There is less (ethnic) favoritism in the allocation of public sector jobs in Kenya and Uganda than you might think

This paper from LSE’s Rebecca Simson in African Affairs goes against a lot of my priors:

The unfair distribution of public sector jobs is a common grievance in many societies, but arguably more so in ethnically polarized ones. Using census data from Kenya and Uganda, two countries with a history of ethnic conflict, this article examines how public employment is allocated in multi-ethnic societies by studying the correlates of holding public sector jobs. The results demonstrate that the public services of Kenya and Uganda are first and foremost comprised of educational elites with considerably higher average levels of educational attainment than across the labour forces at large. However, when education is controlled for, highs-killed women and candidates from less developed districts are more likely to work for the state than others. As a result, public sector jobs are more equitably distributed along gender, regional and ethnic lines than education alone would predict. I hypothesize that formal policies to promote regional equity in the provision of basic services in combination with affirmative action measures are contributing to creating comparatively inclusive public services.

public sector workers

Interestingly, the article finds Moi’s presidency in Kenya to be an outlier:

With one exception, the presidency of Daniel Arap Moi in Kenya, there is little evidence of an employment advantage for coethnics of past or current presidents.

You can read the whole paper here.

Along with neopatrimonialism, ethnicity has become a catch-all explanation for everything in Africa. It is great that more and more scholars are interrogating the data on these concepts, and in so doing uncovering patterns that go against some of our most entrenched beliefs about the nature of politics in the region.

Of course region-specific levels of education attainment are endogenous. But one would think that they are sticky enough to make these results interesting. At a minimum, this is a call for a more careful description of baseline conditions against which to measure ethnic favoritism in Africa’s public sectors.

Trends in trade and influence in Africa

Here are some interesting figures from the Center for Strategic & International Studies. Between 2010 and 2017 trade between African states and China rose from $91.2b to $165.4b. For the U.S. total trade volume contracted from $80.3b to $36.7b (admittedly some of this driven by declining oil prices). All major Western countries saw a decline in their trade volume with the Continent.

trade trendsGermany is the only major Western country that saw its trade volume with African states increase over the same period.

These figures also underscore the recent narrowing of the Red Sea – with Gulf states pushing for ever closer ties with African governments. A lot of focus has been on the geopolitical aspects of this shift (with Qatar and Turkey jostling for influence vs Saudi Arabia and other Gulf states). But as the trade data suggest, trade is also an important feature of the evolving Afro-Arabia relations.

Overall, it is likely that African states’ economic policies and regulations, as well as votes at the UN, will shift to reflect the changes in the strength of the Continent’s trade links.

More on this here.

Japan is trying to stem the decline of its economic influence on Continent with a new joint insurance product with African Trade Insurance Agency and a Saudi bank. The U.S. is about to launch the U.S. International Development Finance Corporation.

 

Former US Ambassador to Kenya lobbying to stop South Sudan war crimes court

This is from Foreign Policy:

The South Sudanese government hired Gainful Solutions Inc., a California-based lobbying group, for a two-year contract worth $3.7 million to boost ties between South Sudan and Trump administration. As one part of the overall contract between the South Sudanese government and the lobbying group, Gainful Solutions will push to “Delay and ultimately block establishment of the hybrid court envisaged” under a 2018 peace deal between the government, led by President Salva Kiir, and his longtime rival, opposition figure Riek Machar.

Gainful Solutions is run by Ranneberger, U.S. ambassador to Kenya, speaks at news conference in Nairobi, a former career U.S. diplomat who served as ambassador to Kenya from 2006 to 2011, and the lobbyist Soheil Nazari-Kangarlou. Constance Berry Newman, a former senior State Department and U.S. Agency for International Development official under the George W. Bush administration, is also named a consultant on the project for a $5,000 fee, according to public disclosure filings from the Department of Justice.

The U.S. government is funding the process (through the African Union) of setting up the court, to the tune of $4.8m.

Here is Human Rights Watch on the court:

The Hybrid Court for South Sudan, set out in the country’s 2015 and 2018 peace deals, could be an important way to hold perpetrators to account for horrific abuses committed in a conflict characterized by unlawful killings, torture, enforced disappearances, rape and sexual violence, and destruction of property. More than four million have been forced to flee their homes.

The court, which would bring together judges and prosecutors from South Sudan and across Africa, is urgently needed to curtail impunity for serious crimes that continue to fuel a cycle of violence in the country. As Human Rights Watch has documented, the country’s domestic court system is not prepared to handle such sensitive, complex cases.

In 2014, the African Union undertook an unprecedented Commission of Inquiry on South Sudan, detailing the serious crimes committed by all parties to the conflict. And since the 2015 peace deal was signed, the AU Commission has been trying to secure approval from the South Sudanese authorities for the initial steps required for the hybrid court’s creation.

Everyone is rightfully outraged. More than 400,000 have died since South Sudan descended into civil war and millions more were displaced.

These revelations also highlight the many challenges the court is likely to face if and when it is eventually set up. South Sudanese political elites (on both sides of the post-2014 conflict) are not particularly keen on facing justice for atrocities committed against civilians and armed actors. It is also unclear if Juba’s friends in Kampala, Nairobi, or Addis have any incentive to inject yet another variable into the ongoing efforts to establish a modicum of stability in South Sudan.

Moral outrage alone will not move the needle. The court’s success will depend on how much pivotal actors within IGAD are willing to lean on Machar and Kiir.

As far as lobbying in Washington, DC goes, this is yet another reminder that even weak states like South Sudan are not passive members of the international system. While their options are limited on account of their position in the hierarchical structure of the state system, they still have agency and have a variety of tools at their disposal through which they can influence the behavior of much more powerful states. See also here.

China & Civic Architecture in Africa

China just finished a 150 million Yuan four-year project to build Burundi a new presidential palace in Bunjumbura. This is but one of many installments of China’s ongoing influences on civic architecture on the Continent. The Burundian presidential palace is grand, and sitting on an elevation appears to have been designed to project the occupant’s power. While likely not the best use of that much money in Burundi, it is an important investment in the physical manifestation of Burundian stateness.

Other major civic buildings on the continent funded and (to be) built by China include the African Union headquarters in Addis Ababa, Ethiopia, the ECOWAS headquarters in Abuja, Nigeria, and Senegal’s Museum of Black Civilizations in Dakar.

dakarmuseum.jpg

The Museum of Black Civilizations in Dakar, Senegal

Concerns over costs (and espionage) aside, one of the under-appreciated effects of Sino-Africa relations in China’s continuing influence on African architecture. From train stations, to hotels, to high-rise apartment blocks, to libraries, China’s influence is making an indelible mark on Africa’s landscape. At the moment much of this appears to be cut-and-paste jobs with little, if any, African influence. But it is ineluctable that over time many of these foreign designs will be infused with local sensibilities and tastes in the continuing process of architectural evolution on the Continent (no more fake marble and chandeliers please!).

It is fair to say that the state of civic architecture in many African states is wanting. Many civic structures exist as physical embodiments of the malaise afflicting the African state.  The last golden age of public buildings died with the independence generation. The era’s designs focused on function, but also the implicit desire to project state power — Dar es Salaam’s austere public buildings with their long hallways and exposure to the elements (for ventilation) quickly come to mind. The economic crises of the long decade (1980-1995) virtually stalled much of the region’s architectural evolution as far as civic buildings were concerned.

The current iteration of Sino-African relations is changing this. More capitals (sub-national, national and regional) are seeing the construction of civic buildings befitting their stature. The influence of these developments will likely travel beyond their aesthetic impacts on Africa’s architectural landscape. Civic buildings are also monuments to the idea of the state.

 

East African Community Facts of the Day

This is from Charles Onyango-Obbo in The EastAfrican:

eactrade.pngIn the year 2000, Ugandan exports to Rwanda were worth $9 million. By the 2017/2018 financial year, this figure had shot up to $197 million, against imports of $20 million, giving it a surplus of $177 million, despite the icy relations currently prevailing.

In the same period, in a reversal of fortune, Uganda for the first time registered a $122 million trade surplus with Kenya, with exports worth $628 million and imports worth $505 million.Though Uganda hardly invests any serious money in agriculture, the country is now the EAC’s bread basket.

Kenyan business people travel as far as the remote parts of western Uganda to villages whose names they can’t pronounce, and put a deposit on food crops before they are harvested. None of this happens as a result of state policy, but rather the invisible hand of integration. The magic happens in that “invisible” East Africa.

Despite the circular firing squad that is the relationship between East Africa’s heads of state, the economic incentives for ever greater integration in the EAC remain strong.

Next in line to join might be the DRC. Then perhaps Somalia. Ethiopia might be interested, too.

Is Kenya prepared to go to war with Somalia over a disputed maritime territory?

Dzl_1dDXQAAJ3kdOn Saturday the Kenyan foreign ministry recalled the Kenyan ambassador in Mogadishu and asked his Somalia counterpart to leave the country. This followed an alleged London auction of oil blocks in a disputed maritime zone by the Somalia government.

A Kenyan official characterized the auction as an “unparalleled affront and illegal grab at the resources of Kenya” that would “not go unanswered”.

The government of Somalia has since disputed the charge, and in a well reasoned letter asked the Kenyan government to reconsider its actions. Earlier, a Kenyan foreign ministry official had sought to de-escalate the situation by clarifying that the two ambassadors were merely asked to touch base with their respective governments in order to facilitate consultations.

19550580_401Kenya and Somalia hold rival claims on a triangular maritime territory in the Somali Sea (see image). The matter is currently under consideration by the International Court of Justice (ICJ).

It is worth noting that Kenya and Somalia have not had the best of historical relations. In the 1960s Mogadishu supported an irredentist movement in northeastern Kenya. The rivalry cooled down during Somalia’s years of civil war. During the same period Kenya stumbled upon a policy of supporting any and all efforts to keep the conflict and instability on the Somalia side of the shared border. The latest expression of the policy has been to support the state of Jubaland, a matter that goes against the interests of Mogadishu. Jubaland State President Sheikh ‘Madobe’ Ahmed visited Kenya in December 2018, likely on a mission to strengthen intra-clan alliances and support from Nairobi. Kenya is a troop contributing country (TCC) under AMISOM, and for a variety of reasons remains to be a weak link in the fight against Al-Shabaab, the terror group.

The dust up between Kenya and Somalia reflects larger geopolitical contests for influence in Mogadishu. It is reasonable to assume that the dispute over the oil exploration blocks will not be restricted to the two countries. In addition to interested Western private energy firms (and their home governments), Mogadishu is likely to get support from its friends in the Gulf and Turkey. Meanwhile, Kenya’s primary leverage will be its important role in AMISOM. A fallout with Nairobi would likely cause serious problems for Mogadishu, and pose a serious challenge to Somalia’s territorial integrity — Jubaland may find support to sue for independence from Mogadishu.

For now, both Kenya and Somalia have expressed public commitments to respect ICJ’s ruling regardless of the outcome. This is encouraging. Existing research suggests that states are less likely to escalate tensions if they commit to legal means of settling territorial disputes.. Indeed, Nigeria and Cameroon provide a good example of two countries that managed to settle a border dispute in a potentially oil-rich area amicably.

All to say that I don’t think Kenya is going to war with Somalia any time soon.

 

Why does Al Shabaab target Kenya?

Ngala Chome, PhD candidate at Durham University, has a great review of Al Shabaab recruitment and attacks in Kenya since 2011, and why the group has been able to stage a lot more attacks in Kenya (96.4% of recorded attacks between 2008-16) relative to other troop contributing countries engaged in Somalia (see map):

Screen Shot 2019-02-03 at 10.50.23 AM.pngKenya may have suffered these attacks since it is considered a key ally of the West. But why is Al-Shabaab (an Al-Qaeda affiliate) targeting Kenya more than it is other countries in the region, such as Ethiopia and Uganda, which also have close ties with the West and have fought Al-Shabaab in Somalia? To what extent does Al-Shabaab attack Kenya for the reasons it publicly gives? Will Al-Shabaab, for example, stop targeting Kenya if the Kenya Defence Forces pulled out of Somalia?

…. The Global Terrorism Database (GTD) recorded 14 more attacks before September 2011, and then 49 in 2012, 35, in 2013, 80 in 2014, 42 in 2015, and 45 in 2016. While the GTD is yet to provide figures from 2017, existing evidence shows that of the 302 trans-border attacks perpetrated by Al-Shabaab from 2008-2016, 3 occurred in Ethiopia, 5 in Uganda, 2 in Djibouti and 291 in Kenya. Brendon Cannon and Dominic Pkalya, in a recent article, have argued that beyond sharing a border with Somalia, Al-Shabaab targets Kenya more than other frontline states because of the opportunity spaces linked to Kenya’s international status and visibility, its relative free and independent media that widely publicizes terrorist attacks, a highly developed and lucrative tourism sector that provides soft targets, expanding democratic space and high levels of corruption. In sum, these variables play into Al-Shabaab’s motivations and aid planning and execution of acts that aim to fulfil the group’s quest to survive – as it losses more ground in Somalia – by maintaining its relevance on the global stage.

Read the whole thing here. For more on the African Union Mission in Somalia (AMISON), Paul D. William’s new book looks fascinating (I haven’t read it yet).

For a broader understanding of the dynamics driving insurgency in the Horn, check out Michael Woldemariam’s Insurgent Fragmentation in the Horn of Africa: Rebellion and its Discontents and Inside Al-Shabaab by Harun Maruf, Dan Joseph and Christopher Anzalone.

 

Is China Doomed to Fail in Africa?

This is from Wilson VornDick, a commander in the U.S. Navy Reserve, writing in the National Interest: 

It is unclear whether China could handle the financial repercussions of a larger, more systemic default or debt-forgiveness program across the African continent. Seeking relief, debtors to China would likely overwhelm existing mechanisms, like international arbitration, or China-backed forums such as the Export-Import Bank of China , China Development Bank , and Asian Infrastructure Investment Bank . More importantly, debt restructuring, recoupment, and, in the more extreme case, seizure may not be viable, reasonable, or sustainable for Chinese interests or presence continent-wide. Just such a dire economic scenario might push China to use its nascent military force to protect or even seize its interests. Looking back at the previous period of Great Power Competition more than a century ago, leveraging military might to force repayment was commonplace. The U.S. military made multiple incursions into Caribbean and South American nations as did the Western powers in Africa and Asia.

It is reasonable to assume that China would have little or no experience in any dire economic contagion across Africa. The one primary example, the take-over of Hambantota Port, was an isolated incident during calmer times, before the financial uncertainty stoked by a slowing global economy or the current U.S.-China trade war. Moreover, the port takeover has now become a watershed moment in Chinese behavior that has attracted significant international scrutiny and ire.

More broadly, VornDick articulates the potential merits (from a U.S. standpoint) of a “Let China Fail in Africa” strategy as part of Washington’s Great Power global competition with Beijing. The whole argument is worth a read.

A glaring omission in VornDick’s analysis, however, is the interests and roles of Africans in this whole game (note that this is a gap in the “China-in-Africa” genre more generally).

chinafricaA key weakness that I see in the “Let China Fail in Africa” strategy is that it vastly underestimates the extent to which Africans will be willing to work hand in hand with China to make the Sino-African relationship work.

China’s forays in Africa is creating complex tapestries of personal and institutional relationships that will become ever harder to undo. For example, in both electoral democracies and autocracies in the region, citizens have come to expect political elites to provide public goods — many of them financed and built by China. Demands for more of the same will likely only get stronger. The desire to secure funding for more public goods will likely push African elites even closer to Beijing. Furthermore, at a time when the U.S. is working hard to signal that Africans are not welcome on its shores, tens of thousands of African students are earning degrees in Chinese universities. Many of these students will probably go back to their respective countries and maintain ties with Chinese business and academic contacts. These kinds of investments in soft power will matter in the long run.

Global diplomacy is not just about crass material interests. It is also about values and shared commitments to respectful mutual cooperation. If African elites become convinced that they are better off bandwagoning with China, they will do so.

And most importantly, having made that choice, they will make specific investments (whether deliberately or not) to make their nations ever more closely allied with China. They will adopt specific technologies. Establish specific market relationships. Acquire specific weapons systems. And yes, more of their students will learn Chinese and go on to earn degrees in China. The closer the military, economic and “soft” ties, the more African elites will be willing to make costly investments in order to ensure that their respective states’ relationships with China work.

A good lesson in this regard is francafrique. The relationship between France and its former colonies in Africa is not winning any awards soon. But for almost six decades African elites have remained committed to the relationship and worked to give the French military free rein in the region and French firms access to vast natural resources. The French state, in turn, has worked to prop up the same elites despite massive economic and political failings.

The point is: China’s failure in Africa (if it comes to pass) is not what will determine the future of Sino-African relations. What happens before any such failure will likely matter more.

Here’s why African states value their economic and political ties with China

This is from an excellent essay by  in Foreign Policy:

…. when former U.S. Secretary of State Rex Tillerson raised a cautionary alarm for Africans to be wary of Chinese predatory investments just a few months ago, his lecturing tone did not go over well. Many African leaders reacted negatively to the underlying assumption that they were not qualified to figure out profitable from predatory investments on their own.

Sierra Leonean President Julius Maada Bio rebuked the warning as misguided, saying, “We are not fools in Africa. … At difficult times, when we needed help most, China was there for us.”

The expansion of Confucius Institutes across Africa is another part of the push worth engaging with. With more than 50 Confucius Institutes teaching Chinese language, as well as the Communist Party’s version of Chinese history and culture, more and more Africans have the chance to study Chinese and travel to China on cultural scholarships. In 2015, approximately 50,000 African students attended Chinese universities, compared with 40,000 in the United States and the United Kingdom. Elementary and middle schools in several African countries are now offering Mandarin as a foreign language.

I highly recommend that you read the whole thing.

H/T Judd Devermont

Ethics of publishing images of the dead

Yesterday at 3 PM four suspected Al Shabaab gunmen attacked the Dusit complex (14 Riverside) in Nairobi. Initial reports indicate that at least 21 people were killed in the attack. More than 700 people were at the complex at the time and were evacuated.

It is worth noting that yesterday was the third anniversary (15/01/2016) of the El Adde attack (also by Al Shabaab) on a Kenyan military base in Somalia. El Adde was the deadliest attack in Kenyan military history — with at least 141 soldiers reportedly killed.

As the Dusit attack was unfolding, media houses began publishing images from the complex. One image — in a New York Times story — drew the ire of Kenyans for showing two dead men slumped over their seats at a cafe. The Times claimed that this was standard policy.

Kenyans did not buy their explanation. And for good reason. At the very least, the image was insensitive. The two men were easily identifiable by their clothing.

First, it’s one thing to show the image of the dead covered in the streets (the ethics of which are also questionable), and another to show two easily-identifiable dead men slumped over their seats at a cafe. It takes a significant amount of empathy gap to not notice this difference. Second, and more importantly, Kenyans’ demands for respect for victims and their families are valid in their own right. They do not need further validation by what the Times does elsewhere. It is not ordained that what passes for Nice or New York ought to naturally pass for Nairobi. As an institution, the Times ought to have shown that it takes the complaints about the image seriously.

Here is a great explainer on why a lot of Kenyans took particular offense to the Times’ response:

… In the New York Times’ initial story about the event, penned by recently appointed East Africa bureau chief Kimiko de Freytas-Tamura, the photo editors decided to include an image (from the wire Associated Press) that has since spurred not one but two trending hashtags in Nairobi.

Taken at the popular Secret Garden Café tucked away in the compound, the grainy photograph depicts a scene of utter carnage. Two unidentified men’s lifeless bodies are slumped over on their tables, their laptops still next to them. It is a horrific reminder of the indiscriminate nature of terrorist attacks.

… What particularly angered Kaigwa — and many others — is how de Freytas-Tamura responded to the controversy: she reminded her critics that as the reporter, she did not choose the photo, and that people could take their concerns up directly with the photo department. She was factually correct, but to many Kenyans, she displayed an unnerving callousness.

“I think what that tweet showed to people is that they didn’t have someone who listen[ed] to them and empathize[ed] with them,” says Kaigwa. The reporter later deleted the tweet and instead shared the New York Times’ official policy on showing casualties during terrorist attacks.

Underlying the current discussion (and no doubt fueling the expressions of outrage) is, of course, a long history of the Western press being callous about publishing images of dead Africans. And it is in that context that the reaction from Kenyans should be understood. My hope is that this present discussion will force the Times and other media houses to review their guidelines on publishing images of the dead — regardless of their nationality.

Finally, and to echo Nanjala Nyabola, it goes without saying that the Times’ reprehensible editorial choice in this instance should not be used to attack individual journalists or the freedom of the press more generally.

Are Metros Overrated?

This is from a story in The Guardian:

The ITDP bemoans Africa’s obsession with metros. Lagos in Nigeria – the largest city in the world without a functioning mass transit system – has been trying to build a metro since the 1980s. In the latest of many incarnations, the project was supposed to begin operations in 2012 at a cost of $2.4bn (£1.9bn). Six years after the supposed start date, construction is “nowhere near complete”, says Kost.

Abidjan, the economic capital of Ivory Coast, began construction of a metro last year. The French-financed and -built line is projected to carry 500,000 passengers a day at a cost of $1.7bn. Dar es Salaam’s bus system, by contrast, has capacity for 400,000 people and cost less than a 10th of that – about $150m.

Addis Ababa in Ethiopia opened a Chinese-built and -operated light rail line last year at a cost of $475m. Shenzhen Metro Group has a deal to run it for the first five years.screen shot 2019-01-09 at 4.03.54 pm“With a metro, an international firm will often just parachute in its own system,” says Kost. “Bus rapid transit allows existing stakeholders to get involved. That’s what we did in Dar es Salaam and what we’re planning in Nairobi, where the bus bodies will be built in the city and local operators will look after tickets, fare collection and IT. It’s good for the development of the local economy.”

Regular readers know that I have a bias for Kost’s argument. Read the whole thing here.

H/T Dina Pomeranz.

How can African governments increase their bargaining power vis-a-vis China?

Folashade Soule has answers.

First, a reminder that African governments are not uniformly bad at negotiating with China:

….when you look closely at what happens on the ground, some African countries are much better at negotiating with the Chinese than others. Railway projects in East Africa appear to be a good example. In Kenya, the Standard Gauge Railway is the largest infrastructure project since independence from Britain in 1963. China Eximbank provided most of the finance for the first phase – 472 kilometres of track between Nairobi and Mombasa – at a cost of US$3.2 billion.

In neighbouring Ethiopia, an electric train line from Addis Ababa to Djibouti, which is also Chinese-financed, opened two years ago. The cost for this more expensive type of railway was US$3.4 billion – for 756 kilometres. Kenya claims that its railway cost more for reasons like the terrain and the need to carry higher volumes of cargo. At the same time, however, many believe other issues to have been at play – including failures around the negotiation process.

Second, there are Soule’s suggested remedies:

Involve everyone: When all relevant government departments are involved in a negotiation, it does take longer. The process is more coherent, however, and the resulting project is less likely to breach national regulations.

Empower negotiators: The Chinese often adopt a take-it-or-leave-it approach. In many cases, Africans are not confrontational enough in return. They don’t appreciate that China has a surplus of domestically produced materials they are seeking to offload, for example. Wiser negotiators will play China off against other countries seeking to finance infrastructure projects on the continent, such as South Korea or the United Arab Emirates.

Keep the public onside: China tends to be popular in Africa – more so than the US in around 60% of countries on the continent. Yet the public also see negatives: many think Chinese products are poor quality, while there is a growing perception that dealing with China tends to favour Chinese labourers.

Increase knowledge: African governments are still relatively new to dealing with China; they should take every opportunity to share lessons with one another. There is a role for African universities here. They should set up more centres of Asian studies to close the gap in information and knowledge.

I fully agree.

While it is true that China has geopolitical ambitions in Africa, a lot of Chinese infrastructure plays in Africa are commercial in nature. It is in China’s interest that these projects succeed. That means that African governments could get better deals (in terms of value for money) by doing their homework (on Chinese politics and commercial and institutional architectures) before chasing the money. Similarly, public opinion presents a potential bargaining chip — (the threats of ) transparency and robust public participation should force Beijing’s hand in settling for better deals (from the perspective of African governments). 

All this, of course, is predicated on the assumption that African elites get loans from China to finance infrastructure projects; as opposed to dreaming up projects in order to get loans that then find their way into private bank accounts. 

Read the whole thing here.

H/T Zainab Usman.

Mobile connectivity in Kenya is at 97.8%

Penetration of mobile phones reached 98 per cent at the end of June, up from 89 per cent during the same month last year, according to the Communications Authority of Kenya (CA) statistics.

“As at June 30, 2018, the number of mobile service subscriptions in the country stood at 45.5 million up from 44.1 million reported in March 2018. This also marked an increase of 13.2 per cent when compared to the 40.2 million subscriptions recorded as at June 330, 2017,” said the CA in its latest update. “This has resulted to increased mobile penetration of 97.8 per cent during the subject quarter from 95.1 per cent reported in the preceding quarter.”
The actual number of households with at least one mobile phone is probably 10 percentage points lower than the headline figure. Which is still a very high rate of mobile penetration. For comparison, the gross rate of connectivity in India stood at 65-75% last year.
The challenge for Kenyan entrepreneurs is to think of ways to exploit this potentially lucrative platform (beyond the exciting innovations in financial inclusion).

Public Debt in African States

This is from the IMF:

Screen Shot 2018-11-23 at 10.27.45 AMCountries in sub-Saharan Africa accumulated external debt at a faster pace than low- and middle- income countries in other regions in 2017: the combined external debt stock rose 15.5 percent from the previous year to $535 billion. Much of this increase was driven by a sharp rise in borrowing by two of the region’s largest economies, Nigeria and South Africa, where the external debt stock rose 29 percent and 21 percent respectively.

Export growth is not keeping up with rising levels of external debt:

….In 2017, the ratio was largely unchanged from the prior year, at an average of 138 percent. However, this ratio was close to double the average of 70 percent in 2010. Moreover, the average ratio masks wide disparity between countries. At the end of 2017 54 percent of countries in the region had an external debt-to-export ratio over 150 percent, as compared to 28 percent of countries in 2010 and the number of countries where the ratio surpassed 200 percent more than doubled, from 6 countries to 14 countries, over the same period. Most of these countries are ones that benefitted from HIPC and MDRI relief, including Burundi, Ethiopia, Niger, Senegal and Tanzania.

Bond issuance is dominated by a handful of countries:

Bond issuance by sovereign governments and pub- lic-sector entities in the region rose to $27 billion in 2017, a more than fourfold increase over 2016, driven to a large extent by a surge in issuance in South Africa to $19 billion from $4 billion in 2016, 70 percent of bond issuance in the region last year. An important factor was non-resident purchase of bonds issued in the South African domestic market. Bond issuance by other countries in the region totaled $8 billion, a tenfold increase from 2016, reflecting continued investors’ confidence and search for yield. Issuing countries in 2017 were Nigeria ($4.8 billion), Cote d’Ivoire ($2 billion), Senegal ($1.1 billion), and Gabon ($0.2 billion). Nigeria’s $3 billion Eurobond issuance marked the country’s largest such operation to date, and at end 2017, bond issuance accounted for one third of the country’s outstanding external debt.

Overall, while the data suggests that things may not be as bad as they were over the lost long decade (1980-1995), the trends are not encouraging. Total reserves as a share of external debt peaked around 2010 and have been in decline since. Screen Shot 2018-11-23 at 10.54.37 AM

It’s getting easier to do business in Africa

At least according to the World Bank Group:

Sub-Saharan Africa has been the region with the highest number of reforms each year since 2012. This year, Doing Business captured a record 107 reforms across 40 economies in Sub-Saharan Africa, and the region’s private sector is feeling the impact of these improvements. The aver- age time and cost to register a business, for example, has declined from 59 days and 192% of income per capita in 2006 to 23 days and 40% of income per capita today. Furthermore, the average paid-in minimum capital has fallen from 212% of income per capita to 11% of income per capita in the same period.

See the 2019 Doing Business Report here.

Here are some questions from last year on the integrity of the Doing Business Index.