How Many People Died Of The 1918 Spanish Flu in Kenya?

This is the abstract and excerpts from Andayi, Chaves, and Widdowson, a paper focusing on the impact of the Spanish flu on coastal Kenya:

The 1918 influenza pandemic was the most significant pandemic recorded in human history. Worldwide, an estimated half a billion persons were infected and 20 to 100 million people died in three waves during 1918 to 1919. Yet the impact of this pandemic has been poorly documented in many countries especially those in Africa. We used colonial-era records to describe the impact of 1918 influenza pandemic in the Coast Province of Kenya. We gathered quantitative data on facility use and all-cause mortality from 1912 to 1925, and pandemic-specific data from active reporting from September 1918 to March 1919. We also extracted quotes from correspondence to complement the quantitative data and describe the societal impact of the pandemic. We found that crude mortality rates and healthcare utilization increased six- and three-fold, respectively, in 1918, and estimated a pandemic mortality rate of 25.3 deaths/1000 people/year (emphasis added). Impact to society and the health care system was dramatic as evidenced by correspondence. In conclusion, the 1918 pandemic profoundly affected Coastal Kenya. Preparation for the next pandemic requires continued improvement in surveillance, education about influenza vaccines, and efforts to prevent, detect and respond to novel influenza outbreaks.

We noted, that in 1918, the crude death rates and healthcare utilization drastically increased, six- and three-fold, respectively and stayed relatively high until at least 1925. The sharp increase in health care utilization was certainly due to the pandemic and is corroborated by the anecdotal reporting of overwhelmed health systems. The very large majority of these cases would have been in the native population, though we had no data on race. The higher rates of mortality and facility visits after 1918 compared to before 1918 were likely due to improved reporting health facility expansion rather than prolonged pandemic transmission. Equally, it is plausible that several documented outbreaks such as the plague (1920) and smallpox (1925), also contributed to high reported mortality and morbidity in those late years studied. We estimate pandemic mortality from September 1918 to March 1919 to be approximately 25 deaths/1000 population and morbidity at 176/1000 population or an attack rate of 17.6% (emphasis added).

Read the whole (ungated) paper here.

Writing over at The Conversation, Andayi notes that overall the flu might have killed as many as 150,000 people in the Kenya Colony, or 4-6% of the population at the time. The Spanish flu (which actually probably originated in New York) could have killed anywhere between 1-5% of the global population.

The Spanish flu is believed to have come to Kenya with returning veterans who docked in the Mombasa port. The country was still a British colony at the time. In nine months the epidemic killed about 150,000 people, between 4% and 6% of the population at the time.

COVID-19 is nowhere near these mortality rates. The estimates I have seen (which for some reason are for “Africa” and not individual countries) suggest that between 300k and 1.3m people might die of COVID-19 on the Continent (see image with UNECA estimates). Proportionately, that would mean roughly between 12k – 51k Kenyans, or .03-.01% of the population (still absolutely catastrophic figures).

uneca

If you know of any country-level estimates please share in the comments.

 

How Good Are Datasets on Cropland in African States?

A number of papers (on agricultural productivity, conflict, food security, and impacts of climate change, for example) use cropland cover data as controls. How good are these data?

Here’s the abstract of a paper (open access) from Wei and co-authors:

Accurate geo-information of cropland is critical for food security strategy development and grain production management, especially in Africa continent where most countries are food-insecure. Over the past decades, a series of African cropland maps have been derived from remotely-sensed data, existing comparison studies have shown that inconsistencies with statistics and discrepancies among these products are considerable. Yet, there is a knowledge gap about the factors that influence their consistency. The aim of this study is thus to estimate the consistency of five widely-used cropland datasets (MODIS Collection 5, GlobCover 2009, GlobeLand30, CCI-LC2010, and Unified Cropland Layer) in Africa, and to explore the effects of several limiting factors (landscape fragmentation, climate and agricultural management) on spatial consistency.cropland

The results show that total crop-land area for Africa derived from GlobeLand30 has the best fitness with FAO statistics, followed by MODISCollection 5. GlobCover 2009, CCI-LC 2010, and Unified Cropland Layer have poor performances as indicated by larger deviations from statistics. In terms of spatial consistency, disagreement is about 37.9 % at continental scale, and the disparate proportion even exceeds 50 % in approximately 1/3 of the countries at national scale.We further found that there is a strong and significant correlation between spatial agreement and cropland fragmentation, suggesting that regions with higher landscape fragmentation generally have larger disparities. It is also noticed that places with better consistency are mainly distributed in regions with favorable natural environments and sufficient agricultural management such as well-developed irrigated technology. Proportions of complete agreement are thus located in favorable climate zones including Hot-summer Mediterranean climate(Csa), Subtropical highland climate (Cwb), and Temperate Mediterranean climate (Csb). The level of complete agreement keeps rising as the proportion of irrigated cropland increases. Spatial agreement among these datasets has the most significant relationship with cropland fragmentation, and a relatively small association with irrigation area, followed by climate conditions. These results can provide some insights into understanding how different factors influence the consistency of cropland datasets, and making an appropriate selection when using these datasets in different regions. We suggest that future cropland mapping activities should put more effort in those regions with significant disagreement in Sub-Saharan Africa.

Here’s what they did:

…. we compared the spatial agreement of cropland to assess the consistency of five datasets in the same location. These datasets were overlapped to generate a new composite map revealing whether and where the original datasets agreed on the same locations (Yang et al., 2017). Pixels of the composite map were assigned values ranging from 0 to 5. The highest value 5 represents the complete agreement, where all five datasets were consistent in cropland identification for a pixel. As the value decreases, spatial consistency between these crop-land datasets decreases. The lowest value with value 1 means that only one dataset identifies the pixel as cropland.cropland_cover

The best consistency of five datasets occurs in Egypt, with the complete agreement value of 47.86 %, while the highest disagreement is in Western Sahara, whose spatial disagreement is 91.08 %.

Some Policy Lessons from COVID-19

It’s has been illuminating watching African governments respond to the COVID-19 pandemic. Here are some lessons I have gleaned from their responses. For those interested, the IMF has a neat summary of county-level policy responses.

[1] We need a lot more descriptive studies of African economies:

COVID-19 was slow to spread in African states (a reminder of the Continent’s isolating from global transportation networks. The first concentrated cases were in Egypt, largely among tourists on Nile cruises). But once cases started appearing across the Continent, governments rushed to implement policies that were eerily similar to those being implemented in wealthier economies. Complete lockdowns, tax breaks, business loans, and interest rate cuts were first to be announced. Cash transfers followed, but even then from the standard purely humanitarian perspective and not as part of a well-thought out, politically-grounded and sustainable policy response. Forget that African economies are (1) largely agrarian and rural; and (2) highly “informal” (i.e. under-served and under-regulated). How do you implement a lockdown when 80% of your labor force is dependent on daily earnings and cannot stock up on food for days? And how do you tell people “wash hands regularly” when the vast majority of your population lacks access to reliable running water? Do African states have the capacity to sustainably deliver cash transfers to needy households throughout this crisis?

In short, African states’ policy responses to the pandemic so far are an urgent reminder of the enormous gaps that exist between knowledge production, policymaking, and objective realities in the region. Now more than ever, there is a need for socially and politically relevant knowledge production. To bridge these gaps, African governments should invest in making their economies more legible. Such investments should target better data collection as well as the establishment of strong academic departments with expertise in political economy and economic history, in addition to other economics subfields. There is absolutely no way around this.

For instance, what do we know about recovery patterns after recessions in different African countries? How will the current shutdown impact rural livelihoods? African states cannot afford to continue making policy from positions of ignorance, or to outsource economic thinking and policymaking. Collect the data. Analyze the data. Have the results inform policy.

Such efforts will go a long way in helping craft domestic narratives and counter-narratives of socio-economic transformation, and hopefully entrench reality-based policymaking, in addition to putting an end to ahistorical and apolitical policymaking. Policymakers must understand that their economies are not simply Denmark waiting to happen. 

[2] African governments should strengthen their policy transmission mechanisms: 

One of biggest mistakes in the history of economic thought was the invention of the notion of “formal” and “informal” economic sectors. This arbitrary distinction continues to blind African policymakers, and limits their abilities to craft transformative policies. In most African countries, governments fixate on minuscule “formal” sectors, and spend billions of dollars attracting mythical foreign investors to create “formal” sector jobs (and in the process subsidize transfer pricing and the creation of very costly enclave economies). Meanwhile, the same governments ignore “informal” and agricultural sectors, despite the fact that in most countries they typically account for significant shares of output (see images) and upwards of 80% of the labor force.

 

The failure to adequately serve and regulate “informal” and agricultural sectors leaves African policymakers with a set of very blunt tools when it comes to these sectors. How will African governments ensure that SMEs are not completely wiped out by this crisis? How will farm-to-market systems weather the logistical problems caused by large-scale shutdowns? What will be the impact on food prices?

It makes little sense to lower SME taxes or incentivize bank lending to SMEs if the vast majority of SMEs neither pay taxes nor borrow from banks. “Informal” sector workers are typically also not plugged into any skeletal social safety nets that may exist, such as health insurance or pension schemes.

For example, “[i]n Senegal one 2016 government/Millennium Challenge Corporation study found [that] only 15 companies pay up to 75% of the state’s tax revenue.”

Moving forward, African countries need to jettison the “formal” vs “informal” sectors distinction. As the primary source of employment, the “informal” and agricultural sectors deserve a lot more public investments targeted at both broader market creation (domestic and international) and productivity increases. Such investments would give governments important policy levers during both good and bad times. 

The fact of the matter is that agriculture and SMEs are the mainstays of African economies. It is about time that African states’ economic policies and budgeting reflected that reality. Failure to do so will continue to severely limit the efficacy of policy interventions, and leave governments wasting scarce resources attracting investments with very little multiplier effects in their economies.

[3] Elite complacency in Africa is about to get a lot more expensive: 

One need not be wearing a tinfoil hat to see the many ways in which African leaders continue to act like colonial “Native Administrators”. Some do not even pretend to care about aspiring to govern well-ordered societies. For almost six decades the global state system has accommodated elite mediocrity in Africa. During this period, the collusion between African and non-African elites in the pilfering of the region’s resources was balanced with aid money and other forms of support. 

That is changing. Western elites and publics have began to question the utility of foreign aid. Forgetting that the aid is what buys elite-level African alliances, they have come to expect loyalty from African states as a pre-ordained birthright. Many Western countries have also seen significant deterioration in the quality of their political leadership in the recent past, thereby exposing them to a range of domestic crises that will likely distract them into the medium term. China, the other major global player, is not ready to step into the void. 

And so African elites will be forced to step up. What do you do when, after decades of presiding over abominable public health systems that are totally dependent on the generosity of foreigners, you cannot get on a plane to seek medical care abroad? And how do you deal with a pandemic that hits the entire globe at once?

It is no secret that the Global Public Health architecture was built to police and contain disease outbreaks in low-income countries. This has allowed African governments to routinely globalize their public health emergencies and therefore get away with poor governance and lack of dependable healthcare systems.

The combination of an inward orientation of the “international community” and likely recurrence of truly global pandemics will mean that African states will have to build robust and sustainable domestic healthcare systems. It will no longer be a given that the American CDC or the WHO will swoop in with solutions. Under these conditions, failure to plan will likely lead to mass deaths in African states. 

[4] African progressivism needs a reset:

As Toby Green documents in A Fistful of Shells, modern African progressivism (defined as working towards broad-based transformative change) has a long history — going back to the 18th century. Men like Usman dan Fodio reacted to what they perceived to be elite complacency and moral depravity by organizing and seizing power. However, it is fair to say that the postcolonial variant of  progressivism in the region has run out of steam. In nearly every country, it has become permanently oppositionist and anti-establishment. Life out of power has infused it with a streak of expressive performativity that is increasingly divorced from the political and economic realities in the region, and sorely lacking in intellectual rigor (there are exceptions, of course). Arguably, the Thomas Sankara administration (with warts and all) was the last truly progressive administration in the region.

It is about time that African progressivism focused not just on criticizing those in power, but also on developing viable political programs that can win power. This will require organization, political education and communication that resonates with mass publics, genuine openness to knowing “the realities on the ground”, and a dose of principled ideological promiscuity pragmatism. The habit of waiting for perfectly enlightened voters and politicians under perfect institutional conditions effectively concedes the fight to the region’s shamelessly inept water-carriers. 

After 60 years in power, Africa’s ruling elites have become perhaps the most complacent lot in the world. Their destruction of higher education and the region’s intelligentsia in the 1970s allowed them to limit the role of ideas in politics and policymaking. It also helped that they found willing “apolitical” development partners in the “international community.” Even the most “progressive” among them care more about their countries’ rankings in the World Bank’s “Doing Business Index” than in the state of their “informal” and agricultural sectors. 

It is time to infuse African leadership with new thinking and moral foundations of social contracts. Only then will the region’s states be in a position to build the necessary resilience to weather emergencies like COVID-19, and provide necessary conditions for Africans to thrive at home and abroad.

Africa-China Fact of the Month

This is from the China-Africa Project:

In purely economic terms, China matters a LOT to Africa but Africa is effectively meaningless to China. Last year, China did more than $4.14 trillion in total global trade. So that means Africa represents just 4.8% of China’s global trade balance, effectively a rounding error for the world’s second-largest economy.

For some additional context, consider that China does more trade with just Germany ($225.7 billion)  and about the same with Australia ($194.6 billion) than it does with all of Africa.

More on this here.

 

Why has economic growth reduced poverty in some African states but failed in others?

This is from an excellent paper by Rumman Khan, Oliver Morrissey and Paul Mosley:

Between 1990 and 2012, for most of the developing world, poverty has halved or more than halved except in sub-Saharan Africa (SSA). The simple poverty headcount fell from about 60% to 15% in East Asia; 50% to 25% in South Asia; 20% to 10% in Latin America; but only from 57% to under 43% in SSA (Beegle, Christiaensen, Dabalen and Gaddis, 2016: 21- 22). This is despite more than a decade of impressive growth in SSA, averaging 5-6 per cent per year since the late 1990s (Devarajan, 2013: S9). Some countries did (almost) halve poverty, such as Ghana (McKay and Osei-Assibey, 2017) and Uganda (Kakande, 2010), and many achieved significant reductions. In contrast, populous countries such as South Africa and Nigeria, on the available evidence, have not achieved significant poverty reduction.

The authors note that the effects of growth on poverty reduction across Africa has been bimodal. And this is their explanation:

povertyTo explain variation within SSA in poverty reduction, we consider aspects of colonial experience associated with the emergence of differing potential for redistributive policies to emerge after independence. Following the approach of Myint (1976) and others, we classify SSA countries into two groups according to the economic strategies used by the colonial authorities, using pre-independence data on factors such as inequality, land ownership by Europeans and political participation by Africans (the process is detailed in Appendix A, with validation by cluster analysis). In smallholder production economies, African agricultural smallholders had economic and some political participation. In contrast, extractive production economies dominated by foreign-owned mines and large-scale farms fostered the emergence of an elite politics characterised by urban bias and capital-intensive production technologies. During the colonial period African economies became clustered around a bimodal structure, which provided better opportunities to the poor in countries whose production was based on the development of labour-intensive smallholder exports than in countries whose growth strategy was based more on capital-intensive mines and large farms. We then test if the growth elasticity of poverty differs between these two groups of countries, using available (PovcalNet) poverty data since 1985, noting that mean growth rates for the two groups were very similar. The analysis shows that the smallholder group significantly outperformed the extractive group, smallholder experience is a significant predictor of poverty reduction, and inclusion of other potential explanatory variables does not alter the conclusion.

I recommend you read the whole paper (including the very rich appendix).

Africa-China Fact of the Day

This is from the South China Morning Post:

The number of students globally joining Chinese universities surged sixfold in the 15 years to 2018, rising from 77,715 in 2003 to 492,185 last year, according to the Chinese Ministry of Education.

Over the same period, the number of African students in Chinese higher-education institutions increased an astounding fortyfold, jumping from about 1,793 in 2003 to 81,562, last year, according to the Chinese education ministry’s statistics.

With that increase, Africa had the most students in China of any region after Asia, which sent 295,043 students to Chinese universities last year.

On the political transition in Angola

This is from Presidential Power:

The August 2017 elections in Angola represented a case of electoral succession in the sense that the new president comes from the same party of the outgoing president; however, it is a case of nonhereditary succession. João Lourenço was not Dos Santos’ first choice (he even tried to revert the MPLA candidates’ list for the 2017 elections) and speculation around the leadership succession pointed to his eldest son, José Filomeno dos Santos (aka Zénu).

Screen Shot 2019-03-18 at 5.21.55 PM

In less than a year in office, the new president began to remove members of the Dos Santos clan from Angola’s epicenter of political and economic power. João Lourenço deposed Dos Santos’ daughter and one of the richest woman in Africa, Isabel dos Santos, from the presidency of the state oil company, Sonangol. Also, her half-brother, José Filomeno dos Santos, was removed from the chairmanship of Angola’s $5 billion USD sovereign wealth fund (FSDEA).

… these removals have been effortless, as the former president’s family neither receives the MPLA’s support nor enjoys popularity. Furthermore, João Lourenço’s actions affecting Dos Santos’ family increased his popularity levels inside and outside the ruling party and thus didn’t allow the former president to stand up for his targeted family members, as pointed out by Ismael Mateus.

Angola’s political transition is an important lesson on the dangers of institutionalized autocracy. Dos Santos’ investment in a strong MPLA made possible the seamless transition and the power shift to the new president. Convinced of continued stability in the absence of the old president and the party’s ability to handle the transition, Angolan elites were willing to let Dos Santos step down and to bandwagon with the new president once he ascended to power.

“Smarter” (and arguably weaker) autocrats know to ensure that there is no alternative focal center of power around which elites can mobilize — whether in the form of an institution or individuals. This is the Biya/Museveni/Obiang/Eyadema/Afeworki playbook.

All to say that autocracies with strong ruling party traditions on the Continent (in Angola, Ethiopia, Mozambique, and Zimbabwe) are different from the individual-centered operations across the region — in places like Cameroon, Chad, Burundi, Rwanda, Togo, and Uganda.

More broadly, across the Continent turnover dynamics are interesting in autocracies and democracies alike. Botswana’s incumbent Mokgweetsi Masisi quickly fell out with his predecessor Ian Khama after taking office. South Africa’s Cyril Ramaphosa will likely go after Jacob Zuma after this month’s election. Policy and personal differences between incumbents and their predecessors hold the promise of creating stronger incentives for institutionalized rule and constitutional protections of retired elites’ civil liberties (and the wider population as well).

 

Evidence shows that racial isolation drives down ANC support among White South Africans

This is from an excellent new paper by de Kadt and Sands in Political Behavior:

de kadt and sandsThis study investigates how political behavior is shaped by one central outcome of segregation—racial isolation—in post-apartheid South Africa. We focus on the relationship between sustained white isolation-the probability of a white person encountering a non-white person in their local context (Massey and Denton 1988)-on white racial voting. South African elections have been marked by some degree of racial voting since the advent of democracy in 1994; white South Africans havtypically voted for “white” parties such as the Democratic Party, the New National Party, the Freedom Front Plus, and the recently conglomerated Democratic Alliance. Scholars of the region have gone so far as to refer to South African elections as a “racial census” (Mattes 1995; Johnson and Schlemmer 1996; Lodge 1999; Ferree 2006, 2010). Our central contribution to this literature is to show that racial voting among white South Africans tends to increase as a function of local white isolation.
……. White South Africans living among other whites are less likely to vote across racial lines, measured as voting for the majority-black African National Congress. At the ward level, greater white isolation in post-apartheid South Africa, even conditional on ward demographics and economic status, leads to lower aggregate support for the ANC. At the individual level, whites living in areas of high white isolation, where inter-racial mixing is limited, are less likely to vote for the ANC than whites who live in less segregated areas.

You have to visit South Africa to appreciate the level of racial segregation in the “Rainbow Nation.”

I wonder how vote choice among white South Africans will evolve if and when the ANC becomes threatened by parties to its left. Presumably, expressive voting for the DA and other smaller parties would not seem so attractive under such a scenario.

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.

 

Litigating Nelson Mandela’s legacy

This is from Sisonke Msimang over at Africa is a Country:

Today, many younger South Africans suggest that Mandela made too many compromises.  Twenty-six years into the new era, there is a lively, angry, often chaotic debate about the role and place of the father of our nation.

umkhontoWhen the student protests began a few years ago on South Africa’s university campuses some of the young activists accused Nelson Mandela of betraying the revolution. They called him a sell-out. The elders were alarmed and hurt, but the young ones were convinced. I am of the generation that lies between the two: I was not old enough to fight for freedom but I am old enough to remember Mandela. I know that he was no sell-out.

I agree with one point the youth made however:  the revolution was betrayed. I do not place the blame at Madiba’s feet though. The blame for that lies squarely with the generation of leaders who followed him—my parent’s generation. The freedom fighters whom I respected and loved in Lusaka and Nairobi, returned home. They put down their guns and they picked up their spoons and they began to eat. Many of them have not stopped eating since. I can think of only a handful of them who I would trust with my future.

madiba

Mandela’s successors have all been lacking in one key respect or another. Thabo Mbeki’s cerebral approach to government did little to inspire the ANC’s rank and file. Jacob Zuma was a corrupt and ineffectual huckster masquerading as a populist. Cyril Ramaphosa is a multimillionaire who, while inspiring confidence among the business and middle classes, will struggle to earn the confidence of millions of South Africans who are either unemployed or underemployed.

The best hope for protecting Madiba’s legacy would be an honest and good faith attempt at solving South Africa’s structural problems — historical legacies of apartheid, lack of dependable (manufacturing) jobs, quality of education, and a fraying social sector (with crime topping the list).

Unfortunately for everyone involved, so far the country has oscillated between boardroom politicians scared stiff of the (forex) markets, and a cast of “populists” eager to exploit their control of the state for personal enrichment.

My view is that Mandela’s legacy will survive the ongoing process of undoing the legacies of colonialism/apartheid. As Msimang points out, Mandela was not a pacifist saint but a strategic politician driven by his quest for the total liberation of South Africans. To that end he was willing to play politics or resort to armed resistance, as needed.

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

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.

The U.S. tops list of FDI projects in Africa

This is from EY’s 2018 Africa Attractiveness report:

Screen Shot 2018-10-30 at 5.27.43 PMMature market investors continue building on their deep-seated ties to Africa. In 2017, the US remained the largest investor in the continent, with a noticeable 43% growth in FDI projects. Western Europe, another well-established investor, also built on its already strong investments into Africa, up by 17%. However, emerging-market investments fell, with both intra-regional and Asia-Pacific investment declining by 12% and 13%, respectively. This is, in part, attributable to slower emerging markets growth and weak commodity prices.

It is odd that this report does not give the dollar values of FDI projects. But it has a summary of the distribution of projects and the number of jobs created. This is an important indicator because it reveals projects’ real impact on the real economy — as opposed to projects designed to create enclave economies. Notice that China is far and away the leader on this metric — with Chinese projects resulting in nearly three times as many jobs as American projects (FDI from Italy appears to be particularly good at producing actual jobs).

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Here’s another interesting observation on the sectoral focus on FDI projects from the report:

Over the past decade, we have discussed a shift from extractive to “consumer-facing” sectors, thanks to Africa’s growing consumer market. Mining and metals, along with coal, oil and gas, previously the major beneficiaries of FDI flows, have slowed, while consumer products and retail (CPR), financial services, and technology, media and telecommunications (TMT) have risen.

In 2017, FDI shifted somewhat, with consumer-facing sector investments slowing, in line with challenging operating conditions. The focus changed instead to manufacturing, infrastructure and power generation.

And finally, here are of “FDI-to-jobs” conversation rates. On this measure South Africa and Kenya stand out for their apparent inefficiency in converting FDI projects into jobs.

Screen Shot 2018-10-30 at 5.54.29 PM.pngMore on this here.