AFRICA
Britain’s Economic Troubles and Brexit
It has been a year since Britain had its vote to leave the European Union. Since then, the British pound has lost 13 percent of its value in comparison with the euro which has raised the cost of imports of goods that Britons import a lot of including meat, cheese, wine, and gasoline.
British exports have increased, especially in whiskey, salmon, and chocolate, because it is cheaper for countries to buy British goods now that the British Pound has been weakened. However, the automotive, aerospace and medical device industries have suffered because many of the components needed to create these machines need to be imported into Britain which raises the price of the final product as imports are now more expensive.
This decrease in the value of the British Pound has also stopped many Britons from going on their annual vacations to warmer climates in the European Union.
Inflation coupled with stagnant wages may have led to the decision for Britain to leave the European Union as common Britons were not benefitting from the lucrative union with other European countries as much as big companies and banks were. The Conservative Party was expected to carry out negotiations with the European Union in terms of Britain leaving, but the public’s discontent with the lower quality of life in Britain has been targeted at the Conservatives leading to their downfall in the recent election where the Labour Party took on more seats.
Prior to Brexit, the British economy was growing at a rate of 0.7 percent every quarter. Now, it is a much slower rate of 0.2 and is only expected to grow at a rate between 1.5 percent and 1.75 percent for the next year or two. This could be because consumer spending comprises two-thirds of the British economy and with prices rising and wages staying the same, people can no longer afford to consume as much as they once did. As of April, outstanding credit card balances in Britain were 10 percent higher than a year earlier, according to the Bank of England.
This is a strong indication that Britons wages are not able to keep up with inflation. Unemployment in Britain has dropped down to 4.6 percent, the lowest it’s been since 1975, but that number does not tell the whole story. This low level of unemployment is caused by the gig economy where people take up part-time or temporary jobs. Usually, when unemployment is low, workers have the bargaining power because there aren’t many other people out looking for jobs that could replace a worker. These workers then negotiate with employers for higher wages. However, because these jobs are only part-time or temporary and many workers are not unionized, workers do not have the same negotiating power as they once did.
Uncertainty as to how the Brexit negotiations will go as well as the unpredictability of President Trump and his affect on world order have made companies reluctant to invest in Britain. Approximately 15,000 to 80,000 jobs are expected to be lost in Britain over the next two years as a lot of banking jobs leave the country.
About one-third of Britain’s banking involves transactions for clients in Europe which Britain may no longer be able to do when Britain leaves the European Union. The financial industry has been pressing Prime Minister Theresa May to maintain Britain’s inclusion in the European Market so that money may keep flowing into Britain. Peter Dixon, a global financial economist at Commerzbank AG in London believes that as the Brexit negotiations go on it will affect business greatly. “Even if companies don’t slash investment, they are likely to postpone expansions,” Dixon said.
Featured Image Via Public Domain Pictures
AFRICA
The UK paid Rwanda an additional $126 million for the contested migrant plan.
As the tab for Britain’s controversial proposal to relocate asylum seekers to the East African nation continues to increase, the United Kingdom paid Rwanda an extra 100 million pounds ($126 million) in April. This was in addition to the 140 million pounds it had already provided Rwanda.
Even though the Rwanda project is at the core of the policy that British Prime Minister Rishi Sunak is employing to discourage illegal immigration, there have been no individuals sent to Rwanda as of yet due to legal challenges that have taken place since the initiative was introduced in 2022.
After Sunak’s immigration minister resigned this week, the polarizing policy is now regarded as a danger to Sunak’s leadership, which is anticipated to be challenged in the election that will take place the following year.
According to a letter that the British Ministry of the Interior issued on Thursday, the United Kingdom plans to give Rwanda fifty million pounds in addition to the 240 million pounds it has already provided to the East African nation.
The opposition Labour Party criticized the disclosures regarding the rising cost of a scheme that legal experts warned could collapse. Some parliamentarians within Sunak’s party are also expected to express their disapproval of the idea.
A statement by Yvette Cooper, the shadow interior minister for the Labour Party, on social networking site X, said, “Britain cannot afford more of this costly Tory chaos and farce.”
On Friday, however, the newly appointed minister for legal migration, Tom Pursglove, explained what he called the “investment” of 240 million pounds. He stated that once the Rwanda policy was operational, it would reduce the money spent on hosting asylum-seekers in the United Kingdom.
“When you consider that we are unacceptably spending 8 million pounds a day in the asylum system at the moment, it is a key part of our strategy to bring those costs down,” Pursglove explained to Sky News.
Pursglove stated that the money donated to Rwanda would assist in the country’s economic growth and help get the asylum relationship with the United Kingdom up and running.
There was no connection between the money sent to Rwanda and the treaty that the two nations signed on Tuesday, according to the letter from the Ministry of the Interior.
The treaty aims to respond to a ruling by the Supreme Court of the United Kingdom, which stated that the deportation plan would contravene local laws based on international human rights standards.
“The Government of Rwanda did not ask for any payment in order for a Treaty to be signed, nor was any offered,” according to the correspondence.
After Robert Jenrick resigned from his position as immigration minister on Wednesday, Sunak made a plea to fellow Conservative parliamentarians on Thursday to come together in support of his Rwanda proposal. He stated that the emergency legislation the government had drafted to get the scheme up and running did not go far enough.
Africa
UK interior minister travels to Rwanda to resurrect asylum plan.
On Tuesday, the Minister of the Interior of the United Kingdom, James Cleverly, came to Rwanda to sign a new treaty. This was done to circumvent a court judgment that blocked the government’s contentious policy of transferring asylum seekers to the East African nation.
The Rwandan plan is at the core of the government’s attempt to reduce migration, and it is being closely monitored by other nations who are considered to be considering policies that are comparable to Rwanda’s.
In a decision handed down a month ago, the Supreme Court of the United Kingdom stated that such a move would violate international human rights norms embedded in domestic legislation.
Following the decision, the United Kingdom has been making efforts to revise its agreement with Rwanda to incorporate a legally binding treaty that guarantees Rwanda would not remove asylum seekers brought there by the United Kingdom. This is one of the primary concerns of the court.
Several attorneys and charitable organizations have said that it is highly improbable that deportation flights will begin before the election. With a lead of more than ten percentage points in the polls, the opposition Labour Party intends to abandon the Rwanda policy if it is victorious.
A meeting between Cleverly, who arrived in Kigali, the capital of Rwanda, on Tuesday morning, and Vincent Biruta, the country’s Minister of Foreign Affairs, is scheduled to take place to sign the agreement.
“Rwanda cares deeply about the rights of refugees, and I look forward to meeting with counterparts to sign this agreement and further discuss how we work together to tackle the global challenge of illegal migration,” Cleverly says.
The United Kingdom aims to transfer thousands of asylum seekers who came to its beaches without authorization to Rwanda under the plan that was agreed upon the previous year. This discourages migrants from crossing the Channel from Europe in tiny boats.
In exchange, Rwanda has been given an initial payment of 140 million pounds, equivalent to 180 million dollars, along with the promise of additional funds to cover the costs of housing and medical treatment for any deported persons.
THE PRESSURE
A great deal of pressure is being put on Prime Minister Rishi Sunak to reduce net migration, which reached a record high of 745 thousand people in the previous year, with the vast majority of migrants entering through legal channels.
“Stop the boats” is one of the five goals that Sunak has set for his government. The influx of asylum seekers who pay people smugglers for their crossings of the Channel, which frequently take place in boats that are overloaded and not seaworthy, is one of the aims that Sunak has set.
The Supreme Court determined that the Rwanda plan should not be implemented because there was a possibility that refugees who were deported would have their claims incorrectly evaluated or that they would be sent back to their country of origin to suffer persecution.
In the latter part of this week, it is anticipated that the new treaty will be followed by the release of legislation declaring Rwanda a so-called safe nation. This law is intended to prevent legal challenges against the planned deportation flights.
Despite this, this will probably result in a fresh set of political and legal difficulties.
An immigration attorney at Harbottle & Lewis named Sarah Gogan stated that the government’s policy will be challenged due to Rwanda’s history of violations of human rights provisions.
“Rwanda is an unsafe country and this is not a quick fix,” added the politician. “You cannot in a matter of weeks or months reform a country and turn it into one with an impartial judiciary and administrative culture.”
Another “gimmick” was what Yvette Cooper, the spokesperson for the Labour Party’s home affairs department, called the most recent measures proposed by the administration.
Whether or not to design the law in a way that would avoid subsequent legal challenges is still up for debate by the administration.
Several members of the Conservative Party in parliament are putting pressure on the government to incorporate a “notwithstanding” clause into Rwanda’s policy. This clause would disapprove the domestic and international human rights commitments of the United Kingdom regarding Rwanda.
However, some politicians within the ruling party, such as Robert Buckland, have stated that such a move would be “foolish” and undermine the Good Friday Agreement, which is primarily responsible for ending three decades of carnage in Northern Ireland. This is because the European Convention on Human Rights supports the treaty.
Africa
Madagascar leader wins presidential vote, constitutional court says
On Friday, the High Constitutional Court of Madagascar certified Andry Rajoelina, the current President of Madagascar, to be the victor of the election a month ago, essentially granting him a third term in office.
Following the dismissal of several challenges submitted against the preliminary results by the electoral board, the court said that Rajoelina collected 58.96% of the votes that were cast.
Florent Rakotoarisoa, the chairman of the High constitutional court, stated that “Andry Rajoelina is elected as the president of the republic of Madagascar and is taking his functions as soon as the swearing (is conducted) comes to an end.”
The rejected challenge was submitted by the politician Siteny Randrianasoloniaiko, who received 14.39% of the vote, according to the court. This was one of the challenges that was denied.
Ten of the thirteen candidates chose not to participate in the election; nevertheless, their names were already on the ballot, so they could still divide the remaining votes. The court reported that the turnout was 46.35 percent.
The election on November 16 was preceded by weeks of demonstrations, during which the opposition accused Rajoelina of having fostered conditions that were unjust to the election.
The charges that the vote was rigged have been refuted by Rajoelina, and the army has issued a warning against any attempts to destabilize the country.
As far as the opposition is concerned, the voter turnout for the election was the lowest it has ever been in the country’s history.
Hajo Andrianainarivelo, a former minister who was one of the candidates who chose to abstain from voting, has committed to fight against what he has described as a lack of respect for the rules of the state and the tyranny of the people.
“The popular fight begins now,” he declared on Thursday referring to the ongoing conflict.
Rajoelina, now 49 years old, initially won power in a coup in 2009. After resigning from his position as the head of a transitional authority in 2014, he went on to win another election in 2018 and regain his position as president.
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