Africa News blog

Is Joyce Banda the answer to Malawi ’s problems?

By Isaac Esipisu

The continents’ newest and second Africa’s  female president took over the reins of power in Malawi to offer a new and more responsive style of leadership that is expected to spur economic recovery of one of Africa’s poorest nation. Joyce Banda was sworn in as president two days after President Bingu wa Mutharika died of heart attack at 78.

The new president, Joyce Banda started her presidency in an enthusiastic and robust way; mending ties with foreign donors that could see Malawi pull out of an economic crisis. The new president of Zambia , Michael Sata, is making the transition easier, contributing 5 million litres of petrol that should help the economy. Banda, a 61-year-old policeman’s daughter who won recognition for championing the education of underprivileged girls, now enjoys widespread support among a population whose lives grew increasingly difficult under Mutharika

Mutharika, a former World Bank economist, also got off to a good start in 2004.   Malawi was at the time the darling of international donors. Programmes to subsidize fertilizer and provide seeds to farmers created an economic revival that made it one of the world’s fastest growing economies. But his fortunes turned dramatically and upon his death many Malawians were openly celebrating his passing.

In 2005 the country declared a national disaster as more than five million people were in need of food aid because of widespread shortages due to bad harvests. However, three years later the country produced a bumper harvest, turning it into the breadbasket of the region, mainly because of the success of Mutharika’s fertiliser and seed subsidy programme.

But under his leadership Malawi was at odds with its traditionally largest donor, Britain , following a decision by the government about a year ago to expel the British High Commissioner after he accused Mutharika for “increasingly becoming dictatorial” in a leaked diplomatic telegram. There were nationwide protests against Mutharika’s rule in July 2011 as Malawians personally blamed him for the country’s economic woes and the persistent fuel and foreign exchange shortages. Mutharika was criticized for calling in the police to quell the protests, which resulted in 20 deaths, as he vowed to crush the rebellion against him.

100 years and going strong; But has the ANC-led government done enough for its people?

By Isaac Esipisu

Although the role of political parties in Africa has changed dramatically since the sweeping reintroduction of multi-party politics in the early 1990s, Africa’s political parties remain deficient in many ways, particularly their organizational capacity, programmatic profiles and inner-party democracy.

The third wave of democratization that hit the shores of Africa 20 years ago has undoubtedly produced mixed results as regards to the democratic quality of the over 48 countries south of the Sahara. However, one finding can hardly be denied: the role of political parties has evidently changed dramatically.

Notwithstanding few exceptions such as Eritrea , Swaziland and Somalia , in almost all sub-Saharan countries, governments legally allow multi-party politics. This is in stark contrast to the single-party regimes and military oligarchies that prevailed before 1990.

After years of marginalization during autocratic rule, many African political parties have regained their key role in democratic politics by mediating between politics and society. Multi-partyism paved the way for genuine parliamentary opposition and the strengthening of parliaments in decision-making. However, several shortcomings still remain: many African political parties suffer from low organizational capacity and a lack of internal democracy.

Dominated by individual leaders, often times lifelong chairpersons and “Big Men”, youth and women remain marginalized within party structures.

A ‘day of rage’ in Ethiopia?

Ethiopia’s handful of TV channels are not carrying much news lately.  Instead, broadcasters are spending most of their time covering every phase of the construction of a new mega dam along the country’s Nile waters.

From mawkish ballads to patriotic poems and documentaries, programmes are waxing eloquently about how far the impoverished African nation has come since the dreaded Communist junta was toppled two decades ago, by defying Egyptian pressure and embarking on a massive project from its own coffers.

The long-standing rivalry with Cairo, fuelled by Ethiopian accusations it was meddling to stop any project along the river, has mustered up nationalistic fervour in the country. Most Ethiopians now say they are fully behind the project and some are even buying government bonds to help fund its construction.

A job well done then, Ethiopia? Not so say the government’s detractors. They say the public mobilisation is just a diversionary tactic, a ploy to distract citizens from the country’s ills.

They’ve even set up an online campaign calling for an Arab-style “day of rage” on May 28, the day Prime Minister Meles Zenawi’s rebels captured the capital in 1991.

“There is no reason why we cannot have the Arab uprising in Ethiopia,” says their proclamation, headlined “Beka!” – meaning “enough” in the Amharic language.

“We have resolved to bring the torch to Ethiopia, and liberate the country from the minority dictatorship that has been in power for more than 20 years,” says a post on their Facebook page, which has some 3,000 “confirmed” attendants.

Drought threatens return of good times in Kenya

He was referring to the agriculture sector’s outsized influence on east Africa’s largest economy. Farming, including coffee and tea growing, accounts for a quarter of output and employs nearly two-thirds of the population.

Over a third of electricity is generated from dams which are fed by rainfall, with drought leading to outages, which affect manufacturers and other firms.

While any slack in agriculture usually results in a reduction in the overall growth rate, shortfalls in food items usually drive inflation higher. Inflation rose to 4.5 percent in December from 3.8 percent in November.

And so officials, investors and pundits have been fixated with the outlook for rains this year to determine whether a celebration of third quarter economic growth data and an optimistic forecast for 2011 were a bit premature.

The economy grew by 6.1 percent during the period from 0.5 percent in the same quarter of 2009, surpassing analysts’ expectations of about 5 percent and driving up shares of firms that are closely linked to economic performance like banks.

Officials forecast the country could return to a growth trajectory interrupted by a bloody post-election crisis in early 2008.

But a very dry spell in the country this year has made that outlook more uncertain.

Britain on Sudan: Selling out or cashing in?

Britain’s new coalition government made its priorities on Sudan very clear as Henry Bellingham, the minister for Africa, used 90 percent of his opening remarks at his first press conference in Khartoum to outline how Britain could increase trade with Sudan.

The other 10 percent dealing with the run-up to the south’s referendum on secession, which is likely to create Africa’s newest nation state, and the International Criminal Court arrest warrant for President Omar Hassan al-Bashir for genocide all seemed like just an afterthought.

At first glance many would say Britain was selling out — engaging economically with a government whose head is a wanted man would destroy the global divestment campaign’s years of efforts to make investing in Sudan a poisoned chalice and to pressure Khartoum to stop rights abuses and allow democratic freedoms.

Many Darfuris and rights activists who have been victims of torture and harassment will be dismayed by the move, which clearly extends a hand of friendship to Khartoum, virtually a pariah since the ICC warrant for Bashir last year.

Is Britain selling out?

In fact many ordinary Sudanese say no. They say U.S. sanctions since 1997 have had little effect on the government, which took control in a bloodless coup in 1989 and was elected in disputed elections in April this year.

The economy has grown on average eight percent a year, Khartoum extracted the oil found on its territiry pretty much without Western companies, built hundreds of miles of tarmac roads, and erected high-rise government buildings which sparkle nicely in the sun, visible from the heavily secured U.S. embassy compound.

Can U.S. trade help Africa?

Sudath Perera has every reason to be content. He started up his textiles factory outside the Kenyan capital Nairobi nine years ago; today, he employs 1500 workers and turns over between 18 and 20 million U.S. dollars a year.

“We are contributing to the local economy by creating employment,” he says. “And indirectly there are a lot of local suppliers also relying on us.”

Perera’s factory is one of thousands of businesses on the continent that are taking advantage of a U.S. trade programme under which certain goods from around 40 sub-Saharan African countries can be imported to the States duty-free.

It’s known as AGOA – the African Growth and Opportunity Act – and was one of the main reasons for U.S. Secretary of State Hillary Clinton’s visit to the continent.

“The ingredients are all here for an extraordinary explosion of growth, prosperity and progress,” said Clinton at the AGOA forum in Nairobi last week. “I know how important it is to translate legislation like AGOA into daily changes that people can look to.”

Many on the continent say they’re already feeling those changes. Textiles factory worker Christine Mwende didn’t have a job before Perera employed her; and though the 120 dollar-a-month salary she makes is low by Western standards, she says it’s made all the difference.

“This job has really helped me,” she told Reuters Africa Journal correspondent Vivianne Mukakizima. “When I started working here, my child had not started school – but he is now in class 4.”

Mining and free trade in Eritrea

Eritrea’s President Isaias Afwerki has guarded his country jealousy since independence, pushing a self-reliant attitude that encourages Eritreans to rebuild Eritrea for themselves.

But in order to develop the potentially lucrative mining and trade sectors, he will have to open up the country more to foreign money and therefore possible foreign influence.

The government intends to launch free trade zones at its main ports in Massawa and Assab on its Red Sea coast, and dozens of firms, including from China, India and Dubai, have already registered to operate there to take advantage of the bustling cargo shipping lanes.

Reserves of gold, zinc and copper have been found in Eritrea and analysts are predicting a mining boom. Fourteen foreign firms are exploring in the country and the first project is expected to start producing gold by late 2010.

“We believe mining will play an important role in boosting the economy and the government is committed to develop it,” Alem Kibreab, director-general of mines, told Reuters Africa Journal.

The authorities want the sector to be developed slowly and carefully to prevent the so-called “resources curse”, where oil and minerals have spawned and corruption violence in Africa.

After the long struggle for independence from Ethiopia and subsequent border dispute, expectations for the development of the economy to support the population of 4 million are high – although Afwerki says the mining sector is no magic solution.

from The Great Debate UK:

“Green growth” strategy viable for African economy

-Michael Keating is director of the Africa Progress Panel. The opinions expressed are his own.-

After a decade of solid progress Africa is now facing the daunting task - at a time of economic crisis - of maintaining stability, economic growth and employment, addressing food security and combating climate change. No country on the continent is escaping the impact of volatile fuel and commodity prices, the drop in global demand and trade.

The global economic crisis, however, is serving as a wake-up call for both African leaders and their international partners. The Africa Progress Panel’s 2009 report, launched Wednesday in Cape Town by panel members Kofi Annan, Graca Machel and Linah Mohohlo, argues just this.

Africa is rich in potential and there is an, often overlooked, opportunity to be seized. More investment is needed in Africa’s real economy, particularly infrastructure, renewable energy, agriculture and communications. The explosion of mobile telephony and spread of financial services to the poor have shown the potential for innovative development models.

There is also an opportunity to set a low carbon growth and development agenda, investing in the Africa’s vast solar, hydro, wind, thermal and biomass resources. A continental "green growth" strategy might attract the financial and technological support of richer countries, not least as Africa can contribute solutions to the global climate change challenge. Investment in such initiatives will not only generate jobs and boost trade in Africa, but also create markets for the world.

To cope with crisis and to seize these opportunities, Africa needs determined and accountable leadership at the national level and concerted presence and negotiation capacity on the global stage. Sceptics see both in short supply and fear that crisis will unravel progress on governance and accountability.

But this does not mean that the rest of the world can walk away. Whilst the primary responsibility rests with African leaders, businesses can play a key role, as can Africa’s trading and donor partners.

Is Zimbabwe’s Gono going?

The acknowledgement by Zimbabwe’s central bank governor that it raided the private bank accounts of companies and donors to fund President Robert Mugabe’s government during the economic crisis has increased speculation over his fate under the new national unity government.

Central Bank Governor Gideon Gono said the central bank took foreign currency from private accounts to help pay for some $2 billion in loans to state-owned companies and utilities and for power and grain imports. He said the government still had to repay about $1.2 billion, so the bank could repay the money it owes.

Heading the central bank at a time Zimbabwe was suffering economic collapse and hyperinflation that touched at least 231 million percent a year (according to official figures) was never going to be a badge of honour for the governor, but as he made clear in his statement, Zimbabwe’s problems went beyond economics.

“It was a political problem and not an economic one that drove us into the difficulties this nation experienced, and quasi-fiscal operations were a response to those political challenges we have now resolved through the inclusive government,” the statement said. “Our call is to let bygones be bygones and for everyone and every entity to start anew and open a new page.”

Gono has come under pressure from Prime Minister Morgan Tsvangirai’s Movement for Democratic Change (MDC) to resign since the former opposition party joined Mugabe in a unity government in February. Western diplomats have also said Gono’s departure could help bring a resumption of badly needed aid.

Are his days numbered now Tsvangirai and Mugabe seem to be working together more closely than many might have expected?

Time to stop aid for Africa? An argument against

Earlier this month, Zambian economist Dambisa Moyo argued that Africa needs Western countries to cut long term aid that has brought dependency, distorted economies and fuelled bureaucracy and corruption. The comments on the blog posting suggested that many readers agreed. In a response, Savio Carvalho, Uganda country director for aid agency Oxfam GB, says that aid can help the continent escape poverty – if done in the right way:

In early January, I travelled to war-ravaged northern Uganda to a dusty village in Pobura and Kal parish in Kitgum District. We were there to see the completion of a 16km dirt road constructed by the community with support from Oxfam under an EU-funded programme.

The road is bringing benefits in the form of access to markets, education and health care. Some parents say their daughters feel safer walking to school on the road instead of through the bushes. Many families have used the wages earned from construction work to pay for school fees and medical treatment. This is the impact of aid.

Having lived and worked in east Africa, I have witnessed the positive effects of aid. But done badly, it can be very limiting and even has the potential to create more harm. To avoid this, it must be provided within an enabling environment in which it is used as a catalyst for change and not as an end in itself. Governments must show leadership through an accountable system.

For individuals, access to resources – including aid – is like an investment. Aid can build up poor people’s assets, support good governance and enhance skills and capacities to bring about transformation. But it can become a bane when it makes communities dependent, lazy and hopeless. Governments, aid agencies and the United Nations need to ensure the delivery of aid is well planned and coordinated, leading to higher self-reliance among poor communities.

Aid is also beneficial when trade is fair. There are several examples in Africa, like the case of coffee farmers in Uganda, where aid has been used effectively to improve the overall quality of the coffee seeds, thereby giving farmers better prices for their produce. When they have access to markets at home and abroad, they generate income which is ploughed back into increased output, better access to health and education, and overall improvement in the quality of their lives. To make this happen, developed countries need to stop procrastinating and put in place fair trade practices.

Aid works well if governments are accountable – in other words, when they are responsible and encourage active citizenship. On this continent, civil society is still weak and needs to be nourished. But stopping aid will not resolve frustrations about poor governance, which is partly a result of weak public scrutiny. Aid should be used to help fight corruption and promote accountability through active input from ordinary people.