Africa News blog

Angola throws back punches

Tired of being criticised for being one of the world’s most secretive governments, Angola is finally throwing back some punches. Top government officials, including the economy minister, the finance minister and the head of the central bank, held a news conference late on Friday to discuss the government’s first 200 days in power — the second news conference of the kind this year. “You thought we wouldn’t do this again,” said Carlos Feijo, Angola’s powerful minister of state who is seen by many as the president’s right-hand man. “Well, here we are.” He then went on to speak non-stop for 40 minutes, describing how the economy had improved in recent months, plans to pay billions in debt to construction firms and the fight against poverty and corruption before opening up the floor to questions. Many journalists praised the government’s decision to hold the news conference as a step in the right direction in a nation where officials seem to be paid to keep quiet and where people are afraid to openly criticise the president. Greater transparency could also bolster Angola’s chances of receiving more Western loans and placing debt with private investors abroad, as it seeks cash shore up its finances after the recent slump in oil prices. Angola was ranked in the bottom 19 of 180 countries in a Transparency International corruption study last year. State-run daily Jornal de Angola hailed the news conference a success in an editorial a few days later. “The Angolan government has explained how public funds are being managed so that Angolans continue to trust in those they elected into government for four years,” said Jornal de Angola. “It is important that all Angolans, whether or not they voted for the ruling party, to be aware of the importance of this extraordinary performance.” The question is whether the Angolan government is serious about increasing transparency or simply using the media’s thirst for information to campaign ahead of the nation’s 2012 elections.

Kenya’s new finance minister: Positioning for next election?

President Mwai Kibaki’s naming of a key ally, Uhuru Kenyatta, as his new finance minister to replace another supporter, Amos Kimunya, does not come as a surprise to some. Kimunya, who stepped down last July after he was accused of corruption in the handling of the sale of a luxury hotel, has also returned to parliament — replacing Kenyatta as trade minister. Kimunya was not reinstated even after he was cleared by an official enquiry into the controversial sale of the luxury Grand Regency Hotel in the capital.

The long wait for someone to fill the finance position suggested to some that Kibaki was not comfortable bringing his ally back, given his tainted name. His appointment to the trade ministry could mean Kibaki did not want to lose him from the cabinet altogether, although some analysts say it was a move to save face. Pundits also say Kibaki did not have much room to manoeuvre in picking Kenyatta. Many MPs who support the president are parliamentary neophytes without much experience in running a powerful ministry like the treasury.

But the wealthy Kenyatta is an old name in Kenyan politics. His father was an independence hero and the east African country’s first president. Political analysts think Kibaki could be positioning key allies, such as Kenyatta and Kimunya, for a stab at the presidency in 2012. Ironically, Kenyatta contested for the top job against Kibaki in 2002. But the finance ministry post will not be easy. Kenya macroeconomic indicators are weak — GDP growth in 2008 is estimated to have halved to 3.5 percent, compared with 7 percent in 2007, and annual inflation in December reached a staggering 27.7 percent. The budget deficit is yawning and is expected to widen further as the government subsidises food costs for some 10 million Kenyans facing hunger. The government also faces uncertainty financing its $12 billion budget for the current fiscal year after it was forced to cancel plans for a $500 million Eurobond because of the global economic woes. This is further exacerbated by tighter revenue flows. So even though Kibaki may have appointed Kenyatta with 2012 in mind, the difficult job of getting the economy to grow during a global recession might not endear the new finance minister to many in the poor country. Has Kibaki made a good decision?