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South Africa’s xenophobia crisis is a threat to Africa

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South Africa’s recurring attacks on foreign nationals are no longer just a domestic embarrassment; they are a continental wound. Each new wave of violence deepens mistrust across Africa, damages South Africa’s standing as a regional power and leaves many Africans feeling hurt, angry and betrayed.

For years, South Africa has benefited from Africa’s solidarity, labour, trade and political support. Migrants from across the continent have helped build businesses, filled labour gaps and strengthened informal economies in South African cities and townships. So when they are attacked, chased away from clinics, harassed in markets or targeted by vigilantes, the pain is felt far beyond South Africa’s borders.

That is why many Africans are distancing themselves from the violence. They are not rejecting South Africans as people; they are rejecting the idea that a country born from the struggle against oppression can repeatedly turn its anger on other Africans. The contrast is painful. A nation that once inspired the continent is now too often associated with exclusion, abuse and silence.

The most troubling part is the state’s response. South Africa’s government often speaks the language of sovereignty, law and order, but too often allows anti-immigrant gangs and vigilante groups to set the tone on the ground. That is not governance. It is complicity by neglect.

When public officials meet these groups, allow them access to national platforms or fail to enforce court orders against unlawful conduct, they help legitimise them. That gives vigilantes the confidence to continue. It also tells victims that the state is hesitant to defend them. In that vacuum, violence becomes a political tool.

The crisis is not simply about border control or undocumented migration. It is about power, accountability and the rule of law. Xenophobia thrives when leaders find it useful, when local actors profit from exclusion and when police enforcement is selective. In South Africa, migrants are often used as scapegoats for unemployment, crime and service failures that are far more complex than hostile slogans suggest.

This is why the violence keeps returning. It is not random. It is organised, repeated and politically profitable. Some groups gain votes, some gain influence, others gain access to resources and protection. Meanwhile, ordinary migrants lose livelihoods, dignity and sometimes their lives.

For the rest of Africa, the lesson is sobering. Continental unity cannot survive if African states tolerate attacks on Africans inside their own borders. The promises of integration, free movement and shared prosperity lose credibility when people are assaulted for looking foreign. Trade and diplomacy also suffer, because trust is the hidden currency of regional cooperation.

South Africa must do more than condemn xenophobia in speeches. It needs to prosecute perpetrators, dismantle the networks that organise exclusion and ensure that police protect everyone, not only citizens. It must stop rewarding groups that traffic in hate and enforce the law consistently, even when politically inconvenient.

It must also confront the deeper social problem: the willingness of some politicians and activists to turn desperation into hostility. That requires leadership, not slogans. It requires the state to defend constitutional democracy against those who want to replace it with mob justice.

Africans across the continent are watching closely. They are hurt because they know South Africa’s violence is not only against migrants; it is against the idea of Africa itself. If the country wants to remain a respected regional power, it must prove that its laws are stronger than its mobs and that its democracy can still protect the vulnerable.

Without that, the crisis will keep spreading, and the damage will not stop at South Africa’s borders.

World Energy report says Africa’s transition is gaining ground but still faces major strains

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The global energy transition has lost momentum, and Africa is improving from a low base while still facing major structural constraints, according to the World Economic Forum’s Energy Transition Index 2026. The report says Sub-Saharan Africa is making progress in access, affordability and readiness, but the region remains held back by underinvestment, weak infrastructure and uneven policy support.

The index shows that global transition progress has stalled, with the overall score broadly unchanged in 2026 after a modest rebound the previous year. While energy system performance improved slightly, transition readiness fell for the first time in more than a decade, reflecting weakening conditions for future investment and implementation.

For Sub-Saharan Africa, the report says the region continues to build momentum from a low starting point, especially in electrification and policy progress. But it also warns that the transition remains uneven and vulnerable to financing gaps, access challenges and weak infrastructure.

The report places strong emphasis on the importance of readiness — the policy, financial, human capital and infrastructure conditions needed to sustain energy transformation. It says weaker financing conditions and policy uncertainty are making it harder to turn ambition into delivery, even as clean energy investment reaches record levels globally.

Africa’s performance is viewed in the context of a wider global shift toward energy security. The report says geopolitical shocks, supply chain concentration and rising electricity demand are reshaping energy strategies worldwide, with countries now focusing more on resilience, affordability and domestic capability.

At the regional level, the report says Sub-Saharan Africa has benefited from gradual improvements in regulation and energy access, but the pace is still too slow to close gaps by 2030. It also notes that the region’s energy transition is being shaped by its strong sustainability profile and its need to expand access for millions still outside the grid.

The index highlights that Africa’s challenge is not only one of generation capacity, but also of financing, grid development and the ability to support industrial growth. It says countries that strengthen institutions, mobilize capital and improve delivery systems will be best positioned to advance their energy transitions.

The report’s broader message is that the next phase of the transition will be determined less by technology alone and more by governance, investment and execution. For Africa, that means turning progress in access and affordability into a more stable and resilient energy future.

Africa’s cash dependency is choking growth, report warns

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A new Africa-focused report says the continent’s heavy reliance on cash is holding back financial inclusion, small business growth and government revenue, even though Africa has already built some of the world’s most advanced digital payment infrastructure. The report argues that the problem is not technology itself, but the incentives and institutions that still make cash the most practical choice for millions of people.

The report, The State of Cash Dependency and Digital Financial Inclusion in Africa, says Africa’s digital rails have expanded far beyond bank branches, yet cash remains the default for buying food, paying rent, settling debts and running informal businesses. It says this gap is most visible among street vendors, migrant workers and small traders, for whom cash is still cheaper, faster and more reliable than digital alternatives.

According to the report, over 90 percent of mobile money value is still withdrawn as cash at the point of receipt rather than staying in the digital system. It says this “cash-in/cash-out” pattern limits the usefulness of digital finance because people may receive money digitally but still revert to cash for daily transactions.

The report also says cash dependency has serious economic consequences. When transactions do not leave a digital record, lenders cannot properly assess creditworthiness, which makes it harder for small and medium-sized enterprises to access finance. It adds that governments lose visibility over large parts of the economy, weakening tax collection and limiting the resources available for public services.

One of the report’s central findings is that Africa’s financial challenge is not lack of access alone, but the failure of digital systems to outperform cash at the level of everyday decisions. It says many merchants still prefer cash because accepting digital payments can involve fees, while consumers keep cash because merchants often require it. The result, the report says, is a self-reinforcing cycle that keeps cash dominant.

The study identifies several barriers to change, including fragmented regulation across African countries, weak interoperability, identity and documentation gaps, unreliable agent liquidity and low trust in digital finance. It says these problems are not evenly distributed, and that policy responses must differ from one country to another depending on how advanced its payment systems already are.

The report calls for three major shifts: making digital payments cheaper than cash for merchants, mandating real-time interoperability across providers, and building stronger financial products such as credit, savings and insurance on top of payment rails. It also urges governments to digitize public payments, modernize digital identity systems and support the regulatory environment needed for broader adoption.

The report groups African markets into three broad categories: catalytic markets such as Kenya, Nigeria, Ghana and South Africa; tipping-point markets including Ethiopia, Tanzania, Uganda, Rwanda and the Democratic Republic of Congo; and nascent markets where basic connectivity, identity systems and institutional trust remain the main constraints.

Its broader conclusion is that Africa does not need to start from scratch. The infrastructure, innovation and entrepreneurial capacity already exist, but stronger governance, better incentives and coordinated policy are needed to make digital finance the norm rather than the exception.

Less than 10% of direct funding: The structural inequality embedded in global philanthropy

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Leaders and critics in the sector have warned that the global philanthropic system is facing a severe legitimacy crisis. They noted that the current global aid architecture places restrictions on Africa’s economic sovereignty and serves as a moral cover for worsening wealth inequality.

Leaders attending the 10th East Africa Philanthropy Conference in Addis Ababa highlighted this concern. According to them, less than 10 percent of global philanthropic funds flowing into Africa reaches African organizations directly. Instead, the vast majority of capital remains trapped within a complex web of intermediary organizations outside Africa, local branches of Western non-governmental organizations (NGOs) and global think tanks.

Critics argue that this structural exclusion has left African institutions as mere end users of capital rather than designers of their own development strategies. They contend that by routing most resources through Western intermediaries, NGOs and foreign thought leaders, the global philanthropic system dominates the narrative on African development and deliberately stifles radical or structural wealth redistribution initiatives.

“Less than 10 percent of global philanthropic funds flowing to Africa reaches African organizations directly,” said Brian Kagoro, Managing Director of Programs at the Open Society Foundations. “The highest number of consultants and beneficiaries are not Africans. I accept that they love Africa; I accept that they employ Africans. But let’s face reality. In this new era, localization without sovereignty is merely an exercise in sanitized colonialism.”

Kagoro warned that unless African philanthropic organizations move beyond merely managing poverty and transition toward building structural economic systems, they risk becoming complicit in the exploitation of the continent.

“Philanthropy in Africa should not view itself merely as an aid sector; rather, it must be a platform to discuss continental security in an era where others want to contract us, exploit us and build neo-colonies,” Kagoro said. “If this platform does not change, and if we continue to only talk about how to make what we do more effective, we will become highly potent agents for the recolonization of Africa.”

Echoing criticism of frameworks imposed by the West, Evans Okinyi, CEO of the East African Philanthropy Network (EAPN), also pointed out that the legal and policy infrastructures governing philanthropy in many African countries remain deeply rooted in colonial-era mindsets.

Modern legal frameworks often force organizations into rigid categories — for-profit, non-profit or government — which ignores traditional and fluid African socioeconomic structures where communities blend business with social mutual aid.

Okinyi emphasized that changing this trajectory requires a fundamental psychological shift away from short-term emergency interventions toward long-term, sustainable infrastructure.

“This is a matter of mindset; it is a mindset challenge,” Okinyi said in an interview on the sidelines of the conference. “Many of the Western concepts we adopt on this continent are about short-term gains.

But the challenges we face on this continent are long-term challenges. Therefore, the solutions put into practice must incorporate long-term strategies.”

“We are out of the colonial era, but when we talk about inherited concepts, inherited frameworks and inherited tools from the Global North, colonialism is at work right there,” Okinyi said. “To break free from those chains, to change the narratives, to build our own frameworks, we must understand and appreciate that Africans have always been donors and philanthropists since ancient times.”

Kagoro warned that when domestic philanthropy remains weak, governments turn more toward private international creditors. While this approach creates cheap money in the short term, it ultimately increases national debt burdens significantly, thereby shifting the weight of interest rates back onto the low-income households that philanthropic organizations claim to help.

Rather than accepting a system where global elites gain legitimacy by supporting basic needs such as water and primary education, Kagoro called on African leaders to focus on capital creation, asset protection and growth. Pointing out that the African diaspora sends more than $100 billion back to the continent annually — a massive accumulation of capital — Kagoro said governments have failed to properly use these funds for structural economic transformation by linking them to technology, micro-processing or agricultural infrastructure development.