Motorcycle taxis, known locally as boda-bodas, have surged in number across East Africa, but nowhere more dramatically than in Kampala. With an estimated 350,000 boda-bodas operating in a city of 3 million, these vehicles fill a crucial transport gap in the absence of a mass transit system and amid high unemployment.

Boda-boda drivers, who come from various parts of Uganda, often have no other job prospects. “We just do this because we have nothing else,” says Zubairi Idi Nyakuni, a driver who, despite holding advanced degrees, struggles with job scarcity.

The boda-boda sector is largely unregulated, and attempts to control it have faced resistance from drivers and frustration from city authorities. The influx of young, unemployed men seeking income has made it difficult for the government to enforce regulations without provoking unrest.

Charles M. Mpagi of Tugende, a company that finances boda-boda purchases, notes the lack of alternative opportunities for Uganda’s youth, who make up about 76% of the population. Unemployment has risen from 9% in 2019 to 12% in 2021, with youth unemployment even higher.

President Yoweri Museveni has historically supported boda-boda drivers as political allies, leveraging their visibility and influence. The term “boda-boda” originated from the 1970s when drivers transported smugglers across borders.

Today, boda-bodas are essential for daily tasks, from school runs to medical emergencies. However, they are also linked to crime and accidents. The number of fatal motorcycle accidents in Uganda rose from 621 in 2014 to 1,404 in 2021.

Despite ongoing efforts to regulate the sector, enforcement is challenging due to the sheer number of boda-bodas and their drivers’ non-compliance with traffic laws. Efforts to establish official stands and improve road safety have had limited success.

Recent policy changes, including a reduction in the licensing fee from nearly $100 to about $35, aim to make it easier to join the industry. With new motorcycles costing around $1,500, many drivers acquire them on credit or through bulk purchase schemes. The high cost and pressure to maintain their bikes create financial strain, often leaving drivers like Innocent Awita struggling to make ends meet.

Awita, who dropped out of school in 2008, faces daily pressure to pay for his bike and cover operational costs. “Sometimes I work for days without earning enough, but if I get something, it can save my life,” he says.

In Kampala, boda-bodas are both a lifeline and a symbol of the city’s complex challenges, embodying the intersection of economic necessity and urban disorder.

The new directive came five months after Kenyan clearing and forwarding agents moved to court to compel South Sudan authorities to suspend introduction of a second cargo tracking seal.

Now, Juba has directed East African countries to comply with immediate effect.

In a notice issued on August 13, Dr Daniel Kon Ater, the South Sudan Revenue Authority (SSRA) Commissioner for Corporate Services informed all stakeholders in Uganda, Kenya and Tanzania to tag goods destined to their country, alongside the requisite Electronic Cargo Tracking Note (ECTN).

SSRA said all taxpayers, clearing and forwarding agents and transporters, including non-governmental organisations involved in moving cargo destined to and from South Sudan, should attach South Sudan regionally recognised electronic cargo tracking seal.

Speaking during the Kenya Private Sector Alliance (Kepsa)-EAC Secretary-General Roundtable in Nairobi on Wednesday, EAC boss Veronica Nduva said the stays were distorting trade within the region.

The existence of numerous stays of application and countries’ duty remission is an impediment to the intra-EAC trade, she said, as the finished products that benefit from these measures cannot access the regional market at preferential tariff treatment.

This is due to the fact that all finished products that benefit from a country’s duty remission once sold in the EAC Customs Territory attract duties, levies and other charges provided in the EAC Common External Tariff (CET).

“Partner states are still requesting stays of application. This has meant that we have a distortion to the common instruments (of the CET) that were adopted by all partner states,” Ms Nduva said.

A sign displayed on the headrest of a driver’s seat reads, “We, as Nairobi online drivers, wish to notify the public that due to the high cost of living, we will not be able to operate under the current rates of Uber, Faras, and Bolt.”

The sign details new fares that drivers believe are necessary for them to remain operational. They are urging ride-hailing companies to reconsider their pricing, starting with increasing the minimum fare from $1.40 (KES 180) to $2.33 (KES 300).

Dennis Nyariki, deputy chairman of the Organisation of Online Drivers Kenya (OOD), explained, “With a minimum fare of KES 300, our calculations cover a litre of fuel plus an additional $0.78 (KES 100) for the driver’s expenses, such as airtime and maintenance. For trips exceeding KES 300, which cover more than 3 km, it’s fair for the driver to multiply the app’s fare by 1.5.”

The drivers have set new fares for airport and railway station pickups and drop-offs, ranging from $7.75 (KES 1,000) to $38.76 (KES 5,000), which are pricier than a train ticket from Nairobi to Mombasa and nearly half the cost of a flight to the coastal city.

According to an analysis by AA Kenya, a mobility solutions company, incorporating maintenance costs suggests that ride-hailing apps should charge at least $0.26 (KES 33) per kilometer.

Drivers are advocating for fare increases to improve their earnings, partly due to the rising cost of living. However, ride-hailing apps are hesitant to raise prices as they aim to keep fares affordable for price-sensitive customers.

Economic challenges, including job cuts, pay freezes, and high inflation, have led to reduced discretionary spending, impacting leisure travel and potentially decreasing ride frequency.

Customers have reported harassment and even assault from drivers when refusing to pay the unofficial rates. In response, the ride-hailing companies have agreed to meet with drivers’ associations to address these issues.

“We understand and empathize with the concerns raised by drivers. However, we are aware that some drivers have taken independent actions to increase fares, leading to inconsistent pricing for customers. We urge drivers to refrain from setting their own fares until this industry matter is resolved,” Bolt said in a statement to TechCabal.

Bolt also mentioned that they are working on a solution to balance drivers’ economic needs with customer affordability and service quality. Industry negotiations mediated by the Ministry of Transport and the National Transport and Safety Authority (NTSA) are expected.

Uber added, “Requesting additional payment beyond what is displayed on the app violates our Community Guidelines. Actions may be taken, ranging from holding the driver’s account to potentially denying further access to the app.”

Past negotiations on this issue have often been unproductive, leading to frequent driver strikes. While fare pricing is a major concern, drivers are also seeking a role in determining and reviewing trip fares.

If the upcoming meetings fail to resolve the conflict, unions have indicated they will continue to enforce their new rates. This situation underscores a challenging moment where ride-hailing apps, once eager to attract drivers, might consider severing ties with them.

A French court has seized three jets owned by the Nigerian government amid a long-standing dispute with a Chinese company.

The row stems from a 2007 contract between Zhongshan Fucheng Industrial Investment and Nigeria’s south-western Ogun State to develop a free-trade zone where a massive industrial park was to be developed to attract investors.

The agreement was terminated between 2015 and 2016. According to the Financial Times, Zhongshan said it was forced out of the deal through a “campaign of illegal acts”.

The authorities in Nigeria have fiercely condemned the seizure of its planes, suggesting Zhongshan had a sole objective of “undercutting and scamming” an African government.

A total of three presidential planes have been grounded in France after Zhongshan obtained orders from the Judicial Court of Paris.

The planes were receiving “routine maintenance” at the time, Nigeria’s government said.

In a statement by spokesperson Bayo Onanuga, Nigeria’s presidential office accused Zhongshan of mounting a wider campaign to seize its assets overseas.

“This arm-twisting tactic by the Chinese company is the latest in a long list of failed moves to attach Nigerian government-owned assets in foreign jurisdictions,” he said.

In March 2021 an arbitration tribunal – chaired by the president of the UK Supreme Court – awarded $74.5m (£57.8m) in compensation to the Chinese firm. Ogun State reportedly refused to pay this amount.

Nigerian-owned buildings in the British city of Liverpool were recently seized by a UK court in relation to the same dispute, Nigerian newspaper Premium Times reported.

Last Friday, the United States Court of Appeals ruled that Zhongshan could proceed with its efforts to confiscate Nigeria’s assets abroad. The court also rejected Nigeria’s defence of “sovereign immunity”.

On Thursday, Nigeria accused Zhongshan of misrepresenting facts to courts in the UK, the US and France.

Mr Onanuga said that when the Ogun State contract was revoked, Zhongshan had done no more than erect a perimeter fence on the land earmarked for the free-trade zone.

A free-trade zone is an area where goods can be moved in and out of a country for reduced or no taxes or fees.

Other such zones exist in Nigeria, such as one in Lagos where the Dangote Petroleum Refinery – built by Africa’s richest man, Aliko Dangote – has recently opened.

In a statement issued to Nigerian media, Zhongshan said: “Far from being just a fence, the Ogun Free Trade Zone was featured as a significant international investment by the Economist Intelligence Unit.”

The Nigerian authorities sought to assure its people that it was working to discharge the French court’s “frivolous order”.

“Nigerian government will always work to protect our national assets from predators and shylocks who masquerade as investors,” the statement said.

The regional government in Ogun State released a similar statement, accusing Zhongshan of making a “series of ill-advised attempts” to seize Nigerian assets.

China is Nigeria’s largest import partner and the two have strong trade relations.

The situation has also renewed public debate about whether President Bola Tinubu should have multiple, taxpayer-funded jets when ordinary Nigerians struggle against an intense economic crisis.

Peter Obi, an opposition politician who unsuccessfully ran for president in 2023, said the news of three jets being seized was “embarrassing” and exposed an “insensitivity to the plight of the growing poor class in our midst”.

Nicolas Guibert, a director at Mobius, stated, “On August 14, Mobius accepted a bid to acquire 100% of its shares from an undisclosed buyer. Both parties are aiming to finalize the transaction within the next 30 days.”

As a result of the acquisition offer, Mobius has postponed a creditor meeting originally scheduled for Thursday to facilitate the ongoing negotiations.

The potential buyer may be interested in utilizing Mobius’s Nairobi assembly plant either to manufacture their own models or to continue producing Mobius vehicles, which are designed for small and medium-sized enterprises (SMEs) in sectors such as infrastructure, agribusiness, and supply chains operating in remote areas.

On August 9, Business Daily reported that two dealers were exploring the possibility of acquiring the financially troubled car manufacturer, with hopes of revitalizing the brand.

This development follows a visit to the Mobius plant by Hassan Abubakar, Permanent Secretary for Trade and Industry, along with representatives from the Kenya Association of Manufacturers (KAM), to discuss potential rescue strategies.

Mobius’s production facility is equipped to handle vehicle frame fabrication, anti-corrosion treatment, general assembly, painting, quality testing, and final inspection, and also includes a research and development unit.

The company has a distributorship agreement with Chinese automaker BAIC, which played a key role in launching the Mobius III, an upgraded version of its earlier models, Mobius I and Mobius II.

Founded in 2009 by British entrepreneur Joel Jackson while in Kenya, Mobius introduced a cost-effective SUV model in 2014 specifically designed for African roads. The initial model was priced at $10,000 (KES 1.3 million), significantly lower than typical SUV prices in Kenya. The Mobius III was retailing at $43,000, compared to over $65,000 for imported and locally assembled models like the Toyota Land Cruiser Prado, Land Rover Defender, and Jeep Wrangler.

The Egyptian pound is falling against foreign currencies, approaching 50 per U.S. dollar after a recent increase in metro fares and fuel prices.

The currency hit 49.16 per U.S. dollar on Tuesday, the Central Bank of Egypt said on its website.

In June and July, the Egyptian pound fluctuated between 47 and 48 per dollar after its IPO in March and lost about 60% of its value, falling to around 30 per dollar.

The new exchange rates come a week after the International Monetary Fund (IMF) completed its third financial review of Egypt, authorizing the government to draw down $820 million . The amount is part of an $8 billion bailout loan to support Egypt’s struggling economy, which has been hampered by a shortage of foreign currency , soaring inflation and unrest in the Red Sea caused by attacks by Yemen’s Houthi rebels.

“Recent efforts by the Egyptian authorities to restore macroeconomic stability have started to show positive results. Inflation remains high but is declining. A flexible exchange rate regime remains the cornerstone of the authorities’ program ,” the IMF said last week.

Egyptians are grappling with runaway inflation, with the oil ministry announcing late last month that fuel prices would rise by about 10 percent.

The last fuel price increase took place in March, with the government attributing the price hikes to the rising cost of fuel due to the Red Sea attacks and the depreciation of the Egyptian currency.

The Houthis have attacked commercial ships in the Red Sea in retaliation for Israel ‘s war in Gaza. Oil, natural gas and grain, among other goods, travel through the sea lanes that separate Africa and the Arabian Peninsula to reach the Suez Canal , which typically carries 12% of world trade .

Cairo Metro fares also officially increased last week, according to the National Tunnels Authority, which manages and operates the Cairo Metro. The increased fares now range between 2 and 5 Egyptian pounds.

Egypt reached an agreement with the IMF in the spring to more than double the size of its bailout , which now stands at $8 billion. The price increases were deemed necessary to meet the IMF’s conditions for continued aid to the country.

The bypass, part of the larger 460-kilometre East African Coastal Corridor funded by the African Development Bank (AfDB) and the European Union, links Mombasa to Bagamoyo. The project was awarded to the Fujita Corporation-Mitsubishi Corporation consortium and completed ahead of schedule by the China Civil Engineering Construction Corporation.

Spanning about 17.5 kilometres, the bypass will enhance connectivity with the Standard Gauge Railway (SGR) and Mombasa International Airport. It includes major bridges such as the Mwache, Tsunza Viaduct, and the Mteza Bridge, which will be the longest bridge over water in the region.

Kenya National Highways Authority (KeNHA) Deputy Director Samuel Ogege confirmed the successful handover of the project, noting that while the bypass is in use, an official opening ceremony will be held later. The toll-free bypass, built with Japanese loans and Kenyan government support, will ease traffic congestion and reduce the need for ferry services.

This development is expected to improve trade between Kenya and Tanzania, with Tanzania exporting agricultural products and Kenya sending manufactured goods and raw materials. The overall Coastal Highway project, covering both countries, is projected to cost $751 million, with AfDB funding 70% and the governments of Kenya and Tanzania covering the remainder.

The union has demanded the government cancel what it calls the “unlawful sale” of JKIA. Kenya’s government, however, insists the airport is not for sale and that discussions are about a public-private partnership to upgrade the airport.

Any strike could disrupt Kenya Airways. The union has also called for the resignation of the Kenya Airports Authority (KAA) board. The KAA has received the strike notice and hopes for a resolution through negotiation.

The government has stated that JKIA, which serves more passengers than its 7.5 million capacity, needs improvements, citing issues like leaking roofs. The modernization, estimated at $2 billion, is beyond current funding capabilities. Adani’s proposal includes a new runway and terminal upgrades, but no final decision has been made yet.

The proposed deal has also faced criticism from a youth-led protest movement concerned about transparency, with protests last month leading to police blocking access to JKIA.