, a global investment company focused on sustainability. Heintz expressed optimism in the announcement and explained the reasons why it could be attractive to investors.
“This is a great ambition and it's a huge plan,” Heintz said. “If it's met on the other side by a real intent to do business by government, wherever those governments may be, in those countries where energy access is still lacking, then I think you can start to see the pieces fall into place.”
Heintz explained there are already tools in place that mitigate risk for cross-border private investors, such as the Multilateral Investment Guarantee Agency (MIGA), a World Bank organization that provides insurance for noncommercial political and economic risk.
Success stories already exist globally, Heintz explained, with India being a prime example.
“India has put in place the right legislative frameworks, the right regulation,” she said. “It's also invested in the enabling environment. So, there's a very successful transmission grid investment program, which is led by the government, but then brings in private sector once those projects are de-risked.”
As for concerns about carbon emissions and environmental risk from expanding electricity generation, Heintz says there is a greater danger in not bringing more people to power.
“Reliable electricity supply is fundamental if you want to have any ability to mitigate the risks of climate change, whether it's refrigeration, cooling, the ability to earn a livelihood, it's fundamental,” she said. “I think that's the most important thing to have in mind.”
For more of our 2024 IMF/World Bank Spring Meetings coverage, visit Global Stage.
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