ADDIS ABABA – As Africa navigates the first week of 2026, the continent is witnessing a complex interplay of rapid industrial growth, shifting geopolitical alliances, and persistent humanitarian crises. From the high-stakes naval exercises in South African waters to the 1,000-day mark of the devastating conflict in Sudan, regional leaders are balancing domestic stability against a volatile global order.
Business & Macroeconomics
Regional Capital Markets and Financial Resilience
The start of 2026 has seen robust activity in East and West African financial markets. The Central Bank of Kenya successfully raised $469 million in its inaugural bond sale of the year, benefiting from an oversubscription of 19%. Meanwhile, in Nigeria, the United Bank for Africa (UBA) secured $125 million through a share sale, a critical move to meet the Central Bank of Nigeria’s revised capitalization requirements ahead of the March 31 deadline.
Corruption and Accountability
In a notable cross-border legal development, Ghana’s former Finance Minister Ken Ofori-Atta has been detained by U.S. immigration officials for overstaying his visa. Ofori-Atta is currently wanted in Ghana on multiple corruption charges. Simultaneously, Nigeria’s anti-corruption agency has confirmed it will proceed with an investigation into a former oil sector regulator, despite the withdrawal of a petition by industrialist Aliko Dangote.
Energy & Climate
Uganda-Tanzania Pipeline Targets October Launch
The East African Crude Oil Pipeline (EACOP) project has reached a 79% completion rate as of January 2026.1 Energy ministers from Uganda and Tanzania confirmed during a high-level summit in Dar es Salaam that the first oil exports are scheduled for October 2026.2 Once finished, the 1,443 km heated pipeline will be the longest of its kind globally, though it continues to face significant opposition from environmental groups over its ecological footprint.3+2
Senegal’s Record Oil Output
Senegal’s Ministry of Energy reported that national oil production for 2025 reached 36.1 million barrels, significantly exceeding the initial forecast of 30.5 million.4 The overperformance at the Sangomar offshore field has been attributed to superior reservoir behavior and efficient well maintenance.5+1
| Energy Metric | Region | 2025/2026 Status |
| Crude Oil Output | Senegal | 36.1M barrels (exceeded forecast by 18%). |
| Pipeline Progress | EACOP | 79% complete; export readiness by July 31. |
| Electric Vehicle Recall | South Africa | 372 Volvo EX30 units recalled due to overheating. |
Geopolitics & Policy
China-Ethiopia Strategic Alignment
Chinese Foreign Minister Wang Yi met with Ethiopian Prime Minister Abiy Ahmed on January 8, 2026, to solidify an “all-weather strategic partnership.”6 The discussions focused on aligning Ethiopia’s development with China’s Belt and Road Initiative, with new commitments in maritime logistics and green energy.7+1
Diplomatic Strains and Election Tensions
- Somalia: The United States has paused all ongoing assistance programs to Somalia, citing “unacceptable actions” regarding the diversion of food aid.
- Uganda: Ahead of upcoming elections, opposition leader Bobi Wine has called on Western donors to suspend funding to the current administration, while religious leaders have issued a joint pastoral letter urging for a peaceful and constitutional electoral process.
- Benin: The country prepares for legislative polls this Sunday, January 11, under the shadow of a failed coup attempt in December 2025.8
Security & Defense
BRICS Naval Drills in South Africa
Warships from China, Russia, and Iran have arrived at the Simon’s Town naval base for the “Will for Peace 2026” exercises.9 The maneuvers, which run from January 9 to January 16, focus on maritime trade route safety.10 The drills have sparked diplomatic friction with the U.S. administration, which has labeled the exercises as a challenge to regional maritime norms.11+2
Escalating Conflict in DR Congo
Violent clashes persist in the eastern Democratic Republic of the Congo as government forces and “Wazalendo” fighters battle M23 rebels.12 Recent fighting has intensified in the Walikale and Masisi territories of North Kivu, with reports of heavy weaponry being used near civilian centers, forcing thousands more to flee into the forest for safety.13+1
Human Rights & Humanitarian Crisis
Sudan: 1,000 Days of War
January 9, 2026, marks the 1,000th day of the conflict in Sudan.14 The UN reports that over 33 million people—nearly two-thirds of the population—now require urgent assistance.15 With 9.3 million people displaced internally and another 4.3 million seeking refuge across borders, Sudan currently represents the world’s largest displacement and hunger crisis.16+2
Detainee Transfers in West Kordofan
In a disturbing development, the Rapid Support Forces (RSF) have reportedly transferred dozens of young detainees from West Kordofan to detention centers in Nyala, South Darfur. Human rights volunteers expressed grave concerns for the safety of these individuals, citing a lack of communication and the risk of summary executions within the RSF-controlled facilities.
Tech & Impact Investing
Impact investor Acumen has announced a $250 million fund for its “Hardest-to-Reach” initiative, targeting clean energy expansion in underserved sub-Saharan communities. Additionally, Germany’s development finance agency, DEG, has committed $50 million to the African Development Partners IV fund, focusing on mid-market private equity opportunities across the continent.
