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Minister Bellingham’s speech during his visit to Ghana

February 21, 2011 By
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When the UK Minister for Africa visited Ghana on February 18th, I was privileged to be a part of the small number of people invited to listen to him speak at the Institute of Economic Affairs, IEA in Accra. Below is a transcript of his speech, take you time, read it and let me know what you think.

Introduction

The relationship between the United Kingdom and Ghana is strong and vibrant, much like the wonderful city of Accra. It is rooted in our long-standing economic, political and cultural connections, our shared values and the deep links between our people. With a half a million strong British-Ghanaian Diaspora community in the UK that is dynamic and prosperous and an ever-growing continent of British businesspeople basing themselves in Ghana, the future of this relationship is being built on firm foundations.

These links provide a solid basis for us to pursue our shared commitments to the eradication of poverty to democracy, good governance and the rule of law, to countering transnational threats such as climate change and narcotics trafficking and to promoting the continued growth of prosperous and equitable trade relations. After all, this is the challenge of the present: to build the future.  And it is precisely because your foundations are so strong that I see Ghana providing leadership for West Africa, the wider continent and indeed the world

Prosperity

A commitment to shared prosperity has always been at the centre of the UK’s partnership with Ghana. Our development programmes in Ghana stretch back fifty years and our Department for International Development (DFID) continues to assist some of the most vulnerable Ghanaians. These programmes are an important part of our countries’ relationship and are worth celebrating, but on this my focus is towards our shared goals for business and trade.

Recent commercial activity show successful UK-Ghana partnerships have already been. British companies have been key players in the now producing oil sector as well as in other extractive industries; in developing telecommunications networks across the country; in the financial services sector; in the cocoa industry and in other areas of agribusiness. During Vice-President Mahama’s successful visit to the UK last year, he led the UK-Ghana Investment Forum 2010 – the opening dinner of which I was delighted to attend. The forum showcased the range of sectors which already enjoy Ghanaian/UK collaboration, as well as future opportunities for British business.

Ghana is one of the UL’s 14 priority markets in Africa and it is easy to see why: the country has already reached middle income status, has weathered the global economic downturn far better than Europe and the US, and has forecast GDP growth rate 7%; 15% if we include oil revenues. These are growth rates that we in the UK look upon with rather envious eyes.

With such a positive story to tell, Ghana is an attractive prospect for British businesses – not only as a place to invest directly but also as an increasingly important market for goods and services.

In part this is because, British businesses recognise that Ghana is a stable place to do business. While there are still concerns about the regulatory framework and the risks to both reputations and profits form corruption, most UL companies share our views that Ghana’s environment is the most investor-friendly it has ever been. The Ghanaian government is focussed on further improving the ease with which companies can do business here and continues to take a robust approach to tackling corruption. The World Bank’s Doing Business 2011 report has Ghana jumping ten places in a year – from 77 to 67 in global rankings of ease to do business. These impressive efforts are important to British businesses an can serve as a model for other growing West African economies, who want to attract trade and investment.

It is widely acknowledged that to build sustainable economic growth across the region, there needs to be greater intra country trade within Africa. Trade between countries currently accounts for less than 10% of Africa’s total trade- in some countries it is lower than 5% – compared to Europe where 62% of trade is within the European Union. This is something I know that Ghana and other African countries want to address and Britain is keen to support efforts to develop regional integration. So we are launching an African free Trade Initiative to work with international partners in delivering and integrated programme of technical assistance, investment and political support in support of the AU’s vision for regional integration.

Ghana as regional exemplar

It is not just economic achievements that set Ghana out as a model for the region. Ghana’s prosperity is founded upon good governance and rule of law and is rightly held up as a beacon of democracy in the region and across the continent – and it’s not just us saying it. President Obama’s first visit to sub-Saharan Africa was to Ghana for precisely this reason.

Improved governance and rule of law is the key to unlocking Africa’s potential. And we are committed to working with African countries seeking to turn that key. A good example is the work that UK officials have undertaken since 2006 alongside their Ghanaian counterparts as part of Operation WestBridge, a law enforcement programme which tackles drug trafficking into Ghana. Operation WestBridge has been so successful that is has been extended to Nigeria, resulting in combined seizure of over 600 kilograms of Cocaine, 250 kilograms of Heroin and close to 2000 kilograms of Cannabis. This is important news for West Africa where drug trafficking represents a major threat to the security and development of the region and it is important news for the UK too as these drugs frequently end up on our streets. I applaud the strong personal interest that President Mills has taken in the fight against drugs. Ghana’s determined approach to combat drug trafficking is another instance where you have set an example to countries around the world.

Now if Ghana is the beacon of democracy one, sadly does not have to look far to see there the shadows fall. The situation in Cote d’Ivoire makes it clear that the threat of violent, undemocratic action by those who refuse to recognise the will of their people remains as real as ever. Former President Gbagbo’s actions can be held up in stark relief to those of Ghana’s politicians. Your last election was one of the most closely contested I have heard of, coming down to a few thousand votes. Yet both sides were clear that there are no winners when leaders put their own interest ahead of those of the people.

The interventions by the West African regional community, ECOWAS, in Cote d’Ivoire has demonstrated to Africa and the world the region’s commitment to finding a solution to the challenge of undemocratic behaviour. And it is from this context that Ghanaians leadership on democracy, religious tolerance, human rights and the rule of law stands out. You can speak with a moral authority and experience that is impossible to ignore, or to discount as Western interference.

Ghana also provides important leader ship in the commonwealth – as Chair of the Commonwealth Ministerial Action Group, and with membership on the Eminent Persons Group, you have the opportunity to take this leadership forward. Elections in 211 and 2012 in Liberia, Sierra Leone, Benin and Mali afford other opportunities to do so. We will do all we can to support and encourage you further pursuing a leadership role.

Climate Change

And your voice has been influential on Climate Change too. You were once of the first African nations to sigh the Copenhagen Accord and your efforts to promote a serious collective African response to the threat of Climate Change have caught the world’s eye – as did our successful partnership in Copenhagen on the finance panel. Building up this momentum is vital. We are all too aware that climate change poses huge threats to Ghana and the whole of Africa. The effects vary across the continent; however they are increasingly being felt with rising sea-levels in Ada in the Greater Accra region and Keta in the Volta region, and droughts and changing weather patterns in many areas. So we need to up our game in building a credible and effective response to this threat. With 53 countries the chorus of African voices, when singing in unison, will resound around the world. As host to the next meeting, the focus will be on Africa and it provides you with an even grater opportunity to shape the debate. I hope that Ghana continues to play a prominent role among African nations on this issue.

Here too the Commonwealth can play it is part. We would like to see continued discussions of climate at the nest CHOGM, due to take place in November. As a member, Ghana has the opportunity to influence and set a strong example ahead of COP 17.

The UK is committed to its partnership with Ghana on this critical Climate Change agenda. Speaking in New York last September, British Foreign Secretary William Hague described climate change as ‘’perhaps the 21st Century biggest foreign policy challenge, along with such challenges as preventing the spread of nuclear weapons ’’. He argued that an effective response to climate change underpins our security and prosperous – as it does for every country in the world. As the world becomes increasingly networked, the impact of climate change in one country or region will affect the prosperity and security of those in others.

We believe the ultimate goal is the creation of a legally binding global agreement on climate change and we remain committed to seeking multilateral solutions. That is why the UK worked hard with international partners for the best possible agreement at the Cancun negotiations last December. After weeks of touch negotiations, and from an unpromising start, our Foreign Secretary was able to welcome the final agreement as an ‘’ excellent result‘’. Not only has it moved forward key issues such as deforestation, but it provided funding for developing countries as the greatest burden should not fall to those who have done the least to cause the problem and who are the least to deal with its consequences.

Following Cancun, the UN process is back on track with renewed purpose and there is much to be done as we work towards Durban. We look forward to working with you in the run to this just as we look forward to working with you across the board on our many areas of shared interest.

Conclusion

I want to finish by returning to consider the strength of our bilateral relationship and the opportunity that offers both our countries. There is so much that binds Ghana and the UK: our people-to-people links, our shared values of democracy and the rule of law, our aspirations for prosperity and security and our deep and genuine desire to tackle the world’s climate change dilemma. I look forward to seeing the outcomes from this genuine partnership, anchored in its firm foundations. President Mills, on his visit to the UK in May 2009, referred to the ‘’umbilical cord‘’ that ties two nations. It is testimony to the strength and maturity of our nations and our respective national pride that the transition from the colonial period to Ghana’s independence was smooth, and that our relationship has since evolved from that of mother and to one of mutual respect. There is no place for the UK to lecture Ghana about its policies, but to help identify where UK assistance can most usefully be provided, and where the UK and Ghana can work in harmony for mutual benefit. The democratic progress made by Ghana over the last 20years is a lesson for us all. There may be 79 different languages in Ghana, but you speak with one vice for democracy. And I believe there is much that the UK can learn from Ghana’s ability to unite different ethnic groups, migrants’ populations, traditional and modern leadership, honouring and respecting chieftaincy while promoting the rapid development of modern technology, seen with the almost saturating effect of mobile phones.

Ghana’s ability to build coalitions within society – chiefs, churches, politicians, businessmen and women – is indicative of the single-minded purpose shared by the nation. As the UK experience a rare period of coalition government, perhaps there is a specific lesson for us there.

CREDIT: photo of Hon Henry Bellingham was obtained from the http://ukinghana.fco.gov.uk website.
Filed Under: Africa Trade, African Development, African Nations, African People, Edward Amartey-Tagoe, Ghana, Latest, Out of Africa, West Africa Tagged With: , , ,

Centre For National Culture, Accra

February 15, 2011 By
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The Centre For National Culture in Accra, Ghana, is better known simply as “The Arts Centre”. It is situated right next to the Kwame Nkrumah Memorial Park, where the Kwame Nkrumah Museum is. There you will find what is virtually the tourist heaven of Ghana. My goodness, it has got everything from woven Kente cloth, wooden sculptures, earrings and other fashion accessories, the latest in African Attire fashion and arts and crafts from all over Ghana.

There is so much to see that you will literally hyperventilate when you get there. There is a never ending array of goods in numerous stalls that you may not even be able to shop, try outfits and haggle in one day. In fact I had to make 2 trips to the Art’s Centre before I was fully satisfied with what I wanted to buy.

And what can you get for your money? Let’s just say that the value you place on a prized item is what you pay for it. I am not a natural haggler, but I have my sister to thank for the bargains I made. And it is all about doing your research on the ground to know what the market price is. If something appears over priced, I can guarantee you, a stroll to another stall around the corner will reveal just how much an item’s price has been inflated. And the vendors are savvy street sellers, they will negotiate until you get tired, so be prepared for a challenge.

When I think about which items from the Art’s centre really caught my eye, I would have to say the woven pictures as shown in the photos.

There were some pictures of jazz bands, some of Adinkra symbols and some of mothers carrying babies on their backs, Baby Bjorn, step aside because nothing beats a simple cloth and baby tucked in close on your back.

Where is the Arts Centre located? As far as the address goes, I wouldn’t have a clue as most people in Accra will drive on a road and will not be able to tell you it’s name, except for where it is coming from, and where it is going. Never the less, my best attempt at giving directions is that the Arts Centre is located on the High Street. That is the road that takes you through James Town (which I should visit on me next trip) and past all the swanky banks. Once you see a significant land mark, the Kwame Nkrumah Mausoleum, directly opposite the white high court buildings, you are there!

Filed Under: Africa Trade, Africa Travel, African Culture, Emang, Ghana, Latest, Out of Africa Tagged With: , ,

Reinventing the wheel

October 7, 2010 By
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Some of my good friends happen to be Kenyan. Naturally being Zimbabwean I have been observing the events in Kenya economically, politically and otherwise with great interest. I am completely fascinated by this country which was embroiled in massive killings only a few years ago (2007). This resulted in a coalition government which is currently projecting some 7% economic growth rate this year. My Kenyan friends recently voted this August in a constitutional referendum. In truth I’ve been watching developments on the continent as whole with a keen interest in general.  If the truth be told one of my ambitions is to play some small role in assisting to rebrand my beloved Zimbabwe and in turn the continent. After many years in the diaspora I have started to embark on my return home scheduled later this year. As I prepare for my return to the homeland, I find myself heavily involved in discussing the intricacies of Africa. I’m constantly thinking, planning and looking forward to life on our continent with eagerness and a proper sense of realism.

However, I am somewhat saddened by the various elements that handicap our own development. Living in the diaspora I learnt to quickly adapt and how to ‘play the game’ to survive. I often wonder why we don’t do more of this similar behaviour. I have always wondered why we (African nations) continue to reinvent the wheel at times. We know how the game is played. For example to gain access to cheaper capital to fund our various projects (infrastructure, education and so forth), we know that the various financial institutions typically give a certain rating (e.g. AAB) to the relevant country in question. This same rating then contributes to the interest rate used when borrowing those funds from the World Bank et al. We know ‘the game’ and how it is played but I can’t see why we can’t borrow these so called funds as a ‘collective group’ of countries for example. I use this simple example to illustrate the bargaining power that we have and yet I wonder how often we utilise such methods. We may already be doing so but I am advocating that we use the strength we have as a group of nations more frequently and more wisely than we have in the past.

I read this yesterday : – ‘According to The Day After Tomorrow: A Handbook on the Future of Economic Policy in the Developing World, almost half of global growth is currently coming from developing countries. As a group, it is projected that their economic size will surpass that of their developed peers in 2015.’ If this is indeed true, then we have many opportunities in Africa – more than I ever imagined! It is often easy to forget that there are approximately 900 million people in Africa with more people under the age 30 than the other continents. All these people require food, shelter, clothing, education and so forth. Right there in that last sentence many opportunities exist for entrepreneurs willing to engage in business with a view of providing these products and services to them. Anyone of us could be that entrepreneur who provides the pens and pencils used in schools for example.

However I digress from my main point, which is reinventing the wheel. I also read somewhere that there was a proposal to build the world’s largest hydroelectric dam in Congo. The total cost of the dam would be USD$80 billion and would produce sufficient electricity for 500 million people. According to my figures mentioned earlier, that’s more than half the African population. I also know that erratic electricity supply is causing havoc for manufacturers and other businesses in Zimbabwe at the present moment. I often wonder how many other countries apart from Nigeria share the same challenges. You see, we have common challenges and I often wonder whether we in fact collaborate as much as we can in resolving them.

As mentioned earlier Kenya currently has a coalition government and interestingly enough so does Zimbabwe. We can all imagine the challenges of coalition governments in general as the various parties involved struggle to find common ground and work together for the good of the people now with one eye on the next election in the future. Either way, coalition governments are not an ideal situation however in this case, the people voted and this is the result of that voting process. Sharing information regarding the challenges and indeed the methods used in resolving issues within coalition governments would uplift communities and each other one would think. I could be naïve in my thinking here but surely Zimbabwe could learn a few things from Kenya’s coalition government and vice versa. There is something to be said about the manner is which Kenya overcame the events of 2007, followed by a sticky coalition government situation and now a constitutional referendum which interestingly enough voted in favour of a new constitution. Surely there are lessons for all of us to learn from this.

The mobile phone industry in Africa is growing at a phenomenal rate. 316 million mobile phone subscribers have signed up since 2000. There is further room to grow. Speaking on Zimbabwe’s mobile phone industry, Econet’s CEO Douglas Mboweni says ‘with a mobile penetration rate of 40%, there is still a significant demand for communication services in Zimbabwe’. The market is clearly not saturated yet. In Kenya M-pesa in took off partly because out the 10 million adults, only 4 million had banks accounts. M-pesa was introduced and according to one Kenyan friend, ‘M-pesa is now the most common method of making payments across the country’. Last month Safaricom Ltd reported that there was a 61% increase in July 2010 from a year earlier. M-pesa has now entered South Africa and I patiently watch their progress there. I repeat myself once again but surely there are lessons for all of us to learn from this.

I put my patriotic nature aside and look at Africa from a pragmatic perspective. I see so many opportunities all over the continent. This article doesn’t cover the many examples of businesses and such in Egypt, Libya, Zambia, Angola and the Chinese presence in Senegal for example. The point is, we can and should attempt to learn more from each other. I read some article about how the US government provides approximately USD$15 billion in subsidies for its farmers. This figure, according to the article, has steadily been rising year on year. These subsidies are designed in part to protect their own farmers and ultimately discourage and hinder African farmers from exporting their produce to the US. I wonder how much business African farmers lose because of subsidies like this worldwide. I personally know of a Zimbabwean farmer exporting chickens as far as Rwanda, Kenya and Tanzania. There is another farmer I heard about who is involved in growing vegetables. They grow them and ’can’ the produce before exporting the canned tins to South Africa and abroad. There are lessons to be gained from these illustrations – let us increase our own regional trade for example. Let us share ideas, concepts, challenges and indeed our victories with other African nations. Why reinvent the wheel each time? Why should the Zimbabwean tax department seek assistance from the Australian Tax Office when we can share information and solutions with our South African, Nigerian or Ghanaian counter parts? Call me naïve if you will but I believe in a United Africa. So often we share similar challenges. I only ask that we learn to lift our heads and look to our brothers and sisters across the border instead of our distant cousins across the pond. Africa Unite!

Filed Under: Africa Matters, Africa Trade, African Development, African Nations, African People, African Politics, Latest, Nigel Mugamu Tagged With: , , , , , , , ,

Millennium Development Goals or Aspirations

September 20, 2010 By
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Last week at the Department for International Development in London the Deputy Prime Minister of the United Kingdom Nick Clegg was joined by Henry Bellingham the Foreign Office Minister for Africa and Andrew Mitchell the International Development Secretary. They announced that the UK was going to strive to achieve the Millennium Development Goals and encourage other members of the G7 to follow suit. Watching the presentation got me thinking about the Millennium Development Goals and how they came about in the first place.

Were these laudable goals agreed by the heads of developing countries at one of their summits in consultation with local community organisations, taking into account the situation on the ground? Or was it another top down programme foisted on the developing world by  Western experts and development economists who’s experience and understanding of the poor in the world are based on Gap years,stints at the World Bank & IMF and most importantly time spent working for NGO’s ?

In September 2000 at the UN, the largest ever gathering of heads-of-state unanimously adopted the Millennium Declaration, committing to reach eight goals by 2015. Known as the MDGs these are the  measure by which  International development efforts are to be judged. It was estimated that at the time that in order to reach these goals the Developed World would have to dig into their pockets and provide another $50billion in aid commitments.

Have you noticed how most of these International programmes involve donor countries spending more and more money ?

There is nothing wrong with the goals per-se, how can anyone be against eradicating extreme poverty and hunger or for that matter promoting gender equality in the developing world. Africa still has some of the highest maternal death rates in the world, so any thing that helps reduce this can only be a good thing right?

So how is it that apart from China and India most other developing nations are no where close to achieving any of these goals? The UN press machine and the Overseas Development Institute have been pushing the story of how Ghana & Vietnam are doing well in their pursuit of these goals, however speaking to people on the ground in Ghana  their experience is slightly different from that of the Overseas Development Institute and the UN press machine.

Goal 1: Eradicate extreme poverty and hunger

Goal 8: Develop a Global Partnership for Development

from the UN website

When the UN and its host of International Development Agencies meet later today, they will announce that most of Sub-Saharan Africa is far off from achieving the goals, indeed some countries might have actually reversed  achievements they’ve made. The financial tsunami we have just experienced took care of that. The most likely call that will go out will be for an increase in Development Aid, my question to them is this; Haven’t we been here before?

In September 2005 the same group of people met in New York to discuss the MDG’s, and back then as it is now most Sub-Saharan African countries were still no where near achieving these goals even though Aid had increased from $53billion in 2000 to $73billion in 2004.

The trend is quite clear, the International Development community and their friends in the NGO world got to together to hash out an over ambitious plan which they knew they would most likely never be achieved. Every five years they meet to pat each other on the back and come out with the same press releases i.e we have seen some progress but we are still far off from achieving these goals hence we need more development aid in order to achieve them.

World leaders not wanting to appear uncaring agree to increase their pledges, the Aid community get more money for their projects and everyone goes away till the next meeting. The biggest losers from all of this is the poor in Africa who have no say in any of this, they just get told these are the goals you need to achieve and we will spend a couple of million from taxpayers in the West to see if we can achieve them.

Whilst these goals are undoubtedly well intentioned they are just not practical, different countries have different issues, and to expect more than 100 countries to achieve the same goals in a defined period seems rather simplistic.

Many African countries are averaging growth rates between 4-7%, Nigeria is expected to grow 10% in 2010. A Deputy Minister of Finance in Ghana mentioned to me that he wouldn’t be surprised by double digit growth in the Ghanaian economy next year. The point I’m trying to make is that rather than focus on some contrived universal goal, we should look at each country individually and consider holistic solutions that take into account each country’s strengths and weakness’s.

Looking at the ODI’s report some countries in Africa have made some progress in increasing the number of children in primary school, reducing maternal deaths as well reducing poverty, however because the MDG’s have absolute targets which fail to take account of where some countries are starting from the result that the media will focus on is this that we have failed to achieve the goals.

There will probably be report out today which will say more Aid will help in closing the poverty gap and increase the chances of achieving the MDG’s. As I have argued previously the data on Aid and its relation Economic Development is not as clear cut as is sometimes made out, whilst Aid will contribute to some growth and Economic Development, no amount of Aid will make Africa achieve the consistent growth that both India and China are experiencing.

In order to achieve consistent 7-8% growth a country has to be manufacturing and selling things to the rest of the world.Its as simple as that, you don’t need an economics degree from Harvard to work out that Trade is the only way out of poverty.

So as the world experts meet in the United Nations to  begin their high level talks my two pence to the motherland is this, GOOD GOVERNANCE & TRADE is the surest route out of poverty.

In conclusion I would like to propose to the UN that rather than MDG’s( Millennium Development Goals) we should  have MDA’s( Millennium Development Aspirations), followers of British politics will appreciate the difference.

Filed Under: Africa Matters, Africa Trade, African Development, African Nations, African Politics, Out of Africa, Tony Burkson Tagged With: , , , , ,

African Growth and Opportunity Act

July 28, 2010 By
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I wonder how many people on the continent of Africa know about the African Growth and Opportunity Act or AGOA? At the risk of being or even sounding patronising, I would guess not that many and that those that do, don’t exactly know how they can benefit from it.

This ACT was passed in 2000 and is reviewed annually and the idea behind it is to enable African countries to export their wares into the USA tariff free, they are further details about the ACT here

The Act has had some impact on trade between the USA and African countries and it was interesting to note that Paul Collier one of the leading experts on African economic growth acknowledging it as a model that has potential to bring about growth within Africa having had his doubts when it was first announced (source THE BOTTOM BILLION BY PAUL COLLIER April 2007 OXFORD PRESS).

A few questions

Have folk in African been able to take advantage of this Act and if so how?

Who in Africa is actually taking advantage of this ACT?

I haven’t done extensive research in this area and therefore my answers come from mere observations made in the course of my work work at Ethnic Supplies and certainly one of the industries that should benefit from this AGOA is the textile industry and on observation the industry has. But when you scratch on the surface of this benefit you will discover that at least in East Africa (certainly KENYA, UGANDA and RWANDA) the textile companies that have benefit are not necessary owned by indigenous Africans. You will find that there are owned by Asians!

You may wonder why this is such a bad thing after all these companies provide/create jobs for locals! Granted you would have a point and one such factory I visited in Rwanda at the back end of last year employed 4000 locals.

I am aware that some indigenous textile producers in Kenya were very unhappy about the fact that they cannot compete against the might of the Asian financial muscle. I interpreted this to mean that the smaller textile producers are not able to meet the supply standards required by the Act nor keep up with demand as they mainly one man band outfits!

Therefore whilst the Act is a good idea, it appears that they are no systems and process on the ground to ensure that it benefits the people who need it most and this would include capacity building of such enterprises.

Interestingly I recall hearing one of those Asian owned companies (based in Uganda) that signed up complaining that he had not been able to meet his commitment and at some point he had to import cotton from somewhere! I would like to think that this “somewhere” was not the USA!

So what can be done about all this?

You may be aware that the countries that benefit from AGOA are selected each year and meetings take place in that country to discuss the way ahead etc

2009 was Kenya’s turn and I was invited to take part in a televised discussion of Clinton’s visit to Kenya and I have posted it here for your information.

Filed Under: Africa Matters, Africa Trade, African Development, Ida Horner Tagged With: , , ,
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