Majority of African countries have reported increased economic growth rates over the past year signalling a wave of new foreign direct investments on the continent. This is good news given that increased returns from such investments will fuel Africa’s quest for development. However, this has had some negative connotations because benefits of such growth are not visible in major cities across Africa. A case in point is the Kenyan capital city, Nairobi, which has seen its population increase by 6% per annum to 3 million and is projected to hit 4 million within the next 3 years, according to a recent UN Habitat conference held in Monterrey, Mexico in 2007. Being a regional headquarter to several international companies and organizations, Nairobi is one of the most influential cities in Africa. In 2007 alone, major international companies like Google Inc. and Coca-Cola relocated their Africa headquarters to Nairobi, which also plays host to the United Nations Environmental Program (UNEP) and UN-Habitat.
Development trends of major African cities have been fuelled mostly by centralisation of important ingredients that spur economic growth. Most resources are revolving around capital cities, which report tremendous growth each financial year at the expense of the rest of the economy. Economic growth is not uniform since such centralisation has had the effect of reversing progress made in terms of economic growth given that everyone is running to the city for opportunities at the cost of the city’s infrastructure, which can hardly support the increased activity. This has turned Nairobi city into a pocket to mouth economy because any monetary gains made in the past are being used to repair damage caused by increased strain of the same resources.
A recent World Bank report estimates that over 5,000 vehicles are registered to Kenyan roads every month, against a back drop of an already over used, narrow and dilapidated road network. Another problem this trend presents is the importation of second hand vehicles which are deregistered from their home countries due to high fuel consumption, old age and high carbon emission into the atmosphere. The result has been increased wastage of time due to preventable traffic jams, environmental damage and an advent of respiratory diseases. With very low earning power, a majority of the city residents cannot afford treatment. Resources that could have been used to develop other regions to create uniform economic growth for the country are being diverted to revert problems of preventable respiratory diseases, damaged roads, increased crime, drug and alcohol abuse among other preventable issues.
Given the above recount, one way of ensuring that growth rates reported reflect the situation on the ground is to decentralise management of the economy in such a way as to create more economic opportunities at the grassroots level thus minimising rural to urban migration. Moving or replicating key economic growth boosters such as roads, information and telecommunication technology (ICT) and government administration from the capital city will present better prospects for growth. Unfortunately, devolution of resources and government is an emotive political issue especially in Africa where there are unfounded fears that different cultural affiliations may create chaos, anarchy or even war; as is the case in Kenya, which is preparing for elections in December 2007 where presidential aspirants are using devolution as a basis for the next government. Devolving government administration and economic centres to areas that desperately need growth would serve to develop these areas thus improve the overall picture of success.
A classic example of a successful devolved approach to resource planning at local level is Norway, which reported the highest quality of life worldwide according to the 2006 Human Development Index (HDI), published annually by the UN, and ranks nations based on their citizens' quality of life rather than traditional economic figures. Norway has managed to successfully devolve its resources and legislation enabling it to report an all-inclusive economic growth year after year. If this has succeeded in the developed world, Africa should not be an exception.
For all your business information, Trends and Tips from around the world.
Thursday, November 15, 2007
Is Africa Chocking on its own development?
Labels: Africa and poverty
Wednesday, November 7, 2007
Tanzania on a mission to wipe out Kenya’s flamingoes

By Ken Opala Daily Nation
Kenya’s multi-billion shillings tourism industry faces major test as Tanzanian authorities plan a soda ash project that could eliminate the flamingos in the region.
The plans have sent world conservationists into a spin.
A number of them attending a key international environment meeting here in the Norwegian coastal city of Trondheim are busy lobbying global action against the project that seeks to mine soda (used in the making of glass) from Lake Natron, considered the cradle of a type of flamingo that is endangered.
This writer was able to see a number of petitions signed by conservationist seeking to block the project on grounds that, if implemented, it will kill “the world’s greatest ornithological spectacle”, even as it damages livelihoods that are intricately linked to the Rift Valley tourism industry.
Dr Hazell Shokellu Thompson, the head of Birdlife Africa Partnership Secretariat, says his organisation has listed the services of two lawyers (a Kenyan and Tanzanian) to look at the possibility of moving to the East African Court of Justice sitting in Arusha, Tanzania, to block the envisaged project.
“We are meeting this Friday to look at that possibility,” he told this writer by the sides of the UN/Norway Government Trondheim Conference.
“We have already contacted our lawyers in both the countries.”
Dr Thompson was one of the speakers at the conference.
Others from Kenya included Unep’s Bakary Kante, Walter Jami Lusigi (a senior adviser to the World Bank in Washington), and Lucy Mulenkei (a minority rights activist)
In one of the petitions, the Wildlife Conservation Society of Tanzania (WCST) and the Birdlife Africa Partnership, say Lake Natron Resources Ltd, a company jointly owned by the Tanzania Government and TATA Chemicals Ltd. of Mumbai, India is proposing the development of a soda-ash facility at Lake Natron.
According to the conservationists, this development could “bring about changes in the lake’s chemical composition, affecting the cyanobacteria on which the flamingos feed”.
BirdLife Africa argues that all the three million Lesser Flamingos in the region, from Djibouti down through Tanzania to Malawi, were hatched at Lake Natron
“New roads and railways, and an influx of settlers into an otherwise pristine area (with a low population of Maasai pastoralists), will cause substantial disturbance. Following the people will be scavenging birds such as Marabou Storks, associated with mass desertion of flamingo nests elsewhere.”
The salty Lake Natron is close to the Kenyan border and is very shallow, just three metres deep, although this depth varies from one end to the other.
Its bed is covered by the salt crust that runs through Kenya’s Lake Magadi, in the north.
Magadi is the world’s largest soda ash mine, and is just kilometres from Lake Natron.
“It is likely that the proposed plant would lead to a collapse of the lesser flamingo population in East Africa,” says Dr Thompson.
The Nation has gathered that the Tanzanian National Environment Management Council (NEMC) planned to meet to discuss the project’s likely harm to both the environment and the livelihoods of the local people.
A UN official attending the Trondheim conference confirmed he planned to visit the area of conflict soon.
Flamingos are a major tourism attraction in Kenya. Thousands of tourists visit the Rift Valley lakes of Naivasha, Nakuru and Bogoria to view the pink spectacle of these migratory birds.
Lake Nakuru alone generates some $15 million (about Sh1.05 billion) annually.
Yet the birds have faced constant threat from pollution, but the latest threat could be one of their biggest dangers of all, say conservationists.
The flamingos are attracted to the lake because it offers a reliable food supply and freshwater, even as it acts as a protection against most predators, conservationists argue.
According to documents by BirdLife Africa, the lesser flamingo stands between four and five feet high but is the smallest of the six flamingo species.
It has long pink legs and a long neck. Its large body is rose-pink, the colour coming from pigments in its main food. The birds eat by holding their bills upside down in the water.
They are found throughout Africa south of the Sahara, and from the Arabian Peninsula to Pakistan. They occasionally migrate to areas bordering the Mediterranean.
According to estimates, there are about 3.25 m lesser flamingos in the world of which around three-quarters, about 2.5 million, are found in East Africa.
“Lesser Flamingos are extremely sensitive to environmental disturbance, particularly when breeding. They easily abandon colonies,” says Dr Thompson.
Flamingos live until they are about 40 years old but only breed every five or six years. Non-breeding birds do not return to breeding sites until they are ready to breed again.
Labels: Tanzania
Monday, October 29, 2007
Thoughtless James Watson was Seeking cheap publicity over Stupid Africa comment
Partly edited from“The African Executive”
As thoughtless as it sounds, James Watson knew only too well that being controversial would get all the media publicty ever thought of (cheaply); the Nobel prize not withstanding. Watson found a perfect opportunity to retire by claiming that black people less intelligent than white people and that it's delusional to assume "equal powers of reason" are shared across racial groups. The Nobel Prize laureate and DNA expert has drawn widespread condemnation for saying that Western policies towards African countries are wrongly based on an assumption that black people are as clever as their white counterparts when "testing" suggests the contrary. Dr Watson told The Sunday Times that there is a natural desire that all human beings should be equal but "people who have to deal with black employees find this not true."
Although Africans have contributed to this perception by begging for foreign aid from Western countries despite the continent's unequalled natural resource endowment, powerful African physic, abundant numbers and enviable climate, Dr Watson's assertion is meant to perpetuate the idea of western superiority. This is the same mindset that saw Africans enslaved in a barbaric manner (because ancient tradition of slavery recognized people as human, but whites turned Africans into wild-animals), colonized and gave rise to the apartheid regime in South Africa. It is the same reason that has made the West to perpetuate a matron role of babysitting Africa from cradle to grave.
IQ, in Watson's perception refers to understanding Western education and being able to embrace Western policies and culture- but who said that Western civilization is the yardstick for human progress? Watson has intentionally set a trap for Africans to not only make fools of themselves as they try to prove their worth, but also to waste their time. Today, they tell us to prove ourselves intelligent by passing western fashioned IQ and Technology invention tests. They harp on negative reporting as evidenced in their propped up portrayal of Africa as a place with children whose ribs are protruding; stomachs bloated and fly infested. Does the entire Africa, with over 900 million people fit this gloomy description?
The Irish were once thought of in the same terms black people are today. The Romans also thought the Germans were inferior barbarians. They have proved the contrary. Don't the Chinese also see themselves as the master race? Black people must ask themselves why they should believe this nonsense. They ought to chart how they can claim their stake on the globe just like the Southeast Asians did. No amount of whining will change global perceptions as long as our people go on to live in squalor and depend on Western handouts and ideas. A victim mentality precludes accountability and responsibility and sustains dependency. The onus is on us! The Irish, the Asians and the Arabs took charge of their destiny and waited for no acknowledgements. We have our job cut out for us.
Labels: Dr. Watson
Friday, October 19, 2007
Will Money Solve Africa's Development Problems?
The debate about Africa's development is ON and experts are pointing to all sorts of direction regarding the way forward for the continent. In this context, world renowned John Templeton Foundation published 8 essays in a series of conversations that sought to answer the question: Will Money Solve Africa’s Development Problems? The publication featured leading scientists and scholars in which Four essayists negate; two affirm while the rest express doubt.
Below are excerpts on from the publication:
YES..... If it is invested in enhancing African capabilities to integrate the continent into global networks of knowledge and creating prosperity and stability. This will mean confronting and overcoming a triple failure: corruption and abuse of power by African governments, predatory practices by extractive industries, and the waste of resources by an uncoordinated and ineffective aid system." “Ashraf Ghani, Chairman Institute for State Effectiveness.”.
NO..... Not as long as there are issues such as prolonged violent conflict, bad governance, excessive external interference, and lack of an autonomous policy space. Alone, money cannot solve Africa’s development problems. Proof, if any was needed, is the fact that many of Africa’s natural resource-rich countries score very low on human development indicators "Dr. Donald Kaberuka, President- African Development Bank.”
Only If..... African entrepreneurs are the key to solving Africa’s development problems. It is they who can drive their continent’s economic growth and it is they who can make their governments better. If money is invested engaging the organic and transformative potential of local entrepreneurs, Africa will flourish. If money is poured into government bureaucracies – which hold back these entrepreneurs – Africa will continue to languish. “ Iqbal Z. Quadir founder GrameenPhone - Bangladesh”
No Way..... The problem in Africa has never been lack of money, but rather the inability to exploit the African mind. Picture a banana farmer in a rural African village with a leaking roof that would cost $100 to fix. If one purchased $100 worth of his bananas, the farmer would have the power and choice to determine whether the leaking roof is his top spending priority. On the other hand, if he is given $100 as a grant or loan to fix the roof, his choice would be limited to what the owner of the big money views as a priority. Out of 960 million Africans in 53 states, there are innovators and entrepreneurs who, if rewarded by the market, will address the challenges facing the continent. “ James Shikwati, founder and Director, Inter Region Economic Network”
No..... By now we should have learned. Donor nations have spent billions of dollars for development schemes in post-colonial Africa, yet there is little to show for this beyond dependency and corruption. Yet current policy and sentiment seem to advocate more of the same. Pop music and movie stars join celebrity academics in trying to shame wealthy nations into committing ever-expanding funds to address African poverty and ill health. This grand scheme mentality has remained immune from the feedback that failed programs ought to have provided. As for the intended beneficiaries, we find a psychological colonialism that has brainwashed the poor into believing the solutions to their problems are to be found in the technical know-how and largesse of wealthy countries. “ Edward Green, director of the AIDS Prevention Research Project at Harvard’s Center for Population and Development Studies.”
NO..... Clearly, money alone does not solve problems. What is needed instead are business, social, and political entrepreneurs who take responsibility for, say, making sure medicines reach victims, rather than more grandiose slogans about comprehensive administrative solutions that only serve as publicity vehicles for raising yet more money for ineffectual aid bureaucracies. Entrepreneurs would be accountable for results, in contrast to the aid bureaucrats and rich country politicians who make promises that nobody holds them accountable for keeping. “ William Easterly is professor of economics at New York University.”
YES..... But there is another way of solving this problem and it is being illuminated by, of all people, some of the poorest parents on earth. These parents are abandoning public schools en masse to send their children to budget private schools that charge low fees of a few dollars per month, affordable even to families living on poverty-line wages. In the shantytowns of Lagos, Nigeria, for instance, or the poor rural areas surrounding Accra, Ghana, or in Africa's largest slum, Kibera, Kenya, the majority of schoolchildren – up to 75% – are enrolled in private schools. “ Professor James Tooley is president, The Education Fund, Orient Global.”
I Thought So…..The President of Rwanda, Paul Kagame, called me to his office to assist him to build private sector capacity and improve export competitiveness. I informed him that it would not be possible for the amount of money and time he budgeted to do my job and train Rwandans at the same time. He told me the story of when he had finally accumulated enough money to provide back pay for his troops who were fighting to end the genocide. He asked them if he could use the money, instead, to purchase helicopters to help end the war sooner. Not a single soldier objected.“Michael Fairbanks is the co-founder of OTF Group, and the SEVEN FUND, which provides grants for enterprise solutions to poverty.”
Read the rest of the Essays by visiting John Templeton Foundation Website.
Labels: Africa and poverty