Reuters Blogs

Global News Journal

Beyond the World news headlines

October 23rd, 2009

Vatican synod urges corrupt African leaders to quit

Posted by: Philip Pullella

african-synod

(Photo: Pope Benedict XVI with African bishops in St. Peter's Basilica at the Vatican, 4  Oct 2009/Alessandro Bianchi)

Roman Catholic bishops called on corrupt Catholic leaders in Africa on Friday to repent or resign for giving the continent and the Church a bad name. Around 200 African bishops, along with dozens of other bishops and Africa experts, also accused multinational companies in Africa of "crimes against humanity" and urged Africans to beware of "surreptitious" attempts by international organizations to destroy traditional African values.

Their three-week synod, which ends formally on Sunday with a Mass by Pope Benedict, covered a range of Africa's problems, such as AIDS, corruption, poverty, development aspirations and crime. But it had a very direct message for corrupt African leaders who were raised Catholics.

"Many Catholics in high office have fallen woefully short in their performance in office. The synod calls on such people to repent, or quit the public arena and stop causing havoc to the people and giving the Catholic Church a bad name."

The message did not name any leaders. The international community has for years called on Robert Mugabe of Zimbabwe, who was raised a Catholic and educated by Jesuits, to step down, saying he had brought his once-prosperous country to its knees.

Another African leader who was raised a Catholic and has been accused of corruption is Angola's President Eduardo dos Santos. Both men deny any wrongdoing.

In a section on AIDS, the bishops' message repeated the Church position that the spread of the disease could not be stopped by the use of condoms alone. Last March, on his way to his first trip to Africa, the pope caused an international storm by saying that the use of condoms could actually worsen the spread of AIDS.

Read the whole story here.

Follow FaithWorld on Twitter at RTRFaithWorld

August 18th, 2009

All change for Nigeria?

Posted by: Nick Tattersall

Nigeria's central bank sliced through the hubris of the business elite with its $2.6 billion bailout out of five banks and the sacking of their heads in what looks as though it could be a new era for corporate governance in Africa’s most populous country.

Recently appointed Central Bank Governor Lamido Sanusi said lax governance had allowed the banks to become so weakly capitalised that they posed a threat to the entire system, and described the move as the beginning of a "restoration of confidence" in sub-Saharan Africa's second biggest economy.

The 1.14 trillion naira ($7.6 billion) in bad loans run up by the banks is roughly equivalent to the combined annual income of the poorest 20 million people in Africa's most populous nation, each of whom live on around $1 a day.

Yet the "Friday massacre", as one newspaper dubbed it, set Blackberries buzzing in Lagos champagne bars not because of the breathtaking scale of the money involved, but because of the might of the corporate aristocrats felled by Sanusi's axe.

"Ordinarily in Nigeria there is a sacred cow culture," said Reuben Abati, a respected leader writer and chairman of the editorial board of Nigeria's Guardian newspapers.

"Once someone is prominent in a particular industry you assume those persons are untouchable. What Sanusi has done now is to say nobody is too big to be held accountable, whether they are an Ibru or an Akingbola."

Cecilia Ibru and Erastus Akingbola -- the former chief executives of Oceanic Bank and Intercontinental Bank -- were arguably the highest-profile casualties of the cull, titans in a corporate elite dominated by egos and empire builders.

Ibru is from one of Nigeria's most powerful business families, whose interests range from shipping and hotels to oil and media. Akingbola is president of Nigeria's Chartered Institute of Bankers and brimming with honorary doctorates.

"Some are born great, others achieve greatness, while others still have greatness thrust upon them. But rarely do we have these three attributes combined so well in an individual as is the case in our Dr. Erastus Bankole Oladipo Akingbola," blasts the biography on his website.

In his trademark bow-tie and frameless spectacles, Sanusi's slight physique and measured rhetoric mark him out from some of the more flamboyant personalities it is his job to regulate.

Some Nigerian commentators have argued that the cull by Sanusi, a northerner, targeted southern bank executives and that it was a retaliation for consolidation four years ago which saw some northern banks absorbed by their southern peers.

But the forensic precision of Sanusi's public statements left the numbers to speak for themselves.

The loans they racked up -- including credit to speculators on a stock market which fell 60 percent over the past year and unsecured financing to fuel importers who have seen oil prices halve -- meant the five were constant borrowers of public money.

They accounted for almost 90 percent of exposure to the central bank's discount window, a facility which allows banks to meet short-term obligations by borrowing central bank funds.

The results of Sanusi's audit have left many wondering how the five banks managed to survive for so long.

Intercontinental and Oceanic had both won national and international banking awards. Analysts from brokerage Renaissance Capital were shown Intercontinental Bank's balance sheet in April and published a report saying it had enough capital to absorb its asset risks and there was no threat to its solvency.

Ibru was quoted in this month's edition of McKinsey & Company's business journal McKinsey Quarterly as saying: "In five to 10 years, we expect to be a well-known, established bank beyond this sub-region of Africa."

One Nigerian analyst commented "When the dust settles, one of the most shocking aspects of this crisis is going to be the magnitude of the gap between the rot in the system and what its leaders wanted us to believe."

Will this be a new era for Nigeria’s companies? For Nigeria itself?

July 11th, 2009

‘New moment of promise’ for Africa?

Posted by: Matthew Tostevin

As expected, U.S. President Barack Obama’s speech to Africa in Accra had plenty to say on the importance of good governance – but there was also a very strong message that his “new moment of promise” is one that Africans have to seize for themselves.

"You have the power to hold your leaders accountable, and to build institutions that serve the people. You can serve in your communities, and harness your energy and education to create new wealth and build new connections to the world. You can conquer disease, end conflicts, and make change from the bottom up. You can do that. Yes you can. Because in this moment, history is on the move,” Obama said.

"Freedom is your inheritance. Now, it is your responsibility to build upon freedom's foundation. And if you do, we will look back years from now to places like Accra and say that this was the time when the promise was realized -- this was the moment when prosperity was forged; pain was overcome; and a new era of progress began. This can be the time when we witness the triumph of justice once more."

To listen to the whole speech, you can find a link on the White House website.

As Obama put it: "Make no mistake: history is on the side of these brave Africans, and not with those who use coups or change constitutions to stay in power. Africa doesn't need strongmen, it needs strong institutions.”

There was no doubt they were strong words from the son of a Kenyan immigrant, who through elections has become the leader of the world’s most powerful country. Obama’s background may also give his message a better chance of being heard than those of past American leaders lecturing Africa on what it needs to do.

But when all is said and done and Obama flies off to deal with more urgent U.S. priorities, will the message be heeded? Will Africa live up to that promise?

July 9th, 2009

Squandered oil wealth, an African tragedy

Posted by: Arvind Ganesan

arvind ganesan-Arvind Ganesan is the Director of the Business and Human Rights Program at Human Rights Watch. The opinions expressed are his own.-

Equatorial Guinea is a tiny country of about half a million people on the west coast of Africa, but is the fourth-largest oil producer in sub-Saharan Africa.

Most of the investment in the country’s multi-billion dollar oil industry comes from the United States. ExxonMobil, Hess and Marathon are all there. Right now, the U.S. imports up to 100,000 barrels of oil a day from Equatorial Guinea, or about a quarter of the country’s oil production.

Oil money gives the country the means to be a model for development and human rights. The economy is nearly 130 times as big as it was when oil was discovered in 1995. But as a report released by Human Rights Watch today details, the government has squandered or stolen much of the money at the expense of its people.

It is a sad contrast, since the country has a per capita income comparable to Spain’s or Italy’s and development indicators more like Afghanistan’s. For just one sad example, infant and child mortality actually has increased -- from an already-dismal 103 deaths per thousand in 1990 to 124 per thousand in 2007. Similarly, under-5 mortality rates increased from 170 per thousand in 1990 to 206 per thousand in 2007.

The president and his family are doing just fine, though. They lead lavish lifestyles while most people live in crushing poverty.

A series of corruption scandals involving government officials and their families will give you some idea of how bad it is.

In 2004, a U.S. Senate investigation into the country’s dealings with the now-defunct Riggs Bank detailed how President Teodoro Obiang Nguema Mbasogo used the country’s oil wealth to finance numerous personal transactions, including spending $3.8 million to buy two mansions in a suburb of Washington, D.C. That investigation led to one of the largest fines against a bank in U.S. history, and ultimately the bank’s takeover.

Obiang’s eldest son, Teodorin, bought a $35 million property in California in 2006. In 2004, he spent about $8.45 million for mansions and luxury cars in South Africa. His only known income was a $4,000 monthly salary as a government minister. His $43.45 million in spending on his lavish lifestyle from 2004 to 2006 was more than the $43 million the government spent on education in 2005.

The people of Equatorial Guinea have no way to hold their government accountable. Obiang has been in power since 1979, when he deposed his uncle in a coup. The government severely curtails press freedom and independent civil society, and the political opposition is weak and faces constant government harassment, intimidation, and arrests. In the most recent parliamentary elections in May 2008, Obiang and his allies won 99 out of 100 seats.

The government has joined the Extractive Industries Transparency Initiative (EITI), an effort to make natural resources benefit everyone by setting a global standard for openness in oil, gas, and mining. However, the government has been very slow to implement the initiative’s standards. The danger is that EITI may give the government a veneer of legitimacy even while it stifles its critics and opposes real scrutiny.

Perhaps the best prospect for reform lies with the Obama administration since most of the investment in Equatorial Guinea’s oil comes the US. There are in fact things the administration can do now to break the cycle of corruption in a place like Equatorial Guinea. It should hold the government accountable for human rights and insist that it rigorously enforce anti-corruption laws. Under the Bush administration, that did not happen.

The same month in 2006 that Obiang’s son bought a $35 million Malibu mansion, Secretary of State Condoleezza Rice met with Obiang in Washington and called him “a good friend” at a news conference.

Unless the Obama administration makes it clear to Equatorial Guinea’s leaders that they must share the oil wealth with the country’s people , the human cost of the oil that the US imports from that country will continue to be staggering.

June 30th, 2009

Why the BRICS like Africa

Posted by: Jeremy Gaunt

There is little doubt that the BRICs -- Brazil, Russia, India and China -- have become big players in Africa. According to Standard Bank of South Africa, BRIC trade with the continent has snowballed from just $16 billion in 2000 to $157 billion last year. That is a 33 percent compounded annual growth rate.

What is behind this? At one level, the BRICs, as they grow, are clearly recognising commercial and strategic opportunities in Africa. But Standard Bank reckons other, more individual, drivers are also at play.

In a new report, the bank looks at what each of the individual BRIC countries is trying to do. To whit:

-- Brazil's immediate intererest in Africa is securing access to natural resources, particularly oil. But is also motivated by a desire to create a new "Southern Axis" with itself at the forefront.

-- Russia is also interested in Africa's natural resources. But it faces a problem because of the sullied reputation of the Soviet Union during the Cold War. So Moscow has also embarked on a rebranding programme within the continent by ramping up its aid programmes.

-- India is attracted to Africa in part because of long historic ties. Commercial engagement, however, is also motivated by a need to guarantee the natural resources it needs for its own growth. Furthermore Africa is seen politically as a key ally in the pursuit of a competitive advantage over its Asian competitor China.

-- For China, Africa provides a long-term partner in its ongoing bid to gain global economic ascendancy, providing it with the resources, markets, geopolitical support, and, eventually, food and social security in the form of a growing and engaging diaspora.

A full copy of Standard Bank's report, which was written by Simon Freemantle and Jeremy Stevens, can be found here.

(Photo: Jeremy Gaunt)

April 23rd, 2009

Zuma sweeps in

Posted by: Matthew Tostevin

It was South Africa’s most exciting election campaign for a long time, enlivened by the split in the African National Congress and the personality of Jacob Zuma, the man who is now pretty much assured of becoming president despite the best efforts of plenty of people within his party as well as the opposition.

So far, the results don’t look too different from the pre-poll forecasts. An ANC victory was never in doubt and the battle was as much as anything about whether the party could keep its two-thirds majority in parliament, which lets it change the constitution and further entrench its power. That was still in doubt after early figures.

There was not much good news for the Congress of the People (COPE), formed by loyalists of ousted former President Thabo Mbeki. With only about eight percent of the vote so far, the question may be as much whether it survives as whether it can supplant the Democratic Alliance as the main opposition.

The DA seemed to have done fairly well with its “Stop Zuma” campaign, at least in its Western Cape stronghold, but there was no sign of it making inroads among the black majority.

Whatever losses the ANC had made to COPE and the DA, it seemed to have made some of them up in KwaZulu-Natal, Zuma’s Zulu heartland, where it battered the once locally dominant Inkatha Freedom Party.

It certainly looks as though Zuma’s support was not affected by the fact the corruption charges against him were dismissed on a technicality rather than after a trial.

How well placed will he now be to deliver the change that many South Africans say they want on fighting crime, poverty, corruption and AIDS? Will COPE survive or might its supporters start to drift back to the ANC? Will the opposition ever really be able to challenge the ANC?

Are you celebrating or disappointed? We want to hear from you.

April 20th, 2009

Will Mandela effect help ANC?

Posted by: michael georgy

Nelson Mandela, a global symbol of reconciliation after the end of apartheid in 1994, appeared at the ruling ANC's last election rally before Wednesday's vote, delivering a last minute campaign boost for party leader Jacob Zuma.

Wearing a Zuma t-shirt, he sat beside the ANC leader, who has been fighting corruption allegations for eight years. The case was just dropped on a technicality and some South Africans still question his innocence.

It's the second time Mandela has appeared at an ANC rally in the run up to the election, seen as the ANC's toughest test since it came to power - it is still set to win by a big margin, but perhaps by not as big a margin as before.

After the first campaign appearance, some of the ANC's foes suggested Mandela had been unfairly exploited and even that his health had been put at risk. But he certainly looked happy enough on Sunday - if as frail as might be expected for a 90 year-old.

Was Mandela's appearance a desperate last attempt by the ANC to gather votes and divert attention from enduring troubles such as poverty, crime and AIDS?

Or was it just a sign of the faith that Mandela still has in Africa's oldest liberation movement?

Fifteen years after the end of apartheid, is South Africa still seen a model of democracy on a continent where freedom is lacking? Or is it headed in the wrong direction?

March 24th, 2009

Did Dalai Lama ban make sense?

Posted by: Matthew Tostevin

Organisers have postponed a conference of Nobel peace laureates in South Africa after the government denied a visa to Tibet's spiritual leader the Dalai Lama, who won the prize in 1989 - five years after South Africa’s Archbishop Desmond Tutu won his and four years before Nelson Mandela and F.W. de Klerk won theirs for their roles in ending the racist apartheid regime.

Although local media said the visa ban followed pressure from China, an increasingly important investor and trade partner, the government said it had not been influenced by Beijing and that the Dalai Lama's presence was just not in South Africa's best interest at the moment.

The conference, ahead of the 2010 World Cup, had been due to discuss how to use soccer to fight xenophobia and racism.

"We stand by our decision. Nothing is going to change. The Dalai Lama will not be invited to South Africa. We will not give him a visa between now and the World Cup," said government spokesman Thabo Masebe.

Whatever the reasoning, it angered the Nobel laureates in a country which has prided itself as a model of democracy and human rights since the end of apartheid in 1994.

Nelson Mandela’s grandson, Mandla, one of the conference organisers said the rejection was tainting South Africa’s democratic credentials.

"The government needs to review its decision and come to the party," said Mandela, set to become a parliamentarian with the ruling African National Congress after the election in April.

Allowing a visit by the Dalai Lama could certainly have made relations with Beijing more difficult. Ties between France and China were badly strained after French President Nicolas Sarkozy met him in December, when France held the European Union presidency.

But banning the Dalai Lama has also created a storm that South Africa was unlikely to have wanted either.

Was the ban the right thing to do?

March 18th, 2009

Africa back to the old ways?

Posted by: Alistair Thomson

The overthrow of Madagascar’s leader may have had nothing to do with events elsewhere in Africa, but after four violent changes of power within eight months the question is bound to arise as to whether the continent is returning to old ways.

Three years without coups between 2005 and last year had appeared to some, including foreign investors, to have indicated a fundamental change from the first turbulent decades after independence. This spate of violent overthrows could now be another reason for investors to tread more warily again, particularly as Africa feels the impact of the global financial crisis.

"Although I don't think these instances of instability in Africa are related to each other or part of a pattern, I think there's no doubt external constituents and businesspeople around the world will assume there is a pattern," said Tom Cargill, Africa Programme Coordinator at London thinktank Chatham House.

The fact that coup makers have succeeded without being forced to step down or even face major censure could also embolden those who might be tempted to take power in bigger countries, where falling growth is encouraging disaffection.

"Look at ... other African countries, so-called pivotal states: Nigeria is in a terrible state, so is Egypt, so is Kenya, all these so-called big countries," said Hussein Solomon, a political science professor at the University of Pretoria.

Although there can be a tendency to group very diverse African states together, the picture is far from uniform - Ghana's presidential election two months ago was one of Africa's closest, but avoided major violence, reassuring investors despite an acute fiscal crisis.

But social pressures are growing across Africa as a result of the world economic crisis.

The dramatic U-turn by rich countries as they bail out or buy up failing industries is also prompting a reassessment of the model sold to Africa by Western donors since the Cold War -- a combination of market capitalism and multiparty democracy.

Cargill said factors were both the financial crisis and the rise of one-party state China, an increasingly important source of investment and trade for Africa.

"I think in future the whole idea of the democratic capitalist system will be tested and questioned, and there will be some who take advantage of its being questioned for their own private ends to launch their own bids for power," he said.

That debate is already taking place at the African Union, whose rules ban unconstitutional seizures of power but whose chairman for the next year, Libya's Muammar Gaddafi, opposes what he says are foreign democratic structures imposed on Africa.

The AU has told Madagascar that any seizure of power by unconstitutional means would be considered a coup d'etat, punishable by AU sanctions or suspension.

But that sits uneasily with Gaddafi's rebuke last week of Mauritania's first democratically elected leader, largely confined to his village after being deposed in a coup last year.

"He must accept the fact,” said Gaddafi, who seized power in 1969 “He is not the first head of state to be overthrown.”

Is Africa returning to the old ways or did it never really leave them behind? Will a reassessment of the financial model pushed by Western donors also mean a new look at the multiparty democracy?

March 17th, 2009

Madagascar: a slow-motion coup

Posted by: Giles Elgood

It seems Madagascar's slow-motion coup has at last come to a head with the removal of President Marc Ravalomanana, announced almost casually in a text message from one of his aides.

The change has been a long time coming -- the first outbreaks of violence were in January -- and it's all rather different from what many would regard as the traditional African coup d'etat.

Over the years that has developed into a familiar formula -- the dawn announcement from a little-known colonel on national radio, the setting up of a military council to restore order after the sins of the previous regime, and the vague promise of a return to democracy in due course. The ousted leader may well have been out of the country at the time. The new boys move quickly to consolidate power.

In its final stages, the Madagascar version has been a little slower. Troops announced that they had deployed tanks but initially did not show them on the streets. Soldiers stormed the presidential palace, but the president was not at home. The central bank was seized, but the colonel in command of that operation then announced he had no more orders for the time being.

There is a sense that this is the elite fighting amongst itself for control of an island rich in natural resources and it took a while for the opposition leader, Andry Rajoelina, to gather the support he needed, particularly from the military.

But although the timeline has seemed relaxed, some 135 people have died along the way. Even if the elephants fight slowly, the ants still get crushed.