Tag Archives: trade

The Foreign Policy establishment will continue to hold Beltway confabs and hearings about “Africa policy” but the author of “The Flight 93 Election” is running Policy Planning at State and Congress has neutered itself.

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I think it is probably a sucker’s game to do too much mastication around the idea of what Trump II may do in or in relation to Africa by reference to the Kennedy through Biden 1961-2025 “A.I.D./USAID Era” of African relations.

Take a moment to read Michael Anton’s famous opinion piece in the Claremont Review of Books from July 2016 entitled “The Flight 93 Election”. This is the very same Michael Anton who is the Trump II Director of Policy Planning at the State Department.

As far as I am concerned the wood chippering of USAID, programs and especially people, is best understood in the intellectual “Cold Civil War” environment as a subspecies of “Defunding the Left” (something that I had some involvement in as a College Republican leader back in the”Reagan Revolution” days) rather than a more specific foreign policy pivot. The impact on Africa, Africans, and relations with African states specifically is just collateral damage in “The Third World” in Flight 93 terms.

Probably better to study the Eisenhower Administration—when decolonization was close enough to warrant standing up a separate Africa Bureau in the State Department but many in Congress addressing foreign policy represented segregated Jim Crow States and districts and the question of civil rights for Black Americans generally was much in contest. And perhaps a counterfactual to identify what a Goldwater Administration Africa policy might have been. [Recognizing that Eisenhower was seen as a proto-Communist by many of the ideological godfathers of the current Trump II core thought leaders.]

The most important American regarding Africa policy is likely Elon (“We’ll Coup Who We Want To“) Musk, and ProPublica has an expose about how aggressively the new Trump II State Department leaned on Gambia for Musk’s Starlink business.

Musk has used his X megaphone (the repurposed Twitter) to spread accusations of a genocide against white Afrikaners in snyc with the rest of the Trump Administration declaring same as the basis for the new program to designate Afrikaners as “refugees” and resettle them in the US. In the context of “The Flight 93 Election” view of seeing “Third World” immigration as the most daunting failure of the pre-Trump Conservative Movement and pre-Trump Republican Party as well as the ultimate goal of the Left “enemy within”, it makes perfect sense to affirmatively bring in Afrikaners while expelling “non-Western” refugees impacted by wars or terrorism elsewhere in Africa or “The Third World”.

Beyond the barriers of “culture” and “development” to finding time out from the Cold Civil War to develop an actual foreign policy strategy for Africa, the Trump II Administration will not be able to take this on without having first a strategy for China. I do not expect that four years will be long enough for Trump to make many of the necessary choices. So far the most important fork in the road in the Trump II China policy (and foreign policy writ large) is the announcement by Treasury Secretary Bessent that the US does not seek to decouple with China.

In the meantime, gutting the State Department means that more of the burden of diplomacy as well as development will be left to AFRICOM by default. Of course the Trump policy of refocusing the Pentagon on “warfighting” by a more lethal warrior class and enhanced technology cuts away from the likelihood that AFRICOM as a Combatant Command will be more rather than less dexterous and ultimately successful at diplomacy than it has been since starting to take up that burden at inception in 2008 as what the G.W. Bush Administration conceived as a “different kind of Combatant Command.”

Congress has elected to defer wholly to Trump II on Africa policy so far as the major changes have been effectuated with the demise of USAID. The Senate Foreign Relations Committee didn’t even hold a hearing (!) on the demise of USAID and the hearing in the House was not of any legal relevance in spite of the preponderance of the testimony debunking the basic rationale of Musk for the “woodchippering”.

Last week the Senate Committee solicited the thoughts of Joshua Meservy of the Hudson Institute, previously Heritage, and Michelle Gavin of the Council of Foreign Relations on “East Africa & The Horn: At a Turning Point or Breaking Point” but again, no real indication that Congress will do anything to get involved as opposed to deferring entirely to Trump II.

While some associated with the Trump II administration pay lip service to an approach of “trade not aid” in the aftermath of the death of aid, there is no evidence of comparative substance to the words. The UAE is the latest country after China to completely dwarf U.S. current and planned financial investment in Africa and like China provides a counter to previous U.S. expressed values on governance and the rule of law, and not just in relation to war and mineral smuggling in Sudan and Central Africa.

See “UAE Pouring Money into Africa, Seeking Resources Resources and Power” in the New York Times on May 17:

“In 2022 and 2023, the Emirates announced a total of $97 billion in investments in Africa — three times China’s total, according to fDi Markets, a database of foreign investments. U.S. investment in 2023 was about $10 billion.”

“Meanwhile, Mr. Trump has fast-tracked America’s exit from Africa, ending billions of dollars in funding, dismantling the U.S. Agency for International Development and ending all contributions to the African Development Bank. The State Department’s reorganization plan also calls for the elimination of most operations in the region.”

Birther John Corsi in Kenya to investigate Senator Obama
Jerome Corsi, bestselling “Obamanation” and “Where’s The Birth Certificate” author in Nairobi during early Birtherism era.

New U.S.-Kenya links as election approaches

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The Association of Kenyan Diaspora Organizations will be holding its annual conference in Seattle this weekend (August 27-28), including an appearance by IEBC Chairman Wafula Chebukati who will discuss the status of diaspora voting for the 2022 General Election. See my last post which discusses the diaspora voting issue: “Kenya’s IEBC ‘races’ to fulfill mandate from 2010 Constitution for lawful 2022 general election; behind again after 2013 and 2017 failures“.

“Republican Senators urge Biden to prioritize Kenya-U.S. trade deal” Business Daily, August 25, 2021

“BBI Ruling Leaves Kenya at a Crossroads” blog post by Michelle Gavin at Council on Foreign Relations “Africa in Transition“. [Ed. note: Michelle Gavin was also handling the Africa program at CFR during the fraudulent 2007 election and ensuing crisis.  Non-resident fellow Jendayi Frazer, of course, was Asst. Secretary of State during the election and crisis.  Between the two there is unusually intimate institutional memory for the Council on Foreign Relations, along with the related competing interests associated with the connections.]

In the World Politics Review weekly Africa Watch newsletter, Chris Olaoluwa Ogunmodede argues that “A Court Ruling Just Upended Kenya’s Political Landscape“.

Growers Alliance Coffee from Kenya Diaspora Trade: Growers Alliance Coffee from Kenya

Here is the link to read about and order from Growers Alliance Coffee from my old friends Martin and Purity in St. Augustine, Florida.

Kenya-USA Bilateral Trade Talks: Ambassador McCarter confirms “cat is out of the bag” on Bloomberg scoop on negotiations for Free Trade Agreement

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U.S., Kenya to start trade talks seen as template for Africa

Key takeaway is that Bloomberg reports that trade talks have been underway between the United States and Kenya, with the Kenyan officials confirming progress and the US expecting to publicize status in conjunction with Uhuru Kenyatta visit to Washington next week.

The East African nation’s cabinet will probably approve discussions with the U.S. this week, Kamau [Permanent Secretary] said.

Kenya is America’s 11th largest trading partner on the continent and the sixth biggest in sub-Saharan Africa, with total trade between the two countries at $1.17 billion in 2018.

The U.S. currently has one free-trade agreement on the African continent — with Morocco. U.S. Assistant Secretary of State for African Affairs Tibor Nagy said in August that the nation was pursuing a trade deal with an unidentified country in sub-Saharan Africa, adding that it would be used as a model for others when AGOA expires.

The Trump Administration wants to use an agreement with Kenya as a template for other bilateral agreements in region, as opposed to the African Union’s expressed preference for a multilateral pact in the context of the new African Continental Free Trade Area. It is also somewhat unclear as to how this would integrate with the longstanding US support for the federation process among the members of the East African Community.

Update:

https://twitter.com/statehousekenya/status/1222906552526356480?s=21

Ten years into the major multinational counter piracy missions off the Horn of Africa, are China and India paying their fair share?

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Operation Atalanta of the European Union (EUNAVFOR) commenced in December 2008 and was joined by the Combined Maritime Forces (CMF) Combined Task Force for counter piracy force (CTF-151) in 2009.

The Combined Maritime Forces are a multinational security venture based in Bahrain, with U.S. and U.K. top command.

  • 33 member nations: Australia, Bahrain, Belgium, Brazil, Canada, Denmark, France, Germany, Greece, Iraq, Italy, Japan, Jordan, Republic of Korea, Kuwait, Malaysia, The Netherlands,  New Zealand, Norway, Pakistan, The Philippines, Portugal, Qatar, Saudi Arabia, Seychelles, Singapore, Spain, Thailand, Turkey, UAE, United Kingdom, United States and Yemen.

China and India do send ships independently to cooperate in the CTF-151 mission. But given the volume of Chinese and Indian trade and shipping at this point, are they bearing their fair share of the cost?

Piracy has been radically reduced in recent years off Somalia and in the bab-el-Mandeb, Gulf of Aden region patrolled by CTF-151.

For the United States to solve the “free rider” problem for trade competitors, especially the PRC, the best approach it seems to me is to increase our own trade and investment in East Africa, as well as globally where we have facilitated the rise of the PRC as a trading power through free global maritime security, direct and indirect foreign investment, lax cybersecurity and intellectual property protections, etc.

While it has been our policy since my childhood to facilitate the rise of China, although under slightly varying rationales at different times over the years, President Trump has sometimes, along with a few of his advisors, expressed a desire to change this policy and our formal National Security Policy calls for recognition of “great power competition” as the superseding longterm priority to the ongoing war with al-Queda and progeny or similar groups.

National Security Advisor Bolton announced a “New Africa Policy” suggesting some rethinking back in December, but it seems to have been largely overcome by events since then. Bolton’s “back to the 80’s” focus on Cuba and Nicaragua to add to the standoff involving Venezuela, along with primary redirection of focus to the permanent “shadow war” with Iran, takes bandwidth, already constrained, away from African issues. Meanwhile rapidly unfolding events in Sudan, Algeria, Libya and Egypt at a time of increased uncertainty in much of Central Africa with limited clear U.S. engagement suggest that we are very much in flux about whether we are serious about recalibrating our overall reticence to compete in Africa.

Powerful forces of bureaucratic inertia and domestic American politics suggest that we are likely to continue deficit spending to help secure Chinese trade with Africa without get much further toward making it pay for itself at least through the 2020 election.

As of 2017, US exports to Sub-Saharan Africa were $ 11.7B., or somewhat less than the cost of an aircraft carrier or two amphibious assault carriers, with a trade deficit of $3B. Chinese exports were $37.4B with imports of $18.5B. (India had exports of $13.1B and imports of $19.7B.) The Chinese trade surplus with Sub-Saharan Africa approximately equals the annual U.S. Navy Shipbuilding and Conversion budget.

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

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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.

Candy and Communists for Kenya: as Kenyatta’s Jubilee “deepens” partnership with Communist Party of China, Mars’ Wrigley East Africa to sell “affordable Skittles”

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“Affordable Skittles” for the “kadogo market” as Wrigley offers may not quite match Kentucky Fried Chicken in Nairobi, but perhaps the biggest news since Burger King arrived?

And yes that event at State House celebrating the deeping partnership of Jubilee and the Communist Party of China yesterday has turned heads. I think a lot of Americans had not been aware of this relationship. Obviously it makes sense in carrying forward the spirit of KANU of Kenyatta and Moi and their understudies. Kenya always labeled itself a “democracy” whether one party rule was formal or informal. China, of course, is also “democratic” with numerous parties other than the Communist Party.

Caption from Presidential Communications operation: “Today we agreed to deepen our relationship with the The Communist Party of China in order to enhance Jubilee party management and democracy.” The Presidency

At a micro level I would take umbrage at the blatant use of State resources for Jubilee Party business, but since the Party was launched at State House in the first place and the donors supporting “Western-style” democracy and the “rule of law” and such were not willing to say “boo”–nor the IEBC nor the Office of the Registrar of Political Parties, there is never a reason to be surprised at this point. We reap as we sow.

ICYMI: An important read from Tristan McConnell in The Atlantic: A Deadly Election Season in Kenya – The Killings Suggest a State that is More Predator than Protector.

And here is the story from Moroccan World News of how the Chinese connected the African Unions computer servers at the Addis headquarters directly to Chinese servers in Shanghai.

Happy International Tea Day

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politics interlude . . . (of course the image of a worker on a tea plantation can be politically freighted . . .)

“Let them drink bubbles . . .” The Nairobi Curse revisited in a time of hunger

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Back in March 2010–well before the last widespread famine in 2011–I wrote a piece here called “The Nairobi Curse” suggesting an analogy between the role of Nairobi in Kenya’s overall political and economic development and “the resource curse” faced by those countries prized by outsiders for oil, for example.

With famine being reprised I was reminded of the “Nairobi Curse”  when I noticed on the “KenyaBuzz” Nairobi entertainment and happenings newsletter a charming little story, “Nairobi’s Newest Wine Shop Delivers In A Different Kind Of Way”, promoting “Wine and Bubbles”, a French couples’ couple of Nairobi stores selling French wine.  The expat Nairobian explained that he had hoped to grow vineyards in Kenya but learned on moving from France that the climate was not conducive so he was selling French wine instead.

The growth market of course is introducing wine tastes to what is invariably called the “Kenyan Middle Class”–basically the third tier wealthy Kenyan of the Nairobi professional/managerial class.  The sort of people who would be upper middle class in a much more broadly and deeply prosperous country where most people had enough to eat with a per capita income several times that of Kenya’s.

Here is my original post:

This is Kenya’s version of “the oil curse” or “the resource curse”.

 

Nairobi is the place to be in Sub-Saharan Africa (and outside of South Africa) for international meetings and conferences.  It is a relatively comfortable place to live for middle class or wealthy Westerners, or young aid workers.  An international city with a certain level of cosmopolitanism, yet of manageable size and scope relative to so many burgeoning cities of the less developed “South”.  A headquarters for two UN agencies.  A diplomatic critical mass, with lots of representation from all sorts of countries around the world that have little obvious presence in Africa, but also a crossroads for representation of everyone playing for a major piece of the pie (Iran, Libya, China, India, the Gulf States–as well as obviously the US and Europe).  And you can go on business, and then take a safari on the side.

 

From the US, soldiers go to Djibouti (the Combined Joint Task Force-Horn of Africa, at Camp Lemonier) while diplomats go to Nairobi.  The US runs its Somali diplomacy from the Embassy to Kenya rather than Djibouti which would be the more obvious place on paper.  Likewise, Somali politicians tend to live much of the time in Nairobi.   Nairobi is the place to invest cash generated in Somalia.

Nairobi is the “back office”, and in some cases the only office, for much of relatively huge amount of US aid-related effort for Southern Sudan, as well as that from other countries.

 

Nairobi has something like 8% of the Kenyan population, and perhaps 60% of the GDP (don’t let anyone tell you they know any of these figures too precisely).  Perhaps 50-60 percent of the population lives in informal settlements (“slums”) whereas the other half lives as “the other half”.  Most national level Kenyan politicians holding office live primarily in Nairobi (although they may have homes in a constituency they represent in Parliament as well).

 

When I was the East Africa Director, based in Nairobi, for IRI (where our much bigger Sudan program was also  headquartered) as an American I felt that my government at that time (2007-2008) was falling into the trap of recreating a Cold War paradigm for our international relations by looking around through our “War on Terrorism” telescope.  And that in Kenya there were a lot of international interests that valued stability over reforms for reasons that related more to the current role of Nairobi than the long term interests of Kenyan development.

 

Certainly Nairobi is a resource that has great value–as does oil, for instance–it’s just a question of whether Kenyans can find a way to use it to the broad advantage of the nation or whether it will continue to be exploited to disproportionately benefit the most powerful.  Including being used to help keep them in power when more Kenyans want democratic change.

 

Just this past week Kenya hosted an IGAD meeting on Sudan–and flouted its obligations as a party to the Rome Treaty on the ICC by inviting President Bashir of Sudan while under indictment.  Meanwhile the ICC is considering whether to allow formal  investigation of key Kenyan leaders for the post-election violence from 2007-08.  But Nairobi is such a great place to have these conferences . . . and Sudan is so important (Khartoum is no Nairobi, but it has oil).

How will the Iran nuclear deal play out in East Africa?

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I wish I had a clear sense of how this might develop but I don’t.  It seems to me that there may be several areas of impact over the next few years:

+Diplomatic leverage of Museveni, Kenyatta, Kigame et al vis-a-vis the United States will be reduced as one of the main US “asks”–UN votes to maintain nuclear-related sanctions against Iran–drops away.

+While I do not foresee the current US administration raising expectations for other US priorities from these East African leaders, the next US administration might feel some greater freedom to address “the democratic recession,” declining press freedom, and other issues on the formal US policy list.

+Oil prices:  if a lot more Iranian oil gets to market both in the near term from the immediate impact of lifting sanctions and the longer term from the increase in capacity associated with ramped up foreign investment, the prospects for oil production in Uganda and Kenya will be impacted, especially as related to the 2021-22 election cycle.

+Iran will reassume a stronger role in trade and finance in the region and thus compete more strongly with Israel, Saudi Arabia and the Gulf States.

+Iran will presumably increase its regional naval presence.

+The fall of the Gaddafi regime in Libya and subsequent sad state of affairs in that country reduced one major “petrocash” player in East African politics; an Iran less cash-strapped by UN sanctions might have aspirations to finance East African politicians aside from its espionage/security/terrorism enagement.

New Developments on Iran’s Geopolitcal Efforts in Africa–another challenge for democracy?

Uganda, Iran and the Security-Democracy Trade Space?

High Level  U.S. Delegation Carries Requests to Museveni on Fair Elections and Iran Sanctions

Salim Lone book talk and today’s public radio stories

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Salim Lone last week at Chatham House, London, speaking on Kenya’s Pre- and Post-Election Challenges: The End of the Kibaki-Raila Decade ahead of the publication of his book, War and Peace in Kenya.

From NPR’s All Things Considered today, “Kenya’s Free Schools Bring a Torrent of Students”:

A study published by Britain’s Sussex University in 2007 found that Kenya’s free schools were “a matter of political expediency … not adequately planned and resourced,” and as a result, there have actually been more dropouts and a falling quality of education.

Conversely, the number of private schools has increased tenfold as parents look for alternatives to overcrowded classrooms.

The situation is similar in neighboring Tanzania, which did away with school fees a year earlier in 2002. The student population also skyrocketed, leading to packed classrooms, book shortages, overused toilets, a teacher scarcity and an increase in paddling students to keep order.

And here is a good “Wealth and Poverty” feature from American Public Radio’s Marketplace on an international folk art market in Santa Fe, New Mexico with craftspeople from a number of African countries participating.  Interesting discussion of globalization and the impact of imports of used clothing.