
Sunday, September 6, 2009
Big Brother returns.....

Thursday, August 6, 2009
The Last Africans

My main memory of the Last Africans exhibition is a brief and impromptu introductory speech delivered by my friend and and former colleague, Matthias Schmale. Matthias was a compelling speaker, not least due to his sincerity, and he took this occasion to speak eloquently about his sadness that the era of the pastoralist and nomadic life practiced across most of the African continent was coming to an end: that the traditions and modus vivendi of the Turkana, the Karamajong, the Rendille, the Samburu and, most iconic of all African pastoralists, the Maasai, were dwindling into scattered tourist exhibits amid the farms, settlements and towns created through population growth, the march of technology and urban development. His lament was not romantic: it was for the impoverishment to us all brought about by the reduction of cultural diversity.
My reading matter over the past week has been a collection of papers selected by Nigel Halford of the Rothamsted Institute in UK, entitled Plant Biotechnology. For a non-scientist, much of this book has been extremely difficult to understand, but I was keen to try to improve my understanding of transgenics/genetic modification and its impact. Included in the anthology is a short paper published by researchers from the University of Cape Town on the potential for inserting a "water-efficiency" gene into maize, the staple crop for most of East and Southern Africa. The authors are in no doubt that this would be a positive move, as it would allow the cultivation of maize to spread into areas hitherto too dry for farming.
In this connection, recent press publications in Kenya have reported that considerable applied research in WEMA (Water Efficient Maize for Africa) is underway - with the potential to open up new low rainfall areas in Kenya for the cultivation of maize. Kenya needs it: the Prime Minister, Raila Odinga, recently forecast a shortfall of about 1 million tonnes (30% of Kenya's annual consumption requirements) due to patchy rainfall. This is nothing new: 8 years out of 10 Kenya struggles to grow enough maize for its burgeoning population - mainly due to reliance on rainfall for water requirements, depleted soils, and the widespread use of poor quality planting material.
Advances in agricultural technology over the last 100 years have supported massive population growth. Through effective selection and breeding programmes, plant breeders have produced ever more productive crop varieties. The Haber-Bosch process for utilising atmospheric nitrogen has provided the necessary source of nutrition for these varieties. And now, transgenic technologies offer the potential to accelerate conventional plant breeding through the production of uber-crops capable of resistance to herbicides, drought, soil salinity and who knows what sort of adverse conditions. But these advances carry a cost. One wonders what the consequences of WEMA's introduction will be for Kenya's pastoralists and biodiversity as the area under cultivation of maize expands.Clinging on in ever more marginal areas, the pastoralist way of life appears to be an inevitable casualty of the modern world. As Einstein, in his wonderful 1949 essay entitled "Why Socialism" observed "The time—which, looking back, seems so idyllic—is gone forever when individuals or relatively small groups could be completely self-sufficient."
Friday, April 24, 2009
Loan Shark

I am currently attending the Global Philanthropy Forum in Washington, a gathering of remarkable people drawn together from around the world with one main objective: to find ways of improving the human condition. Much discussion has centred around the success of the microfinance movement in developing countries: the positive impact of providing poor people with small (and hitherto unavailable) amounts of credit which enable them to improve their lives. Microfinance advocates use heart-warming anecdotes to illustrate its success in lifting individuals out of poverty. It makes a great story.
In this morning’s newspaper, my eye was taken by a headline concerning a Presidential probe into US credit card interest rates. President Obama is making good his campaign promise to investigate the high cost of consumer debt at a time when, we are told, it is ever more important to raise consumer spending and unfreeze the market for credit. Apparently, many credit providers have recently hiked the cost of debt, in some cases to 30% per annum. Make no mistake, with inter-bank lending and depositor saving rates close to zero, this looks like exceptionally good business for financial institutions, laced with more than a dash of market failure. Bring on the regulator!
And yet interest rates at or above 30% are the norm in the world of microfinance, the latest “donor darling”, which seems to suggest that this cost of money – so unacceptable to policy-makers in the USA – is somehow entirely acceptable across the developing world. The fact is, that unless inflation is high, it is almost impossible to use expensive finance like this for anything other than short term trade finance or urgent consumption requirements, like health care or school fees. While this is unquestionably useful, in that it does provide access to short term money, it is harder to identify any systemic impact on poverty – if anything, interest rates like this will impoverish rather than enrich borrowers.
In defence, Microfinanciers say that these interest rates are fine: people are willing to pay even higher rates. They quote a willingness to pay rates of 50%+, but they seem to have missed the simple point that poor people in desperate need of cash have always borrowed unwisely: loan sharks and tallymen have always found a ready market in poverty.
Certainly, in East Africa, my own experience suggests that microfinance seldom, if ever, leads to increased employment. The small size of loans, allied to extremely high interest rates, usually means that microfinance is restricted to sole traders. With the best will in the world, a thriving economy cannot be built on sole traders alone. If we are going to have a real and long term impact on poverty, we need businesses that can generate employment for others, which means more small and medium-sized enterprises. In an environment like East Africa, where, as a result of rapid population growth more than 2 million people will be entering the labour market every year for the forseeable future, the need to create jobs is essential.
Tuesday, April 14, 2009
Standing on Your Own Two Feet

Of course, the aid industry retains its apologists, most of whom owe their livelihoods to it. They say things like “almost any result can be obtained when aid is lumped together”, or “We’ve learned from the successes and failures of the past: our new programmes have clearly defined outcomes…..” Well, maybe, but as Mark Twain observed: history doesn't repeat itself, but it does rhyme, so please excuse my skepticism.
The simple fact is that if you speak to anyone who has been involved in development assistance in Africa for any significant length of time they will reluctantly admit that it has been neither effective nor efficient. Several hundreds of billions of Dollars have been spent without achieving several hundreds of billions' worth of value. True, there are beacons of success, but they are few and far between and generally owe their success to the actions and determination of remarkable individuals
My principal objection to the aid business relates to the dependency culture it creates. This culture manifests itself in all sorts of ways, but something much ignored by aid advocates is its impact on the labour market. In my experience, with the possible exception of the banking and legal sectors, aid organizations in Africa tend to be the highest payers, offering the best terms and conditions of employment. My argument is that this discourages the brightest and most dynamic individuals from going into private enterprise and therefore deprives the private sector of the kind of talent it needs in order to grow. And, if we are being honest, it is hard to deny that the private sector is the engine of economic development and wealth creation. It's hardly a new idea: Schumpeter, in his Theory of Economic Development, published just under 100 years ago, postulated the thesis that development is propelled, not by Government intervention, but by the actions of entrepreneurs. If writing today, it is hard to imagine that Schumpeter would have been a supporter of international aid. It is far more likely that he would have subscribed to Dambisa Moyo's conclusion that the growth of the private sector (albeit with effective regulation) and free enterprise represents the best prospect for sustainable development.
In saying this, I recognise that to dismantle international development aid overnight (as Ms Moyo seems to suggest) would have disastrous short term consequences in health, education and many other social goods, but there has to be a policy of withdrawal and transition if we are going to find a way of breaking the current dependency culture.And now to explain the picture. It's a snap of my daughter Roxanne taken about four weeks ago, just before she took her first few faltering steps. Just as for my two older sons, I have witnessed the immense effort, the colossal motivation and the tireless determination that children have to stand on their own two feet: unsupported by their parents. And it is universally true – it doesn’t matter what culture, what race, what socio-economic background. Human beings everywhere want to stand on their own two feet.
In the words of Abraham Lincoln, "You cannot permanently do more for people than they are capable of doing for themselves". It's time for Western Governments to admit failure, abandon aid in its present form and support private sector development by (among other things) the removal of unfair trade barriers and investment in improved infrastructure. Africa is perfectly able to stand on its own two feet. Let it do so.
Tuesday, April 7, 2009
The Africa Seed Investment Fund
The African seed industry has (alongside most other agricultural sectors) been starved of investment capital. As a result, there is a significant deficit in high quality certified seed available to farmers across the region. This deficit, along with the questionable quality of this most essential of all farming inputs, is a substantial contributor to the poor agricultural productivity and efficiency endemic to the region. The Africa Seed Investment Fund offers the opportunity to seed businesses to access the capital they require in order to increase seed production volumes, seed quality and take advantage of the opportunity to commercialise new improved seed varieties - the fruits of research and development work carried out by both national and international plant breeding programmes.
The launch was held on April 2nd in Kampala. Now the hard work of identifying, researching, evaluating and negotiating investment agreements will start.
Monday, March 23, 2009
The war on.... something or other
Last week, there was a very interesting editorial in the Economist, providing a strong argument for the decriminalisation of drugs. It's not a difficult argument to make: first, it drew attention to the abject failure of the high cost "war on drugs"; second, it highlighted the likely health and fiscal benefits from a properly managed and regulated trade in drugs; and third, it made the point that the criminalisation of drugs drives the trade underground and leads to increased crime and violence around the world. Recent drug-related violence in Mexico is widely reported, but the drug trade is now well-established in West Africa and, increasingly, there are rumours that East Africa is becoming a transit zone for drug smuggling, with all the attendant social risks this brings.By coincidence, I have just re-read Ben Elton's novel, High Society, which centres on a hitherto-little-known politician's ultimately unsuccessful campaign to decriminalise drugs, set against the backdrop of drug use and abuse across British society. It's a very good novel, blending satire, humour and typically savage social observation. Indeed, while no-one, least of all Ben Elton himself, I suspect, would say that he is a great writer, he is a wonderful commentator on many of the big issues of our time. In one memorable passage, the lead character, Peter Paget, compares the absurdity of the "war on drugs" to the USA's failure with alcohol prohibition. "That one insane experiment [prohibition] tells us everything we need to know about drug control. People didn't drink less, they just drank illegally. They paid no tax, some of them went blind from wood alcohol, and they financed the birth of organized crime that has plagued American society ever since."
Each publication made a compelling case for decriminalisation: taken together, the argument is overwhelming. The "war on drugs" cannot be won.
So why are most Governments around the world so wedded to the "war on drugs"? It's an interesting question, for which there seem to be two main possible answers. First, they know it, but consider the social consequences of decriminalisation to be worse than fighting the long, expensive and inevitable defeat. Second, and a more cynical explanation, waging "wars" is a convenient way by which Governments are able to subjugate and control the populace, both through the erosion of hard-won civil and individual liberties (as has been so clearly demonstrated in the "war on terror") and through the creation of an external bogeyman, whose wicked and malign intentions threaten the very fabric of our society, and who provides the justification for excessive regulation and intrusion into the way in which individuals choose to live their lives.
Recently, I read an extraordinary item on the news: namely, that the British Government was seeking to introduce a system that required anyone leaving the UK to disclose their travel plans in advance. This will, apparently, assist in the control over two bogeymen, terrorism and organised crime. It probably will, but what sort of society do we want to live in? Every new regulation is justifiable, taken in isolation, but they make each one of us just a little less free than before.
Monday, February 23, 2009
Of Bentleys, Soil, Seeds and Marram Roads

Within the inputs camp, there is a further division. Better planting material or better soil health – which is the critical factor? One of AAC’s directors, Walter Vandepitte, likened the use of highly engineered hybrid seeds on impoverished soils to “driving a Ferrari along a marram road”. The seed advocate will argue in response that adoption of improved seeds will lead farmers to increase their use of fertilizers, irrigation and crop protection products to safeguard their crops, increase yields and, indirectly, improve soil health.
I am not qualified to provide an opinion on these arguments, but it does seem to me to be self-evident that even the best and most robust planting material is useless if grown in unsuitable soil conditions. Gardeners and farmers have always known this – indeed, before the dawn of manufactured fertilisers and crop protection products, they used to practice systems of crop rotation: on the logic that the nutrients taken out of soil by crops need to be replaced.
East African soils are fragile and vulnerable. A great deal of land is given over to monoculture, especially maize. The sun is strong, baking exposed soil and depleting nutrients. Rainfall is frequently heavy and can wash away topsoil. Few farmers compost organic material or have access to sufficient animal manure for fertilizer. All these factors combine to cause rapid depletion in soil nutrients and, if unchecked, result in soil acidification and ultimate infertility. This is a very serious problem.
One of AAC’s investees is a company called Lachlan Kenya (http://www.griculture.co.ke/) Based in Nairobi, this company distributes and markets a wide range of crop protection products throughout East Africa. Recognizing the importance of effective soil management products, the business also distributes a range of micro-nutrient fertilizers (especially important in horticulture), humic acid (which accelerates the decomposition of organic material in the soil and facilitates the uptake of nutrients) and, most interesting of all, a nitrogen-fixing biological fertilizer marketed under the brand name Twin-N. These products, and others, all have potential to improve soil health, something which is urgently required in much of East Africa.
Returning to the analogy of the absurdity of driving a Ferrari on a marram road, anyone who has visited Kampala recently will know that the city’s roads are afflicted by potholes and that a 4WD vehicle is almost a necessity in certain areas. Picture my surprise, then, when I saw an extremely handsome Bentley (registration number JH) cruising the city streets a few days ago. Subsequent research revealed that the Bentley’s owner is a young lady called Judith Heard (picture above). Kampala residents are no strangers to exotic vehicles – Hummers and Lexuses are frequently sighted – but most at least pay lip service to the necessity of having a high clearance vehicle. For sheer chutzpah, there is something wonderfully impractical about a Bentley which takes it straight to the top of the show-off chart. Bravo Ms Heard!
Tuesday, February 17, 2009
Schloss Kifufu

Africa for sale

Many economists seem to think that this is a good thing. They point to employment creation, infrastructure investment and increased agricultural efficiency. To be sure, in an environment where population growth remains rapid, where inadequate infrastructure hampers communication and distribution and where agriculture is, in general, extremely inefficient, the potential benefits are substantial.
And that's the key word - potential. Historically, I am sorry to say, Africa is littered with investment failures in large scale agricultural projects. Most famous among these is the Tanganyika groundnut scheme. This plan, to cultivate a large area of modern-day Tanzania with groundnuts, was a catastrophe in every way (see Wikipedia http://en.wikipedia.org/wiki/Tanganyika_groundnut_scheme for the full story - which is almost comical in its catalogue of disaster). It is, however, by no means unique.
The latest investment fad has centred around the production of biofuels and, in particular, a plant called jatropha curcas. This plant, it is claimed, will yield four times as much fuel as soya, and will thrive in semi-arid conditions unsuitable for almost any other commercial crop. To go back to a theme running through this blog, just remember, if it sounds too good to be true, it probably is.
What can the new investors learn from past and present mistakes? Three things stand out: the importance of research; experimentation and pilot programmes; and the need to invest in management and training. Simple, really.
Leaving aside these long term issues, let's hope that the details of these transactions are made public and that the proceeds are used first to compensate smallholders and pastoralists who have been or will be affect by the proposed developments, and second to invest in long term improvements to infrastructure. Sometimes it's good to be an optimist: in the words of David Landes "...pessimism offers little more than the hollow satisfaction of being proved right"
Wednesday, February 4, 2009
Quelea Quelea

Thursday, November 27, 2008
Sir Roger and the Congo

Monday, November 10, 2008
Oba-mania
For me, however, the most interesting thing about the election will be its reverberations across Africa in the next four years. For how much longer will Africans accept ageing leaders who cling to power through profoundly undemocratic systems? When will the simple message for change, embodied in the three words "yes we can", start to spread through Africa? Until recently, poor communications have stifled political campaigning by opposition groups, but the internet and the cell phone are changing that, and fast. The instruments of mass communication are no longer under government control. In winning the election, Obama may be the catalyst for change in Africa and for the transfer of political power to the new generation. Even more than elsewhere, support by the young in Africa is critical for change to take place. Population growth and demographics mean that the overwhelming majority of the African electorate is under 40 years of age. Leaders who are able to win and harness their support will create the future.
Many people I meet harbour negative perceptions about Africa. They complain about corruption and bemoan conflict. My response to this is to point to the remarkable tenacity and determination of most African people, who achieve great things in spite of all the obstacles placed in their path. Barack Obama is a shining example of this tenacity and determination, but there are many others like him in Africa, in commerce, in industry, in education and even in politics, who will shape the future of this young continent. Make no mistake, Africa's future is bright.
Monday, November 3, 2008
Trees and Honey
Over the past two months, two more areas have caught my interest and attention. Trees and honey. Trees - and more specifically the lack of them - is a fairly obvious one. Here are a few facts: East Africa's trees produce about 80% of the population's energy requirements (who ever said biofuels were something new?); population growth - and land pressure - is rising at about 4% per annum. To put this in context, that means the population of Uganda, Kenya and Tanzania will double within 20 years! Forest cover is diminishing: in Kenya, forests now cover less than 2% of the area. Tanzania and Uganda are slightly better, but the trend is sharply down... Timber prices are increasing all the time....
Now, I knew all this before. What I didn't know, until attending an excellent presentation by Eric Bettelheim of Sustainable Forestry Management last week in Kigali, was that Africa had been unable to benefit from the official market in carbon trading established under the Kyoto Protocol a few years ago. If, therefore, a government or a private individual or business plants trees in Africa, s/he is ineligible for carbon credits - which are available to European and North American growers! The result - deforestation continues apace in the developing world but afforestation is on the increase in Europe and the USA. And I thought it was a global problem....... Fortunately, however, the business case for planting forests in East Africa is becoming very persuasive, even without the carrot of carbon trading opportunities, and, if Mr Bettelheim gets his way, the economics may look even better in the near future. Buy land and plant some trees - in today's fragile economic environment, that advice could be a great long term pension investment, besides doing something small to save the planet.
And if you plant some trees, why not invest in some beehives? The bees do all the work and you collect the income. Furthermore, the global honey price is increasing, due mostly to the impact of bee disease in USA & Europe and the consequent reduction in bee colonies. Beeswax, propolis and royal jelly, alongside the honey, and cross-pollination for your tree crops to boot.
If you want to learn some more, visit http://www.sfm.bm/. Think about it.
Thursday, October 30, 2008
Visiting Rwanda
My first encounter with Rwanda was in 1994, when I was working for the International Red Cross Federation's regional delegation in Nairobi. As an accountant, my job for a short period was to deliver huge sums of cash to the relief effort in Goma and Bukavu, just across the Congo border. The weekly consignments averaged about $500,000 in cash - mixed denominations, 1999 series or later. By keeping the process low-profile, I managed to avoid becoming a target myself, but it was an uncomfortable, but very necessary task. At the time the banking system in Eastern Congo (Zaire) had broken down completely, so cash was the only means of financing the massive relief operation.
Since then, I have been back on a number of occasions, always with delight at the visible and tangible progress since the dark days of 1994. Most memorably, I made a trip in 2002 to Ruhengeri to visit mountain gorillas. I had tagged a day visit on the end of a business trip to Kigali and as a result was extremely badly equipped for the short hike up the mountain to the forest. It had rained the night before, as we left early in the morning, the valleys were cloud-filled but the hills clear. The image of the deep green "mille collines" floating in a sea of white clouds in the early morning sunlight is unforgettable, yet it pales by comparison with the sight of a family group of 15-20 mountain gorillas.
Kigali is clean, orderly and functional but, in comparison with the hustle and bustle of other East African commercial centres, strangely devoid of apparent colour and energy. There is a reserve and a sense of watchfulness which leaves the visitor with a sense of remoteness....
As for the conference, well, I was very interested in about 20% of the agenda. Protocols observed, there were some very interesting discussions on the future of agriculture and forestry in Africa (both of which are close to my heart) and, as is always the case, a good opportunity to meet a range of useful contacts. Sadly, the session on financial inclusion - the delivery of appropriate financial services to the unbanked majority - was disappointingly bland. The simple fact is that banks in East Africa are extremely profitable and simply do not need to invest in delivering banking services into rural areas. Furthermore, they are far too costly - tending, as everywhere else in the world - to grow fat on the huge and indefensible spreads between customer deposit interest rates and borrowing rates.... Am I alone in thinking that there is something fundamentally wrong when bankers are the highest paid segment of the workforce?
I hope I will be back in Rwanda soon. And I hope, next time, that I will be able to see something more than a hotel, a taxi, a conference centre and an airport. On the flight back this morning, I realised that I had in all honesty had no contact with Rwanda... again. East Africans, international delegates, foreign-owned and managed organisations, but nothing that brought me any closer to a relationship or an understanding of Rwanda. The remoteness remains.
