The Nation Newspaper

Tag: Africa

  • Report: Financial inclusion ‘still a challenge in Africa’s low income communities’

    Africa’s financial environment is as competitive as other developing and high income regions in some countries, but access to finance remains a challenge, according to the Institute of Chartered Accountants in England and Wales  (ICAEW).

    In its report, Economic Insight: Africa Q3 2016, the accountancy and finance body notes that whilst some countries have excellent financial soundness access to credit remains a challenge for many Africans.

    The report undertakes a comparative review of the financial systems and regulations in Africa relative to the sub-Saharan Africa (SSA) region. It compares indicators of the financial environment (including credit metrics, risk evaluation and monetary policy), as well as regulation and supervision standards.

    The report looks at the role financing can play in economic development across the continent, and likely developments in the cost of financing in the coming years. In 2016 rankings, Rwanda performed best in SSA in terms of getting credit, followed by Zambia, Kenya, Ghana, Mauritius and Uganda. This likely stems from the fact that Rwanda has made six reforms to facilitate getting credit during the 2010-16 period, strengthening borrowers’ and lenders’ collateral laws.

    However, Regional Director, ICAEW Middle East, Africa and South Asia, Michael Armstrong, notes that “financial inclusion remains low in Africa. According to him while many of Sub-saharan Africa’s population have access to a formal banking system, in low income communities the degree to which individuals can access financial services is limited, especially when considering the limited availability of private credit.  He observed the situation could have real effects on economic growth if it remains unchanged. Governments hoping to drive prosperity should consider how they can increase access to finance.

    Quoting a report “Making Finance Work for Africa (MFW4A)”, he said  in 2015 only 23 per cent of African households had access to formal or semi-formal financial services adding that that there is evidently significant variation between countries’ levels of financial sector development.

    The report notes that South Africa and Mauritius have the highest Private Sector credit extension (PSCE))to GDP ratios on the continent, with South Africa’s figure estimated at 150 per cent in 2015 while Mauritius’ ratio is estimated at around 104 per cent.

  • ‘Africa is world’s most attractive equity market’

    Africa  is still one of the world’s most attractive markets for private equity, Boston Consulting Group (BCG) has said.

    The Financial Group, in a statement signed by Associate Director and a co-author of the report, Marc Becker,  said Africa remains one of the world’s growth opportunities for private equity investors, though with some facing serious challenges of recent.

    To generate the high returns that investors expect, however, funds should consider more flexible investment strategies and new types of corporate targets, the report stated.

    The report, titled: Why Africa Remains Ripe for Private Equity, notes that since the early 1990s, the number of private equity funds active in Africa has swelled from about a dozen to more than 200, while funds under management have risen from some $1 billion to upwards of $30 billion. This rapid growth, combined with the recent downturn in Africa’s largest economies, has raised concerns among some analysts that a bubble is emerging, the statement said.

    The report said most private equity funds and principal investors tend to invest only in minority stakes, with the goal of better managing their risks by leveraging robust local partners. While they overwhelmingly focus on a limited pool of investment targets: profitable companies with annual revenue of more than $100 million and proven track records.

    The report advised that alternative investment approaches are particularly important if funds are to meet the rising expectations of their investors. It said: “Increasingly, development finance institutions are being joined by global institutional investors that are far more focused on high returns. As prices for stakes in large African companies rise, it will become more difficult for private equity funds to deliver high returns. To fully capture the opportunities in Africa and earn high returns, private equity funds must adapt to the rapidly evolving market and consider more flexible investment strategies.”

    The report recommended that private equity investors consider other investment approaches, such as majority stakes, strategic partnerships, and evergreen funds, rather than only funds with timing constraints for divestiture. It also suggested that funds look at a wider range of targets, such as Africa’s growing pool of dynamic smaller companies with significant growth potential.

    “Too many private equity investors are pursuing the same kind of target with the same kind of deal structure,” said Patrick Dupoux, a BCG Senior Partner and a co-author of the report who leads the firm’s activities in North Africa.

    He added: “But look beyond the narrow cohort of Africa’s corporate elite and you’ll see that the continent offers real opportunities. Some of the most promising targets in Africa are companies that are still off the radar of most funds.”

    On their optimism, he stated that despite the rapid growth in funds and a crash in global commodity prices that has hit a number of African economies, the following factors support a positive outlook for private equity.The factors he itemised is that the amount of private equity and principal investment capital under management in sub-Saharan Africa remains very low relative to world standards with a mere 0.1 per cent of GDP. That compares with approximately 1 per cent of GDP in western countries.

    Others are that despite recent setbacks, most economists expect that GDP growth in Africa will rebound over the medium term, driven by a swelling middle class, rising foreign investment in infrastructure, and a growing skilled labor force. The statement also hinted that the pool of investment targets is growing with nearly 11,000 African companies having revenue of $10million to $100million and assets of $20 million to $200million yearly.

  • Africa’s clipper’s market worth €200m

    The clipper market in Africa has been valued at about €200 million with Nigeria accounting for a major share of it, selling 3.5 million units, said Philips Africa.

    This figure emerged at the launch of Philips Africa brand of clippers for the African market in Nigeria.

    During the launch at Protea Hotel, Ikeja, Lagos, the company said the new clipper was launched after a four-year research in several markets across sub-Sahara Africa.

    It added that the new Philips African clippers were designed to offer a more effective and precise haircut without the risk of cuts, rashes or bumps.

    “The Philips clipper was developed and extensively field tested, taking into account the core concerns that came out in the research- mainly the need to get that clean shave feeling, but to avoid the scratches, cuts and bumps that sometimes develop on the skin,” General Manager, Philips Personal Health, West Africa, Chioma Iwuchukwu-Nweke, said.

    The two clippers launched by Philips are Philips Clipper Pro,  ideal for professional barber styling and Philips Clipper Home, designed for personal use. Both products have been launched into the premium category of the clipper segment and would be contending with other market leaders.

    “Yes, there is load of competition out there. But we intend to beat competition. We have spent lots of time on research, finding out what the market wants. We know the market wants more, that is why we produced the Philips clipper.

    “Some clippers out there will give you the perfect precision, but  they cut the skin. Some are gentle on the skin but don’t give precision. But Philips is offering the best of both worlds. That is why we say ‘cut your hair and not your skin,” Nweke said.

  • Evolution of modern Nigeria and Africa – 1

    Osagyefo Dr Kwame Nkrumah the first president of Ghana and political avatar of modern African nationalism famously  prayed to God to grant us in Africa political freedom and all other things would be added unto us.  We are today much wiser than our leaders of yore because through experience we have found out that political autonomy and freedom are just the beginning of our long march to political and economic development. The optimism of those post-colonial days has now been replaced by the reality of the moment. Indeed this current reality is almost tinged with pessimism.

    What with ethnic wars in many African countries from the biggest of them Sudan which has now been divided into two and yet still plagued by the same problem of ethnic division and despair. The Federal Republic of the Congo has been virtually at war since the collapse of Belgian Congo in 1960. Senegal, Mali, Mauritania, Guinea-Bissau, Central African Republic, the inter-lacustrine  states of Uganda, Burundi and Rwanda and Mozambique at one time or the other since independence have witnessed internecine wars that almost tore them apart. Nothing is even settled in some of them up till today. Nigeria itself the African flying elephant went through three years of ferocious civil war between 1967 and 1970 leading to the loss of over a million souls. Even where there have been no wars in Africa, the various states have had to contend with the fissiparous tendencies presented by different tongues and ethnicities.

    This has been the case in places like Kenya, Zimbabwe,  Sudan and even the new state of South Sudan. The worst example of ethnic differences leading to genocide has been the case of Rwanda and Burundi where in spite of common language, people paid the supreme sacrifice for either being short like the Hutus or being tall like the Tutsis. In Nigeria, our ethnic and linguistic differences have been compounded by the religion of Islam and Christianity. The point to note is that peace which is a precondition for development is largely lacking in most African states. Where there is  some semblance of peace as in Rwanda, Uganda, Congo (Brazzaville) and Zimbabwe,  it is precariously based on the shifting sand of one-man rule and dictatorship and the worst kind of authoritarianism and corruption that by the nature of things would not last. Africans on their own and perhaps with a little prodding from outside have now realized that democracy works and makes room for stability. The journey has not always been smooth and many African countries have come to this  democratic crossroad by traversing one party rule, military dictatorship and some form of guided democracy. Times are however changing. Africa is not an island uninfluenced by happening in other parts of the world. But there is a lot of work to do.

    Nigeria is the cynosure of all eyes on the African continent and beyond:  Some Nigerians see divine hand of God in creating Nigeria.  Some Nigerians are wont to dismiss this kind of thinking. As far back as 1947, one of those aspiring to lead the country, Chief Obafemi Awolowo, borrowing a leaf from  Giuseppe Mazzini’s description of  Italy during its il Risorgimento and movement towards national unity as a geographical expression. Chief Awolowo said there were no Nigerians as there  are English, French or Germans and that Nigeria merely described an area around the Niger and the Benue rivers. He went on to argue that Nigerians primarily saw themselves as members of their ethnic groups before being Nigerians. This was probably true but the concept of Nigeria is an evolving concept just as being Hausa, Ibo or Yoruba. It is also not true that the people now called Nigerians had no contact with each other before the coming of the Europeans gingerly in the 15th century and much more forcefully in the 19th century when what is now Nigeria crystallized.

    From the north, the Hausa traded with the Kanuri of Kanem- Borno from where Islamic civilization came to Hausaland . The story of Bayejjidah coming to Daura to kill a snake called  sarki terrorising the local people after which as his prize he married the Queen of Daura is a way of explaining the significance of the ( East) in West African historiography . Bayejiddah then became the king of Daura and fathered the kings of the seven Hausa states of Kano, Rano, Zazzau, Katsina, Gobir, Zamfara and Bauchi. This same looking towards the East is seen in the Oduduwa legend in which Oduduwa is seen as the son of Nimrod king of Arabia who also took over Ile-Ife and became father to founders of the most important Yoruba kingdoms of Oyo, Ilesha, Ketu, Sabe, Otun Ijebu and Benin. In another variant of the Bayejddah legend, some states are regarded as Banza states among which Ilorin belongs. Ife and Benin relations even though couched in myth are no less significant as an indication of ties in the past between two distinct peoples –  the Edo and the Yoruba. There are stories of joking relationship between the Oyo and the Gobirawa and between Kanuri and Yoruba. The people of the Niger Delta were also heavily influenced by the Benin kingdom just as the coastal Yoruba up to present  day Lagos  witnessed some form of Benin over-lordship.

    The western Igbo,  like the people of Onitsha Asaba and all the western periphery of Igboland, were directly influenced by the Benin kingdom. The area now known as the Middle Belt of Nigeria at one time or the other came under the suzerainty of the Kwararafa Empire based in Wukari. The influence of this largely forgotten civilization extended to the Cross River and Benue valleys as well as to Zaria and  Kano. Even if the degree of contact among our different peoples in the past are buried in ancient history and mythology, this is not the case with our languages which apart from Hausa and Kanuri but including fulfude  belong to the same kwa branch of the Niger- Congo family of African languages. Migration  is a common factor in human history and people in Nigeria have been influenced and impacted by series of movements, some rapid others imperceptible. The effect of this is the fact that Nigerian people are products of ethnic miscegenation. For example many of the Ibo people are perhaps more Igalla than Igbo especially in Delta and  Anambra  states. Trade promoted inter-ethnic relations in precolonial Nigeria. For example, the Hausas  and the Kanuris traded with the Yoruba buying kola nuts in exchange for cows  and horses.  The cavalry forces on which the Oyo built their formidable empire could not have been done without the provision of horses from the north since Oyo had no indigenous horses of its own. The Nupes were apothecaries and Berbers in Yoruba land. The Alaafin Sango in the 15th century had a Nupe mother. Ife as earlier mentioned provided prince for the Benin kingdom and many parts of eastern Yorubaland were influenced by either Nupe or Benin civilization. By the time of the jihad of Usman Dan Fodiye, many parts of Nigeria came under one political and religious influence without attention paid to ethnicity.

  • Jumia Africa founder launches energy drink

    A new energy drink, Kabisa, has entered the beverage market with a mind-set of providing soul soothing and satisfying human thirst, according to Mr Tomasz Nowowiejski, producer and promoter of the product.

    Nowowiejski, who is the Chief Executive Officer (CEO) Mutalo Group and former MD for Kaymu, says Kabisa energy drink promises to rule the beverage market with its natural flavours designed, specifically to suit African taste.

    Kabisa is a product of Mutalo Group jointly owned by Nowowiejski and Mr Norbert Suchonski.

    Although Kabisa drink is produced in Poland, Nowowiejski said it was specifically blended for African people’s taste with their lifestyle in mind.

    “It is a product made only with high quality ingredients and it is available at an affordable price,’’ he said.

    Kabisa energy drink is outstanding among its competitors due to its natural flavours designed specifically to suit African taste whose uniqueness has been overlooked by leading energy drink brands.

    The CEO said the Kabisa drink possessed the benefit of a great taste that gives energy.

    It is made with fine ingredients and canned in high quality aluminium cans that are manufactured in Poland.

    Kabisa has categories with two distinct tastes: Classic and Tropical.

    “We have been working hard on the products; following series of research to really know Nigerians taste and be able to produce carbonated energy drinks to meet that taste.”

    “The success story is that those who have tried our Kabisa have loved it and cannot wait for it to be launched in the stores.” Nowowiejski says.

    Mutalo Group, with headquarters in Poland has positioned itself to offer European products of great quality and to the African markets.

    “Our vision is to become a leading Fast-Moving Consumer Goods (FMCG) company in Africa,’’ Nowowiejski said.

  • Noah’s Ark eyes top spot in Africa’s ad agency rankings

    Noah’s Ark eyes top spot in Africa’s ad agency rankings

    Behind every great brand is a great agency.” This statement, an adaptation of a saying: “Behind every successful man is a woman”, appeared in the first paragraph of Loeries website official ranking homepage category.

    Loeries has remained one of the most-vibrant competitors to Cannes’s Lion, a global marketing and artistic award, which holds in France yearly.

    In the recent Loeries ranking by agency 2016-region, excluding South Africa category, Noah’s Ark occupies the ninth spot. It is also the only Nigerian advertising outfit among the top 15 agencies. With its recent global affiliation with Denstu Aegies Network, the firm has, indeed, has a tall ambition of becoming one of Africa’s top agencies.

    Dentsu Aegies, a marketing communication agency with presence in 145 countries, five continents, 35,000 workers, last week said it would enter into partnership with Noah’s Ark  for a year with possible extension.

    Last year, the agency won the Grand Prix at the Lagos Advertising and Ideas Festival (LAIF), organised by the Association of Advertising Agencies (AAAN). It has consistently remained in the top five for five years.

    However, ranked among TBWA/RAAD from United Arab Emirate (UAE);  J. Walter Thompson from Kingdom of Saudi Arabia, Memac Ogilvy- Dubai, J. Walter Thompson- Beirut, FP7/DX8, Cheil Worldwide- Dubai, J. Walter Thompson-Dubai and Memac Ogilvy- Doha, the Group Managing Director of Noah’s Ark, Mr. Lanre Adisa, said “today, we are the most-celebrated within and outside Nigeria”.

    Now in it is sixth year, the Loeries Official Rankings provides authoritative and independent indication of ‘who is who’ in the brand communications industry across Africa and the Middle East.

    “The rankings are calculated on a methodology that allocates points to brands, agencies and individuals based on results from the Loeries Creative Week, held in August,” said Loeries Chief Executive Andrew Human.

    During an interactive session with newsmen in Lagos last week, Adisa said Noah’s Ark decided to embrace global affiliation to play at the top level in Africa and worldwide.

    “Why Dentsu Aegies? At different fora in the industry, I have been a believer of collaboration. If you want to go far, you go together. I believe to go far, you have to collaborate at the global stage. At various points, I have spoken against isolation.

    “For us, Denstu is one of the best global agencies with the highest growth rate. Right from our first contact with their team in Nigeria, we discovered that they are not just here to mark time. We could see testimony in their local media affiliate agency, MediaFuse Nigeria. Today, it is the biggest media agency in Nigeria and West Africa,” he said.

    Adisa believed that having won local and international awards consistently with its creative outputs for local brands, with some of its unapproved and controversial creative jobs such as Boko Halal among declared winners at various international advertising awards such as Loeries, Lueza’s Archive, which is regarded as the world Bible of advertising, Noah’s Ark‘s ambition to become a top player in Africa is because the agency is no more that small agency that started five years ago.

    “We believe this partnership with Dentsu will make us achieve our dream to be the best in Africa,” he said.

    Also, the Media Fuse Dentsu Aegis Network Ltd Managing Director, Emeke Okeke, said the selection of Noah’s Ark, a Dentsu’s affiliate, is premised on the agency’s impeccable credentials.

    He said the agency has displayed determination to play at the global level, a character that gels with the global agencies.

  • Africa’s first sales reality show to hold in Lagos

    Africa’s first sales reality show known as Africa Sales Academy, an initiative of SBA Interactive and the Olusola Lanre Coaching Academy (OLCA) is set to blaze television screens soon.

    According to one of the founders, Lanre Olusola, the sales reality competition has been created as a unique opportunity to challenge and motivate ambitious individuals with a passion for sales.

    “As we speak today in Nigeria, we are experiencing a time of depression and repression and so we thought what is it that we can give back in this current clime when people are downsizing, rightsizing and letting go of their work force,” said Olusola.

    “Millions of people have lost their jobs and are out there doing nothing so we decided to start this initiative called The African Sales Academy which is simply to empower people to become the best sales people that they can be.”

    Applications open on October 24 on www.africa salesacademy.com and costs three thousand naira.

    Also speaking at the media parley held in Lagos, Head of retail General business at Leadway Assurance Tunju Amokade said; “We believe that that the future belongs to those who can actually take the future in their hands now. We have been doing series of programs to encourage youths so when we saw this proposal we said this is what we have actually been looking for because it will help shape the youths and they can be self-sufficient in whatever field they think that they can actually play.”

    Selected participants would receive coaching and participate in competitions to become winners. While the best sales participant gets three million naira, the second gets one million, five hundred thousand naira, the third gets five hundred thousand naira and the final 250 participants get cash prizes. Also, 50 entrepreneurs with top business ideas will be assisted with registering their businesses and mentored.

    The faculty of the Sales Academy has Sales Guru, Segun Akande, Investment Banker, Joseph Edgar and Life & Executive Coach, Lanre Olusola who will be mentors support to the sales contestants during the live shows.

  • Africa needs more paediatric surgeons, says group

    The Pan African Paediatric surgeon Association(PAPSA) President, Prof Essam Elhalaby, has said Africa needs more paediatric surgeons.

    This, according to him, is because the challenges of paediatric surgery  in Africa is huge, as more than 12 African countries had no paediatric surgeon, leaving  children, who required surgery to be handled by surgeons in other fields.

    Also, he said there were no paediatric nurses and anaestisiologists, and other specialties.

    He spoke at 11th Biennial Meeting of Pan African Pediatric Surgical Association (PAPSA) and the 15th yearly conference of the Association of Paediatric Surgeons of Nigeria with the Association of Paediatric Surgeons of Nigeria (APSON) in FESTAC, Lagos.

    The theme of the conference was  “Total surgical health for the African child’’.

    Elhalaby said: “Nigeria has the second largest number of paediatric surgeons on the continent and they have a long experience in that field. Some of them do not practise in the country; most of them are practising outside Nigeria either in the UK or middle east.”

    The conference was aimed at proffering non-conventional solutions in paediatric surgery in children. It was also used to identify the needs of trainees on the continent, Elhalaby added.

    Nigerian has about 100 paediatric surgeons, while Egypt has about 150. But for Nigeria’s population, this is still not enough. Nigeria has the biggest population on the continent.

    Elhalaby said there was a huge gap. Despite this, African paediatric surgeons are moving out to seek greener pasture.

    About 40 per cent of Egypt’s paediatric surgeons are working in other countries while that of Nigeria are between 10 and 15 per cent.

    The surgeon identified lack of facilities as one of the problems of maternal and child mortality in Africa. ‘’Paediatric surgery needs a lot of equipment and resources, such as mechanical ventilator, because our patients are very tiny babies. Transportation is another challenge, transporting a sick child is not easy and by the time the child can access care, it is most times too late,” Elhalaby said.

    According to a Professor of Paediatric Surgery and Chief  Medical Director, Lagos University Teaching Hospital (LUTH),Idi-Araba, Christopher Bode, “the challenges in child healthcare in Africa is multiple-delayed and denied access of surgery by parents because these children do not know their need. Cost of surgery, should children pay for surgery? In many countries, the care of children between zero and 14 years is free in hospitals, so if society can provide everything for childcare, no child should die or suffer because they cannot access healthcare or surgery care.’’

    He added: “The problem of financing healthcare for children and for the aged is something the country can tackle with innovative policies that can sustain over time. If the national health insurance scheme  does not cover up to 10 per cent of the total Nigeria population, yet if it is extended innovatively, it would take care of children and surgery”.

    On maternal and child mortality, the wife of  Lagos State governor, Mrs Bolanle Ambode, represented by the wife of the Commissioner for Mineral Resources Dr. Arinola Oluwo,  said: “As the year goes by, we want to encourage more women to have access to medical facility. We have lots of women complaining about general hospitals, but it is better to go early to use the facilities for proper medical attention.”

    She added: “Pregnant women need to go to hospitals early enough to identify with doctors whenever they are having signs to prevent any loss and that will help reduce maternal and child mortality.”

  • Political stability in Africa and Middle East

    Recently, US Republican Presidential candidate Donald Trump said he admires Saddam Husain the late president of Iraq who was judicially lynched by the successor Shiite government of Iraq during the American occupation of the country. People were aghast at his comment. He also said he sees no reason for America to be an eternal enemy of Russia and that even if the USA does not like Russia, it should cooperate with Russia to defeat ISIL (Islamic state of Iraq and the Levant) and that the USA fought along with the brutal dictator Joseph Stalin during the Second World War to defeat the axis powers of Japan and Germany. One may disagree violently with Trump on almost everything but in this particular instances cited, I can see some sense in his usual madness.  I am convinced that the likes of Saddam Husain maintained some kind of peace in the Middle East in spite of the brutality of his regime. Even though he came from the minority Sunni population and treated all opposition Shiite or Sunni with brutality, he ensured that there was peace which was what the generally apolitical ordinary people of Iraq wanted. The mistake people in the West made was wanting to graft democracy on a traditionally autocratic conservative Arab environment.

    When people in the West were hailing the so called Arab Spring, I had the sneaky feeling that things will not turn out well. This was when I listened to the ambassador of Syria to the UN sometime in 2010 at the plenary of the UN General Assembly pleading for understanding of his country’s problem. He had argued that Syria was a delicately balanced country of Alawites, (Shiite) Sunnis, Christians, Kurds, Armenians and Aramaics and that backing Sunnis who want to overthrow the Bashar -al-Asad regime would bring all sorts of external forces and complications which will not augur well for the future of Syria and the Middle East. After more than a decade of warfare and a whole country with an old civilization destroyed, there has neither been democracy nor peace in Syria; rather a murderous group calling itself a caliphate has emerged bridging the frontiers of Iraq and Syria and imposing its draconian rule and will on a helpless and hapless people leading to the largest migration of a destabilizing horde of people since the end of the Second World War. But for the tenacity of the Sharifian dynasty in Morocco and the FLN government led by the old and infirm Abdelaziz Bouteflika in Algeria who were able to resist the forces of the dissidents particularly FIS (Front Islamique de Salut), the so-called Arab Spring would have engulfed the whole of the Maghreb. The situation in Libya was unfortunately not the same for several reasons. NATO wanted Muamar al Ghadafi to be removed from power because of what was considered as his dangerous ambitions in the past especially wanting to develop nuclear and chemical weapons on the other side of the Mediterranean which Europe considers a European lake. Even though he had given up the ambition, he was never trusted. So when the occasion for his removal presented itself, NATO was not going to allow it to slip from its hand. Their forces instigated a local rebellion which it joined to murder without trial an incumbent head of state. But what has replaced the years of stability in Libya is chaos and the take-over of part of the country by forces pledging allegiance to the Caliphate. The situation in Libya is like the case of Humpty Dumpty and everybody is waiting for which forces will secure the vast country of Libya. Whatever anybody may say about Ghadafi, he secured the country for decades after the overthrow of King Idris -al-Sannusi . Egypt is back in the hands of the military after the initial hoopla of getting rid of President Mubarak. He was replaced by Mohammad Morsi for about a year before he was overthrown by General Muhammad -al-Sisi. It appears that the Egyptians would rather have stability than some wooly democracy or chaotic rule by the Islamic brotherhood of Morsi. The effendiyyah in Egypt is just too sophisticated for that. It is only in Tunisia where the Arab Spring has brought in some form of constitutional regime albeit under an 82 year old president! Yemen is in turmoil and the Saudi army is there fighting a proxy war with Iran that is backing the Houthis who are Shiites. Oman and the other Gulf States including Saudi Arabia are maintaining some precarious peace with their Shiite subjects cowed down by overwhelming Sunni forces. Iran continues to pose existential challenge to the gulf Arab states and even far afield to Sunni domination or threatened domination in Lebanon, Syria and Iraq. Egypt which could have provided Sunni counterweight to Iran is held down by a collapsed economy and terrorist challenge in the Sinai. The chaos in North Africa and Middle East has reverberation in Africa where the Al Qaida in the Maghreb and West Africa, Boko haram in Nigeria, Niger and the Cameroon and al Shabbab in Somalia and Kenya constitute variants of the same Middle East Islamic terrorism. The direct effect of this is the proliferation of weapons of precision that are fuelling insurgency all over Africa.

    One common denominator to the Middle East and Africa is their sit-tight presidents in Museveni’s Uganda, Mugabe’s Zimbabwe, Bashar’s Sudan   Paul Kagame’s Rwanda and other dictators in the inter-lacustrine state of Burundi as well as virtually all the Francophone states of the two Congos , Central African Republic and the Spanish  speaking Equatorial Guinea. Even the new state of Southern Sudan is torn by ethnic war because of the sit-tight syndrome. While this goes on, there is neither growth nor development of the economy. On top of this is the rising population of young people who have no hope of employment. Even countries like Nigeria, Kenya, Ghana, Senegal, Ivory Coast, Ethiopia and Tanzania to mention a few are also afflicted by unimpressive economic performance and joblessness of their ballooning youthful population. This a time bomb in both Africa and the Middle East. The situation is so bad that young people are ready to die crossing to Europe by leaky dinghies and boats across the Mediterranean Sea.

    What is to be done? It seems to me that Africa has largely accepted that the democratic way is the way forward. There may be debate about what style of democracy. It is obvious that the western model may have to be modified to suit the peculiar condition of each African state.  This is not the same as supporting any bastardized democratic contraption called home grown democracy which is a euphemism for dictatorship. The market-driven economic prescriptions of the West may not work because of paucity of foreign and local investors. The state would have to intervene through direct investment by state corporations side by side with private investors like it happened in South Korea. The enforced orthodoxy of market economy will have to give way to practical solution that would also generate employment for the teeming masses of the people.

    But as for the Middle East and North Africa, democracy may not work there for long time to come. The Middle East will only survive if a way is found to satisfy its young people who are suffering from unemployment. This problem would worsen with the decline in the price of gas and oil which will make it impossible for the gulf countries to continue to bribe young people with generous perks because sooner or later they will run out of cash. The future of the almost 350million Arabs is uncertain unless realistic solution is found to the economic and political conditions of those countries. There will also have to be reconciliation between Iran and the Arab states as well as between Sunni and Shiite sectarian traditions in Islam. Finally the question of war and peace with Israel must be resolved by accepting the existence of two states, Israel and Palestine, in old Palestine. Inability to solve this problem may drive Arab youth to extremist tendencies which would not augur well for peace in the Middle East an absence of which could pose a threat to global peace.

  • How YALI will bring change to Africa

    How YALI will bring change to Africa

    Recently, I was among the 122 youths selected to attend the Young Africa Leadership Initiative (YALI) Regional Leadership Centre West Africa Accra Ghana for a leadership training initiated by the President of the United States (U.S.) Barack Obama to help young Africans to be exemplary leaders.

    The initiative is to promote collaboration among the African countries towards bringing a transformation on the continent. Obama believes in the zeal of the youth to drive change in a continent plagued by leadership crisis. He believes if the youth are given the necessary support, they would change the condition of their countries.

    The training brought together nine African countries, which include Nigeria, Ghana, Sierra Leone, Gambia, Liberia, Togo, Cameroun, Burkina Faso and Cote d’Ivoire. Participants were made to stay together in the same place, so that they could engage in cross-cultural discussion to appreciate their diversity.

    The training focused on specific issues that could help to bring transformation to Africa, ranging from leadership, entrepreneurship, public policy, agriculture, Information Technology and cultural diversities. We had experienced facilitators, both from Africa and the U.S., who enlightened us deeply on these different aspects.

    The two most important aspects that were emphasised are leadership and entrepreneurship. This was so, because the common problem most countries in Africa face is leadership. Attention was particularly focused on leadership, because the organisers wanted the participants to know the true meaning of leadership. To make them entrepreneurs, the participants were mentored on how to start successful business to reduce unemployment. After the training, take-off grant was given to participants who presented best entrepreneurship idea.

    It has been said that the major problem hindering development of Africa is leadership. Africa is blessed with amazing resources and climate suitable for its growth. Other continents rely on our natural resources for development. But, its leaders have cornered and converted these natural resources to personal resources.

    In the course of the training, the participants were made to understand that leadership is not about taking dominion over others. Rather, it is about helping others to become the best in the society. Leadership is about service. We were made to understand that it is not until you get to a post that you become a leader; you become a leader from the point you take responsibility for your actions and decisions to make society worth living for the people.

    Youths must understand this, because a lot of attention is now focused on them. The older generation has failed us by handing over a bad system to our generation. We need to change African story bring about transformation. But if the youth don’t have a changed and renewed mindset about leadership, how will they bring the desired change to a continent plagued by corrupt leadership? This is what YALI focused on.

    A herd of sheep being led by a lion can make a change, compared to group of lions being led by a sheep. The youth need to brace up for the challenges ahead. If the youth want a corruption-free system, it starts from their individual activities. You can’t expect a new result when you adopt old ways of doing things. If we want new results, we must be ready to adopt a new system and mechanism. The change we desire will be achieved when we change our mindset and our perspective about things.

    Leadership is about character and character is about what you are doing when nobody is looking at you. A good leader is someone who has a positive character. The corrupt leadership plaguing the continent is as a result of character of people in the position of authority. Focus of the youth must be on how to bring transformation to Africa.

    Entrepreneurship is a panacea to youth unemployment. Youths need to start thinking beyond white-collar jobs. We need to acquire relevant skills, knowledge and expertise that will help us to be problem solvers and not part of the problems. To put African economy on the right track, we need those who can think solutions to problems and not those who will only complain about the problems and do nothing about it.

    Entrepreneurs are those who think solutions to problems. They are innovators who bring new technology, infrastructures and channels that will help to make life easy. Entrepreneurs are employers of labour and the more employers of labour we have among the youths, the less youth unemployment we will have in Africa. Africa needs more entrepreneurs and this can only be done when African youths are enlightened and encouraged to go into entrepreneurship.

    Africa is an important continent and that is the reason why foreign countries believe so much in the continent. There are lots of opportunities for growth and development that can bring about paradigm shift in leadership in Africa. Soon, institutions and new innovations will be emanating from Africa as a result of YALI training. This will go a long way in bringing the needed transformation to Africa.