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African SME's : Access to Finance

A case study (PDF) from JETHRO states that:

SMEs are the main source of employment in developed and developing countries alike,comprising over 90% of African business operations and contributing to over 50% of African employment and GDP. Many SMEs remain outside the formal and banking sectors yet harnessing the talent in the informal sector and bringing it into the formal sector generates increased revenue through taxation; SMEs benefit from protection under legislation and homogenised standards and supply. Ultimately, some SMEs may become sufficiently integrated into the legal and banking frameworks that they can work towards listing on arms of the national Stock Exchanges
via AfricaPractice

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Rethinking Food Aid

Lauren Gelfand of Oxfam stated that "...Infrastructure here(Sub-Saharan Africa) needs very, very basic aid, such as help with agricultural irrigation techniques," She described the kind of aid that would make a profound and lasting impact as "very low-tech, small-scale projects..."

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Africans must help Africans

Senait Mehari author of Heart of Fire states that "...Africans must help Africans...Africa is a forgotten continent,” she says. “When you beg for democracy or peace ,people laugh in your face...“Don’t cry for these people. Don’t cry for me. It doesn’t count. I want to see positive action. It’s not enough to say, ‘How sad, we hope something will change’. Hope is good, but it’s not enough..."
via TimesOnline

photo courtesy of droemer

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Retail Development Bonds

The Mail & Guardian reports on the promise of retail development bonds:

Daniel Bradlow...is developing an investment product, in consultation with international and domestic financial institutions and development financing experts, that aims to create access to funding for smaller projects...Bradlow has mooted a retail bond along the lines of the government retail bond, which the public can invest in for a minimum of R500 for 10 years.
It provides a semi-annual return equal to the government’s retail bond, the underlying funds being used to develop small and micro- enterprise business and low-income housing in South Africa. So investors will be doing their bit to develop the country while making money themselves.

via NextBillion

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Emerging Southern Multinationals

The focus on the rising profile of Southern Multinationals continues, Businessweek reports:

"...A new breed of ambitious multinational is rising on the world scene, presenting both challenges and opportunities for established global players.
These new contenders hail from seemingly unlikely places, developing nations such as Brazil, China, India, Russia, and even Egypt and South Africa. They are shaking up entire industries, from farm equipment and refrigerators to aircraft and telecom services, and changing the rules of global competition..."

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Technocrats Please !!

George Ayittey wrote "...We need TECHNOCRATS to fix our broken, dysfunctional institutions. REPAIRMEN or plumbers who will unclog the gutters or the system. CUTLASSES to chop down all the dead woods Rawlings packed into the civil service. PINCERS to de-worm the judiciary, and so on...You do NOT need an Nkrumah (a visionary and Pan-Africanist) or a Mandela (a heroic campaigner against white injustice) because they are NOT technocrats..."

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From Third World To First :The Singapore Story

Leadership imbued in the personality of Lee Kuan Yew was critical to the transformation of the then island backwater state of Singapore to a regional powerhouse."From Third World To First" is his account of this journey. "...Few gave tiny Singapore much chance of survival when it was granted independence in 1965. How is it, then, that today the former British colonial trading post is a thriving Asian metropolis with not only the world's number one airline, best airport, and busiest port of trade, but also the world's fourth-highest per capita real income?...",HarperCollins.
What lessons does this hold for the Liberia's, Malawi's and Senegal's of this world? Countries comparatively with much more than Singapore ever had in terms of raw material and human resources.

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Knowledge Sharing & Poverty Alleviation

Alex Steffen reports on "leapfrogging through local wisdom"

what really captivates my imagination here is the way in which I see a marriage of approaches emerging here: a very sensible, community-based approach, which starts by finding and supporting the capacities of the poor, and focusing on the capital the community already has in its relationships, skills and local knowledge, and a redistribute-the-future approach, which recognizes that the tools poor people most need are the ones which help make them as independent as possible from the exploitative systems around them. It's a form of leapfrogging, certainly, but it transcends the technologies involved to look at the relationships and ways of thinking those technologies enable.

via Worldchanging

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'Leadership' in Africa

Eddie Cross writes:

There is a great deal wrong in Africa. The continent has the highest ratio of internally displaced people in the world, we generate more refugees than any other continent, and we are poorer now than we were before independence.
We are the Aids capital of the globe and our life expectancies are retreating on a scale seldom seen in history.

Why?

It’s not for lack of resources – we have those in abundance and if we rated Africa on the basis of population to its natural resource base we would find ourselves at the top of the log. It’s not for a lack of energy – we are now a major producer and exporter of oil, we have vast reserves of coal and hydroelectric potential to light the continent for decades to come. It’s not for a lack of aid from richer countries – many States in Africa draw up to half their annual budgets from donors in the West. Per capita we are one of the largest recipients of aid in the history of the world

The reason for all these problems lies not in our history nor in the predation of industrial economies, it lies in our leadership.

via Enough is Enough

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Local Democracy

The IDEA outlines a number of reasons for decentralizing democracy:

  • It helps to deepen the commitment of countries to democratic governance and increase the legitimacy of national governments, including those just emerging from conflict. In addition, the role of regional and local governments have become important as the basic training ground for the citizenry in democratic problem solving as well as developing local politicians for the national arena.

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Debt Relief a Moral Hazard

Andrew Mwenda makes a case for turning off the Aid spigot:

“The best thing the West can do is nothing,” he says...“White society is being blackmailed. The white world looks at Africa from a position of guilt,” he told a seminar at IPN, the London think tank. The beneficiaries of aid are governments, politicians, the staff of aid agencies and charities, he says. Head in hands in mock despair, he reels off a list of “charities” that sprang into being when the Global Fund to Fight Aids, Tuberculosis and Malaria began to disburse its millions. “There was Children of Hope, there was Hope for Children, there was Help the Children.”
Continuing...
Aid is the problem, not the solution, he says. Debt relief is a Moral Hazard. What is the incentive for country “A” to continue paying interest on its borrowings if country “B” steals the money, defaults and then gets debt relief.

“Countries that are deserving don’t get aid,” says Mr Mwenda. Aid creates the wrong incentives, he argues. It makes objects of the poor, passive recipients of charity rather than active participants in their own economic betterment. Africans don’t need handouts, they need better institutions, land reform and access to cheap mortgages.

via TimesOnline

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Zambia's Muddled Software Policy

CodeZed questions Zambia's wrongheaded software development policy:

The industry requirements seem to support ready made packages or proprietary software. Some of these colleges have no PCs and software and heavily depends on theory. For those that have, the curriculum is developed by academicians without involvement of industry and tailored towards a particular manufacturer- Microsoft. Entrepreneurship to start up your own Software house seem not to be viable as the market demands proprietary Software and always seem to be in hurry for ready made applications whether they work for or against them they do not mind!!!!

The donors are giving funds for ICT and specifications are for proprietary software. Donated computers have a price tag of free Microsoft Software. Most PCs have Microsoft Windows operating Systems pre loaded. Multi national and International organisations decide on behalf of their Zambian branches which version of Microsoft Products and other proprietary software should be in the installed base!!!
This bizarre state of affairs is indicative of the lack of understanding policymakers and industry have for sustainability in this industry. A gap that needs to be addressed by education, grassroots organizations and other methods.

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Locally Accountable Police departments

Police forces across SSA are generally viewed with suspicion, fear and derision. They are largely seen as non-representative instruments of authority- a force apart from society itself.In further examination of the institutional decentralisation theme we look at ,a paper by Gareth Newham which examines the implementation of local civilian oversight of police forces in South Africa. It came up with a number recommendations which include:


  • Developing training and other resources to enhance the understanding and practice of civilian oversight of police agencies at local level;
  • Ensuring that independent evaluations are conducted on key aspects of MPD performance and conduct;
  • Ensuring that local level oversight committees include a focus on the policies, procedures and systems of MPDs to receive and deal with public complaints of police misconduct;
  • Inviting feedback from various stakeholders as to their perceptions and experiences of the MPDs;
  • Assisting in clarifying the role of the Civilian Oversight Committees and then capacitating them to play this role.

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Mali Evolves

Robert Pringle writes about the burgeoning civil society and strengthening democracy in Mali:

Malians have redefined the term “consensus” to comport with the decentralization model. Whereas under the dictatorship “consensus” meant African-style democratic centralism, often smacking of communist practice, today it is understood to suggest reaching compromise on tough issues—more in the mode of Daniel Webster than Vladimir Lenin...Malians say that their history and culture have nourished interethnic tolerance. They cite a whole tool kit of conflict resolution and avoidance mechanisms...Mali’s new decentralization has created a three-tiered system: regions (think states), circles (think counties), and communes, which usually comprise several villages. Commune inhabitants elect local councils, which choose their own mayors and send representatives to the two higher tiers of the system. The 702 rural communes are widely regarded as the backbone of Malian democratization...The most striking thing about Malian democracy is its success in drawing intellectual and spiritual sustenance from an epic past, and actively incorporating homegrown elements, such as decentralization. If there is occasional fiddling with historical truth, the past provides plenty of room for differing viewpoints and for shaping tradition to meet modern needs. It is this aspect of the Malian experience that is least appreciated, and it deserves more attention from policymakers, both African and foreign, who have a tendency to assume that “tradition” equates with “bad.”
via 3quarksdaily

photo courtesy cr.nps.gov

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Ghanaian farmers respond to Market forces

The Globalisation Institute reports on adjustments being made by Ghanaian tomato farmers in the face of cheaper imports:

"The challenge,” says Kofi Ampah, a Ghanaian tomato producer facing competition from cheap imports, “is for our farmers to produce a high yield per acre so that we can sell them at a price to compete with imported tomatoes.” Kofi is apparently one of 500 farmers being trained in efficient techniques to produce good quality tomatoes. Since the DFID-funded project started, harvests have tripled and are still rising.

photo courtesy of traveladventures.org

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Bureaucratic Corruption The Futility of Cleanups

John Mukum Mbaku writes :

Bureaucratic corruption is an outcome generated within a given set of rules. An effective normative evaluation of such an outcome can only be undertaken after a thorough understanding of the rules that generate the outcome. Thus, to understand why people engage in corruption requires an examination of the rules that regulate the socio-political behavior of individuals. Since these rules determine how individuals behave and relate to each other, they also determine the outcomes to be generated in the post-contractual society. Thus, effective corruption cleanup should not involve efforts to manipulate outcomes within rules. Instead, an effective approach should involve reform of existing rules and the subsequent selection and adoption of new rules that can generate the outcomes desired by society. Since the rules determine the incentive system that will prevail in the post-contractual society, society can effectively impose the outcomes it wants through rules design.

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Les Ballets Africains

"...Les Ballets Africains have been recognized and encourage in their role of roving ambassadors, carrying with them on their travels the pride and aspirations of their people. The company’s ultimate mission is to foster a greater understanding of Africa with a view to creating favorable conditions for a healthy and fruitful cooperation between Africa and the rest of the world..."

Art Voice stated

the Guinean dance troupe that has been enchanting audiences around the globe for more than 50 years. This group’s pulse-quickening dancing is matched with an undeniably rhythmic and percussive music.
photo courtesy of pbs

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African Leaders Failure to Understand Globalization

In response to President Benjamin Mkapa's rebuttal of an original article Franklin Cudjoe stated the following:

Did the President address trade barriers within the continent at all? I mentioned that as well. Why can’t Tanzanians buy Ghanaian chocolates, for instance? Why did Nigeria ban 96 products from Ghana when Ghana could go into Nigeria 7 times, population wise? How open are COMESA and ECOWAS, two trading blocs for East and Southern Africa, and the West African sub region?...long after colonialism ended, Africa’s elite—who had promised limitless freedom for the newly independent Africa—soon recoiled into the statist mold of the colonizers. They were responsible for creating the most predatory forms of command and control over African societies and economies, to an extent never even imagined by the Colonial rulers. The leaders used this system to satisfy their greed, for personal aggrandizement. This effectively alienated a majority of individuals in society, because they were not able to benefit from the proceeds of their own economic activity.

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Reforming a Utility company

Energy Biz Insider reports on the uphill task of reforming AES Corp, a privatized state owned utility company in Cameroon.
Jean-David Bile:

is rooting out corruption at the electricity company, cracking down on customer theft, improving the flow of electricity -- and ending the practice of hiring people to satisfy the demands of politicians and traditional chiefs. His achievements don't always endear him to his fellow Cameroonians

He stated...
"To implement dramatic reforms you have to be tough on your own people, or you'll never make it,"

via PSD Blog

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Independent Candidature:Cameroon

George Ngwane reports on the memorandum regarding Independent Candidates in Cameroon:

So far party – centered elections have only favoured an old generation that has monopolized the political arena in Cameroon. Independent candidature would therefore provide the young generation with the opportunity of bringing a new vision and fresh agenda to the body-politic of our country. Indeed Independent candidature is now regarded as an antidote to gerontocratic politics and a rite of passage to generational democracy

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The Live 8 legacy

William Langley writes:

Greg Mills, the director of the Brenthurst Foundation, a leading South African economic think tank, says: "I think Live 8 was a good thing, in the sense that it raised the profile of Africa in a way that it hadn't been raised before in the post-war world. But in doing so it exposed the reality of what has gone wrong - the failures and lack of initiative of African governments.
"I think these lessons are being learnt. There is a new generation of Africans who are uncomfortable with foreign aid. They see that it undermines self-respect, saps initiative, encourages dependency, and creates many of the problems that it is supposed to alleviate."
The aid business is one of the few things in Africa that is booming. Every year, as thousands of the brightest and best-educated Africans flee to work abroad, 100,000 foreign "experts" arrive to hand out Western money.

via The Telegraph

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