My Beauty Best Teacher

Yet Rwanda has one huge advantage: the rule of law. No African country has done more to curb corruption. Ministers have been jailed for it. Transparency International, a watchdog, reckons Rwanda is less graft-ridden than Greece or Italy (though companies owned by the ruling party play an outsized role in the economy). “I have never paid a bribe and I don’t know anyone who has had to pay a bribe,” says Josh Ruxin, one of the owners of Heaven, a restaurant in Kigali, the capital.

The country is blessedly free of red tape, too. It ranks 45th in the World Bank’s index of the ease of doing business, above any African nation bar South Africa and Mauritius. Registering a firm takes three days and is dirt cheap. Property rights are strengthening, as well—the government is giving peasants formal title to their land.

In Africa, non-tariff trade barriers raise transaction costs and limit the movement of goods, services, people and capital across borders. To further development, African governments must embrace regional integration, break down these barriers and help Africans trade with each other.

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Women play a prominent role in informal trade, and in informal business activities in particular. These few figures are proof enough: four to five million women in West Africa are involved in collecting, processing and marketing shea nuts and butter, bringing in an estimated 80 per cent of their income (Plunked and Stryker, 2002). In Benin, women are 80 per cent of those involved in informal trade, and the figure rises to 95 per cent for informal marketing of unprocessed goods.
Madam Tinubu’s fame has no doubt been surpassed by the rich merchant women of contemporary Togo, known as the “Nana-Benz.” While these women have followed varying routes to success, they share several characteristics. Then, as now, these women conduct their businesses on the regional, and even international, stage, drawing on a long history of trading experience as informal actors. This results in their economic success, rather than initiating it. The volume of trade that passes through their hands enables them to regularly increase their economic and social capital (Humarau, 1999) even if their absence from or minimal institutional representation in formal political decision-making tends to minimize the crucial role that they could play in the development of intra-African trade. The factors that bring them together also separate them from most of the small-scale West African traders operating daily, who barely succeed in breaking even with their investments. All these groups constitute the major trading agents of both the formal and informal sectors.

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They started off from nothing in the Fifties and became amongst the richest in their homeland, Togo. They're the Nana Benz, the women who sell traditional African fabrics. Particularly the sought-after “wax” which is printed in Holland. They've made a fortune, they've travelled the world over, becoming a reference point for the fabric trade in Western and Central Africa. They were the first to purchase what, at the time, was a real status symbol: the Mercedes Benz. Hence their name. Today their fame has waned a little. And the economic crisis has affected them too. Turnover has dropped, but they're still here, together with their daughters – the Nanette, - to whom they've entrusted their work. You can find them in the Grand Marché in Lomé or in the boutiques around the city. Keeping always an eye on their businesses.

...tells us about life in the informal economy, what French culture classifies as System D. 1.8 billion people on the planet subsist through economic transactions that happen outside legal spheres and, by 2020, two thirds of our planet will be doing business in this domain. The future is the free market vs. the flea market.

The shops are stacked six feet high with goods, the streets outside are jammed with customers and salespeople are sweating profusely under the onslaught. But this is not a high street during the Christmas-shopping season in the rich world. It is the Onitsha market in southern Nigeria, every day of the year. Many call it the world’s biggest. Up to 3m people go there daily to buy rice and soap, computers and construction equipment. It is a hub for traders from the Gulf of Guinea, a region blighted by corruption, piracy, poverty and disease but also home to millions of highly motivated entrepreneurs and increasingly prosperous consumers.
Over the past decade six of the world’s ten fastest-growing countries were African. In eight of the past ten years, Africa has grown faster than East Asia, including Japan. Even allowing for the knock-on effect of the northern hemisphere’s slowdown, the IMF expects Africa to grow by 6% this year and nearly 6% in 2012, about the same as Asia...[continue reading]

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Across São Tomé dense cocoa plantations cling to the sides of monolithic pillars. A third of the archipelago is covered in the crop which makes up 80% of its exports. In the late 1990s, dips in production and prices left the island state heavily reliant on foreign aid and farmers on the poverty line. But since 2004 farmers have set up collectives, eliminating the middlemen who had been eating into their profits. With facilities to ferment the product and dry the cocoa to export they are benefitting from prices five times higher than those for cocoa seeds still in their treacly translucent liquid. São Tomé and Príncipe does not produce huge quantities of cocoa but what it does grow is organic and Fairtrade which goes down well with wealthy Western consumers.

Frank Osodi

The beginnings of Austrian lace exports to Nigeria can be traced all the way back to the 1960′s. Trade has been documented even prior to these dates through intermediaries, but it was during this time that the first Austrian lace pioneers sought personal contact with textile traders along Kosoko Street on Lagos Island.Withstanding political and historical ups and downs throughout the decades (such as the oil boom in the 70′s, the nationalization and various import bans on textiles in 1976 as well as 2005, the last one of which was lifted in 2010), the relationship has now grown to be much more than just trade. Nigerian traders soon started counter-visits to Austria, resulting in mutually trusting relationships, some of which have been continuing for over 40 years.

“Among the non-western economic blocs, East Asia has the highest intraregional trade, comprising largely intermediate goods, underpinning the region’s global trade and competitiveness agenda, and attracting ample FDI. In other words, Factory Asia has worked well. Factory Southern Africa has not. Southern Africa remains the least integrated region in the world despite the presence of a customs union and a free trade area.”Report co-author Sandeep Mahajan says a successful Factory Southern Africa requires dynamic trade based on nimble networks of multi-national firms. Formal and informal trade barriers have to be removed. “South Africa,” he says, “needs to open up, as well as integrate its own rural and advanced regions.” Current policy, he says, “tends towards mercantilism, at the cost of much larger gains from trade based on the principles of comparative advantage."

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Over the course of nearly 20 centuries, millions of East Africans crossed the Indian Ocean and its several seas and adjoining bodies of water in their journey to distant lands, from Arabia and Iraq to India and Sri Lanka.
Called Kaffir, Siddi, Habshi, or Zanji, these men, women and children from Sudan in the north to Mozambique in the south Africanized the Indian Ocean world and helped shape the societies they entered and made their own.
Free or enslaved, soldiers, servants, sailors, merchants, mystics, musicians, commanders, nurses, or founders of dynasties, they contributed their cultures, talents, skills and labor to their new world, as millions of their descendants continue to do. Yet, their heroic odyssey remains little known.
The African Diaspora in the Indian Ocean World traces a truly unique and fascinating story of struggles and achievements across a variety of societies, cultures, religions, languages and times.

One Hen empowers kids to become social entrepreneurs who make a difference for themselves and the world. We do this by equipping educators with educational resources to inspire kids to four values: financial responsibility, personal initiative, global awareness and giving back-website

Tiffany Amber design  Jane Hahn/Getty Image for the WSJ

The Nigerian lace industry also opens a window on broader change in Africa as a whole: As the consumer class expands, so, too, has the underground, informal economy...While the informal sector, from street-side welders in Kenya to sign makers in Senegal, has created jobs and lifted incomes, it also has strained urban infrastructure. As many as 90% of African city dwellers work in the informal economy, untaxed and unaccounted for, according to the Geneva-based U.N. International Labour Organization.Economists estimate that Nigeria's informal economy is at least as big as the country's roughly $200 billion formal one.

According to Kufuor, encouraging the private sector has been key to fighting poverty in Ghana. "We fight poverty with wealth creation, otherwise it's charity, and that's not what we came into government for," he said.

Fran Osseo-Asare, founder of Betumi and the African Cookbook project, discusses the importance of food as a way to cultural barriers. Fran reminds us of the relationship between national power, racism and cuisine.

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For Babatunde Fashola (Governor of Lagos state), the law is key. The changes he is overseeing improve infrastructure, create jobs, make money, even build him a soaring political career. But ultimately, the aim is to end the anarchy, he says. A city that does not function "creates desperate conditions for people and reduces their ability to resist temptation." Lapses can be minor, like driving on sidewalks or into oncoming traffic, or major, like violent crime. Fashola sees both as symptoms of Lagos' dysfunction, and he is tackling them by, in one approach, setting up a series of driver-improvement schools as well as, in another tack, employing area boys as cleaners and gardeners to beautify their neighborhoods. It's working. Orderly lanes are becoming the norm on the roads. And crime is down. From 2007 to 2008, armed robberies in Lagos fell 89%. From 2008 to 2009, car theft fell 54%. And murder more than halved, from 221 cases in 2007 to 94 in 2010. This rising sense of citizenship is revealing itself in another surprising way. Astonished then delighted by the transformation their new governor was effecting, Lagosians were happy to pay for it. By 2010 the governor was raising 70% of the state's income locally from taxes. By diminishing the importance of oil money handed out by the federal government and raising the role of local tax, Fashola has reconnected the state to its people. He takes that as a stamp of approval for his efforts to reverse lawlessness in government as well as across the city. "The capacity of a government to attract taxes is a very strong measure of its legitimacy,"

Oliver Wilkins documentary looks at Al-Darb-al-Ahmar, a district in Cairo where in the past highly skilled artisans plied their trade creating some of the world's most beautiful Islamic architecture...[continue reading]

Botswana is facing change. Its diamond bonanza, which accounts for nearly half the government’s revenue and over a third of its GDP, will not last much longer. Production has peaked and deposits may be exhausted by 2030. Growth has been slowing from an average annual rate of 13% in the first five years after independence to 5% in 2000-05 and 3% since then, including a 5% contraction in 2009-10. Last year it bounced back to 7% and is expected to remain at about that level for the next two years. But the government may not be able to keep spending at its present level of 40% of GDP.
For the first time since independence, the budget is in deficit. The World Bank has urged the government to slash its bloated public workforce by a quarter. But Mr Khama is resisting. With an official jobless rate of 17% (and a real one probably closer to 30%), he says he is loth to turf more people out of jobs. But neither, he insists, can Botswana go on living beyond its means.