| Welcome to Next Africa, a twice-weekly newsletter on where the continent stands now — and where it’s headed. Sign up here to have it delivered to your email. There may be a twist in Donald Trump’s trade playbook. The US president’s levies offer African nations a chance to speed up industrialization and forge more favorable ties with other manufacturers. Already, Indian companies are seeking to boost production in Africa for shipment to the US, an attempt to bypass 50% duties on goods they send to the world’s biggest economy. China’s trade with the continent is booming, and exports are set to top $200 billion for the first time. But their impact on South Africa’s automotive industry may prove a cautionary tale.  WATCH: Ondiro Oganga reports on the surge in Chinese shipments to Africa on Bloomberg TV. Together, the Asian powerhouses send almost 200,000 budget vehicles to South Africa. Sales for Mahindra, Suzuki and China’s Chery have jumped as consumers opt for cheaper cars in an economy that’s barely grown for more than a decade. Demand for the vehicles is so strong that Tata, India’s largest automaker by sales, has re-entered the market after a yearslong hiatus while Mahindra is boosting capacity at its local plant by two-thirds. Still, the shipments will shake up an auto industry that accounts for more than a fifth of the nation’s manufacturing output and has been a rare brightspot in the economy. It’s already facing Trump’s 30% tariff on exports to the US and a shift to electric vehicles (which it doesn’t produce yet at scale).  A BMW production line in South Africa in 2018. Photographer: Stefan Kleinowitz/Bloomberg The consequences are already becoming evident. Some factories are curbing output, while Ford announced this week it will cut nearly 500 jobs. With sales by other firms making cars in South Africa — including heavyweights Mercedes-Benz and BMW — under pressure, there may be more cutbacks to come. South Africa is seeking investment and wants new, strong trade partners. The irony, though, is that despite international outrage over Trump’s tariff onslaught, the government may need to do the same to protect local industry. — Prinesha Naidoo Key stories and opinion:
China Pours Exports Into Africa Faster Than Anywhere Else
Indian Exporters Look to Expand in Africa to Dodge 50% US Tariff
Mahindra Expands in South Africa as US Tariffs Hit Autos
Ford May Cut About 9% of Jobs at Two South African Plants
Xi Sharpens Mission for Alliance Built to Rival US-Led Order Rwanda received its first group of migrants deported from the US, making good on a controversial deal struck with the Trump administration. The East African nation announced this month it would take as many as 250 deportees, and they would get training, health care and accommodation. Kigali previously agreed to accept migrants from the UK, but that country’s new Labour government backtracked on the plan because of court challenges citing the African nation’s human-rights record.  A protest against UK deportation flights to Rwanda in London last year. Photographer: Chris J Ratcliffe/Getty Images Aliko Dangote concluded a multibillion-dollar deal with Ethiopia to build a fertilizer plant that may help transform the Horn of Africa nation’s farm-dependent economy. Africa’s richest person will own 60% of the facility that will be built at a cost of $2.5 billion in Ethiopia’s eastern Somali region and place the country among the largest fertilizer producers, Prime Minister Abiy Ahmed said. A deputy governor at the Mauritian central bank quit following weeks of tension between the monetary authority’s top managers. Gérard Sanspeur announced he was leaving his post on Friday, and the Bank of Mauritius confirmed his resignation. Earlier this week, Prime Minister Navinchandra Ramgoolam said Rama Krishna Sithanen, the bank’s governor, and Sanspeur were at loggerheads — a situation he said was unacceptable. Mota-Engil says Africa will remain the main growth driver for Portugal’s biggest construction company over coming years on the back of large infrastructure projects in energy-producing countries. The firm expects to get a boost from TotalEnergies’ $20 billion Mozambique liquefied natural-gas project, which is set to restart operations by the end of this year, CEO Carlos Mota Santos said.  Rwandan soldiers guard the TotalEnergies’ LNG project in Mozambique in 2022. Photographer: Camille Laffont/AFP/Getty Images The International Monetary Fund wants further talks with Senegal’s government about the misreporting of the nation’s debt, suggesting securing new funding may be a lengthy process. A delegation in Senegal this week worked with authorities to develop a set of corrective measures to address the causes of the under-reporting of loans by the previous administration. Nigeria joined other West African nations in banning exports of shea nuts. President Bola Tinubu said the six-month moratorium on shipments of the crop used in cosmetics and confectionery was needed to “secure supply for local processors, create jobs, and protect a value chain where 95% of pickers are women.” Burkina Faso, Ghana, Mali, Ivory Coast and Togo — all of which restrict exports to promote local processing — are the other main producers. Next Africa Quiz — Which bank became Africa’s most valuable lender this week, overtaking FirstRand? Send your answers to gbell16@bloomberg.net.  On this week’s podcast, Tiwa Adebayo speaks with Maputo-based correspondent Tavares Cebola, who’s been reporting on the summer festival season. Data Watch - South Africa’s energy regulator will allow Eskom to raise electricity prices by more than previously permitted, potentially further angering customers who have seen costs surge in recent years.
- Nigerian companies are increasingly opting to sell short-term debt rather than longer-term notes to avoid locking in high borrowing costs.
- A foundation linked to billionaire Jannie Mouton plans to buy South Africa’s top private-education group for about $400 million.
- Zambia’s stock market is the world’s best performer in August, climbing almost 15%, while it and Ghana are the top gainers for the year so far.
Coming Up - Sept. 1 Nigeria monthly PMI report, South Africa manufacturing PMI & new-vehicle sales for August
- Sept. 2 Gambia interest-rate decision, Shoprite results
- Sept. 3 August PMIs for Egypt, Uganda, Mozambique, Kenya, Zambia, Ghana and South Africa, Ghana inflation data for August, South Africa third-quarter business confidence
- Sept. 5 South Africa reserves & central bank government-bond holdings for August, Tunisia inflation, Mauritius inflation & reserves data for August, Seychelles inflation
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