In the words of George Ayittey, Africa Unchained is about “unleashing the entrepreneurial talents and creative energies of the real African people…and a blueprint for Africa’s future.”
Dr. George Ayittey, a distinguished professor at American University in Washington, D.C. and the first among his generation to recognize that “African problems must be solved by Africans,” has written this book to help push Africa on to prosperity. His approach to the solution of African problems was much derided by some in the 90s, but is now gaining popularity with reformers and world leaders in the new search for ways to help Africa.
Whether at the front of Congress, in conference rooms at the World Bank and IMF,on numerous radio and television talk shows; or during the various crises which have engulfed the continent, Ayittey has sturdily maintained the “solution by Africans” approach as a departure point for solving the seemingly intractable problems on the continent.
Ayittey, in a sense, has all along been the Jeremiah of Africa, saying things that some don’t want to hear. Will his critics, who are many, now wait for result or would they rush out to call him a false prophet?
In Africa Unchained he sets out to explain why and how Africa ought to besaved.In a characteristic manner, Ayittey is unsparing in his prescriptions for Africa, and in his criticism of the African elite. He has no faith in either the current leadership, or the ones preceding them. Rather, he places faith in the new leaders to come, whom he calls the “African Cheetah,” his version of the term “Asian Tiger.”
Ayittey is often criticized, mostly by his fellow intellectuals, for his brutal assessments of conditions in Africa. They describe him variously as an “Uncle Tom,” a “Sell-Out,” or an Afro-pessimist.
Often, his response to these critics has been to draw “a distinction between African leaders and the African people,” or the field hands who are governed and the men in the state houses who are the governors.
In Africa Unchained, Ayittey’s analysis of the historical facts of Africa’s post independence experience makes his usual harsh style credible. So when he asks in his prologue “if I have a very strong cutlass (machete) whom should I go after?” you know exactly whom he has gone after and why.
For Ayittey, the problems gained their most impetus during the post colonial period, when leaders got their priorities mixed. Cherished leaders like Nkrumah and Nyerere are drubbed for policies Ayittey claims were wrong headed.
This writer would agree that, indeed, some of these policies, as described by Ayittey, were wrong; but differs in thinking that the period was also one of intense experimentation, and, therefore, things were likely to go wrong.
Many things under Nkrumah went right. The grace for his period is that no one would today doubt the sincerity with which he tackled the experiment. As for Nkrumah stashing money abroad, nothing has been tendered as evidence other than the hearsay which started on February 24, 1966 when he was overthrown.
Nkrumah, after nine years in office, never had the chance to self-adjust his policies before being overthrown. Those leaders who came after had the benefit and the responsibility to amend some of his policies. And indeed, Ayittey agrees with this assertion. Thus, it is the failure to do so by these pretenders to leadership that must give Ayittey’s book real vitality.
Ayittey condemns statist intervention in the economy. He commends some governments for recognizing lately the need to move from socialist models to allow foreign capital infusion by making their markets “more open, permitting profit repatriation.”
These governments had hoped to attract Foreign Direct Investment (FDI) to spark growth and development . But Ayittey laments that all the good intentions and the innovations are yet to overcome the “negative image” that Africa has acquired over the years. Thus the economies of these countries still remain sluggish.
Africa continues to remain unattractive for the investor; contrary to all evidence of healthy returns on investment. Not even rich Africans prefer to keep their monies there. Ayittey chastises the late president of the Ivory Coast, Houphouet Boigny, for asking “what sensible man does not keep his wealth in Switzerland, the whole world’s bank?”
It is perplexing to read Ayittey’s book and still be aware that some have called him a sell-out. His love for Africa is apparent in this book. His description of the “low level” efficiencies that make Africa work is lovely to read. What he calls the “astonishing degree of functionality, participatory form of democracy, rule of customary law and accountability of the traditional African society,” is respectful and easy to applaud. These are words of facts as well as love. He cannot be the Afro-pessimist his detractors sometimes call him. Otherwise, how could he put so much faith in the simple African peasant he calls “Atingah”?
The critical question to ask is: Is Ayittey being a romantic by placing so much faith in the African peasant and the simple things that so far have provided “low level” efficiencies to the economies of Africa? The notion may sound simplistic to some. But given that the technological and scientific marvels of the West had their primitive beginnings, I will give this approach a strong support. The experiments have been done. The need now is to provide the right environment to nurture the confidence that will make the feats possible. And this is what effective leadership can do.
As Ayittey’s long held view of solution for the African problem suggests, salvation “does not lie…in the crisis-laden modern sector.” It rides on the “backs of the Atingas (peasants) in Africa.”
Instead of investing in the Atingas, who support the bulk of the economy in Africa, Ayittey says African leaders have forgotten them in the shuffle for development and that the low class Atingas (peasants) never featured in the grandiose developmental schemes of post colonial Africa.
For Ayittey, it is possible to turn Africa around. This means empowering the peasants and freeing them to pursue the various enterprises they are already good at. Africa needs “a completely new approach” and an absolute paradigm shift for this to happen, according to Ayititey.
Ayittey describes the attempts so far as mostly disingenuous. And he blames this on the elite, whom he calls “the vampire parasitic elite minority group.” No wonder the majority of his critics, are found in this group.
Africa Unchained is Ayittey’s third book. It is published by Palgrave Macmillan. It was released about a month ago and already has caught the attention of the book world with favorable reviews from the likes of The Wall Street Journal and The New York Times.
For anyone in academe, government or a seeker of solution for Africa’s seemingly intractable problems, Africa Unchained is the book to read.
E. Ablorh-Odjidja, Washington, DC, March 21, 2005
The Coming of the African Cheetah
Tooling Education
"...The Intsimbi National Tooling initiative has as a national objective, the rehabilitation of the South African Tool, Die and Mould Making (TDM) industry and thereby contributing to a strategic growth stimulator for Manufacturing and Technical skills development..."This is an initiative that deserves emulation across a continent that has a non-existent but critically needed machine tool industry.
via Cheetah Index
Africa: The Last Investment Frontier
John H. Christy reports in Forbes:
The economies of sub-Saharan Africa are in the best shape in several decades. Africa is on track to deliver economic growth of nearly 7% in 2008. Inflation, which measures below 7%, is high by the standards of the developed world, but nowhere near crisis levels. Record oil prices have certainly helped stabilize African economies, but the International Monetary Fund notes that improvements have also been broad-based, attributable to better macroeconomic policies in recent years...[continue reading]
via Cheetah Index
Pendjari Biosphere
BBTV's Xeni Jardin reports on Benin's relatively unknown Pendjari Biosphere:
The Pendjari Biosphere lies in Benin's remote rural northwest, along the border of Burkina Faso. Despite poaching and environmental damage, it's still home to a diverse number of species -- elephants, lions, monkeys, cheetah, and around 300 species of birds. We traveled here during the dry season, when animal spotting is easiest. Here is what we saw at dawn (the time of day when critters all come out to the watering holes and rivers)...[continue reading]
Africas Stock Bargains Dwindle
Ryan Shen Hoover writing in the the Cheetah Index states:
It’s great to see such confidence in Africa’s capital markets. It will encourage additional companies to go public and ultimately improve African exchanges’ liquidity. But it makes uncovering a “screaming buy” each month much more difficult. Instead of “40% off everything in the store,” value investing in Africa is now more akin to rummaging through the clearance section.
Still, retail investors can thrive in such an environment. They’re able to pick up deals that the big guys can’t touch. Large institutions find it difficult to invest in opportunities like Fan Milk because of the lack of liquidity, and great companies like SAB&T Ubuntu are too small for them to buy without moving the market. Moreover, most of Africa’s IPOs and secondary offerings tend to favor small-time investors. Like scooping up “Midnight Madness” deals, investing in African stocks isn’t convenient, but it can be rewarding and fun.
The Next Frontier
I can only imagine what Africa must seem like to the outside observer, with stories of war, poverty, illness and so on constantly portrayed in the media. But to me and numerous other African entrepreneurs born into post-colonial Africa, these issues are merely a challenge that we must overcome in order to succeed.More here
Africa’s Cheetah Generation is ready to take the continent to the next level. We seek opportunities in commerce, industry, education, health and other sectors where we can actively and gainfully engage the rest of the world. We believe the days of aid are over, and are eager to prove our worth to our counterparts in other parts of the world.
The Next Frontier
I can only imagine what Africa must seem like to the outside observer, with stories of war, poverty, illness and so on constantly portrayed in the media. But to me and numerous other African entrepreneurs born into post-colonial Africa, these issues are merely a challenge that we must overcome in order to succeed.More here
Africa’s Cheetah Generation is ready to take the continent to the next level. We seek opportunities in commerce, industry, education, health and other sectors where we can actively and gainfully engage the rest of the world. We believe the days of aid are over, and are eager to prove our worth to our counterparts in other parts of the world.
Increasing Africa’s Value for its products
Joshua Wanyama writes in the Cheetah Index:
When a continent as rich as Africa sells its natural resources to the rest of the world. I call that a basic economic market. When African economies and companies start keeping these resources at home and produce world quality products, then they have added value and ensured better prices for their commodities...Until Africa increases the value for its natural resources consistently, the continent keeps fueling outside economies while playing second fiddle to world markets.
Sierra Leone's Mining Sector
The Cheetah Index carries an article from The Standard Times Press News on Sierra Leone's recovering mining industry:
The ease of artisanal diamond mining has meant significant cash flow into the economy even during the worst war years, but sadly it also fed the rebellion. It is now helping to speed the recovery, finance imports, and generate needed employment. Yet it also draws labour power away from agriculture and into a highly speculative activity which holds the promise of wealth for a few and continued poverty for the majority. One cannot discuss trade and poverty in Sierra Leone without understanding the mineral sector.
African Solutions
Nubian Cheetah highlights a TV series about African technology, innovation and ingenuity:
Imported Food Fixation
Benin Mwangi at the Cheetah Index, comments on rice imports in Ghana.
There is not really an inherent problem with Ghana or any other African nation importing rice from other countries. However, if enough of it is imported, then it puts downward price pressure on Ghana's local agricultural producers who are the engine of the country's economy. One reason for this is because the long grain rice coming into Ghana from abroad is typically sold below what it would cost to produce the same quantities and qualities of rice in Ghana. In the US this is possible because of government subsidies to farmers, which cause large surpluses and in Asia it is presumed to be because of the low cost of labor and the largely intact road infrastructure.
Learning from Brazil and India
Binneh S. Minteh writing in the The Sword of Truth states:
The emboldening of an African – Brazilian /African-Indian private sector, through positive and constructive bilateral mechanisms and institutions, may be a contributing policy decision in both fostering ties, and diversifying economies across the continent.In addition the opening of African economies to more entrepreneurs and private businesses from both India and Brazil may become the necessary driving force behind the vehicle strengthening economic diversification across the continent.....[continue reading]
via Cheetah Index
The lucrative, cynical business of ‘saving Africa’
At the Cheetah Index Chido Makunike writes:
For ideologues on either side, Africa provides a great testing ground for their beliefs and pet theories. Various donor organizations stake their very existence on “we are saving Africa” so there is turf to be passionately defended. ‘Saving Africa’ has become a lucrative, high-stakes and sometimes very cynical business. Those involved jealously defend whatever position their particular organization or interest group has locked itself into, regardless of whether that position is ultimately best for the claimed ‘poor, helpless, starving’ African beneficiaries or not...[continue reading]
Portfolio Investing Solely in African Markets
Ryan Shen-Hoover writing in the Cheetah Index asks the question:
Would a portfolio consisting of equal allocations to each of these 10 African markets be exposed to unacceptable levels of risk? To find out, I back-tested such a portfolio and compared it to the S&P500 and EEM using the most recent 16 months of returns.
The S&P500 returned an average of –0.04% per month with a 3.42% standard deviation. The Emerging Market Index posted better returns of 1.71% but was more volatile with a 6.31% standard deviation. Our Africa portfolio returned 2.90% with a 2.36% deviation. Better returns and less volatility. Could Africa be an investor’s safest and most rewarding bet?
The Burden of the CFA
Hinsley Njila founder of Real Focus writes about the deleterious effects of the CFA franc and echoes calls for Francophone countries to free themselves from its yoke:
For every growth in France’s GDP, the euro appreciates against the Dollar, thus the CFA franc assumes too high an exchange rate. This puts the brakes on growth in the African economies that are also heavily dependent on commodities produced by Asia and South American countries that have much more flexible currencies. Put simply, a strong euro just kills CFA member economies as they experience declining export prices...A high fixed rate also kills economic growth in member countries, as it’s incompatible with productivity. The level of regional integration among member countries and the two central banks is remarkably low, even further undermining economic growth. Because the economies of Central African countries are heavily dependent on oil, and those of West Africa heavily dependent on other commodities, it is hard to argue for the long-term viability of the CFA unless of course you’re De Gaulle.
via Cheetah Index
African Solutions for African Problems
George Ayittey on "...bottom-up economics through the use of “Cheetah Enterprises” – projects starting at the grassroots level that enable Africans to improve their quality of life..."
George Ayittey - African Solutions for African Problems from Calvin College on Vimeo.
Does the BOP address wealth creation?
As great as the BOP is, it a little flawed in that it does not really address the most important issue in development: how can the poor make a sustainable living in emerging markets?...how can we enable the poor to generate income and make it a sustainable revenue stream?
A Nation of Hyenas
This is the title from Tom Mullen's latest blog post "A Nation of Hyenas." As he says, he was inspired by watching Wild Kingdom, in which the cheetah caught and killed some food, and then a bunch of hyena's came and took the property away. Why? Because there were more of them, and they were bigger and stronger. Later that night, while watching a heated exchange between a liberal and a conservative on TV, Mullen heard the liberal give the justification for the government having the power to take away property, possess banks and auto companies, and force me to go to their schools and hospitals:
“That’s why we have a democratically-elected government and the people want the government to do something.”The first philosopher to really grapple with this issue was a guy named Thomas Hobbes. He said that humans are brutal people, who when left to their own devices will take other people's property, lives, and freedom. The only way to control such a brutal creature as man is to create an even more powerful and brutal government, one that will control him and keep him in line. The problem though is once you create a brutal and powerful government, how do you control that very government so that it doesn't take away life, liberty, and property?
It is the horrifying reality of what any government bailout or other redistribution of wealth represents. We as Americans have forgotten that all government action is exercised under exactly these circumstances: at gunpoint. That is the purpose of government, to exercise brute force on behalf of its constituents when it becomes necessary to do so. That is why our government was originally so limited. The founders of our nation believed that brute force was only justified in self defense. Therefore, government action was limited to protecting its constituents from harm by other people, whether it was harm by a fellow citizen or a foreign army.
Our founding fathers thought that a combination of separation of powers, federalism, checks and balances, limited government, and a religious civil society would do that. Sadly, years of liberal rule has eroded these founding principles, and now we are left only with the unrestrained brutal all powerful government- a hyena who will gang up on you and steal your property.
Development by Imitation
Economic development does not mean the wholesale and blind acquisition of the symbols and signs of modernity. Nor does it mean everything about indigenous Africa must be rejected in favor of alien systems. In fact, the true challenge for development practioners is how to use the existing so-called "primitive, backward and archaic" institutions to generate economic prosperity. These institutions can never be alienated from Africa's peasants. They are part of their culture. One cannot expect these peasants to suddenly renounce their age-old traditions and ways of doing things. Nor is such abjuration absolutely necessary, as demonstrated by the stupendous success of the Japanese. The Japanese did not have to become "Americanized" or "Sovietized" in order to develop.-Cheetah Index
Quick hits
-African Loft reports on the success of Zimbabwean farmers in Nigeria
-NYTimes profiles Jatropha
-A site that celebrates Nigerian Women is launched
-Nubian Cheetah discusses ideas on how to invigorate the informal sector
-The FT reports on remittances







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