US Adds Sanctions on Suppliers of Houthis

 The US Department of the Treasury published on 28 April 2025 a press release titled "Treasury Targets Vessels Delivering Oil Derivatives to the Houthis."

The Treasury Department sanctioned three vessels and their owners for providing petroleum products to the Houthis in Yemen. The vessels are registered in the Marshall Islands or Mauritius and fly the flags of San Marino or Panama.  

The US Department of the Treasury published on 2 April 2025 a press release titled "Treasury Sanctions Houthi Network Procuring Weapons and Commodities from Russia."

These earlier sanctions targeted a network of Houthi financial facilitators in collaboration with operatives in Russia for procuring tens of millions of dollars' worth of commodities from Russia, including weapons and stolen Ukranian grain.  

Criticism of US Africa Policy But No Proposed Solutions

 The Wall Street Journal published on 13 May 2024 a commentary titled "Why Russia Seeks to Dominate Africa" by Walter Russell Mead.  

The author excoriates US policy towards Africa that is based on support for democracy and universal human rights principles, comparing it unfavorably to Russia's approach to the continent.  He calls on the Biden administration to "rethink" its Africa policy.

Comment:  It is true that Russia is at the moment riding high in the Sahel region and a couple other of Africa's fifty-four countries by relying on the Wagner Group and the Africa Corps.  Outside the sale of arms to Africa and the provision of a limited number of mercenaries and armed forces personnel, its impact is not significant.  Its trade is confined mostly to North Africa, and it is not even notable there except for the sale of weapons.  Its foreign aid for the continent is nearly non-existent.  Russian foreign direct investment is a tiny fraction of global FDI.  Russia provides few loans to African countries.  Its soft power is also minimal, although its disinformation program has had some success.  Russia's engagement in Africa, however, is not a recipe for long-term success.

The author concludes by calling for a "rethink" of current US policy in Africa.  It would be useful if he provided his thoughts on what the "rethink" should look like.  Or is he suggesting the US should follow Putin's program?  

Somalia: Al-Shabaab Attacks Hotel in Capital

 The New York Times published on 15 March 2024 an article titled "Shabab Gunmen Penetrate Heavy Security to Besiege Hotel in Somalia" by Abdi Latif Dahir.

Five al-Shabaab terrorists stormed a hotel in a highly fortified section of Mogadishu on 14 March and engaged security forces for 12 hours. They killed 3 people and injured 27 before they were killed.  The attack is a reminder that al-Shabaab is still able to conduct high profile suicide attacks in the capital.

The Role of Gold and Dirty Money in the Sudan Conflict

 Foreign Affairs published on 27 February 2024 an article titled "Dirty Money Is Destroying Sudan" by John Prendergast.  

A violent kleptocratic system is supporting both sides of the war in Sudan: Russia's Wagner Group, Egypt, and Iran in the case of the Sudan Armed Forces and the UAE in the case of the paramilitary Rapid Support Forces.  Sudan's gold covers the cost of some of this assistance for both sides.  The author urges more Western sanctions on the offending external parties.  

The Role of Sanctions in South Sudan

The Wilson Center published in April 2020 a paper titled "Targeted Sanctions and Anti-Money Laundering Measures in Support of Peace in South Sudan" by John Prendergast, Hilary Mossburg, and Megha Swamy.

The authors suggest that sanctions are not a tool to be used alone, and no one is advocating for them to be the entire strategy; they are most effective when utilized in conjunction with diplomacy, public messaging, anti-money laundering efforts, technical assistance, asset forfeiture measures, travel restrictions, and other tools of financial and diplomatic pressure.

South Sudan, Gold, and Corruption

The Enough Project published in April 2020 a report titled "The Criminalization of the South Sudan Gold Sector."

South Sudan's gold sector remains ungoverned and poorly regulated. The national government, local government, and traditional leaders have conflicting interests. Gold has become the currency of choice for illicit cross-border transactions.

Dirty Deals Threaten South Sudan's Mining Sector

The Sentry published in April 2020 a report titled "Untapped and Unprepared: Dirty Deals Threaten South Sudan's Mining Sector."

Ineffective accountability mechanisms, an opaque corporate landscape, and inadequate due diligence have exposed South Sudan's mining sector to abuse by bad actors within the country's ruling clique. South Sudan's mineral wealth could do little more than spur the kind of violent competition that has ravaged the oil sector.

Targeted US Sanctions against South Sudanese

The Sentry, which is affiliated with the Enough Project, published in August 2019 a report titled "Consequences for Kleptocrats: Financial Pressures to Support Peace in South Sudan" by Joshua White.

The author argues that sanctions by the US Department of Treasury's Office of Foreign Assets Control against three individuals engaged in bribery and corruption in South Sudan is an effective way to encourage peace in the country. Going after the business holdings of the individuals being sanctioned is especially important.

Dealing with Corruption in Africa's War Zones

Enough published in October 2016 a report titled "Bankrupting Kleptocracy: Financial Tools To Counter Kleptocracy in Africa's Deadliest War Zones" by J.R. Mailey and Jacinth Planer.

The study argues that fighting corruption must become a cornerstone of U.S. engagement with countries that have been plagued by violent kleptocracy and there must be consequences for kleptocrats. It urges use of a combination of sanctions, anti-money laundering measures, and the anti-bribery provisions of the U.S. Foreign Corrupt Practices Act.

Chinese Arrested for Alleged Cyber-Hacking in Kenya

Quartz Africa published on 20 November 2015 a story titled "The Strange Case of 77 Blue-collar Chinese Migrants that Kenya Is Calling 'Cyber-hackers''' by Lily Kuo.  The government of Kenya has charged 77 Chinese migrants living in Kenya with cyber-hacking.  The government of China has been silent on the matter.  The arrests suggest a growing backlash against Kenya's growing Chinese community.

Anti-terror Restrictions Interrupt Somali Remittances

Bloomberg published on 12 November 2015 an article titled "Crossed Wires Starve Somalia of Cash" by Matt Mossman.  Somali remittances have dropped from 22 to 50 percent because of US anti-terrorist restrictions over concerns about money laundering.  An expert at Australia's Griffith University says there is little evidence to suggest the US restrictions have curbed money laundering.

Western Union in Somaliland

Foreign Policy magazine published on 25 August 2014 a long article titled "Franchise Opportunity: Western Union in Somaliland" by Michela Wrong who has written several books dealing with Africa.

The author looks at the money transfer business and the impact on Somaliland and the Horn of Africa if Barclays gets out of the business. 

Major Study on Somali Piracy

The World Bank, UN Office on Drugs and Crime and Interpol recently published a book length study titled "Pirate Trails: Tracking the Illicit Financial Flows from Pirate Activities off the Horn of Africa."  The study estimates that between April 2005 and December 2012, pirates claimed an estimated $339 million to $413 million in ransoms.  This massive study looks at the role of criminal networks, distribution of the proceeds, moving the proceeds, investing the proceeds, and makes a series of recommendations for countering the issue of financial flows. 

For journalistic accounts of the report, see "The Horn of Plenty: How Piracy Became a $413m Business" by Nick Kochan in the 4 November 2013 The Independent and "Somali Piracy: More Sophisticated Than You Thought" in the 2 November 2013 The Economist.

Threat to Somali Remittances

An estimated $1.3 billion is sent annually to Somalia by migrants.  Most of it is facilitated by Somali-American money transfer operators.  Many US banks consider the operation politically risky and no longer participate, threatening closure of the entire system.  InterAmerican Dialogue, Adeso, and Oxfam America published on 31 July 2013 a study titled "Keeping the Lifeline Open: Remittances and Markets in Somalia" by Manuel Orozco and Julia Yansura, which reviews the consequences of a shutdown and makes recommendations to keep it open.

For a related discussion, see the 29 July 2013 "Interview: Somalia, Remittances, and Unintended Consequences: In Conversation with Abdirashid Duale" concerning the decision by Barclays to close most of its money service transfer accounts.