Are African States able to finance their development ?

The durability of the current economic dynamics of African states is an acute issue, for this performance relies more on the exploitation of natural resources than on the exploitation of production factors with high added value (capital and labor). According to Kuznets’ definition [1] of economic growth as “a long-term rise in capacity to supply increasingly diverse economic goods to its population, this growing capacity based on advancing technology and the institutional and ideological adjustments that it demands”, the current dynamics needs a thorough transformation of African economies. All analysts agree on this.


The structural transformation is a must. These measures vary a lot but many of them are based on industrial sector. This process requires an improvement of conditions for pursuit of an activity in order to attract investments and favor industrial development. Here the State has to play a crucial role. The conditions for pursuit of an activity depend not only on laws and tax break but mostly on the institutions and the infrastructure quality: a politically stable country with no basic infrastructure (electricity, road, ICT etc.) is less attractive for investors than a politically unstable country with quality labor force and efficient infrastructure. Yet, only the State has the prerogatives of building infrastructure.


Articles published on this website have already discussed the many possible sources for States to finance development. It supposes that budgetary funds finance structural projects which make the countries more attractive and favor changes. However, nothing ensures that the States will invest the available resources in structural programs. See the different examples of debt crises, and recently Greek one. Those situations question the ability of African States to finance their development, in which case they succeed in mobilizing enough resources.


This article offers to analyze the budget expenditure structure of African countries and identify to what extent it can be an instrument of support to the socio-economic dynamics of the continent on the long-run. 


Sub-Saharan countries have great needs in infrastructure. According to the World Bank and the United-Nations [2], the coverage of those needs would require an investment from 16 to 18% of the GDP, with at least 11% dedicated to the construction of new infrastructure. Nowadays in sub-Saharan Africa, public investment is in average 6% of the GDP, with hardly 4% of the GDP dedicated to the construction of new infrastructure. It is to note that the situation is not the same in the region: some countries have already reached level of developments which don’t need heavy investments for infrastructure construction but which need to ensure its maintenance; others have just come out of a time of crisis and need high levels of expenditure for the State reconstruction. 
In spite of praises of the current transformations on the continent, especially infrastructure building, those data remind us that those transformations, if any, are very slow. The lack of available resources explains this situation. However, does State maximize the available resources to finance the investments?  The following figure provides some answers.

Source: IMF - Classification of the budgets of African countries in 2013 Source: IMF – Classification of the budgets of African countries in 2013

First of all, it is to be noted, from this figure, that African countries spend only what they have and they must be under pressure of their financial partners due to their commitment to control their deficit. They are all located in the diagonal line of the figure made by the budget size (as a percentage of the GDP) and the financial resources (tax and other non-tax resources, including those from the exploitation of natural resources). However, here are some gaps: the Central Africa Republic and Bissau Guinea are countries coming out of crisis, with huge needs and dependent on international subsidies and which then cannot afford to spend more than their internal capacities. Other countries, more extrovert, incur expenses through the use of debt (Gambia, Ghana, etc.) or international assistance (Burundi, Malawi, etc.). Curiously enough, some countries do not make use of their full potential: well-resourced Congo Republic and Gabon spend very few.


Most countries have very limited resources and thus, a low budget. According to the available data, the domestic resources mobilized by the States have trouble reaching the 35% advocated by the United-Nations. However, there are great disparities between countries. While Lesotho exceeds 50% for domestic resources, Nigeria in spite of its high economic potential, have trouble reaching 35%. This situation conveys a certain State “incompetence” to raise resources for the implementation of the budget policy. In this context, States leverage poorly economy as they have limited financial base.
Moreover, much of the resources finance unproductive expenditure (see the size of balloons on the graphic). In average, nearly 85% of the domestic resources raised are used for the payment of salaries, public orders invoices (goods and services) and some transfers or subsidies, at the expense of productive spending. If the debt service payments (principal and interests) are included, the share for profitable investments is very small. Debt and international assistance could be an alternative, but the resources are limited by the financial availability of the partners on the one hand and by the cost and the obligations linked to budget deficit on the other. Even if other sorts of financing are taken into consideration, States cannot go through those constraints. Those different sorts of financing mainly enable to diversify the risk portfolio and alleviate their burden on public finances and economies.


Those states are mainly “consumers-employer” whereas African countries need more “investor States”. The implement pace of the few current infrastructure programs suffers from the costly running of African administrations and does not convey their capacities. A better distribution key of expenditure should enable States to finance more productive investments and limit the use of external resources. Outside financial sources can be a constraint on the long run, even in the current background characterized by limited domestic resources.


Ethiopia with 14% of GDP as domestic resources is here a good example. His budget is restrained to 18% of the GDP and his unproductive expenditure (without debt services) absorbs only 24% of domestic resources. He is one of the countries who make the best advance in the HDI ranking between 2000 and 2013 and one of the most attractive countries in the continent, even if he is not said to be part of the “great African democracies”. One can think that Ethiopian State could be a better catalyst and could accelerate the implementation of structuring programs if he reinforces the domestic resources raising system. On the contrary, Nigerian State has a low financial capacity, despite his high economic potential: the domestic resources represent only 11% of his GDP, including 91% dedicated to running expenditure and wage payment. The majority of the sub-Saharan countries has a profile similar to Nigerian one with some variations. In some cases like in the Central Africa Republic, Guinea-Bissau, to a lesser extent Sudan, Madagascar, the decay and the resilience of the central administration explain this huge cost of running. Other countries do not have great needs in infrastructure construction, which limits investments budget to maintenance works: Lesotho, South-Africa, Mauritius, or the Seychelles. This is not a better option.


The purpose here is not to blame the running spending, in favor of investment spending. Actually, great investment policy does not ensure that the economy shall be more attractive or performing. Every invested dollar must be efficient. However, the impact of the running expenditure is very weak on the economy. Public order (for the administration running) and wage payment enable to boost consumption and form a market for some companies. This sort of spending does not lead to business environment changes in order to develop new activities or attract more important private funds. This policy is a way to maintain the economy in the same bases. Its importance in the budget of African States is sticking point on the role of States in development process. 


Nowadays, sub-Saharan States measure the role they could play in development process but they are still limited by their financial capacities and their internal management which consumes a great part of the resources they have. Development plans and more assistance from financial partners are useless without deep changes in the running of State administration. States mainly need to stop being « consumers-employers » and act to (i) reinforce the mechanisms of raising domestic funds, especially the fiscal system, (ii) reorganize the public spending, especially the wage bill. More generally, decisions for a better public finance management must be taken in order to save funds for public investment and make public spending more efficient. The funds left to States are numerous and the lack of budget disciplinary prevent from maximizing the domestic resources raising and spending. The ways to economic emergence for African countries requires a breakdown in the public finance management and disciplinary.

Translated by Mame Thiabe Diagne

[1] Nobel Prize speech (1971)
[2] Economic Development in Africa 2014 : catalysing investment for transformative growth in Africa
 

An interview with Nunu Ntshingila, futur Director for Facebook in Africa

12c509eWhen she begins her career in the advertising industry at the end of the 1980s in South Africa, Nunu Ntshingila discovers a universe she describes as being “very white and very masculine”. Let us take another look at an Africa fully involved in a digital (r)evolution, through the eyes of a woman promoting afro-responsibility on the continent.

An activist in women access to leadership

« After staying in the US for my studies, I came back to South Africa to work at Nike’s in communication. When I came back in the advertising sector, South Africa had democratized itself. I particularly remember debates on the role of women in the development of the post-apartheid country. It was reassuring to know we were involved in these types of discussions”, says Nunu Ntshingila who, at almost 50, is about to leave the world of advertising and to take the lead of Facebook in Africa. In 2011, Nunu Ntshingila joined the Executive Committee of Ogilvy & Mather, becoming the only representative of the African continent to serve on the committee, amongst thirty executives.

« The access of women to executive positions is a determining factor, especially in the creative industry, as they are required to speak up to be represented with respect ». Representation, explains Nunu Ntshingila, also takes into account the race issue, an issue which, according to her, is not about to disappear easily in South Africa. She believes that the distribution of wealth would be a good solution to remedy the racial tensions that still divide the country: “We must ensure that diversity can take root in our environment. All the capital currently belongs to the white minority, we must ensure that this capital belongs to the majority.”

A stronger advertisement market, thanks to the new technologies

In 2015, the advertisement market’s growth in Africa is estimated at 8%, against 5% in the rest of the world. On this topic, Nunu Ntshingila confirms: “It is true that the market evolves a great deal. But I insist on the fact that we should guide this evolution ourselves. When we talk about Africa in motion, it is important that Africans first appropriate this idea. I am sceptical when this message comes from outside the continent. We need to make Africa grow, as Africans. Today, people here want to live in better conditions. This is why the diaspora realises the potential of the continent and goes back to Africa.”

Asked about the impact of digital, she admits that she does not believe in a negative aspect of this revolution for the advertisement market. “The press was a pillar of our strategies, and we really feel in South Africa, a concentration of the advertisement market towards digital. We need to adapt to new technologies”

New technologies, such as the mobile

According to a study published at the beginning of the year by Frost & Sullivan on mobile usage trends in Subsaharan Africa, mobile penetration rate should attain 79% in 2020. “Mobile has allowed a leap forward regarding the way we communicate with consumers. Technology has allowed to reduce the gap between urban and rural areas. It is also a powerful tool to hear the voices of the poorest. It has even transformed the way we communicate between countries. Here, it is time for erasing the boundaries”, affirms the woman who has participated to the development of the international group on advertisement in 14 African countries.

Despite the optimistic perspective she has on the current state of the African advertisement market, Nunu Ntshingila remains lucid on the long road ahead. There are disparities, especially between Maghreb, Egypt and South Africa, and the rest of Sub-saharan Africa. A report from the Alliance For Affordable Internet shows that French-speaking African countries are particularly affected by the high costs of high speed internet. “In Africa, what will determine the evolution of advertisement will be the cost of high speed internet”, she declares. This cost is one among the many obstacles that the future director of Facebook will face when developing the social network on the African network, from the month of September.

Translated by M.C.

Are military coups and democracy always compatible in Africa?

Jean–Pierre Pabanel, in The Military Coups in sub-Saharan Africa, defines a military coup as “a conscious and deliberate act, by the army or a part of the army, to take hold of the state institutions and to rule the country. Unlike a military conflict and a revolution that both imply a great number of actors, a coup is plotted by fewer actors who decide to capture state power by force.
Yet, African public opinion expressed outrage and blamed the coup staged by presidential security regime (RSP), 17th September 2015, in Burkina Faso, in contrast with the sense of regret that came over the same opinion when the attempted coup against Pierre Nkurunziza regime failed in Burundi, this past May. 
From this contrast, it seems that the Africans prefer a certain sort of coups to other else. This hypothesis raises the issue of the compability between coups and democracy in Africa.
Since the first coup instigated in Egypt by Nasser in 1952, more than 80 coups have occurred in the cradle of mankind. The last one was plotted by Burkina RSP headed by Gilbert Diendéré, the previous chief of staff of ex-president Blaise Comparé. Plenty of coups sadly marked out postcolonial Africa History. But it is not an exceptional case, as the Westerners and the Asians have gone through such experiences.

Do we always have toblame the military coups?
According the fundamental principle of democratic regime, the answer is cleary yes: elections are the legal way of designation of political leaders. Democracy always blames the use of force as a mean of seizure of power.
However, one can also argue that the outcome, positive or negative, of the coups should be appreciated only in the long run, instead of blaming it systematically. The examples of Gambia or Gambia show that some seizure of power by force turned out to ensure stability. All in all, there is a fundamental difference between plotting a coup in order to establish a democratic regime (have a look to the legacy of the putschist Jerry Rawlings in Ghana), and between a coup in order to set up an authoritarian regime (see the bad gouvernance of the putschist Yahya Jammeh in Gambia). Besides, now a day, the Malians must not have the same opinion about Amadou Toumani Touré coup in 1991 against Moussa Traoré regime and the Guineans about Dadis Camara coup, in 2008, the day following President Lasana Conté death. The former view must be more positive than the latter one. 
Nevertheless, those binary oppositions are limited. First, they follow from an a posteriori argumentation: no one could have foreseen the exact outcomes of Ghana or Gambia coups. Just as well no one could have imagined that Dadis Camara, after being removed, thought to take power through ballot box, or that Amadou Toumani Touré will also be removed by a coup. 
History is unpredictable and uncertain. Blaming systematically every coup is a judgment which legitimacy is questionable. A coup must be examined after at least several years. 
Since the African Independences, coups has followed one another but without being similar. The Ivorian Researcher in History of International Relations Kouassi Yao, in his public lecture on “The coups in Africa: assessment and lessons to be learned”, distinguished 3 kinds of coups: the pro-democratic coup, the anti-democratic coup and the coup with subversive nature. “The first one aims at creating the conditions of the rise of democracy, the second one does not permit democracy to flourish, the third one comes out of bordering countries, multinationals or great powers”.  
Then, are coups and democracy always compatible in Africa? They are not necessarily! Does this answer imply that we praise coups in Africa? Absolutely not! However, we wanted to set off a critical refection on the link between coups and democracy in Africa and we did. 

Post scriptum : What is more dangerous for democracy in Africa between institutional coups and constitutional coups? In other words, who hurts more African people: the presidents for life or the putschists?

Translated by Mame Thiaba Diagne

Democracy and regular alternation of power in Africa

For regimes that are considered to be democratic (or those that try to become one), the leaders are replaced after free and fair elections, which means that there is no democracy without regular alternation of power.

 

In his article « Economic development and democracy» the American political analyst Seymour Martin Lipset defines democracy as « a political system, in a complex society, which gives the opportunities to legally change the governing officials and as a social mechanism which allows a large part of the population to influence the decisions through their ability to choose among alternative contenders for political office ». Important reminder: right after the Cold War, that ended by the triumph of liberal democracy over communism, African authoritarian regimes joined, in the early 1990s, what Samuel Huntington described as "the third wave of democratization".

 

The results of the last survey carried out in 2014 by the Afrobarometer Institut in 34 African countries, show that the majority of African people (71%) prefer democracy to any other political system. However, the global performances of Africa regarding alternation of the political power are quite poor. The Guinean case is a good example: if the president Alpha Condé hands over power to a new government after the presidential elections (scheduled on October 11th 2015), it will make Guinean history. And if he is reelected, some of his fellow citizens fear that he will imitate his predecessor Lansana Conté, who was not eligible for reelection as he had served two consecutive terms. So he modified the Constitution in 2002 to be allowed to serve a third presidential term. In 1984, Conté took power in a military coup the day after the death of the first Guinean president, Ahmed Sékou Touré, Conté kept power within his grasp until his death in 2008.

 

Another more recent example: the sociopolitical conditions under which Pierre Nkurunziza has been reelected in Burundi for a third term confirm that many African leaders are skilled manipulators and ready to do whatever it takes to cling to power, including bloody repressions of any public demonstrations organized by political opponents, scam elections, or changes of the constitution. Nkurunziza used these three processes at the same time.

 

Africa also offers some examples of role model Heads of State who were elected in the right way, and who actually left power after one or two mandates, as stated in most of constitutions.

Everything is not black and white. This paradox is amply enough to raise this fundamental question: how is it possible that some African countries successfully replace their leaders by way of regular and legal elections, whereas others do not achieve it?

 

Let’s be clear, this question is so complex that there are as many answers as African countries, because each country has their own endogenous and exogenous factors. Senegal is neither Central African Republic, nor Rwanda, even less Algeria, that gives an idea of this complexity.

 

However, South Africa and Ghana, among others, are not only showing to some countries like Ivory Coast that an alternation of power is possible without bloodshed, but they are also and especially proving to other countries, like Guinea, that presidency for life or military intervention are not established rites of passage to achieve a successful alternation of power.

 

In South Africa, Nelson Mandela chose to leave office after a unique term and gave his place to Thabo Mbeki in 1999. After two-year presidency, Mbeki let Jacob Zuma, the current president, take his place in 2009. In Ghana, Jerry Rawlings, elected in 1992 and 1996, chose to follow the Ghanaian constitution of 1993 which limits the number of President's terms to two. This is how his fellow countryman John Kufuor succeeded him, following the presidential election of 2000.

 

In fact, since 1990, we can notice that African countries, which regularly replace their President, had great political leaders who knew how to successfully maintain regular alternation of power. They had the will, wisdom, courage and patriotism to teach their fellow countrymen that alternation of power is the fuel of democracy.

 

In the African political game, the probability of a successful alternation of power increases under one of the two following conditions: a real political will of the outgoing president to organize elections considered as legitimate by all, including the opposition. That is how, in Nigeria, Goodluck Jonathan yielded power to the current president. The second condition is : a unique candidacy from all the political opponents who seriously pursue alternation of power. Isn’t it that way that the current Senegalese president Macky Sall came to power in 2012? As the saying goes and always comes true : Unity makes Strength.

 

In conclusion, by addressing the African Union last July, Barack Obama rightfully reminded us that, "if a leader thinks that he is the only person who can hold his nation together, he has failed to truly build his nation. Nelson Mandela and George Washington forged a lasting legacy, because they were willing to leave office and transfer power peacefully".

Translated by Anne-Sophie Cadet

No Silicon Valley in Africa yet?

The Silicon Valley does not hold the monopole of entrepreneurship. More and more new attractive centres for start-ups are created all around the world, in New York, Boston, Singapour, and Sao Paulo and Bangalore, also called the Indian “Silicon Valley”. These cities are well ranked in the international benchmark reference, and progress every year.

As a matter of fact, no city or region in Africa can reasonably claim to offer a similar international business ecosystem, in spite of all the imported concepts and plans that could not be successfully implemented in the continent. Under what conditions can we expect African start-ups to develop and be competitive in the world? How can they create a business ecosystem that could integrate and progress in the most selective international benchmarks?

The stakes are high: economies are transitioning towards services and knowledge-based economies will expand progressively in the next decades. Countries offering the best entrepreneurial ecosystems will have the best chances of being successful in the world. They will become the driving force for growth and employment.

The most successful start-ups created in the past decade (Google, Facebook, Amazon) are known internationally and have revolutionised our lives. These companies now belong to the playground of the greats. They have overthrown the well-established international conglomerates and their market capitalisation grows exponentially.

This economic revolution is likely to last long and keeps on growing larger. In 2030, the world economy will be dominated by companies that are unknown today or that haven't even been created yet. These companies will not only come from the Silicon Valley but from new emerging hubs in India, Brazil and maybe African countries in the near future.

The typical atmosphere for start-ups in the 21st centhury : more space, less time

A start-up is generally the result of a combination of different additional factors : the capital (which is more and more limited), talented co-founders, innovating techonology (not always digital) and an enabling environment.

The business environment is changing day by day. Past methods do not work anymore for those who cannot or who do not want to adapt. The major challenge for companies in the 20th centhury is to expand in a vast area and to extend their services without hurting the quality of services or the visibilty of the brand.

Things are very different in the 21st centhury. The challenge is not to conquer space, but time which seems to go faster and faster. The distance between companies and client has reduced and many obstacles have disappeared. Offer and demand are met almost instantaneoulsy in all parts of the world, thanks to the fast connections that new technologies now offer.

Since consumers are more easily accessible, the cost of access to the market has massively reduced for entrepreneurs. As a consequence, the market is much more competitive and the competition can come from the most unexpected companies.

An increasingly intense competition

Many sectors have been through major changes thanks to digital technology : media, education, healthcare, entertainment, transport, retail,… Some start-ups, such as Uber and Airbnb, have completely transformed their sectors and have created new opportunities. Innovation is not the priviledge of big companies or States anymore. It has expanded to younger and more ambitious new actors that constantly challenge the status quo.

For decades, most companies have benefited from more or less sustainable income. They have evolved in an isolated environment characterized by low competition, an asymmetry of information regarding the clients and growing consumption.

The obsolence of the established practices were revealed by the arrival of new trends and new actors. The companies were not protected anymore. Leading companies, such as Kodak, which had the quasi monopole in their sector for decades suffered a lot.

Easy to set up, difficult to keep up

Nowadays, it is very easy to set up a new company (apart from the administrative problems that persist). The readily available technologies (clouds, social media networks, free lance) make it easier for people to lauch their businesses quickly and with very few ressources (crowdfunding). A lot of people have set up their companies this way. This does increase competition among the new entrepreneurs who want to access the same markets.

The information flows quickly. Therefore, it makes it easier to adjust and personalize the products in real-time. Moreover, search engines and price-comparison sites give totally transparent information to the clients and help maintain a constant pressure on prices.

Thus, there is no reason why there cannot be a competitive business ecosystem in Africa, all the more so because innovation advances far more quickly here than elsewhere. One thing we can learn from successful start-ups in the Silicon Valley is that companies should be ready to constantly change and adapt their activity to keep up with the competition. Innovation is not necessarily a linear progression. It evolves in irregular rythms and often takes unexpected paths.

Translated by Bushra Kadir


 

What financial contribution do African Women make to the development of the continent?

Woman, African: These are two words that equal an ominous social and economic heritage in relation to cultural representations, sociological realities and discriminatory practices that we see in the work and capital market. However, a growing number of studies reveal that gender equality is one of the pillars of economic development in Africa. [1]

In the study, Women in Africa published in 2013, the OECD estimated that women constituted 70% of the agricultural work force in Africa and are involved in the production of 90% of foodstuffs. In addition, it was found that African women produce 61.9% of the economic goods. This number exceeded the average percentage reported in all the regions that make up the OECD. This activity, mainly independent, informal and agricultural has given rise to segmentation in the African labour market and a high under-representation of women in the workforce and the agricultural sector (8.5% across the continent). This revelation is even more important than the expansion of the tertiary sector of the African economy (the rise of the digital/ICT, telecoms and financial sectors), as the latter can lead to a biased technical progress to the detriment of women who are not part of the human capital. [2]  .

 

The market barriers that women experience are in different forms and have been analyzed through the morality, cultural and fundamental rights lens. However, it is important to recognize that beyond these unquestionable and legitimate factors, Africa has no economic interest in using the skills of this group that occupies more than half of its population in the secondary and tertiary sectors. The failure of the market and institutions can help to explain the displacement of women in the secondary and tertiary sectors.

 

This article aims to give an overview of the institutional context of economic activities of women in Africa. We will take a look at the measures taken to improve these activities and then the limits of these public policies. Then we will analyze the prospects for development.

 

Firstly, qualified or not, African women contribute to the growth of the continent despite many structural impediments

Many studies have shown that international trade has a negative but low impact on employment. This negative impact is usually found in activities with a less qualified workforce. In Africa, the latter is made up of mainly women. For example, according to l’INSEE, in 2011, industrial trade between France and developing countries led to a deficit of 330 000 jobs. Without urgent investment in the low-skilled female work force, African nations will run the risk of increasing the rate of unemployment, while the volume of investments in high growth sectors increases. The displacement of low-skilled women from the formal market does not however translate into total inactivity but results in the strengthening of the informal market which is accompanied sometimes by long-tem success. For example « Nana Benz », a group of Togolese women, who made a fortune from the sale of wax prints on the informal market during the colonial times up until the 2000s.[3]

On the other hand, the barriers for skilled female workers are mainly institutional and legal. The Family Code that is being implemented in many African nations generates harmful distortions in the market, in that, it limits the equitable transfer of inheritance between female and male descendants during the sharing of estates and restricts women’s access to bank credit. Also, the unfairness of land ownership rights constitutes an obstacle to women entrepreneurship. It drives a lot of them out of the different markets. The imperfection of the labour market and the low access to capital creates an asymmetry between women and structures which demand the use of a workforce in order to fix meager nominal wages. To combat this, microfinance enterprises started to provide credit to vulnerable populations and those far from the banking sector. This is shown in the study carried out by the researcher, Annelise Sery in Micro-credit: Empowering Ivoirian Women

 

Secondly, we must restructure the institutional framework of the economic activities of African women

Conscious of the dangers that the displacement of women constitute, many African states have opened the grounds for a debate on gender equality. On the 14th of May, 2010, the Senegalese National Assembly adopted a law on the equality of men and women. This was done in a country where women make up 52% of the population. This new law should lead to an amendment of the Family Code. Also, in Morocco, where the 2011 constitution opposes any discrimination on the grounds of gender, one its towns, Marrakech, hosted the Global Entrepreneurship Summit in November 2014. The aim of this program was to promote the regional and local economic activities of women. 

However, even though this country is a key growth driver in Africa, women participation in the economy fell from 30% in 1999 to 25% in 2012[4. Article 19 of the 2011 Moroccan constitution did not particularly address the economic inequalities but brought the debate on gender equality to the limelight. This was institutionalized by the creation of the High Authority on gender equality.

Ultimately, micro financing should be properly developed, so that a proto-industrialization can occur, which can allow mothers to work from home. This will lead to an inclusion of the African banking system in a virtuous cycle, which will profit shareholders and vulnerable populations such as women. International banking and financial organizations also have a role to play in the increased participation of women in the African economy as they are transnational and are not subject to religious or local factors that limit the rights of women in different African countries

 

As such, initiatives such as that of the African Development Bank’s ‘‘Prize for Women Innovators’’ created in October 2010 should not just be a slogan but must give way to proactive and specific action to encourage female entrepreneurship. For now, low-skilled women are the pillars of agricultural production in Africa. Nevertheless, growth prospects and the expansion of the tertiary sector of individual African economies is giving rise to an urgent need to remove the entry barriers into the secondary and tertiary labour market for women to gain access. On the other hand, a proactive policy should be implemented to restructure the Family Code all around the continent.

 

Finally, initiatives by international organizations that aim to promote women entrepreneurship will allow Africa to groom its women leaders and increase gender equality in government circles.

Translated by Onyinyechi Ananaba

[1] Cf Women in Africa publié par le Centre du Developpement de l’OCDE.

[2] Katz et Murphy, 1992 Changes in relative wadges, 1963 -1987 : supply and demand factors

[3]  Amselle, 2001.

[4]Word Bank Poverty, adjustment and growth, Royaume du Maroc 2013. 

 

The illusion of entrepreneurship in Africa

 In Africa, 60% of the unemployed are under the age of 25[1]. Both policy makers and the youth themselves have embraced entrepreneurship as the panacea against youth unemployment. As a matter of fact, governments all over the continent have implemented numerous projects to support this growing interest of the youths to start their own company. 25% of the projects are geared towards young people[2] and 35% of unemployed people seriously think about becoming entrepreneurs[3]. Is this growing interest in entrepreneurship actually becoming a reality? Could Africa be an exception to this reality? Are there any alternative options for youth employment in Africa?

The truth about entrepreneurship outside Africa

The lack of financial support is definitely one of the major constraints for entrepreneurs in the continent. If we have a look at the situation in other countries where access to funds and bureaucracy are more favourable to entrepreneurs, we see that new businesses have a high failure rate. For instance, in the USA, the past two decades have seen the development of some of the most successful companies (Google, Amazon, Facebook, Apple). However, statistically, new startups only have a 50% chance of becoming successful.

In the figure below, we can see that only 50% of startups have made a profit 6 years after their set up. The successful businesses do not always generate a very high turnover. Less than 1% of businesses have generated more than 5 million dollars in 6 years of existence. Having a successful business can be compared to a lottery. There are very few winners and it is all a question of luck. Even in a country where there are no major obstacles to entrepreneurship, only 1% of businesses will get the chance to expand and become a large company.

i
Source: Shane (2009). Donnees US Census Bureau

Some might say that it is too early to assess the success of a company after only 6 years. It is actually not true. In a survey covering over 22 000 businesses in the USA from 1987 to 2008, it is clear that 75% of companies do not have any stock-market value many years after their creation. Again, less than 1% of the businesses reach a stock-market value of more than 500 million US dollars. Whether we wait 6 years or more, it is a reality that barely 1% of small businesses become large companies. Our perception of entrepreneurship is altered by the way it is presented to the public. We only see the success stories and don’t know about the vast majority of businesses that don’t make it, just like in a lottery.

ii
Source: Hall and Woodward (2010). Donnees Stand Hills Econometrics

Playing the lottery of entrepreneurship is not a bad thing. The problem is that hundreds of job seeking people are under the illusion that their future lies in entrepreneurship. Moreover, as far as income is concerned, an employee is on average wealthier than an entrepreneur [4]. Multimillionaire entrepreneurs do exist but they are much rarer. As an employee, you are guaranteed to have a higher income than the average entrepreneur. How can we make entrepreneurship a solution for youth unemployment in Africa?

Is Africa an exception ?

In Africa, the extensive margin of entrepreneurship (traditional economic activities) is actually as significant as the intensive margin (innovations) because the middle class is growing progessively and consumes more goods and services. In industrialised countries, the technologies to produce these goods and services have already been developed in the food and agriculture, IT, transportation, financial sectors. Hence, it is very difficult for a local entrepreneur to succeed in these developing industries without any state protectionism.

As a consequence, in most African economies, the supermarkets are not the results of the merger of local shops. The market is dominated by multinational companies. It is the same situation in the fields of transportation, energy and digital technology. Multinational companies that invest in traditional sectors do contribute to create employment. However, all the jobs that were lost cannot be replaced because these companies have very efficient production technologies that require less labour force for the same production levels.

As a matter of fact, young entrepreneurs do not invest in these traditional sectors. They prefer investing in the intensive margin, especially in projects involving digital technology and renewable energies. This margin is the focus of the studies presented above on business performance in developed countries. It is by definition very uncertain because it is based on innovation. There is a high failure rate in this field, especially in the United States because there is not much opportunity for digital services and access to energy. Before the emergence of Facebook, many similar social networking sites and other innovative services tried their luck but were not successful.

In Africa, we do not have enough hindsight to assess the impact of the business incubators for entrepreneurs who try their luck in this lottery. Africa does not offer better opportunities for success in business than other developed countries. It is quite the opposite. African entrepreneurs are limited in their endeavours by difficulties in accessing finance and by the bureaucracy. What are the solutions for youth employment in Africa ?

A sketch of the alternative solutions to tackle youth unemployment in Africa

There is no miracle solution. However, African states can implement systems that worked in other developed countries such as France or the United States. In France, most major industrial groups (Renault, Peugeot, Airbus, SNCF, etc) employ thousands of people and work with many sub-contractors. The construction of a single ship is enough to guarantee employment to thousands of people for a decade. Four contracts will guarantee life employment for thousands of people. Industrialisation is one of the first solutions for youth employment.

It is a given that industrialisation is the way to go for Africa. But how should it be developed ? We suggest that industrialisation should be integrated into the new global value chains.[5] These global value chains have still got to be identified and integrated. This solution is not ideal because it is difficult to coordinate the activities of local agents and agents that are outside of the continent. This is why the integration in the global value chains is not declared. In fact, it accomplishes itself in the framework of an economy that entails comparative advantages in the production of certain intermediate goods and services. This is not the case in most African countries. As a matter of fact, a report from the Center of Global Development states that the labour cost is higher in Africa than in other comparable economies.[6]

The solutions for employment in Africa lies in the development of a local market creating competition between local industries. This strategy consists in awarding public contracts to local companies after an effective competitive procedure. With this procedure, the companies are encouraged to get the latest technologies in order to be more competitive. This procedure is very common in the United States, China, and in Europe to a certain extent. Another solution consists in merging companies in the informal sector in exchange for subsidised access to private funding. This is a good solution to protect young unemployed people in Africa from the wave of multinational companies that is spreading across the continent. These companies are attracted by an emerging middle class and seek new sources of growth. These solutions will not solve the issue of unemployment of millions of young African people. However, they will contribute to fight against a situation threatening social peace in African nations.

Translated by Bushra Kadir


 

[1] 2009 data by the BIT, as referenced in the 2012 African economic prospects http://www.africaneconomicoutlook.org/fr/thematique/youth_employment/

[2] Results of a survey by experts in the 2012 economic prospects in Africa.

[3] Data of Gallup World Poll (2010).

[4] Data from the Bureau of Statistics in Denmark .

[5] The report on 2014 economic prospects in Africa already mentionned this solution for Africa's industrialisation.

[6] Gelb et al. 2013. « Does poor means cheap ? A comparative look at Africa’s industrial labor costs » Working Paper N° 325, Center of Global Development


 

Ode to an Independent and Popular African Cinema

Although I am not an expert in African cinema, I follow with great interest, the films screened in movie theatres in France, and more specifically in and around Paris. Joseph Gaye Ramaka’s Carmen, Djo Tunda Wa Munga’s Viva Riva, Dany Kouyaté’s Sia Yatabaré, or his le rêve de Python and Bamako and Timbuktu, 2 incredible adventures written by Abderahmane Sissako. These story-lines are often well constructed, with good visuals and sound.

Cinema and literature are similar, in that they are cultural tools that can serve to deconstruct or reinforce a certain image of Africa and of Africans. Without going into technical, philosophical or aesthetical details, I have come to the conclusion that these "African movies", often financed by European funds, do not target the African audience (with the exception of Sissako's Timbuktu). For the best part, they serve only to promote a neo-colonial discourse or propagate false African stereotypes, which only serve to reassure the public who pays to watch them.

I know that my opinion is quite extreme. However, I am not the first person to think like this.  Boubacar Boris Diop, the acclaimed Senegalese essayist and novelist talks about it in his first short story, La petite vieille  of his collection La nuit de l’Imoko published by Mémoires d’encrier. In this piece, the rebellious and marginalized African intellectual expressed his views on this biased film-making industry that is controlled by other forces. His revolutionary opinions were harshly repressed. Boubacar Boris Diop's mainly denounces the France-Africa system that is calling all the shots.

 

The Nollywood Week Festival in Paris inspired me to write this article. I think that I have finally understood the difference between a funded movie industry and an independent one. On learning the importance of quality as expressed by a seasoned observer, the actor and producer, Jimmy Jean-Louis, something came to mind. There is something special about the Nigerian movie industry. It is the story of lions beginning to tell their stories to other lions leaving the disillusioned hunter at the edge of the forest. Strangely, this is reflected in the reactions of the audience, mainly of African descent. They can relate to what is been narrated, what is being shown.

 

Great laughs were inspired by the drama-comedy, set in London, Gone too far by Destiny Ekaragha. Sobbing and sighing could be heard during the movie, Dry by Stephanie Okéréké-Linus, which told of the sad fate of Halima. What can we say about the investigations of Inspector Waziri? Here, we could see from the brilliant, subjective and controversial point of view of Kunle Afolayan, the director of October 1. Kunle Afolayan is a Nigerian that gives us insight into a tragedy borne at the independence of his nation. The end of the story gives the spectator a view of the complexities and the challenges that a multi-cultural nation faces as she is forced to take her destiny in her hands. She has to do this by bearing the scars of the invisible abuse, inflicted on her in unexpected ways by the colonist.

 

I could talk about other movies that I saw, but my aim is to tell you that I discovered the real essence of an independent movie industry. It’s fascinating; the content is different. It is crucial for Africa to tell her own story. So why am I not surprised that these really good movies aren't in competition at FESPACO in Ouagadougou? Can we really say that Dry or October 1 are not up to standard for the competition?

October-1-World-Premiere-28-September-2014-AlabamaU2-02

Let's be honest, I do not know how the judges select the films for these festivals but I think that Boubacar Boris Diop’s reasoning is not far from the truth…this reasoning that one must pay allegiance to the funding party. Therefore, I think that any cohabitation of the latter and the independent Nigerian producers will not make any sense; it would be like finding a worm in your apple …

 

The strength of an independent movie industry is measured by the freedom of speech given to the creators, script writers and directors. Also, in one way or the other this measurement also applies to the literary world. The fact that certain African authors write for a western audience is a loss and a denial of responsibility. The consumer makes the artist. The consumer is the one who accepts to take a look at the produced work and it is left to him to judge if such an investment is worthwhile. Nollywood has found its true audience by producing movies that relate to them.

The economic power of this industry lies in a very large and loyal clientele and not in a small elite group that only looks down from its pedestal on the endogenous productions. The model is quite unstable as it does not rely on a network of movie theaters. However, this is not the subject of our discussion.

 

We should feel great pride that Nigerian or Ghanaian directors could be sponsored through independent means, government funding programs or foreign institutions especially western ones. This is therefore an ode to this movie industry, even though it can produce only one good film per year …

 

Translated by Onyinyechi Ananaba

How can PPPs help deliver better services in Africa? Evidence from Benin

12052_Water_pumpingtif_050eb760e9 Public Private Partnerships can help increase net benefits to society when they improve operators’ efficiency in delivering qualitative and sustainable public services in targeted geographical areas. In most cases, PPPs enable to bring private sector expertise and innovation to public services delivery, such as urban and rural water supply, which used to be managed by public authorities at ministries or municipalities level. PPPs can also help private operators to improve their own performance in delivering public services by engaging government support and enabling cost-effective allocation of risks between public and private parties.

Though common in the urban utility sector in Africa, PPPs were first introduced into the rural water supply sector in the early 2000s as an alternative to the community-based management model, which had fallen short in terms of meeting performance expectations for piped water systems[1]. Over the past decade, many West African countries including Benin, Burkina Faso, Mali, Mauritania, Niger, Rwanda and Senegal, tested PPPs for small piped water schemes with various level of success. The present article identifies key success factors which contributed to the successful Beninese experience, with a view to identify path for adaptation and scaling-up to broader rural areas and other African countries.  

The Small Towns Water Systems project initiated in Benin in 2010 illustrates how to prepare small PPP projects for competitive bidding an how to structure financially sustainable PPP concession arrangements. Under this project, the government of Benin aimed to improve water delivery to rural communities through the partial financing, rehabilitation, extension and operation by the private sector of 10 existing piped water systems covering 41,000 people across the three municipalities.[2] The 10 pilot sites were grouped into four clusters tendered as a separate transaction by each municipality, resulting in four concession agreements signed in 2014.

Interestingly, local rural water systems were already managed by private operators at the time the Small Towns Water Systems project was designed: The decision to structure the project as a PPP was based on revealed poor performance of private operators under existing lease agreement. In other words, the purpose of this PPP project was to leverage private operators’ capacity to improve their own performance in sustainably and qualitatively delivering water services to rural communities, by revising the contract structure binding them to the Government of Benin (GoB).

PPP contractual arrangements introduced a more cost-effective allocation of risks between the GoM, municipal authorities and private operators based on each actor’s ability to manage various risks at a lesser cost than other parties. Not only did risks reallocation make it easier for private sector operators to fulfil their contractual obligations, but it also participated to increase government support and commitment: By being re-transferred the project’s risks that it could manage at a lesser cost than private operators, the GoB acquired a better understanding of the level of support required from its part to ensure successful project delivery. Such responsibilities included (i) the development of risk sharing instruments to facilitate private investment and encourage entry of banks into the water sector – through foreign currency coverage mechanisms and first loss guarantees; (ii) ensuring the ownership of the PPP process by local stakeholders; (iii) establishing an effective regulatory system; (iv) channelling sustainable financing of infrastructure investments; (v) improving information tools and services to professional user; (vi) monitoring of water quality and regular audit of private operators’ performance.

IFC and the World Bank’s understanding of Benin’s decentralized political structure was a key factor contributing to the successful design and implementation of the project. In line with traditional water governance schemes, each municipality was given the responsibility to manage the tendering process for their respective clusters, which participated to build local authorities capacity to implement and manage current and future PPP contracts. The selection of most capable private operators at a national scale through a transparent and competitive bidding process with oversight from both local and international experts from IFC and the World Banks’ Water and Sanitation program (WSP) was a key component of improved water services delivery.

The shift from short-term contracting arrangement to long-term (8-year) PPP concession agreements additionally increased incentives for private operators to design, implement and manage services effectively, with a view to minimize maintenance costs over the duration of the project. This contributed to improved quality of services and improved availability of maintenance services.

Capacity building and ownership of the PPP process by key stakeholders was ensured through consultation and training of potential bidders to give them clear understanding of the proposed structure and sustainable risk allocation. Consumer voice was also reflected in the requirement to improve water services without increasing the price of water.

The international expertise and technical assistance provided by IFC and WSP enabled the GoB to build effective regulation schemes and robust contractual framework, including flexible terms to handle change management over the duration of the four concessions. Detailed contract design gave more clarity to private operators regarding their rights, obligations and the range of activities transferred to them, whilst performance monitoring tools were put in place to ensure water operators compliance with agreed regulations. Improved contracting practices and scheme design rules participated to the development of an enabling PPP environment.

The GoB also addressed the challenge of the availability of financial services and sustainable financing of investments. Financial assistance from the World Bank and the Dutch Cooperation enabled the GoB to demonstrate commitment and actual investments in the project, which in turn improved external investors’ confidence as reflected by local commercial banks commitment to support the water sector through debt, equity and various financing instruments to concessionaires. This resulted in local commercial banks improved understanding of the risk profile of rural water supply and increased commitment to support private operators.

Structuring the Small Towns Water Systems project as a PPP as an alternative to both community-based management and private sector lease agreement models improved services delivery’s Value for Money through efficiency gains and increased interactions between public and private stakeholders. Better quality services are now being delivered to rural communities at the same price than previously required to them. The project’s cost to society hasn’t increased whilst the benefits to society improved through the extension and redesign of existing water schemes resulting in increased households outreach.

The simultaneous management of four separate concessions will enable IFC and the GoB to monitor and compare each operator’s performance and to gather lessons informing future decisions towards the scaling-up of rural water PPP supply schemes across the country and the continent. Shall all four projects prove successful on the long run, the initiative will also increase private operators’ confidence in bidding for similar PPP projects across other sectors, thus increasing the growth of PPP penetration in Benin where national action plans are being implemented to rationalize and accelerate this process.

Alix Landais


[1] A review of progress in seven African countries Public-Private Partnerships For Small Piped Water Schemes, The World Bank Group / Water and Sanitation Program (WSP), 2014

 

 

 

[2] Benin: Piped Water Supply Systems in Rural and Small Towns, Public-Private Partnership Stories, IFC, 2014

 

 

 

Developing cooperation between Cuba and Africa

cuba_africa1_leadWith the diplomatic offensives of the USA, France and the EU, Cuba has progressively returned to the group of nations. This political activism for Cuba raises a number of questions relating to Obama's new foreign policy, the Western counterparts and the economic and strategic opportunities for cooperation with the island.

So, where does Africa stand ? Historically, Africa has always maintained good relations with Cuba and the powers and the elite of the continent have always supported their anti-imperalist and anti-colonialist positionings of the country. Beyond this ideology, there is a real potential for an economic cooperation between Africa and Cuba. This cooperation is most likely to reinvent the cooperation between developping countries.

Africa and Cuba, a pact in the name of Third World solidarity

With the same causes producing the same effects, Sub-saharan African countries fought for independance in the 1960s and found in Cuba a strong ally. Fidel Castro has always supported African revolutionaries such as Amilcar Cabral, Patrice  Lumumba,  Agostinho  Neto and the Anti-Apartheid hero, Nelson Mandela. The support was not just in the spirit of revolution but Cuba actually sent military forces to fight alongside the freedom fighters.

The Cuban guerilleros also called the « Internationalists » have actually fought besides their African brothers in arms. « Cuba, an African odyssey » is an excellent documentary by Jihan El Tahri that explains the story of the independentists united to push the colons out of their borders. Che Guevara had undoubtedly a big hand in the African revolutions, especially in Congo. Laurent Kabila has always « boasted » about fighting besides the Latino-american legend.

Thus, the mythical Che went to the two Congos, Tanzania, Egypt, Mali, Ghana, Sekou Touré's boiling Guinea, in the 1960 in order to deliver a message to the oppressed population to gain their freedom from the colonialists.

The Ambush of France…before the intervention of the USA

During his recent trip to the Carribean, François Hollande met the Lider Maximo, Fidel Castro in May. This meeting is very symbolic of developing closer political relations between the two countries. Cuba still carries an enthusiastic old-fashionned socialist ideology but has opened access to its market since the past few decades.

To this end, the realpolitk of French diplomacy is very clear on the subject : Cuba is economically attractive. France is a regional power in the Carribean and does not want to let America take the lead in the short-term commercial and economic rebound when Cuba will be releaved from the international constraints. That is what is said officially.

In this geoplitical and economic lottery, it is in Africa's best interest to strengthen its relations with Cuba, given that the continent has a historical advantage and has the facility to develop cultural and trading relationships with the island.

Cuba and its Africa ally, an emerging partnership for development

Cuba has one of the best health systems in the world. During the Ebola epidemic, Cuban doctors, equipped with high quality devices, were urgently sent to the outbreak sources in Sub-saharan Africa. It is to be noted that the Cuban State sent 500 doctors and medical staff whereas China, France and the USA sent about half the amount.

It is crucial to encourage cooperation agreements between African countries and Cuba, even in the framework of a multilateral instrument carried out by the African Union to promote training of African doctors and the transfer of medical qualifications with the island.

The cooperation can also be extended to other fields, such as education. The Cuban education system is the most efficient and competitive in Latin America and the Carribean. A World Bank study showed that the investment in the education system and the training of the teachers in Cuba is unequalled. Thus « no teaching force in the region today (except possibly Cuba’s) can be considered of high quality against global comparators ». It is in Africa's best interest to learn from the successful model of education that Cuba has developped.

Africa has to focus on promoting the South-South cooperation in the fields of education, culture, tourism and commerce, whether it is on the national or institutional level. In an extremely divided world between the North and the South, it is all the more necessary to defend an idealistic cooperation between Cuba and other countries in the South or considered as such, for the sake of political realism and emergence of new modes of action.

Translated by Bushra Kadir

Americanah, by Chimamanda Ngozi Adichie

Like most of the main characters in Chimamanda Ngozi Aidichie’s novels, Ifemelu is a young Igbo, Nigerian and African woman. After a long stay in the USA, she thinks about going back to Lagos, the city where she spent her youth and went to primary and secondary school. In a dull hair salon where she gets her hair plaited, she remembers her early years, her departure from Nigeria thirteen years ago, and her arrival in the USA. She recalls how difficult migration has been for her and how her naive expectations about this dreamland were so different from the Eden that she was promised at the university in Nigeria.

Through these very precise images, the reader dives into the world of Nigerian migrants in America. The author also gives a strict and distant perspective on the people who run or go to Mariama’s hair salon. During the events of the day and by an association of ideas, we will witness her stay in America.

 Why does the Nigerian youth leave ? 

Ifemelu left Nigeria to study in the University of Philadelphia. She is from the Nigerian middle class and an only child. Her father is a civil servant and was fired for some untoward behaviour towards his superiors. Her mother, converted to evangelism, faces the circumstances of life with a mysticity that Ifemelu devours with ferocity and distance. This is a recurring theme in the other novels of the author, such as « Purple Hibiscus ». It is interesting to see the journey of her mother through the different religious movements in Nigeria. This journey sums up the incongruities of the believers. Adichie, like Achebe, precisely observes the influence of protestantism on Nigerian people.

Her perspective of the society through this character might seem a little too harsh, if compared to the more nuanced analysis of the father of Nigerian litterature in « Things fall apart » where he leaves room for  the readers for their own interpretation. Ifemelu is a special character and particularly lucid and critical of the wrongs of the society she lives in. When her young aunt who is a doctor is financially supported by a high ranked official of the military, Ifemelu is the only one to criticise the « Mentor ».

These educated women are dependent on the financial power of these men. This situation is unbearable and will not cease to dictate Ifemelu life's choice. Why do they leave ? Obinze, who is Ifemelu's boyfriend, expresses very well the reasons why the African youth, fed by the Western culture, leaves the continent. The feeling of isolation and at the same time, the thirst to discover others and conviction that a better life is waiting in these fictitious worlds.

A difficult landing

For Ifemelu and Obinze, it will be very difficult to arrive in these lands of exile and asylum, such as the UK or the USA. Through these two perspectives, Adichie describes the life paths of the African youth confronted to these closed and idealised spaces. And the originality of this novel lies in the fact that it focuses on young people from the middle class leaving the continent. How do they survive in a constricted environment and confront the challenge of paying the rent when you do not even exist for the administration ? The love affair between Obinzé and Ifemelu will distend with the challenges of living in the West. Adichie beautifully describes this landing and attempt of immersion or evolution of the identity of the Nigerian migrants.

The issue of the identity

This issue is the main focus of the novel and the discourse of Adichie. How do we stay ourselves when others define us ? This question is analysed very powerfully before her departure to Nigeria and after the return to the home country through the USA and UK. The criteria of analysis will be the language, the hair, the race. Honest and haughty, Ifemelu wants to keep the African authenticity in the American land and does not want to be restricted to the « black » label, even though she fully understands the importance of this heritage in America. It is in America that she understands what it means to be Black. She accepts it because she has no other choice. She looks at America from a non-American African perspective. In her blog, she has a very sarcastic and ironic tone to describe Obama's America that is still scarred by the weight and suffering of the racial relationships. Americanah gives a good understanding of the Ferguson protests. Hollywood hides it well : the American dream has only one color. Ifemelu has an interesting opinion on the identity issues, and the tensions between African-American and Africans and the image of misery and compassion the white elite casts on the African continent.

The return to the home country

After giving it a lot of thought, Ifemelu decides to come back to Nigeria. But nobody understands her. The novel is organized in such a way that the reader has a global understanding of the challenges and realities facing the young woman at home. This decision is her own choice. The attitude toward the migrant is described precisely by the protagonist. Meeting with the long lost friends. Women's worries about the ideal marriage. The arrogance of Americanahs, i.e the young Nigerians who came back from the USA to make a fortune. The identity crisis is particularly striking when we observe the American references dictating the relationships between each one of them. Americanah ! Returning home also means being reunited with Obinze. This is a genuine novel where the characters are as important as the issues that are presented.

Conclusion

Due to the restricitions of a web article, this article is far from being exhaustive. Americanah is the reference for the African migration because it raises all the problems dealing with this issue. In my humble opinion, this is the best novel dealing with issues of migration. Chimamanda Ngoazi Adichie goes as far as rightfully criticizing a racial and often racist America. History weighs heavily on the society and ethnies. Obama is not enough to bring down the social constructs. Ifemelu has a thruthful perspective of the American society but she is also very critical of her own country. Feminism is also very present in the novel and is developped in a new form of public speaking. It is dealt with at the end in a subversive way. The author voices the opinion of the Nigerian middle class, like in her previous novels. I can see, without a doubt, that this book is brilliant, very well written and deals with deep issues. We had the opportunity to ponder on these issues at the Café des Livres, for the African Business Club.

Translated by Bushra Kadir


 

Goodluck President Buhari !

-Nigerian people have decided! Muhammadu Buhari won the presidential elections, defeating Goodluck Jonathan. Buhari’s victory shows that the people of Nigeria want to experience change. They chose to believe in the promises of the charismatic 72 year-old.  

After several attempts, Buhari has been eventually elected president. It is a great victory for the former general who claims to have converted to democracy after governing the country for 20 months following a military coup.  

Recognizing defeat, Goodluck Jonathan made the –not so traditional- phone call to the victor.

Jonathan is one of the many leaders who bought the country to ruins. This man was the caricature of the careless, incompetent political leader, who had no concern for the fate of his country or the suffering of his people.  

Institutionnal alternance is essential for democracy

In spite of  fears and negative predictions, Nigeria achieved to organize democratic and transparent elections. The State and especially Attahiru Jega, the impressive President of the electoral commission (INEC), have to be congratulated for this achievement.

After 6 military coups and tragic post electoral violence, this was the first democratic alternation in the country. After 3 failed attempts, Muhammadu Buhari has finally become the President of Nigeria, putting an end to 16 years of the reign of the PDP (People's Democratic Party).

The difficulties are starting for President Buhari. He won the elections but he still has to transform a country plagued by corruption, poverty and precarity. The fall in oil prices puts a lot of pressure on the economy. The growth of the GDP, mostly consisting of the oil revenues, is not as inclusive. Millions of people are left out of the system. Two thirds of the population live under the poverty line, with less than a dollar a day.

Buhari's challenges for the future

Goodluck lost the presidential elections and the trust of many Nigerian people because he could not offer an efficient solution to the challenge posed by the Boko Haram sect. The case of the kidnapping of hundreds of young girls in Chibok is the perfect illustration to the chaotic governance.

The military defeats of the Nigerian army and its inability to protect the population from the massacres show that the State cannot guarantee the minimal security  to the population facing the abominations of Shekau and his men. In this article, I have already dealt with the scandalous behaviour of  the presidency at the massacre of 2000 people in Baga.

The Nigerians have lost trust in a State that is supposed to protect them. They feel that they have lost their dignity and cannot deal with the challenges ahead. The recent victories against the northern sect became possible thanks to the intervention of the military troops from Cameroon, Chad and Niger (country poorer than Nigeria) along with the Nigerian army.

The first challenge for Muhammadu Buhari is to find a solution to the Boko Haram situation. He has promised to give more weapons to the Nigerian army, to improve their training and to reinforce the intelligence service. In his latest speeches, the President has committed to take serious actions against Boko Haram, who has recently pledged allegeance to Daech. The new security policies of Nigeria will influence the stability of the whole region and the continent. Nigeria, which is the epicentre of Boko Haram threat, has to be strong and committed to fight against Shekau and his men in order to destroy the sect in the sub-region.

The other urgent challenge facing the Nigerian leader is to build a real unity in the country. This sense of unity is lacking in Nigeria, as well as in other countries. In 2011, the results of the elections showed a clear divide between the muslim majority in the North of the country and the Christian majority in the South. In 2015, the pathetic presidency of Jonathan has involuntarily mitigated the divide between the Christian south and the Muslim north where the shariah law is applied in some states.

Even if Jonathan has achieved to lose states that were traditionally hostile to a candidate from the North, the results of the 28th March elections show that there is a breach in the sense of nation and the solution for this problem will be long and difficult to find. Seeing the results of Buhari in the northern states (especially the states of Kano and Zamfara) and the scores of Jonathan in the states of Abia, Rivers, Delta and Bayealsa, it will be difficult for Buhari to unite all the people. He will have to create a sense of national unity, with the symbolism and the courage of his acts.

It is a good thing that the views of the former general on Shariah have changed. He is no longer against the application of the law on the national territory since 2011. During his electoral campaign, he guaranteed freedom of religion to every Nigerian citizen. It would be a big step for the country to implement clear acts in favor of secularism.

West Africa needs a strong Nigeria, with a dynamic economy and clearly defined policies. The sub-region needs a strong leader, and once that is established, it could serve as a model for the continent and its new hegemonic ambition. Can we count on President Buhari ? Let's wait and see.

Translated by Bushra Kadir

 


    

Paul Sika: Portrait of a photo maker

511px-Paul_Sika_portraitPaul Sika is a diamond… I’d say. Do you suddenly feel the urge to stop your reading? Do you think this article aims only to flatter? Not at all! The artist we are refering to is multi-talented, sometimes playful and sometimes spiritual. At the end of our interview, I was lost in thought on my way home. I was facing a dilemma…an intriguing one at that.

A journey from unexpected initiation to an absolute quest

While he was studying computer sciences in London, Paul had a revelation. This was the beginning of him doubting his career path. His calling was sealed when he saw a movie trailer of Matrix 2 through the window of an electrical appliance shop. Paul casually adds that this was the beginning of an ‘‘unconscious cycle’’. Brought up on mangas and video games, this experience was different, because his love for art came from an American blockbuster.

This triggered him to invest in a very nice camera and despite what critics said, he began to wrap-up anything and everything. His choice of photos and not videos is very interesting because the static effect of a photo as an intermediary, offers an exercise which matches his meticulous personality. So, for this reason added to his fondness for this vocation, Paul decided to continue in this line. A great defender of ‘‘photo making’’, Paul’s works reflect what happens when cinematography techniques are transposed on glossy paper.

Self-taught in dark rooms, he started his training first in cinema, but this lasted for a short time. He noted all the important details in a small notebook. Next, he moved on to fashion photography but he found this boring. Slowly, his path of Tom Thumb progressed to a bigger vision. Paul began to define his theory, gaining more insight into his path and his search. For him, ideal beauty can blossom in art, mathematics, or sport. It can be found in each one of us. The most important is to align your path in order to discover this jewel.

So Paul came up with this word, ‘‘transcendence’’. Do not be afraid, to each his own, means to break through. The painter-photographer refers to Drogba, who he is quite familiar with. Drogba had found his jewel that gave birth to beauty and which transcended something which was thought inaccessible by the layman. A modern Plato, in search of a stunning grail but also in love with SpongeBob. These are contrasting elements.

 

The real struggle between fiction and real life.

At the Heart of Me - Paul SikaFor Paul Sika, there exists a dilemma in the concept of art. He describes himself as a sponge, absorbing real life with his appetite. Real life is captured in full view. The objects rustle and bustle in the deafening splash of colors. These colors swatches purify each other through the link created by the artist. That is to say that, pictures are just a visual medium for things that are and have to be beautiful. Paul Sika abandons politics and chatter and reunites pure imagination. He sees himself as a story teller. He says, ‘‘I am telling a story, a saga’’. The flash of images, this mix, forms a puzzle that is easy for everyone to receive.

The aim is to first touch and then give off a meaning. Paul orchestrates this process which places discovery over creativity. Discovery becomes a test even for the audience. In the midst of this ethereal inquisition, we recognize a reflection of some childhood longings, as the artist would like to mention the cartoons and mangas of his childhood days. His world is woven by these animated threads, which he identifies as a world of "true artists", far from the glass-walled galleries in London and Paris. However, remember that this man is a geek but also an aesthete. If a video game is not beautiful, it is quickly forgotten. Also, humor is a very important criterion. In this domain, SpongeBob is a winner that takes it all; this young character cheers people up. For Paul, he does more for humanity than the vague contemporary art creations. Touching lives is the major aim of the story.

Childhood and Pragmatism: ‘‘The cool attitude’’

Another thing that you should know about Paul is that he is a cool person. He has this air of intelligence and a humorous smile. With all these qualities, he invites us all to ‘‘enjoy life…’’ to love it. Being famous does not mean a thing to him. His only aim is to have his works viewed by others that they may belong to others and also be perceived as cool to other people.

This feeling stems from his love for children stories. This can be seen in his love for Mickey and Minnie. Paul also thinks that Disney is a wonderful and talented artist, a creator of emotions who is capable of healing hidden wounds. If childhood is a situation where all is cool and possible, Paul encourages us never to fear our imagination but to nourish it and continue to search for whatever we left behind while we were growing up.

Do you think Paul has his head in the clouds? I do not think so. When I asked him about his view of art in Africa, the artist was skeptical. He has quite a contrasting view to his colleagues in the industry. He accepts the practical side to his ideas. For him, Art is still at its beginning stages in Africa, mostly because it is not accessible to everyone. The supply chain needs to be better developed and adapted to African reality.

More particularly, gallery owners need to remodel their businesses to fit the local industry and they should separate their vision of art from the European model, which does not work in Africa. Most people think that art is not for them, so sharing should be the major objective so that people can easily appropriate art.

On the Meta-conceptual question, ‘‘is there art in Africa or can we call it African Art?’’ Paul gives a mischievous smile and suggests that we refer to the jewel within us…

Paul has both feet firmly on the ground. His childhood dreams are still balanced by his clear pragmatism in the art industry. He uses terms often abandoned by others as he highlights the need to understand the vocation especially in distribution, which is a major part of the business. He adds that it is important to focus on the administrative part of the vocation. In all, it is important to have a thorough understanding of the business, in order to be part of it.

On this basis, he is presently involved in training for young Ivoirian entrepreneurs and in other entrepreneurial initiatives. One of his fears is not being able to multitask. He does not like to put on only one cap but enjoys that of being the eager and willing communicant. His bipolarity is impressive. His ability to be creative and to be a manager, allows him to direct his business in an expert way. His multitalented personality inspired a fellow artist and friend from Ivory Coast, Jean-Etienne Yangzi to say ‘‘in our time, Africa needs us to be multi-talented’’.

In conclusion, Paul Sika encourages us to plunge in, to continue to impact humanity. Nothing more than that…

Consequences of falling oil prices in Sub-Saharan Africa

Picture1The globalization resulting in the growing interdependence of countries from increasing integration of trade has had an enormous impact on developing countries’ growth process. This intertwined relationship between the globalization phenomenon and growth become even more apparent as developing nations rely extensively on commodity exports as sources of income. The effect of increasing wealth of exports from natural resources, which results in the decline of the tradable good sector of an open economy was termed “Dutch Disease” by the Economist magazine to describe the decline of the manufacturing sector in the Netherlands after the discovery of a large gas field in 1959. Several studies have expressed their weariness on how often countries with oil or well-endowed with other natural resources have failed to deliver growth more rapidly than those without. This concern remains even more relevant today as the world experiences a bust in the oil industry that is manifested through the sharp decrease of the oil prices in the international market. While many Sub-Saharan African countries have been praised for their extraordinary growth during the past two decades, it is now crucial, more than ever, to reassess growth in the region within the midst of this commodity market turmoil as Africa is still the most dependent continent on commodity exports. The way Sub-Saharan African countries weather this storm will determine the effectiveness of new regulatory frameworks on fiscal policies recently introduced by many governments, and show whether lessons have been learnt from other commodity crises.

Before diving into the negative spillovers of the plunge in oil prices in Sub-Saharan African economies, it is important to revisit with a brushstroke the economic mechanism leading to a “Resource Curse” or “Dutch Disease”. In fact, the question of what drives economic growth has been one of the most venerable topics of discussion in economics that simply refuses to fade away. It has been noticed for several decades that oil or other natural resource dependent countries have failed to deliver growth. To illustrate this, Jeffrey Frankel, Economics Professor from Harvard University makes an interesting observation that many African countries such as Angola, Nigeria, Sudan, and the Congo, which are rich in oil, diamonds, or minerals, continue to experience low per capita income, and low quality of life. Meanwhile, by contrast, as he puts it, the East Asian economies Japan, Korea, Taiwan, Singapore, and Hong Kong have achieved western-level standards of living despite being rocky islands with virtually no exportable natural resources. What is it that impedes growth for many African countries well-endowed with natural resources and makes them so vulnerable to external shocks?

In fact, the answer to this question resides in a rather simple theoretical explanation of commodity boom-bust cycles. A sharp decrease in the price of exports commodities (i.e. oil price) drives down the price of non-traded goods in the domestic economy and thereby the real exchange rate, which is defined as the relative price of a basket of traded and non-traded goods between the domestic and the foreign economy. We see this trend in Nigeria, which relies on oil for 70% of its budget and over 90% of its exports. The country has been bashed by a constant decline in Brent crude oil prices, which has been swinging widely on either side of $50 per barrel in the past couple of weeks. The downfall in the price of oil has led to the devaluation of the Nigerian currency. To combat this, the Nigerian central bank raised interest rate to a record of 13% and devalued its target exchange rate for the naira to 5%, and other measures related to budget cuts are expected according to Bloomberg news. On a macro level, the inevitable consequences of relying too much on commodity exports in countries like Nigeria will be noticed in lower profits in tradable activities such as manufactured goods, which inarguably tend to create higher growth rates. And of course one can imagine that the decline in tradable goods will have severe consequences on any potential growth prospects.

Another example of this wistful reality is Angola, Sub-Saharan Africa second-largest oil producer behind Nigeria. The country’s economy is largely dependent on oil production. According to the International Monetary Fund (IMF), Oil export revenue accounted for close to 97% of total export revenue in 2012. The country’s excessive dependence on oil export has certainly a direct impact on the macroeconomic indicators. According to BloombergBusiness news, Angola’s President Jose dos Santos projected that the oil revenue will decline to cover 37 percent of spending needs, down from 70 percent last year. Consequently, as it has been sadly observed, the national currency, the Kwanza has plunged 7% against the dollar in the past six months as foreign exchanges has become limited due to restrictions from the government. Moreover, when we look at East Africa; significant oil discoveries have been made notably in Uganda and Kenya in recent years, which raised the countries’ economic prospects. However, with the recent oil collapse, exploration in the region will most likely slow-down.

In the fight against the resource curse, it is important to note that many sub-Saharan African countries have made significant economic and political developments that have ignited growth in the region during the past two decades. In addition to these changes, other western-style institutional mechanisms namely—commodity funds or sovereign wealth funds—have been adopted in countries like Angola and Nigeria to prevent the resource curse. Whether these institutions for saving during booms would allow them to continue the financing of major infrastructure projects remains to be seen. To avoid the negative impact of a commodity crisis, commodity exports countries in Sub-Saharan Africa need first and foremost to diversify their economies and progressively decrease their dependence on the commodity export. In addition to that, these countries ought to emulate Chile’s countercyclical fiscal policy initiated in 2000 under President Michele Bachelet’s first term. This rule simply consists of limiting government spending induced by receipts from copper exports during commodity booms, and increase spending when there is a bust or when the export commodity prices start falling. Therefore, the government at that time insisted on saving most of the proceeds for rainy days, and was able to maintain a sustainable growth when copper prices started tumbling.

While it has been widely observed that many resource-rich countries perform poorly, it is crucial to note that countries with natural resources are not primarily set for failure. The most important factor to consider for many sub-Saharan commodity-export countries is the implementation of various institutional mechanisms as cited above, which would help navigate through any potential commodity crisis.

Harold Agblonon

References

McClelland, Colin. "Angola Plans 25% Cut in Budget as Oil Revenue Set to Plunge." BloombergBusiness(2015): n. pag. Web.

“Country Analysis Brief: Angila.” Country Analysis Brief (2015):n.pag. U.S Energy Information Administration. 19 Mar.2015. Web.30. 2015.

Frankel, Jeffrey, “The Natural Resource Curse: A Survey,” The Natural Resource Curse: A Survey Faculty Research Working Paper Series (2010):n. pag. Print.

Nigerian politics : a small arrangement between friends

IBB-OBJ-and-GMB-150x150On the 28th of March, Nigeria, the largest economy in Africa, will be having its presidential elections. This will have an determining impact on the uncertain future of a country also dealing with the issues of violence with Boko Haram. The election, the most inclusive in the history of the country, could lead to a new wave of violence. Terangaweb.com has dedicated a series of articles to the elections and this first article by Tity Agbahey, is focused on the ambiguous relationships in the country’s political class. 

On the 28th of March, Nigerian voters will go to the polls to elect their new president. In a country with a population of about 178 million (also the largest economy in Africa), this time is usually troubling because it is almost always accompanied by election violence. However this year, the stakes are even higher as it may lead to the first party change since 1999. That was the year of return to civilian rule. Since then, the People’s Democratic Party (PDP) holds the power. The PDP candidate, Goodluck Ebele Jonathan is facing Muhammadu Buhari, the All Progressives Congress (APC) candidate. APC is a coalition of opposition parties which was created in July 2013. If Buhari wins the elections, Nigeria will be led by a different party. This represents a small revolution, very small. As a matter of fact, in Nigeria, there are no coincidences. Politics is an arrangement between friends. The fate of more than 100 million lives rests in the hands of small portion of the society, who are always the same people.

Ironically, even if President Jonathan’s critics claim he is “the worst president Nigeria has ever known”, his election in 2011 raised the hopes of many. It represented a change in a country where the political class always remained the same. Four years ago, Jonathan was presented as a man of the people, without ties to the upper reaches of power, since he is a native of a minority ethnic group that had been under represented in politics.

In an immensely rich country with a mostly poor population, the people identified with this man who told the story of his modest upbringing ‘‘with no shoes nor school bag’’. He is not a soldier and has never led the country. He was a clean slate. In fact, his political ascension looks much like an accident. In 2005, during his term as the deputy governor of his home state, Bayelsa, he was appointed as governor and replaced Diepreye Alamieyeseigha, who was impeached. Two years later, he moved on to Abuja, where he became the vice-president to Umaru Yar’Adua, who died in 2010. He, thus, became the president of the immense country. With no attachments, he said. Not even to the highest reaches of power, his mandate was doomed for failure right from the beginning. This is because in Nigeria, politics has been a game of soldiers (who are still involved today) for a long time, before civilians got involved. Some of them actually. And the same ones. In Nigeria, there are no coincidences. Why should the decision be left to the citizens when you can always agree among friends?
In 2006, as President Obasanjo’s mandate was ending, he tried to modify the constitution, so as to run a third time in the elections. Unfortunately, this motion was rejected by the Nigerian senate. So, Obasanjo was left with no other choice than to leave at the end of his second mandate in 2007. He decided to play the role of an elder statesman, who by all means must express his opinion about the political leaders of the country.

Nevertheless, there are other ways to govern. According to the zoning rule in Nigeria, political power is meant to alternate between the north and the south. After Obasanjo (south-west), the power was to go to someone from the north. Therefore, the outgoing president decided to support, infact impose Umaru Yar’Adua’s candidacy in the elections. Umaru Yar’Adua was the former governor of Katsina state and the brother of Shehu Musa Yar’Adua, vice-president to…Olusegun Obasanjo, while he was president under the military regime from 1976 to 1979. Nigerian politics is like a bad movie, always with the same characters that only change position and title. In that manner, Obasanjo was president from 1976 to 1979 under military rule and was president again under civilian rule from 1999 to 2007. At the end of his mandate, he was replaced by Umaru Yar’Adua, the brother of his vice president from 1976 to 1979.

On the other hand, Goodluck Jonathan’s supporters say that it is his lack of political bonds with the upper class of the political and military circles that is destroying the efforts of this Bayelsan native. They say that, some ill-intentioned politicians first sponsored Boko Haram. They did that to discredit Jonathan’s rule. Now, Boko Haram has become the monster that it is today. At one time, Boko Haram was sponsored by the Northern governors; however, the monster has grown wings of its own and is no more under their control. It is terrorizing both the north and south and makes no distinction between religion nor ethnic group. Nigeria has lost some of its territory to the terrorist group. The situation is alarming especially from a humanitarian perspective.

In 2011, we all thought that Jonathan would bring change. He, who had not yet known corruption, criminal indecency or ridicule. However, the American dream is not the Nigerian dream. In 2015, bruised, terrorised and desperate, Nigeria is trying to stop this enchanted interlude. Zoning can wait, truth can wait. For the time being, we want a saviour and as often as this happens, we do not have to search afar off. Muhammadu Buhari is an attractive choice for those who are looking for a radical response to the troubles of Nigeria.
In the soap opera of Nigerian politics since, Buhari has played quite a number of roles since 1960: Major General, Minister of Petroleum and natural resources under Obasanjo (from 1976 to 1979), and President from 1983 to 1985. Since then, he has been trying to return to power.
He lost three times (2003, 2007, 2011). Now, he runs for the fourth time and might just win. Nigeria needs fresh blood. Fresh blood at 72 years! Well no one cares, it is experience that matters and old friends like: Babangida, Yar’Adua and the undeterred Obasanjo.
Nigeria dey oh !

Translated by Onyinyechi Ananaba