Catégorie : English

Is Public-Private Partnership adapted to the needs of developping countries?

Posted on by Georges Vivien HOUNGBONON

It is very important for African countries to fill in the technological gap with the rest of the world. Hence, development financing has become a major challenge in the continent’s quest for growth. This was indeed the theme of the conference on Africa’s development . The challenge has become even more apparent since the World Bank published a report on infrastructure entitled “Africa's Infrastructure: A Time for Transformation”.  In response to this lack of financing, many African countries have adopted projects involving public-private partnerships (PPPs) [1]. This infatuation with PPPs is justifiable according to the World Bank’s estimations on the infrastructure-financing deficit in Africa [2]. However, in consideration of the origins of this type of financing, it is proven that the specific contexts of certain African countries do not necessarily allow the effective implementation of PPPs.

In order to finance their infrastructure, countries traditionally issue treasury bonds, bilateral loans (between countries) or multilateral loans (from development banks) [3]. Until the beginning of the 2000s, these sources were used to finance public infrastructure projects, which were usually built and managed by governments. In this process, the State calls upon private companies for the construction of these infrastructures and bears all costs. For instance, in the case of a road construction project, the State would usually launch a tender offer to select a construction firm. Then, the Ministry of Infrastructures would take care of the maintenance and the use of the road [4].

However, this so called “Public Partnership” procedure raises two issues. On one hand, it does not encourage the construction company to produce a quality infrastructure, despite the control of a project manager. Therefore, the viability of these infrastructures is often lower than expected, which results in higher costs for the State. On the other hand, the fact that public services are non-profit entities does not either encourage the State to maintain or improve the quality of the service provided.

Public concessions have been envisaged as a solution to this issue. In this case, the State finances and constructs the infrastructure and then delegates its management to a private company. This is the case today in many areas that require public infrastructures financing such as ports, weighting stations and tolls, and the exports of certain agricultural commodities. However, these concessions do raise certain issues, especially with the transfer of risks created by demands or the costs for the State to the private operator [5].

 

Sans-titre

PPPs have been developed in order to share these risks. This risk- sharing strategy is essentially a warranty clause, which provides compensation from the government to private operators when the cash flow projections are affected by unpredictable business risks. Those risks could be related to a lower demand, or unexpected higher productions costs [6]. The factors could essentially discourage foreign investors to finance these projects as they have a very limited knowledge of the economic climate in these countries.

At the same time, the State is not completely aware of the risks associated with investments in infrastructure projects either. Typically, passenger traffics of an airport or a railway are difficult to predict, especially in a context where the market is poorly developed, and technological advancements may provide short-term alternative choices to consumers. The risk is even higher when contracts are signed within international regulatory frameworks beyond the control of governments and in environment where corruption and bad governance could skew the awarding and the execution of the contracts.

PPPs were initially used in countries like France and Great Britain, which have a fairly developed market, and a robust regulatory framework. Both of these factors minimize the occurrence of risks that could impede on the profitability of these PPPs. Moreover, another very important factor is the bargaining power between the parties concerned in the execution of PPP contracts. In the countries called into partnerships, the bargaining power is more balanced than it would be in developing countries, where the returns for the companies involved in the PPP contracts often exceed half of their GDP.

One solution to these problems would be to set up technical regional agencies in charge of reviewing and signing these contracts. This approach has the merit of relying on a wider network of markets, which gives it a bargaining power. In addition to that, it would attract expertise in the analysis and negotiation of PPP contracts while responding to the need of the states involved.

Translated by Harold AGBLONON

References
[1] Here are two articles written by Simel and Foly analysing PPPs in financing infrastructures
[2] According to World Bank report « Africa's Infrastructure : A time for transformation », the funds for infrastructures in Africa has been estimated to a total of 93 billion USD.
[3] We can also mention the funds transfered from African diaspora, which exceeds the development aid (concessional funds loaned at preferential rate by developed countries)
[4] The maintenance of roads is more and more delegated to private companies which collect the rights of way from the road users.
[5] This procedure is different from privatisation because the private operator does not own the infrastructure.
[6] The MIGA Agency of the World Bank generally deals with the non commercial risks.

Is Africa suffering from its Oil ?

Posted on by Adrien DE CALAN

The Impact of Oil in the Niger DeltaIn many Central African countries, oil has become a poisoned gift. Instead of benefitting from this ressource, many countries are undermined by the effects of corruption and clientelism.

In 1992, during the electoral campaign, the Congolese President Pascal Lissouba wanted « to transform Congo into Switzerland ». Two decades later, his promise has left a bitter taste. In this small oil-state, half of the population lives below the poverty line and the country was ranked at the 140th place in the UNDP human development indicator. Switzerland seems like a faraway dream.

However, on paper, Congo seems like a dreamland, as would think former President Pascal Lissouba. The country has a 5 % growth rate, over 4 million population, a big tropical forest around the Congo Basin in the north of the country, a coastline in the south-west, the majestic Congo river in the East, an ideal climate for agriculture and of course oil. With an estimated production of 263 000 barils per day, the precious black gold is at the heart of the Congolese economy. It represents 60 % of the GDP, 75 % of the public revenues and 90 % of the exports. This is exaclty where the problem lies.

As a matter of fact, many countries in Central Africa such as Congo-Brazzaville, as well as Equatorial Guinea and Angola are affected by the « curse of natural ressources ». British economist, Richard Auty, coined the phrase in 1993 to describe this paradox. The abundance of natural ressources has the opposite effect. Instead of encouraging growth, it slows down the economic development.  However, other countries that are less priviledged by nature are much more efficient economically.

Many political and economical explanations have been found to explain this situation. Oil (as well as other natural ressources) relies on a « rent economy », thus transforming the political game into a fight for ressources. In a recent article*, political expert Michael Ross associates three direct consequences to this situation. Oil rents support the authoritarian regime, promote corruption and clientelism and cause conflicts and civil wars (in Congo-Brazzaville and Angola for example).

Oil does promote a fast and relatively high economic growth. However, it makes the countries more vulnerable and more dependent on the volatility of oil prices. The appreciation of the currency can also have a negative impact on the exports in other sectors. Thus, imports will be favoured to the detriment of the development of the national production and diversification of the agriculture and industries.

A poisoned gift

If there are no institutional control or strong safeguard, oil can indeed become a poisoned gift. « The countries that depend the most on oil are the least democratic, the most corrupt and have the highest inequalities », bluntly states Marc Guéniat, survey officer for the Berne Decalaration (a Swiss NGO that analyses and identifies the role of Swiss traders in African oil-states). «If not a direct link, we can say that there is at least a correlation between oil and lack of democracy. However, some oil-states like Norway are models of democracy. »

Oil rents support the post colonial and neo-patrimonial African State. In this model, the ruling class mixes up public property with private interests and uses power to accumulate all the wealth shared by a small and priviledged class of people. A recent case of illegal assets under investigation in France involved Gabon, Congo-Brazzaville, Equatorial Guinea and Angola. Heads of State and their close relations and children are also involved in cases of concealment of stolen assets and accumulation of luxurious goods (mansions, appartements, vehicles) that are not justified by their positions and their declared income.

In these countries, the people who manage the oil sector and the economy are generally very close to those in power. For instance, in Congo-Brazzaville, Denis Christel Sassou Nguesso, son of the current President and deputy of the Oyo district, is also the Deputy General Director of the oil sector downstream of the National Oil Company (SNPC). In Angola, President Eduardo dos Santos' children also hold key-positions. Isabel or « Princess », the eldest one, is ranked by Forbes as the richest woman in Africa. She holds shares in many companies in Angola and Portugal. José Filomeno, her brother, manages the sovereign wealth of the country. Teodorin Obiang, involved in recent cases of illegal assets, is currently the Defence Minister and 2nd vice-president of Equatorial Guinea.

« One group of people controls the central bank in these States. They think their country is a playground. There are many latent conflicting interests, in Congo-Brazzaville for instance. The director of the SNCP (company managing oil contracts) is Denis Gokana. He is also the founder of the main private oil company in the country, African Oil and Gas Corporation, and signs deals with the State », claims Marc Guéniat.

Treating the disease

What are the solutions for this dreaded disease?

According to the Swiss researcher, the first and most important step is transparency. For him, "the public tenders should have clear and precise criteria. All the financial statements of public oil companies must be published. At the moment, the actions of these companies are very unclear. The financial statements of these companies are nowhere to be found. In other countries such as France, it would be unthinkable for public companies to not publish their financial statements and report their activities".

The Extractive Industries Transparency Initiative (EITI) was launched in 2003 to gather companies, NGOs and States willing to respect the norms on the improvement the governance of natural ressources. The countries mentioned above are far from being the best example. Gabon was removed from the ITIE because there was « no significative progress » on their part. Equatorial Guinea applied to join in 2007 but could not become a member because they did not fulfill the elligibilty criteria. Angola did not want to join the Initiative. Congo-Brazzaville has joined the ITIE and significative progress has been seen by the civil society. The State has indeed published the 2013 report on 31st December 2014 on all the oil revenues and its importance in the country's economy. The civil society claims that there is still a lack of transparency regarding some contracts, especially with Chinese partners.

In the long run, the reinforcement of the counterpowers and institutions is the solution. The oil found recently in Ghana should be beneficial to the country, according to researchers Dominik Kopinski, Andrzej Polus et Wojciech Tycholiz**. After many alternations and a peaceful succession to power, democracy is solidly implanted. The economy in Ghana is diversified and the civil society is very vigilant and demands a proper legal framework for the exploitation of oil. Thus, the country should be protected from the « disease of oil ».

Botswana is yet another example. The country's diamond industry is very successful. Even before this industry developped, the country had very stable institutions. Political leaders were determined to favour the national interest over any tribal interests. The authorities implemented transparent rules, such as the transfer to the public authorities of the tribes' rights to exploit mining industries. The budget is also managed responsibly. The diamond industry cannot fund any of the public expenditures.

The « natural ressources disease » is thus, nor automatic nor untreatable. As say World Bank experts Alan Gelb et Sina Grasmann***, « poppy seeds are not responsible for heroin addiction. The most important thing is to strengthen the people and the institutions in the exploitation of natural ressources».

The challenge here, is to use oil revenues as a lever for redistribution and investment in order to diversify the economy and develop education and health system. This challenge is huge but necessary for these countries where the youth is eager for a good education, employment and opportunities. The oil sector, alone, will not be able to take up this challenge.

Translated by Bushra Kadir

*Ross, Michael L., What Have We Learned about the Resource Curse? (June 20, 2014). Link: http://ssrn.com/abstract=2342668

**Kopinski Dominik, Polus Andrzej et Tycholiz Wojciech, “Resource curse or resource disease? Oil in Ghana”, African Affairs, 112/449, 583–601

***Gelb Alan, Grasmann Sina, « Déjouer la malédiction pétrolière », Afrique contemporaine 1/ 2009 (n° 229), p. 87-135

URL: www.cairn.info/revue-afrique-contemporaine-2009-1-page-87.htm.

Land policies in South Africa

Posted on by Rubrique Analyse Economique

Sans titre"When the missionaries came to Africa, they had the Bible and we had the land. They said 'Let us pray.' We closed our eyes. When we opened them we had the Bible and they had the land." Desmond Tutu

Land in South Africa is both a controversial and an important topic. It is controversial because the Native Land Act set in 1913 excluded the vast majority of native South Africans from owning land while favoring the Afrikaners (white settlers). As a matter of fact, only 7% of the agricultural land was set aside for the black population, though they comprised nearly 70% of the population at that time[i]. An important topic it is as the unemployment rate in South Africa is high and is even greater in rural areas. Therefore, restructuring the land could lead to potential social and economic gains.

When Apartheid was brought to an end, a new government was elected and with it the hopes of change for most South Africans. Thus, it is crucial to examine if there has been a significant change in the distribution of land in South Africa since then.

The initiative of the Government 

In 1994, at the end of apartheid, almost 90 percent of the land in South Africa was owned by white South Africans, who make up less than 10 percent of the population[ii]. The newly elected government promised that it will redistribute one third of the land to the black population. It developed two fundamental actions in order to resolve the problem: redistribution and restitution of the land.

At first, the government focused on the redistributing the land. It consists of buying the land from the owners that benefited from the Native Land Act and then restore it to the population that was evicted. This action is also known as the “willing buyer, willing seller” method : in order for the government to obtain the land it has to be bought on the market first. And for the land to be found at the market, it has to be sold by the current owners. Of course, the owners are not forced to sell their land.

But, restitution is another important action undertaken by the South African government and is complementary to distribution. Indeed, this practice consists of donating to the population that has been harmed by the Native Land Act a cash payment rather than the land itself. It is quite a popular deal for poor residents in urban areas that have no desire to return to the rural areas. However, as with any policies, there are limitations to what has been achieved so far…

Limited Actions

The government promised that it would redistribute one third of the land; however; 20 years later less than 10% of the land has been given back.[iii] How can this failure be explained?

Initially, redistributing the land is not enough. Education during Apartheid proved to be insufficient and as a result new owners lack the necessary knowledge and skills required to operate the acquired land. In addition to this, operating a farm also proves to be quite expensive; therefore new owners that suffer from financial constraints do not have the sufficient means to accomplish their work. Such problems need to be addressed in order for South Africa to progress.

Progress and Prospects 

Supporting new farmers is an important step that should be taken by the South African government. Subsidies (money support) could be granted to them. Not only does it facilitate the selling of their agricultural products, it also allows them to buy machinery and equipment that facilitate their work by making it more productive. On a larger scale, more ambitious projects should be proposed by the South African government. Such projects include education and government spending that help future farmers and narrow the gap that was created during Apartheid. South Africa can learn from its neighbours that suffer with the same problem.

On the one hand, there is Zimbabwe with its radical measures such as seizing the land and redistributing it in an arbitrary manner. This method has many implications. At first, it is important to admit that even though South Africa and Zimbabwe share the same problem, they choose to deal with it differently. Mandela’s ANC (African National Congress) fought for racial equality, when it saw that land distribution represented a topic of hatred and potential payback for native South Africans, it was not seen as an urgent objective even though it remained important in the agenda of the government. For instance, when examining at the budget granted to land reform (1% of the South African budget as of 2013)[iv], we can observe that this issue is dealt with caution. Also, confiscating the land (without compensation for the owner) is forbidden by the South African Constitution. In the case of an (unlikely) constitutional reform, such land seizing can harm the South African stability, and can have negative long term consequences.

On the other hand, there is Namibia and its more subtle approach. In Namibia, land has to be bought individually either with the buyer’s own money, or by making a loan facilitated by the Namibian government. This method proves to much more successful as a quarter of the land has been redistributed since the country’s independence in 1990. Surely, South Africa can benefit from the Namibian experience as so far only 8% of the land has been redistributed.[v]

In conclusion, we can assert that the South African government presents noble intentions regarding the reform of land, especially when we examine the procedures made available. However, such methods have proven to be limited. As a solution, the agricultural market should be regulated while supporting new farmers. It is unlikely that in the future extreme solutions such as seizing the land would be proposed as it is illegal and represents too much of a danger for the rainbow nation. Perhaps a change in the methods employed can be expected in the future as President Jacob Zuma recently declared that:  “foreigners will soon be banned from acquiring South African land”.

Kgebetli Moele: Room 207

Posted on by Lareus GANGOUEUS

kgebetliWhile writing this article, I realized that this book triggered within me, some sort of delight as well as questions. For some reasons, beyond me, I found that observing this breeding ground, situated at Van der Merwe road, somewhere in Hillbrow (the infamous neighborhood in Johannesburg, known as a place where violence is prevalent) fascinated me. This ill-reputed commuter town was also known as a city of dreams.

Room 207, a breeding ground

A group of six young black south-Africans, products of the post-apartheid period, live together in a dingy room in a building at Hillbrow. They occupy the room 207. They are mostly rejects of the University of Witwatersrand in Johannesburg. For most of them, this was a result of financial constraints. Intellectual resources were not enough to take them through this mastodon university that was supposed to help them touch the skies and destroy the glass ceiling of the South-African society.

At the beginning of the novel, the narrator describes the profiles of each room occupant. In truth, they are not all disenchanted students. They also represent the ethnic plurality of South-Africa. They are all black but are also Sotho. Pedi. Zulu. Tswana. However, none is Xhosa. This is an interesting point, as these individuals are not only a reincarnation of the people in power but servants of the economic power of the white.

It is important to note that this book was published in 2007 during Thabo Mbeki’s tenure as president.

Their cohabitation is a happy one. The god, Isando, watches over them during their consolatory episodes of binge drinking. Like all young educated people, the occupants of room 207 buildup a picture of South Africa without the sordid aspects of reality, without accusing her as a culprit in their lot in life.

Self-examination by the South African youth (still in search of themselves)

As I write this article, I find it surprising that, Kgebetli Moele  does not allow his whimsical and pleasure-seeking characters be saddled with mistakes of the past. This is however, not the case in Disgrace, the famous novel of Maxwell Coetzee, Nobel Prize winner for Literature. In Disgrace, the heaviness of the past is adequately felt and the fear of tomorrow resonates loudly.

In Moele’s Room 207, these former students question themselves on the condition of the Black Man (the one singular debate of the African continent), violence and his self-destruction.

There is no reason that can justify the action of men raping a 3-month old baby, shooting aimlessly at a wild crowd during a party and still leave the neighborhood to rot. At least, this is what they discuss without much illusion. It is at this point that Kgebetli Moele makes a great read and allows us relate individually with the lads occupying this room.

Insecurity and Comfort

At this stage, I must describe to you the personality of each of these characters: Modishi, Molamo, Matome, D’Nice, Zulu-Boy and the narrator Noko. Using different value systems, each of them searches for opportunities. With some form of subjectivity, the narrator transcribes these images as representatives of the fight for survival.

He describes the fierce battle, the constraining conditions through which they must go through. For example, they had to ensure they paid monthly installments to a money lender, who they had never laid eyes on but who had at his disposal, an army of slaves who helped him collect his payments. It is metaphoric. The factor of insecurity begins to appear.

The narrator also takes us by the hand, leading us through the town of Hillbrow. This town reminds me of a story that my best friend likwérékwéré* told me. He described it from his state of being a foreigner but of African descent, who almost lost his life on a side walk. Here we see that, Kgebetli Moele, narrates without mercy, the issue of Xenophobia, through the lips of Zulu-Boy.

I think that beyond the unattached style of the writer-which resonates through the discussion of these young men, the high point of the novel is the final exit from room 207. Their exit from comfort and then from Hillbrow-which most of them abhor. Kgebetli Moele succeeds in taking the reader to space where he is confronted by the terrifying reality of life.

In the same space, same breeding ground, some find their way and others perish. It is heart-breaking, touching …it is today’s South Africa…it is life. It is good literature.

Now, let us talk about the carnal relationship that exists between JoBurg, Hillbrow and its residents:

Welcome to Johannesburg. This time you really felt it. Your blood has been poured and mixed with its sands. You are now in perfect sync with the town. Your blood runs in its veins and it also runs in your blood.

Translated by Onyinyechi Ananaba

Room 207, Kgebetli Moele – published in 2007 by Kwela Books –Translated to French by David Koënig, in 2010, 269 pages


 

Innovative development financing in Africa

Posted on by Pauline Deschryver

1852367421Many different financial instruments coexist to support the development of the continent. The main source of funding development in Africa is the public development aid which has already provided 125.6 billion USD dollars to 160 countries. Other sources that are not linked to any multilateral organisations also exist. Some are developped by the recipient countries themselves, such as public-private partnerships and recourse to debt. Other sources involve the transfer of funds by the African diaspora. According to the World Bank, these funds reached 351 billion dollars in 2011. It represents more than the double of the public development aid.

These financial flows have a mixed impact on development. The efficiency of multilateral development aid is questioned. A growing number of donors are intervening to increase the efficiency of multilateral aids, improve information and predictability and reduce the amount of multilateral funds while providing funds to more countries. Some vulnerable countries do benefit from voluntary aids called New Deals. It has been observed that since the 1980s and 1990s, private investments have taken the lead on public aids. More and more public-private partnerships have been developped by individuals and companies. Thus, more and more innovative sources of funding of development have been implemented. They are more consistant and predictable than the public development aid. These innovative systems involve public and private entities that fund local companies in a more sustainable way. For instance, Danone Communities is an investment fund that has shown great results. The aim of these new funding mecanisms is to reduce poverty and inequalities and compensate for the financial deficit, in accordance with the Millenium Development Goals. It is crucial to reach these goals in a context where the needs of the countries are increasing while budgets for public development aid are tightenning.

There are four main types of innovative funding.

1. Voluntary contributions : they are implemented by the Millenium foundation to improve health system. It also includes the funds immigrants invest in their home country.

2. Compulsory contributions : these are taxes on national and international financial transactions (taxes on air tickets and possibly on financial transactions).

3. Loan guarantees : these are pre-funding mecanisms on financial markets covered by a public guarantee.

4. Various market-based mechanisms such as auctions of carbon dioxyde emissions.

There is a controversy over taxes on financial transaction. This tax is an efficient way to raise money without weighing on financial markets. At a rate of 0.005 %, it could help raise 30 billion dollars annually. Nevertheless, this tax is very controversial because of its public opportunity.

Other innovative sources of funding include Output Based Aid programs of the World Bank and mechanisms of decentralised cooperation and carbon compensation by companies. Thus, the GERES NGO intervenes in Cambodia and Africa since 1987 to manufacture and sell solar ovens.

These innovative fundings are all the more important since public development aid is lessening. The African continent is attracting new donors such as China, Brazil, Russia. However, South-South funding follows a different set of rules. These countries invest in building infrastructures from the profits of natural ressources, develop the private sector and give priority to turnkey projects. They are more flexible and demand less in return from the countries they invest in. These new investors tend to develop the private sector and favour projects directly involving companies. These projects are on the rise but also more likely to suffer from corruption. It is difficult to gauge the actual impact of these investments for the development of the continent. These innovative sources of funding are crucial to compensate for the lessening of funds available to support development. Although the public development aid has a central place in funding the development of African countries, other innovative sources are essential to raise consistant and sustainable funds. However, the real issue here is whether these funds are really appropriate for the needs and economies of African countries.

Translated by Bushra Kadir

The African Diaspora : the Holy Grail of Africa

Posted on by Rubrique Entrepreneuriat

The Challenge of returning home

There are many brilliant minds who have left the continent in search of a better education and better opportunities for work. It is easy to accept this phenomenon if we think that the final target is to acquire relevant and solid expertise that will be used to benefit their respective countries and lead to economic development. However, it is often observed that students who travel abroad to pursue their studies usually feel some hesitation at the prospects of returning to their home countries after completing their studies.

There is no surer means of developing Africa than through the efforts of her citizens who have gone to study in foreign countries. In addition, they must take up the challenge of returning home, in order to create and develop their countries. Africa is in great need of her returning Diaspora. On the other hand, we cannot over state the importance of attractive opportunities, this will enable the returning Diaspora to easily integrate and participate in wealth creation. When we speak of wealth creation, we mean ‘‘the creation of new sources of wealth’’. This is because the last thing Africa needs is the return of over qualified citizens, whose sole aim is to find a stable job and cling to it no matter the consequences. Such state of mind will certainly not resolve Africa’s current issues.

Nurturing an entrepreneurial state of mind

Without any doubt, Africa needs innovation and creativity. This means the ability to detect problems in the society and find solutions to resolve them. In fact, ideas that may seem simple in more developed economies can become innovative projects if they are adapted to the local environment and if they can cater to the basic needs of the African population. In this respect, entrepreneurship is the best way to bring about an economic boom across the continent. There is nothing more important than the creation of companies and innovative start-ups which will improve the daily life of people and at the same time create employment. The latter not only decreases unemployment but will also allow the other Africans in the Diaspora to realize that it is possible to make a difference with a little consistency and a touch of creativity. Fortunately, it seems like this state of mind is slowly spreading amongst the African Diaspora. Although the beginnings of this movement seem slow, we still see entrepreneurial initiatives spear headed by young graduates of the African Diaspora springing up. We are proud of their efforts and we urge them to continue in this path so that their projects can serve as models to others who wish to return home and launch out their businesses.

Entrepreneurs from the African Diaspora who have returned home

Abdoulaye_ToureAbdoulaye Touré, a young Senegalese engineer, is a graduate of France’s Ecole Polytechnique. He specialised in the field of Energy. With six other young graduates, most of them Senegalese, he founded a start-up company called Baobab Entrepreneurship. The aim of this company is to promote entrepreneurship in Senegal through the use of Information and Communications Technology (ICT). Abdoulaye is of the opinion that Africa presents a lot of opportunities that entrepreneurs can take advantage of, as there are many problems and unsatisfied needs which need solution-driven minds. Furthermore, one of the factors that prevent the African Diaspora from coming home is the fact that they are already well integrated in the professional standards in the Western world. However, this can be resolved by increasing from France the career and entrepreneurial opportunities that exist in Africa.

  Olabissi_AdjoviOlabissi Adjovi is another entrepreneur of the Diaspora. He is from Benin but he is based in France and conducts his business in Senegal. He founded a start-up, Ouicarry, with some of his Senegalese colleagues. The objective of the start-up is to enable the mailing and delivery of parcels to and from Paris and Dakar. For him, Africa’s major advantage is the prospects for growth that the continent presents. Also, one of the reasons that people of the African Diaspora do not return home is because before their departure they did not have a firm intention to return home after completing their studies. He is convinced that if more young people lead by example, others will be convinced to take the leap.

Malick-Diouf-300x221Malick Diof is another Senegalese entrepreneur. He is the co-founder of the startup-Lafricamobile. It offers communications solutions for African companies and the Diaspora around the world. For him, one of the important features that encourage entrepreneurship in Africa is the flexibility of clients, suppliers, employees, etc. Also, the labor force is becoming qualified and hirable at competitive rates. However, the lack of infrastructure prevents people from returning home. Malick believes that one of the ways to persuade young people of the Diaspora is to challenge them and highlight that they have an important role to play in the economic development of their respective countries. He is greatly convinced that Africa can and will only be developed by her sons and daughters. That is why he is motivated to do his bit.

In conclusion, it is encouraging to see initiatives spear-headed by people of the African Diaspora flourish. These entrepreneurs have dared look beyond the assumptions of logistic difficulties and tough conditions of Doing Business by launching their own projects. We hope that this generation of entrepreneurs will inspire a movement of innovation across the continent.

Translated by Onyinyechi Ananaba


 

Diary of a trainee entrepreneur

Posted on by Emmanuel LEROUIEL

My name is Emmanuel Leroueil. I am a strategy consultant based in Gabon and I have worked in other African countries too. A few years ago, I took part in the creation of Terangaweb – l’Afrique des Idées. Since I moved to Africa about a year and a half ago, I did not contribute to the website and the association as much as I would want to because I could not put my "ideas" into "action". It was easier for me to write and talk about Africa when I was not living there. Now that I am back, I am busy with many activities and I feel like I do not have enough energy to take part in the debate. This «Diary of a trainee entrepreneur» is an attempt to put my "ideas" into "action". I dedicate it to Réassi Ouabonzi, for his constant commitment.

My vision of entrepreneurship in Africa

Like many profesionals such as bankers, consultants and corporate lawyers, I have studied business plans of large, medium and small companies. With my work, I have observed that older companies have a sustainable economic performance but have difficulties to grow. Business creation is very important for the development of the economy of African countries.

Having an entrepreneurial mindset, I want to help meet the challenges faced by many countries on the continent such as the creation of jobs in a context of demographic explosion and the creation and redistribution of wealth. The creation of dynamic companies is a major concern. Here are some ideas I want to share with you to improve the current situation.

1) Focusing on simple businesses addressing people’s basic needs (production of vegetables, bakery, chicken farming, cooking, etc.) on existing markets, and on businesses where the production/sale cycle can be improved.

Investment in these sectors might seem logical. However, there are two main trends that I have observed.

The first and most common one is that small African investors systematically invest in usual small businesses without improving them. For instance, in the taxi business, everybody knows the price of a standard car to make a cab (between 2 and 3 millions CFA Francs for a second-hand car bought in Gabon). Everyone knows how the taxi-industry business model works. The taxi driver rents the car and pays a pre-determined amount of money. He keeps the remainder but if he does not earn enough money, he has to pay the amount regardless. This amount is known and the risks and profitability are quite low (around 75 000 CFA Francs per week in Gabon). In ten months, this investment becomes profitable while the market continues to absorb the increase of the offer. This example can be applied indefinitely, like the trend of telecenters (public payphones in the 1990s) or cybercafés, etc. Most real estate investments are similar to this model. These small businesses create extra wealth but do not really have any ripple effect on the rest of the economy. There is no increase in productivity.

taxi-redim

A second trend that appeared more recently in Africa, is followed by the majority of start-up incubators. It gives priority to companies focusing on innovating or often non-existing segments: services linked to telecoms or Internet, sustainable energies or creation of high technology devices. Of course, some of these business models can succeed and are useful to both economy and society. However, they are riskier for investors since demand usually has to be created, flexibility has to be acquired for the product to meet with clients demands. Furthermore, economic and operational balance has to be reached in order to develop the company without using existing ideas… Undoubtedly, these start-ups have high failure rates.

Klab

In Africa, there is always loads of opportunities in simplest sectors where consumers demand already exists. We can bring some improvements and professionalise their organization because the competitors are often informal or under-productive. It is necessary to distinguish oneself from existing offers by implementing small innovations. There are multiple change levers: more efficient production tools, different distribution/sale channels that are closer to the customers, superior quality requirements and improved marketing of the products… These small innovations provide an added value to consumers and, eventually, to society. Nevertheless, the main interest of these businesses is to be able to make a quick scale change, and then to have an easily replicable model.

2) Choosing duplicable and suitable industrialization projects right from the start.

More concretely, it means that if you want to create a bakery, you should already start thinking about a "pilot project" to open a second, third, fourth store. And you have to take into account the failures and successes of the first project. This ambition is the best way to bypass the issue of access to funding that are decisive for African entrepreneurs (http://www.omidyar.com/insights/accelerating-entrepreneurship-africa-report). The ideal solution is to start the pilot project with your own funds. Thus, it is important to choose a business where the initial investment is not too high and where it is possible to progress gradually. The pilot project's income flows must then allow to partially fund the second investment wave (requiring businesses with short incomes cycles and positive cash flows). Above all, they have to allow the production of accounting data on the relevance of the project’s economic model, and activity history, which will help to attract investors (private equity) or convince bankers to give access to credit.

Of course, the duplication of the pilot project will not be easy since new issues can arise. How to store a bigger production? How to distribute a bigger production? How to replicate the model on new geographical markets? How to face embezzlement/malpractice with empowered teams and a weak creator/investor control? These difficulties are real and are part of the growth path for any actual and upcoming business in Africa. But they can be overcome.

Based on these ideas, I launched my own business creation project a month ago.

I plan to implement intensive greenhouse vegetable production around Kigali in Rwanda.

This Diary of a trainee entrepreneur is an opportunity for me to share this experience and the practical lessons I will learn with readers interested in business creation in African countries. The next post will provide details on the investment I made for this project, and will show how it will apply the ideas mentionned in this article.

Translated by Olivia Gandzion

Map Kibera: first step towards bottom-up slum upgrading

Posted on by Caroline Guillet

When writing about slum upgrading, I’ve said that I dreamt of a participatory process in which every individual slum dweller could express their needs and ambitions for the slum. Through this process, these people could come up with a master plan that would enable NGOs and public organizations to work hand in hand for the coordinated upgrading of Kibera. Such process does not exist yet. However, I know of one organization that collects and synthetizes data on Kibera, using participatory processes and enhances the work of dozens of civil society organizations. This organization is Map Kibera and is one of my favorite organizations working in the slum.

 

security-map

 

Map Kibera Genesis

Map Kibera was created in 2010 to fill in Kibera’s ‘information gap’. Its founders noticed that Nairobi City Council mapped the slum as a forest, and that it was absent from online mapping resources such as Google Maps and Open Street Map. In addition, even though many NGOs and public institutions are involved in collecting data on the place, none of this data is displayed at the local level. By introducing participatory mapping in the slum, Map Kibera aims at bridging that gap.

Beyond the envy of improving the information of the field, the organization aims at empowering citizens and giving them a say in the process of governance by teaching them how to report on their own environment. In the informal areas, more resources, reports and studies do not involve community participation in data collection. Teaching people from the community how to collect data is also a way of teaching them how to use that information to report on the hardship they face themselves. It allows greater participation of local people in the democratic process.

Empowering through mapping

The association decided to train 13 young people from the 13 villages of Kibera on how to use OpenStreetMap. During three weeks, and with the assistance of local GIS professionals, Map Kibera collected data through the use of GPS using open source software.

 

datacollection

 

The project started with a feasibility assessment allowing the youth-led organization to locate appropriate places and partners. The incoming partners received training and went into unmapped areas to collect data. They then uploaded data onto the open street map. Afterwards, the partners printed the map and introduced it to the local people. These meetings were aimed at raising awareness and allowing better cohesion between the various villages. In addition, Map Kibera stared with a blog on featuring a wiki space allowing stakeholders to discuss the project’s planning.

One year after its creation, Map Kibera implemented a strategy to allow people to access the information, displaying maps to the rest of the community. Maps are painted on the walls to show people where to access public services. Gathering the data helped members of the community meeting with the local leaders and the various social workers in the slum. Through this, they created a wide network to distribute the maps even more accurately. They also get to know more people who can help gathering more accurate data.

Impacts

Amongst others, Map Kibera created a security map. This map is extremely useful for the community as it indicates black spots – the areas where it is dangerous to walk by day and night. Thanks to the grassroots knowledge of young people, the mappers were able to locate the places where other unemployed youngsters wander. The lack of income and opportunities in Kibera push them into crime. They take drugs and attack people, usually causing serious injuries or death. This map serves the general interest as it allows Kibera dwellers that are coming from a different village to be aware of the places where not to walk.

If the maps serve the community, interestingly they also had an impact on improving the urban environment. Maps have an indirect impact on the urban space. In 2010, UNICEF funded another map on water and sanitation in Kibera. However, some of the villages did not have water. Map Kibera was able to partner with the NGO WASUP in order to locate the places with lacked adequate sanitation. With the information, WASUP was able to build water tanks in these areas.

Sustainability at core of the project

The project is economically, socially and environmentally sustainable. Economically, the Trust is working as a firm, selling maps to the various stakeholders and paying young mappers – providing them with employment. They also manage to get income for themselves when funds are available.

The sustainability of the project is also ensured by its ability to improve the state of young people (to a small extent as only a few youth are necessary to collect data for each map) and making each mapper an actor in the development of the slum. At the community level, the information is useful both to the slum dwellers as they are provided with useful information on where to walk or where to find adequate sanitation services. Indirectly, providing other organization with these information has allowed planning for more adequate services throughout the informal settlement.

From coordinating service provision to upgrading the slum

By developing a network of local stakeholders, Map Kibera has managed to become an unavoidable actor in the field. They gather all necessary information for NGOs to work efficiently. They have the necessary information to maximize their impact on the slum and work in a coordinated manner. In that regard, Map Kibera has proven information management to be actually useful in impacting both the community and its urban environment.

 

Article originellement paru sur le blog de l’auteur : http://carolineguillet.com/2014/05/18/map-kibera-first-step-towards-bottom-up-slum-upgrading/

Map Kibera Website: www.mapkibera.org

Why is media freedom questionnable in Congo-Brazzaville ?

Posted on by Adrien DE CALAN

Congo – Brazzaville is known to have a very fragile media in Central Africa. Since the country transitionned to political pluralism after its Sovereign National Conference in the 1990s, the media was also diversified. However it became more and more difficult for the journalists to be independent given the structural difficulties and the concentration of power in the hands of a few people.

A single newspaper for the whole country

The difficulties encountered in the difficult pressare absurd. Dépêches de Brazzaville is the only newspaper in Congo. It is completely commited to President Denis Sassou Nguesso. Created in 1998 by Jean-Paul Bigasse (the President's communication advisor), the newspaper was published every month in four color printing. It then turned into a weekly newspaper in 2004 and then a daily in 2007. It is one of the few newspapers to have computerised editing, a printing press and is subsidised by the State. It is the only affordablenewspaper (200 FCFA) whereas other newspapers cost at least double the price and do not receive any financial help from the state.

Other newspapers in Africa are as fragile economically. The costs are quite high in the written press, especially paper, purchased in the neighboring countries the Democratic Republic of Congo, and the printing. Except two well established newspapers, Dépêches de Brazzaville and the bi-weekly La Semaine Africaine, other newspapers such as La Rue dies and Tam-Tam Africa are published very irregularly depending on the vagaries of the troubled economy. Their journalists earn a low income and sometimes no income at all. Although there is officially a collective agreement that sets a minimum wage of 90,000 CFA francs (137 euros), it is very rarely followed.

This economic vulnerability has a direct influence on the content of the articles. It partly explains the confusion in many newspapers between articles and advertisements appearing in many media that are not presented as such. Unsufficient advertising and low sales weaken these newspapers even more. Thus the "comorra" (originating from the Democratic Republic of Congo) is widely practiced by many underpaid journalists who are paid to publish a specific press release or article.

Dangerous liaisons between politics and media

From this economic vulnerability stems other issues, one of which is the dangerous liaisons between journalism and politics. According to researcher Marie-Soleil Frère, "in Congo, the majority of the media is the instrument of individual strategies of conquest or conservation of power". Public media is in the hands of the political officials who play a direct role in the country's political game. As a matter of fact, DRTV television channel is owned by the general Nobert Dabira who is a senior Congolese official close to the government. MN TV is owned by Maurice Nguesso, elder brother of the president. Top Tv is owned by his daughter Claudia. Independent newspapers are often directly or indirectly linked to political parties or officials. "As the sector becomes more dynamic, the amount of the pro-government propaganda also increases in the columns of the newspapers and on the radio. The media contributes to the cult of personality, losing all credibility and respect in the eyes of the public". This statement could be read a few months ago in the Congolese barometer media, created by the Friedrich Ebert Foundation in collaboration with professionals of the country.

This context of over-politicization and media individualisation has several negative effects. It led some independent newspapers to become a platform for the settlement of scores in the political cenacle by relaying rumors about ministers and favouring anathema to a deep analysis. It also hinders the structuring of the profession and the establishment of professional solidarity that is essential in the most challenging times such as elections. According to "senior" professionals, this solidarity is all the more important because the profession is suffering from a deep lack of training, in a country where civil wars have greatly damaged the education system.

Another major obstacle to the independence of the press is the intimidation, especially when the political situation gets tougher. This is the case in recent weeks with the ongoing debate on the constitutional amendment that would allow the President Sassou to run for a third office. Two journalists were recently expelled: Sadio Kante Morel (freelance journalist) on September 22, and Cameroonian Elijah Smith (from MN TV) on September 26. He was physically assaulted two days after covering a meeting of the opposition.

In addition to this direct violence, many journalists state that media independence is primarily limited by self-censorship. In a context of extreme fragility, taking the risk of opposing potential funders or threathening the existence of the newspapers seems somewhat questionable. According to a report by the Panos Institute, even historical newspapers and reliable references as La Semaine Africaine, bi-weekly created in 1954, backed by the Catholic Church and the Episcopal Conference, negotiate "a relative neutrality" by supporting occasionally the system to avoid trouble and ensure its existence. But in an ultra-pyramidal political system, how can they escape this temptation?

Any solutions?

Solutions to these issues are not easy to find. However, there are interesting initiatives that attempt to solve these problems.

Firstly, the lack of means can be solved by international donations. It requires that the people suggest useful projects with a long-term training program and that international donors such as the United States or the European Union, would be solicited especially during the elections. In neighboring DRC, and in a different context, Radio Okapi has proved that with a substantial budget (millions of dollars) funded by the UN, a channel can provide independent information of quality. But this kind of financial help has its limits: what happens when the donor withdraws? Congo-Brazzaville is a stable and potentially rich country. In this situation, how to access such funds generally directed in priority to countries which are in crisis?

Digital technology is a major opportunity in a country where an entrepreneur, Verona Mankou, claims to have created the first African touch pad. If digital technology is probably too often presented as a totem that would solve all problems, it has at least the advantage of reducing costs and broadcasting to a much larger audience. In Congo, a small community of people living in Brazzaville has started a network in a social media platform that rapidly relays informations, especially to the connected diaspora. This network could have a major role in controlling the information although it is difficult to assess its actual impact in a country where the access to internet is limited to a minority of the population.

 

Another challenge is to be independent from politics. In a pyramidal system, it is difficult to be independent as the political debate in Congo is very limited and has lost all credibility. It is thus easier to focus instead on economic and social issues. There are very interesting projects such as the work of the Association Syfia (http://syfia.over-blog.com), supported by the European Union. The association is composed of a team of journalists who work on human rights issues in Congo. Syfia plays the role of a small news agency and offers reports on the daily struggles of citizens. The main issues concern the relationship between Bantu and indigenous people (pygmies) and the place of women in the economy and the society or environmental protection. Recently, a website http://www.ifrikiamag.com offered a comedic platform to decrypt the clichés or quirks of the Congolese society, and present some cultural operators in the country. Even media close to the President's entourage can diversify their programs and show stories and social issues that meet the actual concerns and expectations of the public, such as the new bimonthly Terrafrica and the private channel TV service Equator Service Television.

　

Some might say that media avoids the political debate and concentrates on society and culture. However, in recent years, it is largely thanks to the artists and the vitality of the Congolese cultural scene (the playwright Dieudonné Niangouna, the dancer DeLaVallet Bidiefono, the visual artists Bill Kouélany and Gastineau Massamba …) that the dramas of the recent history of Congo could be analysed.

Translated by Aymeric LOUSSALA

Dealing with death toll nowadays

Posted on by Souleymane Gassama

At what point do we start getting worried about the number of deaths?

There never seems to be a limit. While stacking up the stories, as in the case of Syria, we first start counting the deaths by hundreds, thousands, ten thousands and then hundreds of thousands… Each time this happens, the world quavers just a little, becoming our hidden guilt for our failure to act. Although, there may be sham attempts to initiate action, the next day, it becomes business as usual – we cowardly resign our efforts. We go back to our ordinary lives. Even at 120,000 deaths, the death toll never ends. After all this, the people that have died become inanimate, simple mathematical objects, numbers that we keep adding up, piling up and hoping that they will end. However, in doing this, we fall into an endless pit, it never ends.

In the wake of the Ebola outbreak, we find ourselves in this same state of addiction with numbers. At each threshold, we talk about what it would mean if the number of deaths exceeded a certain limit, as if to convince ourselves of the magnitude of the tragedy. It feels like the world is on holiday, slowly looking on and counting, as if the wait would bring some sort of painful joy. The movie keeps on rolling, even until the 4000th death. It has its plots and dramatic developments. Sometimes, featuring characters such as a Spanish lady and a dog. And in that moment, the world shows its true colours, it shows what it values the most.

Consequently, we live in a world governed by numbers. We disqualify everything that we cannot count. Even in economics, sports and politics, everything has numbers attached to them. Life is reduced to numbers and rates that either give you access or banishes you from society. If you fail at this task you are nothing. Even the dead are subject to this fate. This mind set of quantity can be seen in all domains of life. It has even infiltrated the last bastion that refused to succumb to this mentality: our emotions. We have begun to sell our emotions, trading it like it was an object to be sold at an auction house.

For our emotions to be of worth, they must have a numerical value. Whenever the tragedy of the ‘‘Grim Reaper’’ affects only a few people, this goes unnoticed. Even in news reports, we are first given the death toll and then the rest of the facts. This is the only recognition the world gives of the dead, which depends in a way, on numbers. This is the litmus test that the dead have to face.

The world is slowly becoming a homogenous block. Paradigms are slowly converging and the impact of the ideology of Numbers is increasing. The rapid way in which the world follows this ideology has two major consequences. We are abandoning some virtues that would reorient the world in a better way. Thus, the world is controlled by a handful of people whose whims govern billions of others. The concentration of power in the hands of a small group of people could be destructive. These are the effects we see in the lives of ‘‘foot soldiers’’- those who find themselves caught up in geopolitical conflicts, power struggles and economic differences. These foot ‘‘soldiers’’ are sometimes kidnapped or even killed by the thousands. This new way of doing numbers, of calculating impact, is a vicious cycle that is the cause of a lot of catastrophes. It has an unrelenting hold on man.

We could also say that the origins of these catastrophes can be found in the notion of dogmatic individualism, which has fed segregation and the notion of national boundaries.

In a less abstract world, we could consider this as a catastrophe, due to the selfishness of leaders. In play, we see the effects of capitalism that renders useless, all sense of duty that anyone could have. Instead, it fills us up with this egoistic feeling that ends of removing any possibility of going to help others in need.

These societal principles are slowly enslaving our minds. They continue to damage every feeling of solidarity, underestimating its capabilities and condemning it as benign. Finally, we have accepted this world concept, this dearth of emotion as normal, as one which we must always adhere to. This collective resignation has become the mentality of a lot of us. Moreover, to this phenomenon, we have added its offspring: the cult of Numbers.

In this world, where size is the only thing that matters, the truth has no other characteristic than that of quantity. There is no other symbolism, even if there are 6 million deaths.

Translated by Onyinyechi Ananaba

Racism in North Africa

Posted on by Hajar Chokairi

Morrocco is one of the rare countries that has valued its legacies in the Constitution and is proud of its mixed population of Arabs, Berbers, Sub-saharan Africans and Hebrews living together as different colors of a mosaic, said Jack Lang, President of the Arab World Institute in Paris in a recent interview. Although I want to believe that this is true, the recent events in Morocco leave me perplexed.

On the 29th August 2014, a street fight in Boukhalef (Tangiers) between Sub-saharan Africans and Moroccans armed with knives ends up in the brutal murder of 3 of them, one of them was Senegalese. This is only one aspect of the issues facing Sub-saharan African population living in Morocco. Others problems have arisen with the civil society and authorities. What are these issues ? Where do they arise from ? Is this a form of 'racism' ?

A temporary migration turning into a long-term situation

As a matter of fact, since a few decades now, Sub-saharan African migrants travel to Morocco to get to Europe. In Tangiers only, there are more than 1000 of migrants and 800 of them live in Boukhtalef.

They dream of a better life on the other side of the Mediteranean Sea but they have to struggle with the harsh reality of closed borders and end up staying in Morocco. What was supposed to be a short journey for them turns into a permanent and illegal situation. According to official statistics, there are at least 30 000 illegal immigrants in Morocco.

This issue is just a drop in the sea of problems that affect the country. No consistant immigration policy has yet been implemented. The illegal immigrants are rejected by the government and the civil society. The governement offers no solutions to help them and deports them from the country. In the Moroccan society, people are fearful and get defensive against these newcomers who have not gained the right to exist in the public space.

A brewing conflict between communities ?

Beyond the issue of legalisation of immigration, the Sub-saharan African people living in Morocco are rejected because of their identity.

Alcoholism, cohabitation, squatting are only some of the cultural traits associated with these immmigrants. These are the reasons why the population rejects them, especially property developers. This issue does not only concern the Sub-saharan African people. Any given immigrant population living in an islamic country is confronted to this rejection. How is this different then ? Well, maybe the colour of their skin makes it easier to think that they are culturally different too. Though, these accusations sound a lot like the racist speeches towards North African immigrants in Europe. This shows that a slight idelogical shift can bring back to surface the racism condemned elsewhere.

The integration of immigrants in Morocco and in Europe is not exactly the same. Morocco is a developing country and deals with a migration process that was not politically and economically planned and welcomed. North Africans and Sub-saharan Africans share a common identity. Morocco has hosted many festivals and exhibitions to celebrate this identity*. It is somewhat difficult to find a balance between on one hand, rightfully condemning racist acts and on the other hand, systematically stigmatizing a population for no reason. This does not help with the integration of the immigrants and the information that comes to us is not clear enough. That is why we should be very careful and make a difference between identity conflicts and criminal acts.

Racism, a Western issue ?

Some people reject this argument and think that racism just does not exist in their culture because the African identity is not at the heart of the political debate on the integration of immigrants in the Moroccan society. Others think that the debate on racism is just a result of Western ideology. All others issues such as women's rights, modern values, freedom and democracy are stifled by this strong and destructive ideology that crushes all public debate. Although Morocco has a long history of peaceful cohabitation between different religions, these expressions of inhumanity cannot be forgotten.

These recurring confrontations and the reactions they create prove that it is crucial to bring the issue of the integation of the Black community at the heart of the public debate. The legalisation will not be enough. It is important to implement an actual integration policy so that the Sub-saharan African immigrants gain a right to exist in the public space and psyche in North Africa.

*http://terangaweb.com/lafricanite-maghrebine-phenix-aux-plumes-noires/

Translated by Bushra Kadir

How can behavioral change support the fight against corruption?

Posted on by Lamia Bazir

 

JPG_NigerCorruption121114

As a young Moroccan woman who aspires to participate in the management of public affairs in my own country, I often wondered: what would prevent me from becoming a corrupt political leader? What pre-disposes so many transparent young individuals to become corruptible decision-makers? How to ensure that citizens will not abuse entrusted power for private gain? I could not obtain a complete and satisfying answer to these questions. However, my engagement in a consultancy project with Transparency International[1] gave me some elements of answer. It is particularly during my visit to Niger that I got the most insightful perspective. Indeed, I got the chance to interview Mrs. Salifou Fatimata Bazèye; one of the most powerful women in the country. In addition to her achievements as the president of the Constitutional Court, her integrity made her an icon for the promotion of rule of law. When I asked her: What made you resist to corruption? She answered: My values.

Indeed, the fight against corruption is a multidimensional process. If institutional capacity and political will are indispensable to prevent and combat corruption, we often tend to underestimate the role of culture and values. In this post, I have decided to bypass -indispensable- institution-building mechanisms and anti- corruption policies, and rather shed light on system of values as both an asset and a tool in the fight against corruption. Therefore, I will share some of the best practices adopted by Transparency International (TI) and its Nigerien chapter, the Nigerian Association for the Fight against Corruption (ANLC), in its effort to highlight transparency and merit within the existing system of values.

The ALNC: the Transparency International chapter in Niger

The ANLC plays a key role in the Nigerian civil society. It is the driving force behind national efforts to fight corruption, which is endemic in the country. Ever since its creation in 2001, the ANLC promotes reforms in favor of transparency in public and private management as well as transparency in national and international transactions. However, one of the most important dimensions of the ALNC is its activities that directly engage citizens to report and fight fraud.

In 2010, the Advocacy and Legal Advice Center within the ALNC was established with the rationale that the fight against corruption would be more effective if ordinary citizens were engaged in reporting. In that sense, the association has conducted panoply of activities including meeting and exchanges; public awareness campaigns; conferences in universities; workshops and trainings targeting youth, women, judges and elected officials; as well as the publication of studies and reports.

The fight against corruption requires both institutional and behavioral change

Hence, the ANLC attempts to tackle corruption at all scales; thereby addressing petty, grand, and systemic corruptions.

At the macro-level, it plays a key role in supporting national efforts to renegotiate exploitation contracts with foreign companies. It initiated petitions and campaigns. It also spearheads inspection missions in major industries. Even Nigerien citizens are well aware that corruption is intrinsically structural and mainly linked to systemic causes. The majority of locals I interviewed emphasized that the heart of corruption lies in the extractive industry. Referring to the big gap between Niger's natural endowment (uranium, oil, gold, vast land) and its poor human development (ranked at the bottom of the Human Development Index[2]), most Nigeriens are aware that the  terms of exploitation by foreign companies and the complicit acceptance of a corrupt political elite are the root causes that shape corruption in the country.

Nonetheless, the ANLC rejects “the wait and see attitude”, and undertakes measures that promote both institutional and behavioral change. It calls for citizens to promote change, but also to embody the values of integrity that they foresee for their country. The association deploys considerable effort to involve citizens. It aims to activate a system of values that encourages the people to control, condemn, and reject corrupt acts in all aspects of life.

Five best practices in engaging citizens

In that sense, the ALNC adopts five key principles:

1- Autonomy

The ALAC embraces the principle of “autonomization”. Its role is to inform, assist, and build citizens’ capacity to counter corruption. It does not aim to create a relation of dependency and refuses to substitute for the individuals. It rather provides citizens with juridical tools, instruments, and guidance. That includes Direct Juridical Assistance through a hot line “7777” (to foster anonymity) and through in-person complaint reception.

In addition, it mobilizes traditional and modern media such as public speak-outs, radio and television commercials to reach out to the public. It also relies on music, theater, and arts to appeal to youth and promote transparent behavior among them.

2- Inclusiveness

Furthermore, the ALNC staff organizes regular awareness campaigns in rural areas. I had the chance to participate in six field missions in rural communes, and I personally think that these are the most intense and powerful activities for the organization. In fact, these visits are impactful because they are both participatory and inclusive.

First, the ANLC integrates traditional actors and capitalizes on their educational influence. For instance, religious and traditional leaders are integrated as partners. On the one hand, chiefs of villages often play a key role in mobilizing the locals and maximizing their attendance. On the other hand, religious leaders use religious references (such as Hadiths, Quran, and Sunna) to support the ALNC’s promotion of honesty, transparency, and justice; and do even encourage citizens to report, reject, and condemn corrupt acts; as part of religious practices.

Moreover, sensitization campaigns particularly target women’s groups and youth. The ALAC's outreach strategies have been effective thanks to its gender and social considerations. Indeed, women are included –and often the major targets- of the campaign. Not only do women tend to be well organized in these structures, but they also have a spillover effect. Women’s educational role within families is leveraged by the organization; thereby aiming to capitalize on their role of “moral teachers”.

Second, awareness campaigns are not organized in a unilateral and one-way conversation. On the contrary, the locals are engaged in interactive discussions.  They are invited to define corruption, give examples, share their experiences, identify causes and find potential solutions. There personal testimonies and analyses are eye opening for participants. They are encouraged to think of corruption and directly identify with concrete examples.

3- Responsibility

TI staff encourages consciousness of the role and responsibility of the citizens. Breaking away from the discourse of passive victims, the facilitators directly point to the harmful practices of citizens: “You want the state to deliver, but what do you do for the state?” (TI facilitator, during sensitization campaign). They stress that petty corruption benefits to individuals and impoverishes the state; which consequently is less able to deliver for the citizens.

Hence, Nigeriens—women and men—are called to understand themselves as real citizens; thereby, comply with the law and respect their obligations. As an example, the ANLC facilitators highlight how the act of selling one's votes during political elections frees political leaders from any accountability. Thus, they call for a commitment of citizens at the grass-root. The power of change is put within the citizens.

4- Role Modeling

The facilitators also give positive examples of people who denounce and fight corruption. These successful cases are emphasized in order to fight defeatism and reject counter-models of people who succeed through dishonest means. For instance, the case of Mrs. Salifou Fatimata, ex-president of the constitutional court, who resisted to corruption and intimidation, is raised as a success story:  “At the beginning of her career, a man attempted to corrupt her. She sent him to jail. After that no one approached her and attempted to corrupt her. So, it is possible! “(Mr. Nouhou, secretary of TI in Niger). The ALNC asserts the need to celebrate the right examples.

5- Delegation

Last but not least, the ALNC ends every sensitization campaign with the creation of local anti-corruption clubs. These are community-based entities and local branches of the ALNC that ensures the durability of the sensitization campaign.

The boards of the anti-corruption clubs are elected by the local participants the day of the sensitization campaign. Later, they are trained to inform and assist locals in their reporting and fight against corruption. Interestingly, women do often dominate in terms of seats, which might challenge many assumptions with regard to Niger and other countries in the region.

Conclusion

To conclude, this short post does not aim to undermine the crucial importance of policies and institutional anti-corruption mechanisms. It rather aims to voice a local perspective on the question. Indeed, I consider that the leaders and locals I interviewed are pointing to a direction we should not neglect. What they refer to as “a crisis of values” is a deep factor in the spread of corruption. Thus the fight against corruption cannot be won through laws alone, it requires us to raise awareness and re-activate positive norms within society.

Lamia Bazir

[1]    I was one of the six students from the School of International and Public Affairs (Columbia University) who were selected to work on a project on Gender and Corruption. The consultancy lasted for a period of seven months (Nov. 2013 to May 2014). It involved field visits in Niger and Zimbabwe.

 

[2]    Niger was the country with the lowest Human Development Index in the world  in 2014 (0,337) 

 

Will Africa benefit from its demographic prospects ?

Posted on by Georges Vivien HOUNGBONON

Africa's future is generally described by two figures : 5.2 % and 2 billion. The first figure published in the 2012 Africa Economic Outlook* is the average growth rate of the GDP in Africa from 2003 to 2011. The second figure is the expected growth of the population in Africa by 2050 predicted by the United Nations population division in 2012. These figures are systematically used in reports, articles and by economists. More and more studies are questioning the accuracy of the 5.2 percent growth rate. However, the demographic prospects do not seem to be questioned at all. Demography is a challenge and it is important to create economic prospects for the local consumers, investors and the State.

The latest population projection of the United Nations has stated that the African population should reach 2.4 billion by 2050. This is the double of the population in 2010. This projection makes Africa the most populated region in the whole world, way ahead of China and India. This situation is very challenging geopolitically and economically. Yet, in this article, we shall only focus on the economic challenges presented by this population doubling. Even if the current level of productivity were maintained, each person in Africa will have to be equipped with the same work tools we have today to maintain the income per capita. Thus, the doubling of the population will also combine the doubling of the potential market and eventually of the cash flow for investors. Hence, demographic prospects are undeniably a strong argument to attract investors.

population 1Source: Graphic presentation of the author based on data from World Population Prospects

Prospects: the 2012 revision of the division of the population (United Nations)

However, more benefit can be derived from this population prospect by increasing the productivity of the new generations of workers from now on. African workers should be equipped with more productive tools. The use of new information technologies, the construction of transport and energy infrastructure have to be taken into account as well. Still, this approach does not take into account the increase in the « human » productivity of the worker which is more important for the use of more elaborate and productive tools. Thus, it is all the more important to improve the general health and education of the population so that the investors, the population and the State can benefit from these demographic prospects.

Even though there has been some progress in human development in the past few decades, there are bigger challenges ahead of us. Here we are not going to focus on classic indicators such as lifespan, birth rate and schooling rate but on new levers that could be used to improve the productivity of the future generations of African workers.

As far as health is concerned, recent studies such as the one conducted by Nobel Prize winner James Heckman among Jamaican children have shown that the first two years of one's life are the most important. More specifically, this study showed that the psychologic and social stimuluses received by Jamaican children in their first two years of life have a significant effect on their earnings twenty years later. Actually, their salaries have increased by 42 % on average, suggesting that a good nutrition and a positive social environment in the first two years has an important impact on the future of children.

population 2

Source : Calculations of the author based on data from the World Health Organisation

There is currently a lack of reliable statistics on child nutrition in Africa. As we can see in the graph above, 35 % of children aged 5 or less suffer from stunting in 2010. The WHO expects this rate to decrease but it will still be over 25 % by 2025. One child out of 4 will still be stunted.

In a recent press release, the UNICEF has explained that stunting is not simply an issue of low height stature; but an indicator of their health and productivity as an adult. Neurologists also agree to say that stunting is correlated with a lack some cognitive abilities. Unfortunately, after the age of 5, this cognitive skills can no longer be acquired, thus limiting the child's future economic productivity; that is to say his welfare. Hence, it is all the more necessary to take action as soon as possible to avoid these deficiences for the upcoming generations. The children born from 2015 to 2030 will be 20 to 25 years old in 2050. They will be the next generation workers in 2050.

Education is another major challenge. Some progress has been made as seen in the graph below. Access to primary education has become universal as of the year 2012. Likewise, secondary and tertiary enrolment has slightly increased. However, the enrollement rates, especially in the teriary education, are still very low.

population 3

Source: Calculations of the author based on data from the UNESCO

Another issue is the mismatch between supply and demand on most of African labor markets. As a matter of fact, the more educated are much more likely to be unemployed. This does not imply that students should be discouraged from pursuing long studies and follow vocational trainings. A recent study by the International Labour Office** showed that in 8 countries in Africa, the new graduates who found a job earned higher salaries than the job seekers with lower level of education.

Therefore, the education level is not the problem. It is rather the type of education that determines employability. It is important to encourage studies adapted to the needs of the labour market and to improve the quality of the education. The State can implement specific education counceling programs for the youth in collaboration with the private sector and subsidise vocational training programs adapted to the specific needs of the private sector. This program can be funded by a specific tax on the revenues of companies or the companies can themselves fund these vocational training programs with the financial help of the State.

Above all, Africa is considered in this anlysis as a single nation and market. However, the situation is not the same across all of the African countries. Moreover, analysts often make a parallel between Africa's demographic prospects and China's. Still we believe that governing 2 billion people within a single nation is not the same as dealing with the same amount of individuals scattered in 54 different states. Nonetheless, the conclusions in this article do apply to the majority of African countries, though they have to be tailored with specific contexts.

Georges Vivien Houngbonon

Translated by: Bushra Kadir

* Studies by Morten Jerven on the quality of macroeconomic statistics in Africa and the African Development Bank publications and the inclusive growth in Africa study published by Afrique des Idées

** The inequalities are not studied here, given that we cannot predict its evolution.

Sources :

Elder, S., Koné, K. S. 2014. Transition vers le marché du travail des jeunes femmes et hommes en Afrique Sub-Saharienne. Work for Youth N°10. Bureau Intenational du Travail

Gertler, P., Heckman, J., Pinto, R., Zanolini, A., Vermeesch, C., Walker, S., Chang, S., Grantham-McGregor, S. 2013. Labor Market Returns to Early Childhood Stimulation: A 20-Year Follow-up To An Experimental Intervention In Jamaica. NBER Working Paper Series.

Morten Jerven. 2013. Poor Numbers: How We Are Misled by African Development Statistics and What to Do about It. Cornell University Press

Economic Outlook, 2012. Development Centre OECD.

Progress shows that stunting in children can be defeated, Communiqué de Presse. Avril 2013. UNICEF.

Bruce Clarke, a Political Painter

Posted on by Tabue Nguma

Bruce Clarke was not born in South Africa. His parents who were anti-apartheid activists were forced into exile in London. It was at the School of Fine Arts, University of Leeds, that Bruce Clarke discovered his love for the Arts and Languages in the 1980’s. Following in the path of the fathers of Conceptualism, he began painting against the painting, that is to say that he became involved in decorative painting. This led him to begin merging his love for plastic arts and his need to express his militant discourse.

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His unique technique gave birth to works of art that reflect a mix of different materials (newspapers, posters, lingual signs, paint splatter, etc.), which rub against, encounter and confront each other. At the same time, they all blend together expressing a new and different meaning. Clarke explains further, ‘‘on the canvas, words and colors, words and images mix up and metamorphose. Each fragment we find or choose has to be decontextualized before they can take up a new meaning- a meaning that may not be the same we beheld at first glance. A transfiguration takes place, a transformation in fact. In a way, I tear down to build-up again.’’

Above all, these elegant graphic compositions are tools for visual and mental deconstruction. They serve to opacify and as well enlighten the mind on contemporary history and on the genealogy of our representations of the African body and its corollary, Africa.

In our present age, where the idea of Contemporary art rhymes with the powers of financial capitalism, the words comitted artist have progressively emptied themselves of all meaning. For Bruce Clarke, the words political artist refer in a way to his work, which involves the exploration of the different forms of domination which were inflicted on and which are still being inflicted on him…on this infamous object: The African body. The African body that was banished and objectified by slavery, battered and beaten by the colonial regime, evicted and starved in the post-colonial era. It remained, all along, a desired body but also, a commodity.

Bruce Clarke has a structural vision of the world that shows the coercive force of the diverse forms of domination and their effects on the actual body and the represented image of the Black man.

Beyond his exploration of the political existence of these oppressed lives, Bruce Clarke communicates a silent message, which is absent but at the same time present. This message reaches out to us through uncompromising gazes, unexpressed rages, submissive but rebellious postures of these characters. Bruce Clarke is certainly one of the greatest stylists of the black body, revealing the intimate battles against the effects of predatory power.

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He uncovers the living conditions of the African body and at the same time he constructs some sort of biopolitical message which asks the question: under what material and psychological conditions has the Black Man been able to survive since the dawn of western modernity? His works are a representation of a life that struggles to exist. They are a representation of the wretched of the earth and as Sartre would put it, their tenacity to survive. Brutalized, flogged and oppressed on sugar cane fields, defeated and crushed in numerous resistance movements-where the spear met the gun, starved by bloodthirsty, cannibalistic tyrants who claimed to be brothers, the object of Clarke’s works-The African Body, shows that he rises above very death wish.

With every baneful situation, Clarke’s object- The African Body, shows his will to live.

Bruce Clarke carries on the legacy of his parents in his fight against Apartheid. This shows on the products of his canvas: the lines, shapes, colors, and signs and in his involvment in public action. He was one of the leaders of the project Art against Apartheid held in France. This project sponsored by numerous artists involves a travelling contemporary art exhibition. This will be the starting-point for the future South African post-Apartheid contemporary art museum.

After the democratisation of South Africa, Bruce Clarke became interested in the war in Rwanda especially in the first phases of genocide. After he made a post-genocide photo report, he decided to create a site close to Kigali called The Garden of Memories. A memorial stone sculpture, which was put up in collaboration with the war survivors who came to lay stones in memory of their loved ones.

In fact, Clarke’s different paintings show us their attachment to these bodies and the way they desperately cling to a promise held precious by every human being – a hope for a better life. The becoming of the black body is partly explained in the concept called Upright Men, which was presented at the 20th anniversary ceremony of the Rwandan genocide.

These men, women and children that were victims of the barbarism that stole the last hope that we had in human nature, are now made alive through the paintings of Bruce Clarke. The human is not far from the beast… Beautiful, poetic and political tributes have been given to these human beings (1, 2, 3, 4, 5, 6, 7, 8, up to 1 000 000), who were victims of administrators who decided to separate the Tutsis as the better ethnic group and left the others to think themselves more savage than beasts. This continued till the 100 days of madness when even the Devil feared man.

For Clarke, “these shadows are silent but reincarnate witnesses, which give life to the dead. At the same time, they symbolize the dignity of human life, which was confronted by the mother of all crimes- the denial of the right to life to a whole group of people.

The objective is to publicize this historical event, which has been perceived as an African tragedy. Even so, it serves to remind humanity that in the 20th century, many other genocides took place despite the resolutions and discourse that came after the genocide of the Armenians and the Jews.”

Above this universal memorial for these victims (remembering their names, life paths, smiles and aspirations), Upright men represents all the Rwandans today who have to bear the brunt of this situation, that is, live all together after the war. In more precise words, it involves buying a shirt for someone who slit your mother’s throat after raping her, selling a phone to someone who joyfully butchered a child, riding the bus together, sitting with others in public offices and churches. They have to try to rebuild a life together that was destroyed, because life does not end because horrors begin. In real sense, living together (for all Rwandans- victims or perpetrators), despite all the carcasses around them, is a way of standing tall.

Nguma-300x196Such artistic work cannot be accomplished alone. It has to be done with other visual artists, Rwandans and Africans, so as to ensure the longevity of the idea of Upright Men. In so doing, it will be in itself a designated memorial, an intimate witness of this unspeakable event, which we must tell of.

 

The works of Bruce Clarke are an autopsy of the black body, who has been a receptor of the most extreme acts of domination (as a lab rat which has been tested to the extreme). Put side by side, these canvases unfold the long African history and open up a dark dialogue on these memories. These reincarnated beings are a constant reminder of the man-made malediction that hit the continent.

 Drowned in the darkness of enlightenment, the Black Man was taught to “tighten his belt, like a valiant man” [1], without ever tasting the fruit.

Bruce Clarke certainly shows the tragedy of the Black Man, but he also exposes the indomitable strength of one, who every day, courts the idea of death as an intrusive neighbor. In reality, no previous series of this artist has ever exposed such cruel optimism and as well, celebrated the idea of life with macabre signs.

[1] Notebook of a Return to Native Land/ Aimé Césaire. – Paris: Présence africaine, 1956

Tabué Nguma

Translated by : Onyinyechi Ananaba

Bruce Clarke Website: http://www.bruce-clarke.com/

The project Upright men: http://www.uprightmen.org/

 

The Potential Economic Impact of Ebola virus

Posted on by Foly ANANOU

Since the end of 2013, the Ebola epidemic has spread throughout West Africa killing thousands of people. Four countries of the area are severely affected: Guinea Conakry (source of the epidemic), Sierra Leone, Liberia and Nigeria. Africa holds its breath now that the epidemic has spread to the Democratic Republic of Congo. Experts believe that the it will continue to spread in the days to come. Many actions have been taken to prevent the contamination of the virus in the ECOWAS region. Some countries have gone to the extent of closing their borders and controlling all the travelers.

Although these measures are justified by the reasons mentioned above, what is the impact of this scourge on the economy of the affected countries? Rather than deploring the efforts of the authorities to contain the Ebola epidemic, we shall analyse the economic impact of this epidemic specifically in the affected countries and more generally in Africa.

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Document 1: Ebola: the situation in West Africa (affected areas, number of cases and deaths till the 9th August)

It would not be possible to put a number on the economic effects of this epidemic in a given country or area. De facto, an epidemic can affect any sector of a country’s economy. This shock can provoke a series of events that may in turn cause other shocks that will aggravate the economy. However, it is possible to identify different sectors that will be impacted by this epidemic.

In the affected countries, the government has increased expenditures that were not planned in the budget in order to take charge of infected people and to prevent the spread of the epidemic. In Sierra Leone, close to ten million dollars has already been spent in the past semester and more expenditures are to be expected for the rest of the year. This is also the case in other affected countries as well as in the neighbouring countries that have implemented measures to prevent or take care of any case of declared disease. These extra expenditures will impact, undoubtedly, budget balances no matter what funding strategy is adopted. Many public investment and development programs have been stopped, and some companies in the extractive, mining, agriculture and food sectors have been forced to suspend their activities. In Guinea, Arcelor Mittal has suspended expansion works of an iron ore mine and has evacuated a part of the workforce working on a site. In Sierra Leone, London Mining has moved out some of its non-essential staff.

Furthermore, the tourism sector is badly affected too. Fearing the epidemic, tourists prefer not to travel to these countries. The impact on the neighbouring countries is also quite significant. With the fear of the disease, tourists will not be attracted to these destinations anymore. Plus, some measures such as closure of borders or systematic medical controls seriously limit economic exchanges with the neighbouring countries and some tourists will prefer less restrictive destinations with less contamination risks.

Senegal prohibited imports of agricultural products coming from Guinea. It is very likely that other affected countries shall be in the same situation. Many companies working with these countries have also stopped buying meat and agricultural products from them. Thus, the growth rate is limited this year. According to Moody’s rating agency, the IMF and the World Bank, Guinea Conakry would lose one point of growth in 2014. The rate will be of 3.5% rather than the 4.5% that was expected initially. Growth rates are expected to decrease in other countries as well. The tax revenue targets will not be achieved. This will enhance budgetary imbalances and jeopardize development programs implemented by the authorities. Actually, health expenses caused by this epidemic will be funded by cutting investment funds or current expenses and seeking financial support or loans. In so doing, the governement will increase its arrears to some suppliers and suspend its own development programs by postponing infrastructure works that are essential to sustain economic performance.

On medium term, budgetary imbalances caused by this on-going epidemic will have an impact on the credit quality of the affected countries. Indeed, the respect of certain conditions under the supervision of the IMF, particularly in terms of budgetary management, are prerequisites for the action of financial partners but also ensure the success of interventions on the international financial market. During the past few years (especially in 2014) African countries' incursions on the international financial market have been successful. This is partly due to indicators produced by the Fund in terms of public resources management which are reassuring for investors. If these indicators deteriorate, even if they are not the result of bad public resources management but clearly linked to a shock, investors will be less likely to invest in these countries with weakened engines of growth.

For instance, a simple military coup (although not comparable to an epidemic) would be enough to tarnish a country’s image to its partners, regardless of efforts made to come back to a constitutional order. At least in this case, the economic activity continues, ensuring at least budgetary revenues to the State. With an epidemic, the firms will not return immediately. The return can be very long with the lack of strong guarantees of the country’s ability to contain the epidemic. This would result in a slower growth. So the State would not be able to follow up its financial commitments, delaying the implementation of development programs and increasing the debt burden of the economy over the medium run.

In any case, Ebola has a deep economic impact in African countries. It is difficult to quantify its consequences on agriculture, industrial production, food security. However, it is all the more difficult to assess the effects on society (destruction of families and social structures, millions of orphans, critical decrease of communal networks). It is obvious that the economic performances of affected countries and areas will be limited. In fact, if a country’s growth can usually be correlated to life expectancy (according to the WHO’s estimations, 0,5% of economic growth is gained for each extra 5 years of life expectancy), a mortal epidemic such as Ebola represents a significant obstacle to economic growth on the short and medium run, especially if it is not quickly controlled. Infrastructure and staff training expenses required for this type of disease seriously burden economic development of these African countries, which are already struggling with their own inclusive growth.

Africa still has a fragile economy. The performance of the continent can be jeopardized by shocks such as epidemics, military coup, natural disasters, … If it is almost impossible to foresee such events, it is at least possible to take necessary actions to limit their impacts, particularly regarding health and political aspects. According to Georges, in a democracy (or at least when there is an intention to build one), less onerous means exist for the economy; the same goes for health. It is absolutely possible to avoid situations that will slow down the continent’s development. Indeed, if Ebola or any other mortal diseases (such as Aids) spread that fast in Africa, it is because health systems are quite obsolete and do not allow a good management of these kind of scourges. Moreover, people’s behaviour in relation with some cultural practices – however uncontrollable – and education levels accentuate risks of contamination.

The 260 million US dollars promised by the World Bank and the African Development Bank to fight the current epidemic of Ebola will not be enough to contain the actual situation and prepare the 54 countries of the continent to other similar situations. It would be suitable for countries to already determine ways and means to strengthen their health system, implement adequate information systems and invest more in this sector but also in education. This is an equation that can seem complex, since Africa wants to accelerate its development. Thus, many African countries are adopting development programs. Nevertheless, the funds necessary for their implementation are generally not mobilised internally. These different issues encourage the states to think about a development model that would adapt to their abilities and challenges. After all, China or South Corea needed more than just a few emergency plans implemented over a decade to become the emerging nations they are today.

 

Foly Ananou

Translated by: Olivia Gandzion