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Good governance is key to Africa’s effective industrialization

MD Staff

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Africa needs industrialization to achieve prosperity and a decent standard of living for its citizens. But this can only be achieved through good governance policies and infrastructure development.

The lack of these two critical factors have largely undermined the industrialization trajectory in most African countries. Given this scenario, the industrial settlement framework as well as tax policies, are particular dynamics to be looked into.

This was the key message that emerged during a Tuesday panel discussion at the 12th African Economic Conference in Addis Ababa, Ethiopia, on the theories and practices for building resilient infrastructure, promoting sustainable industrialization and fostering innovation in Africa. The session brought together more than 150 researchers, media, private sector and civil society representatives, among other participants.

Prof. Keun Lee from Seoul National University launched the debate in a keynote address, where he underscored the need for Africa to be industrialized to add value to its huge raw materials and services. “Access to finance and markets is key to promoting industrialization”, he said, but “failure in designing governance policies can be a serious downside for promoting the sector.”

Dr. Tilman Altenburg, Head of Department of the German Institute for Development, explained the dichotomy between his country’s industrial policy and his experience in Africa. His analysis touched on the viability of national projects, productive transformation and mobilizing societal support for it. He argued that establishing clear rules for market-based competition; delivering services effectively; and removing protection are requisites for effective industrialization.

Industrial policies are more likely to achieve results if targets are agreed upon in a collaborative manner, involving the private sector as well as the competent public entities and civil service organizations, he said. “There is a need to look into the settlement framework, the distribution and marketing strategy, as well as productive integration and focus on tax policies.”

For her part, Dr. Miriam Altman, South Africa’s National Planning Commissioner, expressed the view that industrialization is a long-term process of more than 20 to 50 years, which requires incredible commitments and leadership, as well as appropriate policy in public sector procurement. “While there is need to focus on attracting foreign investments, leveraging domestic and regional markets is necessary,” she said.

Focusing on “governance of power in African societies,” Prof. Adebayo Olukoshi, Regional Director for Africa and West Asia at the Institute for Democracy and Electoral Assistance, underscored the need to have functional states with effective leaders. “We need to get the policies right, and build nations with leaders capable of building and leading industrial policies,” he said.

Overall, the panelists agreed that Africa’s industrialization would have a more positive impact on the continent’s Gross Domestic Product. However, they noted that, for this to happen, a comprehensive and resolute continental industrial policy that is country-adjustable to local contexts and that can be aligned with countries’ development goals, should be designed.

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Africa

Water Diplomacy: Creating Spaces for Nile Cooperation

Abraham Telar Kuc

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The Nile River is the longest river on the earth, with eleven nation states sharing it and over 487 million people or about 20% of the African population living in the basin countries and they depend partly or fully on the Nile for their daily water use, foods and other economic benefits. The river drains 10 % of the African continent or an area greater than 3,176,541 km2, and its divided to ten different sub-basins with two main feeding sources’ the White Nile and the Blue Nile, which making it one of the worlds largest and complicated international trans-boundary river basins.

It’s very clear that the long and current regional disputes over the Nile’s waters between the upstream and downstream countries specially Uganda, Ethiopia and other upstream nations who are been the forehead leading the campaign for the lifting of colonial era treaties regarding Nile waters allocutions, governance, management, economic use and other Nile related issues and they been demanding renegotiating Nile river basin for fair shares and equal benefits and which they did in 2010 by reaching and signing of (Cooperative Framework Agreement or Entebbe agreement) to replace all the European colonial agreements, meanwhile the two downstream countries Egypt and Sudan in the other sides refusing to renegotiate or sign the Entebbe treaty and insists on maintaining the colonial era treaties  or what they called “the historical rights” which gave the lion’s share of the Nile waters and the absolute veto to only two Nile countries and ignored the rights of other Nile’s nations.

Egypt and Sudan for years been using what they called “the historical rights” guaranteed by the colonial era agreements and their diplomatic influence to block international development funds and loans a policy which its aims only to prevent the upstream nations from establishing or constructing any developmental or economical projects on the Nile River, while Egypt is warring about the potential impacts which could effect its water security level as a result of any construction on the Nile river, the other Nile Basin nations said they are addressing the undergoing  social, economic and environmental changes plus the population in the region is growing rapidly which will need more access to Nile basin resources in aim to provide water, food and energy to their people.

The looming conflict in the Nile Basin region over water recourses governance, allocutions and economic use has been a major security threat to the regional and international peace and stability, the risks of militarizing the Nile water dispute among the basin countries has been a growing serious security threat to the basin region as a result of lacking of middle point agreement on how to share, mange and benefit from the longest river fairly and equally.

In past years the downstream nations had already unilaterally constructed dams, used Nile waters for irrigation, industrial and other projects and with the upstream nations complaining about those unilateral projects done by the downstream nations and the none cooperative method and approach of Egypt and Sudan and as an outcome of years of disagreement over the Nile water issues and unilaterally decisions and actions taken by the individual countries claiming the Nile River waters and only favoring their own benefits over other Nile nations. The Entebbe Agreement came in to escalate the none cooperation situation more by geo-politically shifting the control of Nile basin waters away from the downstream nations and gave the upstream countries a legal frame to construct dams, establish different projects and increase their water use for different propos.

With some countries see themselves as victims of other Nile countries who had taken an advantage of certain period of time or situation that they were in, which let some of them to see no benefit now in been cooperative with the others concerning the Nile related issues and looks only at their national interests, but still the diplomatic dialogue and inclusive negotiations between the Nile basin nations is the only way forward to build confidence, trust and cooperation for sustainable future of the Nile and mutual and shared benefits for basin members countries. A positive engagement between the Nile basin members now can be observed in some steps taken by the countries were technical dialogue and diplomatic approach has increased the sharing of technical and hydrological data between the basin members countries, capacity building workshops and inter-nations trainings and seminars for technicians, policy and decision makers, government officials, diplomats, scientists, researchers, journalists, local and global think-tank institutions, NGOs, regional and other international stakeholders had really helped in easing the interstate political tensions and putting concord foundation for more regional cooperation which will contribute to a better understanding, enhancing the diplomatic relations  and cooperation among the basin nations.

To have a sustainable Nile Basin with equal benefits, comprehensive cooperation, joint management, and effective partnership the diplomatic approach and inclusive negotiations is the only solution to overcome years of mistrust and standoff in the Nile Basin region.

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Russia, Africa and the SPIEF’19

Kester Kenn Klomegah

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In 2019, four African countries – Côte d’Ivoire, Lesotho Niger and Somalia – for the first time attend the St Petersburg International Economic Forum (SPIEF’19) held on June 6-8 under theme “Creating a Sustainable Development Agenda” in Saint Petersburg, Russia.

The Forum brought together a record-breaking number of participants: over 19,000 people from 145 countries, with 1,300 guests representing heads of companies. The sheer number of business community participants, variety of thematic events, and level of representation on both national and international levels underscore the status of SPIEF as a truly global economic forum.

Over the years, SPIEF has become an open platform to exchange best practices and key competences in the interest of providing sustainable development.

The main event was the plenary session, with the participation of President of the Russian Federation Vladimir Putin, President of the People’s Republic of China Xi Jinping, President of the Republic of Bulgaria Rumen Radev, Prime Minister of the Republic of Armenia Nikol Pashinyan, Prime Minister of the Slovak Republic Peter Pellegrini, and Secretary-General of the United Nations António Guterres.

During his address to the participants of the Forum, Vladimir Putin talked about the tasks the country is facing, as well as about the importance of national projects as a driver of economic growth in Russia.

The overall budget for the implementation of proposed development projects of Russia is about US$400 billion. The priorities are healthcare, education, research and development, and support for entrepreneurship. And, considerable funds will also be allocated to develop major infrastructure, transport and the energy industry.

Putin also stressed to the guests and participants for their friendly attitude to Russia, their willingness for joint work and business cooperation based on pragmatism, understanding of mutual interests and, of course, trust, frankness and clear-cut positions. That global inequality between countries and regions is the main source of instability. It is not just about the level of income or financial inequality, but fundamental differences in opportunities for people.

More than 800 million people around the world do not have basic access to drinking water, and about 11 percent of the world’s population is undernourished. A system based on ever-increasing injustice will never be stable or balanced.

As a first step, necessary to conduct a kind of demilitarisation of the key areas of the global economy and trade, that also includes utilities and energy, which help reduce the impact on the environment and climate. This concerns areas that are crucial for the life and health of millions, one might even say, billions of people on the entire planet.

Russia has embarked on implementing long-term strategic programmes, many of which are global in nature, it is important to hear each other and pool efforts for resolving common goals. Russia is ready for these challenges and changes.

During the four days of the Forum, over 1,300 speakers and moderators, including Russian and international experts, took part in discussions. They shared their knowledge, experiences and best practices with the participants of the Forum. There was special zone of the area that hosted interviews with politicians, government officials, representatives of big business.

On the sidelines, there were business dialogues between Russia and other countries, for example Russia–Africa, were very popular this year. President of the Senate of the Parliament of the Republic of Zimbabwe, Mabel Chinomona, was one of the African participants. State officials came from Botswana, Egypt, Zimbabwe, Côte d’Ivoire, Lesotho, Mauritius, Niger, Sierra Leone and Uganda.

The Russia-Africa session featured Mikhail Bogdanov, Deputy Minister of Foreign Affairs of the Russian Federation; Special Presidential Representative for the Middle East and Africa; Amani Abou-Zeid, Commissioner for Infrastructure and Energy, African Union Commission and Tatyana Valovaya, Member of the Board – Minister in Charge of Integration and Macroeconomics, Eurasian Economic Commission.

Isabel Jose dos Santos, Chairman, Unitel SA; Daniel Kablan Duncan, Vice President of the Republic of Cote d’Ivoire; Dmitry Konyaev, Deputy Chairman of the Board of Directors, URALCHEM JSC and Benedict Okey Oramah, President, Chairman of the Board of Director, The African Export Import Bank.

Sylvie Baipo-Temon, Minister of Foreign Affairs and Central Africans Abroad of the Central African Republic; Nikita Gusakov, General Director, EXIAR; Boris Ivanov

Managing Director, GPB Global Resources and Nataliya Zaiser, Chair of the Board, Africa Business Initiative UNION; Executive Secretary, Russian National Committee, World Energy Council (WEC).

The participants noted that 2019 should be a historic year in the development of Russian-African relations. The summit of heads of state in October should take place amidst record growth in Russian exports to Africa. Russia is interested in new markets and international alliances more than ever before, while Africa has solidified its position as one of the centres of global economic growth in recent years.

In this context, the countries need to rethink the approaches, mechanisms, and tools they use for cooperation in order to take their relations to the next level as their significance grows in the new conditions of world politics and economics. What steps are needed to give a new impetus to bilateral economic relations? What are the key initiatives and competencies that can create a deeper strategic partnership between Russia and African states?

These are among the key questions on the meeting agenda for the upcoming Russia-Africa Summit planned for October in Sochi under the co-chairmanship of President of the Russian Federation Vladimir Putin and President of the Arab Republic of Egypt Abdel Fattah el-Sisi, Chairperson of the African Union.

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Russia joins Gulf states in coaching Sudan’s military

Dr. James M. Dorsey

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Russia has emerged as Saudi Arabia and the United Arab Emirates’ silent partner in assisting the Sudanese military’s efforts to weaken, if not defeat a months-long popular revolt that has already toppled president Omar al-Bashir.

Documents leaked to The Guardian and MHK Media, a Russian-language news website, by the London-based Dossier Centre, an investigative group funded by exiled Russian businessman Mikhail Khodorkovsky, disclosed Russia’s hitherto behind-the-scenes role in Sudan.

Laying out plans to bolster Russia’s position across Africa by building relations with rulers, striking military deals, and grooming a new generation of leaders and undercover agents, the documents included details of a campaign to smear anti-government protesters in Sudan.

The plan for the campaign appeared to have been copy-pasted from proposals to counter opposition in Russia to president Vladimir Putin with references to Russia mistakenly not having been replaced with Sudan in one document.

Russia advised the Sudanese military to use fake news and videos to portray demonstrators as anti-Islamic, pro-Israeli and pro-LGBT. The plan also suggested increasing the price of newsprint to make it harder for critics to get their message out and to discover “foreigners” at anti-government rallies.

Yevgeny Prigozhin, a St. Petersburg-based businessman and close associate of Mr. Putin, complained in a letter to Mr. Bashir before he was overthrown that the president was not following his advice.

Mr. Prigozhin, who was indicted by US special counsel Robert Mueller for operating a troll factory that ran an extensive social media campaign that favoured of Donald J. Trump’s 2016 presidential campaign, was according to the documents a key player in efforts to enhance Russian influence in Africa.

Mr. Prigozhin accused Mr. Bashir and his government of not being active enough and adopting an “extremely cautious position.”

If a visit this week to Sudan by foreign journalists at the invitation of the military to show them medical facilities that had allegedly been ransacked by protesters and demonstrate that hospitals that had been attacked by notorious paramilitary forces associated with Sudanese army were returning to normal, is anything to go by, Mr. Prigozhin’s criticism may have merit.

“It must have seemed like a good idea to somebody, although I cannot imagine why. The plan was to show us how terribly the protesters had behaved. If the world could see what they were really like they would understand that the regime had no choice but to send in the militia. Except from the moment we arrived at the first medical facility things started to go wrong,” said the BBC’s Africa editor, Fergal Keane.

To Mr. Keane, the omnipresence of paramilitaries of the Rapid Support Forces (RSF) made the paramilitary headed by General Mohamed Hamdan Dagalo aka Hemedti, believed to be a Saudi and UAE favourite because his troops fought in Yemen and his reputation for ruthlessness, look “more like an army of occupation than an internal security force.”

Widely viewed as ambitious and power hungry, General Dagalo resembles in the eyes of protesters Abdel Fattah al-Sisi, the autocratic general-turned-president who in 2013 staged a Saudi-UAE-backed military coup that toppled Egypt’s first and only democratically elected president.

Defending the UAE’s contacts with the military council, Emirati minister of state for foreign affairs Anwar Gargash said his country’s “credibility is our means to contribute to enhancing peaceful transition in a way that preserves the state and its institutions.”

Human Rights Watch this week called on the United Nations Security Council to halt the withdrawal of peacekeepers from Darfur, noting that the Rapid Support Forces “have a long track record of abuse. They carried out highly abusive counter-insurgency campaigns in Darfur, and the Southern Kordofan and Blue Nile regions over the past five years, in which they attacked villages, killed and raped civilians, and burned and looted homes.”

Witnesses outside a medical facility and a hospital that Mr. Keane visited countered the military’s tale, describing how troops stormed the buildings and looted and destroyed facilities. “”The international community has to intervene. There is no peace here in Sudan. People are suffering a lot… I am frightened for my country,” said a man as he drove by Omdurman Hospital.

The failed public relations tour, the crackdown, the Russian guidance and stalled talks between protesters and the military fits a Saudi-UAE promoted pattern that has evolved across the Middle East and North Africa since the 2011 popular Arab revolts. It’s a pattern that aims to defeat popular protest at whatever cost.

The Sudanese protest movement has emerged from the crackdown that doctors said killed at least 118 people and efforts to delegitimize it battered, divided and potentially weakened but still standing.

A general strike declared at the beginning of this week initially paralyzed the capital Khartoum but within a day or two appeared to be weakening.

Ethiopian mediator Mahmoud Dirir said on Tuesday that the protesters had agreed to end the strike while the governing Transitional Military Council (TMC), headed by officers with close ties to Saudi Arabia and the UAE, was ready to release political prisoners, one of several key demands of the protesters.

Mr. Dirir said the two sides had also agreed to “soon” resume talks to resolve the crisis even if they were nowhere near narrowing differences of returning Sudan to civilian rule. It was not clear what soon meant.

“Negotiation – even if it happens soon – will circle back to the same issue: will the military cede power to a civilian government? Nothing about the generals’ actions has indicated that this is an imminent possibility. The fear is that they will use any negotiations to try to divide the opposition while security pressure is maintained on the streets,” Mr. Keane said.

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