MALI Saudi cash bashes Sufis
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GREEN POWER The Third Industrial Revolution
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KENYA Shared growth remains elusive
CONTENTS
ON SALE AUGUST & SEPTEMBER
50
N ° 73 • AU G U S T- S E P T E M B E R 2 015
THE
Koki Mutungi • Thuli Madonsela • Gervais
• Mensa Otabil Attahiru Jega
Didier Drogba Koffi Djondo • Unity Dow
Magic System • Jerry Brown • Jacque Kahura
Moursli Oumou Sall Seck • Juliana Rotich • Nic Rudnick • Cherkaoui El
• Aliko Dangote
• Geneviève Sangudi
Mmusi Maimane • Souad
TRAILBLAZERS
Monica Musonda
Massi
THE AFRICA REPORT # 73 - AUGUST-SEPTEMBER 2015
GROUPE JEUNE AFRIQUE INTERNATIONAL EDITION
Algeria 550 DA • Angola 600 Kwanza • Austria 4.90 € • Belgium 4.90 € • Canada 6.95 CAN$ • Denmark 60 DK • Ethiopia 75 Birr • France 4.90 € Germany 4.90 € • Ghana 7 GH¢ • Italy 4.90 € • Kenya 410 shillings • Liberia $LD 300 • Morocco 50 DH • Netherlands 4.90 € • Nigeria 600 naira Norway 60 NK • Portugal 4.90 € • Sierra Leone LE 12,000 • South Africa 35 rand (tax incl.) • Spain 4.90 € • Switzerland 9.90 FS • Tanzania 9,000 shillings Tunisia 8 DT • Uganda 9,000 shillings • UK £ 4.50 • United States US$ 6.95 • Zambia 30 ZMW • Zimbabwe US$ 4 • CFA Countries 3,500 FCFA
4 EDITORIAL Let’s join the dots 6 LETTERS 8 THE QUESTION
50 Koki Mutungi • Thuli Madonsela • Gervais
il
• Mensa Otab Attahiru Jega
Didier Drogba Koffi Djondo • Unity Dow
Magic System • Jerry Brown • Jacque Kahura
Moursli Oumou Sall Seck • Juliana Rotich • Nic Rudnick • Cherkaoui El
BRIEFING
Monica Musonda
• Aliko Dangote
udi • Geneviève Sang
Mmusi Maimane • Souad
Massi
TRAILBLAZERS
10 SIGNPOSTS 12 INTERNATIONAL 14 PEOPLE
21
16 CALENDAR 18 OPINION Tolu Ogunlesi
FRONTLINE
COVER CREDITS: SUNDAY ALAMBA/AP/SIPA; KENYA AIRWAYS; ALL RIGHTS RESERVED; JACKIE NICKERSON; MICHEL MONTEILS/L’OEIL DU SPECTACLE; FOTOLIA
BUSINESS
THE
21 AFRICAN PIONEERS The 50 Trailblazers From politics to business and science to music, these Africans are driving the continent forward and providing an inspiration for the next generation
47
DOSSIER SUSTAINABLE DEVELOPMENT 72 Ghana’s fishing failure Under pressure from the European Union, the government is struggling to stop foreign and domestic trawlers from pillaging the seas 76 IMPACT INVESTING Good things can start out small
ART & LIFE
40 MIGRATION Open seas, broken borders 42 RWANDA Karenzi in court
60
43 EGYPT Back to the future 43 CÔTE D’IVOIRE All together now
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COUNTRY FOCUS 47 KENYA Young and jobless Macroeconomic growth is failing to translate into jobs, while the middle class remains stubbornly small, challenging the ‘Africa rising’ narrative THE AFRICA REPORT
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68 LEADERS Moe Shaik, spy chief turned DBSA bank chief
70 HANNIBAL
34 MALI Faith and the fightback A new wave of Islamic preachers is leading the drive against the Gulf-funded conservatism that has been winning the hearts and minds of the country’s youth
45 ANANSI
66 MINING A golden voyage
70 FINANCE Index impasse
POLITICS
44 MOZAMBIQUE On the hook
60 INDUSTRY The third revolution Will Africa be able to leapfrog the West in its development of revolutionary electricity, manufacturing and transportation networks?
AU G U S T- S E P T E M B E R 2 015
80 DANCE Caped crusaders Dancers on an odyssey to Guinea-Bissau’s Festival de Bubaque 84 BRIEFING At the car wash in Timbuktu; Nigerian singers 2face Idibia and Wizkid 86 LIFESTYLE South African singer and chef J’Something; glammedup ‘mama puts’ in Lagos 88 TRAVEL Tanzania’s boutique hotels 90 DAY IN THE LIFE Gerald Madziyire, marathon man and obstetrician
This issue carries an insert between pages 66-67 for selected countries
3
4
EDITORIAL
THE AFRICA REPORT A Groupe Jeune Afrique publication
BY PATRICK SMITH
57-BIS, RUE D’AUTEUIL – 75016 PARIS – FRANCE TEL: (33) 1 44 30 19 60 – FAX: (33) 1 44 30 19 30 www.theafricareport.com
CHA I R M A N A ND F O UND E R BÉCHIR BEN YAHMED
Let’s join the dots
A
t our offices in Paris, a wall map shows the startling spread of the Sahara and Kalahari deserts and how that has speeded up over the past five decades. On our desks, headlines from international papers record the relentless tragedies of migrants drowning as rickety boats bob across the Mediterranean. As Europe obsesses over immigration, its links with climate change – desertification, failing crops and extreme weather – are roundly ignored. On another frontline, the war between secularist nationalists and Islamists in Libya has escalated, bisecting the country. It is barely four years since Britain’s David Cameron and France’s Nicolas Sarkozy stood shoulder to shoulder with interim leader Mahmoud Jibril in Tripoli, promising to play a leading role in the building of the new Libya while slapping themselves on the back for sending in the bomber jets that pushed Muammar Gaddafi’s regime to a bloody end. Within months, Sarkozy lost power and Cameron lost interest. Elsewhere, in mid-July, global leaders met in Addis Ababa to set out a new agenda for financing the roads, ports, railways, schools and clinics that are the cornerstones of economic growth. The talk was all about the dominance of the market and its miracle in even the poorest countries. Having mostly ignored the aid pledges they made at the G7 summit at Gleneagles a decade ago, the richest countries told the Addis summit that they plan to raise aid levels to 0.7% of their gross domestic product by 2030 – so far away, the promise is meaningless. Does that mean we should go back a decade to Bob Geldof
P UB L I S HE R DANIELLE BEN YAHMED publisher@theafricareport.com E X E CUT I VE P UB L I S HE R JÉRÔME MILLAN
haranguing Western politicians? No. It would be far better for Africa and Europe to inject some honesty into the conversation. A step in the right direction is the investigation into the more than $50bn in illicit financial flows that flood out of Africa each year, according to South Africa’s former president Thabo Mbeki and Carlos Lopes, head of the UN Economic Commission for Africa. A debate on tax and how African governments can use it to finance public goods is a massive step forward from sterile aid-dependency debates. But the focus on illicit flows, essenIt is a time tially capturing money for harder stolen by businesspeople and politicians, bargains has an overwhelming if Africa political dimension, as Mbeki and Lopes disis to seize creetly concede. its chance A combination of at these diplomacy, chivvying and naming and shamtwo critical ing will be required if summits Africa is to seize the opportunities at two critical international forums: the UN conference on the Sustainable Development Goals in mid-September and climate treaty talks in December (see page 10). At a time when the World Bank forecasts that the balance of economic power has slipped back to the rich world and the developing world is due for a bout of slower growth, it is a time for harder negotiations and harder bargains. Telling the horror stories and determinedly joining up the dots between migration, climate change, conflict and corruption would serve Africa well as it makes its case at these two summits. ●
M A R K E T I NG & D E VE L O P M E NT ALISON KINGSLEY-HALL E D I T O R I N CHI E F PATRICK SMITH M A NA G I NG E D I T O R NICHOLAS NORBROOK editorial@theafricareport.com A S S I S TA NT E D I T O R CHARLIE HAMILTON A S S O CI AT E E D I T O R MARSHALL VAN VALEN E D I T O R I A L A S S I S TA NT OHENEBA AMA NTI OSEI R E G I O NA L E D I T O R S PARSELELO KANTAI (EAST AFRICA) CRYSTAL ORDERSON (SOUTHERN AFRICA) TOLU OGUNLESI (NIGERIA) BILLIE ADWOA MCTERNAN (GHANA) S UB - E D I T O R S ALISON CULLIFORD ERIN CONROY P R O O F R E A D I NG KATHLEEN GRAY A RT D I R E CT O R MARC TRENSON DESIGN VALÉRIE OLIVIER (LEAD DESIGNER) CHRISTOPHE CHAUVIN (INFOGRAPHICS) P R O D UCT I O N PHILIPPE MARTIN CHRISTIAN KASONGO R E S E A R CH SYLVIE FOURNIER P HO T O G R A P HY CLAIRE VATTEBLED O NL I NE PRINCE OFORI-ATTA SALES SANDRA DROUET SOLÈNE DEFRANCQ Tel: (33) 1 44 30 18 07 – Fax: (33) 1 45 20 09 67 sales@theafricareport.com CONTACT FOR SUBSCRIPTION: Webscribe Ltd Unit 8 The Old Silk Mill Brook Street, Tring Hertfordshire HP23 5EF United Kingdom Tel: + 44 (0) 1442 820580 Fax: + 44 (0) 1442 827912 Email: subs@webscribe.co.uk 1 year subscription (10 issues): All destinations: €39 - $60 - £35 TO ORDER ONLINE: www.theafricareportstore.com D I F CO M INTERNATIONAL ADVERTISING AND COMMUNICATION AGENCY 57-BIS, RUE D’AUTEUIL 75016 PARIS - FRANCE Tel: (33) 1 44 30 19-60 – Fax: (33) 1 44 30 18 34 advertising@theafricareport.com A D VE RT I S I NG D I R E CT O R NATHALIE GUILLERY WITH JEANNY CHABON R E G I O NA L M A NA G E R S FADOUA YAQOBI LILIA BENACEUR ELODIE BOUSSONNIERE US R E P R E S E NTATI VE AZIZA ALBOU a.albou@groupeja.com
editorial@theafricareport.com THE AFRICA REPORT
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PRINTER: SIEP 77 - FRANCE N° DE COMMISSION PARITAIRE : 0715 I 86885 Dépôt légal à parution / ISSN 1950-4810 THE AFRICA REPORT is published by GROUPE JEUNE AFRIQUE
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LETTERS For all your comments, suggestions and queries, please write to: The Editor, The Africa Report, 57bis Rue d’Auteuil - Paris 75016 - France. or editorial@theafricareport.com
LET’S PROTECT AFRICA’S HERITAGE
I
SOUTH AFRICA End of rainbow diplomacy
The Nigerians are coming
t was refreshing to see the African Brands conversation taking a global lead [‘African brands: Fight for your copyright’, TAR72 July 2015]. While there is a booming ‘real-fake’ business in most parts of Africa, it is equally true that Fight governments need to educate on the pros for your and cons of protecting original pieces of work opyright and traditional culture. Most of us are not aware of how to go about protecting our intellectual property. I would suggest brand campaigns that foster African identity. Africans only ‘wake up’ to our heritage when it’s highlighted by foreigners, such as when Louis Vuitton launched their Maasai product range. It was only then that Kenyans started laying claim to ownership of the Maasai shuka; not to mention the kiondo and the kikoy which have been patented outside our borders. However, the question remains, whose responsibility is it? The government or the people? Levis Maina Chairperson, Africa Brand Summit, via email w w w.t h e a fr ica r e po r t .c o m
N ° 7 2 • J U LY 2 0 15
How Africa can establish and defend its brands against global competitors
GROUPE JEUNE AFRIQUE
INTERNATIONAL EDITION
Algeria 550 DA • Angola 600 Kwanza • Austria 4.90 € • Belgium 4.90 € • Canada 6.95 CAN$ • Denmark 60 DK • Ethiopia 75 Birr • France 4.90 € Germany 4.90 € • Ghana 7 GH¢ • Italy 4.90 € • Kenya 410 shillings • Liberia $LD 300 • Morocco 50 DH • Netherlands 4.90 € • Nigeria 600 naira Norway 60 NK • Portugal 4.90 € • Sierra Leone LE 12,000 • South Africa 35 rand (tax incl.) • Spain 4.90 € • Switzerland 9.90 FS • Tanzania 9,000 shillings Tunisia 8 DT • Uganda 9,000 shillings • UK £ 4.50 • United States US$ 6.95 • Zambia 30 ZMW • Zimbabwe US$ 4 • CFA Countries 3,500 FCFA
for the first time, which means that their understanding of insurance is very low. In order to drive lasting adoption, the industry needs to combine the power of mobile functionality with an effective, high-touch education. We employ a vast agent force that registers customers in person, creating an opportunity to inform and engage the consumer. We believe technology is a vital enabling factor, but only when it is coupled with education. Gustaf Agartson, CEO, Bima, via email
ETHIOPIA ON TRACK FOR TOURISM
Ethiopia has for decades been equated with aviation [‘See Addis, think Dubai’, TAR70 May 2015], while the country itself was overlooked as employment. And the South African a tourism destination. Those days have GOOD AND GREEN Renewable Energy Technology Centre now gone and Ethiopia’s tourism Renewable energy is already an is now training young South Africans marketing strategy takes advantage inspiring story in South Africa. Your to operate and maintain these renewable of its natural attractions and UNESCO article ‘Green today, cheap tomorrow’ energy plants, creating truly sustainable World Heritage sites. Much else has [TAR71 June 2015] could actually have livelihoods for decades to come. yet to be done, such as boosting training Evan Rice, CEO GreenCape, via email for hospitality employees and more been titled ‘Green and cheap today’. Average prices for wind and solar PV aggressive promotion at trade shows. in the Renewable Energy Independent Ethiopia can become one of Africa's Power Producer Procurement leading tourist destinations by the PERSONAL TOUCH Programme fourth round, announced end of the decade, provided visas can Mobile technology creates a vast in April 2015, were 60% and 75% lower be obtained on arrival, a loosening of distribution opportunity for insurance than prices four years ago, and both the currency regime and a streamlining are significantly cheaper than projected in Africa [‘Insurance: Future is micro of bureaucracy around the purchase and mobile’, TAR70 May 2015], but the prices for the country’s new-build coal of SIM cards and data bundles. Prof. Dr. Wolfgang H. Thome, success of products that rely solely on power stations. Renewable energy Aviation and tourism consultant and technology will always be limited. Most is delivering broader socio-economic travel writer, via email customers are purchasing insurance benefits such as local ownership and HOW TO GET YOUR COPY OF THE AFRICA REPORT
On sale at your usual outlet. If you experience problems obtaining your copy, please contact your local distributor, as shown below. GHANA: TM HUDU ENTERPRISE, T. M. Hudu, +233 (0)209 007 620, +233 (0)247 584 290, tmhuduenterprise@gmail.com – KENYA: NATION MEDIA GROUP, Antony Mutunga,+254 (0)72 15 19734, amutunga@ke.nationmedia.com – NIGERIA: NEWSSTAND AGENCIES LTD, Solomon Otinwa, +234 (0)709 8123 459, newsstand2008@gmail. com – SIERRA LEONE: RAI GERB ENTERPRISES, Mohammad Gerber, +232 (0)336 72 469, raigerbenterprise@gmail.com – SOUTHERN AFRICA: RNA DISTRIBUTION, Butch Courtney, +27 (0)11 602 9800, butchc@mad.co.za • SUBSCRIPTIONS: RAMSAY MEDIA, Karin Mulder, +27 860 100 204, subs@ramsaymedia.co.za – TANZANIA: MWANANCHI COMMUNICATIONS, Emmanuel J Lyimo, +255 716 500 500, elyimo@tz.nationmedia.com – UGANDA: MONITOR PUBLICATIONS LTD, Micheal Kazinda, +256 (0)702 178 198, mkazinda@ug.nationmedia.com – UNITED KINGDOM: COMAG, Mark Swan, +44 (0)1895 433791, Mark.Swan@comag.co.uk – UNITED STATES & CANADA: LMPI, Sylvain Fournier, +1 514 355 5610, lmpi@lmpi.com – ZAMBIA: BOOKWORLD LTD, Shivani Patel, +260 (0)211 230 606, bookworld@realtime.zm – For other regions go to www.theafricareport.com ZIMBABWE: PRINT MEDIA DISTRIBUTION, Ian Munn, +263 778 075 147, ianmunn@mweb.co.zw
ADVERTISERS’ INDEX NESTLE p 2; LAFARGEHOLCIM p 5; LIQUID TELECOM p 7; RDB-RWANDA DEVELOPMENT BOARD p 9; ICB 2015 p 17; DSTV MEDIA SALES p 20; REPUBLIC OF GUINEA p 32; BENCH EVENTS - AHIF p 39; THE ECONOMIST ETHIOPIA SUMMIT p 39; SERENA HOTELS p 46; CELLULANT p 51; SGS KENYA LTD p 53; GEP UIOGS p 53; BEST WESTERN PREMIER p 55; ADEXEN p 57; INFORMA NIGERIA COM p 57; AFRICA INVESTMENT FORUM p 59; THE GLOBAL AFRICAN INV. SUMMIT p 63; BAUMA CONEXPO p 65; GEP AFRICA OIL WEEK p 65; GLOBAL MEDIA ALLIANCE p 71; TAR SUBS. p 75; ECOWAS p 77; C2I EASYHALLS p 79; PROJUSTICE p 79; SPINTELLIGENT IPAD p 79; ECOMOF p 87; DDP OUTDOOR p 87; TAR DIGITAL p 89; CNN p 91; SAHAM GROUP p 92 THE AFRICA REPORT
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8
THE QUESTION To respond to this month’s Question, visit www.theafricareport.com. You can also find The Africa Report on Facebook and on Twitter @theafricareport. Comments, suggestions and queries can also be sent to: The Editor, The Africa Report, 57bis Rue d’Auteuil, Paris 75016, France or editorial@theafricareport.com
YOUR VIEWS:
As of 1 July, Mozambique decriminalised homosexuality in its new penal code, legalising same-sex relationships. But more than 30 African countries still have anti-gay laws including in Nigeria, where a bill signed in 2014 contains penalties of up to 14 years in prison and bans gay marriage.
Humans deserve to live in dignity as long as their actions do not harm another. OGee Koma
Are gay rights a luxury in Africa?
It’s not a luxury because it’s totally and completely contrary to the African culture. Ajibu Kalyos
Yes DENIS NZIOKA Kenyabased LGBTIQ and sex workers activist and journalist
In the past five years or so, around a fifth of African countries have taken the extraordinary step of re-criminalising same-sex sexualities by enacting new or reviewing existing legislations against such. There has been a marked increase, too, of American Evangelical work in some of these countries that share Evangelical views on social issues such as abortion, the death penalty and homosexuality. Whereas health and HIV have necessitated African countries to reconsider ‘working’ with certain populations, including men who have sex with men, bisexual men and transgender persons, in a bid to stem the spread of HIV, there still exists uneasiness from most governments in these dealings. But even as same-sex sexualities are further targeted, there has been a resounding ‘coming out’ of otherwise hidden communities of LGBTIQ (lesbian, gay, bisexual, transgender, intersex and questioning) people who have been living in the shadows. Faced with new challenges both from within and without, these communities are slowly, yet subtly, taking charge of their own emancipation. They are on the streets, on social media, in schools and where you least expect them. The revolution is here. Whereas Europe and the Americas are said to have reached the pinnacle of ‘gay rights’, back home that remains a dream for most. Same-sex marriage is a minority issue, not a priority for us. Our priority remains the most basic: food, shelter, clothing, a good education, a stable income. The rest, well, the rest is just luxury. ●
Our culture is not a culture of hate and intolerance! African culture is about inclusiveness, brotherliness and togetherness! What Africans are doing today is not African culture! Anengiyefa Alagoa It’s not something to debate upon, homosexuality and lesbianism are wrong biologically, anatomically, physiologically and scripturally. Ronald Magemeso Gay rights are not a luxury because we don’t have gays in Africa. I have never had any gay group protesting for rights in any African country. Mwesigwa Emmanuel Sr.
No KASHA J. NABAGESERA Ugandan LGBT rights activist
From my understanding ‘luxury’ is used to refer to anything you do not necessarily have to have, can live happily without and only acquired because you can afford it. Therefore the use of the term luxury in reference to gay rights in itself is wrong. Gay rights, or human rights of gay people as we prefer to know them, can never be a luxury. Human rights should never be a luxury to any group. Human rights to all categories are an inherent and fundamental part of humanity. In Africa, the human rights of gay people are constantly abused or denied and the whole concept of asking to be treated as a human being with rights in contrast to the current position where such people are treated as second-class citizens is precisely how it has come to be termed as a luxury. We constantly engage in this fight for our rights, not because it is a battle we just enjoy taking part in, but because to continue is to live on our knees. Being treated as second-class citizens is simply not a luxury we can afford or one that we accept. We have rights as human beings and one’s sexuality should never be a factor in denying or recognising these rights. Therefore, the answer to your question is a no. The human rights of gay people are not a luxury but a right. ● THE AFRICA REPORT
It’s an error and a huge luxury Africa cannot afford. Caleb Ndubuisi Egbue Africa has more pressing issues to address such as poverty, illiteracy, corruption and the lack of technology and industries. In my opinion, the issue of gay rights in Africa is misplaced priority. Ayegh Lubem •
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BRIEFING
SIGNPOSTS
BURUNDI Thousands took to the streets of the capital, Bujumbura, in protest at President Pierre Nkurunziza’s corralling of the 21 July election.
SOCIAL MEDIA FACEBOOK WOOS AFRICA
NIGERIA Protestors marched in Abuja calling for the government to find the Chibok schoolgirls kidnapped by Boko Haram last year.
went on trial in Dakar for war crimes, the first such prosecution by another African state.
CLIMATE CHANGE
Green diplomacy wanted
T
his has been a busy start to the summer for diplomats. There was a breakthrough on the Iran deal, a new bailout for Greece and the US-EU trade deal was reignited. But they will not be heading for the beach just yet. The flurry of diplomatic manoeuvring continues. Ahead of December’s global climate deal conference in Paris, China’s proposal for capping its emissions made a huge thud on desks around the world from its sheer number of pages. Germany’s own proposal, in a 1,000page email attachment, followed on to clog up the inbox of the negotiators. But while the climate officials sharpen their pencils and their rhetoric, how ready are African diplomats? South
SOURCE: FACEBOOK
The social networking platform has turned its sights firmly on the continent with news it is to open its first African office, in Johannesburg, headed by ex-Ogilvy South Africa chief Nunu Ntshingila. Africa has seen a 20% jump in visits to the site in nine months. This is almost three times Facebook’s international average.
SENEGAL Chadian former dictator Hissène Habré
In conjunction with Geopoll, The Africa Report asked 100 Tanzanians the question: What should be the number-one priority for Jakaya Kikwete’s successor? 1- Economic growth 2- Security 3- Combatting corruption 4- Health and education 5- Other
?
Africa’s former environment minister Valli Moosa is coordinating the global discussions, and Pretoria seems well prepared. Elsewhere, not so much. With the continental bodies unable to articulate a strong position – the AU is riven with mistrust and the African Development Bank is in a leadership transition – who else can pick up the baton? There is cash for bankable renewable energy projects out there, but countries like India are better organised and are hoovering up the funds. It is time for some strong leadership on the issue, especially as Africa has the chance to leapfrog centralised fossil fuel systems and switch straight to clean energy – see our story on page 60. ●
Combatting corruption Health and education
32%
27%
Other
7%
Security
15%
Economic growth
19%
GeoPoll is the world’s largest mobile surveying platform and sample provider in emerging markets, enabling companies and organisations to gather quick, accurate and in-depth insights. To learn more or to sign up to receive surveys visit Research.GeoPoll.com
ALEXANDER JOE/AFP
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BRIEFING
NIGERIA Muslims defied the rains in Lagos to come out in large numbers for the Eid al-Fitr prayers marking the end of Ramadan.
SOUTH AFRICA The MTV Africa Music
Awards fêted the continent’s talent (including D’Banj) at a star-studded gala in Durban.
11
KENYA In Nairobi, the Westgate shopping mall
opened for the first time since Al-Shabaab gunmen killed 67 people there in September 2013.
CARL DE SOUZA/AFP; SEYLLOU/AFP; OLAMIKAN GBEMIGA/AP/SIPA; AKINTUNDE AKINLEYE/REUTERS; FRENNIE SHIVAMBU/GALLO IMAGES/GETTY IMAGES; THOMAS MUKOYA/REUTERS
13
18 Egypt
5 Libya
51
HOTELS RACING FOR POLE POSITION The world’s largest hotel giants are scrambling to construct scores of new projects in 2015.
Ethiopia 8
Nigeria 7 Rwanda
THE BUILDING BUG BITES Hotel chains are expanding their networks, with some of the world’s largest brands planning multiple construction projects. Here are the top 10 target countries with the number of future hotels announced as of 2015.
8 Kenya
China’s heavy African investment does not always translate into jobs.
22
hotels
1st
16
hotels
2nd
11
hotels
3rd 13 South Africa
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9,407
663.5
China Nonferrous Metals Mining
6,064
2,011.8
ZTE
2,404
406.7
Huawei Technologies
2,188
1,626.6
Powerway Renewable Energy
1,347
133.3
China National Petroleum
1,071
6,773
GAIG Stock
1,008
128.2
ZTS International Industrial
656
71
China Central Television
241
85.9
76
44
to face up to this scourge we need to be prepared.”
ENERGY TIME TO POWER UP South Africa is moving ahead with its plan to build six new nuclear power stations, which will provide an additional 9,600MW of nuclear energy by 2030 at an estimated cost of up to $81bn. The government will issue its finalised tenders for the six plants by the end of July and hopes the first of the facilities will go live within eight years and provide around 1,000MW of power.
Beiqi Foton Motor
“In order
ONS ABID FOR JA
SOURCE: EUROPEAN COMMISSION
23.3%
Investment ($m)
China-Africa Development Fund
TAX HAVENS NAMED AND SHAMED A new European Commission “blacklist” of the world’s tax havens has revealed that almost a quarter of the 30 locations are British Overseas Territories or Crown Dependencies.
Jobs created
Tunisia’s President Béji Caïd Essebsi appealed for international help after 38 tourists were killed when a gunman opened fire on a beach in Sousse on 26 June.
SOURCE: FDI INTELLIGENCE/FINANCIAL TIMES
Morocco
Algeria
SOURCE: W HOSPITALITY GROUP
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EMPLOYMENT CHINA’S AFRICAN IMPACT
12 Tunisia
BRIEFING
CALENDAR
AUGUST
BAUMA CONEXPO AFRICA 15-18 September
SEPTEMBER
ECONOMIC IDEAS FESTIVAL 5-7 August
PAN-AFRICAN LITERACY & RASA CONFERENCE 2-5 September
ACCRA | GHANA The Young Professional Economists Network (YPEN)’s maiden flagship event looks at ‘Ideas to transform a rising Africa’. ypenetwork.org
AFRICAN GROWTH & OPPORTUNITY ACT (AGOA) FORUM 24-27 August
CAPE TOWN | SOUTH AFRICA Oxford University Press is the main sponsor of this literacy-promoting event. rasa2015.co.za M
AFRICA FASHION WEEK LONDON 7-8 August
LIBREVILLE | GABON Discussing how to make the most of opportunities from the new US trade act. agoa.ga
NORTH AFRICA HEALTHCARE SUMMIT 14-15 September
LONDON | UK africafashionweeklondon.com
AFRICAN WORLD FESTIVAL 14-16 August MICHIGAN | US thewright.org/african-world-festival
CLEAN POWER EAST AFRICA 27-28 August NAIROBI | KENYA New renewables conference at the power industry forum. eapicforum.com
JOHANNESBURG | SOUTH AFRICA A trade fair for the construction and mining machinery sector. bcafrica.com M
RUGBY WORLD CUP 2015 18 Sept. – 31 Oct. ENGLAND | UK As the only African team participating in the competition, South Africa’s Springboks, the two-time rugby world champions, aspire to carry home the trophy for a third time. rugbyworldcup.com
MARRAKECH | MOROCCO northafricahealthcare.com
CARDS & PAYMENTS EAST AFRICA 15-16 September NAIROBI | KENYA terrapinn.com
NIGERIA COM 22-23 September LAGOS | NIGERIA nigeria.comworldseries.com
NAIROBI INTERNATIONAL BOOK FAIR 23-27 September NAIROBI | KENYA Workshops, launches, kids’ events and the Jomo Kenyatta Prize. kenyapublishers.org
ACNOA
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ALL AFRICA GAMES (AAG) 4-19 September BRAZZAVILLE | CONGO
LAKE OF STARS FESTIVAL 25-27 September
Sports fans from all 54 African nations will head to Congo-Brazzaville this September to cheer on their teams in the 2015 Games, with this year also marking the Golden Jubilee of the event. Athletes are eager to participate in the pan-African multi-sport competition, which is held every four years and is officially recognised by the International Olympic Committee (IOC), but so far things are not running smoothly in all camps. As The Africa Report went to press, Ghana’s government had yet to approve the $4m budget needed to send its 350 athletes to Brazzaville for the event, and Zimbabwe’s Under-23 soccer coach Kalisto Pasuwa reportedly quit the national team after not being paid for his work since September by the football association, ZIFA. africaolympic.net THE AFRICA REPORT
MANGOCHI | MALAWI Nigerian musician Ric Hassani, South Africa’s Toya Delazy and Scottish hip-hop trio Young Fathers perform alongside local artists at the award-winning festival. lakeofstars.org •
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19 >21 NOVEMBER 2015 BRAZZAVILLE INTERNATIONAL FORUM FOR INVESTMENTS IN CONGO Platform for growth & opportunities
Take part in the Congo’s economic transformation A unique opportunity to network with high-level decision makers and to discover investment opportunities in the Congo. 3 DAYS of exhibits & BtoB meetings 800 PARTICIPANTS including 70 SPEAKERS and top level experts and over 90 EXHIBITORS 45 COUNTRIES REPRESENTED
Information and registration:
REPUBLIC OF CONGO
www.icb2015.com
7 PROMISING INDUSTRIES: oil and hydrocarbons, mining, agriculture and agro-industry, forestry and wood industry, building and public works, tourism and hospitality, and financial services.
Twitter : @ICB_2015
FRONTLINE
50
21
THE
Koki Mutungi • Thuli Madonsela • Ge
tabil a • Mensa O Attahiru Jeg
Didier Drogba
rvais Koffi Djondo • Un ity
Dow
Magic System • Jerry Brown • Jacque Kahura
Moursli Oumou Sall Seck • Juliana Rotich • Nic Rudnick • Cherkaoui El
• Ge Aliko Dangote • a d n so u M Monica
udi neviève Sang
Mmusi Maimane • So uad
Massi
TRAILBLAZERS
By Charlie Hamilton, Nizar Manek, Billie Adwoa McTernan, Nicholas Norbrook, Oheneba Ama Nti Osei, Crystal Orderson, Tolu Ogunlesi, Rose Skelton and Marshall Van Valen
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hey take risks. They speak out. They change societies. They build empires, they stand firm and they stand up. They are the pioneers who will lead us to the Africa of tomorrow. Our list of African trailblazers showcases a startling diversity of talent and grit. From the doctor who battled Ebola on the frontline in Liberia to the Public Protector standing up to a president and the man who made his billions without touching oil, there is a determination to succeed, an iron will. Their success is honoured partly because it is lonely, like that of the Algerian singer who dressed as a man to tour the country with her rock band to escape Islamist threats to her life and the South African businessman who ignored colleagues
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who mocked him for venturing out into the continent. But it is also celebrated because it is thrilling. The physicist unravelling the mysteries of the universe is an inspiration to a generation of African scientists. The electoral commissioner who ushered in a new era of democracy despite huge pressure to throw the result has quite possibly changed the trajectory of his country forever, touching lives today and tomorrow. The choice of names you see here is not definitive. Canvassing our correspondents and wider networks, we thrashed out a long list. We brought in voices from all the corners of the continent. The 50 men and women you see here are the result of our internal debate, but who did we miss? You can add your own voice at theafricareport.com ●
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ALGERIA
KAMEL DAOUD With words he reinvents
SUNDAY ALAMBA/AP/SIPA
Daoud’s debut novel, The Meursault Investigation, retells Albert Camus’s classic existential tale The Stranger. US public broadcaster NPR described the book as spotlighting “the historical realities of colonialism that The Stranger left in the shadows […]. Steeped in independent thinking, it offers an illuminating, if controversial portrait of today’s Algeria.” In late 2014, an Algerian Salafist called for Daoud, a journalist who has written for Le Quotidien d’Oran, to be executed for blasphemy, describing him as a “collaborator”.
NIGERIA
ATTAHIRU JEGA
DEMOCRATIC REPUBLIC OF CONGO
DENIS MUKWEGE A healer of visible and invisible wounds KENYA
IRENE KOKI MUTUNGI Helping women to fly high
KENYA AIRWAYS
When Jega got the offer in 2010 to head Nigeria’s electoral commission, his family and friends discouraged him from accepting. It would, they argued, destroy the integrity he had built as the courageous leader of the university teachers’ trade union between 1988 and 1994 – years marked by strong military repression. Jega asked himself the question: “What is integrity if it can’t be tested?” He took the job. His term over, in June 2015 he left office with his head held high, having surmounted great odds – including a tardy voter registration process, unfounded accusations of partisanship and a series of conspiracies aimed at undermining him – to deliver a history-making election and a democratic handover of power to the opposition.
THIERRY MICHEL/AFP
The man who organised a fair vote against the odds
Mutungi is a successful woman in a man’s world. As Kenya Airways’ first female pilot, in 2014 she became the first-ever African female to rise to the position of captain. She plans to start a foundation and use her success to help other women, encouraging them to pursue jobs that require technical training.
The obstetrician and founder of Panzi Hospital in Bukavu in the eastern Democratic Republic of Congo is bringing attention to the use of rape in war and helping women to recover from violence. In 2012, he took to the floor of the United Nations to denounce: “16 years of torture; 16 years of mutilation; 16 years of the destruction of women, the only vital Congolese resource; 16 years of destruction of an entire society”. In addition to its work with the female victims of war, Panzi Hospital, founded in 1998, provides general healthcare services to the community. Mukwege continues to campaign globally against sexual violence as a weapon of war.
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SOUTH AFRICA
THULI MADONSELA
VATHISWA RUSELO/SOWETAN/GALLO IMAGES/GETTY
A protector for the people Depending on who you speak to, people either love Madonsela or have no love for her at all. In 2014, her explosive report on the multimillion-rand upgrades to the private homestead of President Jacob Zuma rocked the country. The fallout from the probe continues. Madonsela has been called an agent of the US Central Intelligence Agency and a traitor. Despite the namecalling, she says she will continue fighting for the poor and investigate corruption. Parliament has now made her life as the public protector difficult, with drastic budget cuts to curtail her work. Madonsela has received four honorary doctorates, the latest one in June for her “courageous execution of her office’s duties” and protecting the values of accountability and openness.
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SOUTH AFRICA
MMUSI MAIMANE An oppositionist for a new age Described by supporters as the Obama of Soweto, 35-year-old Maimane is the Democratic Alliance’s first black leader. As the leader of the opposition in parliament, Maimane faced up to the African National Congress (ANC) and President Jacob Zuma on issues like corruption and the electricity crisis. He is confident the party will win the 2019 national elections and has his eyes set on the country’s economic heartland, Johannesburg, in the 2016 local elections.
JOAO SILVA/THE NEW YORK TIMES/REA
T. BREUGEM/GALLO/GETTY
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SOUTH AFRICA
JULIUS MALEMA A voice that will not be silenced NIGERIA/GHANA
A ruling party firebrand, Julius Malema shocked the country when he split from the ANC and formed the leftist Economic Freedom Fighters (EFF) on the eve of the 2014 election. The EFF won more than a million votes, and Malema has become a vocal critic demanding accountability from the ANC and President Jacob Zuma. “The ruling party will try to muzzle the debate and wants to direct [it] in a manner that is beneficial to them. We will never allow them to suppress our voice,” Malema told The Africa Report. Some expelled members have called Malema a dictator, but he dismisses this and says the party will be stronger than ever in the 2019 election.
TAIYE SELASI Harbinger of a new era of African emigrants
“It’s not just about making good products, they have to be affordable”
HAMILTON/REA
At 29, Congo-Brazzaville’s Vérone Mankou created VMK, a tablet and smartphone company based in Brazzaville in 2009. While its devices were first manufactured in China, VMK opened a production plant in July and plans to open shops in half a dozen African countries this year. THE AFRICA REPORT
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The writer, who helped to popularise the term Afropolitan and published her debut novel, Ghana Must Go, in 2013, has been at the forefront of recent skirmishes in the literary world. “The most scathing critique of the African writer,” she writes, “is not that she is insufficiently talented but that she is insufficiently African.” Her struggle to avoid the “essentialising” push of publishers recalls struggles by other diaspora writers. Likewise, she rails against pressures African writers place on each other – for example when Helon Habila accused NoViolet Bulawayo of “performing Africa”.
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Business pioneers These leaders know how to make money and bring change.
MALI
OUMOU SALL SECK A champion of decentralisation and development Elected as the first female mayor of a town in northern Mali in 2004, Seck is a fervent supporter of strengthening local governance. She campaigned as an independent to fight against female circumcision and to build economic infrastructure and educational facilities in the town of Goundam near Timbuktu. Seck fled the area when it was taken over by Tuareg and jihadist rebels in 2012, but is now back and rebuilding, using her heritage as the child of parents of different ethnic groups to call on all sides to work together for Mali’s development.
BOTSWANA
NIC RUDNICK
UNITY DOW
Communication and connections
Standing up for justice
The founder of Liquid Telecom is working on his dream of putting the whole continent on one openaccess fibre-optic network.
Active on social media and passionate about early childhood development, Botswana’s education minister Unity Dow, 56, is interested in helping the leaders of tomorrow. A human rights campaigner and lawyer, Dow was appointed as the country’s first female High Court judge in January 1998. She fought a law that stopped women from passing on their nationality to their children and ruled in favour of the San bushmen when the government tried to evict them from their land in the late 1990s and early 2000s. Dow has played an important role in advancing laws relating to child support, rape and married women’s property rights.
BOTSWANA
LINAH MOHOHLO Rainy-day thinker She helped set up the country’s sovereign wealth fund in 1994, and as Central Bank governor since 1999 has brought it continent-wide respect.
DREW ANGERER/GETTY
EMMANUEL DAOU BAKARY
ZIMBABWE
NIGERIA
ALIKO DANGOTE The real economy for me The billionaire has developed a special skill set that has enabled him to make a fortune in an oil-rich country without dealing in crude. SOUTH AFRICA
WHITEY BASSON King of the aisles Basson took retailer ShopRite into the continent before its peers – opening a store in Namibia in 1990 – and now has shops in 16 countries. ZIMBABWE
KRIS KRÜG FOR POPTECH
MORGAN NZWERE
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Reaping what you sow The chief executive of Seed Co. has managed to steer clear of Zimbabwe’s economic implosion, finding new markets in other African countries.
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Artistic pathfinders
CÔTE D’IVOIRE
DIDIER DROGBA
Creative talents whose originality has pushed them to the forefront.
Scoring goals for Chelsea and for peace As a professional footballer, he may be the all-time top scorer for Côte d’Ivoire. He may also be the first African to score 100 Premier League goals during a glittering career at Chelsea. But it is in the role of peacemaker that Drogba steps beyond the baubles of professional sport into the lives of his countrymen. After his impassioned televised call for peace in 2005 was answered with a ceasefire, Drogba was behind the historic Africa Cup of Nations qualifier played in the rebel stronghold of Bouaké. He also participated in the country’s Commission Dialogue, Vérité et Réconciliation.
CÔTE D’IVOIRE S. LEE/THE GUARDIAN/SIPA
MAGIC SYSTEM Magic System has sold millions of albums worldwide, making it one of Africa’s bestselling bands. It was the group’s first hit, ‘Premier Gaou’, that propelled them to international success, topping the charts in Europe in 2002 and bringing zouglou, a new wave of Ivorian dance music, to worldwide popularity. Magic System is the pioneering author of the highly charged, beat-driven mixture of Congolese soukous, Caribbean zouk and West African rhythms. Its music charts the daily realities of Abidjan youth and speaks as much to its Abidjan counterparts as it does to those living in the diaspora. The group is the voice of a generation and brought an African sound that reached global success.
EQUATORIAL GUINEA/SPAIN
CONCHA BUIKA Fire girl The raw and emotional voice of this singer and poet has made her a star of the jazz and fusion music scenes. KENYA
JUST A BAND Universe creators The musical outfit are much more than their name, animating their own music videos and creating a unique universe for their characters to live in. SOUTH AFRICA
TRACEY ROSE Playing with the politics of identity The South African performance artist uses her own body and body hair to challenge perceptions. Her work includes parodies of Western classics.
SPI/ICON SPORT
Zouglou at its zenith
SOUTH AFRICA
MARVIN RAMALEPE (DJ SPOKO) A beat to follow DJ Spoko is one of the leaders of the South African house scene, having started on the decks at the age of 12. He is one of the country’s most sought-after producers. GHANA
NANA OFORIATTA-AYIM The writer, creative historian, curator and filmmaker has embarked on a ‘cultural encyclopaedia’ of the African continent in which everyone can play a part.
YOURI LENQUETTE
A collector of cultures
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LIBYA
ALAA MURABIT
JACKIE NICKERSON
A voice for women in conflict
LIBERIA
JERRY BROWN West Africa’s bulwark against the Ebola epidemic As one of Liberia’s few practising surgeons, Brown was catapulted onto the frontline when the Ebola epidemic hit in late 2013. He set up emergency treatment units in the chapel, kitchen and laundry room of the Eternal Love Winning Africa hospital in Monrovia, where he is medical director. In March of this year, when the number of new cases began to taper off, Brown went back to a packed schedule of surgery. He has advocated for health reforms and urged Liberians abroad to come back to help build the country’s health institutions.
UGANDA
ALPESH PATEL Manufacturing Africa’s future
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“Are we going to be active participants
ALL RIGHTS RESERVED
A slick operator with bags of ambition, the Ugandan-born founder of mobile telephone handset manufacturer Mi-Fone wants to develop a low-cost African phone brand to beat foreign rivals. After quitting his job as head of sales in Africa at Motorola in 2007, he launched his company two months later. The firm has sold over 1.5m handsets in 17 countries and generated revenue in excess of $30m – the same amount he will be spending on a Nigerian manufacturing plant. Patel’s target is to be the continent’s first mobile telephone company with revenue of $1bn.
Canadian-born Murabit returned to Libya with her family at the age of 15 and became frustrated by gender discrimination while at medical school, for which she saw no justification in the Koran. There, she was elected as the only female on the board of the university student union. When the Libyan revolution broke out in 2011 she founded The Voice of Libyan Women to empower women to improve their status in society, risking her life for her activism when she appeared on the Gaddafi regime’s hit list. In July 2014, the United Nations Security Council selected her to be part of a board to review Resolution 1325 on women, peace and security.
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in the growth and development of our continent or are we going to be satisfied with being spectators?”
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Zambian lawyer Monica Musonda worked for years with the International Finance Corporation and Nigeria’s Dangote Industries before going it alone as an entrepreneur, setting up Java Foods, an agribusiness venture focused on markets in East and Southern Africa.
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MOROCCO
RAJAÂ CHERKAOUI EL MOURSLI A universe of understanding
BRIGITTE LACOMBE
The professor of nuclear physics won one of this year’s L’Oréal-UNESCO awards for women in science for her role in the discovery of the Higgs boson elementary particle. El Moursli says that Marie Curie, her high school teachers and Neil Armstrong’s achievements inspired her to launch a career in science and she hopes the award will encourage more women to follow her path. El Moursli is vice-president of the Université Mohammed V-Agdal in Rabat.
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GHANA
MENSA OTABIL
SOUTH AFRICA
VINCENT KHESWA The stars are not the only things so bright
ALL RIGHTS RESERVED
Voted the most influential person in Ghana in a 2015 e.tv poll, Otabil heads the International Central Gospel Church. The influential and outspoken preacher is unafraid to criticise the government, which has led members of the ruling National Democratic Congress party to accuse him of being an undercover member of the opposition. Through the church, Otabil set up one of the country’s first private universities, Central University College, in 1988. The charismatic preacher’s sermons and motivational speaking have gained a global audience through regular radio segments, live streaming and YouTube uploads.
RUVAN BOSHOFF
A man of motivation
SUDAN/BRITAIN
The work of the youngest nuclear astrophysicist in the country, 28-year-old Vincent Kheswa, prompted South Africa’s eminent research body, the National Research Foundation, to call him a whiz kid. He won the award for the best PhD from the South African Institute of Physics. Kheswa is working on understanding the nuclear structure of heavy metals. He and other physicists believe that this will bring us closer to understanding the origins of the universe. “The stars were always part of my questions, I always wondered what happened inside the stars and why they are so bright,” Kheswa told local media.
MO IBRAHIM A billionaire with an eye for good governance
TANZANIA
GENEVIEVE SANGUDI In the cut-throat world of Africa’s private equity sector, this financier has earned herself a reputation as one of the continent’s most sharp-eyed strategists. She has been managing director of Carlyle Group, a US-based asset management firm, since 2011, and handles a $500m Africa-focused investment fund. Prior to joining Carlyle, she headed the Nigerian division of Emerging Capital Partners. THE AFRICA REPORT
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ALL RIGHTS RESERVED
Finding Africa’s investment opportunities
The billionaire and philanthropist was among the first to realise Africans could and should have mobile phones – and became one of the continent’s first billionaires as a result. He founded Celtel in 1998 and sold its operations in 13 countries to Kuwait’s Zain in 2005 for $3.4bn. Since then Ibrahim has devoted himself and his wealth to motivating African leaders to improve their record of governance with his Mo Ibrahim Foundation and $5m prize. He regularly launches tirades that help to hold African leaders to account.
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KENYA
JACQUE KAHURA No barriers to learning The only African among the 10 people shortlisted for the 2015 Global Teacher Prize, Kahura works in a primary school in Kilifi, where she has developed an innovative approach to education that focuses on communication and problem-solving skills. Out of the classroom, she serves on the county education board, and coaches and mentors hundreds of teachers through newsletters, meetings and conferences. The Lifting the Barriers organisation she founded in 2009 aims to build a better future for children and women.
NIGERIA
CHUDE JIDEONWO AND ADEBOLA WILLIAMS MICHEL MONTEILS/L’OEIL DU SPECTACLE
Media gurus on a mission If the 2015 Nigerian presidential election were a movie, one of its stand-out stars would be StateCraft, the political communications agency founded in 2014. Contracted to manage the messaging for opposition candidate Muhammadu Buhari, the company succeeded in transforming the dour septuagenarian into a smiling, highfiving, fist-pumping, iPad-wielding statesman. StateCraft is the latest in a long line of projects the duo, both around 30, have dreamed up, including The Future Awards for young people, and Red Media Africa, a company with interests in publishing, television and radio.
ALGERIA/FRANCE
SOUAD MASSI
IBM RESEARCH
A voice for change and tolerance
NIGERIA
OSAMUYIMEN STEWART
A Berber of Kabyle origin, Massi has a hauntingly beautiful voice. Her folk rock combines sensitivity and poetry with the messages of an activist. In the 1990s, her political lyrics and rising popularity with the Algerian rock band Atakor made her a target of a series of death threats, leading her to disguise herself in male clothing and cut her hair short. In 1999, she left the band and relocated to France. She released an album this year, El Mutakallimûn (Masters of the Word), which fuses calls for justice and tolerance with classical Arabic poetry. Her music harks back to the 1960s US folk music scene and she reminds her listeners that history has examples of people of different religions living together and enriching their cultures.
Big data fights big problems
“What are you fixing? PIERS BENATAR/PANOS-REA
Stewart holds the title of IBM Distinguished Engineer, one of the tech company’s highest honours. He is also chief scientist at IBM’s research lab in Nairobi, which opened in 2013. Its recent efforts have focused on solutions to urban transportation, agriculture and water scarcity headaches.
What are you making? Who are you helping?” Kenya’s Juliana Rotich was a co-founder of the Ushahidi crowd-sourced data platform used to trace violence after the country’s disputed December 2007 elections. She is on the board of BRCK, the company that created a portable self-powered device to offer internet connectivity in hard-to-reach places. THE AFRICA REPORT
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Grey-haired greatness
EGYPT
BASSEM YOUSSEF
Some trailblazers never let up.
Preaching the power of laughter
KIPCHOGE KEINO
Eight months after ending his television programme, saying it was no longer safe to do satire in Egypt, the raucously popular Egyptian political satirist who mocked Hosni Mubarak, Mohamed Morsi and Abdel Fatteh al-Sisi alike joined the Harvard Institute of Politics as a resident fellow for the spring semester, 2015. The medical doctor began his programme on YouTube from his home with the protests against Mubarak in 2011. Soon, he clinched a TV deal and began his meteoric rise to fame. He is now teaching a course on the role of humour in breaking taboos and has set up a project in Dubai to support actors and comedians.
Gold for granddad
The grandfather of Kenyan athletics mentors the next generation.
MAGDI YACOUB
At the heart of the matter Record-breaking transplant surgeon is still a pioneering medic.
NGUGI WA THIONG’O
A man of mindful arguments The author’s departure from English fuelled neo-colonial resistance.
AÏCHA ECH CHENNA
Morocco’s Mother Courage The champion of single mothers is campaigning for abortion rights.
HUGH MASEKELA AMANDA MUSTARD/REDUX/REA
Trumpeter for democracy
GERVAIS KOFFI DJONDO Pan-African business boss
The Ecobank founder helped relaunch West African aviation with Asky.
LAZARUS SUMBEIYWO
ETHIOPIA/ UNITED STATES
East African peacemaker
GEBISA EJETA
GHANA
Greenbacks for the green revolution
YVONNE NELSON A model activist
Researcher Gebisa won the 2009 World Food Prize for his work developing droughtresistant sorghum – the world’s fifth most-grown cereal crop. He sits on the UN’s Scientific Advisory Board and has sounded warning bells about the lack of sufficient funding for agricultural research to feed a projected world population of nine billion people in 2050. THE AFRICA REPORT
First African to top the US charts, Masekela’s still hitting the high notes.
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In a country where most celebrities avoid straddling the line between showbiz and politics, the Ghanaian actress most recently caught the attention of the public and political elite when she co-launched a protest march – with celeb colleagues Lydia Forson and Sarkodie – against the power crisis in the country. In the lead-up to and following the event the #dumsormuststop hashtag steadily circulated around social media for weeks and made its way out of the Ghanaian Twittersphere into the diaspora. Having started her career as a model, Nelson is now a regular feature in Gollywood and Nollywood productions. •
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Helped lead South Sudan to become Africa’s newest country.
HENRY CHAKAVA Kenyan bookworm
Chakava was the first major black publisher in East Africa.
ALICE NKOM
Defender of the stigmatised The first Cameroonian female lawyer fights for gay rights.
VALENTIN YVES MUDIMBE Africa’s Edward Said
The Invention of Africa remains the seminal text for African studies.
REPUBLIC OF GUINEA
Guinea: ELECTION TIME
The last quarter of 2015 will be taken up with managing the electoral timetable and finalising the latest institutional projects to buttress democratic governance. Sydia Touré’s Union des forces républicaines (Union of Republican Forces, UFR) and the Parti de l’espoir pour le développement national (Party of Hope for National Development, Pedn), headed by Lansana Kouyaté, another former prime minister.
President Condé at the Davos Summit. The Minister of Mining, Kerfalla Yansané, is to his left and Côte d’Ivoire’s Prime Minister Daniel Kablan Duncan is in the middle.
T
PUBLI-INFORMATION
hree months from now, Guineans will head to the polls to choose their president for the next five years. The first round of voting is set for 11 October. Guinea has changed. So have its elections. The 25-member Independent National Electoral Commission (Ceni), which is responsible for organising and monitoring Guinea’s appointments with democracy, has played a key role since the political alternation in 2010. Its members are appointed on a parity basis: the majority and the opposition have 10 members each. Of the remaining five, two come from the civil service and three are representatives of civil society. So far, the chairman of the Ceni has always been plucked from civil society.
While waiting for the Constitutional Court to officialise the list of candidates, in the coming weeks President Alpha Condé will issue the decree convening the electoral body. Will he stand for the highest office in the land again? The political majority, which upholds his programme and project for society, are waiting for the day their candidate is inaugurated. So are opposition leader Cellou Dalein Diallo, president of the Union des forces démocratiques de Guinée (Union of Democratic Forces of Guinea, Ufdg), and, probably, other political parties, including former Prime Minister
MAINTAINING DIALOGUE BETWEEN THE MAJORITY AND OPPOSITION
Whoever wins, all the political players have been urged to meet the people’s expectations. They want free, fair elections without the political violence that has sometimes rocked the country in recent years. The presidential and local elections are now in sight. The Guinean Diaspora is deeply involved in both. The National Assembly elected in September 2013 has 114 deputies: 60 from the presidential majority, 49 from the seven opposition parties and five independents. The president has a relative majority, which means some work must be shared, particularly in the area of passing organic laws. The majority and the opposition must therefore share po-
Gary Goldberg, CEO of Newmoon, a mining company, with President Condé in Davos.
www.gouvernement.gov.gn
ALL THE REPUBLICAN INSTITUTIONS ARE IN PLACE
sitions of responsibility within the Assembly bureau and find common ground with an eye towards maintaining dialogue. The goal: strike the right balance to pass laws on issues vital for the nation.
SETTLING POINTS OF CONTENTION
To reach it, a national dialogue to safeguard the achievements of the July 2013 agreement is ongoing. One outcome was the international bid tender to have a new company revise the voter rolls. After the opposition rejected Waymark, in November 2014 a contract was signed with Gemalto-France. It replaces the South African company, which updated the voter rolls for the 28 September 2013 legislative election. Now the challenge is to settle all the points of contention involving the electoral process, such as the timetable. At first, the dates were set for October 2015 for the presidential election and March 2016 for the municipal ballot. All the 2015 candidates will be approved, with the likely exception of Captain Moussa Dadis Camara, the former head of the military junta who took power in 2008 after the death of General Lansana Conté. His indictment on 8 July for allegedly playing a role in the 2009 massacre of opponents at the Stade du 28 septembre may jeopardise his return to politics. For the election, Guinea’s civil society recalls that, in the words of the country’s constitution, “all political parties or formations are equal in rights and responsibilities”. One of those responsibilities is to “participate in the leadership of political life”. More plainly put, civil society hopes to see organisations that help to raise the people’s political awareness, in addition to Guinea’s parties, compete with each other.
The High Communication Authority, called for by articles 125 and 126, was installed on 19 February with the election of its president and the publication of decree 034 confirming its members’ appointment. The Mediator of the Republic, outlined in articles 127 to 131, was sworn in on 18 March before the president, as stipulated by organic law 2011 of the 004/CNT on 22 June 2011.
Gerardus Gielen (here with President Condé), the European Union’s ambassador in Conakry, follows the political dialogue.
The Constitutional Court, envisaged in articles 93 to 106 and set up by organic law 008 CNT of 30 March 2011, was installed on 3 April in compliance with the relevant clauses of both texts. The court will rule on the dispute over October 2015, which is why it was installed before the vote. The Economic and Social Council, provided for by articles 123 and 124, is being renewed; its makeup will be published sometime in the next few weeks. The Court of Accounts, High Court of Justice and High Council of Local Authorities will be installed soon. Mamadou Lamine Fofana, President Condé’s legal advisor, says all of them will be up and running by year’s end. ■
DIFCOM/FC - PHOTOS : DR
The president touring a building site in the country’s interior.
The full panoply of republican institutions has been put into place in time for the elections. For example, the National Independent Institution of Human Rights, provided for by articles 146 to 148 of the Constitution, which will send two of its members to the Constitutional Court, was officially installed on 16 February after the Supreme Court swore in its members and a decree confirmed the bureau members’ election.
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COUNTRY FOCUS Kenya
TON KOENE/ZUMA/REA
Tea and horticulture exports have suffered as European markets remain in the doldrums
Young and jobless While macroeconomic statistics show that the economy continues to grow at a rapid pace, it is not translating into masses of new jobs for Kenyans. The country’s middle class still only makes up a small percentage of the population, challenging investors’ optimism over the ‘Africa rising’ narrative By Parselelo Kantai in Nairobi
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O
ne weekend in early July, mobs descended on slums, rural townships and village centres in Nairobi and central Kenya to break into liquor shops and breweries legal and illegal. They proceeded to destroy the infrastructure of cheap alcohol that had, over two decades, eaten into a generation of young men. But what if Kenya does not need prohibition but jobs? What if Kenya needs shared growth rather than a new moral crusade? A decade after the end of the Bretton Woods institutions’
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SOUTH SUDAN
200 km
ETHIOPIA
SOMALIA
UGANDA
K E N YA Kisumu
Lake Victoria
NAIROBI
Mombasa
TANZANIA
Indian Ocean
imposed austerity regime, however, the dividing lines between those who were shut out of the new order and those who have thrived have never been sharper. On paper at least, the Kenyan economy is on the up. Last year, the government revised its economic statistics, unexpectedly catapulting the country to middle-income status. Its gross domestic product is now $61bn. The World Bank predicts 7% growth by 2017, one of the fastest rates in East Africa. INVESTOR OPTIMISM
KENYA IN NUMBERS
SOURCES: WORLD BANK 2013 & 20141, AFRICAN ECONOMIC OUTLOOK 20142, UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 2014 REPORT3
POPULATION
45.55 million1
URBAN POPULATION (% of total)
25%1
LIFE EXPECTANCY AT BIRTH
62.22
AID FLOWS
$3.2bn2
FDI, INFLOWS (current US$)
$514m3
GDP (current US$)
$60.94bn1
AGRICULTURE, VALUE ADDED (% of GDP) 30.3%1 INFLATION, CONSUMER PRICES (annual %) 6.91 REMITTANCES RECEIVED (estimate)
$1.5bn2
INTERNET USERS (per 100 people)
391
FIRST-QUARTER GDP GROWTH R ATES 7.6
7.3
6.0 4.7
4.9
2014
2015
4.7
2010
2011
2012
2013
SOURCE: KENYA NATIONAL BUREAU OF STATISTICS
CONTRIBUTION TO GDP BY ACTIVIT Y, 2013 Agriculture and forestry
manufacturing 9%
10%
25%
wholesale and retail, repairs transport and comms 9% financial 5% intermediation real estate 4% 7% 7%
11% other
11% taxes
public administration and defence education
2% health and social work
Transport and energy projects are being rolled out. Investment going into energy projects is set to halve the cost of electricity in the next few years (see page 54). New transport corridors will open up regional markets. East African trade is booming, too, and Kenyan manufacturers are the main beneficiaries of the emerging common tariff regimes in the East African Community Common Market and in the wider Common Market for Eastern and Southern Africa. Thanks to mobile-money platforms, more than 30 million people have entered the banking system over the past decade, initially just as consumers and now increasingly as savers. Safargerated. That study by South Africa’s icom and Equity Bank are among the Standard Bank suggested that there were no more than 400,000 households banks and phone companies seeing that could be defined as middle class their profits surge. – having annual consumption levels of A resource bonanza is looming too. between $7,500 and $37,000. Oil, mineral sands and rare earth minA more recent study to be published erals, when exploited, will open up a by the Institute of Economic Affairs new dimension of an economy longdependent on a stuttering agrarian sec(IEA), a Nairobi think tank, speaks of tor. And then there is the land itself: with far lower figures. Using a monthly exglobal food demand set to skyrocket by penditure of $500 as its base, the IEA 2050, East Africa’s rural areas should estimates that there are between 144,000 and 300,000 people who can be categorbecome a globally competitive asset. ised as middle class. This is hardly a “It would take a catastrophic political event to turn the tide,” says the head ‘middle class’. It is a tiny elite on whom the ‘Kenya rising’ narrative rests. These of a western financial advisory group. “Yes, I am aware that this is possible, [given] the postUpscale apartment blocks and election violence of a few snaking supermarket queues years ago. But there is real feed the idea of a take-off optimismaboutthiscountry and the region in general.” figures offer a glimpse into an economy The investor crowd feeds on the idea of Kenya’s economic take-off. The evidwhose fundamental structures of inence appears readily available: the upequity have remained unchanged since the colonial era. scale apartment blocks, the unending A growth rate averaging 5% over the traffic crisis in cities and the snaking queues in the supermarkets. past few years may be attractive to inFew in the investor class remarked, vestors fleeing the eurozone and elsehowever, on a study last year that sugwhere, but given demographic growth gested that all the talk of a burgeoning and historical lag, it is insufficient to lift the population out of poverty. And middle class had been grossly exagTHE AFRICA REPORT
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KENYA | COUNTRY FOCUS
Kenya’s tourism industry has been hard hit because of the Al-Shabaab terrorist insurgency
POMPE INGOLF/HEMIS.FR
now suffer as European markets remain in the doldrums. Hence the spectre of growth that creates few jobs, with its handmaidens – alcohol and Al-Shabaab. Is the growth, per se, in danger? External debt was not a problem during the austerity years, but domestic debt was. Today, the Jubilee Alliance government has renewed its appetite for debt, both foreign and domestic. Over the past two years, the government has accumulated debts worth 10% of gross domestic product. With President Uhuru Kenyatta determined to make the modernisation of the country’s infrastructure his enduring legacy, the hope of a pay-off from all the capital expenditure in the near future has dampened fears that Kenya could hit the rails.
because the accent of growth over the past decade has been consumer-driven rather than via export production, the economy has been unable to absorb the estimated one million people entering the job market annually. SECTOR WEAKNESSES
To some extent this is offset by Kenya’s traditional strength in agriculture and tourism, both strong employers. But tourism, once the leading hard-currency earner, has been hard hit thanks to the Al-Shabaab Islamist insurgency in Somalia that has precipitated a raft of travel advice from governments in Kenya’s main tourist markets. The Nairobi government’s response has been to increase spending on the security sector, which has done little to improve confidence. A recent economic survey indicates that tourist numbers have been falling for the past three years. This, however, is only a dim indication of the pains the sector is experiencing: scores of hotels have closed, tourism resorts on the coast have turned into ghost towns and at least 30,000 employees have beenrenderedjobless.“Evenifsomekind of attempt was made to rescue the sector now, we wouldn’t likely see a recovery until 2017. As it stands now, there are THE AFRICA REPORT
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GROWING DEFICIT
Evenso,thegovernment’sspendingspree remains a source of worry. Recurrent expenditure, mostly on salaries, has significantly expanded the national budget, now at more than $20bn. But revenue many hotels along this coast that have collection targets are rarely ever met closed and will probably never reopen,” even as the deficit grows ever wider. In observes a hotel owner. this year’s budget, treasury secretary Henry Rotich announced that the $5.8bn And as official priorities turned away deficit would be met by a combination from agriculture, the rural economy has fallen into a dangerous state of neglect. of donors, domestic banks and internaKwame Owino, executive director of tional bond flotations. Thefirstsignofinflationarypressurehas the IEA, explains: “In terms of strucbeenthefalloftheshilling–down10%and tural change, agriculture still dominated the economy in terms continuingtofallduringthe past two months. The govof jobs and dependence. ernmenthasattributedthis We haven’t yet diversified to capital expenditures,but the economy sufficiently, it is notable that attempts but the returns on investby the central bank to inment in agriculture are tervene in the markets to falling. Farmers are getOf the 2.3 million stabilise the shilling have ting poorer. Growth may people with Personal had little effect. have happened, but most Identification Numbers A weakening shilling farmers will tell you they at Kenya’s Revenue may be a boon for excan’t see it.” The governAuthority, less ports – except that proment’s bailouts this year than 300,000 qualify duction levels of some of for leading sugar millers as middle class the country’s traditional in western Kenya attest to SOURCE: INSTITUTE OF ECONOMIC AFFAIRS the problems in the sector. export commodities are low.Twobrightspotscould Coffee production is a help balance things out: oil and gas prothird of what it was three decades ago, duction in a few years’ time will add a even as producer prices hit unprecedennew revenue stream to the economy ted highs. Kenya’s coffee export earnings dippedbyalmost3%in2013/2014,having and Kenya’s new infrastructure hub at already collapsed 13% in 2012/2013. Tea Lamu could help to capitalise on rising Asian wages to capture a new slice of the and horticulture exports, which enjoyed global manufacturing market. ● more than a decade of favourable prices,
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PEOPLE TO WATCH
Rebels, oppositionists and money-makers In Kenya’s fractious politics, leaders across the spectrum are having difficulty keeping all of their allies in line
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BILLY K. MUTAI/NATION MEDIA GROUP
2
SALATON NJAU/NATION MEDIA GROUP
T
woyearsaheadofthe2017general elections,Kenyaisalreadyincampaign mode. The opposition, led by perennial presidential candidate Raila Odinga, is taking on President Uhuru Kenyatta and his deputy William Ruto on a wide range of issues, from corruption to rising insecurity to poverty and the economy. Odinga’s party had been weakened by previous troubled primaries, and his Orange Democratic Movement planned to organise a first round of internal elections in late July ahead of the 2017 vote. The party has focused its attention on the Okoa Kenya initiative, an attempt to hold a referendum and force the government to implement changes to the constitution on issues such as the funding of county governments, judicial appointments and the management of the electoral commission. Managing parliament has not been an easy ride for President Kenyatta. He has regularly lost key motions and seen the government agenda derailed in a body where his Jubilee Alliance commands a comfortable majority. This has left majority leader Aden Duale (1) on the spot over a growing list of instances where the ruling alliance has failed to raise the required numbers to back the government. Until 2013, Duale had been a member of the opposition. He made a name for himself in 2014 by criticising the government’s heavy-handed prosecuting of the ‘war on terror’, calling it counterproductive. The most embarrassing vote of late was in June when Jubilee members of parliament (MPs) voted with their opposition colleagues to reject the nomination of diplomat Monica Juma as Kenyatta’s secretary to the cabinet – the most influential position in the government bureaucracy (see TAR 71). MPs apparently rejected her over a letter she wrote to clerks of the national assembly and senate asking them to bar MPs from going to her interior ministry’s office – where she is the principal secretary – to ask for ‘favours’.
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SULEIMAN MBATIAH/NATION MEDIA GROUP
50
It’s not just parliament that is buzzing. Several presidential decisions and key development projects are ending up in court. The country is watching keenly how the succession battle will play out in the judiciary, with the term of the chief justice Willy Mutunga coming to an end in June 2017, just weeks before the general election. The Mutunga-led judiciary has recently faced growing criticism over the manner and pace with which it is handling cases. WEAKENING CURRENCY
As the economy faces fresh headwinds, new Central Bank of Kenya (CBK) governor Patrick Njoroge (2) is in the spotlight. The austere Njoroge, a member of the Catholic sect Opus Dei, lives a life of monastic simplicity unmatched by his colleagues in government. That has not helped Kenya’s currency, however. In mid-July, the shilling weakened to KSh102 to the United States dollar, the lowest in nearly four years, even as the CBK tightened its monetary stance. It had raised the benchmark rate by 3% in two months. Commercial banks started increasing their lending rates to factor in these adjustments, making credit more expensive, which is likely to slow growth in East Africa’s largest economy. In public, business executives are optimistic that the economy will bounce back from the current shocks arising from the weakening currency and made worse by political noise. But in private, they share their worries about how the current environment might hurt profitability. Analysts and investors are watching closely to see how big companies like Safaricom, the Vodafone-owned telephone network operator, will perform this year. Safaricom posted a historic $315m net profit in the financial year ending March 2015. The firm’s CEO Bob Collymore had his contract extended by another two years after posting the record numbers, even though rumours swirled that he was leaving. Meanwhile Football Kenya Federation chairman Sam Nyamweya (3) is facing pressure to resign over alleged mismanagement and of his support of scandal-hit Fifa head Sepp Blatter. ●
THE AFRICA REPORT
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COUNTRY FOCUS | KENYA
There is significant potential for targeting lower-income shoppers, a trend among global retailers
SIMON MAINA/AFP
52
RETAIL
Foreign and local chains grab a piece of the Kenyan market
launch a new drive to increase their domestic market share. Many of the Kenyan firms are family-run companies, with some of the smaller ones facing management problems and takeover bids. This comes at a time when international retailing brands are showing a great deal of interest in the opportunities that the growing middle classes can bring. Family-owned Nakumatt, which is the Kenyan market’s largest supermarket in terms of sales and network size, opened its 53rd shop in East Africa with a $2m outlet in Nairobi’s Garden City Mall in May. Tuskys and Naivas, which are grappling with family feuds, are also seeking to expand further. Tuskys is bidding to take over some of the stores of Ukwala, one of its rivals. AUDITING THE BOOKS
On the other hand, Uchumi, Kenya’s third-largest supermarket chain, is in big trouble. It has gone from crisis to Local firms are innovating and offering new products, crisis, and the company board sacked but they are not all prepared for the competition from chief executive Jonathan Ciano in June. Auditors are now examining the books large retailers from the continent and beyond for improprieties, and officials say that odern shopping has become This is a new revenue stream for most the company will have to sell off its asthe norm for middle- and sets and pull back from expansion plans of Kenya’s supermarkets, which have in East Africa. The supermarket chain upper-class consumers in cities now expanded their product line beyreported a loss of KSh336m ($3.3m) for like Nairobi and Mombasa, with most big ond traditional items, and is the next the year ending 30 June 2014. local retailers having extensive store footfrontier for growth among the chains, prints across the country. For the dozen Informal markets still dominate the with Tuskys, Naivas and Uchumi the consumer retail spend since a large segemployees of One Stop Barbers located main players in this segment. ment of the Kenyan popon the mezzanine floor of Gilfilian House Analysts expect more along Nairobi’s busy Kenyatta Avenue, ulation is to be found in change and innovation as the lower income bracket. lunchtime is no longer the dreaded hour the competition between With continued economic it was a year ago. For them, the fact that firms increases. “To facilitgrowth, there is significthey work at one of the busiest executive ate consumers with erratic ant potential for retailers to barber shops in Nairobi has meant that working hours, all superserve lower-income shopgetting time to go out and eat is almost markets have had to repers, a trend that is also impossible given that most of their clients think their options, most use the same break to get a quick haircut, of them operating 24-hour attracting global players. a manicure or a pedicure. stores, which has been very In June, South Africa’s Almost half Massmart launched its first successful,” explains David Until last year, the barbershop emof Kenyan shoppers Game branded shop in the Gitau, an investment anaployees brought food from home beuse formal $250m Garden City Mall. lyst based in Nairobi. “Recause the business is located in one retailers tailers who will win this During the same month, of Nairobi’s most expensive neighSOURCE: NIELSON battle for customers in the Botswana supermarket bourhoods as far as eateries are concerned. Since then, Tuskys Supermarket next decade will have to be accessible Choppies announced it had signed a – Kenya’s second largest by volume and throughout, with easy payment options deal to buy 10 outlets from Kenya’s Ukbranch network – introduced readybeyond cash and cards, and offer a onewala Supermarkets for $10m. France’s made food. For $1.50, workers can purstop shop for an affordable variety of Carrefour also has plans to launch its chase a takeaway meal at the retail chain goods and services.” inaugural supermarket in Kenya when located next door to Gilfilian House. Local players dominate Kenya’s rea new mall at Nairobi’s Two Rivers de“There is variety and the meals are tail market and are expanding into velopment is completed in 2016. ● Gilbert Nganga in Nairobi East Africa as large supermarket chains served hot,” says one of the barbers.
M
40%
THE AFRICA REPORT
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COUNTRY FOCUS | KENYA
POWER
Energy for all in 2020 The government will have to act quickly and mobilise funds to connect all of the country’s population centres to the national grid in the next five years
W
ith inadequate electricity These two phases should connect an supplies sapping the counestimated 2.5 million people in total. try’s economic growth, the The government’s ambitious engovernment has launched several large ergy goal is universal access by 2020, projects to increase generation capacity but planning and finance remain the and connect more customers to the nalargest stumbling blocks. Data from tional grid. The limitations of Kenya’s the World Bank show that in the East current energy infrastrucAfrican region, Kenya has ture are stark. Amos Njau, the second-highest numwho runs a printing plant ber of households without electricity at 6.2m after in downtown Nairobi, explains: “As a big consumer Tanzania’s 7.2m. of energy, I face two probThere are plenty of oplems: the relatively high portunities to boost procost of electricity and [its] duction. Electricity proCoal is expected reliability. You can never ducer KenGen says it has to add some be sure when there will discovered more steam wells that can generate up be power, and this hurts of electricity to the to 375MW at its Olkaria the business, especially national grid fields towards the west of so because we have very by 2030 Nairobi. The additional tight production schedSOURCE: THE MINISTRY OF ENERGY power capacity is expecules.” Njau, who does the ted to boost the plan to hook more wholesale printing of magazines, brohouseholds into the national grid, with chures and marketing merchandise, the government planning to add at least adds: “Electricity costs take up to 40% 5,000MW by 2017. of my overall expenses. Any efforts to One of the projects expected to begin stabilise supply and cut energy costs production by 2017 is the ambitious are welcome. I have had to install a Lake Turkana wind farm, which just generator.” Each month, he suffers at least three major outages that last for about a total of five hours. If the government’s plans work out, it will connect 70% of the population to the electricity network by 2018, the same year that it expects commercial oil and gas production to start. President Uhuru Kenyatta’s government now estimates that only about 40% of Kenyans have access to electricity.
2,400MW
began construction in early July and will have the capacity to produce up to 310MW. In the next few months, companies are also expected to step up their exploration programmes at coal deposits in three counties— Taita Taveta, Kwale and Kilifi. The energy ministry estimates that coal alone will add at least 2,400MW of electricity to the national grid by 2030. A group of companies, which include Centum Investment and Gulf Energy, won a government contract to build a 1,000MW coal-fired plant at Lamu in September 2014. In the longer term, Kenya’s nascent oil and gas sector could help to meet the country’s growing energy needs. While the government expects first production in three years’ time, the recent downturn in oil prices is dampening appetites for Kenyan exploration projects. In April, Australia’s Pan-continental Oil and Gas gave up its 25% stake in a block in the Lamu Basin. Nonetheless Tullow and Africa Oil have made estimated oil discoveries of more than 600m barrels in northern Kenya and are expected to submit their development plans to the government in the next five months. If neighbouring countries like Uganda offer a guide to how negotiations between the companies and government could go, Kenyan residents will be waiting a long time for oil and gas to contribute to national-scale projects like energy production. ● Gilbert Nganga in Nairobi
LAST-MILE CONNECTIVITY
To increase that percentage, Kenya will roll out the last-mile connectivity project, a three-phased government- and donor-funded programme, in September. The first phase aims to provide access for at least 1.5 million Kenyans living within a 600-metre radius of existing transformers, at a cost of $142.2m. The second and third phases, which will cost more than $250m, will see the installation of new transformers and the extension of the low-voltage network.
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THOMAS MUKOYA/REUTERS
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Lang’ata children learnt a lesson the hard way when they were tear-gassed for protesting
GOVERNANCE
The anti-corruption car crash President Kenyatta’s outing of a confidential list of public officials being probed for corruption has prompted the investigating body itself to crumble into chaos
D
espite the headlines about high-profile probes and charges for political and business corruptions, impunity is flourishing in Kenya. Indeed, some claim the anti-corruption effort is being sabotaged by government insiders. Politicians on all sides agree that corruption has risen to unprecedented levels since President Uhuru Kenyatta’s Jubilee Alliance government took over two years ago. President Kenyatta is visibly angered by the stream of reports of fraud, bribery and theft of state funds. In his annual State of the Nation address in March – when he painted a rosy picture of the country’s economy and security position – he conceded that the failures on corruption were the biggest blot on the government’s record. Kenyatta lamented that the rot goes right into his office and swears to fight it. He gave parliament a previously confidential list of 175 top public officials under investigation for corruption by the Ethics and Anti-Corruption Commission (EACC), among them five cabinet ministers and 12 county governors. After launching his critique of officials and the organisations that are meant to stop corruption, Kenyatta won a standing ovation from government and opposi-
tion benches. That was a first for him in Nairobi’slegendarilypartisanparliament. However, a great muddying of the corruption fight started soon after Kenyatta’s swashbuckling moves. A huge blow to accountability came with the disbanding of parliament’s public accounts committee (PAC) in April.
up investigations and commence the process of charging the culprits in court. So far, so bad – at least for the officials charged with conducting the investigations. A month after Kenyatta attacked the corruption scourge, the EACC fell into chaos. Parliament and its justice and legal affairs committee, in which the ruling Jubilee Alliance has a clear EMBEZZLEMENT majority, recommended that Kenyatta Again, there is a political trail in this purge the EACC in April. Accordingly, crisis. The PAC’s woes began just as it chairman Mumo Matemu and deputy chairwomanIreneKeinoweresuspended was about to table a report into the embezzlement of KSh2.9bn ($320m) in the andthenresigned.Kenyattathenappoinoffice of the president just before the 2013 ted a special tribunal of four people, led elections. The committee’s by retired judge Jonathan reportnamedMuteaIringo, Havelock, to probe the two former permanent secretfor “unethical conduct and ary for security, along with gross violation of the law”. other senior figures. Few A third commissioner, expect the new committee Jane Onsongo, quit office to pursue those claims with in late March. She cited much vigour. threats from unnamed ofIn March, Kenyatta had ficials in the office of the asked the 175 named ofpresident. This effectively ficials to step aside until leaves the EACC without investigations are comany commissioners. They Kenya was ranked pleted. The governors deits policy-making arm are 145th out of 175 clined, pleading constituand the only officials auin Transparency tional protection; the rest thorised by law to forward International’s 2014 cases to the director of pubcomplied. Kenyatta gave Corruption lic prosecutions. In ● ● ● the EACC 60 days to wind Perceptions Index.
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After being charged by the ICC, William Ruto (left) chartered a private jet to drum up support from African leaders
SAYYID AZIM/AP/SIPA
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Who is stealing what? ACTIVISTS HAVE IDENTIFIED 37 MAJOR CORRUPTION SCANDALS since President Uhuru Kenyatta took power in April 2013. They include a KSh26bn ($280m) school laptop provision scheme that implicated an Indian computer company; the $4bn standard-gauge railway project, which is riddled with claims of dubious tendering; a bribery scheme implicating the top officials of the Independent Election and Boundaries Commission that featured British printing firm Smith & Ouzman, whose directors were convicted on the same charges in a London court in December 2014; the KSh100m ‘hustler’s jet’ scandal linked to deputy president William Ruto’s mid-2013 African shuttle diplomacy to drum up support against the International Criminal Court; procurement scams at both the national and county levels; and a long list of land-grabbing deals featuring senior politicians and government officials – including the seizure of a school playground in Nairobi’s Lang’ata neighbourhood by politically connected property developers. When protesters, including many schoolchildren, demonstrated against the loss of the playground in January 2015, they were tear-gassed by police. Anti-corruption activists argue that few of the grand investigations announced by President Kenyatta in his State of the Union address in March are likely to tackle these scandals. They say the dossier was hastily compiled and many names were included for political effect. Most of the charges look unlikely to stick, mainly because they were drawn up under pressure rather than as the outcome of systematic investigations. ● H.B.
● ● ● late June, legislators were also debating new reforms to strip EACC commissioners of much of their power and to strengthen the body’s secretariat instead. The anti-corruption drive has hit a road block, and the EACC missed the 60-day deadline. EACC chief executive Halakhe Waqo has assured Kenyans that investigations and charges will continue regardless. But legal experts say the charges are likely to be dismissed in court on the technicality of absent commissioners. Opposition politicians and activists claim this is all a deliberate plot. The 175 cases were at an early stage of investigation when the list was tabled in
parliament. Kenyatta’s personal assistant, alter ego and nephew, Jomo Gecaga, had asked EACC chief executive Waqo for “a brief on the status of investigation on corruption cases” in mid-March. As Waqo told a Senate hearing: “The report was confidential and only intended for the President’s consumption. I did not foresee it being made public.” But, after meeting with deputy president William Ruto for five hours, Kenyatta decided to make the report public without notifying his closest colleagues, some of whom were mentioned in it. The dismissed EACC commissioners were at war with each other long before
theyweresenthome.KeinoandOnsongo signed a petition for the dismissal of Matemu last September, accusing him of being keen to enrich himself through his position. In January, however, Keino recanted and made peace with Matemu. Soon after, Matemu dismissed Waqo’s deputy in charge of investigations, Michael Mubea, for poor performance. Waqo immediately reversed that decision. Regardless, the commissioners suspended Mubea in late April, saying Mubea concealed details about the sale of the EACC headquarters, a controversial building once owned by Nicholas Biwott, ex-President Daniel arap Moi’s right-handman.Allthishasconfusedand demoralised the 264 officialsattheEACC. POLICE MISDEEDS
The situation is worse still with the Kenyan police. Following the Al-Shabaab massacre of 147 students at Garissa University College on 2 April, local journalists reported collusion between local police and Al-Shabaab agents. Residents of Turi – about 190km west of Nairobi – complained in late April that policemen sent to guard an international school against terrorists were mostly interested in extorting bribes from passing motorists. Questions also remain about the independence of Kenya’s courts despite the establishment of a special tribunal to vet judges. In April 2010, the chief justice of Jersey, a British dependency and tax haven,issuedawarrantfortheextradition of former finance minister Chrysanthus Okemo and former Kenya Power managing director James Gichuru to face 51 charges of fraud, money laundering and accepting bribes from multinationals. Okemo and Gichuru fought the extraditioninKenyancourts,insistingtheycould not get justice in Jersey. After a ruling in favour of extradition by a Kenyan judge in 2013, the defendants appealed and the case has been pending in the Court of Appeal for the past two years. Meanwhile Felix Koskei, the cabinet secretary for agriculture, nominated Okemo to the board of the Kenya Seed Company last March. That prompted more accusations of official impunity. Koskei is also on Kenyatta’s list of 175 top officials facing investigation. Other institutions are also flailing. The government has sharply cut the budget for the auditor general’s office and undermined the powers of the ombudsman’s department to enforce its recommendations. ●
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BUSINESS
INDUSTRY
The third
revolution Solar power is lighting up more off-grid villages as the price of a solar watt continues its plunge
COMPANIES & MARKETS
Renewable energy, the sharing economy and transportation innovation are reshaping economies across the world. Will Africa be able to leapfrog in its development to build revolutionary electricity, manufacturing and transportation networks? By Nicholas Norbrook
MIKKEL OSTERGAARD/PANOS-REA
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n July 1909, Louis Blériot flew the first flight in a petrol-powered aircraft from France to England. Over a century later, those who benefitted from his daring are attempting to fly around the world, this time using thepowerofthesun.TheSolarImpulse plane this year managed to fly 7,200km in 118 hours powered solely by solar panels. Just like its predecessor, it is an ungainly, spindly beast. But does it, just like its predecessor, foreshadow a new industrial age? Economist and writer Jeremy Rifkin saysyes.Theauthorof TheThirdIndustrial Revolution and The Zero Marginal Cost Society has been campaigning for decades for economic growth that does not deplete the world’s natural resources. Though China may still be ploughing its way through copper and oil, President Xi Jinping has ordered underlings to read Rifkin's books. But as the arguments rage ahead of December’s talks in Paris over climate-change deals, should African leaders be thinking renewable energy or a quick build-out of coal-fired plants? Certainly, electrical power remains a major obstacle to Africa’s industrial development. The Africa Progress Panel, headed by former United Nations secretary general Kofi Annan, argues that “on current trends, it will take until 2080 for every African to have access to electricity.” In a few places, both the huge demand for power and the push for green energy are being met. The new urban rail system that cuts through the heart of Addis Ababa may have its downsides, but you would be hard pressed to find an inhabitant of the Ethiopian capital who was not at least a little proud of the new green and white trams zipping above Meskel Square. Without the country's massive investment in electricity generation over the past decade, the electric rail line
would have been unthinkable. The Gilgel Gibe III Dam was completed in June, adding 1,870MW to the grid. Cheap and clean public transport can now drive urbanisation in Addis. But while Ethiopia remains the exception rather than the rule, Rifkin argues that Africa has the opportunity, as with mobile telephones, to leapfrog legacy infrastructure in the power sector. In addition to big power plants like theforthcoming6GWGrandEthiopian Renaissance Dam, Rifkin sees a decentralised network of small-scale renewable energy generation. GOING OFF THE GRID
Expanded access to electricity will largely not come from the national grid but a kaleidoscope of off-grid solutions reaching far out into the countryside, enabled by the everplunging price of solar power. “A solar watt, one little watt of electricity, cost $76 to create in 1976. It costs $0.36 today,” says Rifkin. He points to work in India where social entrepreneurs are hooking up villages to the power of the sun’s rays. “You know how much this is costing them to connect up a village of 200 huts? $2,000. They lease them solar panels and a smartphone, and it pays them back within a year or two, cheaper than the cost of the kerosene they were using.” However, the Third Industrial Revolution — a broadly-conceived confluence of activity in the renewable energy, communications and logistics sectors — is not just about hooking up rural villages. Germany today produces 28% of its power from renewable sources. This is shaking up industries, with the big four German power companies — EnBW, RWE, E.ON and Vattenfall — producing just 7% of that green energy. Adviser to green-energy pace-setters like Germany and China, Rifkin ● ● ●
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Three industrial revolutions
First Industrial Revolution 19th Century Author Jeremy Rifkin divides up global economic history according to turning points in three sectors: communications, energy and logistics. The British economy propagated the use of steam power in printing and laid telegraph lines across the world. It also used cheap coal to power locomotives.
Second Industrial Revolution 20th Century
JOHN MOORE/AP/SIPA
Led by the United States, countries expanded the use of telephones, radio and television in tandem with centralised electricity systems. Cheap Texas crude powered internal combustion engines, and mass production methods helped car ownership to grow exponentially.
AFRICA’S GREEN DAWN
PEDRO GERARDO/GETTY
Third Industrial Revolution 21st Century The coming together of the internet with renewable energy, electricity storage technology, threedimensional printing and driverless cars creates new possibilities that drastically reduce marginal costs for business. It could lead to a new sharing economy that helps reduce humanity’s carbon footprint.
● ● ● points to a similar disruption in the music and publishing industry caused by online newspapers and peer-to-peer music sharing. “Millions of small players [in Germany] have come together in electricity cooperatives: consumers, farmers, small companies, neighbourhoods,” he explains. And energy dinosaur E.ON is joining the party too. “They sold off all their nuclear and fossil fuel, and they are heading towards this new business model,” says Rifkin. He suggests that to survive the advent of cheap and shareable renewable energy, these big companies will need to learn to become aggregators and managers of power rather thansimplygeneratorsanddistributors, creating partnerships with a small cluster of houses draped with solar panels right up to the biggest corporations. “They will manage the big data and create analytics with you so that each enterprise can dramatically increase their aggregate efficiencies and reduce their marginal costs to stay competitive,” he adds. There are some signs that African power companies are putting the first foot on this ladder. In November2014,KenyaPower,East Africa’s largest power distributor, announced that it awarded a contract to technology firm IBM to provide real-time analytics across its systems.
Because mobile phones and social networks are also deeply embedded in Africa, the continent should see growing consumer pressure on utilities, says IBM energy specialist Naji Najjar in a nod to Norwegian power companies that create smartphone apps with real-time billing info and the ability to control heating at a distance. “We are not there in Africa yet. But the technologies are, and African utilities will [eventually] have to integrate them,” says Najjar. Of course, Africa’s new green dawn is not for tomorrow morning. “Let’s not get carried away,” warns Morocco’s trade minister Moulay Hafid Elalamy. He points to the upfront costs of renewable energy, which make ● ● ●
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● ● ● it unfeasible to roll it out across the continent today. Bruno Koné, Côte d’Ivoire’s telecoms minister, agrees. Given the population's very basic needs, the government “cannot connect one village when it could be connecting five,” he says. According to Robert Yildirim of Turkish conglomerate Yildirim, which is active in Gabon: “Africa needs industrial investment, and renewable energy cannot be the base load.” Rifkin disagrees, citing steel plants in the United States that are upgrading their technology to use renewables. In Cullman for example, Alabama's Apel Steel Corporation installed a 340kW solar panel system in 2014 to generate up to 98% of its electricity. Apel plans to save $3m on power bills over the 30-year life of the installation. To the convergence of the energy and communication networks comes upheaval in the logistics and transport sector to fully ignite Rifkin’s Third Industrial Revolution. Advanced solar-powered drones and driverless cars are the technologies of today, and their costs are dropping fast. Technology company Google has been testing self-driving cars for the past six years, clocking 1.8m hours of mixed autonomous and driver-led mileage, with just 12 accidents. “Not once was the self-driving car the cause of the accident,” says the company.
over the past five years, allowing nearly anyone with a smartphone and a car to become a taxi driver. In South Africa, Uber has hired security to protect its contractors from taxi drivers angry at the competition, which similarly ruffled feathers in France and Germany. “For every vehicle shared, 15 are eliminated from production, which is going to disrupt the auto industry in the long run,” says Rifkin. He points to a study by Larry Burns, a former General Motors vice-president, which found that 80% of vehicles in a mid-sized United States city could be removed with the incipient internet-of-things logistics platform – whereby sensors implanted in everyday objects send a constant stream of data that can be analysed to run, for example, traffic networks. When you add other breakthroughs – such as the world’s first three-dimensional printed car, Local Motors’ Strati, which premiered at the Detroit Auto Show in January 2015 – the automobile sector, that centrepiece of the second industrial revolution (see box), is facing serious disruption. Morocco's Elalamy hopes this willnotbehappeningtoosoon.His concern is not with the high-tech
remodellingof economiesbutcapturing basic manufacturing jobs. His government successfully attracted French auto manufacturer Renault to set up shop in 2007, and Peugeot is now planning to invest $620m in a new 90,000-unit-peryear factory in Kenitra. Pointing to China’s decision to move to a more consumption-driveneconomy,withaverage minimumsalariesrisingfrom$140 five years ago to $500 per month today as a result, Elalamy sees this as a chance to get Africa onto the manufacturing ladder. “With African salaries of $200 a month we are becoming competitive, so its important that Africa doesn’t miss this opportunity,” he says.
2m
More than 2m journeys were taken with taxi firm Uber in South Africa in the first half of 2015, up from 1m thoughout 2014
SHARING ECONOMY
SOURCE: UBER
Economist Jeremy Rifkin says companies need to be managers of shared power and transport networks
FUTURE OF LOGISTICS
These innovations are not foreign to Africa either. The Swiss National Centre of Competence in Research is supporting the Flying Donkey Challenge to create robust cargo drones that can carry 60kg because African economies are expanding faster than governments can build roads. The September 2013 Westgate Mall massacre in Nairobi put the prize on hold due to new security restrictions on airborne traffic, but Chinese online retailer Alibaba has begun drone delivery trials in its home market. More prosaic but no less radical are the car network services like Uber that have mushroomed
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Just as Germany energy providers start to change models, “Daimler, General Motors and Toyota know there are going to be fewer cars sold – not tomorrow morning but in the next 25 years,” argues Rifkin. “They are already asking: 'Should we become the aggregators of the transport and logistics internet?' They will own the cars, much fewer cars, and help manage that network for a service fee.” An explosion of renewable energy use, energy efficiency and the falling away of the internal combustion engine: all of these are imperatives as well as nice ideas given the urgent need to avoid further heating of the climate. For Rifkin, this is where the sharing economy – shorthand for companies privileging access over ownership – is so important. Companies like Lyft, Airbnb and a series of clothes, equipment and even toy-sharing websites have sprung up over the past few years. While most of those major companies are in the West, Rifkin cites a Nielsen global survey that found that countries in Asia and Africa are more open to involvementinthesharingeconomy.Côte d'Ivoire's minister Koné laughs at Rifkin's excitement: “The sharing economy, that is already us. We don’t use a dryer for our clothes, we have the sun! We even give a second life to old cars and white goods from Europe.” ●
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The world’s longest-established Conference dedicated to Africa’s Upstream industry
BUSINESS | COMPANIES & MARKETS
MINING
STAGE ONE: THE MINE There are thousands of artisanal gold mines across Africa, with several hundred in the DRC alone. Diggers’ equipment is rudimentary, and the work is usually difficult and dangerous. Alluvial gold can be captured in sieves, but gold-bearing rock must be crushed in order to yield its treasure.
A golden voyage The Africa Report traces the typical route that a gram of gold takes from an artisanal mine in eastern DRC, via refining in Dubai to a wedding ceremony in India
CENTRAL AFRICAN REPUBLIC SOUTH SUDAN
M
ore than 100tn of gold these imports, making it less imdug from the earth by portant to earn a margin on the Africa’s artisanal miners gold’s purchase too. flows to the United Arab EmirGold is usually smuggled across the DRC’s eastern land borders ates (UAE) for refining and to be and makes its way to regional turned into jewellery. Much of it gold-buying hubs, like Kampala, then travels to India. Production Bujumbura and Nairobi. When from an artisanal mining pit can be just a few grams per day, often traders in these hubs have accuin the form of tiny flecks, from mulated a few kilos of gold, by now refined to more than 90% purity, which the surrounding ore must they distribute it to carriers who be painstakingly removed using mercury. Diggers sell these small take the gold in their hand luggage volumes of gold to local traders, and fly to Dubai. though in some countries, like the There are many gold refineries Democratic Republic of Congo in Dubai, with a growing number popping up in the Sharjah Free (DRC) and Côte d’Ivoire, armed Zone. Most of the gold arriving groups and/or the state’s armed forces find multiple ways to take a into the UAE is refined by one cut before sales take place. of three big refineries: Kaloti, Al The traders then typically transEtihad and Emirates Gold. The port the metal to the nearest rest is refined by smaller operagold-trading hub. In eastern DRC, tions or makes its way to Dubai’s the main gold-trading towns are legendary gold souk. Tonnes of Kisangani, Aru, Butembo and Bukavu. There, the Indian households are small-scale traders sell estimated to be holding to larger traders, who in 20,000tn of gold many cases have prefinanced their purchases from diggers. In trade circuits, gold are traded in the souk every gold worth thousands of US dolday, typically with few questions lars can easily be concealed in a asked about its origins. The UAE officially exports more person’s pockets. Often, these traders buy the gold than 200tn of gold a year to India, at or near global market prices. worth around $9bn. The World Gold Council reckons that smugOne reason is that because the glers take an additional 200tn into gold is then smuggled, there is India each year to evade its hefty no need to earn a margin in orimport taxes. Much of this is said der to pay export taxes. Another to come from the UAE. In India, reason can be that the trader is most gold ends up as jewellery laundering money and is more and is a key component of many concerned about concealing its origins rather than making a profit. social occasions, particularly wedAnother common reason is that dings. Indian households are esthe trader’s main purpose in tradtimated to be holding 20,000tn of ing gold is to earn foreign currency gold between them, worth a stagand use this to buy goods, usually gering $814bn at 2014 prices. ● from China. In these cases, the Gregory Mthembu-Salter in Kisangani profit is usually made on selling
UGANDA DEMOCRATIC REPUBLIC OF CONGO
CONGO
RWANDA BURUNDI
TANZANIA ANGOLA ZAMBIA
STAGE FOUR: UNITED ARAB EMIRATES The UAE imports and re-exports more than 800tn of gold a year, making it one of the world’s main gold-trading centres. Dubai’s gold souk is home to myriad small and medium-sized gold traders and jewellers. It throngs with buyers from all over the world and especially India, Russia and China.
EMERIC THÉROND
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STAGE TWO: ILLEGAL TAXES State officials, who impose a bewildering array of often illegal taxes, typically prey on artisanal miners. Where gold mines are in rebel-held areas,they are a favourite target for militia to extract high rents.
STAGE FIVE: INDIA’S JEWELLERS India imports hundreds of tonnes of the yellow metal a year to feed its citizens’ appetite for jewellery. The imports are a major drain on the country’s balance of payments, so the Indian government imposes a 10% import tax on gold jewellery imports. The tax has dampened demand to a degree, but has also stimulated smuggling.
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STAGE THREE: AFRICAN TRADERS Gold is traded in ever-increasing volumes as it flows from hub to hub. Gold-smuggling across borders is rampant on the continent because export taxes are often high and state capacity to detect illegal trade is low. There are flights to Dubai from nearly every major African city, making it the ideal place to send gold for refining.
STAGE SIX: INDIAN WEDDING CEREMONY No Indian wedding is complete without gifts of gold jewellery, and it is also an essential part of any bride’s dowry. In Kerala State, the average is 400g of gold per wedding, which adds up to 80tn of gold per year or 10% of the country’s total consumption.
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BUSINESS | LEADERS
PROFILE
Moe Shaik
Group executive for international financing, Development Bank of Southern Africa
We need a more reality-based approach The spy chief turned bank chief is bullish about the development bank’s impact in the region, but says risk mitigation must inform large multi-country projects
M
oeShaikhasahistory of being difficult to pin down. Happier smoking cigars and his beloved tobacco pipe with his former African National Congress (ANC) comrades from the struggle days than talking to journalists, the ex-spy chief has been wary of the media, especially of questions pertaining to his family or President Jacob Zuma and his administration. His brother Schabir, who was seen as Zuma’s banker in the 1990s, was found guilty of corruption and fraud in 2005. His other brother, Chippy, was in charge of South Africa’s largest arms acquisition in 1996. Moe Shaik is a different man now. He certainly is all smiles when talking about infrastructure on the continent, how to tackle the electricity crisis and how his spy training is coming in handy in his new job as the group executive for international financing for the
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Development Bank of Southern Africa (DBSA). Since his appointment by then finance minister Pravin Gordhan in August 2012, Shaik has spearheaded investments worth millions of dollars for projects across the continent: from building roads in Zimbabwe and Zambia to raising a sovereign wealth fund in Angola and developing oil and gas projects in Mozambique and Ghana. OPPOSITION
Not everyone was happy with Shaik’s appointment. The opposition Democratic Alliance (DA) was quick to raise alarm bells. “South Africans need to be assured that appropriate processes have been followed and that Moe Shaik has not simply been deployed for political reasons,” said DA finance spokesman Tim Harris at the time. Some of the bank’s critics say the DBSA lacks critical skills and is unable to fulfil its development
SPY BOSS AND FINANCIER 1970s-1993 Underground operative for the ANC’s military wing, Umkhonto we Sizwe 1994 Member of the Transitional Executive Council 2009 Became head of South Africa’s secret service 2012 Appointed head of the DBSA’s international financing unit
mandate. While some point to the major restructuring the bank has gone through, cutting more than 50% of staffers, others suggest that Shaik does not have the skills set. “Look, Moe is a great guy. He is smart and intelligent, but he is not a banker,” a former DBSA consultant tells The Africa Report. Shaik’s boosters will point to the medical doctor currently running the World Bank, Jim Kim, or the agricultural expert, Akinwumi Adesina, recently elected to run the African Development Bank (AfDB). Shaik wants the DBSA to have real power to influence governments in the region, and argues the best way to do this is through investing in infrastructure. However, the DBSA’s critics say that South Africans, as the bank’s only shareholders, have too much influence. “There is certainly a need for a development bank for the region to counter the International Monetary Fund/World
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LEADERS | BUSINESS
RENEWABLE ENERGY
While Africa’s most advanced economy faces dire electricity shortages, the DBSA has taken a leading role in funding renewable energy projects. By 2012, it had provided close to R10bn for such plants. In 2014, it funded another R1.5bn rand project in the Northern Cape. “We have funded the renewable energy programme in South Africa and have been able to bring almost 4,000MW of energy onto the grid in a period of less than four years,” says Shaik. He now has his eye set on expanding the programme in Namibia, Angola and eventually the rest of the continent. The DBSA is also looking at gas projects in Southern Africa. “We have the Kudu gas in Namibia, the Pemba gas in Mozambique, and Southern Africa is poised to transit into a gas energy system,” Shaik says. However, not all energy projects are going ahead as planned. He is worried that the 40,000MW Inga Dam project in the Democratic Republic of Congo (DRC) has not taken off. He explains: “We need to look at more creative ways pertaining to the governance of Inga because Inga is just too important for it to be seen only through the eyes of the Congolese. It needs to be seen through the eyes of all Africans.” The DRC was supposed to develop a special agency to carry out the multibillion-dollar project, THE AFRICA REPORT
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but this is not yet off the ground. The World Bank and the AfDB increased their involvement in 2014, and it appears that some progress is being made. But the episode points to the difficulty in putting together large multi-country projects. “We have to move away from what I call aspirational projects. These are great projects to do, and they work on the basis that everything will go right. In Africa, they are too important to fail,” says Shaik. He calls for “a more reality-based approach”. He says that the bank should “look at all the things that could go wrong, have risk mitigation and do it in a way that allows the private sector to co-invest with us in infrastructure.” He is also clear on the need for Africa to build up the continentwide institutions to get these projects done. “I think we may even have the need for certain agencies like the New Partnership for Africa’s Development to be supranational,” he adds. Shaik’s interest in spy craft has not always served him well. In 2003, he brought sensational claims against the then director of public prosecutions, Bulelani Ngcuka, saying he was an apartheid-era spy listed on the database of such supposed in-
“Inga is too important [for all Africans] to be seen only through Congolese eyes” formers. In 2004, the Hefer Commission found there was no basis for such claims. But Shaik maintains his diplomatic and intelligence training are coming in very handy in his new role. “I’ve learned it’s about understanding politicians, especially in Africa, and how to speak to them. It’s a combination of understanding politics and understanding financial risk mitigation. And therefore I just think that the universe has brought me to this point. I’m trying to lose the arrogance and just simply trying to make a difference for the rest of my working years.” ● Crystal Orderson in Cape Town
AU G U S T- S E P T E M B E R 2 015
APPOINTMENTS
Frans Matlala Matlatla was appointed chief executive of South African public TV broadcaster SABC in July after months of vacancy. He will have to use his years of experience at Standard Bank, African Life, First National Bank and South African Breweries to turn the company’s struggling finances around.
Jane Karuku On 1 July, East Africa Breweries hired Karuku to head up its subsidiary in Kenya. The former MD of Cadbury’s East and Central Africa has had a long career in the fastmoving consumer goods market and was president of AGRA from 2012 to 2014.
Akin Dawodu Dawodu became the chief executive of Citibank Nigeria in late June. Tasked with growing the bank’s business on the African market, he is a long-time Citi executive and has also worked at telecom company MTN Nigeria.
ALL RIGHTS RESERVED
Bank doctrine. Some Southern African states are still wary of the role of the [DBSA],” a former staffer at the bank says. The DBSA has come a long way since its early days of being an apartheid mouthpiece. In 1983, it was created as an arm of the foreign service to assist friendly African countries like Malawi and the so-called Bantustans like Ciskei and Transkei in the Eastern Cape. In 1994, this all changed with Pretoria recasting the institution as a development bank for Southern Africa. The bank has since grown its disbursements from R3.7bn ($300m) in 2006 to around R8bn in 2011/2012.
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HANNIBAL FINANCE
Chinese have their favourites CRITICS HAVE LONG SAID that costs have been overinflated for Kenya’s Chinese-built $3.8bn modern railway. Eyebrows were raised last year by Beijing’s precondition that China Road and Bridge Corporation (CRBC) should be the contractor, despite the company being debarred by the World Bank for fraud. Now, Kenyan cement companies say they are being excluded from the deal. The contractor prefers Chinese building materials, presumably because they are cheaper or are a means to sweeten the deal. Kenyan customs officials say CRBC had already imported 7,000tn of cement for the project by July. Clearly, this is a win-win solution for one side of the partnership.
Taxi drivers throwing stones TAXI COMPANIES AROUND THE WORLD are prone to falling under the spell of criminal syndicates who appreciate the money-laundering potential of the car-ride trade, the logistical support it offers gangs and the street-level control mafia-run taxis can exert. South African taxi firms may be no different, but the government also wants a slice of the action. In Gauteng, the government gave the lucrative Mamelodi routes to a new state-owned company, Autopax. Taxi drivers threw stones at its vehicles on its first day of service in early July. Meanwhile, another bus was shot at.
Nigeria’s permanent problems IN HER BOOK Reforming the Unreformable, Nigeria’s former finance minister Ngozi Okonjo-Iweala explained that one of the major targets of her ire was the government’s permanent secretaries. Now new President Muhammadu Buhari has read the riot act to these top civil servants who run the ministries year after year while political appointees come and go. He has tasked finance ministry permanent secretary Ana DanielNwaobia with blocking up the holes through which Nigeria’s oil wealth leaks. In the northern state of Kaduna, reformist governor Nair El-Rufai also sacked 20 permanent secretaries to revitalise service delivery in mid-July.
Europe-Africa role play AS THE LAST WEAK FANFARE to celebrate the 40th anniversary of the Economic Community of West African States (ECOWAS) fades away, perhaps we should consider whether it still has a role to play. Though recent attempts have been made to harmonise tariffs on imports, ECOWAS is much less of an economic bloc than the Union Economique et Monétaire Ouest-Africaine (UEMOA), the zone comprised of eight West African countries that use a common currency, the CFA franc. As key UEMOA member state Côte d’Ivoire picks up its pace, integration prospects look much better than in the wider ECOWAS community. Perhaps Nigeria should join. Not so fast, whisper Hannibal’s Abuja-based friends. “Would you want to be linked to the euro right now?” they ask, referring to the CFA’s euro peg. “Who would play Germany in West Africa? And who would be Greece?” ●
Index impasse Nigeria could soon be kicked off of a key index, leading to huge outflows from nairadenominated bonds
U
S-based bank JPMorgan Chase has given Nigeria until the end of the year to help ease the flow of funds out of the country or be removed from its Government Bond IndexEmerging Markets (GBI-EM). The GBI-EM is a key investment barometer for fund managers, and newly admitted countries see a marked increase in investor appetite for bonds. This explains the $1.5bn in portfolio inflows into Nigeria since the country’s inclusion in the index three years ago, says Kayode Tinuoye, head of research at Lagos–based United Capital. “If Nigeria is removed from that index, all those funds will have to go out, which will cause a shock in the system,” says Tinuoye. “Interest rates will go up because of illiquidity; bond yields will go up and portfolio managers’ performance will be adversely affected.” Nigeria’s central bank is not overly worried. “We know that it is a good thing to have our place in that global index, but I don’t think thatisanoverridingconcern,” Ugochukwu Okoroafor, a special adviser to the central bank governor, tells The Africa Report. He insists that high import dependency not illiquidity is the real problem. In the 12 months to 30 June, Nigeria’sforeignreservesfellby22.7% to $29bn as oil prices plunged. To curb access to foreign exchange, thegovernmentdevaluedthenaira in November 2014 and closed the official foreign exchange window in February. Ratings agencies are calling for another devaluation, so the government is faced with stark choices to turn the economy around and attract finance. ●
THE AFRICA REPORT
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Ghana’s
fishing failure The government has been unable to stop foreign trawlers from pillaging or local fishermen from using unsustainable methods to increase their catch, despite EU pressure By Joan Nimarkoh in Accra and Billie Adwoa McTernan in Prampram
G
hana’s poor protection of its fishing resources is hurting small-scale fishermen and is causing disputes with the country’s major trade partners. While the government has stepped up its efforts since the European Union (EU) awarded a ‘yellow card’ warning for its failure to fight illegal fishing in 2013, it has not been able to stop practices that pollute the environment and decimate fish
populations. The problem is not limited to Ghana, and the Gulf of Guinea is renowned for widespread flouting of fishing laws. According to the Africa Progress Panel think tank, around $1.3bn is lost each year in West Africa to illegal fishing. Some 50km east of Accra is Prampram, a fishing community where most of the men have at some stage in their lives been engaged in fishing. Jacob Tetteh Ayin has been fishing for 22 years
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and has seen how the practice has changed: “Since 2000, the fishing business has been like anybody does what he or she wants to do.” Many small-scale fishermen have seen their trade devastated by the arrival of industrial vessels. Nii Kai Okaishie III has been Jamestown’s chief fisherman for two years. There are more than 600 fishermen in the community, which is one of the oldest areas of Accra. “These big, big trawlers are supposed to fish deep, but sometimes they come down and come and fish where these people [canoe fishermen] fish,” he tells The Africa Report.
Accra has been slow to devote the money and personnel needed to protect fish stocks
LUC GNAGO/REUTERS
LIVELIHOODS RUINED
When this happens, trawlers can destroy canoes and rip nets apart. The cost of canoes starts at 30,000 cedi ($9,100), with the net and motor costing another 10,000 cedi. When small-scale fishermen return to their boats after a trawler has passed, they can find their livelihoods ruined and are unable to trace the culprits. Competition is leading to a race to the bottom. Chief fisherman Okaishie says: “They [canoe fishermen] are trying to compete with the big trawlers. Take the cost of the premix fuel for example. You might buy 30 gallons, and one gallon is 7.10 cedi. Fishermen can be going to sea a week without a catch. Sometimes they borrow the money before buying the fuel.” Caughtundermountainsofdebt and needing to fish ever greater quantitiestokeepup,manyengage in illegal fishing. “They put a generator bulb into the sea from their small boat and lower it,” explains Okaishie. “When they spark the generator, all the fish around that area will come to where the light is. They leave one person to lift the light slowly and the fish follow.” James Agbla, who has been fishing for 32 years in Prampram, says: “With the lighting system, fish that would normally be in the sea for three months will be caught in two days.” Others use carbide or the pesticide DDT to daze the fish and make them easier to catch. Alberto Martin of the EnvironmentalJusticeFoundationexplains
DOSSIER | SUSTAINABLE DEVELOPMENT
Fishing in figures
13,000 small-scale fishermen in Ghana use canoes to bring in the catch
SOURCE: GHANA FISHING MINISTRY
33-50%
Share of illegal, unreported and unregulated fish catch in West Africa SOURCE: AFRICA PROGRESS PANEL
collaboration across the major security agencies was an important development.” People on the ground see things differently. In Prampram, fisherman Tetteh complains about the difficulty in dealing with fishermen who illegally use lights to attract fish.Hegotinvolvedinabrawlwith a group and took them to the police station, but the offenders were never charged. Instead, Tetteh and his crew were held. Agbla, a fellow fisherman, complains: “Law no dey [there is no law].” CORRUPTION ALLEGATIONS
n
thatthesepracticesunderminefish stocks by hitting juvenile populations. Targeting those young fish is creating a crisis. “In response, the government is developing a monitor, control and surveillance system to combat illegal fishing, but it is critical that this approach has an adequate investment of financial and human resources," Martin argues. The knock-on effects of unsustainable fishing practices are damaging livelihoods across Ghana. Hundreds of coastal communities depend on the fishing trade as their main source of income. Fish is a key contributor to food security, as two-thirds of Ghana’s consumers eat fish as the only source of animal protein. A continued decline in fish stocks and growing consumption mean that Ghana depends on imports to meet 40% of its national demand. A weak legal framework to enforce fisheries legislation and limited capacity to monitor and patrol have undermined Ghana’s fisheries sector. The combination of strong demand and a loose regulatory framework has attracted foreign industrial vessels that can make considerable profits from the fishing black market. Government efforts have centred on intelligence and surveillance of illegal activities. The government established the fisheries enforcement unit within the fisheries ministry in response to the 2013 EU warning. The unit’s
3t
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28,4 8
The 2013 production of Ghana's nascent fish-farming industry
SOURCE: GHANA FISHING MINISTRY-IMPACT
staff are drawn from the navy, marine police, the fisheries ministry and the Bureau of National Investigation. They total 55 people seconded from their respective institutions. Despite their limited number, the unit is supposed to patrol a coastline of more than 500km and cover a maritime area of 228,000km2. James Azamesu, a public relations officer at the fisheries ministry, argues that the government has made considerable progress since 2013: “I would say that we are over 80% there. A big step was the establishment of the fisheries enforcement unit, and ensuring
Battling the bottom feeders EUROPEAN, SOUTH KOREAN AND RUSSIAN fishing vessels have been pillaging West African fish stocks for decades. The waters off Senegal and Mauritania, once teeming with sea life, are pale images of what they used to be. Now, environmental campaign group Greenpeace sees a new threat. Falling domestic fish stocks are pushing Chinese fishing fleets to Africa: from 13 vessels in 1985 to 462 vessels in 2013. That is a fifth of China's total 'distant water' fishing fleet. Greenpeace also says that many of these companies, including the China National Fisheries Corporation, have a history of illegal fishing. “If China wants to be a genuine friend of Africa, it should follow the path of the European Union’s (EU) Common Fisheries Policy, which is slowly rectifying the EU’s own history of irresponsible fishing in the region,” said Ahmed Diamé, Greenpeace Africa’s oceans campaigner. From 2000 to 2006 and 2011 to 2013, there were over 180 documented illegal fishing cases in Gambia, Guinea, Guinea-Bissau, Mauritania, Senegal and Sierra Leone that involved vessels owned by Chinese companies or flying the Chinese flag. Many of these boats are destructive 'bottom trawlers' that scoop up all the life they can off the ocean floor. ● Nicholas Norbrook
Kyei Kwadwo Yamoah, a programme manager for the non-governmental organisation Friends of the Nation, points to corruption as a force that weakens regulations. “[There is] political interference with enforcement. Some politicians have vessels themselves. Some fishermen are funding political parties,” he adds. Yamoah reports that the number of small sardines, a local staple, are dropping. Fishing communities like Prampram report regular declines in their catch, and the government admits it does not have the capacity to produce thorough statistics on the legal and illegal fish trade. Local communities also complain that the government is biased against them and unwilling to hold the operators of foreign trawlers to account. A naval officer based in Takoradi, the capital of the Western Region, verified claims that foreign trawlers simply buy their way out of prosecution. The officer, who requested anonymity, says: “There is a lot of frustration after carrying out the hard work to bring foreign vessels to dock and arresting the crew, that the majority of these ships are back out to sea after paying undisclosed out-of-court settlements. The high fines are hardly ever ordered by the courts.” The fisheries ministry strongly denies the claims but acknowledges that the judiciary is a weak link. Without matching effective law enforcement with a stronger and better-funded regulator, Ghana risks killing the fish that lays the golden roe. ●
THE AFRICA REPORT
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DOSSIER | SUSTAINABLE DEVELOPMENT
The Aldeia Nova project helped 800 smallholders to grow their businesses
ALDEIA NOVA
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IMPACT INVESTING
Good things can start out small Despite strong growth in impact investment in Africa, funding for the SME sector has remained scarce. Now, new models are emerging to boost start-ups
W
hen the Aldeia Nova farmingproject,nestled amid the Cuanza Sul mountain range in Angola, sought capital in 2011 to fund an expansion project, it took its case to the market.Theinnovativeplan,which includes community agriculture and projects for civil war veterans, required a $10m funding injection. Enter Vital Capital, a Switzerland-based hybrid venture capital and private-equity impact investment fund founded in 2011 by Israeli businessman Eytan Stibbe. Its officials visited the site, evaluated the facility’s business model andagreedtoprovidethefinancing to enable the 800 smallholder families to realise their growth plans. Now, Aldeia Nova is thriving, and so too is Vital Capital, with its ethos of targeting projects that deliver a positive return to communities and a financial profit. Impact investing, the name for funding that seeks to generate a social or environmental benefit in addition to a financial one, is booming. Companies launched the first impact investing funds in the late 1990s, and the UN Devel-
opmentProgramme estimates that there was $8bn in funding from such investors in Africa in 2013. According to a 2015 report by the Global Impact Investing Network (GIIN) and JP Morgan, which surveyed 146 impact investment funds, the value of global deals is set to record an annual increase of 16% in 2015, bringing it up to $12.2bn. But the finance is not evenlyspreadthroughthebusiness growth cycle: only 9% is going to new start-ups and venture stage companies and almost two-thirds to well-established and mature companies, the report says. GREENFIELD PROJECTS
Many large funds seek successful brands with good cash flows and slick management teams. However, few sub-Saharan African companies’ accounts are up to the standardrequiredbylargeinternational investment houses, meaning opportunities are harder to come by. Dan Schönfeld, head of finance at Vital Capital, explains: “While most of the established deep-pocketed private-equity funds are chasing the same African
51
impact investment funds worth $6.4bn were launched between 1998 and 2010 SOURCE: GIIN
projects, we are looking out for the greenfield ones, the start-ups.” This strategy seems to be working. Vital raised $350m for a 2011 sub-Saharan Africa impact fund and is now launching a similar $500m fund with a focus on greenfield projects in Angola, Cameroon, Ethiopia, Ghana, Côte d’Ivoire, Mozambique, Rwanda, Tanzania and Uganda. Gabriella Mulligan, co-founder of Kenyan advisory group Disrupt Africa, agrees that the start-up sector is underfunded by impact funds. “There is a definite growth in investment from this sector, but it is still only small compared to that from non-impact investment groups. Impact investors favour start-ups in particular sectors, like alternative energies,” she explains. RISK REDUCTION
Meanwhile, a host of other investment tools are coming on stream to help small and medium-sized enterprises (SMEs), says GIIN research manager Abhilash Mudaliar. Catalytic credit enhancement mechanisms such as first-loss capital schemes, where a lead investor such as a government accepts to take a greater share of any company losses, are designed to allay concerns of risk-averse fund managers.Arangeofotherfundingprogrammes combine financial support with business skills training. The potential for growth in SMEs has not escaped the world’s investment giants such as Zurich, Axa, Bain Capital and BlackRock. They are also looking to ramp up their impact investment offerings and are increasingly trying to work around the lack of accounting data by forging partnerships with local fund managers. Despite the potential threat, Vital Capital’s Schönfeld is not worried. “Yes, the big funds are taking an increased interest here, but I don’t expect them to get involved in greenfield projects in the near future. It’s a different game. It’s not in their DNA.” ● Charlie Hamilton
THE AFRICA REPORT
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CLASSIFIED ADS
FROM: 07/07/2015 - TO: 27/08/2015 - CLIENT: ECOWAS COMMISSION TYPE: EXPRESSION OF INTEREST (EOI)
TITLE: RECRUITMENT OF A FIRM FOR CONSULTING SERVICES FOR THE UPDATE OF THE ECOWAS REGIONAL ENERGY POLICY DOCUMENT 1. The Economic Community of West African States (ECOWAS) is a regional grouping with 15 Member States in West Africa (three landlocked and one island) with a population of about 300million with an annual economic growth rate of around 6%. The ECOWAS Commission is one of the eight Regional Economic Communities supporting the African Union to coordinate the implementation of continental and regional integration and development programmes in the West Africa region. 2. In 2003, ECOWAS Heads of States and Governments signed the ECOWAS Energy Protocol which “establishes a legal framework to promote longterm cooperation in the energy field, based on complementarities and mutual benefits with a view to achieving increased investment in the energy sector, and increased energy trade in the West Africa region”. The aim of the Protocol is to: • guarantee and ensure free access to energy, equipment and energy products between Member States ; • define non-discriminatory rules for exchange and conflict resolution ; • attract and protect private investment; • ensure environmental protection and energy efficiency 3. Further, the Heads of State and Government adopted Decision A/DEC.24/01/06 in January 2006 relative to the joint ECOWAS-UEMOA Regional Policy for increasing access to energy services by rural and suburban populations. This Policy, which is centered around the Millennium Development Goals (MDGs), has as global objective to ensure access to modern energy services to at least half of the ECOWAS citizens living in rural and peri-urban areas by 2015. 4. The regional policy document sets out a number of objectives for the year 2015: • To ensure that 100% of the total populations have access to improved cooking fuels; • At least 60% of the rural population have access to motive power to boost productivity of economic activities and access to modern community services; and • 66% of the population have access to electricity supply. 5. These objectives and time frame need to be revisited in light of the new stakes and challenges that the Region has to address. Therefore a regional energy policy must be established in which the best energy mix will be determined and a strategy and action plan set for the implementation of the chosen energy policy. The revised Energy Policy will strengthen the synergy and coherence among the actions of partners and sub-regional organizations involved in the Energy Sector. 6. It is against this background that ECOWAS is launching this Consultancy service for the update of the ECOWAS Regional Energy Policy document. 7. The objectives of the study can be summarized as follows: • To take stock of the current situation of the sector at the regional and national levels, including energy endowments and utilization rates for different energy sources; • Evaluate the energy needs for the next 30 years based on analysis done in the context of the evolving global and regional economic factors; • To identify key indicators for the energy sector and develop the energy landscape for the region and its projections over a 30 year period at 5 year intervals; • To set out the options for energy in the region over a 30 year horizon; • Examine sector constraints that might make the different options more or less desirable or probable; (internal and external constraints) to determine the optimum energy mix for the region considering all sources of energy; taking into account the potential importance of energy economics and energy efficiency together with the new technics and energy technologies; • To prepare and validate an integrated Regional Energy Policy clearly stating the vision, basic principles that guide the energy policy, its priority and specific objectives; and • To prepare and validate a Strategy and Action Plan for implementation of the Regional Energy Policy and its incorporation into the legislation of Member States.
The consultant firm is expected to undergo the following: • Part 1: Sectoral Analysis - analysis of the current situation and prospects for the energy sector comprising the following: - Resource Endowment of the Region; - Resource Utilization: Identification of Key Indicators and Benchmarks for the Energy Sector and Description of the Energy Landscape; - Sector Constraints Analysis; - Options for the Next 30 Years; - Recommendations on the Optimum Energy Mix for the Region • Part 2: Preparation of a Regional ECOWAS Energy Policy and Action Plan for Implementation - Preparation of a Regional ECOWAS Energy Policy - Preparation of the Strategy Action Plan for Implementation 8. For the realization of the mission, the firm shall at least: • Be a major and internationally renowned firm with wide experience (at least 10 years) in updating Energy Policy Documents. • Have a qualified team of key staff (minimum of a Master’s degree) with at least 10 years working experience in the Energy Sector • Have the capacity to produce and provide the reports in at least two of the ECOWAS official languages namely English and French. 9. The selection procedure will be based on Quality and Cost in accordance with the ECOWAS Tender Code. ECOWAS Commission is under no obligation to shortlist any Consultant who expresses interest. 10. A shortlist of six firms which present the best profiles shall be drawn up after the Expressions of Interest. 11. The firms that are part of an international network are to submit one Expression of Interest. 12. The ECOWAS Commission now invites eligible consultant firms to indicate their interest in providing these services. Interested consultant firms must provide the following information showing that they are qualified to perform the services: • List of staff and expertise of the consultants for the assignment; • The firm should have on its team, members with a combined knowledge of the official languages of the ECOWAS Region, which are English, French and Portuguese; • List of verifiable technical references similar to this assignment: list of previous clients and contacts for this type of assignment stating the year and the cost of the assignment; • The Office Address (location, contact, BP, Telephone, Fax, e-mail). 13. Interested consultant firms may wish to apply as a consortium to enhance their profile and chance of being qualified. 14. Interested consultant firms may obtain further information at the address below during office hours: Monday to Friday from 9.00 am GMT+1 to 5.00 pm GMT+1. Procurement Division, Directorate of General Administration, ECOWAS Commission, Plot 101, Yakubu Gowon Crescent, Asokoro District, P. M. B. 401 Abuja Nigeria or by E-mail to this following addresses: procurement@ecowas.int 15. Expression of Interest must be in the three Community official languages (English, French and Portuguese) and delivered in sealed envelopes and clearly marked “RECRUITMENT OF A FIRM FOR CONSULTING SERVICES FOR THE UPDATE OF THE ECOWAS REGIONAL ENERGY POLICY DOCUMENT”, Do not open except in the presence of the Tender Committee” to the address below latest by Thursday August 27, 2015 at 11.00 am (GMT+1) The ECOWAS Tender Box is located in the Office of the Executive Assistant of the Commissioner, Administration & Finance, 5th Floor ECOWAS Commission, 101 Yakubu Gowon Crescent, Asokoro District, P. M. B. 401 Abuja Nigeria. 16. This EOI is also published on the ECOWAS website http://www.ecowas.int/doing-business-in-ecowas/ecowas-procurement Commissioner, General Administration & Conference
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DOSSIER | SUSTAINABLE DEVELOPMENT
OPINION
Mamadou Toure Chairman, Africa 2.0
Corporate social responsibility means building a better business ecosystem
T
urn to the corporate social responsibility (CSR) pages in the annual reports of many big companies and you will see many examples of clinics being opened and schools built. But businesses should cater to their own strengths. For instance, General Electric (GE) generally links its CSR programmes to their core businesses like energy and healthcare. Strengthening small and medium-sized enterprises in the community is also highly recommended. For example, while I was working as managing director for sales and project finance for GE Africa, my team designed and set up a supply chain investment vehicle dedicated to support our suppliers with the necessary capital, enabling them to produce spare parts according to global standards. This helped local companies skill up and participate. In that effort we brought partners on board such as the International Finance Corporation (IFC) to provide both equity and affordable long-term loans. The significant job creation impact and business growth became obvious for our stakeholders, including communities, suppliers and customers. In order to reinforce skills, we set up customer innovation centres around the world – one is currently being built in South Africa – allowing young engineers and suppliers to gain experience on GE’s most advanced technologies. So building schools, certainly that has some impact. But if you link schools to your business, you can address the double bottom line with both financial and social return, and create real long-term impact. I created Ubuntu Capital asaninvestmentfirmfocused on advisory and co-investment for that purpose. I call this new approach equitable investment. This is where funds are not just deployed to
maximise project returns but also deployed around the project ecosystem. This helps multiply sources of returns while maximising social return. An example of such a policy is using investment and capacitybuilding to strengthen the supply chain and consumer value chain. If you are a mining company, who supplies your gloves? Can they be made locally? Statistics have shown that projects that have the highest financial return in emerging markets are the ones that also take into consideration social return. In my days as investment officer at the IFC, we paid critical attention to ensure that social and economic developmental targets were assigned to sponsors in Africa. Our average 10-year blended return on equity from 2002 to 2012 exceeded 26%. What happens if you fail to take the social dimension into account? Look at Shell or ConocoPhillips exiting the Nigeria oil market and selling to locals. They failed to empower communities and create a solid ecosystem around their investments. They were faced with sabotages, strikes and poor supply chains, which ultimately affected their returns. An adage says: “In Africa, it takes a village to raise a child”. We could easily say: “In Africa, it takes a village for a business to rise”.UbuntuCapitaliscurrently working with global and leading regional corporations as project investment adviser and co-investor to help create these ecosystems. According to various studies, 70% of impact investors have exceeded their return targets. There is $22bn in impact investing capital around the world, and Africa is the second destination globally. Very little of such capital is sourced from Africa, so companies and pension funds on the continent should see this as a real opportunity. ● THE AFRICA REPORT
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ProJustice USAID Partner
REQUEST FOR PROPOSALS (RFP) Development of Case Management Information System for the Ministry of Justice, Human Rights, and Civil Liberties of Côte d’Ivoire
The Justice Sector Support Program, also known as ProJustice, funded by the United States Agency for International Development (USAID) and implemented by Tetra Tech DPK (Tt DPK), solicits proposals to develop a Case Management Information System (CMIS) for the Côte d’Ivoire Ministry of Justice, Human Rights, and Civil Liberties (MOJHR). The CMIS will track and manage criminal and civil cases for the courts, prosecutors’ offices, and the MOJHR. ProJustice Description: ProJustice, is a five year USAID-funded project designed to strengthen judicial administration, increase accountability, and improve access to justice for the people of Côte d’Ivoire. ProJustice works with the MOJHR, the National Judicial Training Institute, target courts, prosecutors’ offices, and civil society organizations. As part of the project, ProJustice has helped develop an information technology (IT) master plan that defines the MOJHR’s long-term vision for modernizing the justice sector’s IT infrastructure. The plan aims to (1) upgrade the IT hardware and (2) develop a CMIS. The CMIS, supported by the IT hardware upgrades, will be a case management system for the courts, prosecutors’ offices, and the MOJHR. The CMIS will allow the MOJHR to create, track, and manage criminal and civil cases; to generate administrative documents such as summons, warrants, birth certificates, and death certificates; and to improve the reporting capacity of the courts, prosecutors’ offices, and the MOJHR. With this tender, ProJustice intends to procure services consisting of development of a prototype automated CMIS and implementation of a pilot program to test and validate the CMIS at two courts and at the MOJHR. Requests for Proposals (RFP) Documents: Any organizations interested in submitting a proposal for the CMIS may request in person the RFP documents at the ProJustice office at II Plateaux Vallon, 06 BP 1301 Abidjan 06, Côte d’Ivoire or by emailing Procurement@projustice-ci.com Eligibility Criteria: To be eligible for selection, a proposal must be: • Timely received from the offeror • Properly signed by the offeror • Complete with all required sections including corporate credentials, management proposal, technical proposal, and financial/cost proposal. Timetable and Deadline: Two copies of the completed proposals shall be delivered to: PROJUSTICE, Attn: Procurement, II Plateaux Vallon, 06 BP 1301 Abidjan 06, Côte d’Ivoire. Proposals shall include all required documentation in order to be considered and shall be submitted by hand delivery or courier before 16:00 local time on August 17, 2015.
DAY IN THE LIFE EXTRAORDINARY STORIES OF ORDINARY PEOPLE
Labours of love
TSVANGIRAYI MUKWAZHI FOR TAR
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When not in the maternity ward delivering babies, Zimbabwean obstetrician Gerald Madziyire finds peace in running ultra marathons
M
y early years were spent in the rural area of Chivhu. My father was a college lecturer and my mother a school teacher. I was first inspired to be a doctor while still at primary school, where I was attended to by a doctor from the mission hospital. He treated a chronic alimentary condition I had, and he made an impact on me at that young age. I also first met my wife, Nyasha, when we were in primary school, but we lost touch until university. I studied medicine at the University of Zimbabwe, and once I completed my internship I joined Marondera Hospital in the northeast of the country. I did much maternity work there and this finally influenced my decision to focus on this field. After a year, I came back to Harare to specialise in gynaecology. It took me a while to build goodwill and for patients to come when I opened my own practice in 2005. But now, aged 43, I have had my practice for 10 years and also lecture at the University of Zimbabwe. The main challenge I face is the ever-present threat of a bad outcome: the loss of a mother or a baby. On the other hand, it is very rewarding to receive gratitude when all goes well, as it usually does. In 2008, there was an economic meltdown in the country. My total income from the university lectureship and private practice could not sustain the family. I guess you can say I was forced to leave. I was offered employment as a consultant obstetrician and gynaecologist at the second-biggest government hospital in Botswana. I went with my wife and two sons while my eldest daughter remained in boarding school in Zimbabwe. We were there for two years. There’s nothing for our children in this country because of the state of the economy. While not desirable,
it is more practical that they find employment abroad. I got a wake-up call in my final year studying medicine. A physician performed a step-ECG test on me and told me I had no business being so young and so unfit. After this shock, I started running regularly in the mornings. I’ve made running part of my routine since 1999, but in 2004 I treated a runner and he invited me to join his club. My first race was 32km, which I finished in three hours 10 minutes. I still run with the club and now have a structured training programme. I have just completed my sixth 89km Comrades Ultra Marathon. I ran my first Comrades in 10 hours 14 minutes and steadily progressed to eight hours 10 minutes in June this year. My ambition is to run 10 Comrades races, receive my Green Number and then run an eleventh wearing it. I find lots of peace in running and make it a time to reflect, meditate and pray. When I run with my training partners, I enjoy the discussions and take the time to learn about their pursuits. I love the challenge that each running goal brings. I also love obstetric practice and equate a woman in labour with somebody running a marathon. Labour and running are equally painful and long processes with a gratifying conclusion. ● Interview by Farai Mudzingwa THE AFRICA REPORT
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