East Africa roundup for February: Rwanda, South Sudan, Kenya and Burundi

A roundup of East Africa democracy news and opinion:

Julian Hattem in World Politics Review explains that “Rwanda’s Opposition is Disappearing Along With Kagame’s Credibility“, keyed off the death of popular gospel singer Kizito Mihigo in custody.

This is a good article and I recommend it (while I have to note my pet peeve that it indulges as so many accounts do in the Kagame mythology that the RPF “marched in from Uganda to end the genocide” rather than noting that they came across the border and began fighting years earlier than their march into Kigale in 1994.)

Is there a day coming where Americans notice the problem even of repression of religious freedom in Rwanda in spite of the lionization of Kagame and his willingness to transact with foreigners on terms not available internally?

In South Sudan, a formal unity government was announced to meet the extended February 22 deadline. Most important details are either unresolved, or to be executed from a dead start, but this was a necessary step for hope for deeper progress, especially for one day when the people are free of their current warlord leaders. Riek Machar upon being re-instated as First Vice President was accordingly released from IGAD “house arrest”.

Update–Here is a report from the International Crisis Group: “A Major Step Toward Ending South Sudan’s Civil War

Kudos are in order for the diplomatic efforts to step up pressure on both sides, and in particular on Salva Kiir who had the most power and leverage through defacto control of the government. It seems that the State Department under Assistant Secretary Tibor Nagy in particular engaged and showed leadership. The US has a unique diplomatic responsibility and opportunity in South Sudan so it is encouraging to see us step up to the plate.

Not sure what to make of this article in which Kalonzo Musyoka and the reporter posit a leading role for himself as Kenya’s envoy: “Kalonzo: How we brokered Kiir Machar peace pact“:

Former Vice-President Kalonzo Musyoka returned to the country on Sunday from Juba after accomplishing a delicate peace deal that saw South Sudan President Salva Kiir and former rebel leader Riek Machar form a unity government.

The negotiators of the peace agreement heavily relied on Mr Musyoka to achieve the long-delayed process towards ending a six-year civil war that has led to loss of thousands of lives.

It is very much true that (1) Kalonzo was a Kenyan insider under Moi and then Kibaki’s Foreign Minister on though the negotiation of the CPA in 2005; (2) Kenya is inevitably of importance in South Sudanese power struggles because of the role of Nairobi as at least the “back office” and “capitol of capital” for South Sudanese kingpins; (3) Gideon Moi (as reported by The Sentry) and certainly other leading Kenyan figures are major players in financial dealings at issue in South Sudan; (4) the U.S. as the leading international power involved in the nascent building of a South Sudanese nation is closest to Kenya and to Uhuru Kenyatta in particular among the IGAD members and leaders, so Kalonzo in representing Kenya and Uhuru presumably has standing with the US in addition to his own background with the negotiations.

Remember that after his deal with Mwai Kibaki during the 2007 presidential campaign to stay in the race and be appointed Vice President, Kalonzo was trusted enough by Kibaki and his men to represent them in Washington during the Post Election Violence in lobbying against a “unity government” with Raila. At that time in early 2008 Uhuru was also in Kibaki’s initial cabinet Minister of Local Government, as he had been under Moi in 2000-2002, administering Nairobi issues in those pre-devolution days.

Speaking of Nairobi, Uhuru and devolution, the purported “sign over” of governmental powers from Nairobi Governor Sonko, to the Kenyatta Administration, while seemingly suspended from official action by court order and facing impeachment and criminal charges, is the big new story.

According to The Standard, “Human Rights Activist Okiya Omtatah and Lawyer Robbin Murimi filed separate applications at the High Court Nairobi challenging the move.”

Uhuru Park

Close behind is the damning latest round of leaks of secret details of corruption and dereliction in the Kenya Railways/Standard Gauge Railroad saga.

Otherwise, as it has become more clear that the BBI is generating inevitable controversy, Ambassador McCarter has tempered his language of American support to emphasize a robust debate with wananchi involvement on “which provisions to enact”. At the same time, three months now since the release of the original BBI Report and almost two years after the Handshake, it remains unclear (or undisclosed) exactly what the “deal” is.

Meanwhile, elections are coming up fast in Burundi on May 20. For the latest on the ongoing pre-election violence, see The New Humanitarian: “Killings, arrests as elections draw near in Burundi.

The EAC will send Observers since Burundi is a member:

EAC Secretary General Ambassador Liberat Mfumukeko informed the UN delegation that the EAC observes elections within the context of the National Constitutions of the Partner States.

He assured the delegation that preparations were underway for the launch of a longterm EAC Observer Mission that will monitor the Burundi electoral process in its entirety, as well as a short-term EAC Observer Mission that will monitor the polling only.

“I am confident that the peaceful spirit we have experienced during the party nominations will continue during and after elections,” said the secretary general.

“The EAC is calling on all the people of Burundi to sidestep violence, regardless of the situation,” he added. In 2018, Burundi promulgated a new Constitution.

Retired Admiral Stavridis publishes op-ed demonstrating American “National Security Establishment” view of “Africa’s Security and the Power Struggle”

I highly commend to my friends who are Africanists or African, or Americans who have not been directly involved in the “national security” professions, a short op-ed piece today from Admiral James Stavridis (Ret.):

Africa’s Security and the Power Struggle

The immediate policy debate in Washington being addressed is consideration of reductions to AFRICOM to be redeployed in support of the Trump Administration’s National Security Strategy of greater emphasis on “Great Power Competition” relative to “Violent Extremism”/”Global Terrorism” so Adm. Stavridis provides an “ionospheric” look at the Continent and its future in support of his argument.

Adm. Stavridis retired from the Navy in 2013 after an extremely accomplished career. He served as Commander of the U.S. Southern Command from 2006 to 2009, then served as Commander of the European Command and Supreme Allied Commander. The perspective of a recent former SOUTHCOM and EUCOM Commander on AFRICOM is clearly invaluable to understanding that way of seeing the world.

Stavridis graduated from the Naval Academy in 1976 and climbed the ladder as a distinguished Surface Warfare Officer, along with UN/NATO deployments to Bosnia and Haiti in the 1990s. He ultimately commanded the Enterprise Carrier Strike Group “conducting combat operations in the Arabian Gulf in support of both Operation Iraqi Freedom and Operation Enduring Freedom”.

Along the way, he did his PhD in International Relations at Tufts, along with other graduate degrees from Tufts, and the National and Naval War College. After retirement he served as the Dean of Tufts’ Fletcher School of Law and Diplomacy. So he is simply put a superstar by background and experience.

Today he is the Operating Executive for The Carlyle Group, the famous global defense-focused equity fund [NASDAQ: CG] and the Chair of the “Board of Counselors” of McClarty Associates, the famous Washington-based global consulting firm [“We know diplomacy; We provide diplomatic solutions”].

By way of disclosure, I retired from 12+ years as a defense industry lawyer working primarily in Navy shipbuilding around the time Stavridis retired from the Navy. I was on unpaid “public service leave” for my East Africa democracy assistance work at the International Republican Institute. So Stavridis’ perspective is all “second nature” for me but will not be intuitive to those from other places and backgrounds.

[Longtime readers or those who otherwise follow Kenyan elections closely might remember that McClarty Associates Vice Chairman John Negroponte was Deputy Secretary of State during the 2007-08 election crisis in Kenya. Negroponte met with representatives of the ODM opposition seeking release of the embargoed USAID-funded International Republican Institute exit poll done with the University of California, San Diego, showing an Odinga win. I learned through FOIA that Kalonzo Musyoka met with Negroponte the same day:

The War for History” part nine: from FOIA, a new readout of Vice President Kalonzo Musyoka’s February 2008 meeting with John Negroponte:

The Kalonzo-Negroponte meeting was the same day as U.S. Senate hearings on the Kenyan election, lobbying by ODM with IRI and Negroponte for release of the USAID/IRI exit poll and that evening’s announcement that IRI found the poll “invalid”. (My FOIA did not result in any documents regarding the ODM-Negroponte meeting.)

From my e-mail to Joel Barkan in 2012:

Kalonzo meeting with Negroponte was in Washington on Feb 7, 08–also included [Kenyan Ambassador] Ogego and a staffer from Kenyan embassy. He said power sharing would be a set back for democracy as Kibaki win was “evident” from review at ECK. Would be willing to step aside as VP for Raila, but the Kenyan people would not support it as it would be “undemocratic”. Kalonzo assured that the violence was now under control, but that the U.S. should continue to call it “ethnic cleansing”. According to Salim Lone interview in Standard back in December ’08 he and ODM delegation met with Negroponte that day to push for release of exit poll before meeting with IRI.

Bechtel Mombasa-Nairobi Expressway project background

Ambassador McCarter has been engaging with Kenyans on Twitter following an Embassy media release on US support for the proposed Mombassa-Nairobi expressway.

For background:

U.S. withholds funding for Sh. 300 billion Mombasa-Nairobi expressway. This was the news on May 27, 2019, as reported from A1Autoservice,Ltd.com:

Nairobi-Mombasa expressway funds stalled 

The US Government has temporarily shelved funding for the proposed Sh. 300 billion Nairobi-Mombasa expressway over cost implications. The construction of the 485-kilometre road to ease perennial traffic snarl-ups was to be done by American engineering firm Bechtel after Kenya and US struck a deal during last year’s meeting between Presidents Donald Trump and Uhuru Kenyatta at the White House. The US ambassador Kyle McCarter, said the US was scrutinising the proposal to establish whether Kenyans would get value for their money. He said the cost was in question at a time when the country is struggling with piling debt. 

Responding to queries whether Bechtel had lost the contract to China, McCarter said: “Bechtel did not lose the deal, we are still working on the finance. Kenya has a challenge of debt and we are wary of burdening Kenyans”. “We did not want to sign onto a project whose cost would turn out to be three to four times higher than the actual. We want to ensure there is an honest return on investment for Kenyans before we break ground.” 

In 2015, PriceWaterhouseCoopers (PwC) — in a feasibility report — indicated that the costly project was viable.McCarter said US zero tolerance for corruption forced them back to the drawing board and would only embark on the project once they are satisfied it guarantees value for money for Kenyans and will not sink the country deeper into debt. 

The envoy affirmed US support for the war against corruption and termed the plunder of public coffers an act of outright thievery. “Calling it corruption makes it mystical, like those behind it share the proceeds with the nation. But the truth is that it is simply taking what is not yours and that is thievery,” he said. 

The proposed road will be a dual-carriage motorway with four lanes to ease congestion and cut travel time between the two cities from the current 10 to about four hours.It will run parallel to the current Nairobi-Mombasa highway and will help promote trade and movement in Kenya and the neighbouring countries of Uganda, Rwanda, Burundi, DRC and South Sudan. 

Working documents on the project show that it is expected to start any time after the June budget release.Bechtel estimates that construction of the expressway will create 500 jobs and involve local businesses supplying up to 100,000 tonnes of cement and 40,000 tonnes of steel.

Here is a digest of stories on the project from July 2017 to July 2018:

The battle for road tenders hots up as U.S. giant opens Nairobi office, Construction Kenya, July 11, 2017:

. . .

As a starting point, the US construction giant has already expressed its interest in the forthcoming expansion of the 485-kilometre Mombasa-Nairobi highway into a six-lane dual carriageway.

The US Export Import Bank is strongly pushing Bechtel to secure the contract in an arrangement similar to that of the China Export Import Bank where the Asian bank funds projects contracted to Chinese firms.

“With the support of the US government agencies such as Overseas Private Investment Corporation (OPIC) and the Export-Import Bank, we can provide solutions to move this critical project forward quickly with a high standard of quality,” Mr Patterson added.

The entry of Bechtel – along with its financial backing by the US Exim Bank – will complicate matters for Chinese multinationals who have been winning all tenders for projects financed by the China Exim Bank. . . .

U.S. firm wins deal to build Kenya’s first high speed highway, Construction Kenya, Aug 17, 2017:

US-based engineering firm Bechtel International Inc. has signed a Sh230 billion commercial agreement with the Kenya National Highways Authority (KeNHA) for construction of a 473-kilometre Nairobi-Mombasa high-speed expressway.

KeNHA director general Peter Mundinia said the signing of the deal has paved the way for the next stage of mobilisation of financing from export credit agencies in the United States of America.

. . .

It is expected that agencies such as the US Export-Import Bank and the Overseas Private Investment Corporation (OPIC) will finance the project.

“It is projected under the proposed commercial contract that the 473km highway will be completed in ten sections within the next six years,” Mr Mundinia said.

The first section, from the junction with Namanga Road near Kitengela will have an interchange near Konza ICT City and a spur road to Kyumvi (Machakos Turnoff) on Mombasa Road. This section is anticipated to open to traffic in October 2019. . . .

U.S. rejects Kenyan press criticism of $3B Bechtel roads deal, Global Construction Review, Sept. 25, 2017:

The US embassy in Kenya has rejected a newspaper’s criticism over a $3bn road contract awarded to Bechtel without competitive bidding.

The embassy said the Nairobi-to-Mombasa expressway had been under discussion for two years, and had been evaluated to ensure Kenyans receive value for their money. 

It also rejected press claims that the award was a “thank you” to the US for its political support of the Uhuru Kenyatta government. 

On 13 September, the day after the article appeared, the embassy tweeted: “US private firms (bound by US anti-corruption laws) investing in Kenya’s future bring jobs, tech transfer and development. This expressway has been under development for two years to bring best value. The US embassy does not and will not give political favours for commercial deals. On Kenyan election 2017, we’ve been and will continue to be strictly neutral.”

Kenyan government officials also defended the Bechtel deal. Peter Mundinia, director general of the Kenya National Highways Authority (KeNHA), said on 18 September that Bechtel was selected because of its experience of handling large infrastructure projects “over 119 years”.

He added that the Kenyan government had entered into an agreement with the US government in July 2015 whereby US companies would develop key infrastructure projects with US funding.

The US and Kenyan authorities were responding to an article in Kenya’s Financial Standard newspaper that questioned the way the project was announced and quoted from a Ministry of Transport briefing, carried out before the contract award, which argued the project should be put out to tender as a public–private partnership (PPP).

The Standard highlighted the fact that contract for the 473km A8 expressway between Mombasa and Nairobi was announced three days before the 8 August general election, and broke with established practice by being made without a Ministry of Transport press conference or an announcement from the president’s office. 

Instead, the announcement was made on a Saturday afternoon when government departments are usually closed, and made no mention of the project’s estimated price. 

The newspaper drew a comparison with the way the government had awarded the country’s standard gauge railway (SGR) scheme to Chinese contractors before the 2013 general election. In both cases the winner was appointed without putting the work out to competitive tender. 

In the SGR case, the choice was determined by the fact that China was making the funding available for the line; in the case of the motorway, the motive was to thank America for an “unspecified service” that the US had done for Kenya, according to unnamed “government insiders” quoted by the Standard.

According to the Standard there are now concerns within the Kenyan government over the amount of debt the country is taking on. The combined cost of the rail and road link between the country’s main port and the capital is likely to be at least $6.7bn, or almost 10% of the country’s GDP.

The controversy comes at a sensitive time in Kenya after the results of the 8 August election, which recorded a victory for the country’s incumbent president Uhuru Kenyatta, were annulled by Kenya’s Supreme Court on 1 September. 

The court cited irregularities and illegalities in the transmission of results and ordered the election to be held again within 60 days. It is due to take place on 26 October. Kenya has a history of serious post-election violence.

Nairobi-Mombasa expressway project dogged by serious concerns, Construction Kenya, July 4, 2018

Almost a year after Kenya signed a deal with US engineering firm Bechtel for construction of a Sh300 billion high-speed expressway between Nairobi and Mombasa, the two parties are yet to agree on how to finance the project despite a series of extremely high-level talks.

On the one hand, the Kenyan government wants the 473-kilometre Nairobi-Mombasa expressway to be completed through the Public Private Partnership (PPP) model where private investors will build and operate the facility for up to 25 years – charging toll fees – to recoup their investments and margins.

On the other hand, Bechtel International is opposed to the PPP model which it says will cost the Kenyan taxpayer Sh540 billion over next 25 years.

The company has therefore urged Kenya to undertake the project under an engineering, procurement, construction and commissioning (EPCC) contract.

Under the EPCC model, a contractor is obliged to deliver a complete facility to a developer who needs only to turn a key to start operating the facility; hence such deals are sometimes referred to as turnkey construction contracts.

But the government, which is concerned about the fast rising public debt, has made its stand clear. . . .

“We will commence detailed discussion on how the financing approach will be undertaken under that project. We will be discussing modalities, financing structuring and the details for us to be clear on how to undertake this project,” Treasury secretary Henry Rotich said on Tuesday.

US response to South Sudan corruption: a shoe drops

New action today on South Sudan corruption today, offering hope on the question from my last post “How quickly will the United States Government act in “analysis, evaluation and investigation” of The Sentry report on South Sudan?

Statement from The Sentry: “US Sanctions Al-Cardinal, Tycoon Named in Reports of The Sentry“:

October 11, 2019 (Washington D.C.) — Today, the United States placed sanctions on Ashraf Seed Ahmed Hussein Ali, widely known as Al-Cardinal, a tycoon with ties to the U.S., UK, and UAE.

Today’s action by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) target Al-Cardinal and his network of businesses, and come in the wake of two recent investigative reports by The Sentry “The Taking of South Sudan” and “Al-Cardinal: South Sudan’s Original Oligarch,” that detailed the business activities of Al-Cardinal, among others, and urged governments to sanction him and his networks.

. . . .

Joshua White, Director of Policy and Analysis at The Sentry, said: “The Sentry applauds today’s action by the Department of the Treasury, which should serve as a warning to the financial facilitators and commercial enablers of corrupt South Sudanese elites that they will lose access to the dollar unless they cease doing business that funds violence in the country. The United Kingdom and other European countries, as well as those in the region, should follow suit . . .

. . . .

The Sentry’s investigation found that Al-Cardinal has exploited opaque procurement processes, weak oversight institutions, and cozy relationships with South Sudan’s most powerful politicians to line his own pockets.

“A major enabler of corruption and violence for President Salva Kiir’s government,” according to the The Sentry’s reporting, Al-Cardinal has been embroiled in major procurement scandals, set up private businesses with ruthless military generals, imported military equipment during a bloody civil war and landed lucrative contracts linked to the implementation of the peace deal in South Sudan.

Read the full report “Al Cardinal: South Sudan’s Original Oligarch”: https://eno.ug/al-
Read the full report “The Taking of South Sudan”: https://eno.ug/

Reuters: “US imposes sanctions on two South Sudanese businessmen for fraud, bribery“:

The United States on Friday imposed sanctions on two South Sudanese businessmen, Ashraf Seed Ahmed Al-Cardinal and Kur Ajing Ater, for their involvement in bribery, kickbacks and procurement fraud with senior government officials, the Treasury Department said on Friday.

After the U.S. Treasury Department imposed sanctions on Benjamin Bol Mel, a key adviser to the South Sudanese president, in 2017, Mel used an account in the name of the companies of Al-Cardinal to evade sanctions and store personal funds, the Treasury Department said in a statement.

In early 2019, the South Sudanese government paid millions of dollars to a company owned by Al-Cardinal ostensibly for food, but that in fact was routed to senior South Sudanese government officials, the Treasury Department said. . . .

How on earth did USAID in Kenya end up helping to finance Michuki’s imperial Windsor Golf Hotel and Country Club? (revised)

(The end of this post has been revised to reflect skepticism about an allegation by Kenya’s Minister of Natural Resources in 1998 that land for Windsor was irregularly allocated to Michuki from Karura Forest based on the geographic separation between Windsor and the Forest.  Not a central issue, but I want to be as fair as possible.)

This very interesting piece of diplomatic and development history is noted in a recent oral history interview by a former USAID official, Kiertisak Toh, which I have introduced and excerpted below. I have not found reference in the Kenyan or U.S. media to the USAID role in this high profile development started in 1988.

For John Michuki, the Kenyan baron of the Windsor Golf Hotel and Country Club and Kibaki’s Interior Minister during my time in Kenya, please see my post on the occasion of his passing in 2012: “The Michuki Rule, and personal memories: Independence Day, snakes and freedom” and “Don’t forget about the Standard raid“. See “Trust and Accountability: Africa Center for Strategic Studies scholar discusses steps to a peaceful election” with thoughts about his impact on the post election violence. More expansively, for a politico/business biography with an eye to multiplicity of controversies over the years, see “Who is John ‘Kimeedero’ Michuki?” at The Kenya-Stockholm Blog. “Death of an old guardsman” from The Economist:

But as the country’s internal security minister, his hands were covered in blood. He was implicated in mass extrajudicial killings in 2007, in which hundreds of young Kenyan men were shot in the back of the head or bludgeoned to death for their alleged involvement in the Mungiki organised crime gang. And in 2006 Mr Michuki made a fool of himself by bringing to Kenya a pair of Armenian gangsters to shut down newspapers and television critical of the government. Since then, the country’s media have operated more or less freely.

To many Mr Michuki was a bridge to an older Africa. The space between tribal traditions and the palatial Windsor Golf Club, which Mr Michuki built at the north end of Nairobi, can be measured in his life span. He was born in 1932 into a large polygamous Kikuyu family. Orphaned as a child, Mr Michuki left his rural home for Nairobi. He found work in a uniform shop sewing on buttons before battling his way through primary and secondary school. He was loyal to the crown in its bloody hammering of the Mau Mau insurgency. Choosing the British over his countrymen set him at odds with the founding myth of Kenya, but Mr Michuki was too intelligent and “no nonsense” to let it hinder his career. He won a scholarship to Oxford, and became a district commissioner. He was put in charge of newly independent Kenya’s treasury. He ran the Kenya Commercial Bank and got involved in politics. Like the then attorney-general, Charles Njonjo, Mr Michuki had an Anglophile sense of things “being done properly.”

To Mr Michuku, that meant keeping his buttons polished and being on time, but it did not mean transparency. He was part of the cabal of Kikuyu and Meru politicians, intelligence officers and businessmen who ran a state within a state and turned a blind eye to dodgy land and business dealings. President Mwai Kibaki yesterday called Mr Michuki a “true family friend and a dependable ally.” The shame was that his acuity and vigour were not more often put at the service of the common man. . . .

The Windsor Golf Hotel and Country Club is explicitly neocolonial. No one’s heart is going to bleed for the British Royal Family over the cultural appropriation but as an American taxpayer, I feel a bit wretched on learning my “assistance dollars” were used directly instead of just indirectly to subsidize Kenya’s oligarchs in this way. (Disclosure: I have been a member of a private golf club myself, years ago, although I gave it up when I had children. But I am also aware of a variety of laws and regulations in the United States designed to keep governmental development and tax subsidies away from underwriting golf courses, even those that are far less exclusively targeted to the rich than Michuki’s Windsor.) [And, yes, I understand we are spending millions on President Trump’s golf resorts, and I object to that accordingly; that is straightforward self-dealing by our chief executive himself, rather than a misallocation of meagre development resources from poor to rich.]

I highly recommend reading the full Toh oral history interview for anyone interested in understanding the course of relations between Kenya and the United States from the mid-1980s through 2005, as well as one insider’s perspective on the tension between democratization and economic development assistance goals (Toh is an economist by background and initially worked in that capacity for USAID before rising into administration):

The Association for Diplomatic Studies and Training Foreign Affairs Oral History Project Foreign Assistance Series KIERTISAK TOH Interviewed by: Carol Peasley Initial interview date: February 9, 2018 Copyright 2018 ADST (funded by USAID Cooperative Agreement).

Toh’s positions in Kenya:

USAID/Kenya – Program Economist 1986-1989

USAID/Washington – Program Economist, Africa Bureau/East Africa 1991-1992

USAID/Kenya – Mission Director 2001-2005

. . . .

Q: Well, why don’t you talk- So, this was- you’re in Kenya in 1986 to 1989, so at that point was it a pretty good size program in Kenya, was it one of our premiere programs?

TOH: Yes, it was a high profile and one of the largest programs in Africa with big ESF [Economic Support Funds] money and CIP, Commodity Import Program. We were in the Cold War era. Kenya was considered our geopolitical and strategic partner in the region.

Q: Oh, there was a Commodity Input Program there. Oh, I didn’t realize that.

TOH: And a large- I guess we tried to make the CIP as part of the private sector development program. Kenya at the time had foreign exchange controls which were a barrier to private business to import.

Q: Ah. So, it was a large ESF program. Was that because the U.S. military was using the Port of Mombasa?

TOH: I think so. Q: Yes, okay, so there was a military link to that. So, a large ESF and that was mostly Commodity Import Program?

TOH: Yes, mostly tied to Commodity Import Program. The foreign exchange part of the CIP program provided the balance-of-payments support and the counterpart local currency served as budget support mostly tied to USAID project.

Q: Private sector development. Was the- would imports tied to any sector or anything or were they just broad- do you recall?

TOH: It was broad until 1989 when we turned part (or most, not sure) of the ESF into targeted support for fertilizer imports.

Q: Well, the importers would have been providing the local currency, right? They would have been buying the- in essence buying the dollars?

TOH: In general, we provided the dollars to the Central Bank. The idea was for the government to make it easier for importers to get import licenses and through Central Bank the foreign exchange to pay for imports. The private sector bought the foreign exchange with the local currency, Kenyan shillings, which was deposited in the special accounts at the Central Bank. The local currency legally belonged to the government. But we agreed to program these funds jointly. A big portion of the local currency went to support USAID projects and other private sector development activities..

Q: Right, okay. So, it really was to liberalize then the whole foreign exchange regime?

TOH: Right.

Q: With the local currency used for private enterprise development, did some of that go into credit programs to the banks, or do you recall? Or some of it budget support to ministries. How would it have been used, do you recall?

TOH: Part of these shillings might have been used to support microenterprise credit and loans to businesses. I remember one of the loans went to an influential Kenyan government official to help finance the Windsor Golf Club. When I went back to Kenya the third time (2001) we tried to clean up the outstanding default loan. I am not sure whether we were able to recover the loan. Our private sector development program, except for the microcredit and the CIP programs, was not well targeted. We kind of followed the “thousand points of light” approach.

Q: Women-owned micro-enterprises, because Kenya had one of the big success stories of microenterprise for women, right? KREP?

TOH: Right, yes. We had a project, I think, that helped KREP, Kenya Rural Enterprise Project. And I still have an account with KREP.

. . . .

Fundamentally, diplomacy and development, though can be complementary, are inherently different in their missions, targets, how success is measured. Diplomacy is about maintaining favorable economic and political relationships abroad; it tends to be short-term orientated and transactional. The mission of development is about saving lives and support for long-term equitable growth and poverty reduction; it tends to be concerned with long-term transformative and sustainable changes. The targets for diplomacy are political leaders and citizens where geostrategic and foreign policy interests are most significant. The targets for development are populations where potential impact on poverty, human suffering, and human development is greatest. The success of diplomacy is measured by the strength of the relationship with the U.S. and support for U.S. political priorities. The success of development is measured by the progress in terms of saving lives, reducing poverty, and enhancing equitable, broad-based economic growth.

There are a lot of interesting items to follow up on here: 1) has the Windsor loan balance been collected or not?; 2) why was this project selected and approved, how much money was involved, etc.? 3) in 1998 Minster of Natural Resources claimed in Parliament that Michuki’s Windsor Golf Hotel and the Belgian Embassy had been irregularly allocated land from Karura Forest, but the Windsor club is not adjacent to the Forest so the allegation does not seem to make sense in that way, but it would be interesting to understand the acquisition of the land. [Note: I have revised this to express skepticism about Lotado’s allegation based on the geography as raised by readers.]

“Africa is a Playground”—Former President Clinton flying around the continent with Jeffrey Epstein and Kevin Spacey for deep thinking on AIDS and “democratization” is not a great look (updated)

So the travels of Jeffrey Epstein in Africa with Bill Clinton have resurfaced as a passing reference in the news with Epstein’s new arrest on child sex trafficking charges dating to the early 2000s.

This is a nonpartisan blog; I was a Republican during Bill Clinton’s time in office and never voted for him, but I am not a member of either party now and I did vote for Hillary over Trump. I was not part of the “vast right wing conspiracy” going after the Clintons in the 1990s, although I knew people who were.

But here we are, confronted with the fact that shortly after leaving the presidency and a few years before my time working for IRI in East Africa, Bill Clinton as a recent ex-President is doing Clinton Foundation business as described in the title to this post.

At the time, Clinton explained:

Jeffrey Epstein: International Moneyman of Mystery,” New York, October 28, 2002:

“Jeffrey is both a highly successful financier and a committed philanthropist with a keen sense of global markets and an in-depth knowledge of twenty-first-century science,” Clinton says through a spokesman. “I especially appreciated his insights and generosity during the recent trip to Africa to work on democratization, empowering the poor, citizen service, and combating HIV/AIDS.”

I certainly recognize that the Clinton Foundation has been a “real” organization that raised a lot of money to fund bona fide charitable programs to help poor people in African countries and elsewhere (in a favorable comparison to Donald Trump’s foundation which seems to have been wholly insubstantial). Nonetheless, this type of judgment and conduct by the former President reeks of foolishly facilitating the exploitation of the real and perceived poverty of “Africa” as a prop to convey “virtue” in reference to the situation of the neediest and least empowered (assuming that Clinton knew nothing of the conduct of Epstein regarding child rape and sex trafficking of the young and economically vulnerable that was discovered in the FBI investigation in 2006 and leading to his original 2007 plea deal and the current New York trafficking prosecution, or Spacey’s conduct toward minors.)

Would Clinton have toured Appalachia or the Mississippi Delta or Hope, Arkansas with Epstein and Spacey?

So what were Epstein’s great ideas for “democratization”? I have not found any explanation. From outside this looks like the very antithesis of democratization, at least as I had in mind in moving to Kenya to join others to do work in that field.

There are so many examples of half-baked, self-serving notions from presumably bored or restless rich people from elsewhere using Africa as a malleable stage. In many cases the intentions are “good” if non-serious or even frivolous, but certainly not always.

An interesting tidbit is the question of why Epstein’s alleged leaked address book (published by the Gawker website) from those early 2000s (as allegedly obtained by the FBI years after his 2008 plea bargain from a former Epstein employee who withheld the evidence during the prosecution and tried to sell it later) had a subheading for Kenya, listing the Muthaiga Club of Nairobi? Did he visit? (The Clinton Foundation does have substantial programming in Kenya which former President Clinton and his other family members have visited subsequently, so it is natural to wonder whether the address book entry could relate to one of the two trips which President Clinton has said Epstein flew him on to Africa. It may be completely unrelated.) I have not had the occasion to visit the Muthaiga Club myself in doing democracy work, and in this century I am well aware that it is not the Happy Valley jumping off spot it started out as in the “Roaring Twenties”. Nonetheless, the imagery is unfortunate.

UPDATE: For a reality check about how little Epstein really had to offer in terms of any genuine scientific or medical credentials and how little of his money he really delivered behind his self-aggrandizing and manipulated reputation as a “philanthropist”, read this investigative report from Jodi Kantor, Mike McIntire and Vanessa Friedman in The New York Times: “Jeffrey Epstein was a sex offender. The powerful welcomed him anyway.”

UPDATE 2: In terms of the general subject matter, here is a recent post from USAID’s Impact Blog: “How USAID is working to prevent sexual misconduct and exploitation“.

UNDP releases 2019 “Multidimensional Poverty Index” (updated)

Updated: For Multidimensional Poverty Index rollout from 2010, see “‘300 million people are suddenly poor”; the Multidimensional Poverty Index and Rwanda“.

For the 2019, read the release and related documents and see the data set at Table 1 here.

The report covers 101 developing countries. As a percentage of population living in “multidimensional poverty” Sub-Saharan African countries fare worse than other regions on average but there are wide variations between countries as well as within countries.

The countries in Sub-Saharan Africa with less than 50% of the population living in multidimensional poverty:

South Africa 6.3

Gabon 14.8

Eswatini 19.2

Sao Tome & Principe 22.1

Congo (Brazzaville) 24.3

Ghana 30.1

Zimbabwe 31.8

Lesotho 33.6

Namibia 38.0

Kenya 38.7

Cameroon 45.3

Cote d’Ivoire 46.1

Togo 48.2

Others in East Africa:

Sudan 52.3

Rwanda 54.4

Uganda 55.4

Tanzania 55.4

Burundi 74.3

Ethiopia 83.5

South Sudan (pre-civil war survey) 91.9 (worst of the 101 listed)

Observation: Some global comparisons for reference might include India 27.9, Myanmar 38.3, Cambodia 37.2, Haiti 41.3, Guatemala 28.9; Honduras 19.3, Mexico 6.3.

As far as other places with terrorist conflict: Nigeria 51.4; Chad 85.7; Burkina Faso 83.8; CAR 79.2; Mali 78.1; DRC 74.0; Mozambique 72.5. Libya was listed as 2.0, Egypt 5.3, Tunisia 1.3 and Algeria 2.1.

Djibouti, Eritrea and Somalia/Somaliland were not included.

USAID Administrator Mark Green and Advisor to the President Ivanka Trump Deliver Remarks on the Women’s Global Development and Prosperity (W-GDP) Initiative | USAID Media Advisory

On Wednesday, July 10, Administrator Mark Green of the U.S. Agency for International Development (USAID) and Ivanka Trump, Advisor to the President, will participate in a discussion co-hosted by USAID and the U.S. Global Leadership Coalition (USGLC). Administrator Green and Advisor Trump will highlight new partnerships and activities of the Women’s Global Development and
— Read on www.usaid.gov/news-information/press-releases/jul-8-2019-usaid-administrator-mark-green-and-advisor-president-ivanka-trump

See Labor Secretary Alex Acosta’s announcement of the program here.

WASHINGTON, DC

“The Trump administration continues to empower women economically with the launch of the Women’s Global Development and Prosperity initiative.

“This initiative aims to benefit 50 million women from 2017 to 2025 through economic empowerment efforts and motivates private sector actors – both abroad and at home – to emphasize the critical role women play in creating prosperity. Economic empowerment of women has a significant effect on global growth as women invest in stable societies and promote a world free of child labor and forced labor.

“The U.S. Department of Labor supports the W-GDP initiative through its efforts to promote the development of in-demand skills among women in the workforce, the identification of entrepreneurship opportunities, and the creation of an empowering environment for working women to flourish in the global economy.

“The Department of Labor works every day to ensure a fair global playing field for workers in the U.S. and around the world by enforcing trade commitments and strengthening labor standards.

“As part of this work, the Department of Labor seeks to ensure that the workplace rights of women are enforced – through policy engagement in both bilateral and multilateral contexts, and through negotiations and enforcement of labor protections under U.S. trade agreements that promote women’s empowerment as workers and as entrepreneurs.”

Agency

Office of the Secretary

Date

February 7, 2019

Release Number

19-252-NAT

Contact: Megan Sweeney

Phone Number

So how is United States global leadership on child sex trafficking? Impartial administration of justice?

Since the 2007 election debacle, pervasive hunger has continued to grow in Kenya, while China and the United States promote and backstop the power of leaders who do not care enough

The population of Kenya has grown roughly 25% since my year “promoting democracy” in 2007-08, from around 40 million to around 50 million. These are loose numbers because they do not reflect anything that is of the highest priority for Kenya’s leaders (and thus those outsiders who promote and underwrite Kenya’s leaders).

Kenya is to conduct a census this year, but the process is politically contentious and corruption makes it hard to carry off undertakings of this nature (another area where the United States seems to be moving toward convergence with Kenya recently). And there is always a new gambit, like “Huduma Namba” that comes along, with the help of Kenya’s politically-connected corporates and foreign corporate foundations, to get in the way of the core functions of the Government of Kenya, like conducting the census.

Unfortunately, although the size of the economy has continued to grow hunger has increased and Kenya remains a “middle income” country where the majority of citizens are inadequately fed. Agricultural performance has actually declined rather than merely grown at an insufficient pace as experienced in many other sectors.

Please take time to read this report from the Daily Nation’ Newsplex: Poor planning and inaction to blame for food insecurity” There are a lot of important facts and figures, but here is a key summary of where things stand:

But despite the decline in the undernourishment rate, which is, however, higher than Africa’s 20 percent, the prevalence of severely food-insecure Kenyans jumped four percentage-points from 32 percent in 2014 to 36 percent in 2017, resulting in Kenya’s ranking as the eighth-worst on the indicator globally.

Yes, Kenya continues to have a problem with employment as a whole and the failure of the various power generation schemes over the years has been one factor for Kenya’s reliance on imports rather than it’s own manufacturing. But the decline of agriculture is the more immediate and inexcusable problem–and would be much easier to address if it were prioritized–as opposed to yet another questionable power generation scheme.

Should the United States support “political confederation” of the East African Community? Can we do so while also supporting democracy?

What are the basics of our current foreign policy in East Africa? According to the State Department’s Bureau of African Affairs there are now “four pillars” to our policy towards Africa:

1) Strengthening Democratic Institutions;

2) Supporting African economic growth and development;

3) Advancing Peace and Security;

4) Promoting Opportunity and Development.

Pillar number one seems quite clear, even if I have to admit that I cannot articulate what difference is intended between numbers two and four. See “The Competitive Advantages of Promoting Democracy and Human Rights in Africa,” by Mark Dieker on the State Department DipNote Blog this month. Dieker is the Director of the Office of African Affairs at the Bureau of Democracy, Human Rights and Labor.

The East African Community as currently constituted with the addition of newly independent but unstable South Sudan has six member states. Arguably Kenya under its corrupt but seemingly stable one party dominant “handshake” government over the past year following annulled then boycotted 2017 elections is about as far along the democracy continuum as any of the six–on balance, the region seems to be experiencing authoritarian consolidation.

EAC Chairman Paul Kagame, who initially took power in the first instance through leading the 1990-1994 invasion from Uganda, engineered a referendum to lift term limits last year and was then re-elected with nearly 99% of the vote over his two closest opponents with less than 1% each, after jailing a more conspicuous challenger and expropriating her family’s resources. Suffice it say that Paul Kagame is one of the world’s more controversial leaders–both loved and hated, praised and feared among Rwandans and among politicians and journalists from other countries. The slogan of the EAC is “one people, one destiny”; the website invites users to memorialize the anniversary of “the genocide against the Tutsi”.

I think we could all agree that Kagame operates Rwanda as a heavily aid-dependent developmental authoritarian one party state “model”. Western diplomats and politicians, aid organizations, educational institutions and companies and foundations are free to participate so long as offer support rather than any form of dissent. Likewise journalists and scholars are welcome to spread the good news. Some see deep real progress from a genocidal baseline and a “cleaner”, “safer” more “orderly” less “corrupt” and more business-friendly “Africa”; some see a cruel dictatorship killing its opponents and silencing critics to hide its own dark past while supporting catastrophic regional wars and looting outside its borders while offering international busybodies and ambitious global operators gratification or absolution from past sins for cash and protection. Whatever one thinks of the relative merits of democracy and developmental authoritarianism, in Rwanda specifically or in East Africa or the world-at-large, I think we can agree that Rwanda is not a model of democracy.

Tanzania has regular elections which are always won by the party that always wins. In the world of East African democracy, it ranks above Kenya in some respects in recent years for avoiding the tribal mobilization and conspicuous corruption-fed election failures that have plagued its neighbor to the north. But again, no actual turnover of power from the ruling party and lately, civil liberties have been taking a conspicuous public beating. In the last election, the opposition took the seemingly desperate or cynical step of backing a candidate who was compromised by his recent expulsion from Government and the ruling CCM–and who having lost has now abandoned his new friends to return to CCM.

In Uganda, Museveni like Moi before him in Kenya, eventually allowed opposition parties to run, but unlike Moi, as not given up unilateral appointment of the election management body and has gone back to the “constitutional” well to lift first term limits, then the presidential age limit. While extrajudicial killings are not as prominent a feature of Ugandan politics as they are in Kenya, that might only be because Museveni counts on beatings and jail terms to send clear messages.

Burundi is under what would be an active ongoing crisis situation if not for the fact that things have gotten too much worse in too many other places for us to keep up. Whatever you think of Nkurunziza and the state of alternatives for Burundi, I do not think we need to argue about whether it is near to consolidated, stable, democracy.

South Sudan has not gotten far enough off the ground to present a serious question.

So under the circumstances it would seem quite counterintuitive to think that a political confederation beyond commercial of the existing six states would enhance rather than forestall hopes for a more a democratic intermediate future in Kenya or Tanzania. Likewise it does not seem to make sense to expect some serious mechanism for real democratic governance on a confederated six-partner basis anytime in the near or intermediate future unless quick breakthroughs are seem in multiple states.

Someday, after democratic transitions in Rwanda and Uganda and an experience of a change of power in Tanzania, after Kiir and Machar are safely under lock and key or have run off with Bashir to Paraguay, this can be revisited in a new light.

1999 Treaty Language TZ, UG, KE:

DETERMINED to strengthen their economic, social, cultural, political, technological and other ties for their fast balanced and sustainable development by the establishment of an East African Community, with an East African Customs Union and a Common Market as transitional stages to and integral parts thereof, subsequently a Monetary Union and ultimately a Political Federation;

In Chapter 23, Article 123

6. The Summit shall initiate the process towards the establishment of a Political Federation of the Partner States by directing the Council to undertake the process.

7. For purposes of paragraph 6 of this Article, the Summit may order a study to be first undertaken by the Council.

In 2011

In the consultations, it became clear that the East African citizens want to be adequately engaged and to have a say in the decisions and policies pursued by the East African Community.

On 20th May, 2017, the EAC Heads of State adopted the Political Confederation as a transitional model of the East African Political Federation.