The seemingly well orchestrated xenophobic attacks (pitting locals against hapless “black foreigners” in the township of Alexandra, north of Johannesburg) has left many injured, dead or displaced after they were forcefully evicted and their houses destroyed. The violence has shown no signs of abating and has been spreading fast to the city center and across the Gauteng region. Reports indicate an increase of violence against women and children who have been left to bear the brunt of this insensitive fervor. According to Medecins Sans Frontieres (MSF) which has treated many victims of live bullets, beatings and rape, it is a classic refugee situation that will eventually overwhelm the authorities. South African police were stretched so thin that the military had to be deployed to help quell the situation. Why the violence?
It is particularly shameful for the "Rainbow Nation" considering its past record on human rights abuses and democracy. South Africa’s president, Thabo Mbeki knows that what is happening in today is a replay of the situation in Zimbabwe some 10 years ago when Comrade Robert Mugabe began a controversial land redistribution program that saw many commercial farms seized from white farmers and turned over to blacks sending its economy into a spin. Zimbabwe has never recovered. The only difference comes in who is executing the anti “rest of Africa” policy in which poor South Africans are being used by hidden forces out to gain with the exit of black immigrants. It is therefore not strange that such violence can occur at a time when the country is preparing to host the 2010 FIFA World Cup and Mbeki ousted from the ANC leadership. Many hoped that the World Cup would bring new opportunities for the entire continent. But it seems South Africa is not ready to share such glory with the “rest of Africa”. It took days of violence for authorities to notice its magnitude. The statement from President Mbeki that “Citizens from other countries on the African continent and beyond are as human as we are and deserve to be treated with respect and dignity", was just that, a statement…a mere rhetoric.
“It has to do with two things. First of all there is resentment against the same person being at the helm, which is good for democracy. And also Mr. Mbeki had a distance between himself and the general population, and Mr. Zuma on the other hand is a very populist kind of a speaker and has closed relations with people on the ground. I think the two balance each other. It’s not necessarily a rejection of Mr. Mbeki’s policies. It is a rejection of Mr. Mbeki’s personality,” he said.
Pakerndorf described Mbeki as a foreign educated South African while Zuma educated himself while serving jail time for the ANC.(Continues below)
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Top posts in May 2008:
1. South Africa Violence: Why is Brother Fighting Brother?
2. Africa Day is not Socialism Day!
3. Keen on business, China is yet to flex its formidable military muscle in Africa
4. Top secrets: Gaddafi plotted to bomb Kenya
5. Democracy, reforms can end fear of instability
6. Kenya tea loses its flavor in Pakistan
NOTE:
Are the Xenophobic attacks in South Africa Justified?
(Give you view on the violence in South Africa in the poll at the top of this page)
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“If you go back in history, Mr. Mbeki left the country when he was still a teenager and spent most of his time in Europe and latter part in Lusaka, Zambia and hasn’t had a real connection with people on the ground or ordinary South Africans” Pakerndorf said.
He said the fact that Mbeki turned South Africa’s economy around matters little to ordinary South Africans.
“What is interesting and important is that people on the ground actually expect that their lives should be better and could be better. They see their fellow black South Africans moving ahead, some of them becoming millionaires, moving into brick houses. And I think that’s part of what you see happening here. People on the ground are simply saying no more of the same. We want to be part of the economy,” Pakerndorf said.
Since the apartheid era, many locals have slipped into abject poverty despite the newly expanded freedom that has done little to improve the quality of life of many in the rainbow nation. However, all blame should be targeted towards the South African government and not the immigrants many of whom are playing a positive role in the country’s development. The South African Xenophobia began with the end of apartheid, NOT yesterday like we are being made to believe. Granted, there are many South Africans who live in “the rest of Africa” but it would be despicable if they too were to undergo the same wrath.
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Friday, May 30, 2008
Is Thabo Mbeki the source of South Africa Xenophobia?
Japan has come late to this second scramble for Africa—and knows it
THE copper is used in computers. The nickel is for batteries. Tungsten is used to fortify steel for cars. Japan buys much of its rare metal from China to feed its electronics and car industries. But as booming China has begun to close the spigot to safeguard its own supplies, Japan, the world's second biggest economy, has been forced to look elsewhere for an alternative source—in Africa.
On May 28th it hosted the Tokyo International Conference on African Development, a quadrennial event since 1993. About 40 African heads of state or government attended. Japan's prime minister, Yasuo Fukuda, promised to meet each one individually, as well as Bono, a pop singer, without whom no such gathering on Africa is complete. (Continues below)
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Also Read: Is Africa Milked Dry In the Name of Aid?
Top posts in May 2008:
1. South Africa Violence: Why is Brother Fighting Brother?
2. Africa Day is not Socialism Day!
3. Keen on business, China is yet to flex its formidable military muscle in Africa
4. Top secrets: Gaddafi plotted to bomb Kenya
5. Democracy, reforms can end fear of instability
6. Kenya tea loses its flavor in Pakistan
NOTE:
Are the Xenophobic attacks in South Africa Justified?
(Give you view on the violence in South Africa in the poll at the top of this page)
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But whereas in previous meetings aid topped the agenda, this time it has been all about the hunt for natural resources—with Africa's best interests at heart, of course. “If we are able to utilise Africa's plentiful resources more fully by harnessing Japan's technologies,” Mr Fukuda said, “this will surely be a major trigger for growth and without a doubt benefit Africa.”
This has become a familiar refrain from the leaders of Asia's other expanding economies. Japan is following firmly in the footsteps of China and India, both of which have hosted lavish African summits in the past 18 months, both of them keen to buy Africa's oil and metals.
Like the others, Japan is offering sweeteners to make itself a saucier commercial partner. This week it pledged to double aid to Africa by 2012, to $3.4 billion. It will also provide up to $4 billion in low-interest rate loans, which means easing its rules against lending to countries that have previously received debt relief.
Japanese officials stress that all this comes with no strings attached (except perhaps Africa's support for a permanent Japanese seat in the UN Security Council), a not-too-subtle hint that the country hopes to compete on an equal footing with China. Its loans are never linked to improvements in governance or human rights, unlike many of those from Europe, which hosted its own Africa summit in Portugal last December, or America. This reflects the fact that Japan has come late to this second scramble for Africa—and knows it.
Wednesday, May 28, 2008
Is Africa Milked Dry In the Name of Aid?
As Africa heads converge in Japan for the Tokyo International Conference on African Development (TICAD), it is urgent that we reflect on African interests. We already have had Sino-Africa, Euro-Africa, Indo-Africa and now TICAD. The most common denominator in all these is aid.
During an International Seminar of Aid Effectiveness which took place in Kenya recently, it was reported that Mr. Kilonntsi Mporogomyi a Tanzanian Member of Parliament who is also a member of NEPAD Contact Group of African Parliamentarians mentioned that some donors are also engaged in corruption that paralyzes Africa’s economy.
These donors have always attached unrealistic aid conditions, for instance the consultancies and tendering are usually done by the companies from donor countries which subject most recipient countries to grinding poverty as half of the aid is consumed by such companies. (Continues below)
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Top posts this month:
1. South Africa Violence: Why is Brother Fighting Brother?
2. Africa Day is not Socialism Day!
3. Keen on business, China is yet to flex its formidable military muscle in Africa
4. Top secrets: Gaddafi plotted to bomb Kenya
5. Democracy, reforms can end fear of instability
6. Kenya tea loses its flavor in Pakistan
NOTE:
Are the Xenophobic attacks in South Africa Justified?
(Give you view on the violence in South Africa in the poll at the top of this page)
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These donors allegedly meet our government ministers in exclusive hotels where they sign agreements without scrutinizing the documents. Most of these binding statements have been favoring donors and not Africans. Such unrealistic moves should be avoided as such donors need to be censored first. Why milk a continent dry in the name of aid?
Most African governments have executive sweeping powers on international and bilateral economic engagement leaving no room for independent evaluation of aid use for audit purposes. The donors use such powers to secretly meddle with our economies. Nothing regarding a country should be signed in an exclusive setting as this threatens transparency which we are working so hard to achieve.
When shall Africa host a frank intra-Africa summit to strategize on how to exploit our resources to generate income?
CLICK HERE TO READ THE REST OF THE BLOG
Tuesday, May 27, 2008
Safaricom sets record for Kenya’s blue chips
Safaricom yesterday reported record profits and announced plans to boost coverage in the rural areas as a strategy of growing its customer base in the face of mounting competition.
Telkom Kenya and Econet Wireless are expected to launch mobile phone services later in the year , adding competitive pressure in a market Safaricom has dominated for nearly a decade.
With earnings before interest, taxes, depreciation and amortization or Ebidta (an accounting measure that is used as a proxy for true earnings and cash generation power of a telecommunication company) of Sh28.1 billion representing a growth of 15 per cent.
Safaricom for the third year running has emerged as the most profitable company in Kenya and among the best in sub-Saharan Africa. This is expected to raise interest in its shares, which are expected to begin trading at the Nairobi Stock Exchange in early June.
Net profit, which represents the money available to shareholders hit Sh13.8 billion, reflecting a 15.3 per cent increase.
The operating profit however grew at a modest rate of 3.8 per cent to Sh18.5 billion, revealing the extent to which the business was unable to reign in costs as its expansion plan gathers pace.
Safaricom’s revenue rose to Sh61.3 billion from Sh47.4 billion a year earlier, representing a 29.3 per cent growth.
The performance, driven by an increase in company’s subscriber base from 6.1 million in 2006 to 10.2 million in 2007, comes as competition intensifies in the cellular phone market with the entry of new players.
Econet Wireless, which is partly owned by India’s Essar, is set to rollout its mobile services in July, while Telkom Kenya, owned 51 per cent by France Telecom, is planning a rollout in September.
To maintain its profit momentum in the face of the competition, Safaricom is planning to widen its footprint in the under-served rural areas to boost its national coverage. The firm currently has a national coverage of about 60 per cent range compared to 84 per cent for its main rival Celtel Kenya.
“Having a national footprint is key to beating competition,” said Michael Joseph, the company’s CEO. “You don’t win this market by simply lowering tariffs and rolling out in a few urban centers.”
Kenya’s mobile phone penetration stands at 34 per cent of the population and is expected to increase to 60 per cent in the next four years as more rural dwellers sign up.
Besides boosting its coverage in the rural zones, Safaricom is counting on lower tariff rates and its new low airtime denomination of Sh20 to penetrate the price sensitive rural consumers.
The firm said it is targeting about two million new subscribers by the end of the year, on the back of renewed investment in infrastructure and a focus on the rural market.
Mr Joseph said that the new entrants would find it hard to eat into Safaricom’s market share, which increased to 84 per cent from 73 per cent in the past 12 months. His optimism is hinged on the fact that it would take the competition time to build a network the size of Safaricom.
“Our coverage and huge subscriber base will give us the much needed competitive edge,” said Joseph.
But competition is not about discouraged by Safaricom’s might.
Celtel, the number two player and who has failed to match the might of Safaricom as it reported a loss of Sh1.5 billion last year has set in motion an ambitious network upgrade plan that should push it’s population coverage from 84 per cent in 2007 to 95 per cent this year.
This will be backed by a multi-million shilling advertising blitz on a name change to Zain, as Celtel races to strike a chord with youthful subscribers, a market that Telkom Kenya is keen to tap into.
Econet Wireless made its intention clear, with the announcement that it has placed Sh9.3 billion order for GSM network followed by the onset of the recruitment drive for key staff.
Telkom Kenya has also placed its order and is set to unveil its network in September targeting major urban centers before spreading to the rest of the countryside, a strategy that Econet is also keen to employ.
This is a clear signal that the twin entrants are targeting the urban clientele that has over the past eight years driven Safaricom’s profits.
But Safaricom is not about to let the entrants eat into its urban market as it pursues the rural dwellers.
The commercial launch of its third generation 3G mobile technology on Monday, enabling roll out of multimedia services such as video and television on mobile and faster internet connection would help the firm capture corporate clients and high end customers.
And through its newly launched money transfer service, Mpesa, the firm hopes to fence in its subscribers and deny other operators getting access to its subscribers who are likely to get reluctant to switch networks easily.
“Mpesa is a not a huge revenue generating business but it makes subscribers stay with Safaricom,” said Les Baille, the company’s Chief Financial Officer.
