This content was originally published on forbesafrica.com.

Specialists from China are erecting massive buildings across Africa, including Ethiopia's new national soccer stadium. The workers must leave behind their families and move to faraway countries. But the money is hard to beat.

Xu Dingqiang, the head of electrical and sanitation installations at the future Addis Ababa National Stadium.

Xu Dingqiang's position at the top of the construction site hierarchy is apparent in the way he dresses. Work pants, steel-toed boots, hard hat, reflective vest. Not all the workers here have access to such equipment. But the 47-year-old has an important task.

Xu is in charge of installing electrical and sanitary equipment in the future stadium of Ethiopia's national soccer team. The building stands out from the maze of streets that surround it in Addis Ababa, as if a spaceship had landed in the center of the Ethopian capital.

Xu hurries up through the stands where up to 60,000 spectators will soon sit and cheer. At the uppermost level, he enters a dimly lit restroom where 10 of the stadium's 1,000 toilets have been installed. The lights don't yet work and the floor tiles are covered by a layer of construction dust. A colleague speaks to him in their native dialect from Jiangsu province in eastern China. Xu stands with his legs apart and his arms crossed in front of his chest.
 

Xu Dingqiang talks to a colleague about ongoing work at the construction site.
 

The two specialists work for the China State Construction Engineering Company, or CSCEC, one of the largest construction companies in the world. The Adey Abeba Stadium, the roof of which will ultimately look like the shell of some primeval lizard, is one of the Chinese state-owned company's showcase projects. It is also busy erecting glamorous new headquarters for the Commercial Bank of Ethiopia in Addis Ababa and Africa's tallest skyscraper in Egypt.

Photo Gallery: Bunk Beds and Yeast Dumplings

CSCEC is just one of many Chinese companies, whether state-owned or private, that have been feverishly building new skyscrapers, roads, railways, stadiums and dams in Africa. The China Africa Research Initiative at Johns Hopkins University in the U.S. estimates that African countries borrowed in the neighborhood of $143 billion (130 billion euros) from China's government, banks and entrepreneurs between 2000 and 2017.

But who are the people behind this construction boom? And what is it like for them living in Africa?

'If this were China'

Xu has finished inspecting the toilets and leans against one of the stadium's concrete balustrades, gazing out on a panorama of grass and bushes that will soon give way to sports fields and parking lots. Behind them are houses and buildings of various sizes and, in the distance, hazy hills. "If this were China," Xu says, "it would look much tidier here."

Xu has little opportunity to explore what the Ethiopian capital has to offer. He only leaves the fenced-in construction site two or three times a week to fetch snacks for his employees or items he needs for his job. Addis Ababa is considered extremely safe compared to other African cities, but Xu doesn't navigate the city on foot, and he doesn't go alone. He's heard of other Chinese people who were mugged. "I'm a little scared," he says.

Xu Dingqiang, the head of electrical and sanitation at the construction site, says he enjoys the mostly rainless Ethiopian weather.

It is estimated that more than 200,000 Chinese are currently working for Chinese and foreign companies in Africa. Many, like Xu, move from country to country. Before coming to Addis Ababa, he helped build the new port in nearby Djibouti. Before that, he says, he was in Germany, Spain and Greenland.

These global Chinese migrant workers mostly keep to themselves. They live in temporary barracks or apartment blocks, communicate with native workers in an amalgam of Mandarin, English and the local language and generally have little contact with the general population of their host country.

Some Chinese, of course, have settled in Ethiopia, having found a wife and started a family or perhaps opened a shop or restaurant. Most, however, return home to their families in China sooner or later. They are primarily drawn to far-flung construction sites like the one in Addis Ababa by the money.

A Win-Win Situation

Xu took the job in Ethiopia two years ago because he was eager for something new -- and because he earns twice as much as back home. Plus, he gets free room and board. He left his wife and children in Jiangsu and moved into barracks next to the stadium in Addis Ababa. In the evenings, he surfs the web and watches Chinese movies before falling asleep in his metal bunk bed.

Xu's life consists of little more than work and he's hardly seen anything of his host country in the past two years. He does like the Ethiopian climate, though, because it hardly rains. Rain is impractical for construction workers.

His position as head of electrical and sanitation has at least earned Xu the right to live alone. Lower-ranking workers have to share, with eight of them packed into a single room. In Xu's space, there is enough room for a somewhat homespun-looking desk and for cable reels stacked on the bare concrete floor next to his bed. Xu has placed three pairs of shoes on the welded reels, next to a cardboard box of dried seaweed. There is no wardrobe.

Dormitories for Chinese workers

Meaza Alemu, 23, enjoys working in the kitchen at the construction site and cooking for the Chinese and Ethiopian workers.

In one of the stadium's basements, 18-year-old Abdullah Abdulrahman is grouting tiles in a washroom. He's from the countryside, but a few months ago, he approached the stadium's steel gate and asked for work, as did most of the locals who work here. He's happy to be earning money and learning something new in the process. "I like working for the Chinese," he says.

The young Ethiopian women who prepare Chinese food in the kitchen for the foreign workers are similarly grateful. So too are the Ethiopians leveling the sand in the arena where the turf will ultimately be installed. They, too, have only positive things to say, even when no Chinese person is listening.

Only one of them complains, saying he'd like to earn more. But he's not about to go out and look for a new job. The job security is better here than at other construction sites in Ethiopia, he says. One of his Chinese superiors sometimes yells at him, he says, but that could just as well happen with a local boss.

Construction site manager Chen Yu

Cultural Differences

Chen Yu manages the construction site and speaks openly about the difficulties that his job entails. "The biggest problem," the 37-year-old says, "is the Ethiopians' work ethic. Most of them don't like working overtime." While the Chinese work nine to 10 hours a day, the Ethiopians usually work only eight, he says. Plus, if they show up late to work and have their pay docked as a result, Chen says they'll show up in his office to complain.

Any Ethiopian who is ambitious in his job can earn a raise, the manager says. But very few do. Most of them have practically no technical qualifications and it's a laborious and costly process to train them for the job, he says. It's absolutely possible, Chen adds, that his Chinese colleagues might sometimes lose their temper.

The civil engineer has a rather critical opinion of the African country and its people. On one hand. On the other, Chen says he respects and admires the Ethiopian culture. "Ethiopians are much more spiritual and not as materialistic as the Chinese. They seem happy, even if they don't own much," he says.

Chinese workers attend a regular security briefing inside the stadium.

Five translators work on the construction site to clear up misunderstandings that can arise due to different ways of thinking or doing things. Chen and his employees also do their best to stay out of the cultural and political wranglings of their host country.

It's around 6:30 a.m. on a recent morning and all of the Chinese specialists have gathered for one of the regular safety briefings at the stadium. They are lined up beneath the stands, hard hats on and hands in their pockets, as they listen to a superior.

He tells them that a few days ago, the head of the Ethiopian army and a provincial governor were shot dead. He goes on to say that ethnic groups in the country are at odds with one another, and that it is therefore important to act neutrally to all sides. The superior adds that it would be best to avoid giving tips altogether, lest one arouse envy or resentment among others.

A Stadium-Sized Life

This state-imposed neutrality is another reason why African heads of government are so fond of doing business with the Chinese. It's the stuff of dreams: A big-scale investor who helps poor countries without asking critical questions or making demands, like the Europeans are wont to do before releasing funds.

Xu, the installation manager, and Chen, the head of the construction site, would therefore rather not comment on the fact that the Ethiopian national soccer team is currently ranked 146th of 210 teams by FIFA, which makes the gigantic stadium they are building in the middle of the city seem like wasteful political symbolism.

And what might happen if Ethiopia and other developing countries can't pay back their loans to the Chinese? To what extent do countries' economic dependence spill over into a political dependence? Here, Chen's and Xu's answers are in lockstep with those of the Chinese government. Unlike the West, Chen says, China has never colonized another country. "We all want to grow together," he says.

Dormitories like this one can accomodate four to eight Chinese workers.

This article was first published in spiegel.de.

This article was originally published on ghanaweb.com.

Nigeria’s first diaspora bond, issued in 2017, was a resounding success. It raised $300 million for investment in infrastructure from Nigerians overseas and was oversubscribed by 130%. The government is now reportedly planning a second similar offering.

 

Credit: Office of Teodoro Obiang.

As many African countries attempt to raise development finance, diaspora bonds – which resemble other kinds of bonds but are targeted at citizens abroad – are highly appealing. The African diaspora is massive and has significant accumulated wealth. Moreover, diaspora investors are typically motivated by more than simply maximising returns. They often also want to help improve the socio-economic conditions in their home countries, making them willing to accept below market returns, a phenomenon known as the “patriotic discount”.

It is for some of these reasons that the likes of India and Israel have used diaspora bonds to raise money in the past. However, their use in Africa, including in fragile and conflict-affected states, is more recent and less proven. The experience of Ethiopia is a case in point. Ethiopia’s first diaspora bond was issued in 2008, but sales fell well short of expectations. A second in 2011 also appears to be struggling, raising only a small portion of the investment required to fund the Grand Renaissance Dam project.

So what’s behind the contrasting outcomes between the likes of Nigeria and Ethiopia? And what can they tell us about diaspora bonds’ potential ability to raise capital for development across Africa?

What Makes a Diaspora Bond Successful?

There are a wide variety of factors that determine the success of a diaspora bond, but as a report by OEF Research points out, these features largely fall into two categories. 

The first is the offering’s structure. Diaspora bonds need to be structured in a way that makes them appealing and accessible to a wide range of diaspora members. For example, a range of investment options – particularly in ensuring low minimum-purchase requirements – can help attract individual, small-scale investors. Meanwhile, ensuring bond denomination in stable and convertible currencies such as Euros, British pounds, and US dollars can overcome investors’ concerns over currency stability.

While time-consuming and expensive, proper registration of the bonds in investors’ countries of residence can also be critical to ensuring investor confidence and avoiding regulatory penalties. For instance, the registration of Nigeria’s diaspora bond with the American Securities and Exchange Commission (SEC), UK Listing Authority and London Stock Exchange all contributed to its success. By contrast, Ethiopia’s unsuccessful 2011 offering was not registered with the SEC, limiting its marketability and leading to the forced repayment of $6.5 million sold in the US for violating American securities laws.

The second set of factors that determine the success of diaspora bonds is the offering’s link to development. Investors expect their investments to have a positive impact in the issuing country, and bonds earmarked for specific projects such as infrastructure (as was the case in Nigeria), education or healthcare, can be particularly appealing to the diaspora market. Communicating the progress of the development connected to the bond can help attract investors for subsequent offerings. 

In some instances. bonds focused on sub-national projects may be especially effective in this regard. Many members of the diaspora left their countries of origin due to conflict or repression and may distrust the national government. Sub-national bonds, which focus on developing a specific region, may help overcome this wariness.

The Path Forward

If planned and structured appropriately, diaspora bonds have great potential to tap into significant sources of capital that are currently underutilised. 

The international community can also help support these initiatives. Multilateral financial institutions such as the World Bank and African Development Bank can provide technical assistance to issuing states on bonds terms and registration requirements. Meanwhile, academic institutions and civil society organisations can provide research on the demographics and investment potential and preferences of specific diaspora groups. 

Diaspora bond offerings are far from a silver bullet for the continent. But with the right information, technical expertise, and marketing, they can be a powerful tool for raising development finance in Africa.

This article was originally published on africanarguments.org

Fortunately or unfortunately, the success or failure of the climb depends on African leaders and their countries’ administrators and governing apparatus. Strong people want the responsibility of forging their own path to rest on their shoulders with the grace of God. The human mind is capable of untold feats of resilience and creativity. We know the world we have today because humans braved the unknown when there were no airplanes and engine driven ocean-going vessels to circumnavigate the earth. To reach places thousands of miles from their native land. In recent times, humans have cured incurable ailments through science and have traveled to and landed on the moon. Atomic weapons of unfathomable destructive capability are now part of human experience. Africans are humans, too.

The challenge of doing the responsible thing is that the consciousness of people and leaders have to accept the mantle of responsibility for success or failure. Meaning that what happens in Kenya, Rwanda, South Africa, Zimbabwe, Algeria, Tunisia, etc, is not a result of what decisions are taken in Europe, North America or in the Eastern hemisphere, but in the countries and b the people and leaders. That is a tough pill to swallow because it eliminates the rationale of blaming others for the cause of failure or inaction. The causation of the affliction that plagues the continent of Africa lies in the mindset of the leaders, first and foremost and the people secondarily. African nations can rise up when they decide to take the reins of the circumstances which confront them. The same as what confronts every nation and region of the world. The rich countries are not devoid of challenges that are extreme. The difference is that they see the solutions as inherently within their ability to affect. 

Doing the responsible thing is for leaders of all African countries to eschew a propensity to grasp for power for power’s sake. And for the population to realize the crucial importance of putting people in power who are imbued with the spirit of servant leadership for the purpose of effecting change in their condition. The history of the world is replete with the experience of leaders who changed the trajectory of their nations and moved millions from poverty to self-sufficiency. In the political ecosystem of African countries, nothing is more important than for leaders to accept the responsibility of moving people from poverty to self-sufficiency. 

It requires putting their countries and people first. Turning the current dynamic that finds leaders in the apex position on the pyramid of leadership so leaders are at the bottom, empowering and serving their people. This concept has a wide appreciation and following. It was modeled by the “one” claimed to be the son of God who lived as a servant of people. Servant leadership does not diminish the power of leaders it enhances and magnifies it because a servant leader enables people he serves and supports to be their very best. 

The traditional view of a leadership pyramid


Servant leadership pyramid

 

To put it in perspective the company (and team) the Walton built and nurtured has grown to become the world’s largest company by revenue and the largest private-sector employer, all this while remaining a family-owned business. 

In Japan after WWII, the Japanese elected an intrepid leader, Shigeru Yoshida. People who rail about the dysfunction of African countries should study the Japanese experience. Yoshida served for 2700 plus days, which is a huge “eternal” anomaly in Japan where the prime ministership is a sort of temporary job and liable to change at a whim. Nevertheless, Japanese leaders have forged the 3rd most powerful economy in the world from the ashes of defeat and destruction after WWII. 

1  https://en.wikipedia.org/wiki/Walmart
2  https://www.joc.com/maritime-news/top-100-us-importer-and-exporter-rankings-2018_20190530.html
3 https://courses.lumenlearning.com/boundless-worldhistory/chapter/japanese-recovery/

Abahizi Rwanda
A Feature of Unleash Africa Editorial Team 

2 UNCTAD, Trade in Manufactures of Developing Countries and Territories, 1974 Review, New York 1976.    
3 M. A. H. M. R a h m a n : Exportsof Manufacturesfrom Developing Countries, 1973.
4 Cf. UNCTAD, op. cit.            
5 T. K. Morrison: Manufactured Exports and Protection in Developing Countries: A Cross-Country Analysis, in: Economic Development and Cultural Change, Vol. 25, No. 1/1976, pp. 151-158.                     
6 T. Ta k eo: Free Trade Zones and Industrialization of Asia, Special Issue.AMPO: Japan-Asia Quarterly Review, Tokyo 1977, pp. 1-5.                
7 Ho Kwongping: BargainingontheFreeTradeZones,in:The New Internationalist, No. 85, March 1980.     

This article was originally published on econstor.eu

The Africa Governance Report: 
Promoting African Union Shared Values
by the African Peer Review Mechanism (APRM) In Collaboration with the African Governance Architecture (AGA)

EXECUTIVE SUMMARY 

1. During the 28th Ordinary Session of the African Union Assembly of Heads of State and Government, held on the 30-31 January 2017 in Addis Ababa, Ethiopia, Member States of the Union (hereinafter Member States) resolved in its decision Assembly/AU/Dec. 631(XXVIII) to seize the African Peer Review Mechanism (APRM) with the responsibility to “play a monitoring and evaluation role for the African Union Agenda 2063 and the United Nations Sustainable Development Goals Agenda 2030”. Subsequently, the African Governance Architecture (AGA) Platform Retreat of March 2018 agreed on a work plan and strategic framework that identified priorities for 2018. The APRM was identified as the lead institution for the preparation of the Africa Governance Report (AGR). The Assembly at its 11th Extraordinary Summit in November 2018 reaffirmed the need to strengthen the capacity of the APRM to deliver on its expanded mandate and enhance its functional autonomy, including developing a report on the state of governance in Africa in collaboration with the AGA. It also requested the APRM to present an update on the state of governance in Africa report to the 32nd Ordinary Session of the Assembly scheduled to take place in February 2019.


2. The AGR assesses the state of governance in Africa with a view to providing Member States with a comprehensive baseline to assist governments to enhance governance. Whilst there already exist assessment reports on the state of governance in Africa that are publicly available in public discourse, these reports have largely been developed by multilateral organisations and independent think-tanks across the continent and abroad. The AGR is commissioned by the Assembly of the African Union Heads of State and Government. 

3. The imperative for the development of an African-generated governance report is three-fold: first, this homegrown report is consistent with previous decisions of the AU Assembly to take control of its own development agenda and accountability mechanisms; secondly, the research methodology in this report benefits considerably from consultations with the AU Organs and Institutions, Regional Economic Communities; and unfettered access to Member State informants and state-held data; thirdly, the report is generated by Africans for Africa, which improves prospects for the implementation of its recommendations. 

4. This inaugural report is meant to be a foundation for future analysis of governance trends on the continent. The report highlights shared values and how they can help galvanize governance in the continent. It establishes a basis for measurement, analysis, and projection of future trends. 

5. The governance assessment focuses on five key thematic areas of priority, namely: (a) transformative leadership, (b) constitutionalism and the rule of law, (c) peace, security and governance (Silencing the Guns), (d) the nexus of development and governance, and e) the role of the regional economic communities (RECS) in African governance. 

6. The structure of the report is as follows: 
Chapter 1 is an Introduction that reflects on the concept of governance, provides a background and context, explains the purpose and methodology of the report, and introduces the relevant structures of the AU. 
Chapter 2 outlines the African Governance Policy Framework, including the African Union Shared Values, within the context of the AU Agenda 2063. 
Chapter 3 is about Transformative Leadership. 
Chapter 4 discusses Constitutionalism and the Rule of Law 
Chapter 5 deals with Peace, Security and governance. 
Chapter 6 is on the Nexus Between Development and Governance. 
Chapter 7 considers the role of the Regional economic communities in Governance. 

7. Each chapter provides a comprehensive reflection and assessment of the State of Governance in Africa by focusing on the relevant instruments, notable progress in implementation, challenges and enablers of good governance, as well as best practices, and proposes recommendations for improvement. 

8. The state of governance in Africa has generally improved. The strongest performance has been registered in socio-economic development, while the least gains have been recorded in democracy and political governance. Member States have also recorded satisfactory performance in the area of economic governance and management and corporate governance. 

Transformative Leadership 

9. Transformative leadership is critical to the realization of the African Union and Member States’ objectives. African political and administrative leadership is at various levels: continental, regional, national and subnational (such as that in civil society, business, community and social organizations). The leadership at Member State level is central because sovereignty is vested in national entities, and this leadership mediates both intra-state and international social, political, and economic relationships. 

10. Transformative leadership drives progressive change and has attributes or qualities including vision, innovation, integrity, inclusivity, responsiveness and effectiveness. Additionally, such leadership should be oriented toward achieving the AU Agenda 2063 aspirations and global UN 2030 (SDG) objectives. 

11. African transformative leadership has made significant progress towards consolidating the practice of democracy and formulating National Visions. In addition, the African public appreciates democratic principles and practices, as manifested in their active participation in civil society and through the electoral processes. 

12. The following are proposed recommendations for enhancing transformative leadership: Member States should: (a) continue to align their National Visions with the AU Agenda 2063 and UN SDGs, their National Development Plans, and in some cases, the their National Action Plans (from the APRM self-assessment process); (b) end all forms of discrimination and exclusion; (c) promote democratic principles and institutions, popular participation and good governance; and (d) promote and protect human and peoples’ rights. 

Constitutionalism and The Rule of Law 

13. Constitutionalism and the rule of law refer to recognition of the supremacy of the law, whereby the law is the basis for political decision-making and administrative action. In concrete terms, it entails: (a) respect for law; respect for the rights of human beings; (b) the separation of governmental powers; (c) public participation in governance; (d) accountability of the three arms of government to the public; (e) independence of the legislature and the judiciary; (f) accountability and effectiveness of the bureaucracy; and (g) access to justice. 

14. There are signs of progress in African constitutionalism and the rule of law, including: a. Encouragement of democratization. b. Generally, respect for presidential term limits. c. Respecting human rights. d. Introduction of institutional checks and balances, including systems of judicial review. 

15. However, some constraints and challenges still require action, such as (a) the Member States establishing strengthening mechanisms to monitor and evaluate the effectiveness of integrity and anticorruption programmes and strategies; (b) incorporating local and customary practices in their formal criminal justice systems; and (c) the Member States consistently submitting the periodic reports required by the instruments they have committed to. 

Peace, Security and Governance 

16. There are various instruments for ensuring good peace, security and good governance. At the continental level, the AU has committed to implementing decisions and actions that would lead to peace, security and good governance, to “Silencing the Guns” by 2020. There have been several efforts by the AU, RECs, and Member States to prevent and mediate conflict and establish stability. 

17. Although the number of large-scale inter-state wars has declined, instances of intra-state conflicts, violence, unrest, and terrorism appear to have increased in the last two decades. 

18. Various recommendations are proposed to promote peace, security and governance. The Member States should: (a) sign, ratify and domesticate all the crucial instruments; (b) improve harmonization of functions between the AU and RECs; and (c) fast-track the rapid deployment capability of the Africa Standby Force. 

Nexus of Development and Governance 

19. The AU Agenda 2063 is closely related to the 2030 Agenda for Sustainable Development (UN SDGs). Many Member States formulate national development plans that aim to translate National Visions into programmes and projects for ensuring national development and social and human progress. However, the implementation of the plans faces several obstacles and challenges, including that they are not adequately aligned with the AU Agenda 2063 aspirations and objectives of the UN SDGs. 

20. These are the proposed action items by Member States: (a) ensure alignment of their National Development Plans, their National Visions, and in some cases, their National action Plans (cf. APRM Country Review report) with the AU Agenda 2063 and UN SDGs; (b) make plans and programmes that aim at inclusive human development; and (c) formulate realistic plans that ensure prudent and sustainable utilization of scarce natural resources. 

Role of the RECs in African Governance 

21. The Regional Economic Communities (RECs) are voluntary associates that have functions relating to continental unity, development, economic cooperation and integration, and promotion of democracy and peace and security. Additionally, the AU works with Regional Mechanisms (RMs) that aim to enhance continental efforts at realising shared values. 

22. Although regarded as the building blocks for continental unity and development, there is a need to further work on the harmonization and coordination of the functions and responsibilities of the RECs with the AU. 

23. The proposed recommendations are: (a) to enhance collaboration between the AU and RECs, in line with the decisions of the African Union Assembly, in particular the Eleventh Extraordinary Session of November 2018, and (b) to ensure that all the RECs align development plans with the AU Agenda 2063 and UN SDGs.