Africa

1. US expands travel bans
2. AfDB raises record fund
3. MoneyGram bets on cash
4. Airtel, Starlink ink deal
5. Diageo sells Kenya stake
6. UK’s new Africa strategy

Lagos holds its first street art festival.

US limits entry to Nigerians in new rules

The US imposed new travel restrictions on Nigeria, further worsening ties between the two countries. Nigeria is one of 12 additional African countries — which also include Angola, Senegal, Tanzania, and Zambia — that now face new limits on visiting the US. The move came after US President Donald Trump threatened Abuja with sanctions and military action over the treatment of its Christian population. The White House alleges that Islamist militants in Nigeria are systematically targeting Christians, accusations Nigerian authorities deny.

Burkina Faso, Mali, Niger, Sierra Leone, and South Sudan are, meanwhile, among the latest entrants to an expanded group of 19 countries that now face a full travel ban. The White House said it was restricting entry of foreign nationals “to prevent national security and public safety threats,” but its measures have come under sharp criticism from rights groups and the UN.

AfDB raises record sum for key fund

The amount raised by the African Development Bank for its flagship fund, the largest sum in its 53-year history. The African Development Fund lends money to 37 low-income nations on the continent, offering concessional loans with long repayment terms, aiming to expand access to energy, boost food security, build infrastructure, and advance regional trade. This round of replenishment for the fund is particularly striking because of the 23 African countries that contributed, 19 were doing so for the first time.

“It is a turning point,” AfDB President Sidi Ould Tah said. “In one of the most difficult global environments for development finance, our partners chose ambition over retrenchment, and investment over inertia.” Earlier this year, Washington — previously one of the top five donors to the fund — withheld nearly $200 million it had promised the ADF in a prior pledging round.

MoneyGram eyes cash advantage

Money transfer company MoneyGram is betting on its ability to offer cash remittances in order to stay ahead of smaller fintech challengers in Africa, its CEO told Semafor. Anthony Soohoo said the company’s “omnichannel” approach — whereby it offers access to digital and cash transfers — is crucial because physical money is likely to remain popular in African countries for many years to come.

MoneyGram, which is more than 80 years old, has developed a business model based on remittances that allow customers to deposit money and receive cash. The company has rolled out new digital services following Soohoo’s appointment as CEO in October 2024.

Fintech companies such as Wise and Flutterwave are also debuting cross-border payments across Africa with the offer of low-cost transfers. But MoneyGram’s CEO said his company’s ability to provide access to physical cash, with some 500,000 branches worldwide, was an advantage. “In some areas also, you do see people feel more comfortable with cash. And I don’t think that’s going to end any time soon,” he said during an interview.

Airtel inks deal with Starlink

Mobile operator Airtel said it will use satellite technology provided by Elon Musk’s SpaceX to enhance voice and text messaging services in its 14 African markets.

Airtel has provided voice, text, and internet services to mobile phone users in Africa for more than a decade through terrestrial cell towers and subsea fiber optic cables, but has tapped SpaceX’s services this year to ramp up its capability. The latest partnership will see Airtel rely on SpaceX’s low-Earth orbit Starlink satellites that function as aerial cell towers, enabling direct texting features for users in countries where Airtel is available.

SpaceX began launching 600 direct-to-cell Starlink satellites in 2024, a constellation separate from the more than 8,000 satellites that provide internet access. The company is among the world’s largest 4G coverage providers with more than six million users.

Diageo to sell EABL stake

British drinks maker Diageo will sell its entire stake in Nairobi-based East African Breweries (EABL) for $2.3 billion, the company’s second major divestment from the continent in as many years.

EABL’s board received notification of Diageo’s intention to sell on Tuesday, a move that will see the UK giant sell its 65% stake to Japanese beverage group Asahi. It ends Diageo’s review of its East African business that began earlier this year, with top banks including Goldman Sachs reportedly enlisted to help the company assess its options. Kenya is considering raising its minimum legal drinking age from 18 to 21, which may have been an important factor in Diageo’s consideration to exit EABL.

The sale to Asahi, if it clears regulatory hurdles, would mark Diageo’s second major divestment since it sold its stake in Guinness Nigeria last year to Singaporean group Tolaram, in pursuit of “a flexible and asset-light beer operating model.”

UK launches new Africa strategy

The UK said it will focus on forging stronger trade and investment ties with Africa as part of its new strategy to engage with the continent, echoing Washington’s shifting emphasis from aid to trade.

In a speech, Africa Minister Jenny Chapman said Britain — which this year cut its aid budget by 40% — was “moving from donor to investor” by supporting economic partnership agreements. She also said the UK, ahead of its G20 presidency in 2027, will work toward reforms of the global debt system. “The whole point of this is to scale up private capital for Africa’s development priorities,” she said.

The policy launch, more than a year after Britain’s government took office, follows several months during which the White House’s unpredictable tariff policy upended global trade. The UK government, which has sought trade deals since leaving the EU, is one of many wealthy countries looking for business opportunities on the continent. The US, in its recently published National Security Strategy, said it will prioritize deals on critical minerals and energy in Africa.

— Alexis

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