We are now in Burkina Faso, the last stop on what has been a fascinating and somewhat challenging tour of West Africa. Here’s a beginner’s guide to one of the world’s poorest countries:
1. Located in the heart (and heat) of West Africa, between the Sahara desert and the forests of the south, Burkina Faso has one of the highest fertility rates in the world. The average Burkinabe woman has six children. As a consequence, the population has increased five-fold in the past half-century. At 15 million, however, it is still under-populated compared to Great Britain, which is of similar size but has four times more people. It’s still too crowded though for the 3.5 million Burkinabe who live and work in neighbouring Ivory Coast.
2. Known in colonial times as Upper Volta, Burkina Faso means ‘Land of the Honourable People.’ Burkinabes are known as among the most honest folk in Africa.
3. The country has arguably the world’s best place names. Its capital – one of the oldest cities on Earth – is Ouagadougou. Leafy Bobo-Dioulasso, from where I am writing this, is the second city. It also boasts the desert market town of Gorom-Gorom (so good they named it twice), Bouroum-Bouroum (ditto), Fada N’Gourma, Tin-Akof, Niangoloko and, er, Rambo.
4. Burkina has few natural resources. The French only colonised it because it was a bridge between their coastal territories of Benin and Ivory Coast and their desert holdings in modern-day Mali and Niger. It even stopped being a country for 15 years from 1932, when it was carved up between its more important neighbours. The French made good use of Upper Volta’s human resources, however, forcing hundreds of thousands to build railways, farm cocoa and fight in the First World War trenches.
5. The country is dominated by the Mossi ethnic group. A tribe of brilliant horsemen (which may account for the profusion of betting shops in Bobo), the Mossi repelled slave raiders and other rivals and remained intact for 400 years until their kingdom fell to the French. Captain Paul Voulet, who led the French expedition, was a real-life Kurtz figure, who stuck victims’ heads on poles, roasted children over fires, and strung up soldiers who displeased him at a height where their feet could be reached by hyenas’ hungry jaws. When his superiors tried to rein him in, he told his troops he was no longer French but a “black chief,” who would found his own empire. After he was killed, the French, embarrassed that their civilising mission in their colonies had gone awry, attributed Voulet’s activities to the maddening heat of Africa.
6. Burkina Faso is one of Africa’s least urbanised societies. Despite plagues of locusts, catastrophic droughts, desertification, and the fatal effects of US cotton subsidies (Burkina produces cotton at one-quarter the cost of American cotton, but subsidies mean US producers can undercut Burkinabe farmers), over three-quarters still live in the countryside. The French colonial administrator R Delavignette wrote in 1946 that, ‘We came from an industrialised Europe where factories are joyless affairs, and found people who worked to music. Communal labour had its drums and tom-toms, its orchestras to cheer the workers on.’ Drummers still accompany farmers at planting and harvesting times today.
7. Burkina hosts Africa’s most important film festival, the biennial Fespaco (the next one is in 2011). Cinema attendances are falling, however, because of the proliferation of pirated DVDs.
8. Burkina was home to the ill-fated revolutionary Thomas Sankara, who as president alienated the French by calling them neo-colonialists, told the country’s creditors he wouldn’t pay them back (‘you played the game, you lost,’ he explained), slated African leaders for their corruption, and practised what he preached by ditching the ministerial Mercedes for a Renault 4, taking out a $2,000 mortgage to buy a house, and cycling around Ouagadougou on a rusty old bicycle (is David Cameron a secret fan?). Cheques he wrote often bounced. Sankara was killed in 1987 by soldiers close to his friend Blaise Compaore, who many suspect ordered the assassination. Frequently described as Africa’s Che Guevara, Sankara, who unlike most African revolutionaries died before he could sully his reputation, remains a hero to young idealists from all over the continent.
9. Blaise Compaore is still the Presdient of Burkina Faso today. Something of an eminence grise, as well as being linked to Sankara’s death he was also implicated in civil wars in Liberia and Sierra Leone, and is a longstanding supporter of the vicious Liberian warlord Charles Taylor (currently on trial in The Hague for war crimes). On the other hand, Compaore has also helped broker peace, for now, in Guinea. In the 2005 election, judged ‘free and fair’ by the 1500 (count ‘em) international observers who were flown in to watch, he gained 80% of the vote.
10. Burkina’s main cities saw violent street protests in 2008, as food and fuel prices climbed beyond the reach of most urbanites. As Compaore has loosened his dictatorial grip on the country, protests of all kinds have increased. One year, the authorities in Ouagadougou tried to force motorcycle riders to wear helmets. Vigorous rioting forced them to back down.
March 14, 2010 at 1:19 pm | More on Africa, Economics and development | 2 Comments
“You wouldn’t understand this country if you stayed here for five years. I don’t understand it,” says Nestor Cummings-John, the head of the Sierra Leone Women’s Movement (“faute de mieux,” he replies when I ask why the group is run by a man).
I take his point. After six weeks in Guinea-Bissau (plus a lot of background research), I felt I had a fairly good grasp of how the society worked, why things are as they are, and what the prospects are going forward. But after six weeks in Sierra Leone, my mind is full of confusion, as chaotic as Freetown’s deranged street markets. I can only hope that a few weeks of quiet reflection somewhere sane like Burkina Faso will help me sort through the jumble of impressions, fears, questions and competing explanations that are clattering around my head.
One of the questions I’m grappling with is whether Sierra Leone is knitting itself together after Siaka Stevens’ ruinous dictatorship and the even more damaging civil war, or if in fact the country is in danger of slipping back into conflict.
Tony Blair, who visited Freetown last year, believes Sierra Leone is “thriving.” The Truth and Reconciliation Commission, on the other hand, which was set up to investigate the causes of the war, argues that the same levels of poverty, corruption and youth alienation pertain today as prevailed twenty years ago, before the war started. As Paul Collier showed in The Bottom Billion, moreover, most countries that go through one civil war endure another within a decade or two.
Blair’s view is buttressed by the fact that the country has been at peace for nine years, that it held uneventful elections in 2007 which were widely judged to be fair, and that dangerous neighbours like the Liberian thug Charles Taylor are off the scene. Exiles are returning, drawn by peace and the still-tantalising prospect of mineral riches. And many Sierra Leoneans have told me their compatriots have learned their lesson from the war and are extremely reluctant to go down that road again.
Not everyone is so sanguine, however. While the wealthy are generally quite optimistic about the future, the poor remain disgruntled, railing against the corruption of the rich and the ineffectiveness of government. “The poor don’t love their country,” says Joseph, a young Freetonian working with Amnesty International. Edward, an old man in a Freetown slum, says the poor have no reason to be patriotic. Most young people I’ve met have asked me to help them acquire visas for Britain.
Society, rent apart by the war, still seems deeply fractured. Just as the poor bemoan the greed of the rich, so the latter berate the lower classes for laziness, dishonesty and incompetence. In cities and villages, angry arguments in the street are nerve-gratingly regular. In an eastern village, a young teacher complains that “people don’t understand how to resolve disputes by dialogue: they always want to use violence.” Many of the secret societies that held rural communities together through slavery and colonialism, moreover, were destroyed by the civil war, in which rebel soldiers deliberately targeted the chiefs and elders who were the repositories of traditional knowledge.
The insurance and savings schemes of the dollar boys and market traders are all too rare examples of social capital being rebuilt (albeit by groups working illegally), as are village cleansing ceremonies for women abducted and raped in the war. Nestor’s Women’s Movement, on the other hand, used to have thousands of members but now has only ten. He can’t find a woman to take it over: “Joining this movement would require having ideals,” he explains plaintively, “but today people only think about their personal gain. They can’t see beyond themselves to issues.” Tales of efforts by jealous neighbours, friends or relatives to use witchcraft to prevent others attaining wealth, success, or happiness, meanwhile, are frighteningly common.
Nestor believes corruption and selfishness worked their way down to all levels of society from the highest echelons of Siaka Stevens’ government. They even infected the one significant social movement of the last thirty years – the Revolutionary United Front militia, which began as a justifiable response to inequality and venality but ended by causing terrible and wanton carnage.
There are a number of potential flashpoints that could precipitate a return to conflict. War in neighbouring Guinea could have serious repercussions for Sierra Leone, which is ill equipped to house a flood of refugees, or to root out combatants who base themselves in its border areas or target its diamond fields. The 2012 elections are an even greater threat: the SLPP ceded power peacefully in 2007, but may not have gone so quietly had its leader not been retiring. The APC may not yield so willingly in 2012, and there are rumours that it is preparing for possible defeat by training its own militias. And the pressures of Sierra Leone’s demography are unrelenting: huge numbers of young people, few jobs, little in the way of public services, and limited youth representation in power make for a potentially explosive cocktail, particularly in the chaotic, crowded capital.
In this judderingly unstable part of the world, other threats to stability may yet emerge – as one angry young dollar boy warned me with foreboding recently, “When there’s a pool of oil on the ground, you don’t know where the spark that sets fire to it will come from.”
March 8, 2010 at 4:36 pm | More on Africa, Conflict and security | Comment
When I arrived in Sierra Leone six weeks ago and encountered its friendly people, spectacular beaches, lively nightlife and mysterious traditions, I wondered why the country has so few tourists (in our six weeks we have met a total of three, with three or four other possible but unconfirmed sightings).
It didn’t take long to find out. A nation that should be eager to attract tourists seems to be making systematic efforts to keep them out. If you were trying to make it as difficult as possible for foreigners to visit your country, I could recommend the following measures, which all work brilliantly for Sierra Leone:
- Charge an exorbitant sum for visas (£50 for a month, compared to, say, £10 for three months in Turkey, a much more tourist-friendly destination)
- Make obtaining the visa more complicated than for any of your neighbours by forcing applicants to produce a letter of invitation from a Sierra Leone national
- Encourage customs officials in the airport to be as surly as possible, and fail to punish them for extracting bribes from new arrivals for performing the simplest of procedures
- Build your airport thirty miles away from the capital city, on the opposite side of a giant river mouth, forcing visitors to cross either by helicopter, which regularly crashes, or ferry, which often breaks down or sinks. Make sure, too, that the ferry departure times do not coincide with incoming flights, so that your visitors will have to wait for hours in the burning sun (you will of course already have ensured there is no shade at the dock)
- Allow dozens of hustlers to converge on new arrivals as they exit the airport, giving preference to pickpockets and con merchants
- Refuse to harness the torrential rain in the rainy season to provide water and electricity to visitors at any time of year. This will ensure they cannot take respite from the heat with the help of fans, cold drinks, air-conditioning or showers. It will also mean restaurants and food stores will be unable to refrigerate food, thereby increasing the risk that your visitor will fall sick
- In the event that he does fall sick, make sure you spend none of the billiions of pounds of aid you receive on building effective hospitals or recruiting competent doctors to treat him
- Make your public transport system as slow and uncomfortable as possible, by failing to maintain vehicles so that they break down often, waiting until they are full before departing hours behind schedule, and packing two people into seats designed for one
- Enhance the effect of the above by allowing roads paid for by foreign donors to deteriorate and then failing to fill in the hundreds of resultant potholes
- Should a tourist somehow manage to shrug off these obstacles and apply for a visa extension (you have no psychiatric hospitals to house him, of course), redouble your efforts to force him out. To do this, hire the least friendly, most corrupt people to work in your immigration department. Extort money from your visitor for a visa extension that is officially free, then smile smugly at his distress
- As a final punishment for having the cheek to visit your country despite all your efforts to stop him, charge the departing, browbeaten tourist a £50 airport tax
NB: For foreign investors, multiply your efforts tenfold.
March 1, 2010 at 8:26 pm | More on Africa, Economics and development | 6 Comments
“It’s not diamonds that are the problem,” says Ali, a Lebanese diamond dealer in eastern Sierra Leone. “Diamonds are just stones. It’s people that are the problem.”
Sierra Leone has some of the highest quality diamonds in the world. Like a lottery winner who wastes his fortune and sinks into misery, however, the country has been unable to cope with its windfall. “Blood diamonds” have been blamed for causing its horrific civil war, which saw rebel militias, Liberian thugs, mercenaries, Sierra Leone’s army, and UN and Nigerian “peacekeepers” killing and maiming in a desperate struggle to gain control of the gem trade.
Since the war finished in 2002, Sierra Leone has languished among the world’s poorest countries, with nothing to show for its rich treasure trove of minerals. Economists see it as a classic example of the resource curse, which plagues many poor nations endowed with valuable natural commodities: mineral wealth allows governments to neglect the rest of the economy, enrich themselves, and ignore those outside their circles, forcing the excluded to resort to violence to obtain a share of the loot.
But the failure of resource-rich nations is not inevitable. Botswana has thrived on the back of its diamond mines. South Africa, brimming with gold and diamonds, is Africa’s largest economy. Australia, another diamond producer, doesn’t do too badly.
Earlier this week we spent the day at a diamond mine near Kenema. Johnny, a Sierra Leonean who has spent most of his life in England, has come back with his wife Suzy to dig for diamonds. Using borrowed money, they have leased an acre of land deep in the jungle and hired fifty men from surrounding villages to dig a forty-foot-deep pit and sift through the mud and gravel it throws up.
It is easy to see the allure. When we arrive, Johnny shows me yesterday’s haul of eight small stones. The first looks like an undistinguished lump of glass, but the second, flawless, looks like a diamond and, although rough (it will be cut in India or Antwerp), its different facets glitter as I turn it around in the sun. It is worth about £1,000. On the neighbouring plot last year, a Lebanese found a thirty-carat diamond worth £4 million. From one moment to the next, Johnny could get rich.
Or die trying. Another nearby plot was mined for two years by some Americans. They didn’t find a single gem. Prices fell by 80% in the recession, prompting many miners and dealers to switch to gold, which provides a steadier, less risky income. Ali’s business partner almost bankrupted him by giving him a fake cheque for £100,000-worth of diamonds. “We say the profit from diamonds reaches from your toes to your knees, but the losses reach up to your throat,” he says, making a strangling gesture. He is currently pursuing the man through Interpol.
Nearly everything at Johnny’s mine is done by hand. The only sound other than the chink of pickaxes on rock is the drone of the baling machine, which pumps water from the bottom of the pit and spits it out in the washing area, where four muscly young men, bent at the waist, shake mud from large flat sieves and peer intently at the residue, searching among the pebbles and gravel for that elusive glint.
It is sweltering, backbreaking work, but the miners are well remunerated by local standards and are promised significant bonuses if they find something big. Everything is above board: Johnny and Suzy acquired a licence to mine from the government, and every diamond they find is certified, packaged and sealed with a wax stamp under the UN-approved Kimberley Certification Scheme before being shipped to Europe.
The Kimberley Process was initiated in the wake of Sierra Leone’s civil war. It aims to show that a diamond has not come from a conflict zone. Sierra Leone is currently at peace and legal diamond exports have increased since the scheme began. It was not the gems themselves that caused the war, however, but the venality surrounding them, and Kimberley does nothing to tackle corruption.
To acquire a mining licence, you must pay a £70 bribe. If you find a large stone, locals advise you to take it away from your mine immediately, before government helicopters arrive to seize it. Although the diamonds are conflict-free today, therefore, the Kimberley Process will not stop them sparking a new war tomorrow.
On our day at the mine, we don’t bring Johnny and Suzy, who are as superstitious as any gambler, much luck. The washers find four small one-carat stones and a couple of tiny grey specks that can be used industrially. The most valuable is worth about £500. It would take the washers nearly a year to earn that amount, so it is not surprising at the end of the afternoon to hear one of them grumbling that what he has just found in the sieve could be worth trillions of leones (he earns 10,000 a day, about £1.70). The miners may be well paid by Sierra Leonean standards, but they are very cheap labour for their employers. Worried that the washer is planning theft, Johnny relieves him of his duties and sends him to dig in the pit.
February 20, 2010 at 10:42 am | More on Africa, Conflict and security, Economics and development | 1 Comment
The leone, Sierra Leone’s currency, is not highly prized abroad. Nor is it especially strong compared to more established currencies: in 1978 when it broke from its sterling peg, the leone was worth 50p; buying 50p today would set you back 3,000 leones.
Sierra Leoneans with cash, therefore, along with importers of goods and those travelling overseas, are eager to get their hands on dollars, pounds or euros. Foreign diamond dealers, the legions of UN and NGO workers, local people who receive remittances from abroad, and the country’s dribble of masochistic travellers need leones in cash because there are no ATMs and nobody accepts credit cards.
If you don’t mind the 250-leone to the dollar spread, you can change money at foreign exchange bureaus or banks. But whereas the latter buy dollars for 3850 leones and sell them for 4100, the spread with Freetown’s Dollar Boys is a much more generous 4000-4050.
You can’t move more than a few yards in downtown Freetown without hearing the words, “Hello sir, change?” as a Dollar Boy accosts you, brandishing a large wad of leones or dollars. Dollar Boys are illegal, but their clients include government officials and ministers, big businesses and even banks in need of a liquidity top-up. The governor of the Central Bank sends someone onto the streets every day to find out how much his currency is worth. When I mention to Ahmed, a Dollar Boy of my acquaintance, that I’ve been to the Ministry of Foreign Affairs, he tells me he knows the building well as he provides a delivery service to ministry officials. “Even if they wanted to, the police couldn’t stop us,” he says. “We have too many customers.”
Ahmed makes around 20,000 leones (£3.30) a day – a decent sum by local standards. On his best day ever, someone (probably a diamond dealer but he doesn’t ask questions) changed $15,000 into leones – lacking that much cash himself, he had to bring in other Dollar Boys to make up the shortfall. He delivered the money in a huge box that he carried on his head through the streets of Freetown.
Although illegal, the Dollar Boys are well organised. Each one has his own patch, or “Base” – Ahmed loiters outside a bank – and each area has its own “committee,” with one central committee overseeing all the others.
The committees, which were set up on police advice after a Dollar Boy was murdered by Nigerians a few years ago, protect their members against violence and fraud (according to Ahmed, most of those who try to exchange counterfeit money are women). They also run an insurance pool, into which all members make regular payments so that if one is cheated for a large sum or suffers a family disaster, he has a cushion against bankruptcy.
The committees have two other important roles. The first is to protect the industry’s image, by investigating customer complaints, punishing bad behaviour and weeding out bad apples. The second is to vet new entrants to the market. As in the formal sector in Sierra Leone, you can only become a Dollar Boy if you have the right connections. Incumbents collude to keep out potential competitors (too many Dollar Boys, of course, would reduce each individual’s profits). Unwanted newbies – and Ahmed reports that competition to enter the fray is fierce – are told to keep away. If they refuse, the committees take them to the police and report them for acting illegally (yes, really). The police respect the committees – many of them use Dollar Boys’ services themselves – so they are usually sympathetic.
February 15, 2010 at 12:33 pm | More on Africa, Economics and development | 2 Comments
This morning, presumably because of a burst pipe, a trickle of water was bubbling up through a hole in the surface of a busy Freetown street. Next to the hole, a man in rags was on his hands and knees, lapping at the water like a dog.
February 8, 2010 at 5:19 pm | More on Africa, Economics and development | Comments Off
Mobile phones are spreading through Sierra Leone like a cholera epidemic. Everyone either has one or aspires to one. Phone theft is common (my own lasted a week). People will sacrifice meals or school fees to buy credits (everyone is on pay-as-you-go, and stalls selling top-up scratch cards are ubiquitous, as are recharging shops, since few have electricity at home).
There is keen competition among the major mobile networks – Zain, Africell and Comium adverts adorn billboards, bars and houses, whose owners charge a monthly rent for you to daub your logo over their walls. They sponsor pop concerts, sports events and even Freetown’s venerable cotton tree, under which the first freed slaves congregated to plan their new lives.
As in Europe, the operators do not shirk from sharp practice. Calls to someone else on your network are cheap, but if you call a Zain phone from an Africell sim your costs soar. To combat this, Sierra Leoneans buy a sim card for each network and give out three numbers to contacts – a sim costs a dollar, and phones are sold unlocked. Some have handsets that can carry two cards at once, and you press a button to choose which to use for a particular call. Others have three phones with a different sim in each. The less affluent have to open up their phone to change the card each time they call another network (this of course means that you often have to dial three different numbers before you can get through to someone).
The mobile exerts a dictatorial hold on social intercourse. Nothing is more important than an incoming call. Businesspeople interrupt meetings to take calls from friends, family and colleagues; the judge in a court case we observed last week kept halting proceedings whenever his phone rang; a beer with a Sierra Leonean friend is a series of stops and starts as he or she fields calls or replies to texts.
Phones reflect social status too. The powerful screen contacts by giving their regular number only to a select few, with a number they rarely answer used to fob off unwanted hangers-on. Those lacking funds will “flash” wealthier peers, dialling and hanging up before the latter answers in the expectation that he will return (and pay for) the call.
The next big battle in the mobile sphere will be over mobile payments. These are a new thing in Sierra Leone, but Africa is the world leader in this fledgling industry, with Kenya’s M-PESA already boasting 8.5 million subscribers.
Mobile payments are Africa’s version of online transactions. Few people on the continent have bank accounts, let alone regular and secure internet access, but many have phones, and cash. Until recently, if you wanted to get money to someone you couldn’t hand it to in person (and as well as buying and selling goods, Africans with jobs send money to relatives all the time), you either had to send it with a friend (not always secure) or use a professional middleman like Western Union or a bank (expensive and often absent outside the main cities). Mobile payments are both secure and cheap, and they do not rely on the availability of banks.
To make one, you take cash into a payment outlet – the latter can be anywhere that holds cash, from banks to shops to bars to hotels. You then text your PIN number and transaction details to the payment company, which sends a message to the recipient. The recipient can then collect the cash from his own nearest outlet. The outlet owner and the payment company take a commission.
Mohammed, an illegal money changer on Siaka Stevens Street in Freetown, used to get money to his grandmother in the provinces by either taking it himself, which meant transport costs and taking valuable time off work, or sending it with friends, who sometimes “lost” the money in transit. He now uses mobile payments instead, and says it’s a much safer way of ensuring his grandmother “eats” the money.
At present, only transactions within the country are possible, but with Sierra Leoneans receiving $150 million a year in remittances from abroad (and that is just those that are recorded), it is not surprising that a couple of entrepreneurs I’ve met are staking out the territory for cross-border payments.
February 8, 2010 at 11:41 am | More on Africa, Economics and development | 2 Comments
Had a surprisingly interesting tour of Freetown’s port yesterday. It’s the world’s third largest natural harbour.
Seventy years ago, the ship carrying my grandfather to the Far East during the war anchored briefly off Freetown. He remembered the oppressive heat and humidity, and the hawkers who rowed out to the ship in dugout canoes to sell their wares to British soldiers (plus ça change). The soldiers would lower buckets down to the canoes and haul up fresh fruit and snacks. For entertainment, some would drop coins into the sea, which intrepid young boys would dive down to retrieve from the seabed.
The port is a pretty modern affair these days. A couple of hours there gives you some insight into the workings of the country. A huge Norwegian vessel was unloading limestone to make cement (the post-war rebuilding of Freetown continues); another ship was being emptied of flour; dockers employed by the day were asleep in the shade of Maersk containers. Rice, bizarrely in such a hot and wet country, is the main import commodity, followed by wheat and iron rods for construction. Iron ore (processed elsewhere – Sierra Leone lacks the industrial capacity to process anything), timber, bauxite and rutile are the main exports (diamonds and gold are exported by other means). The World Food Programme has its own depot there, half-full of sacks of corn and flour.
We were shown round by a security guard, Alex, who has worked at the port for twenty years, including during the war when RUF rebels took it over and looted all the containers. His main duties include checking departing ships for drugs and stowaways. He says about half of the ships bound for Europe contain four or five stowaways. They row in in the dead of night, climb into the rudder hole, and sit tight – for weeks.
Sitting forlornly at the far end of the dock is a medium-sized Chinese fishing vessel. On it are a couple of Chinese men and a Sierra Leonean soldier. The boat was caught and impounded last autumn for fishing in Sierra Leone’s waters without a license (a common problem in West Africa). Seven Chinese fishermen have languished in a Freetown prison ever since – those who remain on board take them food every day but are not allowed to leave the country. To obtain his and the boat’s liberty, each prisoner must pay a $25,000 fine, but the shipping agent has failed to cough up. The vessel, guarded round the clock, is quietly rusting.
February 5, 2010 at 1:09 pm | More on Africa, Economics and development | Comments Off
I’ve been in Freetown for a couple of weeks now and am starting to get my head around the place. Sierra Leone has only recently climbed off the foot of the UN Human Development Index, but signs of poverty, which people in the West – where its most abject form is mostly confined to society’s margins – can go long periods without glimpsing, are everywhere.
Among the most arresting are the crowds gazing at DVDs playing in shops; the emptiness of markets after festivals; the accused dressing up for court in clean T-shirt and flip flops; young African girls on the beach with old white men; the hordes of disabled people – not just amputees from the war but also victims of polio, leprosy and unhealed fractures; beggars of all ages on every street corner; the ubiquity of slums, which as well as having whole districts to themselves also fill in the gaps in more affluent areas; billboards telling people to beware of counterfeit medicines; people collecting used plastic water bottles; the popularity of lottery outlets; car engines being switched off going downhill; children outside a bar at night using the electric light from inside to see their homework; stalls selling individual cigarrettes, pills and teabags; incessant and insistent requests for money or help with getting to the UK, even by people who work; the huge number of working children; and, of course, the proliferation of NGOs.
And finally an audible indicator of poverty, in the shape of a complaint made to me last weekend by an old man in a slum: “We should be shitting four or five times a week,” he said, “but people here only shit twice a week.”
February 5, 2010 at 12:42 pm | More on Africa, Economics and development | Comments Off
Of course, traditional banks like Ecobank look down on microfinance as a small-fry, over-risky industry. In Freetown I met SB, who heads a not-for-profit microfinance institution (MFI).
Set up in 2002 by a large American NGO but now self-sustaining, it has 20,000 members in four Sierra Leonean cities. It lends sums of between $120 and $2000 – in a country where most people live on a dollar a day, this means the loans are too large for the poorest people to access (SB says small loans are too costly to administrate).
Loans are for “income-generating activities” only. That is, not for weddings, funerals, medical bills or luxuries, for example, although SB is receptive to my argument that the first three of these can indirectly lead to improved income-generating capacity by relieving stress and strenghtening health (he also admits that some loans probably end up being spent on consumption rather than investment).
Most of the loans are repaid over 6-10 months, with repayments made weekly. They do not come cheap. The monthly interest rate is 3% – with inflation at around 11% this works out at an annual rate of 25%. And to this must be added the cost of travelling to the MFI’s office to make repayments (my medicine seller friend Musa said he gave up his membership because having to pay every week was too tough – his business is collapsing, and he asked me to fund him last week instead). Clients put up with these rates because they are poor, and cannot access cheaper loans because they lack collateral and credit ratings – SB’s MFI relies on word of mouth references, visits to inspect businesses, and guarantors.
Eighty per cent of clients are self-employed businesspeople, who borrow to buy palm oil for cooking businesses, refrigerators for storage, baskets and trays for hawking, and stock. The other twenty per cent are salaried but moonlighting. Eighty per cent of clients are women because, as SB says, men want to shoot for the big pot so they look down on small loans. Women are also much better payers.
The recession has hit the MFI’s clients hard. Remittances and investment from abroad have slumped, and the increased costs of food and fuel have hit customers. Many small enterprises, says SB, have gone to the wall. The normal default rate on loans is 3-4%, but in 2009 11% of money loaned was not repaid. As SB put it, “You might want to pay back a loan but if you have the choice of maintaining your credit rating or feeding your family, you don’t worry about not being able to borrow again in the future.”
If clients do default, the MFIs have limited options for chasing their losses. SB threatens to take bad debtors to the police but never carries it through because he knows it won’t help him recover the money. He worries that “clients talk to each other,” and come to see not-for-profit MFIs as a soft touch. Readers of Hernando de Soto will not be surprised to hear, moreover, that in many cases SB can’t even find his errant clients – some don’t have identity cards, and changes of address are frequent and go undetected by officialdom.
SB’s profits (which are all reinvested) have halved in the past year. Other MFIs have seen similar or worse slumps – in Morocco, once the poster child of African microfinance, the government has had to step in to help as several MFIs went bankrupt after defaults soared to 30%.
Because of the recession, many MFI clients have resorted to “multiple borrowing.” They join several institutions at once, borrow money from all of them, and often fail to repay. The problem is so serious that SB’s MFI has stopped taking new members until it figures out a way to stop the multiple borrowers. Such is people’s desperation, he says, that “if we opened up our membership now, we’d have 200 applicants queuing outside our office every day.”
February 4, 2010 at 11:15 am | More on Africa, Economics and development | Comments Off
Last week I met someone high up in the Sierra Leone branch of Ecobank. He proudly told me the history of his bank.
In the 1980s, because of widespread instability and the collapse of most African economies, Western banks like Barclays and Citibank pulled out of the continent. West Africa was left bankless.
Seeing this, West Africa’s chambers of commerce got together and decided that instead of allowing the Westerners’ withdrawal to cause further damage to African businesses, they would set up a bank of their own. The chambers of commerce didn’t have any money, however, so ECOWAS (the Economic Community of West African States) stumped up the initial capital. The chambers of commerce didn’t have banking skills either, so they talked to Citibank in New York and drew up a contract whereby Citi would set up the new bank, run it for its first four years, and train Africans to take it over after they left.
Lome, the capital of Togo, was chosen as Ecobank’s headquarters, as Togo was the only stable West African state at the time (it was ruled by a dictator). After four years, and having made good money out of the deal, Citibank handed the new entity over to Africans. Ecobank now has branches in thirty African countries, Paris and Dubai, and is planning to open up in London and New York. And it’s still run entirely by Africans.
February 4, 2010 at 10:46 am | More on Africa, Economics and development | Comments Off
“The nature of the ties linking the African with the European has not really changed since the first Portuguese ships went sailing down the west coast of the continent: the sophisticated magic of the white man remains irresistibly alluring to the black.” (Shiva Naipaul)
In all the debates about aid, its visual impact is rarely remarked upon. In rural areas, aid probably looks like a good thing. When you see that a donor has dug a well for your village, you may feel grateful to and enthusiastic about the donor (that is, if you don’t feel embarrassed that your community has failed to dig its own well – a fact rammed home in nearly every village in Guinea-Bissau by a billboard placed next to each well proclaiming that it was a gift of the Kuwaiti, Spanish, Portuguese or American people).
But in cities, to which young Africans are migrating in droves, the visual effect is more ambiguous. When the urban African looks at aid, he sees aid workers and missionaries driving around in brand new Toyota Land Cruisers or Hiluxes. He sees them staring at laptops or chatting on snazzy mobile phones. He sees them dining in expensive restaurants or drinking in smart cafes. And he sees their glittering air-conditioned offices and villas, with iron gates and security guards.
In countries like Senegal, where there are tourists and Western businessmen, aid workers do not stand out. But in poor, remote, unvisited Guinea-Bissau they play an important part in shaping perceptions of the developed world (Guinea-Bissau has no cinemas, precious few internet cafes or televisions, and no press to speak of). And, as they have done for centuries, Africans see all this opulence and want a part of it. Guinean politicians, grown rich on drug money, purchase Land Cruisers and build gated villas. Ordinary citizens spend more than they can afford on mobile phones. And young Guineans, who until recently have not joined the West African exodus to Europe, have begun to talk about taking the boat to Spain – a journey which at least one in six of the many Senegalese who attempt it does not survive.
Of course, foreign aid workers are not the only cause of this new yearning, but it is likely they play some role. Many young Guineans I spoke to, who do not want to risk the trip to Spain, are desperate instead to work for foreign NGOs or the UN. It could be argued that giving young Africans something to aspire to will hasten progress and encourage hard work. Maybe so, but is owning a mobile really progress when you can’t afford your daughter’s $10-a-month school fees (as one mobile-owning mother in Bissau complained to me recently)? And in a country like Guinea-Bissau where aspiration is outpacing people’s capabilities and even well-intentioned governments are struggling to manage expectations, are ostentatious displays of affluence the best way of promoting peaceful development rather than the violent upheavals Nigeria, Guinea-Conakry and others are beginning to experience?
January 13, 2010 at 11:31 am | More on Africa, Economics and development | Comments Off
We achieved the record for a ’sept places’ (seven-seater) the other day. This is considered the most luxurious form of transport in this part of West Africa. It consists of a Peugeot or Renault estate car slightly modified with an extra row of seats where the boot should be. It is designed to seat seven plus the driver.
If you are seated in the front or middle rows, it is fairly comfortable, provided of course that you don’t object to clouds of dust billowing in through the uncloseable windows, chickens pecking around your feet, or spray from the driver’s spittle occasionally flying in your face.
If you are seated in the back, however, it is less luxurious. You then have to choose either to bend your legs double in front of you so that they are folded tight against your chest (and these cars never stop during the journey, so your knees may be folded for seven hours straight, as mine were on our first sept places journey), or to put your legs on the floor and instead have your head rammed up hard against the metal ceiling. Shifting from one buttock to the other, moreover, to avoid contracting haemmorhoids from the rock-hard seats, is impossible – there is no room.
The middle row is only comfortable, of course, if the driver sticks to the 7-person limit. Often, however, he cannot resist the temptation to fit a few more in. Sometimes there are four people in a row designed to squeeze in three, turning the sept places into a neuf places. This is uncomfortable, but not the worst of all possible worlds.
The other day our driver allowed no less than 16 passengers (plus 3 chickens) into one of these cars. There were people standing up! They were leaning from the rear row over the middle row, where Ebru and I were seated with three others and the chickens. Astonishingly, nobody complained when we stopped to let in more passengers – when there are fourteen of you in a car designed for seven, after all, a couple more bodies doesn’t make that much difference.
The driver was not satisfied with our discomfort. He decided to make the journey even more challenging by giving us a demonstration of his driving skills. He seemed to have only recently passed (or bribed his way through) his driving test, for he looked extremely nervous. Sweat poured down his long hooked nose from under his white Muslim cap. He gripped the wheel tightly, and hunched over it to be closer to the road surface. Then, every time he reached down to change gear, he lost control and the car veered into the middle of the road. This behaviour provoked some complaints from the passengers; we were lucky the road was virtually deserted, so that when he regained control of the wheel we were still intact.
Near the end of the journey, a rotund, stern-looking woman passenger asks him to stop to let her out. “Where?” he asked. “At the mango tree.” The road is lined on both sides, as far as the eye can see, with mango trees. “Which one?” asks the hapless driver, gripping the wheel and staring intently ahead. “That one there, straight ahead,” the woman replies, tutting at the driver’s stupidity. He keeps driving, bemused, sweat pouring down his black robe, until she shouts, “This one! Stop!” We screech to a halt, and are down to a more comfortable 15 again…
January 10, 2010 at 11:36 am | More on Africa, Off topic | 3 Comments
And so we move on from Guinea-Bissau. The journey to Ziguinchor in the Casamance region of Senegal passed without incident, although reports of the road from here to Gambia are less positive, with the separatist rebellion hotting up in recent months. Have decided to hole up here for a while to write – although Ziguinchor is surrounded by trouble, the town itself is well protected by army roadblocks and appears peaceful.
It was strange and slightly sad to leave Guinea-Bissau, a difficult, testing little country that somehow we’d grown to like. You can learn a lot about a place by leaving it. Although itself one of the world’s poorest nations, Senegal is affluent compared to Guinea-Bissau. It has buildings of two storeys. Some even have three, four floors! Its markets have piles of food rather than just scraps. There are factories, cash machines, bookshops! People in boats are made to wear life jackets. There are tourists, and the incessant hassle from hustlers that comes with them. Guinea-Bissau has none of these things.
Most amazingly of all, Senegal has electricity. You press a switch and a light comes on! Wonder of wonders! Fans turn instead of lying still. There are streetlights, so you don’t need a torch to pick your way through the potholes at night. Food is stored in refrigerators. Guinea-Bissau, whose lights went out in 2003, has none of these things.
But I’d take Guinea-Bissau over Senegal any day. The people are friendly but not overfriendly. Foreigners are left in peace. There is solidarity among Guineans, too – despite its poverty, there are far fewer beggars there than in Senegal, and far fewer people yearn to make the dangerous trip to Europe. Guineans who are in trouble can turn to family and friends for food and shelter, and they are ridiculously generous even to wealthy strangers like us. And despite its governments’ venality, the country is at peace, and its people have hope for the future.
I myself am less optimistic than many Guineans. The drug trade (of which more later), an over-reliance on cash crops, an over-hasty rush to the cities, and the clash of generations are likely to put a brake on the country’s development, while it may not always remain unaffected by the instability of the region as a whole. On the next stage of my journey, I will find out how it compares with Sierra Leone, and then Burkina Faso. It should be an interesting ride.
January 7, 2010 at 4:58 pm | More on Africa, Economics and development | 3 Comments
The next stage of our journey presents a dilemma. We have to get from Guinea-Bissau, where we are now, to Sierra Leone.
The overland route would be by far the most attractive option, but the violence in Guinea-Conakry, which lies between our starting point and our destination, rules it out. There is a very long overland route which bypasses Guinea, but which takes you through Liberia and Ivory Coast which, like Guinea-Conakry, are both on the UK Foreign Office’s blacklist of places to avoid (being on this list invalidates travel insurance, so if you fall ill or get shot or blown up, you will be skint as well as dead). There are no flights from Guinea-Bissau, so that leaves flying from Gambia or Dakar, Senegal as the only options (and you take your chances with West African airlines).
To get to Gambia or Dakar, however, is not easy. You either have to go by land through the Basse Casamance region of Senegal, where there has been a low-level but dangerous rebellion for years and where a 9-year-old girl was murdered by bandits a week ago and where gunfights between rebels and soldiers are common. Or you have to endure a gruelling two-day road journey east through Guinea-Bissau, up into Senegal and around Gambia to Dakar. We have done this journey once, and the idea of doing it again makes me suicidal. It too is not without risks, for the roads are atrocious and littered with overturned or burnt out vehicles.
So there is no easy option. The road up through Casamance is also on the FCO’s blacklist, although if we can make it the 18km to Ziguinchor tomorrow we can then ask in town whether it is safe to go overland up to Gambia. If it’s not safe, we can go by boat to Dakar (safeish if the boat doesn’t sink, as it did a few years ago). We have decided on the latter course, which means 18km of danger – approximately half an hour. Ziguinchor itself is quite calm and well guarded by police.
I will post again when we get to Ziguinchor. I have been reading Ryszard Kapuscinski’s Another Day of Life, where he got caught up and regularly fired on in the Angolan war of independence, as reassurance. This would have been a cakewalk for him.
January 5, 2010 at 6:01 pm | More on Africa, Conflict and security | Comments Off
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