Latest news with #AfricanEconomicOutlook
Business Insider
03-07-2025
- Business
- Business Insider
Kenya loses $1.5 billion annually to corruption, says AfDB
Kenya is losing up to Sh194 billion annually due to corruption, illicit financial flows, and inefficient public spending, according to a new report by the African Development Bank (AfDB). Kenya is losing up to Sh194 billion annually due to corruption, illicit financial flows, and inefficient public spending, according to the African Development Bank report. Despite challenges, the AfDB projects Kenya's economy to grow by five percent in 2025, albeit with persistent inequality concerns. Public spending inefficiencies and tax waivers are causing significant financial drain, estimated at Sh650 billion per year. The African Economic Outlook Kenya Country Focus Report, launched in Nairobi, sheds light on how mismanagement, tax exemptions, and weak oversight mechanisms are eroding Kenya's revenue base and undermining its capacity to finance critical sectors of the economy. Public spending inefficiencies and tax waivers take a toll The report estimates that inefficiencies in public expenditure cost the country approximately Sh650 billion each year, roughly five per cent of its Gross Domestic Product (GDP). Meanwhile, losses from tax incentives and exemptions are pegged at Sh105 billion annually. These persistent financial leakages are deepening Kenya's debt crisis, with the government now allocating more funds to interest payments than to essential services such as education and healthcare. 'Corruption and illicit financial flows cost the East African nation as much as $1.5 billion (Sh193.6 billion) annually, funds that could transform health, education, and infrastructure development,' the report states. State capture and weak rule of law hindering progress The AfDB highlights state capture, where political elites shape legislation and enforcement for personal or political gain, as a major obstacle to governance reforms. This undermines the legal environment, discourages both domestic and foreign investment, and creates a climate of uncertainty. 'Investors fear biased rulings, delays, and lack of transparency, increasing operational risks and deterring investment,' the report notes. 'Ultimately, the rule of law, upheld by robust law enforcement and an independent judiciary, remains the foundation for sustained economic growth, social equity, and public trust in governance.' While the AfDB estimates corruption-related losses at $1.5 billion annually, Kenya's own Ethics and Anti-Corruption Commission (EACC) places the figure much higher—at Sh608 billion or 7.8 per cent of GDP. Kenya's performance on Transparency International's Corruption Perceptions Index also remains weak. The 2024 index ranks the country 121st out of 180 countries, with a score of 32 out of 100, just one point higher than the previous year, and still below both the African (33) and global (43) averages. A five-year review shows minimal improvement, and historical data since 1996 reveals a persistent struggle with corruption, with Kenya's best ranking at 52 in 1996 and the worst at 154 in 2010. AfDB projects growth but warns of inequality Despite these challenges, the AfDB maintains a cautiously optimistic outlook, forecasting Kenya's economy to grow by five per cent in 2025, buoyed by agriculture and services. However, growth is expected to slow slightly to 4.8 per cent in 2026. 'Rising poverty, high unemployment, and growing inequality indicate that Kenya's economic growth has not been fully inclusive,' the report warns. AfDB's projections are more optimistic than those from the World Bank and the International Monetary Fund, both of which expect Kenya's growth to slow to 4.8 per cent.
Time of India
11-06-2025
- Business
- Time of India
US shifts Africa security strategy amid global pivot
AP image Africa should take greater ownership of its own security challenges. That was the message recently communicated by General Michael Langley, head of US Africa Command (USAFRICOM). The unit is part of the US Department of Defense and is responsible for all defence operations and security cooperation on the African continent. The announcement comes as the United States rethinks its military strategy in Africa, signalling a significant shift in its approach to security on the continent. This adjustment aligns with a broader strategic pivot under the Trump administration, which is prioritising homeland security and a leaner, more lethal military force, while reducing the US military footprint overseas, including in Africa. But what could it mean for the continent? Africa's global relevance With its growing population and vast natural resources, Africa is strategically important to Europe and the United States. "Africa is a strategic partner with a large and growing youth population — projected to double by 2045 according to the African Economic Outlook," Adib Saani, a foreign policy and security analyst, told DW. "The continent is rich, holding vast mineral resources and strategic reserves like uranium that both Western and Eastern countries heavily rely on." The continent was also home to 11 of the world's 20 fastest-growing economies in 2024. "The US and others engage with Africa not just out of goodwill but because these resources are vital for running industries worldwide," Saani said. "This makes the relationship mutually beneficial — a win-win for Africa and the rest of the world." However, the Trump administration's defence strategy has shifted focus away from protecting the US from threats emanating from abroad, including countering terrorist organisations such as the so-called "Islamic State" (IS) militant group and al-Qaeda, which have expanded their presence and capabilities in Africa. 'Sharing the burden' of US-Africa security operations Previously, US military efforts in Africa combined defence, diplomacy and development. "America has been a close partner in countering violent extremism, especially in Eastern and West Africa," Saani explained. "We have relied heavily on US logistics, training and intelligence sharing to address these threats. In terms of human security, the US has also contributed through USAID and other programs that have helped lift many out of poverty." USAFRICOM head Langley said the military's priorities now focus on homeland protection, encouraging instead "burden sharing" with African partners. He said the goal is to build local military capacity to enable independent operations and reduce reliance on US forces. This shift was evident during the latest African Lion joint military exercise. The annual event is the largest military exercise on the continent and emphasises combined air, land and sea operations with more than 40 participating nations. The latest edition, in May, lacked the US-led efforts usually apparent and instead focused on collaboration and cooperation. What could reduced US involvement mean? Yet foreign policy analyst Adib Saani warned that a diminished US presence could create a power vacuum, emboldening militant networks and undermining years of counterterrorism efforts. "If the US withdraws its support, it would hit us hard. It could embolden terrorists to carry out more lethal and audacious attacks, knowing there is no major power backing our fight. This would also dampen the morale of our soldiers who face these threats daily, and place significant economic pressure on affected countries," he said. USAFRICOM currently deploys roughly 6,500 personnel across Africa and has invested hundreds of millions of dollars in security assistance. Without that, Saani worries that Africa will not be able to be fully independent in terms of security. "It will be difficult in terms of logistics and technology — we are simply not there yet. Security is a shared responsibility and works best when it involves multiple actors. In my opinion, Africa cannot do it alone." Russia, China step in to fill security vacuum African countries will need to look for other allies — both new and old, say experts. China has already launched extensive military training programs for African forces, replicating aspects of the US military model, while Russian mercenaries have established themselves as key security partners in North, West and Central Africa. "China's approach in the past has mainly been economic," Saani explained. The US, he pointed out, has primarily focused on military support, in addition to providing economic help. "The Russians have strong presence with both economic and military involvement. It feels like everyone is competing for attention. The clear message is that there's a need to diversify partnerships. We can't rely solely on the US; we may also need to engage more with the Russians and others. " Can Africa succeed alone? Some voices say the lack of US support could be a wake-up call for African countries, forcing them to consider their own resources and rise to the challenge. African nations must now take the opportunity to review their security resources, Saani said, and collaborate more closely. "Building up our defense industry is also critical. This means developing industrial capacity and enhancing the capabilities of our armed forces," he added. "We also need to tackle corruption to ensure that funds are not getting lost in people's pockets but are instead used to improve people's lives."
DW
11-06-2025
- Business
- DW
US shifts Africa security strategy amid global pivot – DW – 06/10/2025
The US military is urging African countries to be more responsible for their own security as the Trump administration focuses on domestic policies. Could the move fuel militant groups and undo counterterrorism progress? Africa should take greater ownership of its own security challenges. That was the message recently communicated by General Michael Langley, head of US Africa Command (USAFRICOM). The unit is part of the US Department of Defense and is responsible for all defense operations and security cooperation on the African continent. The announcement comes as the United States rethinks its military strategy in Africa, signaling a significant shift in its approach to security on the continent. This adjustment aligns with a broader strategic pivot under the Trump administration, which is prioritizing homeland security and a leaner, more lethal military force, while reducing the US military footprint overseas, including in Africa. But what could it mean for the continent? Africa's global relevance With its growing population and vast natural resources, Africa is strategically important to Europe and the United States. "Africa is a strategic partner with a large and growing youth population — projected to double by 2045 according to the African Economic Outlook," Adib Saani, a foreign policy and security analyst, told DW. "The continent is rich, holding vast mineral resources and strategic reserves like uranium that both Western and Eastern countries heavily rely on." The continent was also home to 11 of the world's 20 fastest-growing economies in 2024. "The US and others engage with Africa not just out of goodwill but because these resources are vital for running industries worldwide," Saani said. "This makes the relationship mutually beneficial — a win-win for Africa and the rest of the world." However, the Trump administration's defense strategy has shifted focus away from protecting the US from threats emanating from abroad, including countering terrorist organizations such as the so-called "Islamic State" (IS) militant group and al-Qaeda, which have expanded their presence and capabilities in Africa. How USAID cuts are fueling Africa's humanitarian crises To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 'Sharing the burden' of US-Africa security operations Previously, US military efforts in Africa combined defense, diplomacy and development. "America has been a close partner in countering violent extremism, especially in Eastern and West Africa," Saani explained. "We have relied heavily on US logistics, training and intelligence sharing to address these threats. In terms of human security, the US has also contributed through USAID and other programs that have helped lift many out of poverty." USAFRICOM head Langley said the military's priorities now focus on homeland protection, encouraging instead "burden sharing" with African partners. He said the goal is to build local military capacity to enable independent operations and reduce reliance on US forces. This shift was evident during the latest African Lion joint military exercise. The annual event is the largest military exercise on the continent and emphasizes combined air, land and sea operations with more than 40 participating nations. The latest edition, in May, lacked the US-led efforts usually apparent and instead focused on collaboration and cooperation. Historically, the US has played in a major role in security operations on the continent, including in Somalia Image: Senior Airman Kristin Savage/Combined Joint Task Force - Horn of Africa/AP Photo/picture alliance What could reduced US involvement mean? Yet foreign policy analyst Adib Saani warned that a diminished US presence could create a power vacuum, emboldening militant networks and undermining years of counterterrorism efforts. "If the US withdraws its support, it would hit us hard. It could embolden terrorists to carry out more lethal and audacious attacks, knowing there is no major power backing our fight. This would also dampen the morale of our soldiers who face these threats daily, and place significant economic pressure on affected countries," he said. USAFRICOM currently deploys roughly 6,500 personnel across Africa and has invested hundreds of millions of dollars in security assistance. Without that, Saani worries that Africa will not be able to be fully independent in terms of security. "It will be difficult in terms of logistics and technology — we are simply not there yet. Security is a shared responsibility and works best when it involves multiple actors. In my opinion, Africa cannot do it alone." Exploiting Africa in the hunt for raw materials To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Russia, China step in to fill security vacuum African countries will need to look for other allies — both new and old, say experts. China has already launched extensive military training programs for African forces, replicating aspects of the US military model, while Russian mercenaries have established themselves as key security partners in North, West and Central Africa. "China's approach in the past has mainly been economic," Saani explained. The US, he pointed out, has primarily focused on military support, in addition to providing economic help. "The Russians have strong presence with both economic and military involvement. It feels like everyone is competing for attention. The clear message is that there's a need to diversify partnerships. We can't rely solely on the US; we may also need to engage more with the Russians and others." Niger: US military operations across the Sahel are at risk To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Can Africa succeed alone? Some voices say the lack of US support could be a wake-up call for African countries, forcing them to consider their own resources and rise to the challenge. African nations must now take the opportunity to review their security resources, Saani said, and collaborate more closely. "Building up our defense industry is also critical. This means developing industrial capacity and enhancing the capabilities of our armed forces," he added. "We also need to tackle corruption to ensure that funds are not getting lost in people's pockets but are instead used to improve people's lives." Editor: Sarah Hucal
DW
11-06-2025
- Business
- DW
US military adjusts Africa security strategy – DW – 06/10/2025
The US military is urging African countries to be more responsible for their own security as the Trump administration focuses on domestic policies. Could the move fuel militant groups and undo counterterrorism progress? Africa should take greater ownership of its own security challenges. That was the message recently communicated by General Michael Langley, head of US Africa Command (USAFRICOM). The unit is part of the US Department of Defense and is responsible for all defense operations and security cooperation on the African continent. The announcement comes as the United States rethinks its military strategy in Africa, signaling a significant shift in its approach to security on the continent. This adjustment aligns with a broader strategic pivot under the Trump administration, which is prioritizing homeland security and a leaner, more lethal military force, while reducing the US military footprint overseas, including in Africa. But what could it mean for the continent? Africa's global relevance With its growing population and vast natural resources, Africa is strategically important to Europe and the United States. "Africa is a strategic partner with a large and growing youth population — projected to double by 2045 according to the African Economic Outlook," Adib Saani, a foreign policy and security analyst, told DW. "The continent is rich, holding vast mineral resources and strategic reserves like uranium that both Western and Eastern countries heavily rely on." The continent was also home to 11 of the world's 20 fastest-growing economies in 2024. "The US and others engage with Africa not just out of goodwill but because these resources are vital for running industries worldwide," Saani said. "This makes the relationship mutually beneficial — a win-win for Africa and the rest of the world." However, the Trump administration's defense strategy has shifted focus away from protecting the US from threats emanating from abroad, including countering terrorist organizations such as the so-called "Islamic State" (IS) militant group and al-Qaeda, which have expanded their presence and capabilities in Africa. How USAID cuts are fueling Africa's humanitarian crises To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 'Sharing the burden' of security operations Previously, US military efforts in Africa combined defense, diplomacy and development. "America has been a close partner in countering violent extremism, especially in Eastern and West Africa," Saani explained. "We have relied heavily on US logistics, training and intelligence sharing to address these threats. In terms of human security, the US has also contributed through USAID and other programs that have helped lift many out of poverty." USAFRICOM head Langley said the military's priorities now focus on homeland protection, encouraging instead "burden sharing" with African partners. He said the goal is to build local military capacity to enable independent operations and reduce reliance on US forces. This shift was evident during the latest African Lion joint military exercise. The annual event is the largest military exercise on the continent and emphasizes combined air, land and sea operations with more than 40 participating nations. The latest edition, in May, lacked the US-led efforts usually apparent and instead focused on collaboration and cooperation. Historically, the US has played in a major role in security operations on the continent, including in Somalia Image: Senior Airman Kristin Savage/Combined Joint Task Force - Horn of Africa/AP Photo/picture alliance What could reduced US involvement mean? Yet foreign policy analyst Adib Saani warned that a diminished US presence could create a power vacuum, emboldening militant networks and undermining years of counterterrorism efforts. "If the US withdraws its support, it would hit us hard. It could embolden terrorists to carry out more lethal and audacious attacks, knowing there is no major power backing our fight. This would also dampen the morale of our soldiers who face these threats daily, and place significant economic pressure on affected countries," he said. USAFRICOM currently deploys roughly 6,500 personnel across Africa and has invested hundreds of millions of dollars in security assistance. With that gone, Saani worries Africa will not be able to be fully independent when it comes to security. "It will be difficult in terms of logistics and technology — we are simply not there yet. Security is a shared responsibility and works best when it involves multiple actors. In my opinion, Africa cannot do it alone." Exploiting Africa in the hunt for raw materials To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Russia, China step in to fill security vacuum African countries will need to look for other allies — both new and old, say experts. China has already launched extensive military training programs for African forces, replicating aspects of the US military model, while Russian mercenaries have established themselves as key security partners in North, West and Central Africa. "China's approach in the past has mainly been economic," Saani explained. The US, he pointed out, has primarily focused on military support, in addition to providing economic help. "The Russians have strong presence with both economic and military involvement. It feels like everyone is competing for attention. The clear message is that there's a need to diversify partnerships. We can't rely solely on the US; we may also need to engage more with the Russians and others." Niger: US military operations across the Sahel are at risk To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Can Africa succeed alone? Some voices say the lack of US support could be a wake-up call for African countries, forcing them to consider their own resources and rise to the challenge. African nations must now take the opportunity to review their security resources, Saani said, and collaborate more closely. "Building up our defense industry is also critical. This means developing industrial capacity and enhancing the capabilities of our armed forces," he added. "We also need to tackle corruption to ensure that funds are not getting lost in people's pockets but are instead used to improve people's lives." Editor: Sarah Hucal
DW
10-06-2025
- Business
- DW
US military adjusts Africa strategy – DW – 06/10/2025
The US military is urging African countries to be more responsible for their security as the Trump administration focuses on domestic policies. But could the move fuel militant groups and undo counterterrorism progress? Africa should take greater ownership of its own security challenges. That was the message recently communicated by Gen. Michael Langley, head of US Africa Command (USAFRICOM). The unit is part of the US Department of Defense and is responsible for all Department of Defense operations and security cooperation on the African continent. The announcement comes as the United States rethinks its military strategy in Africa, signaling a significant shift in its approach to security on the continent. This adjustment aligns with a broader strategic pivot under the Trump administration, which is prioritizing homeland security and a leaner, more lethal military force, while reducing the US military footprint overseas, including in Africa. But could it mean for the continent? Africa's global relevance Africa is strategically important to European countries and the United States for its growing population and vast natural resources. "Africa is a strategic partner with a large and growing youth population — projected to double by 2045 according to the African Economic Outlook," Adib Saani, a foreign policy and security analyst told DW. "The continent is rich, holding vast mineral resources and strategic reserves like uranium that both Western and Eastern countries heavily rely on." The continent is also home to 11 of the world's 20 fastest-growing economies in 2024. "The US and others engage with Africa not just out of goodwill but because these resources are vital for running industries worldwide," Saani said. "This makes the relationship mutually beneficial — a win-win for Africa and the rest of the world." However, the Trump administration's defense strategy has shifted focus away from protecting the US from threats emanating from abroad, including countering terrorist organizations such as the "Islamic State" (IS) militant group and al-Qaeda, which have expanded their presence and capabilities in Africa. How USAID cuts are fueling Africa's humanitarian crises To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 'Sharing the burden' of security operations Previously, US military efforts in Africa combined defense, diplomacy, and development. "America has been a close partner in countering violent extremism, especially in Eastern and West Africa,' Saani explained. "We have relied heavily on US logistics, training, and intelligence sharing to address these threats. In terms of human security, the US hasalso contributed through USAID and other programs that have helped lift many out of poverty." US Marine Corps Gen. Michael Langley said the military's priorities now focus on homeland protection. He instead encouraged "burden sharing" with African partners. He said the goal is to build local military capacity to enable independent operations and reduce reliance on US forces. This shift was evident during the 25th African Lion joint military exercise. The annual event is the largest military exercise on the continent and emphasizes combined air, land and sea operations with more than 40 participating nations. It lacked the US-led efforts usually apparent and instead focused on collaboration and cooperation. Historically, the US has played in a major role in security operations on the continent, including in Somalia Image: Senior Airman Kristin Savage/Combined Joint Task Force - Horn of Africa/AP Photo/picture alliance What could reduced US involvement mean? Yet foreign policy analyst Adib Saani warns that a diminished US presence could create a power vacuum, emboldening militant networks and undermining years of counter-terrorism efforts. "If the US withdraws its support, it would hit us hard. It could embolden terrorists to carry out more lethal and audacious attacks, knowing there is no major power backing our fight. This would also dampen the morale of our soldiers who face these threats daily, and place significant economic pressure on affected countries." USAFRICOM currently deploys roughly 6,500 personnel across Africa and has invested hundreds of millions of dollars in security assistance. With that gone, Saani worries that Africa will not be able to be fully indipendent when it comes to security: "It will be difficult in terms of logistics and technology — we are simply not there yet. Security is a shared responsibility and works best when it involves multiple actors. In my opinion, Africa cannot do it alone." Exploiting Africa — the hunt for raw materials To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Russia and China step in African countries will need to look for other allies – both new and old, say experts. China has already launched extensive military training programs for African forces, replicating aspects of the US military model, while Russian mercenariesestablish themselves as key security partners in North, West, and Central Africa. "China'sapproach in the past has mainly been economic," Saani explained. The US, he points out, has primarily focused on military support, in addition to economic help. "The Russians have strong presence with both economic and military involvement. It feels like everyone is competing for attention. The clear message is that there's a need to diversify partnerships. We can't rely solely on the US; we may also need to engage with the Russians and others." Niger: US military operations across the Sahel are at risk To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Can succeed alone? Some voices say that the lack of US support could be a wake-up call for African countries that forces them to consider their own resources and rise to the challenge. African nations can now take the opportunity to review their security resources, Saani says, and collaborate more closely. "Building up our defense industry is also critical. This means developing industrial capacity and enhancing the capabilities of our armed forces," adds the analyst. "We also need to tackle corruption to ensure that funds are not getting lost in people's pockets but are instead used to improve people's lives."
