Alpha Blondy Posted April 2, 2014 Addis Ababa. Quote Share this post Link to post Share on other sites
galbeedi Posted April 2, 2014 It is really big hope. I heard there were a study many years ago, which said only 7% of immigrants go back home. I know friends who live in northern canada, over there the sun goes down 3pm and rises 10:00am in the winter. We work 10 to 14 hours a day. it is totally a new idea to go back. Thanks for the uplifting hope. Quote Share this post Link to post Share on other sites
Alpha Blondy Posted April 19, 2014 'Super tax' on remittances to Africa hurts development -thinktank LONDON (Thomson Reuters Foundation) - Africans face the highest remittance fees globally, regularly paying a "super tax" to send money home at a cost that hurts families and holds back development in the world's poorest continent, a leading thinktank said on Wednesday. The London-based Overseas Development Institute (ODI) said that reducing remittance charges to global average levels would generate $1.8 billion, enough to put 14 million children through primary school, or provide clean water to 21 million people. The average cost to transfer $200 to sub-Saharan Africa was about 12 percent, compared with a global average of 7.8 percent, ODI said in its report, "Lost in intermediation", branding the higher fees a "super tax". "This remittance super tax is diverting resources that families need to invest in education, health and a better future," said the report's co-author, Kevin Watkins. "It is undercutting a vital lifeline to hundreds of thousands of poor families in Africa. Africans living in the UK make huge sacrifices to support their families, yet face charges which are indefensible in an age of mobile banking and internet transfers," Watkins said in a statement. Weak competition, "exclusivity agreements" between money transfer operators, agents and banks, and flawed financial regulation contributed to pushing charges higher, ODI said. The institute said two money transfer operators - Western Union and MoneyGram - accounted for two thirds of remittance transfers to Africa. "We conservatively estimate that the two companies account for $586 million of the loss associated with the remittance 'super tax', part of it through opaque foreign currency charges," ODI said in the report. Western Union said the average global revenue it earned from transferring money was 5-6 percent of the amount sent. "However, our pricing varies between countries depending on a number of factors such as consumer protection costs, local remittance taxes, market distribution, regulatory structure, volume, currency volatility, and other market efficiencies," it said in a statement. There was no fee for money transferred online from Britain for a cash payout in Africa when done through the sender's bank account, it said. Officials from MoneyGram were not immediately available for comment. RISING REMITTANCES Remittances to Africa are rising. In 2013, transfers to the continent were valued at $32 billion or around 2 percent of gross domestic product. In 2016, they are projected to rise to more than $41 billion, ODI said. "With aid set to stagnate, remittances are set to emerge as an increasingly important source of external finance," it said. The ODI said there was no evidence of a fall in fees for Africa's diaspora, even though governments from the G8 and G20 have pledged to reduce charges to 5 percent. One of the many countries that are dependent on remittances is Somalia. Last year a threat by Barclays Bank to stop money transfer services to some 80 Somali remittance companies sparked an outcry with Somali-born Olympic gold medallist Mo Farah adding his voice to a campaign to keep the lifeline open. For some, it is even more expensive to transfer money within Africa. For example, migrant workers from Mozambique pay charges as high as 20 percent to send savings back home from South Africa, the report said. ODI called for several measures to lower Africa's remittance "super tax" including an investigation of global money transfer operators by European Union and U.S. anti-trust bodies. It also called for greater transparency over foreign exchange conversion rates and regulatory reform in Africa that would revoke "exclusivity agreements" between money transfer operators and banks and agents. The use of micro-finance institutions and post offices as remittance pay-out agencies should also be promoted, ODI said. -- http://www.trust.org/item/20140416112205-i7uj8 -- interesting read. Quote Share this post Link to post Share on other sites
Alpha Blondy Posted May 20, 2014 The Nigerian Diaspora has always been the main vehicle of Nollywood’s expansion, namely in cities like London, New York and Toronto among other places. The city of Paris on the other hand, was not included in this and did not develop any special relationship with Nollywood. If Paris is undoubtedly an African culture hotspot, the attention there has always been primarily on francophone African countries where the dynamic when it comes to cinema is very different from what is happening in Nigeria. Forget the debate about too many films coming out; in Congo, Cote d’Ivoire and Senegal the question is “where are the movie theatres?” Filmmakers from those places look to the West to fund their films and that is reflected in the films they make. Due to historical ties, France tends to think of Africa as one homogenous place that speaks French. The representation of Anglophone countries is marginal and Nigeria, despite its population, its economy and its artists (of which some have even called France home at some point–Fela Kuti, Ola Balogun, Keziah Jones, Asa, etcetera) is largely unknown and often mistaken for Niger. But that was until 2013, when the first edition of a festival called NollywoodWeek put Nigeria on the map as a producer of cinema and not just of home-videos. With a tasteful selection of several “made-for-cinema” films that were recently released in Nigeria, NollywoodWeek presented the French audience with an updated window into what is currently taking place in contemporary Africa. A much-needed update as most French moviegoers reference the great Sembene Ousmane’s works as a modern representation of “African Cinema.” Now finally on the big screen audiences glimpsed the Africa that walks fast and confidently, the Africa that is not trapped in its own thoughts, the Africa that moves forward. For many in the audience, which was a mix of French spectators and 2nd generation Francophone Africans born in France, watching movies like Phone Swap, Tango with Me, Last Flight to Abuja and Maami was an eye-opener. Based on the number of articles and reports about Nollywood that came out in the French media since that first edition of the Nigerian film festival it seems like we might be witnessing the beginning of something new between France and Nollywood. The French take cinema seriously (after all, they invited it) so who knows what’s in store! We just have to wait and see what happens after the second edition of NollywoodWeek to determine if it is just a fling or a real love story. The second edition has an impressive line up once again with movies like Half of a Yellow Sun, Confusion Na Wa and Flower Girl. The festival takes place this June from the 5th to 8th in Paris, France. Here’s the festival trailer: The Nigerian Diaspora has always been the main vehicle of Nollywood’s expansion, namely in cities like London, New York and Toronto among other places. The city of Paris on the other hand, was not included in this and did not develop any special relationship with Nollywood. If Paris is undoubtedly an African culture hotspot, the attention there has always been primarily on francophone African countries where the dynamic when it comes to cinema is very different from what is happening in Nigeria. Forget the debate about too many films coming out; in Congo, Cote d’Ivoire and Senegal the question is “where are the movie theatres?” Filmmakers from those places look to the West to fund their films and that is reflected in the films they make. Due to historical ties, France tends to think of Africa as one homogenous place that speaks French. The representation of Anglophone countries is marginal and Nigeria, despite its population, its economy and its artists (of which some have even called France home at some point–Fela Kuti, Ola Balogun, Keziah Jones, Asa, etcetera) is largely unknown and often mistaken for Niger. But that was until 2013, when the first edition of a festival called NollywoodWeek put Nigeria on the map as a producer of cinema and not just of home-videos. With a tasteful selection of several “made-for-cinema” films that were recently released in Nigeria, NollywoodWeek presented the French audience with an updated window into what is currently taking place in contemporary Africa. A much-needed update as most French moviegoers reference the great Sembene Ousmane’s works as a modern representation of “African Cinema.” Now finally on the big screen audiences glimpsed the Africa that walks fast and confidently, the Africa that is not trapped in its own thoughts, the Africa that moves forward. For many in the audience, which was a mix of French spectators and 2nd generation Francophone Africans born in France, watching movies like Phone Swap, Tango with Me, Last Flight to Abuja and Maami was an eye-opener. Based on the number of articles and reports about Nollywood that came out in the French media since that first edition of the Nigerian film festival it seems like we might be witnessing the beginning of something new between France and Nollywood. The French take cinema seriously (after all, they invited it) so who knows what’s in store! We just have to wait and see what happens after the second edition of NollywoodWeek to determine if it is just a fling or a real love story. The second edition has an impressive line up once again with movies like Half of a Yellow Sun, Confusion Na Wa and Flower Girl. The festival takes place this June from the 5th to 8th in Paris, France. Here’s the festival trailer: ---- http://africasacountry.com/nollywood-in-paris-june-2014/ --- interesting read. Quote Share this post Link to post Share on other sites
Nin-Yaaban Posted May 23, 2014 Africa is going places....that's why you see so much western/asian and diaspora investment in the continent. I remember reading somewhere that the median age in Africa is like 19yrs old..imagine that. Africa has alot of young able bodied that can make a difference. Quote Share this post Link to post Share on other sites
Tallaabo Posted May 23, 2014 <cite> @Nin-Yaaban said:</cite> I remember reading somewhere that the median age in Africa is like 19yrs old..imagine that. Africa has alot of young able bodied that can make a difference. Yes surely Africa has a lot of young able-bodied men who can wield a machete and slice off the flesh of other able-bodied men for consumption. http://www.youtube.com/watch?v=w2kCH1u7FoU Quote Share this post Link to post Share on other sites
DoctorKenney Posted May 23, 2014 <cite> @Tallaabo said:</cite> Yes surely Africa has a lot of young able-bodied men who can wield a machete and slice off the flesh of other able-bodied men for consumption. http://www.youtube.com/watch?v=w2kCH1u7FoU I would say that the only way to deal with such savages is a harsh legal code with swift, harsh punishments and a strong deterrence to engaging in criminal acts. That's the only language these people understand: Violence. P.S. But of course they're only a small minority of Sub-Saharan Africa's population Quote Share this post Link to post Share on other sites
Alpha Blondy Posted June 3, 2014 Is there light at the end of the tunnel for the ‘Dark Continent’? ‘Making predictions is hard. Especially about the future’, said the famous American baseball player, Lawrence ‘Yogi’ Berra facetiously. Likewise, predicting whether there is light at the end of the tunnel in 2050 and beyond is hard. Especially about the Dark Continent. Making predictions about Africa based on the facts of the last half century will surely make one a doomsayer. Not looking in the rear view mirror would make one a soothsayer. I am neither. As a political scientist, I am grudgingly guided by the reputed ‘founding father’ of ‘modern’ political science, Nicolo Machiavelli, who instructed that ‘Whoever wishes to foresee the future must consult the past; for human events ever resemble those of preceding times.’ Machiavelli took a dim view of the human capacity to learn from mistakes. He must have believed man is doomed to incorrigibility. As a lawyer, I take cue from Jean Paul Sartre who unabashedly declared, ‘“Man is condemned to be free; because once thrown into the world, he is responsible for everything he does.’ Sartre was preempted by his intellectual forbearer Jean Jacques Rousseau who proclaimed, ‘Man is born free, and everywhere he is in chains. Those who think themselves the masters of others are indeed greater slaves than they.’ Are Africans condemned to be free and live under the rule of fair and just laws; or are they damned to perpetual slavery in the service of African tyrants who are themselves enslaved by their former colonial and neocolonial masters? In making predictions about the future of Africa mid-century, I am guided by two questions: Is Africa’s ‘future history’ determined by its ‘past history’, or is it yet to be written by free Africans yet unborn? Will the cradle of mankind become the graveyard of freedom and human rights in 2050 and beyond? I shall use neither a rear view mirror, a crystal ball nor mathematical models to predict Africa’s future. I will leave that to the professional futurists and turbaned seers. I choose to look into Africa’s future as a ‘political lawyer’, a human rights advocate looking through the opaque prism of justice, freedom, rule of law, equality and other such sublime virtues. The question for me is not whether demographics, economics, sociopolitical change, the environment, and human development factors will shape and determine Africa’s future in 2050 and beyond. These factors are unquestionably decisive. My concern is how the rule of law and good governance in Africa can avert the doomsday scenarios of socioeconomic, political and ecological collapse in Africa. There is an old Ugandan saying which cautions, ‘If you don't know where you're going, any road will take you there.’ Where is Africa going in the next 50 years? Will Africans take Mandela’s long walk to freedom and prosperity as they march to 2050 and beyond, or find themselves caged in a poverty and tyranny trap and self-destruct in an Armageddon of ethnic strife, sectarian warfare, corruption and uncontrolled population growth? Will Africa be the Promised Land for Africans in 2050 and beyond or remain a newer unkinder and un-gentler version of the ‘beggar continent’ that it is today? Will there even be an Africa as we know it today in 2050 and beyond? Is it an exercise in futility to even venture to make predictions about Africa? The (Machiavellian) political scientist in me whispers prophetic words of doom and gloom in my ears. ‘Africa emerged from the colonial tyranny of the white man only to be trampled by the tyranny of the black man. Over 50 years of independence, Africa has fallen into a bottomless vortex of dictatorship, corruption, poverty, war, ethnic strife, famine and disease. It will be Apocalypse Africa in 2050. Africa will remain chained in Plato’s Cave where she can see only shadows but never light. It will be the end of times. Africa has no future.’ The defense lawyer in me whispers prophetic words of optimism and exuberance. ‘Africa’s future is bright as the sun. Tyranny will be swept into the dustbin of history in the inexorable march of freedom across Africa. Dictatorship will inevitably be replaced by genuine multiparty democracy; injustice and inequality vanquished by the rule of law; corruption will evaporate in the sunlight of transparency and accountability; prosperity will grind down poverty; peace will prevail over war; ethnic strife will be overcome by ethnic harmony; famine will be consigned to oblivion by plenty; and ignorance will be banished by enlightenment. There is bright sunlight at the end of the tunnel. The rule of law will replace the rule of evil men. It will be the beginning of times, a new epoch in African history.’ So here are a few audacious ‘predictions’ for Africa in 2050 and beyond as ‘calculated’ by the political scientist and the lawyer. The Political Scientist: Africa’s principal problem in 2050 and beyond will be famine and starvation, or ‘food insecurity’ as the international poverty pimps conveniently call it. By 2050, Africa’s current population of 1.1 billion is estimated to increase to at least 2.4 billion. Nigeria’s population of 174 million will increase to 440 million. According to the U.S. Bureau of the Census, Ethiopia, in particular, with an estimated fertility rate of 6.0 children per woman in 2011, is projected to vault from 13th to seventh on the list of most populous countries by 2050, tripling in total population from 91 million to 278 million. In 2050, Africa will find herself in a ‘“poverty trap’(intergenerational poverty perpetuated by bad governance and economic mismanagement) and a ‘Malthusian cage’ (population growth will outstrip food supply). Africa will be unable to increase food production and will implode from runaway population growth. The ‘population bomb’ will finish off Africa by mid-century. The Lawyer: An estimated 70 percent of Africa’s population today is under 35 years of age. The youth bulge will likely persist through the middle of the century. Improved education for Africa’s youth and changing youth aspirations and values will reduce the traditional large family size. The younger generation will adopt effective family planning practices and birth control measures and delay child bearing. Africa’s youth will take advantage of innovation and entrepreneurship opportunities. They will take control of the helm of government and practice good governance as part of their value system. Africa will have genuine multiparty democracies with functioning independent judiciaries and legislatures, a free and independent press and civil society institutions and regular free and fair elections. Africa will be the breadbasket for the world with abundant fertile land and water on the continent. Africa’s best days are yet to come! The Political Scientist: George Ayittey observed, ‘Africa is poor because she is not free.’ In fact, Africa is not poor. Africa is the richest continent in terms of natural resources. Africa is poor because her leadership is morally bankrupt. Africa’s leaders are scraped from the bottom of the barrel. Despite alleged runaway economic growth in Africa (‘seven out of the ten fastest growing economies in the last decade are African’), often trumpeted by the international poverty pimps and indolent Western media parrots, poverty shall persist as an inescapable fact of life for the descendants of the 85 percent of Africans who today live on less that USD1 per day. In 2050, poverty and disease will reduce the average African life expectancy to no more than 37 years. Africa will remain trapped in the poverty and tyranny trap. The Lawyer: The coming generations of Africans will rescue Africa from the poverty and tyranny trap. They will not be addicted to Western aid. They will forswear the culture of beggary. They will use their knowledge and technological sophistication to solve problems and liberate Africa from the poverty trap. They will take responsibility for their own failures. They will not blame colonialism, imperialism, communism and all of the other ‘isms’ for Africa’s failure. They will stand proud and self-confident. They may not be able to solve all of Africa’s poverty problems but they will surely solve Africa’s bankruptcy of leadership. They will pull up Africa out of its poverty and tyranny trap by its bootstraps. The Political Scientist: It is written that ‘Where there is no vision, the people perish.’ Africans today are perishing by the millions in South Sudan, the Central African Republic, Mali, Chad, Somalia and elsewhere. Africa is cursed by visionless (benighted and blind) leaders. The Mo Ibrahim Prize for African Leadership, the largest annually awarded prize in the world (USD5 million over 10 years, and a lifetime endowment of USD200,000 per year), has been given out only three times since it was established in 2007. The awardees have come from Mozambique, Botswana and Cape Verde. None of the ‘new breed of African leaders’ sanctified by Bill Clinton and Tony Blair made the cut. The leadership bankruptcy in Africa will economically bankrupt Africa in 2050 and beyond. The Lawyer: By 2050, Africa’s leaders will be proactive and not as reactive as their forbears. They will be well-educated and trained (in contrast to the benighted and corrupt ignoramuses who hold the reins of power today). They will plan to avoid problems instead of muddling through problems after the problems have become insoluble. They will be flexible and adopt to new circumstances. They will listen to their young population and act to meet the needs and desires of their generation. They will be open-minded, open to change and resourceful in solving and anticipating problems. Africa’s leaders in 2050 and beyond will be honest, transparent, accountable, self-confident, creative and inspirational. They will be guided by Mandela’s prescription: ‘It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership.’ The Political Scientist: ‘Africa is a continent of failed states. Africa is a failed continent.’ So say many in the Western media. The euphemism of failed and fragile states is used to hide the truth that African states are actually thugtatorships, kleptocracies and corruptocracies. The African state is a glorified criminal racketeering organisation for the elites to rip off the national treasury and resources. Nowhere on the planet does one find more corruption, political and economic mismanagement and human rights violations than on the African continent. By 2050, nearly all African states will be failed states or ‘thugistans’ ruled by thugtators. Few African states will be able to deliver the most basic political goods to their citizens. Few states will have legitimacy in the eyes of their citizens; almost all African states will be held in contempt by their citizens and others. The African state will be an object of contempt and derision throughout the world. Recently, US Senator John McCain said, ‘I wouldn't be waiting for some kind of permission from some guy named Goodluck Jonathan’ to go into Nigeria to search and rescue some 300 girls abducted by the terrorist group Boko Haram. Goodluck Johnathan has yet to deploy significant military assets in a mission to search and rescue the girls. The US has sent troops and drones to ‘help’ the Nigerian military rescue the girls since Nigeria cannot do it on her own. Such has been the fate of the ‘Giant of Africa’. Likewise, when the Central African Republic, Cote d’Ivoire and Mali faced internal strife, they called in their former colonial masters to save them from themselves. By mid-century, Africa will be fragmented into bite size ‘thugistans’ (more than one hundred bite size countries under the rule of thugtators, warring warlords and mercenaries). Africa will be transformed from a continent of failed and fragile states to completely flopped states by mid-century. The Lawyer: Africa will complete her transition from dictatorship to democracy by mid-century because she is condemned to be free. Much of Africa in 2050 and beyond will be like today’s Botswana (I deplore and condemn the displacement and ‘resettlement’ of the ‘San’ people (“Bushmen”) by the Motswana government). They will have free and fair multiparty elections. African countries will take the democratic path like Ghana and South Africa, led by the cheetah (young) generation. There will be robust institutions including independent courts, professional civil servants and civil society institutions. The rule of law will be institutionalised and human and property rights respected. Africa’s newer generations will be raised in a culture of openness and tolerance. They will condemn the culture of impunity and corruption that has kept the continent at the tail end of the community of nations. As Africa’s enlightened youth begin to control the destiny of the continent, they will reject the benighted ways of the preceding generations. By mid-century, Africa will have made up for its democratic deficit by greater and more effective and widespread use of communication technologies. Africa’s youth will join with the worldwide youth community and spearhead unprecedented change throughout Africa. They will have the knowledge, wisdom and technological sophistication to solve Africa’s problems not only with borrowed ideas but also original ideas rooted in African cultures and societies and dreams. Africa’s long, cold and hard winter of tyranny, poverty and discontent will be made glorious by a bright and gleaming African Spring by mid-century. Looking through a glass darkly at the Dark Continent, it is impossible to see light at the end of the tunnel. The fog of tyranny, corruption and abuse of power that shrouds the continent is impregnable to light. The miasma of uncontrolled population growth, unmanaged urbanisation, endemic corruption, cataclysmic income inequality, catastrophic climate change, ceaseless brain drain and cyclical conflict and strife is blinding. Yet, I am certain as the sun will rise tomorrow that there is a bright future for the Dark Continent in 2050 and beyond. I, free from the trappings of profession and occupation, am a die-hard optimist about Africa’s future. It is in my nature; after all, I am a utopian Ethiopian. There is not light at the end of the tunnel for the Dark Continent. There is a bright African sun! * Professor Alemayehu G. Mariam teaches political science at California State University, San Bernardino and is a practising defense lawyer. ---- http://www.pambazuka.org/en/category/features/91925 ---- interesting article Quote Share this post Link to post Share on other sites
Alpha Blondy Posted August 7, 2014 WASHINGTON DC, Aug 5 — A leading African billionaire said yesterday that “misinformed” US businesses need to study up on the continent’s opportunities, suggesting they start by Googling. In Washington for the US-Africa Leaders Summit — President Barack Obama’s historic effort to juice up the sagging US economic relationship with the continent — telecommunications tycoon Mo Ibrahim said European and Asian businesses haven’t needed such an event to get going in Africa. “I’m actually a little bit amazed that all those Africans I met on the plane ... are coming all the way here to America to tell the very smart, well-informed American businesspeople that ‘guys, you know what, there is a good opportunity in Africa’. They should do some homework,” he said. “Everywhere in Africa there are Chinese businesspeople, there are Brazilian businesspeople.” “None of us went to Brazil, or to Asia or to China to tell them, look, come and invest in Africa. They found out themselves and they come and invest. That’s how basic business people behave.” He added: “Why do we need to come and inform these misinformed American businesses? You know, you guys invented Google. Use it please.” Still, the Sudanese-born British-resident, who made his fortune with telecommunications company Celtel before selling it off in 2005, said no one should overstate Africa’s economic emergence, given the diverse conditions across 54 countries. “I’m uncomfortable, frankly, with the hype about Africa. We went from one extreme ... to, like, Africa now is the best thing after sliced bread.” Some 45 heads of state from Africa have gathered in Washington for the three-day summit, as well as scores of business representatives. — AFP -------- http://www.themalaymailonline.com/money/article/try-googling-africa-tycoon-tells-misinformed-us-businesses#sthash.z0Z4cIN2.OACUiYZt.dpuf ------- do we need American businesses to invest in Africa? Quote Share this post Link to post Share on other sites
Alpha Blondy Posted August 26, 2014 Ghana's talented but ignored inventors A father and his pilot son in a country with no history of manufacturing are making products that will stun the world. Accra, Ghana - Imagine having a television set that comes on after an effortless clap or by blowing air; picture yourself in a car that is engineless and starts with a simple push of a button tucked to your dress; or a change-over-machine that speaks and tells you where exactly a fire or electrical fault is in your home. This is not fiction. It is not magic. It is not happening in Europe or Asia and not even in the United States. These products are being manufactured in the West African nation of Ghana. The brains behind this is Apostle Dr Kwadwo Safo, owner of the Kantanka Group of Companies. He is naturally gifted. A genius. An inventor and a philanthropist. He has no formal or sophisticated technical background. He imagines, dreams and creates at will. He lives in his own world. It takes about 45 minutes from Accra, the capital, to reach his "city" at Gomoa Mpota in the central region of Ghana. It is set apart from the hustle and bustle of cosmopolitan Accra. His flag - blue, red, yellow and white stars embossed on the blue hue - constantly flies at a junction on the highway you reach after going past beautiful green landscapes that lead to his location. It is a large tract of land. The buildings are huge. The ambiance is engaging. It has a natural touch and feel, complete with tortoises - the oldest is 40 years - and a porcupine, evidence of Safo's love for nature. Engineless car A large African map showing a picture of Apostle Safo spinning a ball imprinted with pictures, a huge star beneath it and a miniature aircraft welcome visitors. It takes close to two-and-a-half hours to tour his complex in a car. His son, Kwadwo Safo Jnr, a commercial pilot who acquired his licence at age 19, welcomed Al Jazeera. He is the group's chief operations officer. After driving past the tortoises, the first point of call was a workshop where a chopper was being manufactured alongside a hand-made engineless five-seater vehicle. The whites believed in themselves and got to where they are now. They are no different from us. We all stayed in our mothers' womb for nine months - Safo Jnr, Chief Operations Officer of the Kantanka Group of Companies Safo Jnr said they will ensure there is no risk in test-flying the chopper and explained how the engineless car will work. "The non-engine vehicle does not rely on a combustion engine to move, but an electric motor powered by rechargeable batteries," Safo Jnr told Al Jazeera. "The batteries can be recharged with solar energy or electricity. As you drive the car on the road, it converts the energy from the sun into mechanical energy which powers the car. "We do everything here. For the engineless car it is only the lights and the tyres that were bought. Everything else from moulding [parts], among others, was done by our local people." A peacock bade us goodbye from that section, then three zebras smiled at us as we drove on an untarred road towards the colossal buildings on the outskirts. They are four in all, neatly painted and look abandoned when viewed from a distance. The structures serve as the assembling plants for the yet-to-be unveiled Kantanka range of commercial vehicles - sports utility vehicles (SUVs) and pickup trucks. Although some car parts are imported, assembling the more than 1,500 pieces for a car and spraying are done by about 20 young men between the ages of 16-25 years. Amazingly, they have no formal training in building a car. "Most of them are junior and senior high school leavers. The people who are actually racking their brains here to make things work have never been to school before," Safo Jnr said. Six to 10 cars can be assembled and be ready for the road in a day. Four had been completed and tested by the time Al Jazeera visited. It is hard to tell they were actually assembled in Ghana, save for the Kantanka crown and inscription at the back. Market plans "We are hoping to increase the number to 12 or 15 daily when we go commercial soon," Safo Jnr said. "We have delayed ... going commercial because Africans and Ghanaians in general have the perception that once it is from Ghana, it is not good - durability is not assured, safety is not guaranteed. So we have decided to use the products ourselves and make sure they are good to go and standardised before we hit the market. "I was in Brazil about six months ago and I was in tears. The whole of Rio de Janeiro was packed with Marcopolo buses ... and these are buses that were assembled and made in Brazil. "They patronise it. In India they encourage made-in-India vehicles - like Mahindra - and that's my dream to one day see Kantanka cars on the streets of Accra, Kumasi and all over. I will be fulfilled," a visibly euphoric Safo Jnr pointed out in his office fitted with a locally made air-conditioner that is switched on and off by slotting in a card. The card in the air-conditioner, explained Safo Jnr, works like one used for an ATM. It is programmed to start the air-conditioner, regulate the temperature and can tell the time when the unit should be turned off. It is multi-functional, he said. Difficult questions While hugely ambitious and a potential source of pride for a country that is only known for its gold, cocoa and lately oil, the Kantanka project still raises major questions. Who, for example, will buy SUVs in a country where the average income is $1,400 and where just about everyone drives a used car? Do the carmakers perform crash tests, and will they meet the high standards of cars made in Europe and Asia? "We will be doing that in the course of our manufacturing process," said Safo Jnr, referring to crash tests. The cars will be "affordable" and middle-income earners will be able to buy them. "We know the market and we can assure you that Africans will be able to buy our cars," he said. In some countries projects such as this attract financial assistance from the government. But Ghanaian governments upon governments seem to have ignored the "Star of Africa", as Apostle Dr Safo is called by the people of Ghana. Not even his self-made Limousine dubbed "Obrempong", the speaking change-over-machine, or a range of flat-screen television sets made with wood covers that respond to a simple clap to come alive, increase or reduce volumes have fascinated the government enough to support one of their own. Determined to succeed The Safo family is undaunted though. "Most of the promises they have made, they say they are in the pipelines. I'm sure African pipelines are very choked so the water is not flowing. Not even the corporate world has shown concern … We are still hoping," said Safo. "We have had several offers from Asia and Europe, but we turn them down because we just want to stay in Africa and make sure that whatever we are doing here we'll be able to achieve our dreams. "People tell us that we are wasting our time because we won't get anywhere. But we pay no attention to them, rather we make sure that we prove them wrong by meeting targets that we set for ourselves." The US-trained young pilot is optimistic about the future. For him, it is a matter of trust and belief in the African. "The whites believed in themselves and got to where they are now. They are no different from us. We all stayed in our mothers' womb for nine months ... If you cut a white and a black man you get blood. The only differences are our names and colours," he said. "So we should believe in ourselves. We must reduce the talking and put in work." ---- Source: Al Jazeera - http://www.aljazeera.com/news/africa/2014/08/ghana-talented-but-ignored-inventors-2014823191921173432.html --- interesting developments from Ghana. Quote Share this post Link to post Share on other sites
Alpha Blondy Posted September 1, 2014 From rising star to almost basket case: Tough lessons for Kenya from Ghana Kingsley Adukpo stands in his shop in Accra on February 11, 2014. Adukpo had to repeatedly raise his prices due to the weakening Cedi (Ghanaian currency). Ghana’s trade balance has worsened. The current account deficit has risen from an average of eight per cent of GDP before it started exporting oil to 13 per cent last year. AFP PHOTO | CHRIS STEIN The wheels are coming off Ghana’s economic miracle. The cedi has fallen 40 per cent this year. Interest rates have gone through the roof. Inflation is at 15 per cent and rising. Landlords are demanding rent in dollars. Last week Ghana applied for IMF assistance to deal with its macroeconomic crisis. Ghana is one of the brightest stars of the “Africa Rising” story. Ghana has sustained economic growth over six per cent for more than a decade, propelling it to attain the coveted middle income status. Oil was discovered in 2007 and came on stream in 2010 adding to gold, of which Ghana is Africa’s largest exporter. Ghana is also the world’s second largest exporter of cocoa after neighbouring Cote d’Ivoire. Unsurprisingly, Ghana led Africa in tapping the international capital markets issued first Eurobond in 2007 and a second one last year. Ghana’s oil production started in 2010, and is running at about 80,000 barrels a day. Ghana’s trade balance has worsened. The current account deficit (the difference between foreign exchange earnings and expenditure) has risen from an average of eight per cent of GDP before it started exporting oil to 9 per cent in 2011, 12 per cent in 2012 and 13 per cent last year. Ghana’s management of its public finances was never great to begin with. However, following the discovery of oil, the Ghanaian state seems to have opened the floodgates. Government expenditure has ballooned from 20 per cent to 27 per cent of GDP in the last two years, against revenues of 20 per cent of GDP. ARREARS OF ALL SORTS In addition to two Eurobonds totalling $1.5 billion, Ghana took a highly controversial US$ 3 billion loan from the China Development Bank, secured on oil. Between these and other borrowings, Ghana has managed to double her foreign debt in three years. Ghanaians are intrigued as to where all the money is going. The government is building arrears of all sorts including statutory payments to their NHIF and road maintenance fund. Contractors are going unpaid for months on end. Recently, Government cheques bounced. One of the holes that Ghana’s money has been disappearing into is judgement debts — of the sort that we recently paid for Anglo Leasing. One Ghanaian newspaper columnist described them as follows: “Government demolishes houses to make way for a road construction. Compensation is paid to affected persons. Someone who was unaffected puts in a claim for compensation. The state agency responsible declines his request. He goes to court to seek judgement debt. Government puts in no defence. A default judgement is awarded. Months later, hundreds of thousands of Ghana cedis is paid to him. Unchallenged.” Sounds familiar? In August 2012, the president, the late John Atta Mills, admitted that his Government had paid equivalent of Sh28 billion in judgement debts. After intense public pressure, the current president set up a commission of inquiry, the Judgement Debt Commission, to investigate these payments. Sometimes last year, the commission’s offices burned down. Oil, Eurobonds, Chinese loans, judgement debts, hubris…can we go the same route as Ghana? DEFICIT STILL RISING The numbers speak for themselves, and pictures, as they say, speak louder than words. Chart 1 shows the evolution of the budget deficit over the last decade or so. The data is presented differently from the way the government reports it. The government reports it on a discrete fiscal year basis. Here I present the data on a continuous month-on month basis, that is, every monthly data point is the total for the preceding twelve months (that’s January 2010 to December 2011, February 2011 to January 2012, March 2011 to February 2012 and so on). This way, we are able to see the actual trend over the long haul. What do we see? It’s not pretty. During the first three years of Narc regime, we are running a deficit in the order of Sh50 billion a year, 14 per cent of total expenditure on average. We even run a budget surplus for most of 2006/7 financial year. The deficit escalated to Sh100 billion in 2008, rising to Sh200 billion by 2010. This was the effect of the fiscal stimulus introduced to respond to multiple economic shocks, namely post-election violence, drought and the global financial crisis. The deficit went down in 2011, as the economic stimulus spending ended, but that did not last, as it escalated sharply in 2012. I have not dug into this escalation but I suspect it has a lot to do with war in Somalia and Kibaki legacy projects. But the most startling development is what has happened since the Jubilee Government took office. From April to June 2013, the deficit escalates by Sh136 billion. By May this year, it is running at Sh460 billion, more than double what it was when Jubilee took over in April 2013. In relative terms, the budget deficit averaged 3.5 per cent of government expenditure during the first Kibaki administration, rising to an average of 19 per cent during the Grand Coalition administration. It has averaged 29 per cent during Jubilee’s first year, and it’s still rising. What is the Jubilee Government doing with money? I have no idea. Chart two shows the debt situation. It’s not pretty either. During the Grand Coalition administration our debt increased by Sh200 billion a year on average. The largest increase was by Sh300 billion in the 2010/11 financial year. The published data shows that we increased our debt by Sh475 billion last financial year. However, the published data includes the proceeds of the Eurobond, but does not include the Chinese loan for the railway, reported to be $3.2 billion (Sh280 billion). BORROWING TO PAY When we add this, the debt increase for the year is Sh750 billion. The Grand Coalition increased our debt by Sh1,000 billion (one trillion) in five years. The Jubilee Government has done three quarters of that in one year. It does not require a whole lot of economic expertise to see that these trends are unsustainable. And we will soon be piling on more debt to finance LAPPSET and the 5000 MW power initiative among other mega projects. We are, without doubt, hurtling towards a macroeconomic crunch. According to the reported terms, we have signed two Chinese loans for the railway, one for 12 years with a five-year grace period and the other for 20 years with a seven-year grace. This means in five years, we will start paying the first, and two years later, we start paying the second. The principal on the first loan works out to $230 million (Sh20 billion) per year. The repayment of this will coincide with the maturity of the five-year Eurobond which is $500 million (Sh43.5 billion). This means we will have to set aside an extra $730 million, or Sh44 billion at current exchange rate. This is about how much we spent servicing all our foreign debt last financial year. It is obviously very difficult for a government to set aside such a huge amount of money from one year to the next. The normal way that government’s finance this is by refinancing, which is fig leaf lingo for borrowing to pay. We need to pray that the financial markets will still have an appetite for African sovereign debt. PROSPECTS OF DEFAULT The week before turning to the IMF, the finance minister had announced that Ghana was preparing to go back to the market for another $1.5 billion. Even then, Ghana was looking at paying nine per cent interest on the issue — about how much I pay for dollar denominated loans in the local market. That is now going to be a hard sell, although it has no choice but to go back to the market with IMF backing, otherwise its currency will continue sliding and increase prospects of default. Ghana is not alone in dampening the enthusiasm for African sovereign Eurobonds. Macroeconomic distress is also stalking Zambia. After the record subscription of Zambia’s debut bond, yields have risen steadily, losing the initial subscribers a fair amount of money (a rise in bond yields has the same effect as a fall in the price of a share). It is not inconceivable that the appetite for African sovereign bond issues will wane as more African countries, us included, abuse their newly found financial freedom. Whatever the case, we cannot afford to continue on the fiscal path that we are on. It is reckless. This mega-infrastructure madness has to stop. If we don’t do it ourselves, the iron laws of economics will do it for us—and that, take it from me, does not come cheap. David Ndii is the Managing Director of Africa Economics. ndii@netsolafrica.com ------ http://www.nation.co.ke/oped/Opinion/-Tough-lessons-for-Kenya-from-Ghana-/-/440808/2420372/-/7kh42gz/-/index.html ------ interesting. Quote Share this post Link to post Share on other sites
Alpha Blondy Posted April 12, 2015 a bit of the Africa Century Mantra at Africa House, Hargeisa, Somaliland. Quote Share this post Link to post Share on other sites
