Tag Archives: Africa

Merging the Public-Private Gap

Later this week, together with the Institute of Economic Affairs (IEA-Ghana) we are holding a West  Africa regional forum on the impact of the financial crisis on countries in the region and policy responses.  In anticipation of the main conference, which will bring together as many as 100 public and private participants from Ghana, Togo, Mali, Senegal, and Nigeria we are holding a small public-private advocacy session to establish a common understanding of advocacy and discuss concrete reform priorities.

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50 Things You Don’t Know About Africa

Some things I didn’t know about Africa:
  • South Africa has 924 mobile phones per 1000 people; Eritrea has 22 per 1000 people.
  • The highest connection charge for a business phone is $366.6 in Benin; the lowest is in Ghana at $0.7.
  • In Sierra Leone 3 persons per 1,000 are Internet users
  • For the period 2007, Zimbabwe has the highest adult literacy rate (91.2 percent); Mali and Burkina Faso have the lowest (28.7 percent)
  • Cape Verde receives the highest net ODA per capita ($438.2); Nigeria receives the lowest ($9.5).

See all 50 things you don’t know about Africa on the World Bank website.

Quiet Corruption

“Quiet corruption” – the failure of public servants to deliver goods or services paid for by governments – is pervasive and widespread across Africa and is having a disproportionate effect on the poor, with long-term consequences for development, according to a new report from the World Bank.

This is according to the World Bank’s newly released Africa Development Indicators. Read more in the press release on the World Bank website or check out the report itself.

Overall, the report is interesting in that it shows that corruption is not just about bribery (exchange of money in brown envelopes), its much more complex than that. Report visual – “quiet corruption” as the bottom [larger] part of the iceberg hidden below the water level.

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Resource Curse in Action

There are many ways of making money. One of them is rigging the system in your own favor. The son of Equatorial Guinea’s ruler has perfected the approach in his own back yard.

…the president’s son and agriculture minister has transferred at least $73m (£44m)into America to pay for a $35m Malibu mansion and private jet. Teodoro Obiang Nguema junior is said to have imposed a tax on timber payable not to the national treasury but directly to him.

Oil has certainly fueled economic growth in the country and in GDP per capita terms the country is one of the richest in the world (more than $30,000 according to the World Bank which is higher than Spain, Italy, Greece, South Korea and others.)

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Tea time in Kenya

When it comes to global agriculture, you can taste a hint of the African continent’s powerhouse potential in every sip of tea. Kenya is the world’s largest producer of black tea; through its port city of Mombasa flow Kenya’s and almost all the rest of East Africa’s tea. Mombasa’s vast dominance of worldwide tea exports puts it on par with the New York City Mercantile Exchange, Chicago’s Board of Trade, or London’s Metal Exchange. It’s a place where global benchmark prices are set. Kenya’s resilience as a global market for tea is reflected in the fact that even in today’s global recession Kenya’s tea growers were able to capture record revenue for their crops.

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Knowing is half the battle

When it comes to Nigeria’s vast informal sector, Nigerian public officials can be astonishingly candid. The executive director of the Nigerian Export Promotion Council (NEPC), David Adelugba, said at a recent press conference that most of the Nigerian products sold outside the country are not officially exported out of the country.

“Most of the trade done in the export sector are done through the informal means and this affects the level of development in the sector because the government does not have a record to know how the sector is thriving and how much it can contribute to the nation’s development,” Mr. Adelugba said. (“The numbers don’t add up,” 234Next.com, October 21, 2009)

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Exporting Bribery

A few years ago, while in Tanzania, I was interested to hear (from journalists that come from various countries in East Africa) that one of the main reasons for widespread corruption in Africa is the international community – both multilateral development agencies and multinational corporations.  At the same time some lauded the efforts of Chinese companies that were quite active in a variety of infrastructure projects.

Perceptions matter.  But they can also be misleading.

According to the latest Bribe Payers Index, developed by Transparency International, out of major global economies, companies from BRIC countries and Mexico are most likely to bribe when engaging in business operations in other countries.

In revealing that companies from Russia, China, and India are the bottom feeders of the Bribe Payers Index, TI report also highlights the evident lack of knowledge of the OECD Anti-Bribery convention in many of the OECD companies (at the senior executive level).  Still, despite the implementation gaps, the OECD countries and companies have made notable progress in becoming more transparent over the past few years, while companies from Russia, China, and India have much work to do to catch up.  Their countries’ signing of the OEC anti-bribery convention can certainly help in bringing more transparency to business operations.

Back to Tanzania and its neighbors.  Earlier this year, Chinese President went on small tour of East Africa, touting new aid packages and investments.  While such capital infusions are tempting, especially as the booming trade between China and African countries is helping the continent weather the economic storm, African governments, business community, and citizens more broadly must not forget of the strings attached – bribery that comes with it.  And, considering all the long term developmental costs of corruption that African countries know first hand, such bribery is something to worry about.