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Exploring China’s Role in Fighting Poverty and Food Insecurity in Guinea-Bissau

February 26, 2021 | by Oluwafolajimi Adesanya

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Members of the Campossa Rice Farmers' Association meeting with the Chinese experts of the Sino-Guinea-Bissau ATCP/ File source: UNDP

Since 1998, the Chinese government has partnered with the Guinea-Bissau Ministry of Agriculture and Rural Development to implement the Sino-Guinea-Bissau Agricultural Technical Cooperation Project (ATCP).

Operating in two-year implementation phases, the overarching objective of this intervention was to strengthen agricultural development cooperation between these two countries, with China sharing its rice cultivation expertise and technology with local rice farmers in Guinea-Bissau, to grow the country’s technical capacity for rice production and increase its overall rice output.

Years of prioritizing cashew nut production, which brings in around 70% of foreign income, at the expense of food production had left as many as 51% of Guinea-Bissau households food insecure, according to the World Food Programme.

A counter-intuitive scenario developed where most of the annual foreign exchange obtained from cashew nut exports, was spent on rice imports. Recognizing this contradiction, the Guinea-Bissau government made local rice cultivation a priority in 2005.

Chinese Follow Bottom-Up Approach

Now in its tenth successive implementation phase, using a bottom-up approach with a strong focus on technical capacity building, local needs and grassroots engagement with local rice farmers, the Sino-Guinea-Bissau Agricultural Technical Cooperation Project (ATCP) has achieved immense success in increasing rice cultivation yield and income levels of rural rice farmers, while promoting food security, according to a 2018 external impact assessment of the program by the United Nations Development Programme (UNDP).

Through the Sino-Guinea-Bissau ATCP, local farmers in the Bafata, Gabu, and Oio regions receive rice cultivation training into improved rice cultivation practices, pest prevention, and knowledge of soil types and fertilizer use.

Crucially, this training includes the operation, maintenance, and repair of the agricultural machinery previously unavailable to these farmers, which are made available for the farmers’ use within designated demonstration fields. Its strong emphasis on technical capacity improvement has been noted as a feature of the program’s success.

Farmers report having unrestricted support from and access to the 15 Chinese experts resident in their communities during each two-year implementation phase of the program.

“Whenever we had questions or ran into challenges, they [the Chinese experts] were always willing and able to help put us through, even when it was late in the night, if we called, they always answered,” says Mr. Tino Mafaturi, a member of the Campossa Farmers’ Rice Association in the Bafata region, a farmer’s association in existence before the launch of the ACTP and one of the beneficiaries of its technical capacity building. It is not funded by the ATCP.

He continues: “We have had many people come to help us in the past, but while they just give us seeds and go, the Chinese are different. They truly have become one of us.”

New High-Yielding Rice Variety Born From the Partnership

Moreover, Chinese rice experts work with the local farmers to breed improved rice varieties that are high-yielding and disease-resistant, and an improved rice variety called the Sabe-12 was released in 2013. This unique variety has a maximum yield of 7.2 tons/hectare, which is more than ten times the yield of the local rice varieties.

Sabe-12 seeds are purchased by the Guinea-Bissau Ministry of Agriculture and since 2013 distributed for free to rice farmers across the country. The government hopes that with this, Guinea-Bissau will surpass the initial goal of becoming a self-sufficient rice producer, to being an exporter of rice to neighboring countries.

The Sabe-12 seeds are already exported to several other West African countries like Senegal, Guinea, and Cape Verde, bringing in much-needed foreign revenue, which the government uses to finance its free distribution of the Sabe-12 seeds to local farmers domestically.

Locally grown rice now fills the markets

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Sabe-12 rice fields in the Bafata region/ File source: UNDP

Ms. Maria Fatima, the executive member of the Campossa Farmers’ Rice Association, says: “Imported rice is no longer sold in many of our local markets since we started planting Sabe-12. You still find them in the urban markets, though, especially for the rich people. We produce enough rice to eat and sell now.”

In ‘Achievements and Experience of China’s Agricultural Assistance’, the UNDP reports an almost 50% increase in average rice yield, as well as a 54% increase in average total rice output by local farmers who received and applied training from the China-Guinea-Bissau ATCP and grow the Sabe-12 rice variety.

“They have become one of us”

Maria Fatima, a founding member of the Campossa Rice Farmers’ Association in the Bafata region, calls the Guinea-Bissau ATCP “a blessing to our community”.

The program has catalyzed the growth of the association, she says, from “a small group of fewer than 100 farmers working on 20 hectares of land, to becoming the largest farmer’s association in Guinea-Bissau, with 180 hectares of farmland and over 500 members, 95% of which are women.”

She explains that prior to the arrival of Chinese experts, “I owned 0.25 hectares of farmland and produced about 600kg/hectare of rice in a good season. Since they came with their tools and machines, I have grown my farm to over 6 hectares, producing 5 tons/hectare of rice per season. I make enough money to sustain myself and sent two of my children to school abroad.”

The UNDP also notes a 34% increase in average monthly income of local farmers who had participated in the Sino-Guinea-Bissau ACTP training, and in the UNDP’s assessment of the Sino-Guinea-Bissau ATCP, Rui Nené Djata, formerly Guinea-Bissau minister of agriculture, is quoted as saying: “The Guinea-Bissau ATCP has helped train local agricultural technical personnel, improved the enthusiasm of local farmers for rice production and increased their income”.

He further states: “The ATCP has effectively met the country’s agricultural development needs, especially for the rice industry.”

Being intentional about adapting to local needs

The success of the Sino-Guinea-Bissau ATCP has been linked to its strong emphasis on technical capacity improvement as opposed to merely providing funding or infrastructural support. This has driven the self-development of the agricultural sector by stimulating interest in rice cultivation among previously demotivated local rice farmers.

This, coupled with visible rewards in increasing yield and income level of participating farming communities, has encouraged widespread participation by the local farmers and promotes their willingness to cooperate with the Chinese trainers.

A visitor is struck by the deep appreciation the local farmers have developed for their Chinese trainers, who have been intentional about adapting their activities to fit the local context and farming conditions, even going beyond the scope of their activities to help the Guinea-Bissau government draft its Agriculture Development Plan. This won the Chinese team the 2008 Championship for Good Progress in Science and Technology Award from the Guinea-Bissau government.

According to World Bank figures, the gross national income (GNI) per capita of Guinea-Bissau has risen steadily since 1998 when it was about $150, to its current value of $820. It is interesting to note that this rise coincides with the onset of implementation of the Sino-Guinea-Bissau ATCP.

The China-Guinea-Bissau ATCP deserves to be recognised as a model for effective Sino-Africa and even South-South agricultural development cooperation.

Oluwafolajimi Adesanya is currently an infectious diseases research associate at the Institute for Advanced Medical Research and Training, University of Ibadan

Exploring China’s Role in Fighting Poverty and Food Insecurity in Guinea-Bissau
 

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Once finished, the almost 400-metre-high Iconic Tower, construction on which began in February 2019, will be the tallest building in Africa

Ahram Online , Wednesday 24 Feb 2021

Egypt's Housing Minister Assam El-Gazzar announced that 60 floors of the 78-floor Iconic Tower in the Central Business District (CBD) in Egypt's New Administrative Capital have been constructed so far, a statement by the ministry said on Wednesday.

Once finished, the almost 400-metre-high Iconic Tower will be the tallest building in Africa, El-Gazzar said.

Work on the tower officially began in May 2018 with the digging of the land for the tower, while construction of the building itself started in February 2019.

The CBD, which will be home to 20 towers, is being built in cooperation between the Ministry of Housing, represented by the New Urban Communities Authority, and the China State Construction Engineering Corporation (CSCEC), one of the largest construction companies in the world.




El-Gazzar explained in Wednesday's statement that the investments in the CBD project are estimated at $3 billion.

In an earlier statement, El-Gazzar said "the CBD project is one of the largest projects undertaken by the Egyptian Ministry of Housing and Urban Communities, which would be a milestone for Egypt-China cooperation and a starting point for many cooperation projects between the two countries."

The 700-square-kilometre New Administrative Capital, located 60km from Cairo in the area between the Cairo-Suez and Cairo-Ain Sokhna roads, was launched in 2015 by President Abdel-Fattah El-Sisi and is set to house 6.5 million people.

The government had planned to relocate ministries and 52,300 government employees to the new capital by mid-2020, but the coronavirus pandemic forced it to delay the move till mid-2021. In April, El-Sisi instructed the government to reschedule the inauguration of all national mega-projects planned for last year, including the new capital and the Grand Egyptian Museum.

On 8 February, the housing ministry signed an agreement via video conference with the CSCEC, which has been working in Egypt for more than 30 years, to build Egypt’s New Alamein Downtown Towers Project.

According to a statement by CSCEC, the Alamein Downtown Towers Project includes one high-rise apartment building of about 300 metres and four high-rise apartment buildings of about 200 metres, in addition to commercial district facilities, with a total construction area of about 1.1 million square metres.

The New Alamein and the New Administrative Capital cities are two of 14 Fourth Generation Cities that are being constructed in Egypt.

According to the Ministry of Housing, such smart cities will be serviced electronically, in line with Egypt’s Vision 2030. Sustainable development standards are being applied in their construction: renewable and recyclable materials are being used, reducing energy consumption and waste and protecting the environment.

“Building fourth generation cities is not a luxury but is essential to help disperse the large population and double the country’s inhabitable area instead of overcrowding the Nile Valley and Delta,” Prime Minister Mostafa Madbouly said earlier.

In Video: 60 floors of Egypt's New Administrative Capital's Iconic Tower completed so far- Minister
 

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Ugandan auto firm aims to start producing buses this year

MARCH 2, 2021 / 7:46 AM / UPDATED A DAY AGO
By Elias Biryabarema


KAMPALA (Reuters) - Ugandan state auto firm Kiira Motors Corporation says it will commence producing buses by July and aims to put out 1,030 units this year, as it moves to enter a market now served by big players like Isuzu, Man and Taata.

The east African country hopes to ride on the publicly-owned KMC to compete with neighbours including Kenya and Rwanda to build domestic auto industries and grab a share of growing demand for new vehicles in the region.

“We are targeting July this year,” said KMC Chief Executive Officer Paul Isaac Musasizi in an interview, referring to intended vehicle production.

“We have had discussions with business partners, we are now looking at 1,030 buses by the end of this year.”

KMC, founded out of engineering projects by students at Makerere University, has been researching solar, electric and other vehicle models. The bus will be its first commercial product.

It currently operates on a $40 million government grant, but hopes to sell shares to private equity investors once production starts. The firm aims to produce both electric and diesel-powered versions of the 47-seater Kayoola Couch bus, Musasizi said.

When fully charged, the electric version will be able to go 300 kilometres before the battery needs a recharge.

CHINESE INPUT

China’s state-owned China Hi-Tech Group Corporation (CHTC) has been providing support via technology sharing and skills training, he said.

Musasizi said they expected to produce 30,000 buses in total by 2030, all at a sprawling plant being completed in Jinja, an industrial city in Uganda’s east.

Currently the bus market in the country is mostly served by the Isuzu, Scania, Man, Yutong and Taata brands. Musasizi said KMC would strive to become a local manufacturing partner rather than compete with those global players.

“We are setting up a state of the art infrastructure plant here, we are inviting them (competitors) to come and we contract-manufacture for them to serve this market and even regional markets.”

Car manufacturing efforts in the region have long been hobbled by imports of cheaper secondhand cars mainly from Asia. New vehicle sales in East Africa average less than 15,000 out of a total of 200,000 sold annually.

But some global giants like German car maker Volkswagen have set up local assembly plants, hoping to produce cheaper versions of their vehicles and boost sales in the region.

Reporting by Elias Biryabarema; Editing by Andrew Cawthorne

Ugandan auto firm aims to start producing buses this year
 

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The politics of blessings

By Yotam Gidron
02.19.2021


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Photo by John Price on Unsplash.

Over the past decade, support from Western Christian groups have become an increasingly dominant force in Israel’s relationships with Africa.

On a sunny morning in early January 2016, a motorboat was making its way through Lake Victoria to Bussi, a small island situated a few kilometers west of Entebbe. On board were two foreign visitors: Deputy Ambassador Nadav Peldman from the Israeli embassy in Kenya, and Jos van Westing, the Fundraising and Development manager of the Evangelical Zionist organization Christians for Israel International. The two were traveling to Bussi to attend a five-day “repentance conference” for officers of the Uganda People’s Defense Force (UPDF), organized by Christians for Israel’s Ugandan branch.

Christians for Israel’s office in Uganda was established in 2009 by Drake Kanaabo, a known evangelist from one of the most popular and oldest Pentecostal churches in Uganda, the Redeemed of the Lord Evangelistic Church. The organization’s offices are conveniently located in central Kampala, close to the Ugandan Parliament, and its members have been participating on a regular basis in “prayer breakfasts” in this institution and organizing various outreach events among Ugandan churches, government officials, and political elites. They also run pilgrimage tours to the Holy Land and host Israeli Independence Day celebrations.

The 2016 conference in Bussi was organized by Kanaabo in cooperation with several high-ranking UPDF officers. It brought together more than 150 Christian military men who gathered to pray and fast in order to repent, as members of the Ugandan military, for their country’s mistreatment of Israel during the period of Idi Amin’s rule. “These people, when they knelt down to confess, all of them burst into tears,” one volunteer of Christians for Israel later described the event, in which the officers pleaded with Peldman to forgive Uganda on behalf of the Jewish Nation. “It was historical. And we believe God forgave us, forgave our military.”

There is a long history of Western Evangelical support of Zionism and Israel, particularly, since the 1970s, from Christian groups in the US. Over the past decade, such support has become an increasingly dominant force in Israel’s relationships with African leaders and peoples as well. The Evangelical theological justifications for support of Israel mean little to Jewish Israelis, and Israeli diplomats also often stress the importance of establishing Israel’s image in Africa as a modern, tech-savvy nation and not only as the ancient Holy Land many Africans know from the Bible. And yet the pro-Israel messages Evangelicals promote, their suspicion of Islam, their urge to express unconditional support of Israeli policies, and their expanding influence on public life in many parts of Africa render them invaluable allies of the Jewish state.

Support for Israel comes from various Christian movements in Africa, but the most dominant among them are the Pentecostal (or “neo-charismatic”) churches that have emerged in West Africa since the 1980s and have gained immense popularity across the continent, influencing the doctrines and practices of other denominations as well. Supporting the spread of Evangelical Zionist theologies among these churches, however, are also a host of foreign groups. The Africa‒Israel Initiative, a Norwegian organization that seeks to create “a highway of blessings from Israel to Africa and from Africa to Israel,” is one of them. Christians United for Israel (CUFI)—America’s largest Christian pro-Israel lobby—is another.

Although Christian Zionist theologies and practices vary widely, the fascination of different conservative Evangelical groups with the Jewish People and Israel is commonly grounded in their literal interpretation of the Bible. Most fundamentally, Christian Zionists reject what they call “replacement theology,” that is, the notion that the Jews have lost their significance as God’s chosen after rejecting the messiahship of Jesus and were “replaced” by the church. This interpretation of the New Testament has been propagated by Catholic, Orthodox, and Protestant churches for centuries. But a close reading of the scriptures, many Evangelicals argue, indicates that it is false. God’s covenant with the people of Israel is still valid.

This conviction has several implications of political significance. One is that whoever “blesses” the Jewish people—and by implication, the modern state of Israel—is believed to be rewarded with divine blessings. This is based on God’s promise to Abraham in Genesis 12:3 to bless whoever blesses him and curse whoever curses him. Another implication of the rejection of “replacement theology” is that the Jews are understood to have a central role to play in bringing about the end times and the Millennial Kingdom. Evangelicals thus often view Israel’s wealth, military prowess, and developmental achievements as clear indications of blessings and righteousness, and its ongoing conflicts as the fulfilment of biblical prophesies.

There are good reasons, therefore, that African Pentecostal churches have found Christian Zionist theologies persuasive and appealing. The notion that pro-Israel activism can have positive consequences resonates strongly with the Pentecostal emphasis on healing, entrepreneurship, prosperity, and the favorable powers of the Holy Spirit. The rejection of mainstream “replacement theology”—portrayed as a misleading doctrine implanted in people’s minds by foreign missionary churches—similarly resonates with the born-again concern with biblical authenticity. For spiritual movements relentlessly preoccupied with the uncovering of falsities and the clearing of doubts, the state of Israel is increasingly becoming an undisputed index of divine truth and revelation.

These trends, of course, have not gone unnoticed in Jerusalem. “We are interested in ties with any religious, ethnic and political group, and it doesn’t matter whether it is Muslim, Evangelical or Catholic or anything else,” Gideon Behar, previously the head of the Africa Bureau at the Israeli Ministry of Foreign Affairs, explained. “But the fact that there are Evangelical communities that are becoming larger and stronger everywhere in Africa… these communities naturally have a stronger connection with Israel, and a stronger urge to have links with us, and they are certainly a factor that is increasingly encouraging African countries to strengthen their ties with Israel.”

Consider, for example, Nigeria—the epicenter of Africa’s “Pentecostal revolution.” Members of Nigeria’s Pentecostal elite, such as Chris Oyakhilome, TB Joshua, and Enoch Adeboye— celebrity preachers with a high-profile media presence, representing churches with branches across the world and influencing millions of believers—have visited the Holy Land in recent years. Some returned, multiple times, accompanied by hundreds of pilgrims, regularly sharing impressive footage from their trips on social media and their popular TV channels. Prophet TB Joshua, founder of the Synagogue Church of All Nations in Lagos, was recently named “Tourism Goodwill Ambassador” by the Israeli Minister of Tourism after holding a two-day mass prayer event in Nazareth.

Zionist rhetoric is prevalent in these circles, and hence the warm welcome from Israeli officials. “The problems that we are seeing between the Jews and the rest of the world, is because they are the favorites of God,” Nigerian mega-pastor Enoch Adeboye of the Redeemed Christian Church of God explained in 2011 while visiting Israeli settlements in the Occupied Palestinian Territories. “When you are special to God, then automatically the devil wouldn’t like you either.” In line with the imperative to bless Israel, in his regular pilgrimage tours to Israel in recent years, Adeboye also donated several ambulances to the Israeli national emergency service and disaster recovery organizations.

Pentecostal elites like Adeboye, as Ebenezer Obadare shows, are powerful actors in the country’s political landscape. President Goodluck Jonathan (2010‒2015), a Christian from the country’s south-east, “wore his supposed Christian and Pentecostalist credentials on his sleeve” and strategically courted the nation’s most influential Pentecostal pastors and tapped into their powerful public influence. Among other things, he repeatedly visited Israel on pilgrimage tours—once as vice-president in 2007 and then twice during his presidency—each time traveling with an entourage of high-profile officials and pastors. In 2014, months before the elections that he eventually lost, he visited Israel accompanied by Bishop David Oyedepo, the founder of one of Africa’s largest Pentecostal movements, Winners’ Chapel.

As part of Jonathan’s branding of himself as Nigeria’s Pentecostal president, pilgrimage tours doubled as friendly formal visits and relations with Israel improved. To Israel’s benefit, Nigeria was a non-permanent member of the UN Security Council in 2014‒2015. In December 2014, when the council voted on a resolution calling for Israel to withdraw from the Occupied Palestinian Territories within three years, Nigeria (with Rwanda) abstained, though reportedly only after a last-minute personal phone call from Netanyahu to Jonathan. The abstention surprised many observers and allowed the US to avoid using its veto power.
 

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A similar manifestation of the politics of blessings can be identified in Ghana. Though an Israeli embassy was only opened in Accra in 2011, ties between Israeli businesses and Ghanaian Evangelicals had developed earlier. Since its re-establishment, the Israeli embassy openly supported the activities of the local branch of the Africa‒Israel Initiative, hosted its leaders at the ambassador’s residency, participated in their religious conferences and in recent years even organized its own prayer events. A regular attendee of the Israeli embassy’s events is Archbishop Nicolas Duncan-Williams, the founder of the Christian Action Faith Ministries and one of the most influential religious figures in Africa.

As faith-based organizations increasingly extend their spiritual and material influence into spheres that are commonly perceived as “secular”—electoral politics, business, education, popular culture—their impact on Israel’s standing is multi-layered. “Our main objective as an embassy of the State of Israel is to strengthen the ties between Israel and Ghana. And we do this on three levels: … government-to-government … business-to-business … and people-to-people,” Shani Cooper-Zubida, Israel’s ambassador to Ghana, explained. “These churches are integrated in all three fields.” Not only do they influence the media, public opinion, and governments, but they are also important economic actors. Indeed, Archbishop Duncan-Williams is also the “Patron” of the Ghana‒Israel Business Chamber, inaugurated in 2016.

Ghana, Nigeria, and Uganda are not the only examples of such dynamics. The more public life and politics take an explicitly Pentecostal tone, across Africa, the more frequent such engagements become. Under the leadership of Lazarus Chakwera, an Evangelical Christian and former pastor, Malawi recently announced its intention to open an embassy in Jerusalem. In March 2020, Democratic Republic of Congo President Felix Tshisekedi, addressing the pro-Israel lobby AIPAC and his “Evangelical Christian brothers and sisters” in Washington, promised to open an embassy to Israel with an economic section in Jerusalem as well. “I want to build strong connections with Israel and an alliance in which my country will be a blessing for the nation of Israel, in accordance with the promise of the Almighty God,” Tshisekedi explained, citing Genesis 12:3.

In South Africa, meanwhile, Israel and the local South African Zionist Federation (SAZF) have long partnered with a host of born-again groups as well as the older Zion Christian Church (ZCC) to counter the pro-Palestinian stance of political leaders and curb popular support for the Boycott, Divestment and Sanctions movement. “Help us push back this scourge and this obsession that has captured the ruling party,” SAZF chair Ben Swartz passionately pleaded with the attendees of a 2018 pro-Israel conference organized in Johannesburg in cooperation with the Israeli Ministry of Strategic Affairs. “For we do not wish to bring upon us the curse associated with these actions. We wish to bring upon South Africa the blessings that South Africa so rightfully deserves.”

It is important to see these discourses and dynamics within a broader context. From Ghana, through Nigeria, Zambia, Uganda, Kenya, and all the way to Ethiopia, the rise of born-again Christianity in recent decades has transformed not only Africa’s religious landscape but also its politics. The aesthetics, truth claims, and practices associated with this faith are altering the very nature of citizenship, statehood, political action, and public life in many parts of the continent. The embracing of Christian Zionist theologies and the impact of these theologies on Israel’s standing in Africa are only some of the secondary consequences of this process, but they testify well for the anxieties and hopes that underly it, the multiple transnational actors and forces that shape its course, and its potential implications.

Israel and its supporters around the world are clearly grateful for these developments. For now, the Evangelical politics of blessings help legitimize apartheid and further suppress calls for accountability, justice, and democratization in Israel-Palestine. But the rise of born-again Christianity is ultimately entangled in much wider epistemological crises and political trends, which might be acutely felt in Africa but are hardly limited to it. Critics who hope to meaningfully intervene in the conversation will need to appreciate, at the very least, not only the changing circumstances, but also the new ways of knowing, speaking, and acting that are commanded by the Spirit.

The politics of blessings
 

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When Special Drawing Rights Aren’t So Special

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Mar 1, 2021 | HANNAH WANJIE RYDER, GYUDE MOORE

Since the International Monetary Fund already has the ability to inject liquidity into the global economy through its reserve asset, special drawing rights, it is understandable that many would advocate the use of this mechanism to help struggling developing economies. But in their current form, SDR allocations leave much to be desired.

BEIJING – With the arrival of US President Joe Biden’s administration, calls for a fresh allocation of special drawing rights (SDRs), the International Monetary Fund’s reserve assets, have gained new momentum. Yet while such proposals are supposedly geared toward assisting developing countries hit hard by the COVID-19 pandemic, SDRs are allocated according to a country’s IMF quota and voting share, rather than its needs. As such, the vast majority of any new allocation would go to wealthy countries.

This was fine in September 2009, when the IMF sought to mitigate the fallout from the 2008 financial crisis by issuing $117 billion in SDRs. That crisis had hit wealthy countries particularly hard, and it was those economies that rightly benefited the most from the additional liquidity. But now that poorer countries are bearing the brunt of the economic crisis, the calculus has changed.

There is a strong economic and humanitarian rationale for supporting poor countries. Consider Africa, where 33 of the continent’s 55 countries are classified as least developed. Although the continent has borne a relatively small disease burden – accounting for under 5% of recorded cases and deaths in 2020 – it has suffered disproportionally in economic terms.

Overall, African countries had to put aside a total $68 billion to respond to the public-health crisis in 2020. They spent, on average, 2.6% of GDP supporting trade, tourism, and other hard-hit industries, and helping an estimated 175 million vulnerable people survive lockdowns. That translates into just $49 per person, compared to per capita support of $3,900 in the G20.

Under these conditions, would a new SDR allocation offer African countries a way out? In a recent joint commentary, four European leaders, the United Nations secretary-general, and the president of Senegal argue that it would. Other commentators have made specific proposals for allocations ranging from $500 billion to $2 trillion – all considerably larger than the 2009 package. But one common feature of all these proposals is that they downplay the question of how new SDRs would be distributed.

If one runs the numbers, one finds that Africa’s 55 countries would be allocated just 7% of the total. Within this sliver, South Africa would receive 14%, while smaller countries such as São Tomé and Príncipe would receive just 0.05%. In other words, a new $500 billion SDR issuance would raise just $35 billion for the entire African continent – around half of what African governments spent in 2020, let alone need to spend in the coming year.

Even before the pandemic, African countries needed external support to close a $68-108 billion annual infrastructure investment gap, and to provide basic needs such as electricity. In the post-pandemic period, African governments will need to invest even more in expanded digital access, climate resilience, and green growth. Given these needs, a standard SDR allocation will not be nearly enough to alleviate Africa’s current plight.

Most proponents of a new SDR allocation recognize these limitations, but their solution is to redistribute SDRs after the fact. One popular suggestion calls for rich countries to “donate” their allocations back to the IMF, which could then lend to qualifying poorer countries on a case-by-case basis.

But it is not clear that this would ensure optimal redistribution, which is what really matters. The failure to ensure equitable global access to COVID-19 vaccines illustrates the deficiencies of raising money first and worrying about distribution later. The COVID-19 Vaccine Global Access (COVAX) mechanism was created in April 2020 with an initial funding target of $2 billion, which has now been met. Yet while 47 African countries are eligible for COVAX support, 25 still have not been able to secure any vaccine orders. Moreover, COVAX has so far provided for just 14% of all African vaccine orders, the same percentage that has been procured through an African Union mechanism created in January this year.

Clearly, distribution cannot be a secondary issue. But maldistribution is not the only risk associated with a standard SDR allocation. Some policymakers see an opportunity to condition reallocated SDRs on developing countries’ introduction of otherwise unpalatable domestic economic reforms such as tax cuts or privatization. The problem with this approach should be well known by now. The IMF and the World Bank attached such strings to economic rescue packages (“structural adjustment programs”) throughout the 1980s and 1990s, and the vast majority of recipient countries ended up in even deeper poverty.

Ever since SDRs were created in 1969, there have been proposals to allocate them disproportionately to poorer countries as a form of development finance. It is now time to pursue this idea in earnest. To ensure that any new issue of SDRs is truly in the developing world’s interests, it should be accompanied by a transparent redistribution plan up front.

There are many ideas for how this could work. Our own proposal is that all countries agree now to redirect at least 25% of their new SDRs – the equivalent of $125 billion for a $500 billion allocation – to a new special purpose vehicle through which developing countries make disbursements to each other based on need, and if necessary, with the IMF or World Bank serving as trustee (as is done with the Green Climate Fund). This would ensure that larger sums go to poorer countries, and that the richest countries make the largest relative contributions. Equally important, it would limit the degree to which paternalistic conditions could be imposed.

Whatever happens, Africans like us must shape the agenda to safeguard our own long-term interests. Africa commands more than 50 votes in UN institutions, and 17% of the world’s population. That should count for something.

When Special Drawing Rights Aren’t So Special
 

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Jumia targets Ethiopia, DRC and Angola despite mixed 2020 results

By Quentin Velluet
Posted on Tuesday, 9 March 2021 08:32


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In a Jumia warehouse in Lagos, Nigeria © REUTERS / Akintunde Akinleye

The African e-commerce platform is on a new trajectory. Despite posting mixed fortunes in 2020, its founders now wish to launch it in the DRC, Ethiopia and Angola, three reputedly difficult markets.

“We hope one day that we will have achieved enough […] milestones to put the issue of profitability behind us.”

Sacha Poignonnec appeared to be extremely anxious on 24 February 2021, the day Jumia’s results for the 2019-2020 financial year were announced. As he expressed this wish, was he thinking of Amazon – with which Jumia is often compared – which only became profitable eight years after it was founded in 1997?

Mixed results

Nine years after its birth, Jumia, launched by Poignonnec and Jérémy Hodara, has still not found its equilibrium point. And it is posting mixed results for 2020 – a very good year for global e-commerce.

READ MORE Analysts sceptical of Citron claims on Alibaba investment in Jumia

The platform present in 11 countries recorded a gross operating surplus of $139.6m, down 13% from 2019. This figure is the result of two strategic decisions made during the year, namely refocusing activities on the most promising markets and partially abandoning high-margin technology products (smartphones and other equipment) in favour of lower-margin consumer products.

As a result, Jumia – which has slimmed down – sells and earns less, but has better control over its trajectory towards profitability. In 2020, the platform had won over 700,000 active customers (+12% to 6.8m users), reduced its losses ($149m compared with $228m for the 2018-2019 financial year) and increased its margin by 12%.

“The majority of our countries are now breaking even before general and administrative costs,” says Poignonnec. Jumia has also drastically reduced its advertising budget (-42% over one year).

The negative impact of the health crisis

In terms of logistics, the company claims to have delivered 4.8m parcels during its Black Friday ad campaign, 55% of which was distributed in less than 24 hours. The platform also claims to have handled nearly 500,000 parcels for 270 customers outside of Jumia “including large companies, such as banks, major retailers, mobile operators and SMEs in various sectors.”

In spite of everything, the director acknowledges that “Covid has had a rather negative effect on the activity due to […] the logistical disruptions that we have experienced throughout the year.”

READ MORE Getting sucked into current Jumia rally is a recipe for pain

In its press release, the company also adds that due to the “limited implementation of national lockdown measures in all our markets, the pandemic has not led to a radical change in consumer behaviour or a significant acceleration in the adoption of e-commerce by consumers at the pan-African level.”

A model to be found

“The fact that Jumia is not benefiting from the pandemic despite its leadership position, like Amazon in the US and Europe, or Alibaba in Asia, proves that the platform has not yet really found the model of e-commerce that works for Africa,” said Julien Garcier, head of the consulting firm Sagaci Research.

The latter also questions the platform’s shift towards consumer products. “Are African markets able to deliver these kinds of products? How does one decide between Jumia and Jumia Food for the distribution channel? Many questions remain to be clarified on how to reassure the consumer, on the use of the applications and the quality of the products,” he says.

READ MORE Jumia’s Airtel Kenya partnership won’t end delivery payment problems

In Kenya, for example, Jumia was inspired by its local competitor Copia. It has established a network of small partner-shops where orders can be placed and received. “They are still groping their way through the process of understanding how to make continental e-commerce explode,” says Garcier.

Investors are following

For the time being, investors continue to have confidence in Poignonnec and Hodara. During 2020, the share exploded by 950% on Wall Street according to a Nasdaq analyst and the stock was trading at around $47 the day after the 2020 figures were made public.

READ MORE Jumia whips out cheque book to calm Wall Street

This valuation should be put into perspective, given the reality of Jumia’s activities on the continent, says the head of Sagaci Research: “The market capitalisation [$3.8bn], represents about 30 times the company’s turnover, while Amazon’s [$1560bn] represents only five times its revenue.”

New locations and monetisation of subsidiaries

Confident in spite of everything, the management team is looking to the long term. While Jumia has just announced the launch of Jumia Food in Egypt, thanks to UberEats’ exit, Poignonnec and Hodara also have plans to establish themselves in the DRC, Ethiopia and Angola, three reputedly difficult markets. Other projects in the pipeline include making JumiaPay and Jumia Logistics full-fledged companies.

However, these services still need to prove their relevance. JumiaPay, the main payment option on Jumia, has seen its number of transactions fall by 14% in 2020. But the application is also used to top up phone credit and pay for purchases from Jumia Food. It recorded a total transaction volume of $196m (up 58%) and still remains a growth area for the group.

READ MORE Jumia: What went wrong at 'Africa’s First Unicorn'?

The African Continental Free Trade Area (AfCFTA), which came into force on 1 January, could help simplify Jumia’s task in Africa. But for the time being, the traditional obstacles limiting intra-African trade (deficient logistical infrastructure, diversified legal regimes, bureaucracy and red tape, petty corruption at the borders, insufficient access to commercial information) also hinder the development of e-commerce.

“Jumia has succeeded in becoming the archetype of continental e-commerce, and it is up to them to continue to invent it from scratch,” concludes Garcier.

Jumia targets Ethiopia, DRC and Angola despite mixed 2020 results
 

Yehuda

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Economic growth in Africa will not be achieved by a blanket ban on fossil fuels

BY GYUDE MOORE AND VIJAYA RAMACHANDRAN, OPINION CONTRIBUTORS — 03/04/21 03:00 PM EST
THE VIEWS EXPRESSED BY CONTRIBUTORS ARE THEIR OWN AND NOT THE VIEW OF THE HILL


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After four years of inaction, the Biden administration faces a more daunting climate crisis than ever. Special Envoy John Kerry said the administration wants “to develop a U.S. climate finance plan, as well as a plan for ending international financing of fossil fuel projects with public money.” This could be done thoughtfully to support a transition to a clean and energy abundant future for everyone — or it could result in a ban on all oil and gas projects which will stifle economic growth and make poor populations in Africa even more vulnerable to the impacts of climate change.

Africa has many of the poorest people in the world. For most African countries, the priority is economic growth — first in agriculture, where much of the population still works, and then in industry and services. Worries of an increased carbon footprint generated from economic growth are second to worries that growth may not happen at all.

The conversation about “energy poverty” has focused on just the most basic access for the very poorest. But people in poverty don’t just need to power a single lightbulb at home; they need abundant, affordable energy at work too. Energy is essential to creating productive agriculture systems, as well as to the expansion of economic opportunity in cities, factories, and modern industries. African countries need energy to grow, and to eliminate poverty — and they can’t do it with small-scale green power projects alone.

Africa’s first priority is to grow more food. Composting and recycling can only go so far — farmers need synthetic fertilizer to raise yields, and natural gas is the most efficient energy source for fertilizer production.

Poor farmers in Africa need much better access to irrigation. Efforts to use small-scale solar powered irrigation systems at the farm level have been successful but are nowhere near sufficient to meet the needs of the entire continent. Large scale, energy-intensive water control projects that rely on fossil fuels must be in the mix — just as they are in wealthy countries.

Domestic food supply chains provide the vast majority of food across Sub-Saharan Africa, but they’re hampered by poor roads and the unreliable fuel supplies. Construction of much-needed roads requires energy and the transportation sector as a whole remains almost entirely dependent on oil and gas.

Beyond agriculture, a continuous supply of power from the grid is critical for expanding factory production. Countries like Ethiopia, which have ambitions to become manufacturing powerhouses, are increasingly looking to China for the construction and operation of large-scale power projects that will provide reliable electricity. Off-grid technologies are useful for extending basic energy services but cannot power the industrial activity needed to create millions of jobs and drive economic diversification. There is no world in which Africa can meet its energy needs with carbon-neutral power plants and off-grid solutions.

African countries can’t afford to grow their economies and lift their people’s incomes without relying on at least some fossil fuels — and it’s unfair and ahistorical for the West to ask them to do so. Even though Africa has 16 percent of the world’s people, its population accounts for less than 3 percent of humanity’s total cumulative global carbon emissions. If the 48 nations in Africa tripled their electricity consumption overnight, relying entirely on natural gas, the resulting carbon emissions would still equal less than one percent of the annual global total.

The continent’s needs are too great to be met solely with current green energy technologies, and its finances too stretched to be able to afford the cost of carbon-neutral energy — costs that can be borne in wealthier countries, who are responsible for most of the world’s carbon, today and in the past. Furthermore, fully zero-carbon grids exist almost nowhere in the world (Iceland is the main exception) and non-intermittent forms of electricity generation are still needed to balance out wind and solar. And low-carbon alternatives to the production of fertilizer, cement and steel largely do not exist.

And if the Biden administration’s goal is to fight climate change, the evidence shows that a higher-emissions Africa will be more resilient to the impacts of climate change. People with better access to education, health care, and housing are able to cope better with heat waves and typhoons. Roads, hospitals, resilient power grids, early-warning systems, robust food supplies, and other features of modernity buffet societies against natural disasters and other climate risks, even if the energy needed comes partially from fossil fuels. Keeping Africa poor to fight climate change will do nothing to help the people most affected by it.

Shifting U.S. development aid to low- and zero-carbon energy infrastructure projects over time is a worthy goal. But a blanket ban today on the financing of fossil fuels in the poorest countries will not only obstruct economic growth; it will also do little to fight climate change and makes those countries less resilient to climate change.

Gyude Moore is a senior policy fellow at the Center for Global Development and a former minister of public works in Liberia. Vijaya Ramachandran is the director for energy and development at The Breakthrough Institute.

Economic growth in Africa will not be achieved by a blanket ban on fossil fuels
 

Sinnerman

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French Language Joins English as EAC Official Languages.

Leaders of the East African Community (EAC) bloc have adopted French as one of the official languages – joining English and Kiswahili.

At a virtual summit held Saturday, the six leaders confirmed the addition of French. It means, it will become a major subject in schools around the community.

In attendance at the Summit were Presidents; Paul Kagame of Rwanda, Yoweri Museveni of Uganda, Uhuru Kenyatta of Kenya, Evariste Ndayishimiye of Burundi, Salva Kiir of South Sudan, and Tanzania Vice President Samia Hassan Suluhu of Tanzani.

Currently, Burundi is exclusively French speaking even if many of its leaders do speak English. For Rwanda, the official languages are French, English, Kinyarwanda and Swahili.

English and Swahili are the official languages in Tanzania, Kenya and Uganda. South Sudan for its part uses largely English and Arabic.

Since 2013, there has been a plan to add French language onto English and Swahili, which have for sometime been the EAC official languages.

The project to bring French into the mainstream EAC gained prominence early last year when the French government committed to fund the implementation. France agreed to assist the EAC in conducting a study on the modalities to include French as an official language of the Community.

While at the EAC Secretariat in March 2020, the French envoy to Tanzania, Frederic Clavier, said the operational implementation of the study and related funding costs estimated to be Euros 42,511, would be covered by the Embassy of France in Burundi.

At the East African Legislative Assembly (EALA) based in Arusha, Tanzania, all the lawmakers representing each of the nations have been using either English or Swahili during sessions.

At the leaders’ summit today, they directed the Secretariat to expedite the implementation of the use of the three official languages.

In other issues, Somalia and DR Congo are seeking to join the bloc. However, it was noted by the leaders that no action had yet been taken on Somalia’s application and the foreign ministers together with the Secretariat have been directed to begin reviewing Somalia.

As for DRC, its application has reached a stage of verification and may very likely join at the next summit.

Kenya’s Uhuru Kenyatta took over the rotating chairmanship of the bloc from Rwanda’s President Kagame who has been in the role since February 2019.

Kagame took over from Uganda’s President Yoweri Museveni, and four weeks later, their conflict exploded into the open. To this day, the Rwanda-Uganda border is effectively closed.

Makes sense
 

Sinnerman

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  1. We tried the African Dinar and the Europeans invaded Libya.
  2. We tried the ECO but France was able to make the Ivory Coast a turncoat.
  3. We have the Free Trade Block, but every neo-colonial power found a way to use it to move their goods freely.
  4. Now we have the Infrastructure Commission. How long until a foreign power finds a way to screw that up too?

This will continue to happen until an African nation is powerful enough to throw it's weight around like the Big 4(China, US, Russia, EU)
 
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