Professional Documents
Culture Documents
U.S. military joint-service team steps up for Operation Onward Liberty 2011
(Marines.mil)
(Liberia) Marine Corps Forces, Africa (MarForAf) recently received here the first wave
of new mentors bound for Liberia to participate in Operation Onward Liberty(OOL)—a
Department of State-funded, U.S. Africa Command program aimed at rebuilding the
Armed Forces of Liberia (AFL).
Tunisia riots: Reform or be overthrown, US tells Arab states amid fresh riots (The
Telegraph)
(Tunisia) Hillary Clinton ended a tour of the Gulf with a warning that leaders who
failed to carry out political and economic reform risked being cast aside.
Mobs in Ivory Coast Attack United Nations Vehicles (New York Times)
(Ivory Coast) Mobs loyal to Laurent Gbagbo, the president who refuses to give up
power after losing an election, burned and stoned five United Nations vehicles on
Thursday, including an ambulance, a United Nations spokesman said.
WHEN/WHERE: Tuesday, January 25, 2011, 6:30 pm; Elliott School of International
Affairs, George Washington University
WHAT: The Referendum in Southern Sudan
WHO: Jendayi Frazer, Distinguished Public Service Professor; Director, Center for
International Policy and Innovation, Carnegie Mellon University; Former U.S. Assistant
Secretary of State for African Affairs (2005-2009)
Info: http://www.elliottschool.org/events/calendar.cfm?
fuseaction=ViewMonthDetail&yr=2011&mon=1#1402
MUCH has been written about the rise of the BRICs (Brazil, Russia, India and China)
and the shift in economic power eastward as Asia outruns the rest of the world. But the
surprising success story of the past decade lies elsewhere. An analysis by The
Economist finds that over the ten years to 2010, no fewer than six of the world’s ten
fastest-growing economies were in sub-Saharan Africa (see table).
The only BRIC country to make the top ten was China, in second place behind Angola.
The other five African sprinters were Nigeria, Ethiopia, Chad, Mozambique and
Rwanda, all with annual growth rates of around 8% or more. During the two decades to
2000 only one African economy (Uganda) made the top ten, against nine from Asia. On
IMF forecasts Africa will grab seven of the top ten places over the next five years (our
ranking excludes countries with a population of less than 10m as well as Iraq and
Afghanistan, which could both rebound strongly in the years ahead).
Over the past decade sub-Saharan Africa’s real GDP growth rate jumped to an annual
average of 5.7%, up from only 2.4% over the previous two decades. That beat Latin
America’s 3.3%, but not emerging Asia’s 7.9%. Asia’s stunning performance largely
reflects the vast weight of China and India; most economies saw much slower growth,
such as 4% in South Korea and Taiwan. The simple unweighted average of countries’
growth rates was virtually identical in Africa and Asia.
So it should, of course. Poorer economies have more potential for catch-up growth. The
scandal was that Africa’s real GDP per head fell for so many years. In 1980 Africans had
an average income per head almost four times bigger than the Chinese. Today the
Chinese are more than three times richer. Africa’s rapidly rising population still
dampens its growth in real income per head but that, too, has risen by an annual rate of
3% since 2000—almost twice as fast as the global average.
For Western firms Africa’s economy still looks tiny, accounting for only 2% of world
output. Emerging Asia’s is ten times larger. But Africa’s share is rising, not only
because of brisker growth but because GDP has been seriously understated in many
economies. In November the size of Ghana’s economy was revised up by a massive 75%
after government statisticians improved their data and added in industries such as
telecoms. Other countries are likely to revise their GDP levels and growth rates upward
over the coming years.
Africa’s changing fortunes have largely been driven by China’s surging demand for
raw materials and higher commodity prices, but other factors have also counted. Africa
has benefited from big inflows of foreign direct investment, especially from China, as
well as foreign aid and debt relief. Urbanisation and rising incomes have fuelled faster
growth in domestic demand.
Economic management has improved, too. Government revenues have been bolstered
in recent years by high commodity prices and rapid growth. But instead of going on a
spending spree as in the past some governments, such as Tanzania’s and
Mozambique’s, have put money aside, cushioning their economies in the recession.
Some ambled through the decade rather than sprinted. Africa’s biggest economy by far,
South Africa, is one of its laggards: it posted average annual growth of only 3.5% over
the past decade. Indeed, it may be overtaken in size by Nigeria within ten to 15 years if
Nigeria’s bold banking reforms are extended to the power and the oil industries. But
the big challenge for all mineral exporters will be providing jobs for a population
expected to grow by 50% between 2010 and 2030.
Commodity-driven growth does not generate many jobs; and commodity prices could
fall. So governments need to diversify their economies. There are some glimmers.
Countries such as Uganda and Kenya that do not depend on mineral exports are also
growing faster than before, partly because they have increased manufacturing exports.
Standard Chartered thinks that Africa could become a significant manufacturing centre.
This group represents the first of a batch of what will be about 50 service members,
assembled based on their individual talents and experience, tasked with providing
Security Force Assistance (SFA) in support of Liberian Security Sector Reform (LSSR)
initiatives. Essentially, the service men and women will provide training and
mentorship to the AFL. They stopped at MarForAf headquarters for in-processing and
briefings prior to heading to Monrovia, Liberia to start their six or 12-month tour as
military advisors and mentors.
“The Marines are coming from varied backgrounds, most of them are combat arms
while a few of them are from the supply and logistics fields,” said Maj. Brett Clarke,
Action Officer for OOL, MarForAf. “These Marines are representative of the whole
Marine Corps; they are coming from all over the Marine Corps.”
Operation Onward Liberty is a joint-venture between the Marine Corps, Air Force and
Army. Fifteen airmen and nine soldiers, some legal clerks and some medics, are going
down to lend their expertise and professionalism to mentor the AFL.
The OOL mission is a five-year program to ensure Liberia has the capability and
capacity to defend her borders and come to the aid of her sister countries if that need
should arise. The U.S. is using a crawl, walk, run methodology and this new team of
mentors will help the AFL transition through the walk phase of training in the form of
platoon and eventually company-level skill sets and maneuvers.
“This team will focus more on company-level training;” added Clarke. “These guys will
be focusing and ensuring that they can do company-level operations on up to battalion-
level and eventually up to the regimental-level.”
“[Getting this billet] was sheer happenstance. The opportunity was offered by my
command to come to Monrovia, Liberia, and they were shopping around to see if
anyone was interested and I threw my name in the hat and sure enough I got accepted,”
explained Wilson.
There aren’t currently any solid requirements a Marine needs to meet before
volunteering for OOL but a mixture of Marine Corps and life experiences may
contribute vastly to a Marine’s ability to relate to the Liberian people.
Wilson spoke about his time stationed in Albany, Ga. during the floods. “Providing
[locals] with humanitarian and relief support…that experience is really going to help
out a lot. I’m really looking forward to getting down there and meeting and helping out
the Liberian Army to help continue setting up their whole structure,” added Wilson.
As the new OOL staff completes their pre-operational training they will start making
the trek to Liberia to do their part to train and mentor the AFL during their six or 12
-month rotation.
When Ellen Johnson-Sirleaf was elected president of Liberia in 2006, Liberia had only
three years ago been in the throes of civil war; started by a military coup d'état. One of
her first presidential actions was to disband the military hoping it would discourage
dissent and allow her to give her country a fresh start from the ground up. Sirleaf then
petitioned the U.S. State Department to lend a hand rebuilding the AFL. That
partnership is the LSSR program, and OOL was created to address reformation efforts
in the Liberian Defense Sector, specifically the AFL.
Early LSSR efforts saw a force of 2,000 AFL soldiers recruited, extensively screened,
mentored and trained by State Department contractors for a period of two years. U.S.
Africa Command took over the program January 1, 2010 and tasked the Marines from
MarForAf with spear-heading the program and referred to the program as LDSR,
highlighting the fact that MarForAf efforts concentrated on the defense sector, a subset
of the overall security sector that the U.S. State Department is committed to support.
Liberia Defense Sector Reform, not a widely known doctrinal term, is sometimes used
to differentiate the defense sector from the larger security environment (Police forces,
border agencies, etc). In this case MarForAf provides SFA to support the desired reform
efforts of the Liberian government, observations and lessons learned from OOL will
prove extremely valuable to any future security sector reform efforts on the continent of
Africa.
------------------
Tunisia riots: Reform or be overthrown, US tells Arab states amid fresh riots (The
Telegraph)
Police in Tunis opened fire and shot tear gas in the air as stone-throwing youths
breached a curfew and surrounded government buildings.
At least three people were reportedly killed, bringing to more than 60 the number said
by human rights groups to have died in a wave of unrest in what was previously seen
as one of the Arab world's most stable and prosperous countries.
Four more people had already been shot and killed in Tunis's suburbs on Wednesday
night.
President Zine al-Abidine Ben Ali, 74, who has been in power since he overthrew his
predecessor in 1987 sacked the interior minister on Wednesday but failed to quell calls
for his resignation.
However, as the president was speaking, promising an end to force, two people were
killed as police opened fire on protesters, witnesses said.
Hillary Clinton ended a tour of the Gulf with a warning that leaders who failed to carry
out political and economic reform risked being cast aside.
"In too many places, in too many ways, the region's foundations are sinking into the
sand," she said.
"Those who cling to the status quo may be able to hold back the full impact of their
countries' problems for a little while, but not forever.
"If leaders don't offer a positive vision and give young people meaningful ways to
contribute, others will fill the vacuum."
Protests over unemployment and food prices have also broken out in Algeria, Jordan
and even Saudi Arabia in recent weeks, all countries with a high proportion of young
people, many well-educated but jobless.
Egypt, the most populous Arab country, has been hit by sectarian violence while also
facing a growing Islamist opposition.
While Mr Ben Ali has not only supported the United States and implemented free
market reforms, opposition activists complain that the only people to benefit have been
Mr Ben Ali's family and cronies.
"Whether it's cash, services, land, property, or yes, even your yacht, President Ben Ali's
family is rumoured to covet it and reportedly gets what it wants," said Robert Godec,
the ambassador.
Recent violence began after a young graduate, Mohamed Bouazizi, killed himself by
setting himself alight in the town of Sidi Bouzid last month. He had been forced to
become a fruit and vegetable seller through lack of work, but his stall was confiscated as
he did not have a licence.
After another young man killed himself by touching an electric cable while shouting
"no for misery, no for unemployment", youths took to the streets, smashing shops and
setting fire to cars. The protests spread across the country encouraged by Facebook sites
and Twitter accounts dedicated to the men's memory.
Youtube videos show young men tearing down some of the huge posters of Mr Ben Ali
that adorn public buildings and setting light to them.
Egypt, where President Hosni Mubarak has ruled for 30 years, Jordan and Saudi
Arabia, governed by monarchies, and Yemen, whose president has been in power since
1978, are all central to US policies in the Middle East. But they have also faced recent
protests from overwhelmingly young populations.
Lahcen Achy, an economist with the Carnegie Endowment, said Tunisia was a special
case because the high level of education it had given its young was at such odds with
the lack of political and economic opportunity.
But he said neighbours faced their own problems. "The risk for Egypt and other
countries might come from rising food prices," he said. "I think that all the governments
in the region are thinking about what kind of announcements to make. They will try to
make concessions before it is too late."
------------------
Tunisian president vows to slash food prices (Associated Press)
TUNIS, Tunisia — Tunisia's president has ordered prices on food staples slashed and
suggested he will not run for re-election after deadly riots that have rocked the North
African country.
President Zine El Abidine Ben Ali, in a televised speech Thursday night, pledged to end
Internet censorship and to open up the political playing field.
He said the 75-year age limit on presidential candidates should remain untouched. That
would mean Ben Ali, who is 74 and has ruled Tunisia with an iron fist for 23 years,
would not be able to run in 2014.
He spoke after nearly a month of protests that have left 23 dead according to official
figures, dozens more according to opposition figures.
------------------
Gulf of Guinea - Security Stakeholders Seek Cooperation in Tackling Piracy
(Cameroon Tribune)
Military and civilian experts are meeting in Yaounde to chart cooperative ways of
managing trans-border insecurity.
Military and civilian experts and security stakeholders from the Central African Sub-
region and United States of America (USA), are examining ways and means of
heightening cooperation to tackle the rising wave of air and maritime piracy, drug
trafficking, hostage-taking and other acts of insecurity in the Gulf of Guinea and the
entire Central African Sub-region. The reflection is within the framework of a three-day
workshop organised by the Cameroon Chapter of the Africa Center for Strategic Studies
and the United States of America Embassy in Yaounde.
The Secretary of State at the Ministry of Defence in charge of the National Gendarmerie,
Jean-Baptiste Bokam, while opening the Yaounde workshop said increasing security
threats in the Gulf of Guinea were of major concern to Cameroon government. He
represented the Defence Minister, Edgard Alain Mebe Ngo'o. The Secretary of State
called for total sub-regional, regional and international cooperation to fight the
cankerworm.
The Defence Attaché at the US Embassy in Yaounde, Lieutenant Colonel Scott Morgan
said the Cameroon chapter of the Africa Center for Strategic Studies (ACSS-Cameroon)
with about 40 civilian and military members, was one of the largest in Central and West
Africa. He cited the ways the Center has supported Cameroon, stating that its
Cameroon chapter was a strong and supportive audience that can help improve the
communication process between the U.S. Embassy, not only with the Ministry of
Defence but also with other government security stakeholders.
The three -day security workshop ends today at the Yaounde War College in Simbock.
Major themes being discussed include cooperative management of trans-border
resources in Central Africa; problems or solutions and maritime piracy in Africa with
focus on piracy in the Gulf of Guinea and the Gulf of Aden.
------------------
Carter says south Sudan independence vote valid (AFP)
JUBA, Sudan – Ex-US president Jimmy Carter, who is heading an observer mission for a
south Sudan independence vote, said Thursday that the 60 percent turnout threshhold
for it to be valid had been achieved.
"That criterion has already been reached so there is no doubt about the legitimacy of the
election as far as the number of voters is concerned," Carter told reporters.
"I think it will meet international standards both on the conduct of the vote and the
freedom of voters," he said, adding that he expected the same to be true of the count.
Souad Ibrahim, spokeswoman for the referendum commission also told AFP on
Thursday the 60 percent turnout has been met, and even surpassed.
------------------
Fears of military build-up in Sudan (Al Jazeera)
On the tarmac of an airfield in north Sudan, 100 miles from the proposed border with
the south, the governor of South Kordofan arrives back home in Kadugli, the state
capital.
He is Ahmed Haroun, self-proclaimed man of the people, wanted for rape, murder and
crimes against humanity - charges he dismisses out of hand.
"Later, later!" he exclaims as I shake hands and attempt to firm up our pre-arranged
interview. And then he's gone, a cloud of dust hanging above the road as his convoy
disappears into town.
So we head to the governor's compound and wait. Eventually his car sweeps in,
followed by his armed guards perched in the back of an open truck.
Another line of sweaty officials and beribboned military men and much laughing at
every Haroun humorous aside. The line ends and he turns towards us. Suddenly a
gaggle of implacable, slightly menacing intelligence men talk urgently with the
governor, gesturing towards us.
The usual requests for ID are made and despite all the officially signed paperwork and
permits we're carrying, it's my business cards that they want to keep.
"No, no, not possible," we're told. And away goes Ahmed Haroun. It can only get better.
Governor's garden
Late that night we get a call asking us to come first thing in the morning. So in the
parched, early light we're driving along the rutted streets, past the donkey carts and
packed beaten-up buses to set up our equipment in the slightly incongruous setting of
the governor's rose garden.
Sprinklers twitch away across green swathes, trees give voluminous shade and the
roses are blooming and red. We're ready and not that hopeful.
But suddenly the man himself emerges from breakfast, comes over and sits down.
We're on! He settles into his chair, sharp-suited and comfortable. I've read somewhere
of him being described as feline.
We principally wanted to put to Haroun allegations that the Sudanese army has been
contravening the Comprehensive Peace Agreement by mobilising weapons and soldiers
in large numbers along the border with the south.
"As head of state I can reconfirm we are not going back to war!" was the riposte.
"Any movements here and there are down to the state of uncertainty about the future,"
Haroun said.
Problems
The difficulty is that it's very hard to verify exactly what's going on. We could see for
ourselves a small amount of artillery in the state capital Kadugli - and heard from
people who'd seen convoys on the move and rumours of tribal groups receiving
weapons.
A few weeks ago, after a shooting incident in a nearby village, police uncovered a
surprisingly sophisticated weapons cache with heavy machineguns and two RPGs.
Haroun said he didn't have any information about tribal leaders being armed. I asked
about secret documents discovered by the Small Arms Survey with the heading:
"Arming The Tribes".
These were apparently top-level instructions for handing out arms to tribal leaders,
with issuing and receiving orders including one for 300 AK machine guns to be passed
on. They carried the signature and stamp of the defence minster and the army chief of
staff.
"If you are talking about these documents that have been exchanged in the last two
years, we have investigated these," the governor said.
"And I was part of the investigation team - it has been proven that all these documents
were fake. It is a propaganda war that is all. We proved they were fake."
War crimes
Al Jazeera: "South Kordofan is a very sensitive state – you have 49 counts of war crimes
issued against you by the ICC. Given that, is it right that you are in charge of South
Kordofan?"
Haroun: "It is a very comic play what is going on in the ICC. It is a comedy play
directed against Africans and Africa in general. It is neo-colonisation style towards
Africa and we don't believe in this comedy."
Al Jazeera: "So you are innocent? If you are, why don't you go to the Hague and prove
your innocence?"
Haroun: "It doesn't even deserve a response. The ICC doesn't deserve a reply. Who is it
that has the legality to call upon people and do this?"
Haroun: "The international community is a very broad phrase - it might mean the neo-
colonialism of Sudan? It's the same phrases always with the white man when the West
was for years calling Africa the Third World. Europe will remain Europe and Africa
will remain Africa."
The chances are Sudan will not remain Sudan, not as one anyway. Like many in the
north, Ahmed Haroun does not want separation but is adamant there will not be war.
As for the arms, well there are legitimate reasons why Sudanese President Omar al-
Bashir may want to bolster security here in South Kordofan. This could soon be part of
north Sudan's international border with the south after all. And these are uncertain
times.
The bottom line though is any violations of the peace agreement on either side can only
exacerbate the rising sense of tension.
------------------
Mobs in Ivory Coast Attack United Nations Vehicles (New York Times)
ABIDJAN, Ivory Coast — Mobs loyal to Laurent Gbagbo, the president who refuses to
give up power after losing an election, burned and stoned five United Nations vehicles
on Thursday, including an ambulance, a United Nations spokesman said.
The attacks appeared to represent an escalation of Mr. Gbagbo’s campaign against the
presence of nearly 10,000 United Nations troops here, assigned among other duties to
protect the government of the man who defeated the incumbent in last November’s
presidential election, Alassane Ouattara.
Mr. Gbagbo has demanded that the United Nations troops leave the country, the patrols
have been fired on by men in uniform, and the state television station nightly
broadcasts vitriolic attacks, asserting that the foreign troops are in league with rebel
forces that control the northern half of the country.
The latest attacks occurred at improvised checkpoints manned by local youths who
support Mr. Gbagbo, but the United Nations spokesman here said that some in the mob
included men wearing the uniforms of government security forces. Two of the vehicles
were burned, and three others were damaged, said the spokesman, Kenneth Blackman.
The crowd stoned the ambulance, injuring the head of the patient inside, he said.
Late Tuesday, a United Nations patrol was shot at in the Abobo neighborhood of
Abidjan from both sides of the road — “ambushed,” Mr. Blackman said — during a
Gbagbo security forces assault on the pro-Ouattara neighborhood. Some police officers
were also killed in the assault.
“The attack on the ambulance is a bit shocking,” Mr. Blackman said. “Even where there
is a war, no one targets ambulances. It goes against the principles of basic decency.”
In New York, the United Nations secretary general, Ban Ki-moon, strongly condemned
the latest attacks, saying they were “crimes under international law.”
Meanwhile, the United Nations human rights chief here reported “phenomena which
elsewhere resulted in genocide,” according to the mission’s account of its weekly news
conference in Abidjan. Among the “warning signs,” the United Nations said, were
“signs that weapons are being distributed to civilians.”
In Geneva, Reuters reported that the United Nations high commissioner for human
rights, Navi Pillay, expressed concern about the possible discovery of a new mass grave
in Ivory Coast. Two others have already been reported; as at previously reported sites,
government troops have blocked access by United Nations investigators.
------------------
Nigeria: Ruling party votes for primary candidate (Associated Press)
ABUJA, Nigeria — Delegates of Nigeria's ruling party began voting Thursday night to
pick its presidential candidate, choosing between honoring a power-sharing agreement
by selecting a Muslim or endorsing the oil-rich nation's current Christian leader.
Delegates of the People's Democratic Party began voting after the two men's speeches,
dropping marked ballots into see-through glass ballot boxes as observers from the
Nigeria's Independent National Electoral Commission looked on. Voting and tallying
was expected to continue into early Friday.
Outside of Eagle Square, federal ministries sat empty as security forces locked down
roads up to one mile (two kilometers) from the outdoor parade ground. Everyone
entering the square faced at least four security screenings, a sign the government
remains uneasy after recent bombings targeting the nation's capital, Abuja.
The choice between Jonathan and Abubakar highlights the religious and ethnic fault
lines running through Africa's most populous nation of 150 million people. Jonathan, a
Christian from the south, became president only after the death of Nigeria's elected
leader, a Muslim from the north who had only served one term. For that reason, some
within the party believe its presidential candidate should be another northerner.
Abubakar repeatedly brought up the arrangement, saying tossing it aside would cause
"lawless and anarchy" in a nation that suffered through a brutal civil war only 40 years
ago.
"Our word must be our bond," the former Customs officer said.
Abubakar hit Jonathan hardest over instability in the country. The violence ranges from
communal clashes that have killed more than 500 people over the last year in the
nation's fertile "Middle Belt," a resurgent radical Muslim sect in the country's northeast
and the militant violence that continues in the nation's oil-rich Niger Delta.
In the delta, an amnesty program started in 2009 to offer cash payments and promise
job training has frayed as attacks on foreign oil firms and kidnappings continue.
Abubakar called the amnesty program started while Jonathan served as vice president
"hopelessly mismanaged," allowing supposedly settled fighters to disappear back into
the region's winding creeks.
"We cannot afford to continue to tolerate this," Abubakar said. "When things happen in
this nation, there seems to be no one in charge."
The crowd, largely quiet as the sun set over Abuja, roared to life with some applause
from northern delegates and boos from those in the south over the comment.
Jonathan began his speech by calling for a moment of silence for late President Umaru
Yar'Adua, the northern he replaced. The move drew cheers from the crowd.
The president, dressed in the traditional black caftan and bowler hat of his Niger Delta
home, largely ignored Abubakar's attacks in his speech. Instead, Jonathan focused on
issues his young administration hopes to improve over the next four years. Top among
them is a plan to privatize the nation's decrepit state-run power company. As of now,
only those who can afford private generators have constant electricity.
He also mentioned the federal government's moves to end the gasoline lines that
chronically hit an OPEC nation that must import most of its refined gasoline. While the
lines are gone, the country still spends $4 billion a year to subsidize the industry and
keep gasoline prices artificially low.
"We have a chance to transform ourselves to be a great nation in the years ahead,"
Jonathan said.
He offered a promise that won a cheer from the crowd: "Goodluck Ebele Jonathan and
(Vice President) Nnmadi Sambo will never, never, never let you down."
Both candidates have their faults. Jonathan, often soft-spoken, appears indecisive in
crisis. Abubakar, who had a public falling out with the ruling party in 2007, remains
trailed by corruption allegations. Another minor candidate, Sarah Jubril, is also on the
party's ballot.
But whomever delegates decide on, that person likely will become Nigeria's president
after the April election. Since the hand over in 1999 from military rule to a civilian
government, Nigerian politics have been dominated by the People's Democratic Party.
The party's operatives have the political connections, money and muscle necessary to
control Nigeria's unruly and corrupt electoral system.
That power may already be at play. Allegations about delegates receiving bribes as
large as $33,000 for their vote circulated in the capital before the vote. Meanwhile,
nearly every newspaper drifting about the dusty capital bore front-page advertisements
saying "Jonathan will never let you down."
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A Continent of New Consumers Beckons (Wall Street Journal)
There's a new gold rush under way for the African consumer, a campaign that spans the
continent and aims to reach an emerging middle class. These are the people who have
begun to embrace cellphone messages, restaurant meals and trips down supermarket
aisles.
In Kenya, a battle between units of Britain's Vodafone Group PLC, and India's Bharti
Airtel Ltd. has driven down the consumer's cost of a text message to a penny. Yum
Brands Inc. of the U.S. recently said it wants to double its KFC outlets in the next few
years to 1,200.
And Wal-Mart Stores Inc. has agreed to pay nearly $2.5 billion to buy 51% of South
Africa's Massmart Holdings Ltd., with plans to use the discount retailer as a foothold
for continental expansion. Andy Bond, Wal-Mart's regional executive vice-president,
describes the potential as a "10- to 20-year play."
While Africa's resource wealth continues to lure the bulk of foreign investment, the rise
of that new consumer class is beginning to shift the balance. From 2000 to 2009, foreign
direct investment to Africa increased sixfold to $58.56 billion, according to the United
Nations Conference on Trade and Development. And that includes a sharp drop during
the global financial crisis, from $72.18 billion in 2008.
A growing percentage of foreign direct investment has been going to sectors such as
manufacturing and services, with the value of mergers and acquisitions in the
manufacturing sector hitting a record $16 billion in 2008.
While overall investment in Africa slowed in 2009 amid the global economic downturn,
investment in the services sector picked up, boosted by Vodafone's $2.4 billion increase
in its stake in South Africa's largest mobile-phone operator by subscribers.
High commodity prices have helped sustain robust expansion in Africa's resource-rich
economies. And with that, better infrastructure, improved governance and the creation
of jobs through private investment have helped drive the growth of the middle class.
The International Monetary Fund estimates that gross domestic product in the 47
countries of sub-Saharan Africa rose 5% last year and forecasts 5.5% growth for this
year.
But there's still a long way to go before Africa becomes the next Asia. Zimbabwe's
economy contracted by half from 2000 to 2008, a period of sustained political turmoil
for a country that once was the breadbasket of southern Africa. And cocoa producer
Ivory Coast is embroiled in the continent's latest election dispute, with two candidates
claiming to be president.
Poverty remains rampant. And Africa ranks at the bottom of the World Bank's Ease of
Doing Business survey, which takes into account such things as taxes, enforcing
contracts and protecting investors.
Many African governments are under pressure to create jobs, even if it requires giving
foreign companies a greater role in domestic economies.
That's a major hurdle for African governments still grappling with a colonial past. From
the 16th to the early 20th centuries, Africa was the source of an estimated 11 million
slaves in Europe and the Americas.
Trevor Manuel, the head of South Africa's planning commission, says the sometimes-
arbitrary boundaries set by former European colonial powers have disrupted efforts to
knit together economies even in places, like West Africa, where people share a common
language. "Rationally, we should be one market," says the former finance minister.
A study last year on West African transportation by the U.S. Agency for International
Development found that Togo had 5.7 checkpoints per 100 kilometers, at which a total
of $25.62 in bribes were demanded resulting in more than two hours of delays. In
neighboring Benin, the checkpoint waits weren't as long but truck drivers had to pay
about $95.03 in bribes per 100 kilometers.
Later: how African entrepreneurs are capitalizing on growing demand for used
American cars in Nigeria, where young professionals want to avoid perilous public
buses.
As a result, some veteran Africa watchers are skeptical about how quickly a bet on the
continent's consumer will pay off.
"Where is the money tree? Where is this consumer fruit?" asks Duncan Clarke, chairman
of Global Pacific & Partners, an investment advisory firm specializing in oil and gas.
In the near term, Mr. Clarke and others believe Africa's most promising opportunities
won't be found in its new shopping malls but beneath its soil and sea beds, where big
oil and global miners have long toiled.
Many consumer giants are more sanguine. Drinks company Diageo PLC sells Guinness
stout, Smirnoff vodka, Baileys liqueur and Johnnie Walker whiskey in more than 40
countries across Africa. Chocolate maker Nestlé SA, which built its first plant in Africa
in 1927, has more than two dozen factories on the continent.
The growth has drawn back the Ethiopian diaspora, who had fled the famine-prone
country. They are returning now with expertise and capital.
"I do believe we are on the cusp of a major transformation," says Eleni Gabre-Madhin, a
former World Bank official who now heads Ethiopia's first commodities exchange.
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UN News Service Africa Briefs
Full Articles on UN Website
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