Corruption in Sierra Leone under APC and SLPP

Mohamed Kunowah Kiellow

30 December 2011

According to Transparency International "corruption is the abuse of entrusted power for private gain. It hurts everyone whose life, livelihood or happiness depends on the integrity of people in a position of authority."

The poorest countries like Sierra Leone suffer most under the yoke of corruption.

In Sierra Leone, despite some gains, "corruption remains an enormous drain on resources sorely needed for education, health, infrastructure" social and economic development. As a result of this, the "correlation between poverty and corruption continues to be evident." To my mind, corruption is a human right violation.

Since gaining independence Sierra Leoneans have suffered economic and social hardship emanating from corruption and abuse of power by public officials. Section 5 of the Sierra Leone Constitution of 1991 stipulates that the State shall take all steps to eradicate all corrupt practices and the abuse of power. The State therefore runs afoul the constitution when it takes insufficient or no steps to fight corruption.

The state of corruption under Ernest koroma and Tejan Kabba does not show much difference. However, there is a difference between the two when it comes to fighting corruption. Under Kabba’s government the Anti-corruption Commission came into being. His government, however, did not take sufficient steps to curb corruption as state interference into the work of the ACC was enormous.

This hindered the smooth functioning of the Commission. Val Collier was the first ever ACC boss. Val Collier did not do much to go after corrupt big bugs in Sierra Leone. He spent his tenure of office indicting and prosecuting small fishes.

Let us call a spade: when Ernest Bai Koroma’s government came to power the ACC regained its desired teeth. Ernest Bai Koroma appointed the young and dynamic Abdul Tejan-Cole as Commissioner of the ACC. EBK must be commended for giving more powers to the ACC to make it more independent and vibrant. The new ACC boss showed that he was a "man made of sterner stuff".

Tejan-Cole’s decision to prosecute Francis Gabbidon, the former Sierra Leone's Ombudsman, came as a shock to many people. Moreover, his decision to arrest a High Court Judge, Allan Halloway was a bold step.

What really came as rude surprise was his decision to go after corrupt businessmen in this country. This was a novelty in the history of the fight against graft in the Private Sector.

We have to give praises where they are due. It is during Ernest Koroma’s regime that we have witnessed ministers and highly-placed persons in Sierra Leone being dragged to court for corrupt practices. The mayor of Freetown, former ministers of Health and Energy and Mineral Resources are such people who were sacked by the president for alleged corrupt practices.

However, EBK’s fight against corruption is not without hiccups. There are still very corrupt public officials who are untouchable; who indulge in corrupt practices with impunity. The state interference into the work of the ACC is minimal but the effect of this untoward practice on the socio-economic lives of the people of Sierra Leone is unacceptable.

The president should therefore take tougher steps to curb corruption if his Agenda for Change is to achieve meaningful results.

On 16 December 2011 Salone Radio Amsterdam discussed the state of corruption in Sierra Leone. If you missed the programme, please go to this link and listen to it:

Please join us today at 20.30(CET), 19.30(Salone time) to continue the discussion on corruption:

http://www.salto.nl/streamplayer/radio/razo_live.asp

Breaking News

28 December 2011

The late Sylvester R. Folounsho MacCormack

Mr. Sylvester R. Folounsho MacCormack, who is the older brother of Cecil Bunting MacCormack (Bunny Mack), passed away yesterday – 27 December 2011, at 17.40 Eastern Time (10.40pm - GMT) in Maryland USA. He was 71 years old. He is survived by his wife Mrs. Nancy MacCormack, brothers and sisters; Ade, Bunting, Jemima, Tunji and Aki; his children: Radcliffe, Daphnie, Bernard, Brenda, Marcella, Shola and Denise; and several relatives in Sierra Leone and abroad. Funeral arrangements will be announced later.

World Bank to invest $26 million to improve delivery of vital local services in Sierra Leone

21 December 2011

Since the enactment of the 2004 Local Government Act, which devolves power to Local Councils in Sierra Leone, for the delivery of basic services such as education, health, water supply and solid waste management, successive governments in Freetown have failed woefully to provide the human as well as financial resources needed for decentralisation to succeed.

With rising poverty and continuing pressure on government’s finances and priorities, the delivery of local services has faced huge setbacks. Education standards have fallen in the last three years; the government’s free health care programme faces huge challenges in the provincial towns and cities; and most communities are without clean, safe drinking water.

President Koroma’s government priority focuses largely on improving the country’s dilapidated infrastructure, costing hundreds of millions of dollars.

The Executive Board of the World Bank yesterday approved US$26 million to help the Government of Sierra Leone scale up its decentralized delivery of basic services, across 19 Local Councils in the country.

Major steps have already been taken to improve the decentralization programme, including; establishing a transparent, fair system of transferring funds to Local Councils; holding of regular elections; devolving functions closer to the people; and innovative ways of helping them hold service providers accountable.

"Sierra Leone has come a long way since the enactment of the Local Government Act in 2004, and has a wealth of experience to offer other post-conflict countries," said World Bank Country Manager Vijay Pillai.

"With continued political will and due diligence by Local Councils, we expect that decentralized delivery of basic services will lead to further gains such as improved access to basic health services and safe drinking water in rural areas." This new funding of $26 Million is part of the Second Phase Decentralized Service Delivery Program (DSDP-2), which aims to build on what has already been achieved under the DSDP phase 1.

It will enable Local Councils to improve the delivery and results in basic health, education, water supply and solid waste management across all 19 Local Councils in the country.

The European Union will provide a further US$6 million in co-financing, bringing the total funding for DSDP-2 to $32 million. The program’s second phase will run until December 2015 and will provide direct financing of the following activities:

- US$24.3 million funding for local councils to complement fiscal transfers from GoSL budgetary processes

- US$3 million to develop capacity and provide technical assistance to local councils and ministries, departments and agencies, which will help carry out their core functions and provide guidance and oversight

- US$4.1 million to support results and social accountability. This will empower local communities to hold their service providers accountable, with the aim of enhancing the quality of service delivery

- US$1.2 million to support project implementation, financial management and coordination functions.

The Ministry of Finance and Economic Development, Ministry of Local Government & Rural Development and all 19 Local Councils will implement the program, by working in partnership.

China steps up its investment in Sierra Leone

21 December 2011

When president Koroma announced early this year that 2011 is the year of project implementation for his government, many questioned what the government had been doing since it came to power in 2007. But looking at the plethora of infrastructure projects, especially road rehabilitation and construction, it is easy to see why the government is describing the capital – Freetown, as a "works yard".

There are several yet to be completed road construction projects, which critics say would need additional funding to be completed. The government has been told by the IMF that it had exceeded its borrowing ceiling in 2010 and must now seek to finance its capital spending programme through taxation.

International bilateral investment is now more than ever crucial for president Koroma to be able to achieve some of his infrastructural ambitions, before the general elections taking place next year. The Chinese government has decided to increase its investment in Sierra Leone.

President Koroma meets local leaders

State House report from Freetown says that the historically neglected mountain and peninsular villages of Regent, Bathurst, Charlotte, and Grafton will soon have spanking new roads and continuous supply of hydro-electrification. Costing an estimated 180 Million Chinese Yen (US$30M), the road construction project is said to be the largest to be undertaken by the Chinese Government in Sierra Leone. The entire project will be completed in 2014.

Both president Koroma and the Chinese ambassador to Sierra Leone - Kuang Weilin, took part in a 'sod turning' ceremony, marking the official start of the peninsular – mountain villages project.

Speaking at the ceremony, president Koroma said that this project is part of his 'Agenda for Change', which encompasses his government’s policy on energy, road and infrastructural development, agriculture, health and education, as well as promoting good governance and attracting foreign investors to the country.

He said that in just four years, his government has been able to increase the supply of electricity in the country from a mere 5 Mega watts in 2007. Presenting his government’s performance record, he said that; "We are not a government of workshops and consultancies, and ours is a government of tangible and visible development."

"Now that we are implementing projects, they are lamenting that they had the intention. But we’re a government of action not intentions," referring to the opposition’s continuous jibe that the government is simply delivering projects they had planned and funding secured, prior to leaving office in 2007. "We are now providing leadership, courage and focus, and nothing will distract us from actualizing the Agenda for Change." He told his audience.

APC Veteran - S.A.J. Pratt welcomes Chinese investors

President Koroma praised what he described as the vision of past APC leaders - Siaka Steven, S.A.J. Pratt, whom he said "had the foresight to develop Sierra Leone". As has become traditional at such ceremonies, the president once again promised to personally monitor and make unannounced visits to the two projects, as they were not far away from his Hill Station Presidential Lodge.

But critics say that one of the reasons for the unacceptable poor delivery of government projects is the absence of practical leadership and lack of supervision. They point to the badly managed Free Health Care Programme, which president Koroma had personally promised to supervise in 2010. Several road construction projects are suffering as the result of cost and time over-runs.

Critics also say that the highly expensive Bumbuna hydro-electricity project has failed to achieve its objectives, producing less than half of its planned capacity, despite costing in excess of $200 Million. 

The Chinese Ambassador - Kuang Weilin called on their Chinese contractors - China Railway Seventh Group (CRSG), who are also said to be responsible for other high profile road rehabilitation projects – such as the notoriously delayed Wilkinson Road, "to do the job with China speed, quality and efficiency". He said that China will be funding more infrastructural development projects in Sierra Leone.

Is the ACC losing its case against the Mayor before the start of hearing?

15 December 2011

Mayor Herbert

The seriousness and gravity of the charges read out in Court against the Mayor of Freetown – Herbert Williams and his co-accused last week, are such that all eyes are now on the Anti-Corruption Commission, to ensure that the case against the accused is water-tight, and that they have done their homework well in advance. The Anti-Corruption Commission (ACC) has a serious reputation of losing high profile cases in Court, and does need to improve its effectiveness and success rate. But there was drama at the High Court in Freetown yesterday, Wednesday 14 December, 2011, when Lawyers acting for the defendants, expressed alarm at the prosecution’s decision to present an amended charge sheet to the Court.

They were also incensed that the lead prosecuting lawyer – no other than the Anti-Corruption Commission Czar himself - Joseph F. Kamara, had only served the defending lawyers with a 250 page report, which contains witness statements, less than twenty-four hours prior to Court sitting.

The prosecution’s amendment to the charge sheet is crucial, and of material substance to the case.

When the accused appeared in Court last week, both Mayor Herbert George Williams and Bowenson Fredrick Philips - Chief Administrator of the Council were charged on count 4, along with Sylvester Momoh Konnehi and Arthur Kwesi-John, for failing to pay Social Security and Insurance Trust (NASSIT) contribution, contrary to section 48 (1) (d) of the NASSIT Act.

The particulars of count 4 state that sometime between July 1, 2010 and October 31, 2010, the accused unlawfully failed to pay NASSIT contribution for and on behalf the staff of the Council amounting to Le76,123,246.20.

Chief Prosecutor - ACC Boss Joseph Kamara

Presenting the changes to the Court yesterday, ACC Commissioner said that he had decided to make the following alterations: The material date of offence relating to count 4 was backdated from 31 October 2010 to a much earlier date of 30 September 2010. The alleged unpaid NASSIT contribution cited under count 4, was also increased from Le76,123,246.20 to a hefty Le106,627,182.00.

But much of the legal arguments in court yesterday were centred on the points of law raised by lawyers acting for the defence, contending that their clients had not been given sufficient time to study, prepare and present counter-arguments with respect to the witnesses’ evidence contained in the 250 pages prosecution’s report.

The beleaguered Mayor of Freetown and his co-accused – including the Chief Administrator of Freetown City Council, have been indicted on 25 counts.

Mayor Herbert George Williams and Bowenson Fredrick Philips - Chief Administrator of Freetown City Council (first and second accused), were both charged on count one with conspiracy to commit a corruption offence contrary to section 128 (1) of the Anti Corruption Act 2008.

It is alleged that both accused conspired with other unknown persons to misappropriate the sum of Le 744,450,000 sometime between 1 July, 2010, and 31 March, 2011, with respect to the hosting of a live concert featuring Morgan Heritage.

On counts 2 and 3, both first and second accused were also charged with failing to pay NRA Taxes, contrary to section 48 (1) (d) of the Anti Corruption Act, No. 12 of 2008. According to the ACC, the accused illegally failed to pay the sum of Le62,269,595 and Le88,565,638 respectively to the NRA, after deductions from employees’ salaries.

Mayor Herbert Williams, Bowenson Fredrick Philips, Sylvester Momoh Konnehi, and Arthur Kwesi-John, were all charged with counts 5, 6 and 7.

Particulars of offences state that on dates unknown - between 1 January, 2010 and 31 March, 2010;1 May, 2010, 31 August, 2010; 1 October, 2010, and 31 December, 2010 respectively, the accused unlawfully failed to pay PAYE Tax to the NRA for and on behalf of employees of the council, in the sum of Le80,058,509; Le110,070,553 and Le89,448,347 respectively.

On Counts 8 and 9, both Herbert Williams, Bowenson Fredrick Philips and Desmond Thomas were charged with misappropriation of public revenue, contrary to section 36 (1) of the ACC Act of 2008. It is alleged that the three accused misappropriated the sum of Le55,589,100 with respect to monies collected from local markets, and Le24,317,300 collected as local taxes.

On count 10, co-accused Alimamy Turay was charged with misappropriation of public revenue, contrary to section 36(1) of the ACC Act of 2008. It is alleged that the accused misappropriated the sum of Le22,470,000 collected from local market traders.

On count 11, Herbert Williams was charged with misappropriation of public funds contrary to the ACC Act of 2008, alleging that he withdrew Le10 Million from the Council’s Bank Account in Freetown, in respect of payment for the failed Morgan Heritage concert.

On counts 12 and 14, co-accused Aiah Brima was charged with misappropriation of public funds contrary to the ACC Act of 2008, involving Le9.8 million purported to be payment of allowances to Councillors’ needs assessment, and Le2,815,000 purported to have been paid to participants at a strategic planning retreat held at the Hill Valley Hotel, as daily subsistence allowance.

On count 13, Franklyn Garber – a civil engineer employed by the Council was accused of misappropriating the sum of Le9,225,000 purported to be payment for rehabilitation work done to a local market.

On count 15, Mayor Williams, Bowenson F. Philips, and Desmond Thomas were last week charged with misappropriation of public revenue contrary to section 36(1) of the ACC Act of 2008, with respect to Wharf landing fees in the sum of Le2,063,400.

On count 16, Mayor Williams, Bowenson F. Philips and Arthur Kwesi John were charged with misappropriation of Le4 Million purported to be payment for light bill to NPA.

on counts 18 and 19, Herbert Williams was solely charged with misappropriation of US$9,000 (public funds) purported to be payment for excess luggage for Morgan Heritage, and US$10,000 unlawfully withdrawn from the Council’s Bank Account in Freetown, in respect of the Morgan Heritage concert.

On count 20, Mayor Herbert Williams, Bowenson F. Philips and Sylvester M. Konnehi were together charged with misappropriation of Le79,980,000 (public funds) purported to be payment for the relocation of evictees from the construction site of a market and shopping center.

On count 21, Mohamed Allie Shaaban was charged with misappropriation of public funds in the sum of Le800,000,000 contrary to section 36(1) of the ACC Act of 2008, in respect of the construction of a shopping centre and market at Fisher street.

On counts 22 and 23, both Mayor Herbert Williams and Bowenson F. Philips were charged with misappropriation of public funds in the sum of Le13,442,500, in respect of payments to a Zenobean Enterprises for the supply of swivel chairs, Le7,640,000 for payment made to Ibrahim Kamara as incentive for the Revenue Enforcement Team.

On count 24, Mayor Williams, Bowenson F. Philips, Arthur Kwesi John and Sylvester M. Konnehi were all charged with wilful failure to comply with the law relating to the procurement of service, contrary to section 48(2)(b) of the ACC Act of 2008.

It is alleged that the four accused had made unlawful payments in the sum of US$130,000 for a two day live concert staged at national Stadium.

On count 25, Mayor Herbert Williams was solely charged with misappropriation of US$35,000 with respect to payments for the staging of the Morgan Heritage concert.

At the close of hearing yesterday - 14 December 2011, the Kenyan Judge agreed to adjourn proceedings, in order to allow the defence counsels sufficient time to study the 250 pages report submitted by the ACC Czar – Joseph Kamara. The report contains the evidence given by witnesses to the ACC during their investigation of the case.

Kenyans use social media to mobilize support for drought victims

13 December 2011

With about $70m in the kitty, Kenyans show the rest of Africa how to use social media platforms to mobilize for a social cause. Kingsley Ighobor reports for Africa Renewal:

Julie Gichuru is an award-winning Kenyan television journalist rated by Forbes business magazine in 2011 as one of "20 youngest powerful women in Africa." Ms. Gichuru has a reputation as an engaging TV host, stirring up her audience against corruption and sometimes poking fun at the vagaries of life.

In July, as thousands of starving people walked across the border from Somalia into the Dadaab refugee camp in north-eastern Kenya, there were also thousands of Kenyans dying of drought in that region, as well as in Turkana, Pokot and Baringo. Ms. Gichuru and other journalists covered that reality.

"I went to the camp and saw children just screaming. It was deafening. Some had just died. Some were about to die, and I saw parents standing helplessly, just preparing to dig another infant grave," she told Africa Renewal.

The interventions of Ms. Gichuru and others have been acclaimed for both the sheer effort — more than $67 million donated so far by ordinary Kenyans and some companies — and the tools with which the mobilization has been carried out: Facebook, Twitter, mobile phones, television, radio and newspapers.

Reactions to the various media reports were swift and spontaneous. The Media Owners Association, Safaricom (one of the country’s leading mobile phone companies) and the Kenya Red Cross continue to rally donations and other relief materials under the aegis of Kenyans for Kenya, an association officially launched in late July.

"The response by Kenyans was overwhelming and humbling, hitting KSh19 million through M-Pesa [mobile banking] contributions on the second day," reports The Standard, a leading Kenyan newspaper. Ms. Gichuru says that they collected the equivalent of about $10 million within two weeks.

Ordinary Kenyans can make contributions of as little as KSh10 (about 10 US cents). "Through Facebook and Twitter we sensitized the urban affluent. Through mobile phones we reached people in the rural areas. And television, radio and print publications just reinforced the message to the general population," says Ms Gichuru.

M-Pesa (Swahili word for "mobile money") helps those in remote parts of the country make financial payments, such as for electricity, water and even normal day-to-day purchases. This is the first time the M-Pesa service, launched by Safaricom, has been used extensively in support of a major humanitarian cause.

How does it work? Safaricom assigned a dedicated account number that people with mobile phones can easily remember (111 111). Subscribers pay into their M-Pesa accounts, much as they do when adding to their phone calling credits. To make a donation they simply enter the amount and send it to the dedicated account number.

Both the sender and the recipient promptly get SMS messages confirming the transaction. The ease of transactions has contributed to the project’s success.

The credibility of the main implementing partner, the Kenya Red Cross, further encourages people to donate. "Once people knew who was going to spend the money, they felt more comfortable to contribute," says Ms. Gichuru.

Before Kenyans for Kenya there was Ushahidi, the platform set up — again by Kenyans — to map reports of post-elections violence in 2007. The model was so successful that it was replicated in Haiti and Japan to aid relief work after earthquakes (see Africa Renewal, April 2010).

The International Business Times reports that there are 20 tweets a minute on the crisis in the Horn of Africa, coming mainly from freelance fund seekers. The UN World Food Programme (WFP) has launched the WeFeedBack initiative to rally support for hungry people in various parts of the world.

The WFP and YouTube collaborated to record and promote the song "A Step for Mankind", expected to trigger online record sales to aid the Horn of Africa.

Daudi Were, a manager for Ushahidi, cites the increasing popularity of social media in Kenya. First is the demographic factor. There are 20 million people between the ages of 15 and 65 in Kenya, and about 22 million mobile phone SIM cards are in circulation. The second factor is the way various social media are interconnected. People use mobile phones to tweet, send SMS messages and access their Facebook pages.

Mr. Were insists that although social media platforms may be considered urban tools, "African cities have a huge influence on the rest of the country." He maintains that "people are able to send SMS messages to radio and TV stations from the rural areas, even if they are unlikely to listen to the messages when they are aired."

The 'Kenyans for Kenya' initiative marks the first time in Africa that ordinary people have organized in this way to save lives. In the past, donations to causes came almost exclusively from wealthy organizations and individuals, Ms. Gichuru notes. But not anymore - "In our campaign, most donations are coming from ordinary people." That response has shamed companies into also donating.

The success of the effort shows that citizens can organize on their own. "People don’t feel helpless, as they have in the past," says Ms. Gichuru. "The social media provide platforms where people discover that there are hundreds or thousands of others feeling as they do, and the platforms help them agree on a course of action."

This capacity is causing ripples in government circles. "Right now, there is concern in government,” notes Ms. Gichuru. "It’s as if government people are saying, 'If the people can do this, it means we will become irrelevant at some point'." For Mr. Were, the fact that ordinary people are taking the initiative to organize is itself a response to poor political leadership.

"African citizens are not waiting for leadership from government. Already they feel a sense of disconnect, and they want to take their destinies in their hands."

Africa Renewal: www.un.org/africarenewal

SLPP presidential candidate – Julius Maada Bio raises his international profile

13 December 2011

Sierra Leone’s general and presidential elections will take place in November next year, and already both the two main parties – APC and SLPP are raising the stakes to a level not previously witnessed in the country’s most recent electoral history.

Julius Maada Bio

The unprecedented early pre-election campaigning has already started. And the SLPP leader - Maada Bio, is upping the ante by raising his international profile and democratic image. President Koroma's grip on power is becoming highly uncertain, as the opposition SLPP strengthen their bid to build on the 40% votes, they  garnered at the 2007 elections. The president's 'whiter than white' image and zero tolerance for corruption mantra are now in the spotlight.  Writing in the British Guardian Newspaper yesterday, Bio delivered a scathing attack on president Koroma’s government mismanagement of the economy, corruption and tendency to stifle democratic freedoms.

He called upon the British government to ensure that their investment in Sierra Leone to end the brutal ten year war and return the country to democracy must not go in vain. He said that; "Democracy is under attack. All those with influence over the government must help ensure a peaceful political process."

In this his first address directed in particular at the British public and coalition government, Bio presented himself as a credible and trusted pair of hands into which the helm of governance in Sierra Leone can be entrusted by the people at the polls in 2012.

This is what he told readers of the British Guardian Newspaper:

"There have been many criticisms of British overseas intervention in recent years, but one truly altruistic engagement for which the UK can be proud was its military intervention in Sierra Leone in 2000.

"This event, where a renewed British presence brought stability to a nation in the throes of a devastating civil war, allowed Sierra Leone the hope that the cycle of power-hungry military rulers may finally end.

"The UK's intervention under Tony Blair helped to bring about one of the key milestones for Sierra Leone's recovery – the ending of conflict – and allowed the return to democracy begun some years earlier to fully take root. Now, new elections are due in 2012. But recently things have taken a turn for the worse.

"I am the opposition's presidential candidate for next year's election, and in September, the national police intervened in a rally my party was holding. I was assaulted with stones and hospitalised.

"Many of my supporters were refused even basic medical treatment. Following this, the police imposed an indefinite ban on political rallies across the country.

"The danger that a free and fair election may not materialise this time in Sierra Leone is a tragedy not only for the country but also for Britain, which has invested so much in aid and support to the country in the last 11 years.

Tony Blair and president Koroma

"Similarly, it is an uncomfortable development for Blair, who ordered the original military intervention, but who lauded the current president, Ernest Bai Koroma, as one of the "visionary African leaders" tackling poverty, while members of his political party and the police were breaking up and banning democratic rallies. "In Sierra Leone democracy is still fragile. It has not yet been embedded in the national political consciousness as the only acceptable form of governance. Some political leaders believe its foundations can be removed and still it can flourish.

"As a former head of state who in 1996 handed power over to civilian, multiparty rule and then chose willingly not to contest the subsequent election, I know from experience this is not the case.

"Next year's presidential election is therefore a crucial milestone for Sierra Leone, and for its democracy. Not least because in 2007, when my Sierra Leone People's party lost power to Koroma, international observers widely commended the country for a poll that was free and fair.

"Next year's ballot must be managed under similar conditions because the only way to ensure peace and development after decades of war is through government that has gained the expressed will of the people.

"So what of our current president? He may be visionary to Blair, but the experience of everyday Sierra Leoneans tells a very different story of life under Koroma. When he assumed office in 2007, our country held a modest position in Transparency International's Corruption Perceptions Index.

"Today according to the same index, Sierra Leone ties with Robert Mugabe's Zimbabwe.

"Last month al-Jazeera made allegations of corruption in the heart of the vice-president's office when it secretly filmed two people claiming to be his advisers accepting cash payments from undercover journalists in return for a promise he would support an illegal timber project.

"US embassy cables released by WikiLeaks said that in 2008 Koroma's minister for transport, Ibrahim Kemoh Sesay, was questioned by the police for cocaine trafficking and then released and that the president had given direct orders for him not to be arrested, despite public statements that those with political connections accused of drug trafficking would not be given protection.

"These levels of favouritism are devastating, but they can be reversed. This must start by those holding influence with the current administration – such as Blair – repudiating all anti-democratic measures and being publicly honest about Koroma's record in government.

"The UK, which supplies 60% of the Sierra Leonean government's budget through aid, must demand change.

"But, ultimately, the country's future must lie in the hands of its own people. Opportunities will come if we focus on growing our economy in a sustainable way that benefits all. This means freeing ourselves from the shackles of foreign aid and building stronger foundations for development.

"We face serious challenges, in education, the economy and democratic reform, but these can be overcome with a transparent political process. We remain positive, yet there are signs that the ghosts of the past may return to manipulate the fair elections we all deserve.

"One thing is for certain: all political parties must ensure that any transfer of power is peaceful. This will require an unwavering determination among those of us campaigning for an honest and accountable democracy. It is something the British government bravely advocated in 2000. Over a decade later, we must not let that intervention be in vain."

Back top of page

Climate change blamed for dead trees in Africa

12 December 2011

Trees are dying in the Sahel, a region in Africa south of the Sahara Desert, and human-caused climate change is to blame, according to a new study led by a scientist at the University of California, Berkeley.

"Rainfall in the Sahel has dropped 20-30 percent in the 20th century, the world’s most severe long-term drought since measurements from rainfall gauges began in the mid-1800s," said study lead author Patrick Gonzalez, who conducted the study while he was a visiting scholar at UC Berkeley’s Center for Forestry.

"Previous research already established climate change as the primary cause of the drought, which has overwhelmed the resilience of the trees."

The study, which is scheduled for publication Friday, Dec. 16, in the Journal of Arid Environments, was based upon climate change records, aerial photos dating back to 1954, recent satellite images and old-fashioned footwork that included counting and measuring over 1,500 trees in the field.

The researchers focused on six countries in the Sahel, from Senegal in West Africa to Chad in Central Africa, at sites where the average temperature warmed up by 0.8 degrees Celsius and rainfall fell as much as 48 percent.

They found that one in six trees died between 1954 and 2002. In addition, one in five tree species disappeared locally, and indigenous fruit and timber trees that require more moisture took the biggest hit.

Hotter, drier conditions dominated population and soil factors in explaining tree mortality, the authors found. Their results indicate that climate change is shifting vegetation zones south toward moister areas.

"In the western U.S., climate change is leading to tree mortality by increasing the vulnerability of trees to bark beetles," said Gonzalez, who is now the climate change scientist for the National Park Service.

"In the Sahel, drying out of the soil directly kills trees. Tree dieback is occurring at the biome level. It’s not just one species that is dying; whole groups of species are dying out."

The new findings put solid numbers behind the anecdotal observation of the decline of tree species in the Sahel.

"People in the Sahel depend upon trees for their survival," said Gonzalez. "Trees provide people with food, firewood, building materials and medicine. We in the U.S. and other industrialized nations have it in our power, with current technologies and practices, to avert more drastic impacts around the world by reducing our greenhouse gas emissions. Our local actions can have global consequences."

Other co-authors of the study are Compton J. Tucker, senior earth scientist at NASA’s Goddard Space Flight Center, and Hamady Sy, country representative for Mauritania at the Famine Early Warning Systems Network.

Funding from NASA and the U.S. Geological Survey helped support this research.
 

"Durban climate talks - Polluters won, people lost" – says Greenpeace Africa

11 December 2011

On the closing of the latest round of UN climate talks in Durban, Greenpeace today declared that it was clear that our Governments - this past two weeks, listened to the carbon-intensive polluting corporations, instead of listening to the people who want an end to our dependence on fossil fuels and real and immediate action on climate change.

"The grim news is that the blockers - led by the US, have succeeded in inserting a vital get-out clause that could easily prevent the next big climate deal being legally binding. If that loophole is exploited, it could be a disaster. And the deal is due to be implemented 'from 2020' leaving almost no room for increasing the depth of carbon cuts in this decade, when scientists say we need emissions to peak," said Kumi Naidoo, Greenpeace International Executive Director.

"Right now the global climate regime amounts to nothing more than a voluntary deal that’s put off for a decade. This could take us over the two degree threshold where we pass from danger to potential catastrophe."

"Our atmosphere has been loaded with a carbon debt and the bill, carrying a Durban postmark, has been posted to the world’s poorest countries especially here in Africa. The chance of averting catastrophic climate change is slipping through our hands, with every passing year that nations fail to agree on a rescue plan for the planet."

According to Greenpeace Africa, South Africa as host of the COP 17 tried to ensure a meaningful deal.

"The type of deal that has been reached has been strongly influenced by the blockers led by US," said Ferrial Adam - Climate and Energy Campaigner for Greenpeace Africa.

Back top of page

Zimbabwe’s SECURICO Wins 2011 AFRICA AWARDS For Entrepreneurship

9 December 2011

Legatum - a private international investment group and Omidyar Network, a philanthropic investment firm, today announced that SECURICO has won the US $100,000 grand prize of the 2011 Africa Awards for Entrepreneurship.

Based in Harare, Zimbabwe, SECURICO provides guarding services and electronic security solutions, and is the first security company in Zimbabwe to be ISO (International Organisation for Standardisation) certified.

SECURICO has more than 3,400 employees, 900 of which are women, making it the largest employer of women in the private sector. The company exemplifies the vital role played by entrepreneurs in creating economic growth, prosperity, and realising opportunity in Africa.

Photo: Divine Ndhlukula

Three women-owned businesses out of seven winning companies represented from 3,300 entries competing for US $400,000 in Prizes. "It is such an honor for me to be recognized by the Africa Awards for Entrepreneurship and included in such a talented, dynamic group of entrepreneurs" said Divine Ndhlukula, Founder and Managing Director of SECURICO. "I hope that my story of creating SECURICO, and those of my fellow finalists, will help to inspire other African entrepreneurs to seek opportunity, embrace risk, and above all, believe in themselves."

A record 3,300 companies from 48 African countries submitted entries to compete for the Grand Prize of US $100,000, and six additional prizes of US $50,000 each, including the new Coca-Cola Award for an Outstanding Woman Entrepreneur, granted to Victoria Seeds, an agribusiness based in Kampala, Uganda.

The Africa Awards for Entrepreneurship recognises and rewards business leaders who embody the entrepreneurial spirit and qualities required to succeed in business and who are the inspirational role models for the next generation of African entrepreneurs.

Five further finalists were recognized and each awarded a prize of US $50,000:

• Chocolate City Group, Abuja, Nigeria

• Expand Technologies., Phoenix, Mauritius

• Pepperoni Foods, Port Harcourt, Nigeria

• Unique Solutions, Serrekunda, The Gambia

• soleRebels, Addis Ababa, Ethiopia

Philip Vassiliou, Managing Director of Legatum, commented, "Legatum firmly believes that entrepreneurship is the most effective mechanism for distributing scarce resources around an economy. Entrepreneurs have the ability to see an opportunity and build a business around it, and the profit these businesses generate is evidence that needs are being met in the optimal way."

He added "We are pleased to recognise all of our 2011 Award finalists for the vital contributions they have made in promoting prosperity across the continent."

The ten finalists underscore the diversity of entrepreneurs in the competition, representing eight countries including Ethiopia, Gambia, Kenya, Mauritius, Nigeria, Senegal, Uganda, and Zimbabwe.

The top ten, which includes three women-owned businesses, work in a range of industries, from software to entertainment to agribusiness.

Photo: Divine Ndhlukula & Richard Branson of Virgin

"The winners of the 2011 Africa Awards represent a diversity of backgrounds, industries, and geographies, but they also share a common determination in building and scaling a successful company," said Matt Bannick, Managing Partner of Omidyar Network. "We congratulate each of the winners, and welcome them to the Awards' growing network of business leaders who are fostering innovation, job creation, and positive social impact from within Africa." To determine the winners, finalists gathered in Nairobi to present to a prominent jury of African business leaders and investors. The panel was chaired by Malik Fal, Managing Director of Endeavor.

The jury also included some of Africa’s most prominent entrepreneurs and investors, including Kamal Budhabhatti, CEO of Craft Silicon and Grand Prize Winner of the 2010 Africa Awards; James Manyika, Director of the McKinsey Global Institute; Ayisi Makatiani, the CEO of Fanisi Capital; and Tokunboh Ishmael, co-founder and Managing Director of Alitheia Capital.

The winners were evaluated on profitability; return on investment and growth; long-term business strategy; leadership, culture and values; investment in employees; innovation to address market needs; and contribution to the community.

Legatum is a private investment group with a twenty-five year heritage of generating and allocating capital and ideas that can help people to lead more prosperous lives, and which applies its investor’s expertise to a long standing involvement in the sustainable development of communities around the globe.

For more information, please visit Legatum’s website:

 http://www.legatum.com

Omidyar Network is a philanthropic investment firm dedicated to harnessing the power of markets to create opportunity for people to improve their lives. Established in 2004 by eBay founder Pierre Omidyar and his wife Pam, the organization invests in and helps scale innovative organizations to catalyze economic and social change.

To date, Omidyar Network has committed more than $450 million to for-profit companies and non-profit organizations that foster economic advancement and encourage individual participation across multiple investment areas, including microfinance, property rights, consumer internet, mobile and government transparency.

To learn more, visit http://www.omidyar.com

 www.AfricaAwards.com

Back top of page

"fiscal restraint will be critical to maintaining Sierra Leone’s macroeconomic stability" – says IMF

8 December 2011

The international Monetary Fund (IMF) last night issued its assessment report on the health of the Sierra Leone economy, ending several weeks of speculation as to the direction and effectiveness of the government’s fiscal and monetary policy.

There were fears of the economy facing a downward spiral as the liquidity of the banks, increased government borrowing and falling tax receipts impedes effort to achieve a balanced budget. The government would need to find over Le1 Trillion by the end of this year to balance its books.

The budget statement to parliament delivered by finance minister Samura Kamara, may not have helped in quelling the widespread suspicion of an economy in deep trouble, and the inability of the government to effectively manage and grow the economy. Last week, the government’s Monetary Policy Committee (MPC), which is chaired by Bank of Sierra Leone Governor - Sheku Sambadeen Sesay, announced that; "the Committee had decided to leave the Bank’s Monetary Policy Rate (MPR) at 20%, but increased the corridor on the Lombard Rate by 300 percentage points from 27% to 30%."

Although this increase has been interpreted as an effort to restrain government borrowing, it will affect the liquidity of local banks who regard the Bank of Sierra Leone as 'lender of last resort'.

Yesterday, the Executive Board of the IMF announced that it had concluded its second and third review of Sierra Leone’s economic performance, under a program supported by the Extended Credit Facility (ECF), the outcome of which has enabled "the immediate disbursement of an amount equivalent to SDR 8.88 million - about US$13.8 million".

This disbursement brings the total received so far by the government from the IMF – under this ECF programme to SDR 17.76million - about US$27.6 million. Total IMF funding approved in 2010 - under the three-year ECF arrangement for Sierra Leone is SDR 31.11 million.

With two years yet to run, there is only SDR 3.5 million left in the IMF reserve, in support of Sierra Leone’s economic recovery programme.

Confirming fears of the lack of control of government’s borrowing and spending; the IMF said that it has had to approve "waivers for non-observance of performance criteria on net domestic bank credit to the central government and net domestic assets of the central bank, both for end-December 2010, and for the continuous performance criterion on the ceiling on new non-concessional external debt."

The squeeze on lending imposed by a 3% hike in Central Bank interest rate from 27% to 30% announced last week, pre-empted the IMF’s decision to issue new and tighter controls on the government’s monetary policy.

The IMF says that; it has "approved a modification of three performance criteria for end-December 2011 related to the net domestic bank credit to the central government, net domestic assets of the central bank, and gross foreign exchange reserves of the central bank to reflect envisaged changes in fiscal and monetary policy."

Year on year inflation has risen by almost 2% to 17.15%. It is not clear which of the performance criteria have been modified.

The Deputy Managing Director and Acting Chair of the IMF Executive Board - Mr. Naoyuki Shinohara issued the following statement, following his review discussions with the government yesterday:

"The economy is continuing to recover, reflecting steady growth in mining, manufacturing, and construction. Inflation, however, remains high due to exogenous shocks and loose monetary policy at the end of 2010.

"Given tighter policies and more favourable external conditions, inflation is expected to decline in the near term. Gross international reserves remain at comfortable levels.

"Notwithstanding progress with respect to macroeconomic and structural policies, recent performance under the authorities’ program, supported by the three-year Extended Credit Facility, has been mixed.

"Despite improved revenue performance in the second half of 2010, an acceleration of infrastructure investment under the government’s Agenda for Change led to a surge in unbudgeted spending and commensurate liquidity expansion. As monetary policy accommodated the fiscal easing, key fiscal and monetary targets for December 2010 were not met.

"The government took action in early 2011 to tighten policies, resorting to both revenue and expenditure measures, resulting in improved program performance. It is also taking action to impose a statutory limit on central bank credit to the government. Continued fiscal restraint will be critical to maintaining macroeconomic stability in the period ahead.

Whilst the IMF was unable to confirm the government's projected economic growth figures, which many analysts believe to be far too ambitious - 50% in 2012, Mr. Naoyuki Shinohara  said  that;  "The medium-term outlook is favourable. Full operation of an iron ore megaproject in 2012 is expected to boost GDP and exports substantially."

"The fiscal space for infrastructure investment and social spending is, however, constrained in the near term, as government revenue is expected to increase only gradually in the first years of new mining activity.

"Financing the upcoming elections, as well as the government’s decision to reduce excises on fuel, puts additional burdens on the 2012 budget.

"Monetary policy will seek to contain inflationary pressures, bringing inflation down to single digits by 2013, while improving policy implementation and communication. Exchange rate flexibility should be maintained to facilitate adjustment to external shocks.

"Administrative reforms must also underpin policy efforts with a focus on improving tax administration, strengthening public financial management, and deepening the financial sector. These reforms will help create fiscal space for capital and social spending, while encouraging private sector investment and activity in support of inclusive and broad-based growth", Mr. Shinohara added.

Unemployment in Sierra Leone is running at over 80% and average daily income is less than $1. With few families going to bed with more than one square meal a day, the president's 2007 promise to ensure that no one goes to bed hungry, and that youth unemployment becomes a curse of the past, is yet to be realised.

Critics say that whilst a surge in mining production will certainly increase the country's GDP in the medium term, the impact on poverty and unemployment may not necessarily be felt, if the country's non-mining industries - the engines of job creation, are left to continue to decline. 

The government needs to re-adjust its spending priorities in support of improving the productive capacity of the economy.

Back top of page 

Cooperative enterprises put business in the hands of cocoa farmers

Mohamed Sidie Sheriff - World Bank, Freetown

7 December 2011

Cocoa farmers in Sierra Leone are coming together to increase the value of their produce. They are establishing cooperative enterprises that will effectively market and export their crop. Cooperatives promote increased competition, drive up prices and give farmers a sense of ownership.

The World Bank is supporting the cocoa cooperatives through its Rural and Private Sector Development Project.

In Sierra Leone’s eastern district of Kailahun, Kenema and Kono, the farmers have formed three independent cooperatives that pool cocoa bean exports, and help them compete with large companies. With a membership of almost 13,000, momentum is growing.

"The cooperative network generates a sense of ownership among indigenous cocoa farmers, helps increase price consciousness and generates competition with private companies that leads to higher prices," said Charles Annor Frempong, World Bank Senior Rural Development Specialist and team leader on the project.

The three cooperatives are all independent, but come together to form a cocoa export company called KayeiGworma, which synchronizes their business activities and helps them compete in the international market.

"The coming into being of our cooperatives has begun to build a new wave of international market price consciousness in the cocoa sector, which has forced traditional cocoa exporters to increase their price offer to us farmers from 1,500 Leones per pound of dried cocoa beans to 3,500," said Mary Kaikai - a war widow and local farmer. Mary is responsible for taking care of her six children in Nimikoro Chiefdom. "This has benefitted all cocoa farmers in the country, irrespective of their membership in our cooperatives," she says.

Although co-op members have yet to meet their target export volume of 3,000 metric tons of cocoa per harvest season in 2011, up from 1,000 in 2010, the sense of ownership has boosted pride among the farmers.

"Within our cooperatives, a new sense of ownership and greater assurance of economic security and social safety net is creeping through our member farmers," Kaikai said.

Increased competition and higher income

With the entrance of cooperatives in the market, traditional private cocoa exporting companies now faced with new and growing competition.

Since the cooperatives were formed, the companies have increased their price offers and incentives to cocoa farmers to between 3,200 and 3,500 Leones. Private companies also offer farmers other incentives, including advance loans in the form of food-for-work and shelter materials.

These shelters help indebted farmers store their cocoa after the harvest season, instead of selling it at lower prices that are often dictated by the creditors - as a form of debt relief. The companies also provide trucks that can navigate the rugged rural road networks to cocoa growing villages.

Despite some of these incentives, the cooperatives are still forced to fight back against the private companies, which have tried to keep prices low by buying from non-cooperative farmers and purchasing low-quality cocoa.

Cooperatives look to success in Ghana

In their bid to survive the competition and challenges, the cooperatives have been drawing from similar experiences of successful cooperative arrangements and growth in Ghana. This is done through continuous hands-on mentoring by a cocoa expert from Ghana, Kwabena Ohemeng-Tinyase.

"Prior to the project’s intervention, cocoa farmers in Sierra Leone faced numerous setbacks after the war," said Ohemeng-Tinyase. "Many had to redevelop their farms and did not know the best procedures to produce high quality cocoa beans."

He observed that farmers also played no role in marketing their cocoa, and had no control over their selling price.

"By putting the control of the business in the hands of the farmers, the cooperatives can now help members reap the greatest possible benefits from cocoa farming," he said.

World Bank Involvement

Before the country’s civil war began in 1991, cocoa was Sierra Leone’s number one agricultural export. In 2006, the World Bank conducted a Diagnostic Trade Integration Study in Sierra Leone that advised the government to focus on cocoa because of its growth potential and the positive experience of exporting cocoa in Cote d’Ivoire and Ghana.

The study’s most important message was "Get the cocoa sector working again".

In order to help boost Sierra Leone's cocoa farming sector, the cooperatives launched a program that aims to transition small-scale farmers to larger scale production for international export. This was done with management assistance from the Government of Sierra Leone and funding from the World Bank’s Rural and Private Sector Development Project.

In addition to the cocoa cooperative, the project also provides knowledge and equipment to farmers, improves rural infrastructure and supports storage facilities.

Back top of page

Timbergate corruption scandal – justice delayed is justice denied

Kawusu (Bintumani Forumite)

7 December 2011

Vice president Sam Sumana

It’s been over a week since Vice President (VP) Samuel Sam sumana was caught on tape negotiating a bribe for personal financial gain. One would have expected a swift resignation to follow the unfathomable brazenness and world class stupidity exhibited by the man occupying the second highest office of the land.

Indeed, the words and actions of the VP as presented in the tapes are so preposterous that it would not be far-fetched to suggest that should he hurled before a court of law, the VP will plead not guilty by reason of mental defect.

However, Sam sumana has been silent, which may not be unconnected with assurances from pro-government media outlets that the VP has done nothing wrong.

Additionally, some outlets, in their usual display of unbridled sycophancy, have sought to overthrow the merits of Sorious Samura’s operations on the grounds that what was captured on tape did not take place in the VP’s office.

But reasonable minds can agree that it matters not where the transactions in question took place. Correspondingly, in a world of improved communications systems spurred by rapid technological progress, political systems have evolved to a magnitude where offices like the VP’s have become more of a process than a place.

This signifies that Sam Sumana’s office can rightly be held accountable for transactions done in its name at any physical structure, over the phone, over the internet and in any geographical location whatsoever.

Yet, even more egregious is the argument from the VP’s friends that the VP is a victim of a vicious tribalism within the ranks of the APC. Accordingly, the "Bombali Mafia" is identified as the group after the VP’s head. Nothing could be further from the truth.

Political crooks in Sierra Leone do not discriminate on the basis of ethnicity or regionalism. They are all united on a common purpose – loot as much as possible from the public coffers.

Many, who hail from the business sector, see politics as a fertile ground for furthering shady and unscrupulous ambitions nurtured in the business world.

This explains why President Ernest Koroma of Bombali is attracted to Sam Sumana of Kono. It also explains why Sam Sumana of Kono was attracted to Alex Mansaray and Momoh Konteh, two Bombali crooks, who reportedly have now fled to the United States.

Thus, to suggest that the VP is a victim of tribal hatred is not only presumptuous but totally absurd.
Ultimately, the VP’s continued service will pose a serious embarrassment to Sierra Leone in international affairs.

Where else in the world has a sitting VP been captured on tape attempting to fleece foreign investors with such wanton sordidness?

Appropriately, like the tragic Hester Prynne in Nathaniel Hawthorne’s "The Scarlet Letter", Sierra Leone will continue to wear a badge of sin, dishonour and guilt in international relations as long as Sam Sumana remains in public office.

This does not augur well for a country trying to gain relevance in an age of massive international capital flows. Would foreign investors be attracted to Sierra Leone when a tape exists depicting the VP as a reckless extortioner?

Frankly, Sam Sumana’s baggage is so feculent that if this guy is not kicked out of national politics, Sierra Leone will continue to pay a high price in dwindling inward foreign direct investments.
 

Back top of page

Guinean Central Bank moved to tighten monetary policy and succeeds in controlling inflation

6 December 2011

A mission of the International Monetary Fund (IMF) headed by Mr. Harry Snoek visited Guinea during November 10–22, 2011 to review developments, conduct discussions based on the 2011 Article IV consultation, and to seek to reach understanding with the Guinean authorities on a macroeconomic and financial program that could be supported by the IMF under its Extended Credit Facility.

President Conde

The mission met with President Alpha Condé, Prime Minister Mohamed Saïd Fofana, Minister of Economy and Finance Kerfalla Yansané, Deputy Minister of Budget Mohamed Diaré, Governor of the Central Bank of the Republic of Guinea (BCRG) Lounceny Nabé, and other senior government officials and development partners, as well as with representatives of the Comité National de Transition and civil society.

At the end of the mission, Mr. Snoek issued the following statement in Conakry:

"Guinea made good progress under its 2011 economic program, which, at the authorities’ request, is being monitored by IMF staff. Helped by the normalization of the political situation and high growth in agriculture, the economy is likely to grow by some 4 percent in 2011.

"Following the serious lapses in controlling government spending in 2009-10, the new government has taken important steps to stabilize the fiscal position, eliminating the need to obtain new credit from the BCRG. Freed from the burden of financing the budget, the BCRG moved to tighten monetary policy and has succeeded in containing the pace of inflation and laying the basis for reducing the inflation rate in the period ahead.

"Public financial management has been strengthened, especially through the use of cash-based budget management, while the adoption of a new mining code is expected to increase the share of revenues from exploitation of natural resources that will accrue to the State.

"The main objective of the government’s macroeconomic and financial policies over the coming years is to substantially reduce inflation while implementing a broad range of reforms aimed at promoting economic growth and reducing poverty.

"Investment in the mining sector is increasing rapidly and should generate substantial additional budgetary revenues starting in 2015. In the meantime policies supported by large one-off revenue from the mining sector will focus on improving Guinea’s weak infrastructure base, thereby helping to support broad-based growth that will benefit the entire population.

"The government intends to complete the process toward the completion point of the Enhanced Heavily Indebted Poor Countries Initiative in 2012; this would provide permanent relief from the heavy burden of Guinea’s external debts, freeing up resources for other purposes.

"The outlook for faster economic growth in the coming years is favourable. Government investment is projected to increase sharply in 2012, financed by one-off revenue from the mining sector and by a resumption of donor assistance. With a strong reform effort and high investment in the mining sector, annual growth should be in the range of 4–5 percent.

"But careful management of the one-off revenues received from the mining sector will be important to ensure that public spending can be maintained after these resources have been exhausted.

"The mission has reached agreement ad referendum on key elements of a macroeconomic and financial program, notably on the budget for 2012 that could be supported by the IMF under the Extended Credit Facility. Discussions will continue in the coming weeks, with the aim being to submit the program for approval to the IMF’s Executive Board early in 2012."
 

Back top of page

Chasing a dream of selling African chocolate in China

Dr. Kandeh Yumkella

6 December 2011

As an African, my dream for the next decade is to see the continent producing and selling chocolate to 300 million Chinese, instead of exporting raw commodities like cocoa.

Several weeks ago, at the China-Africa Symposium in Xiamen, China, I tested this vision on the audience, and the 2,000-plus delegates joined in resounding applause. Business and government leaders are evidently ready to see Africa introduce structural change aimed at creating manufacturing-based national economies.

While many have touted Africa's success in maintaining a 5-6 per cent average GDP growth rate during the past decade, this masks the reality that by 2005, sub-Saharan Africa was little better off than it was a quarter-century earlier: it was still the world's poorest region, with just over half of its population living on less than $1.25 (Dh4.58) a day in purchasing parity terms.

The region's countries are on a poverty treadmill, running fast just to remain in the same position. This needs to change.

The orthodox agriculture-led growth strategy of the 1960's, the favoured antidote to five decades of a "happy peasant" aid doctrine, must be replaced with an agribusiness development strategy whereby policymakers, donors, and entrepreneurs target the entire value chain to support a shift from bulk products to value-added, agro-industrial manufactured products.

Extreme poverty

Several years ago, James Wolfensohn, the late World Bank president, describing a new international order, described a "four-speed world": the affluent, the converging, the struggling, and the poor.

Converging countries are closing the gap with the affluent OECD countries; struggling countries have failed to progress from middle-income status; and poor countries — most of them in Africa — are mired in extreme poverty.

The good news is that since the 1990s, the number of poor countries in Africa has fallen from 35 to 21, and the number of converging economies has increased from two to 17. But 13 of the latter are either dependent on oil exports (Angola, Chad, Equatorial Guinea, Nigeria, and Sudan), or mineral exports (Botswana, Ghana, Mozambique, Namibia, Sierra Leone, South Africa, and Tanzania).

Moreover, the new realities of the unfolding global economic crisis that started in 2008 suggest that the North-South flow of capital, aid, and finance of the past 50 years will not continue.

But it is also clear that by 2030, today's emerging markets will account for 60 per cent of global GDP and 40 per cent of the world's consumer spending. Justin Lin, Vice-President and Chief Economist of the World Bank, speaking recently in Mozambique, encouraged African countries to take advantage of the "emergence of large middle-income countries such as China, India, and Brazil".

They should position themselves to capture from China "100 million labour-intensive manufacturing jobs; enough to more than quadruple manufacturing employment in low-income countries."

Can Africa position itself in the global economy to produce and sell finished goods, especially processed foods and agricultural products? Can the continent break the North-South commodity-based pattern of trade, and inaugurate a pattern of South-North-South triangular trade based on higher-value products?

Working with leading experts like Tony Hawkins of the University Of Zimbabwe Graduate School Of Business, the United Nations Industrial Development Organisation has formulated a roadmap to accelerate Africa's agribusiness revolution.

It calls for enhancing agricultural productivity; upgrading value chains; exploiting local, regional, and international demand; strengthening technological effort and innovation capabilities; promoting effective and innovative financing; stimulating private participation; and improving infrastructure and energy access.

An agribusiness development strategy focused on higher-value output and stronger productivity growth throughout the value chain represents one of the best opportunities for rapid and broad-based economic growth and wealth creation in Africa. It also may be one of the few local pathways out of poverty for small farmers.

Africa still has limited agro-processing activity and capacity in rural areas.

As a result, sub-Saharan countries experience up to 40 per cent post-harvest losses, especially for perishable commodities such as fruit and vegetables. In other words, almost half of what is produced on Africa's farms rots there, while the vast majority of the population goes to bed hungry.

I have seen this happen in Plateau and Benue States (supposedly the breadbasket of Nigeria), and in villages and towns in my home country, Sierra Leone.

Opportunities ahead

The average chemical fertilizer use in sub-Saharan Africa is 12.5 kg per hectare of arable land, compared to the world average of 102 kg per hectare.

Similarly the agriculture sector is undercapitalised, with extremely low levels of mechanization: an average of 13 tractors per 100 square kilometres compared to 129 per square kilometres in South Asia. Only 10 per cent of Africa's hydropower potential is exploited, compared to 70-80 per cent in OECD countries.

By 2030, more than 50 per cent of Africa's 1.4 billion inhabitants are expected to live in cities. Urbanisation brings with it opportunity, as consumer demand will most likely shift towards higher-value processed foods, including fruit, vegetables, vegetable oils, fish, and dairy products.

Thanks to skilful marketing, an Indonesian company convinced millions of Nigerians in just five years to consume an instant-noodle product, known as Indomie, instead of the popular cassava product called Gari. There is no immovable reason why Africa countries — and companies — cannot do the same thing. But that requires adopting a new mantra for eradicating poverty, eliminating hunger, and creating wealth: from cocoa to chocolate, from cotton to garments, and from bauxite to aluminium.

Dr. Kandeh Yumkella (Sierra Leonean), Director-General of the UN Industrial Development Organization and an editor of a new publication ‘Agribusiness for Africa's Prosperity’.
 

Back top of page

President Koroma’s government 2012 Budget slammed by Civil Rights group

3 December 2011

Sierra Leone government’s report on the state of the economy, forecast growth and budget for 2012, was delivered to parliament in the wake of the Timbergate corruption scandal, which threatened to bring down president Koroma’s government.

President Koroma

The reaction of the country’s media to his government's planned budget for 2012 has been mute. But civil society groups - who as usual have been outstanding in holding the government to account, have been swift and incisive in their response. In a press statement published this weekend, the Budget Advocacy Network (BAN), questioned the government’s rationale for the massive cut in anti-poverty programmes for 2012, and the equally mean spirited reduction in health care spending, despite the immediate need to increase expenditure on health care, so as to save the lives of vulnerable groups.

The international donors are currently paying for over 80% of the cost of the government's free health care programme for lactating mothers, pregnant women and children under five years old.

The government’s budget shows that spending on road construction is far greater than that which the government spends on education and health combined.

This is what BAN says in their statement:

"The Budget Advocacy Network (BAN) is a Network of Civil Society Organizations in Sierra Leone committed to work on government budget and its related issues to enhance pro poor policies and programme. BAN carefully studied the 2012 budget and came up with brief observations and recommendations.

"This brief statement on the 2012 Budget is as a result of a quick review of the national budget presented by the Minister of Finance and Economic Development to Parliament on 25th November 2011.

"BAN will later follow this press statement with an extensive analysis of the 2012 Budget Statement and share the findings to all the stakeholders.

"We want to commence this statement by commending the government for improving upon the data provided in the budget profile by adding Ministries, Departments and Agencies Payroll Budget Summary.

"We also applaud the government intention for developing the 'citizen budget' and for participating in the Open Budget Index in the spirit of transparency and accountability.

Key Issues:

 - We call on the government to address capacity needs to manage donor funds

 - Increase budgetary allocation to poverty related activities

 - Focus on domestic rice production

 - Increase budgetary allocation to the health sector

 - Focus more on basic education expenditure

 - Publish all tax exemption forgone

Capacity to Manage Donor Funds

"The 2012 budget recognized deficiencies in administering and managing donor funded projects. According to the budget, a number of donor funded projects have continued to experience substantial delays or cancellation of disbursement due to weak administrative and project management, institutional constraints as well as externally generated constraints.

"Given the fact that foreign loans and grants constitute close to 70 percent of development expenditure, there is the need for government to investigate the situation and find lasting solution to this problem.

"In the interim, we call on the government to strengthen the Development Assistance Coordination Office (DACO) which is responsible for coordinating and managing resources from our development partners.

Poverty reduction "The 2012 budget has as one of its priorities is to ensure inclusive growth and poverty reduction. This priority is laudable. However, we are concerned about decline in allocation to poverty reduction expenditure in 2012. "For example in 2011 poverty related expenditure constituted 63.91 percent of total discretionary expenditure but in 2012 this has reduced to 49.81 percent.

"In 2011 poverty development expenditure as a percentage of total development expenditure is 86.36 percent but in 2012 budget this has reduced to 30.84 percent.

"In subsequent budgets we call on the government to increase allocation to poverty related expenditure so as to reflect the priorities in the Agenda for Change.

Agriculture

"With regards to the agricultural sector, we call on the government to focus on rice production in the country. According to Sierra Leone Export Promotion Agency report, per capita consumption of rice in the country is among the highest in Sub –Saharan Africa and current production represents only 60 percent of total domestic demand.

"There is a shortfall of 40 percent which has to be complemented by imports. This further worsens the Balance of Payments situation in the country. "Aside deterioration in balance of payment, government spends a lot to protect vulnerable groups when price of food increases. According to 2012 budget, over Le 110 billion was used to provide food subsidies and other safety nets because of increase in food and fuel prices. "BAN urges government to provide support to local rice farmers to enable them increase production so as to stabilize the price and minimize the imports of rice. This will not only address the balance of payments problems but also reduce direct budget subsidies on food.

 
Health

The allocation to the Health sector excluding salaries and wages in 2011 was Le 118.9 billion whilst in 2012 it is Le 110.7 billion. With the projected inflation of 8%, the 2012 this allocation to the Health budget declined by 14% in real terms.

"We are very much concerned about such reduction considering the numerous challenges facing the Free Health Care and the health sector in general. In 2012 the health sector receives 6.7% of the total government budget.

"This percentage is far below the government commitment in achieving the Abuja Deceleration (15% of the total government budget to the Health sector) .If we are to achieve the Millennium Development Goal by 2015, the government must double up its efforts including increasing expenditure to the health sector.

Education

"In 2012, the education sector budget rose from Le 112.1 billion in 2011 to Le 138.9 billion. We therefore commend government for the increase of 23.9% budgetary allocation to the education budget for 2012.

"To achieve 'Education for All', we believe the budget should focus more on basic education. Special provision should be made in the budget to increase enrolment, quality and retention of children in schools. We call on the government to provide benchmarks in the budget regarding the status of achieving Education for All targets.

Revenue and Taxation

"While we applaud the measures announced for improved revenue performance including the rolling out of the ASYCUDA++ (software helping the government collecting more revenue), amendments to the Income Tax Act 2000 and GST Acts among several other, we call on the government to increase accountability and transparency with regards to tax exemption offered.

"The government must limit discretionary tax incentives granted to mining companies, by publishing all tax exemption forgone as well as mandating the NRA to implement and monitor all incentives and exemptions.

Conclusion

"BAN sees the budget as an important tool for development and there is the need for all stakeholders to work together to ensure effective budget implementation.. We therefore call on the Media and other stakeholders to take active interest and collaborate with BAN to achieve this goal.

For effective implementation of the budget, it is important MDAs provide quarterly reports to parliament on the status of implementation."

Back top of page

"Where President Koroma fails to act to end corruption and impunity in this country, I shall act" – says Maada Bio

30 November 2011

SLPP presidential candidate - Julius Maada Bio

Presidential candidate for the opposition SLPP – Julius Maada Bio, has today delivered a scathing attack on president Koroma’s government, over allegations of the government’s role in the Timbergate corruption scandal, revealed by Aljazeera television last week. In a statement, seen as a strong show of leadership by the recently elected presidential aspirant to lead the opposition SLPP into next year’s general and presidential elections, Maada Bio questioned President Koroma’s record in office, especially his efforts to tackle corruption and turn the economy around.

This is what he said:

"Under the yoke of abject poverty and economic hardship, the people of Sierra Leone continue to suffer. This has been their lot since the Government of President Ernest Bai Koroma acceded to power in 2007.

"This suffering, borne out of a rapidly crumbling economy, inflation and rocketing prices, reduced food security, mounting unemployment and hopelessness - especially among the youth, and a weakening currency, has now reached pandemic proportions - and there seems no end in sight under the Koroma administration.

"As if condemning ordinary Sierra Leoneans to the margins of economic deprivation and destitution is not bad enough, the stench of official corruption in the Koroma administration is now suffocating even the uppermost echelons of political power, to an extent that, it is posing a serious threat to the country’s hard-won peace and stability - and denting the image of Sierra Leone overseas.

"The latest corruption scandal to rock the Koroma administration is the Al-Jazeera Television 'Africa Investigates' documentary programme, broadcast to the world on Wednesday, 23 November 2011. It has been rebroadcast many times since.

"The programme showed that even the Office of the Vice-President of the Republic - within the Presidency, Hon. Samuel Sam Sumana, is not immune from the corruption virus afflicting the Government of President Koroma.

"In the instant case, it was alleged that the Office of the Vice-President had no scruple demanding a bribe of US$50,000 in return for a licence for logging or for the illegal export of timber, even though there was an extant official ban on such transactions.

"A Government Press Release, emanating from a 'special meeting at State House on 24 November 2011', has informed the public that investigations of the matter by the Police and the Anti-Corruption Commission are underway; that they would be kept fully apprised of progress; and that any breach of the law by anyone, irrespective of status, would be met with the full force of the law.

"It is to be hoped that, unlike the Al-Jazeera programme, the Commission’s investigation is not going to be limited to the Office of the Vice-President.

"Applying the minimum standard espoused in developed democracies like the United Kingdom, where the mere appearance or hint of corruption by a high official of Government, is sufficient for that Government to admit leadership failure in fighting graft. Such a standard is yet to be embraced by President Koroma.

"His decision on the matter (or lack of it) clearly shows, once again, that he is truly not serious about curbing corruption from his Government. Does President Koroma really need undercover investigative journalists from Al-Jazeera to air their documentary, for him to know about the serious breaches of his moratorium on logging and the huge graft associated with them?

"How else can anyone characterise the President’s decision (or lack of it) in the instant case, when even little children know that illegal logging is going on in forested areas around the country - contrary to the official ban on such activity?

"Or indeed, can any objective analysis ignore the fact that no logging or export of timber can ever take place without the prior knowledge or connivance of Ministries such as Agriculture and Forestry, Trade and Industry, the Police and the NRA, etc, etc.?

"In the documentary itself, the award-winning journalist - Sorious Samura, claimed that their “sting” investigation into illegal logging in Sierra Leone was carried out with the prior knowledge of President Koroma.

"The investigation focussed mainly on the Office of the Vice-President, while the sector Ministries and other government agencies with oversight responsibilities for enforcing the ban, received only scant attention.

"And, in all this, President Koroma is quietly absolved from blame. His action (or lack of it) was treated, somewhat erroneously, as unassailable. In the circumstances, should anyone be surprised if Vice-President Sam Sumana decides to resist any pressures to vacate his office? Under the terms of the Constitution of 1991, President Koroma is powerless to sack him.

"At the risk of recycling earlier SLPP Press Statements, it is worthy to recall here the catalogue of corruption allegations that the SLPP had previously highlighted, and in respect of which, the public is still awaiting a response from the President.

"This catalogue includes:

Custom duty waivers to the friends and relatives of the President

Preferential treatment in the award of contracts to the President’s friends and relatives

Issuing Presidential certificates of urgency to debar open and frank debates on important Parliamentary Bills - such as the Mines and Mineral Acts 2009 and the Oil Exploration and Production Act 2011

Inflating contract prices of Government-funded projects

Financing of political parties

Illegal fishing in Sierra Leone waters

Cocaine trafficking

And illegal logging and export of timber.

"To this catalogue may now be added the 'sting' revelation by Al-Jazeera alleging blatant and unbridled corruption in the Office of the Vice-President, involving the demand for and taking of a bribe for lifting the ban on logging and export of the country’s timber.

President Koroma - in a quandary

"The public is left pondering what meaning to give to this latest revelation. "The political reality is that the country is reeling from a grave failure of leadership in the Presidency, compounded by an under-performing Government, whose main interests are defined by considerations other than a commitment to the principles of good governance.

"Failed economic policies continue to plague the country and place tired and angry looks on people’s faces. Moreover the Government’s inability to enforce its own ban is not only tarnishing the country’s image abroad, but also compromising its efforts at 're-branding'.

"While all this is going on at the apex of Government, governance at the national level is getting increasingly precarious and the masses continue to suffer.

"Let me take you back to my Maiden Address to the nation on November 3, 2011. The high rate of inflation in the country is giving rise to a culture of corruption that is going unpunished. But if our long-term goal is sustainable economic growth, and the alleviation of poverty, none of this can occur in an environment riddled with corruption.

"Our fight against corruption, therefore, has to be robust, complete, transparent and non-political. This fight is about ending impunity; it’s about probity, about holding public officials accountable; about compelling them to obey the law and to do things according to the law.

"President Kabbah’s Government started it all. They passed the seminal legislation in 2002. To his credit, after 2007, President Koroma’s Government strengthened it. Between them, they have put in place the necessary legislative and institutional framework.

"What remains to be done now is really very, very simple.

"Mr. President, you really have to get more serious in your efforts to tackle corruption. And you can start right now by removing the immunity you have placed around the sacred cows from amongst family, friends and business partners, and allow the anti-corruption laws to bite.

"Do this and you will soon see the difference in public attitude and perception about corruption in this country. Fail to do this, Mr. President, then nothing is going to change and it will all be business as usual.

I make this solemn promise. Where President Koroma fails to act to end corruption and impunity in this country, I shall act."


Rtd. Brig. Julius Maada Bio

SLPP Presidential Flag Bearer for 2012 Presidential Election

Back top of page

Mayor Herbert of Freetown and council chief officer – Bowenson Phillips charged with corruption

29 November 2011

After many weeks of media allegations of corruption and denials by senior officers and mayor of Freetown City Council, the chickens have come home to roost: the Anti-Corruption Commission has finally decided to indict Mayor Herbert Williams, the Chief Officer of the Council, and eight others.
 

Mayor Herbert Williams

The ten accused persons were named by the ACC as; Herbert Akieremi George-Williams – Mayor, Freetown City Council; Bowenson Frederick Phillips – Chief Administrator, Freetown City Council; Arthur Kwesi-John – Deputy Chief Administrator, Freetown City Council. Others named in the High Court's charge list are: Sylvester Momoh Konnehi – Acting City Treasurer; Desmond Thomas – Head of Cashier’s Office – Freetown City Council; Franklyn Garber – Senior Engineer, Freetown City Council; Alimamy Turay – Municipal Trade Officer – Freetown City Council; Nimata Bendu –Former Finance Officer – Lumley Government Hospital; Aiah Brimah, Development Planning Officer – Freetown City Council; Mohamed Allie Shaaban – Business Man, operating as 'Waka Fast' Construction and General Services.

The accused will all appear in Court on the 5th December 2011, after the ACC yesterday - Monday, 28 November 2011, filed a twenty-five counts charge of corruption against them, with respect to the following offences:

Conspiracy to commit Corruption Offences in the sum of Le744,450,000 (Seven Hundred and Forty Four Million, Four Hundred and Fifty Thousand Leones) relating to a two-day Morgan Heritage Concert;

Misappropriation of Public Funds to the tune of Le1,047,216,300 and USD$19,000 (One Billion and Forty Seven Million, two Hundred and Sixteen Thousand, Three Hundred Leones) and (Nineteen Thousand United States Dollars);

Failure to comply with applicable rules and guidelines relating to the Procurement of Contract for services involving the sum of US165,000 ( One Hundred and Sixty Five Thousand United States Dollars);

Failure to pay employee taxes amounting to Le430,412,432 (Four Hundred and Thirty Million, Four Hundred and twelve Thousand, Six Hundred and Forty Two Leones) being monies deducted from Employees Salaries that were not paid over to the NRA;

Failure to pay NASSIT Contributions in the sum of Le76,123,246.20 (Seventy Six Million, One Hundred and Twenty Three Thousand, Two Hundred and Forty Six Leones, Twenty Cents) being monies deducted from Employees Salaries that were not paid over to NASSIT, amongst others.

According to statement by the ACC, "the Mayor, Herbert Akieremi George-Williams and the Chief Administrator, Bowenson Frederick Phillips, have both been served with copies of the Indictment and put on bail in the sum of Le500,000,000 (Five Hundred Million Leones) and two Sureties to be Property Owners in the Western Area of Freetown".

This is a very important test case for not only the ACC Czar, but more so for president Koroma on whom all eyes are now set – in his fight against corruption, following last week's revelation by Aljazeera TV of corruption at the highest level of government.

The vice president and his two business associates are caught on camera willing to accept over $100,000 bribe, in return for the flouting of timber export laws. The ACC has promised to investigate and bring those accused to justice, including the vice president.

The mayor of Freetown – Herbert Williams is a key member of the ruling APC party and a major vote puller for the government in many constituencies around the capital – Freetown.

But with general and presidential elections just twelve months away, the president would want to see that the corruption case involving the Mayor is concluded as swiftly as possible. The ACC is said to be determined to ensure that justice is served.

Back top of page

Microfinance can lift the poor out of poverty

28 November 2011

Under a novel microfinance arrangement in Ethiopia, tiny bits of cash get to the rural poor - leading to a steady alleviation of poverty. Reporting for Africa Renewal; Andualem Sisay examines the impact of microfinance on poor communities in Ethiopia.

At the outskirts of this town, 45 kilometres south of Addis Ababa, the Ethiopian capital, Aselefech Desalegn fights the flames she uses for baking enjera, Ethiopia’s staple flatbread. Like millions of poor Ethiopian women, she is also constantly battling to feed her children. In recent years her livelihood has depended on supplying enjera to hotels in the town. "Except for the chair you see over there, all you see in the house comes from Buusaa Gonofaa," she says, referring to the microfinance organization that has helped fund her home-based business.

Fifteen years ago Aselefech left her poor parents behind in a nearby rural settlement and moved to this town (which was previously called Debre Zeit). Since many rural families in Ethiopia harvest but once a year, it has become common for rural youth like Aselefech to either migrate to urban areas or even to Middle Eastern countries where they work as house maids.

After getting her first 500 birr (about US$30) loan from Buusaa Gonofaa seven years ago, Aselefech started selling charcoal and eggs on the side roads of Bishoftu.

"Although I earned better than in my previous job as a cook in a hotel, I couldn’t resist the heat and rain on the street. The business also took me away from my kids," she recalls. So after three years she switched to baking enjera and distributing it to hotels.

Aselefech is now among Buusaa Gonofaa’s regular clients, with access to $455 in loans, repayable at either 9 per cent interest over six months or 18 per cent per year. From the profits selling enjera, she can not only take care of her children, but also send money back to her family to help them obtain food and to fatten their cattle.

Microfinance institutions in Ethiopia give loans to poor people on a "group liability" basis, since the poor generally do not have property to use as collateral. Every member of such a group is liable for those who may fail to repay.

It was not easy for Aselefech to find enough people like her to form a group, since many people are not willing to take on liability for others. But Aselefech finally managed to form a group of 13 members. Each has different business ideas, but most buy goods from far away and sell them at a higher price near where they live.

Buusaa Gonofaa was established in 2001 and currently has 50,000 clients around the country. It gives out loans of up to $852 for individuals belonging to a group. Most are poor rural clients.

"We increase the loan amounts to our clients by looking into their previous track records," says Getachew Mekonnin, head of Buusaa Gonofaa’s marketing and social performance section. Members of a group are expected to finish repaying their loans at interest rates ranging from 18 to 30 per cent per year. It is mandatory for clients to deduct a portion of their debt each week.

In Ethiopia’s 2008/09 fiscal year, there were 28 microfinance institutions in the country, with cumulative assets of $375 million. There now are 31 microfinance institutions, a dozen years after the first one was licensed.

As of 2010, they had extended $108 million in loans to nearly 660,000 borrowers. The potential is much greater, but such institutions have limited capacities and fear the risk of lending to poor households, especially in rural areas.

"It is quite obvious that some microfinance institutions are scared of going rural," says Baptiste Ast, a senior microfinance expert at PlaNet Finance, an international non-governmental organization.

From his experience, Mr. Ast believes that governments and international donors can adopt tougher regulations to oblige microfinance institutions and banks to extend more rural financing.

"Rural microfinance is still very new and has a lot of potential, given that the majority of people in Africa still live in rural areas," say Mr. Ast.

"One can be optimistic about the impact that innovative loan and crop or livestock micro-insurance products would have on smallholder farmers," helping protect them against shocks like droughts or floods.

Some studies have recommended that the government allow foreign investors to provide microcredit in Ethiopia, as they do elsewhere in the world. That would mean scrapping a law that prohibits involvement in the sector.

According to a study by the country’s microfinance association, the core capital resources of most Ethiopian microfinance institutions currently come from foreign NGOs or local government. These microfinance institutions are legally required to be set up as shareholder companies and to be regulated by the central bank.

Ethiopia’s severe inflation rate, which currently stands at around 40 per cent, is often cited as a major obstacle to the expansion of the country’s microfinance institutions. Industry players worry that this makes the real interest rate on deposits highly negative, discouraging savings and eroding the saving capacity of potential depositors.

About 3 billion people in developing countries have little or no access to formal financial services. But such access could be a powerful instrument for reducing poverty and enabling poor people to build their assets, increase incomes and reduce their vulnerability to economic stress.

Formal financial services such as savings, loans and money transfers enable poor families to invest in enterprises, improve nutrition and living conditions and provide for the health and education of their children.

To meet that need, microfinance has been growing rapidly over the past 15 years, and currently reaches some 130 million clients worldwide.

According to the World Bank’s International Finance Corporation, the global growth of microfinance has been driven by many factors, including the transformation of microfinance providers, the sizable supply gap for basic financial services, the expansion of funding sources and new technologies.

Many experts agree that when done responsibly, microfinance can have a significant development impact and improve the lives of people such as Aselefech. But other initiatives are also needed.

"One would be naive to think that microfinance alone can eradicate hunger and poverty," cautions Mr. Ast.

"This is a very good tool to empower people, especially women. But it cannot be considered as the miracle solution."

www.un.org/africarenewal

Back top of page

Investment boost for West African mining and power - WAMPEX powers regional development

28 November 2011

It’s been called the 'West African gold rush' and is seen as a 'mining hotspot', one of the world’s fastest growing regions for gold production. West Africa is also abundantly endowed with many other mineral resources and offers huge opportunities for global and local companies. The only impediment to its success is an unreliable power supply.

To address this, West African regional governments have embarked on a major development programme to expand infrastructure and increase capacity. In doing this, the region’s infrastructure and power issues have in fact become an opportunity, much like its mining sector.

"Fortuitously, the West African Mining and Power Exhibition (WAMPEX) provides a versatile and powerful platform for facilitating business and trade in these sectors," says John Thomson, Managing Director of Exhibition Management Services, co-organisers of the event.

WAMPEX is the leading mining and power trade show for West Africa, and takes place in Accra from 6 to 8 June 2012.

"With the flood of mining and power projects and related business opportunities gearing up in West Africa, WAMPEX provides a comprehensive networking hub for suppliers and stakeholders to do business."

Frost & Sullivan Research Analyst Moses Duma believes that the on-going power sector reform programmes in West Africa have opened up the power industry to private participation.

"The reforms have created an environment conducive for power producers to compete in power generation and also distribution," he says.

Currently power demand outstrips supply – a result of unprecedented economic growth, driven by the growing oil industry. "The power sector in most West African countries is characterised by rolling black outs and high technical losses," says Duma.

"Electricity access ranges between 10% and 40% of the population, but lack of financial and human resources have prevented West Africa from meeting demand. But with the involvement of private power operators, this can only improve."

International Funding offers Opportunities

In August 2011, the Ghanaian parliament approved a US$3-billion loan from China’s Exim Bank for infrastructure projects – with further loans worth another US$6-billion under consideration. The funding is part of a US$13-billion agreements package signed in 2010 between Ghana and Chinese banks to develop infrastructure projects, particularly in the oil and gas sector.

"This presents considerable opportunities for developers, suppliers, service providers and consultants, not only in Ghana but in the Region as well," says Thomson.

"The US Export-Import Bank has identified Nigeria as one of nine countries offering US companies the greatest opportunities for sales, and recently signed a US$1.5-billion deal with the Nigerian power ministry for US companies to work in the underperforming power sector."

The privatisation of the country’s electricity generation and distribution sector has already begun, with dozens of licences issued for independent power projects. Nigeria’s privatisation agency aims to complete the sale of six power plants and 11 distribution firms by the first quarter of 2012.

By 2015, the country plans to boost its power output from the current 4 000 megawatts to 15 000 megawatts.

Last year, Nigeria received a $3bn funding boost from the African Development Bank and $2bn from the Islamic Development Bank for the rebuilding of power infrastructure.

"And of course, Nigeria’s massive oil and gas sector provides considerable overlap with the mining and power sectors to provide additional infrastructure development opportunities for stakeholders," says Thomson.

"A new $10-billion gas-fired power plant will become the largest in Nigeria, with capacity to provide power up to 5 million homes in Nigeria."

The China Development Bank has loaned Ghana $800-million to develop its natural gas infrastructure. A gas pipeline will link the offshore production site to a new processing plant in west Ghana.
Mining Projects Aplenty

A recent survey by Infomine of mining companies operating in Africa and listed on the Toronto Stock Exchanges indicates that 107 mines are active in West Africa, well above the 69 in Eastern Sub-Saharan Africa, 49 in Southern Africa, and 39 in Western Sub-Saharan Africa.

"Clearly, the opportunities are almost boundless and spread far beyond the only the West African area," concludes Thomson.

About WAMPEX

This is the 10th International Exhibition for suppliers to West Africa’s rapidly growing mining and mineral resources sector. International suppliers of mining equipment, technology, services and consumables, as well as those companies offering power generating equipment, transmission and distribution equipment and technology, will showcase their products and services.

The event is organised by Exhibition Management Services in association with EPI Events and Projects International Limited.

Contact Serean at Exhibition Management Services. Tel+27 (0)11 783 7250. Fax +27 (0)11 783 7269.

E-mail: marketing@exhibitionsafrica.com

Back top of page

Government of Sierra Leone and the Anti-Corruption Commission issue statements about the Timbergate corruption scandal

26 November 2011

Vice president Sam Sumana

After a frenzied and somewhat schizophrenic response to the Aljazeera television report on the country’s Timbergate corruption scandal, involving vice president Sam Sumana and two of his business associates - Alex Mansaray and Momoh Konteh, both the government and the Anti-Corruption Commission have released statements to calm the nerves of people in the streets and the international community. The government issued the statement following a cabinet meeting at State House – chaired by an 'angry' president Koroma, who after four years in power, is still struggling to  win confidence for his 'zero tolerance for corruption' policy.

Many in the country and outside, believe that corruption in high places is stifling the country’s development, as the Aljazeera documentary reveals.

In its statement, the government said:

"The attention of the Government of Sierra Leone has been drawn to a documentary programme aired by Al Jazeera English in its current series entitled 'Africa Investigates'. Government has critically reviewed the said documentary with a view to instituting a detailed investigation of the several issues raised that suggest a serious breach of the ongoing moratorium on the logging industry in Sierra Leone.

"Government acknowledges and appreciates the good efforts of Al Jazeera in bringing these issues to the fore.

"Government reiterates that the moratorium on the felling processing and export of timber remains in full force. Thus, Government emphatically rejects statements which are contrary to Government policy made in the programme by certain persons who are non-government functionaries.

"In the meantime, the public is assured that Government will fully address the matters aired in the programme. In line with its accountability policy, Government will undertake additional stringent measures to forestall any future breaches of its environmental and conservation policies to protect and sustain the country’s biodiversity.

"At a special meeting at State House on 24th November 2011, the President reiterated government’s national and international environmental obligations while emphasizing the need for maintaining the ban on uncontrolled logging. "Once more, Government wishes the public to know that any breach of the Law by any person, irrespective of status, will meet with the full force of the law. The investigations by the Police and the Anti Corruption Commission on the issues highlighted are well underway. The public will be kept fully informed of progress."

With the government’s swift statement making it clear that there will be an investigation by the police and the country’s Anti-Corruption Commission (ACC), the anti-corruption Czar wasted no time to confirm that he has set the investigation process into motion.

The ACC’s statement reads:

"The notice of the Anti-Corruption Commission (ACC) has been drawn to a publication on Al Jazeera television broadcast at 22:30 GMT on Wednesday, 23rdNovember 2011 in its 'Africa Investigates' series relating to allegations of corruption in the illegal timber trade in Sierra Leone.

"The documentary highlighted footages of transactions in which allegations of acts of corruption, such as soliciting, accepting or obtaining advantage; bribery; and peddling influence, were levelled against certain persons inclusive but not limited to the Vice President of the Republic of Sierra Leone.

"In view of the weight and level of allegations as contained in the documentary, the ACC has decided to institute an immediate in-depth investigation into the matter. The ACC calls upon the Government of Sierra Leone to grant unfettered access to documents, materials and persons of interest to the investigation.

"It may be recalled that in March this year, at the High Court of Sierra Leone, the ACC indicted 29 persons on bribery and other similar corruption related offences dealing with the trade in timber. This matter is currently before the Hon. Justice Eku Roberts, JA, presiding, and seven witnesses have testified on behalf of the ACC prosecution.


"The ACC therefore wishes to reassure the general public that it will do its utmost to uphold the interests of justice.

Members of the general public are encouraged and embolden, not to hesitate to come forward with relevant information that may assist the Commission in the discharge of its mandate."

But what is still not clear is whether vice president Sam Sumana will resign by next Monday, 28 November, 2011, in order to make way for a thorough investigation into the Timbergate corruption scandal.

Many in Sierra Leone believe that president Koroma may well ask the vice president to step down, pending the outcome of the investigations and any court trial that will ensue.

Already, supporters and members of the ruling party and government are accusing the makers of the documentary of 'setting up' the vice president in order to discredit him. But a growing number of APC party loyalists are beginning to disown this argument as counter-productive - in the country's battle against corruption, impunity and the rule of Law.

Back top of page

Teachers in Liberia are now paid on time: Lessons for Sierra Leone

23 November 2011

Most of Sierra Leone’s schools, colleges and universities remain closed since last July, because salaries of teachers and lecturers have not been paid for many months, and demands for better working conditions have not been met.

The crisis is not about to end soon, as inflation continues to rise, making an already bad economic problem worse for the government.

Many in Sierra Leone are blaming the government for its poor management of the public finances, despite the implementation of what the government itself believes to be 'sound fiscal and spending tracking' systems.

However, there is an old adage: A system can only be as good as the people who manages it and the level of commitment they put into making sure that the system works.

Critics of the government say that the ministry of education is one of the most poorly managed departments in the country; dogged by the lack of leadership, corruption, and patronage. Many believe that the incompetence of some senior officials, including the minister is transforming the ministry into a mere shadow of what it used to be in the 1960’s.

Sierra Leone like neighbouring Liberia is a nation that is rebuilding itself with the help of the international community, after ten years of civil war that saw the destruction of most of its institutions and infrastructures. But unfortunately, that’s where the similarity ends.

Liberia may be a war-torn country like Sierra Leone, but its people and government seem to have the will and conviction to want to genuinely rebuild their education system, recognising that without education there will be no economic development, and poverty will worsen.

As a reflection of this commitment, teachers in Liberia are now paid on time - thanks to a new system set up by the government with help from IMF experts.

Could Liberia’s example be emulated by neighbouring Sierra Leone?

In its Report: "IMF Technical Assistance Finds A Teachable Moment in Africa", it is clear that with strong leadership, political will and commitment to change, a nation can transform its misfortunes and rebuild for the future.

This is what the Report says:

Stephen George is a public high school principal worried about the usual things: how students will fare on upcoming exams, crowded classrooms, and how to make sure his teachers get paid on time.

George has his work cut out for him. Matilda Newport High School in Monrovia, Liberia on the west coast of Africa has all the usual stresses that keep high school principals around the world awake at night.

The civil war wreaked havoc on daily life for the almost four million people in the small West African country. Roads and buildings were destroyed, people were displaced from their homes, and schools shut their doors.

George, the teachers, and students have to contend with the legacy of nearly 15 years of civil war in Liberia.

There are 25 year-olds in his grade 9 classes, 15 year-olds who are the head of the family taking care of themselves and younger siblings after the death of their parents in the war.

And until recently, it took two weeks for his teachers to hunt down their pay checks.

"The previous system was very hectic because in their spare time, you wouldn’t find teachers in their classrooms; they had to leave school to collect their checks," said George in an interview with IMF Survey online.

In rebuilding their lives, Liberians and their government need practical help to fix their economy and financial system.

The IMF’s technical assistance draws on experts in specialized fields such as budget reform, public financial management, and payment systems, from around the world. A country needing help sets its own goals and decides how to achieve them while drawing on the best practices and experience from over 100 countries.

To repair the system, the Ministry of Finance, with guidance from IMF experts, had to do three things:

- make a list of the teachers and their banking information

- encourage banks to open bank accounts for teachers who didn’t have one

- and then take one check for the whole salary amount to the bank, and ask the bank to simply deposit each teacher’s pay checks directly into their account.

George says the new system is much better and works fine.

Rebuilding after war

How a government manages public finances and runs a smooth financial system is about a lot more than just collecting taxes, and having a transparent budget process and payment system: it’s about governing in an efficient and legitimate way.

"The challenge this government faces is how do you get away from the ills that led to the war; how do you prevent the recurrence of the civil conflict we had in this country? It basically boils down to governance," said Patrick Sendolo, Head of the Special Projects Implementation Unit in the Office of the President, during an interview in his office in Monrovia.

Reforms to help improve the economy, as well as monetary and fiscal policy are key to good governance, according to Sendolo.

"All of those things come together to ensure that as much as possible of the government’s revenues are kept in the coffers to go towards schools, hospitals, clinics, roads and the kinds of things that make people happy, and make society the ultimate beneficiary of the government’s revenues, and prevent the kinds of conflict we experienced in this country over the past 15 years," he said.

Civil society organizations are pushing not only for reforms, but also for more accountability and transparency in how taxpayer resources are managed.

"Those were some of the reasons why we fought the war because people felt marginalized not only politically, but also economically," said Jonathan Doe Nah, the executive director for the Centre for Transparency and Accountability in Liberia.

After a long and destructive civil war, Liberia is slowly recovering. George Kennedy, a reporter and columnist for the Daily Observer newspaper in Monrovia likens the experience to being in a closed house with the heat rising.

"You have the doors closed behind you, and at the end of the hallway the door opens for you," said Kennedy. "When you go out, the breeze begins to touch you; that’s how it feels now after years of war."

Reforms lead to rising revenues

The IMF’s technical assistance is supported by several donors including the European Union, Japan, and Sweden. Their funding has allowed the IMF to share its deep reservoir of knowledge, experience, and experts with Liberia so that the country does not have to start from scratch, but instead can adopt best practices that work for them.

"One of our technical assistance [projects] that we all remember because it’s critical to our reform was the crafting of the public financial management law," said Augustine Ngafuan, Liberia’s Minister of Finance, during an interview in his office in Monrovia.

"The IMF fielded a technical advisor for more than a year who worked with us, discussed the details, nuances and challenges, and was with us during the process of the legislative review and approval. What this has done is put together an overarching frame of laws for public financial management."

Raising revenues is key to help Liberia rebuild. Money is needed to build roads, bridges, and schools, and to fund social programs.

"When the government took over we had revenue of $88 million, and we’re now at $340 plus million U.S. dollars," said Elfrieda Stewart Tamba, Deputy Minister in the Revenue Department at the Ministry of Finance.

"Our modernization strategy has a three-year life span, and we hope that within the third year we could have achieved the level of professionalism and built the integrity of our organization to the point that Liberia could become an African reference for the delivery of professional services to tax payers and for the revenue we collect," she says.

Building local knowledge and expertise

For progress to continue, Liberia needs to build on its success by sustaining the training and development passed on through IMF technical assistance. For example, peer-to-peer exchanges among African countries with good practices and experiences to share have helped in the modernization of Liberia’s shipping ports.

"One of the things we need to work on is to ensure a robust transfer of knowledge mechanism in technical assistance," said Ngafuan.

"As I usually tell our technical assistance advisors, your relevance is seen by how quickly you make yourself redundant."

Click here to view a video:

http://www.imf.org/external/mmedia/view.aspx?vid=1082523636001

Back top of page

Mapping a new future for Africa

Dennis Kabatto

17 November 2011

The Pan African Network at Columbia University’s School of International and Public Affairs (SPAN) in partnership with the Institute for African Studies (IAS) will hold its 5th annual African Diplomatic Forum (ADF) tomorrow, November 18, 2011 at the School's Kellogg Centre in New York City.

The ADF is an annual conference that gathers African diplomats, academics, students and activists to discuss the continent’s interests and role in international affairs.

Organizers say this year's theme, "The Blueprint," will take into consideration the enduring challenges of identifying the necessary foundations, developing the right tools, and drawing a coherent and unified plan for building a continent of strong institutions supported by strong civil societies.

"Our aim for this conference and all the Africa-focused forums we organize is to promote dialogue, to educate participants and to elicit thoughts on the direction of Africa's economic growth and development" said Modupe Onemola, a Gambian born Nigerian graduate student and Vice President of SPAN. "This year we will focus on strategies needed to move the continent forward, region by region. ADF 2011 will consist of panelists from top-level organizations to grass-root leaders who are dedicated to the planning of Africa's future for the coming years," added Ms Onemola

The ADF 2011 is convened at a crucial time when Africa faces a serious threat of becoming a conflict prone continent, considering the recent post electoral crises in Cote d’Ivoire as well as crises in Egypt, Tunisia, Somalia and Libya.

Liberian born Foday Soko Sackor is a SIPA Masters of International Affairs student – specialising in Energy Management. He is the elected President of SPAN 2011 Executive Board. Mr. Sackor believes that this year’s forum discussions of some of the key challenges and opportunities for African development and political security "will yield some very practical ideas and explore issues that are very much part of current policy discussions, and could very well inform the research and career paths of students, as well as the work of professionals who participate."

In his response to the question of security ramifications of the recent NATO bombardment of Libya, Mr. Sackor said; "as for the issue of Libya, our panel themes are designed to address the key issues of African political development and security, but not necessarily to focus on any one event. Libya is an extremely pertinent topic. All issues of security and governance affecting the continent are on the table and we look forward to the perspectives our panelists and participants are going to bring to the dialogue."

Horace Campbell, professor of African-American studies and political science at Syracuse University, currently Visiting Professor - Department of International Relations, Tsinghua University in Beijing, China has written extensively on Africa’s development and security. In an email response to a request seeking comments for this story, said; "the idea of building institutions in Africa cannot move forward without regard for how current institutions are integrated into an international criminal syndicate to plunder Africa." Prof. Campbell also contends that; "Africans must be more forceful on the question of war crimes in Libya. There must be an international tribunal for investigating the war crimes. The crimes against civilians and the indiscriminate bombings of Sirte are issues that must dominate the question of African security. Why, we as Africans are not pushing hard enough is my problem."

During the one day forum, panel discussions - led by experts from academia, the public and private sectors, the UN and civil society, will revolve around the collective security, aspirations and empowerment of African people, and how those who take on the role of stewards for the continent's development can fulfil their duties to maintain its progress.

ADF 2011 will focus on the following themes; Democracy in Conflict; ICT, New Media, and E-Governance in Africa; Role of Women in Political development; Leadership in Africa – Past, Present and Future; Institution Building - Enhancing Efficiency and Effectiveness; BRICS - The New Roles and Relationships for African Development.

Mr. Ahmed Tidiane Souaré, former Prime Minister of the Republic of Guinea will deliver this year’s Keynote address.

The event is free and open to the public. Those interested can click here for more information:

www.adf2011.org

Send an email to: columbia.span@gmail.com

Back top of page

Former London-based SLPP politician branded an APC mole

16 November 2011

The difficult now facing Sierra Leone’s main opposition SLPP party is the question as to how best to deal with disgruntled presidential aspirants who not only lost the presidential candidacy election early this year, but have also failed to be appointed by Maada Bio – the presidential candidate as his running mate for next year’s election.

There are rumours and plenty of evidence of some supporters of the party defecting and declaring for the ruling APC party. But few would have imagined a scenario where any of the losing presidential aspirants, would openly declare their support for president Koroma’s APC in retaliation to the party’s choice of Dr. Kadi Sesay as presidential running mate.

There have been suspicions that Usu Boie Kamara would not only leave the SLPP after his defeat and Bio’s failure to appoint him as running mate, but would join the ruling APC to help president Koroma win a second term.

But it is now obvious after Usu Boie’s unscheduled visit to the SLPP party office in Freetown two days ago, meeting with senior SLPP executives, that he is going no where, but has instead reaffirmed his support for his party.

This demonstration of strong loyalty and conviction by Usu Boie Kamara, which is also being shown by other aspiring SLPP presidential candidates, augurs well not only for the party’s survival and chances of wining the elections in 2012, but the development of Sierra Leone’s democracy.

It is for this reason that news of Kadi Johnson-Cole’s declaration of support for president Koroma during a radio interview in Freetown has been received with dismay, not only by party loyalists, but political observers in the country. Kadi Johnson-Cole went to Freetown in 2010 after living in London for many years as an active member of SLPP, to campaign and fight for election as the party’s presidential candidate. But she lost the election and her deposit of £8,000, managing to poll a single vote.

Following her defeat, she did not resign from the SLPP. Hence, her defacto defection announced on the radio has angered many in the party. She is reported to have said on air that: "Such running mate appointment makes me feel like an idiot. We chose Maada Bio because we thought it was the best choice to unify the party’s south-eastern stronghold, but the running-mate appointment should have been someone with strong social background and can interact with the least people in society."

What is surprising for many though is Kadi Johnson-Cole’s decision to attack and fight her own party from within, rather than resigning. This has prompted accusations of disloyalty, egoism, and betrayal of trust.

But what is certain is that the SLPP party’s official response will be swift, and would no doubt lead to the expulsion of Kadi Johnson-Cole from the party. 

Commenting on this latest development, this is what the erudite and veteran SLPP politician Dr. Sama Banya says:

"There is an unfortunate peculiarity in most African politics; it is that people generally tend to gravitate to the party in power. This characteristic is more common especially in Sierra Leone politics. There are very few stories of people leaving a ruling party that is, the party in government, and the party which is in power at a particular moment in time.

"Generally the reverse is the order of the day, with people leaving an opposition party, especially one which has lost power, when people, sometimes those who held prominent positions in the ousted party or benefited most from their connection to it, suddenly see god and cross carpet.

"One has seen more examples of this in the present disposition than at any other time in the politics of this country. Various excuses are usually given, such as family pressure, going back to their roots; they are impressed with the development strides of the new leadership etc.

"Unfortunately for such characters, they deceive no one but themselves, because the public easily sees through their facade of self-seeking deception.

"Take the case of the recent Koinadugu cross-carpeters. What we do not know about their character could be placed on my eyelids and I wouldn’t even blink. One of them had previously held an executive position from which he was released following very serious criticisms of his leadership.

"He was given a second opportunity, a new position which brought him into daily contact with the chief executive. From that he worked his way to a more lucrative position.

"In his new position he refused to push for the appointment of a chairman for which there was provision in the establishment of the commission, but continued to combine both positions until his party left office.

"When he presented himself before the Parliamentary Committee on Appointments, the then opposition (now today’s government) walked out of the sittings in protest because of the man’s previous record.

"Today for the sake of bread and butter, he has not only become a praise singer of the leadership which is now in power, but he has actually declared for the party. One could go on with more examples of the type.

"I would like draw readers’ attention to last weekend’s monologue programme on which one of the guests was a failed SLPP flag bearer aspirant who then declared for the winner, and had been very close to him no doubt for obvious reasons.

"But her colleagues and many members of the party had reservations about her commitment or a secret agenda. Although she had paid her mandatory candidature fee of 50 million Leones, people continued to have their doubts.

"In a recent exclusive interview at her request with a colleague and me, she volunteered that the other ladies didn’t trust her and that they felt she was a mole for the ruling APC party; they therefore tended to marginalize her and to keep her away from their activities.

"We listened very carefully to her narrative and then asked some relevant questions after which we promised to make inquiries and get back to her either alone or with some of the others.

"In the meantime after a series of consultations, Retired Brigadier Julius Maada Bio the opposition SLPP Presidential candidate, named the former university don, former minister in the previous SLPP government of President Tejan-Kabbah and erstwhile national deputy chairman of the SLPP and Flag bearer aspirant Dr. Kadi Sesay as his running mate.

"The monologue programme host David Tam-Baryoh in introducing the lady in question said that he had been seeking to get her on his programme without success until then. The timing also coincided with Maada Bio having named his running mate, or did the lady come forward in order to vent out her disappointment at not being the chosen one?

"In answer to Tam-Baryoh, she stated very categorically that the SLPP Presidential candidate had erred in choosing Kadi Sesay as his running mate, stating among other reasons that Kadi was not a grass roots politician like herself. Then she admitted that she thought she should have been chosen rather than the other Kadi.

"I have no problem with peoples’ egotism and all that, but what shocked me and has led to the title of today’s column was Kadi Johnson-Cole’s declaration that she would prefer the incumbent President Ernest Bai Koroma to win a second term in next year’s Presidential election.

“I was shocked; as a member of the SLPP I felt betrayed, a sentiment that many others have since expressed to me.

"It was difficult to understand the lady’s position. Here was a woman who had aspired to the flag bearer position of the party, here was a woman who had signed a declaration of her commitment to our party whatever the outcome of the leadership contest; yes, and here was this woman now telling us and the listeners to Tam-Baryoh’s radio programme that she would prefer President Ernest Bai Koroma of the opposition APC to get re elected.

"Was that not a confirmation of the accusation levelled against her that she might well be an APC agent among us, that is an APC MOLE?

In the circumstance I would advise the woman to voluntarily resign from our party. The alternative and my preference would be that the party EXPELS her forthwith. There should be no place for people with such devilish intentions."

Back top of page
 

Sub-Saharan Africa failing to meet the Millennium Development Goal on Sanitation

15 November 2011

A new 'report Off-track, off-target', released today by the international charity WaterAid http://www.wateraid.org, shows that there are more people in the world today lacking adequate sanitation services than in 1990. Unless urgent action is taken, nearly all governments in Sub-Saharan Africa will fail to meet the Millennium Development Goal (MDG) pledge they made to halve the proportion of people without sanitation by 2015.

On the current trajectory, it will take over two centuries for Sub-Saharan Africa to meet its sanitation MDG target. What is more, only 20 countries in the region are on track to meet the water MDG target by 2015. All of this has massive consequences for child mortality in Africa.

Released a day before World Toilet Day, the report states that to get the sanitation and water MDGs back on track, countries in sub-Saharan Africa need to spend at least 3.5% of gross domestic product (GDP) on these services. The report also calls on donor countries to double global aid flows to water, sanitation and hygiene by prioritising an additional US$10 billion per year.

The report also identifies that it is Africa’s poorest people who are being left behind; poor people in Africa are five times less likely to have access to adequate sanitation and over 15 times more likely to practise open defecation than Africa’s rich. According to WaterAid, governments should tackle this inequity through better targeting of water and sanitation resources and services to the poor.

The WaterAid report highlights that the shortfall in water and sanitation services costs Sub-Saharan African countries around 5% of GDP each year ($47.7 billion in 2009), more than is provided in development aid to the entire continent ($47.6 billion in 2009).

In a coordinated move, an international group of 34 female economists have also written an open letter to the leaders of eleven donor and developing country governments, to draw attention to the international water and sanitation crisis. In it they state:

"On the day you read this letter, 4,000 more children under five will die due to diseases brought about through unsafe water and poor sanitation. This equates to more child deaths than AIDS, malaria and measles combined, making it the biggest child killer in Sub-Saharan Africa."

Every $1 invested in water and sanitation generates on average an $8 return; making it the deal that will deliver for billions of the poorest people across the globe. Barbara Frost, WaterAid’s Chief Executive, said:

"Governments in both donor and developing countries have it in their power to save hundreds of thousands of children’s lives every year by increasing what they spend on water and sanitation. Investments in these basic services are engines of economic growth and prosperity in developing countries, but unless we grasp this opportunity we will be failing the millions of poor people whose health, livelihoods and opportunities suffer because they lack these essential services."

The Off-track, off-target report is being published on the day WaterAid launches the Water Works campaign to urge governments across the world to do more to tackle the water and sanitation crisis. The campaign aims to show world leaders that taps and toilets are simple, effective and affordable, and that investing in these basic human needs is an urgent priority.

On World Toilet Day WaterAid will also join other members of the End Water Poverty campaign in 50 coordinated 'Crisis Talk' events in over 20 countries where local groups will be meeting with politicians to discuss the water and sanitation crisis.

In Tanzania, Crisis Talk events are being organised to coincide with the local government budgeting cycle; in the UK, WaterAid’s local supporter groups are meeting with their Members of Parliament; in Bangladesh regional events will be held where the public affected by poor water and sanitation provision will hold members of parliament to account.

Click here to read the full Report:

www.wateraid.org/document/off-track-off-target.pdf

Back top of page
 

Expo to boost business opportunities in Nigeria’s fast growing ICT sector

15 November 2011

The growth of the Information, Communication and Technology (ICT) sector is at an all-time high in Africa and around the world. Mobile communications markets in Nigeria, Cameroon and the Ivory Coast alone earned combined revenue of $8.6 billion in 2009, according to business research and consulting firm Frost & Sullivan. This is estimated to reach $12.6 billion in 2016.

"There are a lot of growth opportunities in both the business and ICT sectors in Nigeria," said Protea Hirschel, ICT industry analyst at Frost and Sullivan, in a recent statement. "Broadband growth alone stands at 23% over the next six or seven years."

W.AFRI-TEL, the West African Telecom Exhibition, which takes place from 8 to 10 May 2012 at the Eko Hotel fair ground in Lagos, Nigeria, will facilitate business opportunities in this booming sector, enabling exhibitors to gain access to the massive Nigerian telecom market that contains over 80 million mobile subscribers.

Now in its 11th year, W.AFRI-TEL is the only event of its kind in the region and the flagship event for the ICT sector. Collins Onuegbu, CEO of IT solutions company Signal Alliance, is also optimistic about the sector’s future.

"Nigeria’s economy is growing by 7% annually while other countries are struggling, and one of the growth drivers is technology. There are numerous opportunities in software, telecoms and all forms of infrastructure, and I believe the Nigerian economy must look to the ICT sector for it to develop and grow in the near future," he said.

Government backs growth

The Nigerian Government is also committed to the growth of the sector. Minister of Communications and Technology, Mrs Omobola Johnson, recently confirmed the newly established ministry will deliver on its mandate to provide robust and efficient ICT infrastructure in Nigeria.

"This includes optimising communications infrastructure in the area of digital content, domestic software applications, the delivery of private and public services, e-business and e-government, and promoting the use of ICT technology in all spheres of life," she confirmed.

"The purpose of this development is to deploy information and communication technology to drive transparency in government, improve the quality and cost-effectiveness of public service delivery and increase the contribution of the ICT industry to the GDP," continued Johnson.

John Thomson, Managing Director of Exhibition Management Services, organisers of the expo, says the potential for growing Nigeria’s ICT sector – the largest telecom market in Africa – is undisputed and largely untapped.

"Nigeria’s mobile market possesses tremendous growth potential, considering that the penetration rate was just 57% at the end of 2010," said Thomson.

"With rapidly improving mobile infrastructure and intense competition among mobile operators, expectations are that the number of mobile subscribers will grow at a compound annual growth rate (CAGR) of around 15% during 2011 to 2014, with a penetration rate exceeding 88% by the end of 2014."

Nigeria accounts for 16% of the continent’s mobile subscriptions.

About W.AFRI-TEL

"As the only show of its kind in the region, W.AFRI-TEL has revolutionised Nigeria's telecoms sector,” says Thomson. "The expo offers a complete business-to-business matrix attracting exhibitors and trade visitors from Africa and abroad. It’s an exciting opportunity for the entire African telecom industry to come together and showcase their products to the world."

W.Afri-Tel Expo will serve up numerous networking opportunities for participants and act as a meeting ground for the entire industry. Showcasing the latest ICT technology and business solutions on offer makes this expo a must for traders looking for future breakthrough technology.

The 2012 W.AFRI-TEL will run alongside a newly-introduced trade expo - the West African International Trade Exhibition for Retail Products (WAITEX). Modelled on the highly successful Southern African International Trade Exhibition (SAITEX) held in Johannesburg annually for the last 18 years, the show provides a platform for exhibitors from around the world to access the West African market.

W.AFRI-TEL is endorsed by the Association of Telecommunications Companies of Nigeria (ATCON).
For more information on W.AFRI-TEL, contact John Thomson of Exhibition Management Services. Tel: +27 11 783-7250, e-mail director@exhibitionsafrica.com or www.exhibitionsafrica.com

Back top of page

 

"Why I chose Dr. Kadi Sesay as my 2012 elections running mate"

12 November 2011

Dr. Kadi Sesay

After many months of procrastinating and rancour, Sierra Leone’s opposition SLPP party will today celebrate the appointment of former trade and industry minister - Dr. Kadi Sesay, as its 2012 presidential election running mate. Taking place in Port Loko in the north of the country – the ancestral town of Dr. Sesay, the ceremony is expected to attract thousands of party supporters and well wishers of Dr. Kadi Sesay, who is also well known as a 'gender rights and democracy activitist' throughout Sierra Leone.

Dr. Sesay’s appointment alongside the party’s elected presidential candidate – Julius Maada Bio, does not come as a surprise. The SLPP is keen to present itself to the electorate as a credible and progressive party, putting 'equality of opportunity and fairness' at the heart of its vision for Sierra Leone’s development.

Although critics of SLPP have denounced her decision to accept the appointment, the Newstime Africa Newspaper describes Dr. Sesay as: "An outstanding public servant, who has managed to shy away from controversies that would damage her hard-earned reputation. It is extremely difficult for a politician in Africa to maintain a dignified record in office for a long period of time, but this once University professor has been a shining example of excellence in public service."

The empowerment of women in a society that economically and socially cannot do without its women folk – yet struggles to respect the equality of rights of women and girls, will play a much bigger role in the country’s politics.

Changes in the country’s demography show women outnumbering men significantly, and this trend is set to continue, with major implications for public policy in Sierra Leone.

But is this the reason why presidential candidate - Julius Maada Bio decided to appoint Dr. Sesay as his running mate in next year’s elections taking place on 17 November?

Speaking in a national radio broadcast two days ago, this is what he told the people of Sierra Leone:

"Today I have the honour and pleasure to name my Running Mate for the Presidential election slated for 2012.

"That person is no other than Hon. Dr. Kadi Sesay. Kadi is a Temne and was born in Rotifunk, Moyamba District. Both of her parents hailed from Port Loko District and came from a strong Muslim heritage. "Kadi Sesay is a household name in Sierra Leone. It means many things to many people. In politics, she is commonly referred to as the Iron Lady of the SLPP, the peace maker, the consensus builder etc, etc. Outside of politics, Kadi is a mother, a policy advisor and a teacher. "In all she has given 30 years of dedicated service to the country in the field of teaching, leading democracy and peace building initiatives, and managing the state at ministerial and party political levels. By appointing Kadi, I believe I am fulfilling many promises at once:

"First and foremost, judging by her track record, Kadi deserves the appointment in her own right as a person who has distinguished herself in her professional calling and even beyond.

"Secondly, she is a woman. Indeed, a woman of humility, respect, honesty, commitment and self-worth. By this appointment she becomes the first Sierra Leone woman to rise almost to the pinnacle of leadership in the SLPP.

"The women of Sierra Leone have been asking for a quota of 30 per cent participation in public life. I sincerely believe they deserve more than that and my Party and I are committed to enhancing the status of women in this country.

"Thirdly, she is not only a woman; she is a woman from a traditional and humble home in the North. By this appointment, she is not only a trail setter; she is also a role model and a symbol of hope especially for the girl child.

"Fourthly, Kadi is from the North-West so to speak just as I am from the South-East. Forging a sense of unity and destiny between the peoples of the South-East and North-West so that they can work together and gel together as one nation remains the cardinal aspiration of the SLPP as symbolized in the motto “One Country, One People”.

"Fifthly and lastly, in the course of my campaign for the position of Flag Bearer of the SLPP, I promised not only the people of the North but those of Port Loko District in particular that my Running Mate shall come from that District. Of course, the scenario then was different.

"Kadi was an aspirant for the position of Flag Bearer while Dr. Abass Bundu, also from the District, was one of my strongest supporters in my bid for the position of Flag Bearer. I pay him the highest tribute for showing selflessness, understanding and broadmindedness.

The SLPP presidential candidate also told the nation:

"Today we mark yet another milestone in the political development of the Sierra Leone People’s Party (SLPP) and its historic relationship with the Northern Region. As you may be aware, the SLPP was the product of an amalgamation of various interest groups from both the then Colony and Protectorate.

"The Party also brought together many great personalities from every corner of Sierra Leone to think and act as one. From the North were such eminent political figures as Amadu Wurie of Gbinti, Y.D. Sesay of Batkanu, Kande Bureh and Siaka Stevens.

"In their company was a huge retinue of Paramount Chiefs the most notable being Adikali Modu and Bai Koblo Pathbana, Bai Shebora Komkanda and Kompa Yek of Port Loko District; Bai Farama Tass and Bai Shebora Yumkella of Kambia District; Almamy Sorie Conteh of Tonkolili; Bai Lansana Marah of Koinadugu; and P.C. Alimamy Dura of Bombali District.

"The seed all of these great men sowed together germinated and blossomed throughout the length and breadth of Sierra Leone in ways they themselves could hardly have imagined – the seed of unity, freedom and equality of opportunity for all Sierra Leoneans.

"These are the great values that the SLPP stands for.

"To the Founding Fathers and many other fallen heroes who contributed to the development and growth of the SLPP in the North, I pay special tribute."

With all eyes now set on the 2012 presidential, parliamentary, chieftaincy and local elections, Bio is fully aware of the tough challenges ahead for his SLPP party, which just four years ago lost by a narrow margin to president Koroma’s All Peoples Congress party - but not after a re-run of the election and the opposition PMDC entering into a coalition with president Koroma.

But Bio appears confident. "Fellow Sierra Leoneans, The stage is thus set for the SLPP to bounce back to power in 2012. I know you will make this certain by voting massively for the SLPP and yours truly," he told the people of Sierra Leone, as he ended his nationwide broadcast.

Back top of page

 

Top Sierra Leonean head of Canadian Intelligence Review Board resigns

11 November 2011

Dr. Arthur Porter

Dr. Arthur Porter, who until yesterday was the Chairman of  Canada’s intelligence Review Board has tendered his resignation to the Prime Minister, following Newspaper report of his 'undeclared financial dealings' and external political relationships. Dr. Porter was trying to broker a $120 Million finance package with an Israeli businessman and the Russian government, on behalf of president Koroma of Sierra Leone. He was recently honoured by president Koroma with the title of Ambassador Plenipotentiary of Sierra Leone.

It is not certain whether Dr. Porter will also lose his other lucrative public sector positions in Canada as a result of this fiasco. He is the head of one of Canada's largest health care providers - McGill University Health Centre.  

News of his resignation, though disappointing to many Sierra Leoneans and expected, was reported yesterday by the Canadian National Post, which broke the story days ago about Dr. Porter’s financial affairs many regard as "unbecoming of the head of a Canadian government intelligence agency".

Reporting for the Canadian National Post, this is what Kathryn Blaze Carlson and Brian Hutchinson said:

Arthur Porter, the beleaguered chair of Canada’s spy review board, has resigned amid revelations of his business dealings with a notorious international lobbyist.

"Dr. Porter has submitted his resignation to me, and I have accepted it, effective immediately," Prime Minister Stephen Harper said in a statement on Thursday afternoon.

Dr. Porter was the federally appointed chairman of Canada’s Security and Intelligence Review Committee, which reviews the activities of the Canadian Security Intelligence Service, but has offered his resignation after the National Post first reported this week Dr. Porter had wired $200,000 in personal funds to Ari Ben-Menashe, a Montreal-based businessman who often acts as a middleman in negotiations between the Russian Federation and developing countries.

In June 2010, Dr. Porter signed a consultancy agreement with Mr. Ben-Menashe’s private company, which obliged Mr. Ben-Menashe to secure a $US 120-million grant from Russia for “infrastructure development in Sierra Leone” managed by Dr. Porter’s own company, Africa Infrastructure Group.

Dr. Porter has mining stakes in Sierra Leone, a country battered by years of war and corruption, and was named by the president of the country to the position of Ambassador Plenipotentiary — a rare title defined as someone with authority to represent a head of state.

Questions arose, then, as to whether Mr. Porter, was in a conflict of interest, whether by working with an international lobbyist on private business dealings outside Canada or by virtue of his plenipotentiary title with a foreign government.

"(The latter) is a complete conflict of interest and it raises the spectre of the potential for foreign influence in Canadian affairs — sensitive Canadian affairs," Wesley Wark, a specialist in the history of intelligence services and national security policy at the University of Toronto, said shortly before Mr. Harper’s announcement.

"The simple fact that someone is on the one hand serving in a very sensitive Canadian position, and on the other hand holds an appointment — however honorific — for a foreign government, is just not on."

Dr. Porter, who was appointed to the committee in 2008 and then promoted to chair last September, told the National Post earlier this week he was not aware of Mr. Ben-Menashe’s background, which includes multimillion-dollar deals with Zimbabwean strongman Robert Mugabe.

Mr. Ben-Menashe was also arrested in the United States in 1999 and charged with illegally attempting to sell three military transport airplanes to Iran. He went to trial and was acquitted in 1990.

Peter St. John, a security and terrorism expert at the University of Manitoba who helped establish the spy review board back in 1984, said board members have to "stay squeaky clean" given the sensitive nature of the job.
According to the committee, members have "access to all information held by CSIS, no matter how highly classified that information may be," with the exception of federal Cabinet secrets.

"This is a very responsible position that deals with Canada’s intelligence," Prof. St. John said. "You have access to an extraordinary amount of information at high levels of secrecy. You have to be very discrete, and you have to have your hands clean, all the time."

Mr. Harper said a process for replacing the chair will begin "shortly", and said Carol Skelton — a current board member — will act as chair until a new one is appointed.

"I would like to thank Dr. Porter for his service on the Security Intelligence Review Committee and to his country," Mr. Harper said in a statement.

Back top of page

 

Ruling APC party MPs vote of no confidence on Deputy Speaker of parliament - Chukuma Johnson

10 November 2011

With a parliamentary majority of more than two-thirds, it should be expected that an election held in the wells of Sierra Leone’s parliament for the position of deputy speaker, would be easily won by the ruling APC party's incumbent candidate - Chukuma Johnson. He did not succeed, after failing to win the confidence of his own party colleagues.

Chukuma Johnson has served as deputy speaker of parliament for over four years and needed to poll a two-thirds majority to be able to continue to serve as deputy speaker.

But political analysts say that he has fallen out of favour with many of his APC parliamentary colleagues, who regard him as arrogant and a thorn in their sides in the fight against corruption.

It is understood that Chukuma Johnson was recently responsible for a parliamentary committee's decision to suspend the funding of the country’s National Revenue Authority (NRA), whilst president Koroma was visiting Germany, to the annoyance of DFID officials.

The incumbent deputy speaker of the House - Chukuma Johnson, was contesting his parliamentary job against the popular opposition SLPP political activist - Honourable Bernadette Lahai, who is said to have polled 38 votes to Chukuma’s 42 votes.  A majority of 82 is required.

What is evidently clear is that the majority of ruling APC MPs sitting in parliament did not vote for their political ally - Chukuma Johnson.

In the absence of an outright majority, the Speaker of parliament - Abel Stronge has decided to hold another election in accordance with the country’s Constitution.

It is not understood whether president Koroma will now urge the party’s whip in parliament to line up his parliamentary MPs to vote for deputy speaker Johnson at the next polling.

A win by the opposition SLPP's Honourable Bernadette Lahai, will most certainly spell a huge morale victory for the SLPP party in a parliament that is dominated and controlled by the ruling APC MPs.

Back top of page
 

SLPP to end uncertainty over choice of 2012 presidential election running mate

10 November 2011

Unconfirmed reports from Freetown say that the opposition Sierra Leone People’s Party will name its 2012 presidential election running mate tomorrow Friday, 11 November, at the party's office in Freetown.

As expected, Dr. Kadi Sesay is poised to be named alongside the elected presidential candidate – Julius Maada Bio. Dr. Sesay was one of the 19 candidates who fought in the party’s leadership election early this year, but lost comprehensively to the former military strongman – Maada Bio. Although many in the party have been expecting Maada Bio to name Usu Bio Kamara as his running mate, what is obvious is that in arriving at what must have been a very difficult decision for Bio, the most important question in his mind would have been:

"which of the contenders will help maximise the party's chances of winning the general elections slated for November 2012?"

Given the party’s very strong and deep-rooted foundation in the southern half of the country, it is absolutely crucial that Bio appoints a running mate of northern and western (Freetown) origin, for the party to have any chance of winning the 2012 elections.

There are at least five contenders for the position of SLPP presidential running mate: Usu Boi Kamara, John Ernest Leigh, Kadi Sesay, Abbass Bundu, and Alpha Wurie, all of whom had lost the leadership election – but had vowed to stay in the party to help win the 2012 elections.

The demographic structure of Sierra Leone shows that over two-thirds of the country’s population are under the age of 35 years and the majority are women. It is these two factors, in addition to the regional-ethnic balance that would most seriously task the mind and decision process of Maada Bio in the next twenty-four hours, prior to announcing the name of his 2012 elections running mate.

Irrespective of whose name is drawn out of the hat, that decision is bound to cause ripples across the deep fault lines opened up at the recent leadership election.

But the fact remains that Dr. Kadi Sesay is the best option, if the party’s objective is to galvanise those fault lines and appeal to women voters across the country - advocating for equal rights and the elevation of women into leadership through 'affirmative action'. Kadi Sesay is a northerner with a strong political base in the country’s capital – Freetown, and a household name that resonates among the female constituents both in Freetown and the north of the country.

She is a former lecturer at the University of Sierra Leone, and a Trade and Industry Minister in the Kabbah led SLPP government, which was defeated by Ernest Koroma’s APC at the 2007 polls.

Few Sierra Leoneans would dispute her political experience and professional credentials.

With the naming of the SLPP's 2012 presidential election running mate tomorrow, one thing is certain apart from ending months of speculation: the party can now get on with the serious business of appointing its shadow cabinet or campaign team - responsible for drafting the party's 2012 elections manifesto, as the huge task of fund raising unfolds.

With president Koroma's government fast running out of policy ideas and credible initiatives aimed at tackling poverty and joblessness in the country, inflation crippling every household; many in Sierra Leone - especially the youth, would welcome tomorrow's announcement at the SLPP party office in Freetown.

Back top of page

 

Why is the Anti-Corruption Commission reluctant to investigate the Freetown City Council?

8 November 2011

When critics of the Koroma led government castigate the president for failing to fully put his zero tolerance for corruption to a test, they are quickly labelled as detractors. Not only has the president failed in curbing corruption in high places, but is stubbornly refusing to ensure that the Anti-Corruption Commission takes its investigation wherever evidence of financial malfeasance and impropriety leads.

Recent Auditor General’s Reports have shown alarming levels of misappropriation of funds across various local authorities in the country – totalling hundreds of billions of Leones, and the Freetown City Council is no exception.

Mayor - Herbert George-Williams

For the last two consecutive years, the Mayor - Herbert George-Williams, management and elected Councillors of the Freetown City Council, have faced huge difficulty balancing the Council’s Accounts, as tax receipts decline amid rising expenditure and allegations of corruption. Since 2008, the management of the Council has relied on central government subventions in order to meet the costs of salaries. Local service provision - such as cleaning of the city suffers in consequence, as street cleaners and refuse collectors resort to frequent industrial actions – including 'work to rule', with growing mountains of uncollected refuse now becoming a major part of the city’s landmark. The 2009 report of the country’s Auditor General shows a whopping Le710, 500,000 missing from the Council’s accounts.

The Mayor and senior management have been accused of misappropriation and misuse of public funds, prompting the country’s parliamentary committee responsible for public accounts oversight to carry out an investigation into the allegations.

Some of the allegations of corruption levied against the Mayor, elected Councillors and senior management of the Council include: Failure to implement procurement regulations according to law. "It was observed that an amount to the tune of Le183,678,000 relating to Consultancy Services for the drawings of structures, Site Clearance etc., was given to three different contractors without the knowledge of the Procurement Unit, thereby demonstrating the procurement procedures were not adhered to, and the contract agreement was not produced for inspection." "The sum of Le959, 298,890 was discovered from among the contractors plus additional payment made with respect to the Sewa Ground Market, but was not stated in the financial statement."

"Le46,273,976.60 were deducted from suppliers but there was no NRA receipts to prove whether those monies were submitted to NRA."

Gross negligence and failure to keep proper records in accordance with the rules laid down by the Auditor Office:

"Examination of payment vouchers presented for audit inspection revealed that payments made totalling Le1,069,139,935.25 were without the relevant supporting documents; receipts, local purchase orders, and that payments were made by Council amounting to Le770,634,405.05 for which payment vouchers were not presented for audit inspection."

Freetown City Council Chief Administrator - Bowenson Phillips

"The sum of Le213,098,064 was disbursed by the council not having the signature of neither the Chief Administrator nor the Treasurer. The sum of Le164,910,000 was paid in respect of 'operation sweep' revenue collection drive, and other related activities, but there was no signature of the recipient of the money." Although the parliamentary public accounts committee is investigating those corruption allegations, many in the country are dumbfounded as to why the Anti-Corruption Commission has not stepped in to carry out its own investigations as required by Law. With the dismal failure of the Anti-Corruption Commission to pursue and successfully convict several high profile officials of the government for corruption, observers say that it is unlikely the president will authorise an ACC investigation into the affairs of the Freetown City Council.

The Mayor of Freetown who himself was recently named in a major Report into political violence in Freetown,  is a close friend of president Koroma and a key player in the ruling APC party.

Political observers believe that the mayor is "one of the president's sacred cows".

Back top of page

Standard Bank loans African Minerals $130 Million to speed up iron ore production in Sierra Leone

5 November 2011

Standard Bank yesterday announced that it has entered into a two five-year loan deal totalling $130 Million with African Minerals Ltd's (AML), to help speed up development of the company’s first phase Tonkolili iron ore project in Sierra Leone.

This loan deal Standard Bank says "will help boost the Sierra Leone economy".

According to Standard Bank, the $130 Million loan is in two parts: $40 Million made out to a local South African manufacturer - RRL Grindrod, which is part of the JSE listed Grindrod Group - to supply 20 locomotives on lease to African Minerals. That portion of the loan was insured by the Export Credit Insurance Corporation of South Africa.

The second tranche loan of $90 Million, was given directly to African Minerals, so as to purchase ore transporting wagons and other mining equipment.

"The locomotives and wagons will be used to haul iron ore along a 200km rail line, of which 130km has been newly constructed in the past 10 months, linking the mine in the Tonkolili district in northern Sierra Leone to the port of Pepel. Under Phase 1, up to 15 million tonnes of iron ore a year will be exported. Sierra Leone becomes the third African country to produce significant volumes of iron ore after South Africa and Mauritania," says Standard Bank.

Conservative estimates put the potential revenue to be generated by Phase 1 of the project for Sierra Leone and AML at about $2 Billion a year.

Sierra Leone holds some of the largest iron ore reserves in Africa. Tonkolili's resources are over 12-billion tons. However, to date the country has been unable to benefit fully from this resource because of insufficient rail and port capacity to transport the ore from the mines to export markets.

Iron ore extraction is widely seen as one of the engines that will drive the reconstruction of Sierra Leone's economy, which had been ravaged by years of civil war.

David Humphrey, Standard Bank's Director for Structured Asset Finance and Leasing, says the funding is significant as the locomotives and rail infrastructure upgrade will enable Sierra Leone to resume iron ore exports after they were halted about 25 years ago.

"Sierra Leone is a country that has received marginal foreign direct investment, and we are delighted that by supporting our clients, RRL Grindrod and AML, Standard Bank has been able to inject a substantial sum into Sierra Leone, more than it has received in the past from traditional donor agencies. By being able to fund the rolling stock for the newly completed rail line between Tonkolili and the port means we have been able to play a major part in Sierra Leone's ability to export iron ore again," says Humphrey.

According to Humphrey, the increased exports will have a strong multiplier effect on the Sierra Leone economy as the country will benefit from new jobs, taxes and royalties.

"We see this loan as an important catalyst for Sierra Leone's economic growth. Mining and its associated infrastructure is a sector where Standard Bank has globally recognised expertise. This transaction again demonstrates our capabilities to provide such funding for the right projects across borders, even in countries where up to now we do have not had a direct presence. The investment is also a strong example of how Standard Bank supports projects that help unlock Africa's wealth and move the continent forward," says Humphrey.

He also said that; "There is a number of major infrastructure projects underway or planned right across the continent and we are confident that Standard Bank can help in the financing of these initiatives."

African Minerals made its first shipment of iron ore from Sierra Leone to China last week.

Back top of page

 

President Koroma assist 754 Pilgrims in Mecca

Alhaji M.B. Jalloh - Information Attaché, Saudi Arabia

3 November 2011

Head of the Sierra Leone 2011 Hajj Mission to Mecca, yesterday handed President Ernest Bai Koroma’s charity payment of US$100  to each of the 754 Sierra Leonean pilgrims performing this year’s Muslim pilgrimage in Mecca. The money is to help pay for the lamb needed to perform the  sacrifice. Alhaji M.S Kargbo who is also the Special Assistant to the President on Political Affairs, said the gesture was as a result of a request made to the President by the pilgrims, shortly before they left Sierra Leone last month.

In a ceremony held in downtown Mecca, the Hajj Mission Chief told the pilgrims that the President appreciates Islam, and has been able to cut across religious and tribal barriers in the country, since his assumption of office in 2007.

Receiving the gesture, various speakers prayed for the President’s continued good health, God’s guidance and sustainable strength to enable him achieve his set goals. They also prayed for sustainable peace and prosperity in Sierra Leone.

Most of the recipients said that they will continue to stand behind President Ernest Bai Koroma at all times. "For some of us, no matter what, we will stand by him day and night and at all times." They also said that President Koroma has never let Muslims  down, as he is always at the forefront of all their wishes and endeavours. "This is the first time Sierra Leone has experienced such a positive stance towards the development of Islam, especially as it is from a leader with a different religious background," they said unanimously. Many of the pilgrims interviewed were very much overwhelmed by the gesture.

The ceremony was witnessed by Sierra Leone’s Ambassador to Saudi Arabia and Permanent Representative to the Organization of the Islamic Conference (OIC), H.E Wusu Munu and other high profile dignitaries currently taking part in the Hajj rituals - Sierra Leone’s Ambassador to Ghana, H.E Osman F. Yassaneh, Deputy Leader of Parliament, Hon. Mohamed Soufian Kargbo and the Deputy Mayor of Freetown, Gibril I. B. Kanu.

Performance of the sacrificial Lamb is one of the Hajj rituals which pilgrims offer on the 10th day of the Hajj Month. Meanwhile, the Hajj ministry says in a statement last night that many of the 2.5 million pilgrims for this year’s pilgrimage will leave for the Mina valley, located five km east of Mecca, on Thursday evening in preparation for the annual event, which culminates in the standing at Arafat on Saturday, 5th November.

Back top of page

"The Gambia is making important progress in its fight against poverty" – says IMF

2 November 2011

With presidential election slated for 24 November, the International Monetary Fund (IMF) mission to the Gambia, led by Mr. David Dunn ended its visit yesterday, after two weeks of intensive talks with various stakeholders and government officials to review economic progress.

The economy will dominate debate in the coming weeks, as Gambians struggle to cope with the global economic downturn and its effect on the country’s tourism industry. According to BBC News Africa: "President Yahya Jammeh is standing for re-election but said he had no plans to campaign as his victory was "a foregone conclusion" and only God could remove him from power. Opposition parties said in October 2011 that they had failed to forge an alliance that might have improved their chances of unseating the incumbent."

The IMF team assessed the government’s efforts in managing its financial and exchange rate policies, in line with Article IV of its charter, and at the end of its review issued the following statement:

"Over the past few years, The Gambian economy has achieved robust growth, despite the prolonged global economic crisis. The Gambia’s Gross domestic product (GDP) grew by around 6½ percent a year during 2008-2010, driven mainly by agriculture.

"Tourism and remittances, however, were hit hard by the global crisis. This year, although tourism has begun to show signs of recovery, GDP growth is projected to slow down slightly (to about 5½ percent), as poor weather conditions in some areas of the country have harmed crop production.

"The 12-month inflation rate has dipped to about 4 percent in recent months and is projected to remain below 5 percent for 2011 as a whole. Gross international reserves remain at a comfortable level at just under 5 months of imports.

"The Gambia, however, continues to face a number of challenges, notably a heavy debt burden. In particular, large fiscal deficits in recent years led to a surge in domestic debt, most of which consists of short-term T-bills that must be regularly re-financed. Interest on domestic debt is on the rise and now consumes 18½ percent of government revenues. Including obligations on external debt, interest consumes 22½ percent of government revenues.

"To address the high cost and risks of this debt, the government has taken bold actions to curb new domestic borrowing. Indeed, the mission commends the government for exercising strong fiscal discipline so far this year—an election year—despite further revenue shortfalls.

"By strictly controlling spending, new domestic borrowing is on track to be just over 2½ percent of GDP this year, down from about 4½ percent of GDP in 2010. This improved performance has contributed to lower inflation and a drop in T-bill yields (by about 3 percentage points since late last year)

"The government aims to continue making progress on easing its debt burden, by gradually reducing new domestic borrowing to about ½ percent of GDP by 2014. The government will also restrict external borrowing to concessional loans with soft terms.

"The mission commends the government for observing strict limits on borrowing from the CBG, including the elimination of its overdrafts. This has allowed the CBG to implement a more consistent and proactive monetary policy. At last week’s meeting of the Monetary Policy Committee, the CBG lowered its policy interest rate for the first time in 2011, by 1 percentage point, to 14 percent.

"If inflation remains subdued, there may be scope for further cuts in the policy rate going forward.

"Falling tax revenues is a major concern. Tax revenues (relative to GDP) have fallen steadily since 2007, and are down to less than 12½ percent of GDP in 2011 (3½ percentage points of GDP below their peak in 2007). At the same time, the tax base has eroded substantially, while the remaining taxpayers face high tax rates.

"To improve this situation and restore revenues, the IMF mission strongly encourages the government to consider a comprehensive tax reform over the next few years, building upon the planned introduction of a value-added tax (VAT). Simplification would facilitate tax compliance, and major improvements in tax administration by the Gambia Revenue Authority (GRA) would be essential.

"The mission recommends that government immediately implement fully its fuel pricing formula, including a specific excise tax, and rigorously adhere to the monthly price adjustments going forward. Implicit fuel subsidies led to substantial tax revenue losses, which could have been used for other priority programs that more directly benefit the poor.

"The IMF mission observes that The Gambia’s banking system as a whole is well capitalized and liquid. Still, the CBG must remain vigilant with its supervision of the system. Banks’ nonperforming loans have begun to fall, but they are still high, and some banks continue to incur losses. We welcome the CBG’s ongoing efforts to build capacity to conduct stress testing for the banking system. The IMF will continue to support this effort with technical assistance. The IMF mission also commends the CBG for taking immediate steps to improve the performance of the Credit Reference Bureau (CRB), which started operating last year.

"To benefit from lower interest rates, it is important that borrowers establish good credit histories. The CRB plays a central role in informing banks about creditworthy clients.

"The Gambia is making important progress in its fight against poverty, particularly in the areas of education and some health indicators. Progress on reducing income poverty is also anticipated from the inclusiveness of the strong growth of agriculture in recent years.

"The government plans to build on this progress with the launching in the coming months of the Programme for Accelerated Growth and Employment (PAGE) 2012-15. The mission commends the authorities for the serious effort in the preparation of the PAGE.

"However, given the government’s heavy debt burden and falling tax revenues, financing the PAGE faces some major challenges. To ensure that scarce resources are used effectively, the mission encourages the government to continue its ongoing progress on public financial management and transparency, especially in the budget process.

"Although there is some scope for additional borrowing on concessional terms, greater assistance from donor grants would be most welcomed. Private sector participation is also an important option—particularly in the energy sector—but it is critical that proper institutional arrangements are in place.

"In the energy sector, despite some steps underway, NAWEC lacks financial stability and regulatory issues, such as cost recovery and automatic cost-of-fuel adjustments in electricity tariffs, need to be resolved. In this regard, the mission urges the government to work together with the World Bank to put in place an effective energy strategy as soon as possible.

"The mission commends the authorities for preparing a budget policy paper for the 2012 budget and the submission of the audited 2007 government accounts to the National Assembly on October 31, 2011.

"To reduce the current backlog, it is expected that the audited accounts for subsequent years will be prepared and submitted to the National Assembly at an accelerated pace.

"In 2012, the priority areas of public financial management include improving transparency in the budget process, strengthening budget execution, and building capacity in internal and external audit functions.

"The mission wishes to express its gratitude to the Gambian authorities for their hospitality and the candid and constructive spirit in which the discussions were held. The Executive Board of the IMF is expected to discuss the report of the mission in January 2012."

The mission met with Minister of Finance and Economic Affairs Mambury Njie, Governor of the Central Bank of The Gambia (CBG) Amadou Colley and other senior officials of the government and the CBG.

It also met representatives of the National Assembly, political parties, the business community, civil society, labor unions, students, and The Gambia's development partners.

Back top of page