Coke–Africa’s Largest Employer: BusinessWeek Cover Story

CK Blue Cat Joint

Africa: Coke’s Last Frontier in BusinessWeek.

In Uganda, Red Coke and Blue Pepsi compete in Kampala and across the Ugandan countryside. In Kenya, it seems that all the generally available “brands” are Coke products.

[Update:  See Cola Wars Return to Kenya]

Transparency International Annual Corruption Perception Index released [corrected and updated]

The new Transparency International corruption perception rankings for 2010 have been released today.

For East Africa:

66 Rwanda (4.0 score on a scale of 10) [up from 3.3 for 2009]
116 Ethiopia (2.7) [unchanged]
116 Tanzania (2.7) [up from 2.6]
127 Uganda (2.5) [unchanged]
154 Kenya (2.1) [down from 2.2]
170 Burundi (1.8) [unchanged]
172 Sudan (1.6) [up from 1.5]
178 Somalia (1.1–lowest) [unchanged]

The United States dropped to 22nd with a 7.1 score.

The new report was drawn from surveys taken from January 2009 to September 2010.

For these listed East African countries, there was no demonstrated significant change from 2009 to 2010.

Given its methodology, the CPI is not a tool that is
suitable for trend analysis or for monitoring changes in the
perceived levels of corruption over time for all countries.
Year-to-year changes in a country/territory’s score can
result from a change in the perceptions of a country’s
performance, a change in the ranking provided by original
sources or changes in the methodology resulting from TI’s
efforts to improve the index.
If a country is featured in one or more specific data
sources for both of the last two CPIs (2009 CPI and 2010
CPI), those sources can be used to identify whether there
has been a change in perceived levels of corruption in
that particular country compared to the previous year.
TI has used this approach in 2010 to assess country
progress over the past year and to identify what can be
considered to be a change in perceptions of corruption.
These assessments use two criteria:
(a) there is a year-on-year change of at least 0.3 points in
a country’s CPI score, and
(b) the direction of this change is confirmed by more than
half of the data sources evaluating that country.
Based on these criteria, the following countries showed
an improvement from 2009 to 2010: Bhutan, Chile, Ecuador,
FYR Macedonia, Gambia, Haiti, Jamaica, Kuwait and
Qatar. The following countries showed deterioration from
2009 to 2010: the Czech Republic, Greece, Hungary,
Italy, Madagascar, Niger and the United States.

Uganda, Iran and the Security-Democracy Trade Space?

Secretary of State Clinton noted this week to the African Chiefs of Mission the Africa Bureau’s efforts on wrangling votes for Iran sanctions:

The bureau was enormously helpful in rounding up votes for the sanctions resolution on Iran – Gabon, Nigeria, Uganda, thank you, because it wasn’t easy. I think I talked to President Museveni three times and Johnnie visited him several times. But – end result was we got strong African support for the international sanctions regime. We are building, and in some – many cases, rebuilding collaboration not only along bilateral lines, but multilateral alliances, most especially in our collaboration and engagement with the African Union, because it’s very important that we do more to build up the African Union and other regional entities like the East African Community, which has a real potential for being an engine of economic prosperity. [emphasis added]

Secretary Clinton’s Remarks at African Chiefs of Mission Conference

Tensions continue building over Uganda’s February 2011 elections–see yesterday’s news about opposition plans for a parallel electronic vote count and the Ugandan government’s strident reaction.

Carl LeVan has an excellent discussion of "Democratization and Securitization in Uganda" that I would highly recommend.

The ruling NRM has cleverly adopted the Global War on Terrorism as a political resource. Even before the terrorist bombing in the capital in July 2010, the government began closing political space in the name of national security while it successfully obtained aid commitments from the United States to fight counter-insurgency wars, one of which is against the brutal Lord’s Resistance Army (LRA) in the north.

. . . .

Looking beyond the Pentagon, Washington is clearly aware of Uganda’s governance drift. For example the US announced that will not renew 10 million dollars committed through Millennium Challenge Corporation to help Uganda move from “threshold” status to a full compact (ie, an agreement) for aid. USAID’s plans call for strengthening democratic institutions, enhancing political competition, and improving parliamentary capacity for oversight through partnerships with civil society. Unfortunately USAID faces an uphill battle, with no increases in the lines funding for either for civil society programs or for its good governance in Uganda, and cuts are planned for programs relating to “political competition and consensus building.” Even aid to fight transnational crime is slated for cuts.

In addition to all the regional security issues involving Somalia, Sudan, Congo and the Lord’s Resistance Army, the Iran sanctions issue adds another interesting twist. I noted back in May that Assistant Secretary Carson and AFRICOM Commander General Ward were seeking Museveni’s support on Iran sanctions during a visit to Kampala, as well as pushing for Museveni to relinquish unilateral control of the Electoral Commission. The U.S. succeeded in persuading Uganda to support sanctions, but did not secure action on the Electoral Commission. Both worthy goals, but is there a trade off?

It is also interesting to note a report that Uganda has now been working with Iran to create a joint bank as a mechanism to allow Uganda to obtain access to $46M in pledged Iranian credits that have impeded by the sanctions:

[A] memo prepared by the ministry for Parliament’s public accounts committee, in response to an audit query, said that sanctions had complicated the money transfer. "The ministry has followed up the implementation of this line of credit. However, it has faced challenges, especially following the imposition of sanctions on Iran," said the memo.

"In a bid to overcome the difficulty in transferring funds to and from Iran because of sanctions and to promote investment and trade, the two countries agreed on the establishment of a bank as a joint venture as the best way forward," it said.

Open Society Report–Uganda Not Prepared for Free Election; U.S. options?

From AFP in the Daily Nation:

Uganda’s election panel has failed to establish conditions required to hold a free and fair vote less than five months before a scheduled general election, according to report seen by AFP Wednesday.

Intimidation of the opposition and media censorship both remain pervasive and the ruling party uses government structures for political purposes, says the report commissioned by Open Society Initiative for eastern Africa, a pro-democracy group linked to American billionaire George Soros.

OSIEA hired as lead author the UN’s Special Rapporteur on the Situation of Human Rights defenders, Margaret Sekaggya, though the document is not a UN report.

“The electoral commission’s failure to address constant harassment, arrests and intimidation which political groups… are subjected to by police and Kiboko (stick wielding) squads has severely undermined its credibility,” the report says.

“The commission must also address the denial of freedom of expression and speech, especially the domination of broadcast media by the government and ruling party.”

The report states it is too late for Uganda to establish ground work for a free vote, which will likely be held in late February.

This obviously presents a difficult situation for U.S. policy makers. We are training Somali soldiers in Uganda in an environment of heightened tension following the World Cup bombings in Kampala, as well as training the Ugandan military and supporting their deployment in Somalia in the AMISOM mission.

If we know that the election is simply not going to be fully legitimate up front, what are our options? We could, for instance, support Museveni in the run up to the election on the theory that since he is going to stay in power anyway, it is better to help him make it look good to promote stability. And if violence breaks out, we can support nominal power sharing of some type to placate the opposition elites. We could bring open pressure now and try to broker some type of pre-election agreement to change the environment at least to some extent–or do something similar quietly. We could stay neutral and support the process as best we can without a specific agenda and maximize our position to contribute to problem-solving in the aftermath as honest brokers. Interesting choices.

Friday Reading

Texas in Africa has the run down on today’s release of the UN human rights mapping report on the DRC.

Of special interest for East Africa is how this plays out in regard to Museveni now, aside from Rwanda and Burundi. Museveni has recently spoken of withdrawing from support of AMISOM in reaction to the criticism–while his offer to of tens of thousands of additional troops has remained outstanding. Kenya has been calling for more troops for AMISOM for months, and has made noise about changing the arrangements to send its own forces. Kenya’s Foreign Minister Wetangula has said that the international community should stop wasting vast amounts on the anti-piracy maritime efforts and spend the money for "national building" with the TFG, which includes the ramping up of AMISOM. Kenya watchers will remember that Wetangula was one of Kibaki’s core appointments of the key ministries following the 2007 elections prior to the Kofi Annan-led mediation between PNU and ODM. PNU has had some ties with Museveni’s NRM.

In Kenya, the human rights community is deeply offended by the renditions of alleged terrorism suspects to Uganda without due process, while the government has leaked a report showing planned attacks in Nairobi in conjunction with the Kampala bombing during the World Cup. At a time when Kenya needs to focus on the hard work of implementation of the new constitution, the neighborhood keeps getting messier.

On a lighter note, check out the backpackers guide to Somaliland on the Medeshivalley.com blog.

Kenyan Justice Minister claims he did not know of renditions to Uganda, calls it “a failure of institutions”

Another surprising statement from Mutula Kilonzo:

NAIROBI (Reuters) – Kenya’s justice minister said the rendition of Kenyans to Uganda to face charges of involvement in bomb attacks in Kampala should not have occurred and that parts of the judicial system had failed.
Mutula Kilonzo comment’s to Reuters in an interview late on Wednesday supported the view of two high court judges who have criticised the transfer of several suspects to Uganda.

"It is a failure of institutions because it should not happen. The judge in many respects is dead right because if you believe a Kenyan citizen has committed an offence, put him through the process," Kilonzo said late on Wednesday.

Judge Mohamed Wasarme said on Tuesday the transfers flouted the rights of the Kenyan citizens.

On Thursday a high court judge labelled the arrest, detention and removal of one of the Kenyan suspects as illegal.

A total of 38 people, including Ugandans, Kenyans and Somalis, have been charged with terrorism over the twin bomb blasts in the Ugandan capital that ripped through crowds watching the World Cup final in July.

The Kenya Human Rights Commission, a civil society group, says 13 Kenyans were illegally transferred to Uganda.
. . . .
Reprieve, a UK-based legal rights group, said worrying new patterns of counter-terrorism were emerging in east Africa.
"If it’s true Kilonzo was unaware of the renditions, then what we’re talking about is a rogue police force … that operates outside all chains of command," said Clara Gutteridge, a deputy legal director at Reprieve.

Earlier in the week we have seen Kilonzo back down on last week’s statement that the ICC was no longer needed to prosecute Kenya’s Post Election Violence since Kenya had passed a new constitution that would reform the police and courts. Hmm. . .

U.S. AFRICOM Troops to Congo? To attack the LRA?

Wired has a piece on their Danger Room blog suggesting “why the US should send troops (and spooks)” to the Democratic Republic of the Congo, to pursue the Lords Resistance Army, on the theory that what is missing is military capability and we are the ones that have it:

Africom is not designed to mount Afghanistan-size wars. It’s all about brief, targeted intervention, influence and the Pentagon’s new favorite word, “partnership.” “Admittedly, this is an indirect and long-term approach,” Maj. Gen. William Garrett, then-commander of Africom’s land troops, told me earlier this year. Recently, U.S. Special Forces helped form a new “model” Congolese army battalion. And earlier this month in Kinshasa, Congo’s sprawling capital, a hundred U.S. Army doctors and medics teamed up with 250 Congolese personnel for a couple weeks of training. “The U.S. has determined it wants to be more involved in Africa,” explained Army Lt. Col. Todd Johnston, the exercise commander.

So why not get involved where it can really help? That’s what advocates of U.S. action in Congo are asking. After all, this is a mineral-rich country that takes millions and millions in foreign donations, mostly from America. So find the LRA, and kill or capture the chiefs before they make an already desperate country even worse.

But do it the Africom way. No massive troop deployment. No occupation. No drawn-out conflict. No headline news in the U.S. Just a few spooks, a few commandos, some airplanes and choppers and the permission of Congolese president Joseph Kabila. By American military standards, it wouldn’t take much. But it would make life a lot safer for millions of people in Central Africa — and might help reduce the cost to the world of keeping Congo on life support. Plus, it could show the way forward for a smarter, less expensive American way of war.

There are just two problems. First, the U.S. military has tried taking out the LRA before, albeit indirectly — and failed. Last year, Ugandan and U.N. forces acting on U.S.-provided intelligence launched an offensive aimed at taking out LRA leadership. But the rebels escaped … and killed hundreds of civilians as they hacked their way deeper into the forest.

Second, despite a growing body of legislation meant to define America’s role in Congo’s conflicts, at the moment there’s no clear U.S. policy regarding Congo and no prospect of one emerging anytime soon. The U.S. military might be the best solution to Congo’s LRA problem, but it’s a solution lacking one key component: political will.

It’s a bit hard for me to understand how you can present an argument for sending US troops into the Congo, with the permission of President Joseph Kabila, to hunt down the LRA, without any serious discussion of the ramifications of this in relation to all of the other conflicts and issues in Eastern Congo involving foreign-supported militias, ethnic groups, etc. Or how you address the issues involving the fact that the LRA ranges across four different countries and originates in Uganda rather than the DRC. If you don’t cross borders, you fail and you have to stay indefinitely in the DRC to have any hope of keeping the LRA elsewhere–do you follow them into Sudan, for instance, based on permission from Joseph Kabila? Do we have US troops fighting in Uganda during the February elections?

Conceptually, I fully appreciate the impulse to act directly instead of just through training others to try to put a stop to the LRA–however, I just don’t buy this as a legitimate assessment. Part of the reason is that reading carefully, you see that what Axe is describing is not just  a lack of capability by the DRC, but also a lack of will. This makes the whole thing a bit disingenuous.

Robert Kaplan waxed poetic in the Atlantic back in 2007 at the inception of AFRICOM about the nature of the combatant command as a new “under one roof” State Department, USAID and military entity for “nation building”. Based on the GAO report issued in July on the status of AFRICOM (h/t Dr. Carl LeVan) any such ambitions are at an embryonic stage as AFRICOM has yet to formalize its own basic planning documents and at least at that time still had not really worked out how to handle the role of the Combined Joint Task Force–Horn of Africa in Djibouti, which is the actual on-continent U.S. base. Likewise, AFRICOM as of July had only 29 people at headquarters from State and USAID and did not use any methodology to actually measure or evaluate its various programs in civil affairs, rule of law, etc., etc., which might or might not complement other things done by others from the U.S. government.

Does this piece in Wired represent the “tip of the spear” in the search for an alternative role for AFRICOM–more “rapid strike force” and less “nation building”?

When someone floats an idea and says “plus, it could show the way forward for a smarter, less expensive American way of war”, start by being afraid for your children and your wallet. And suggest that they may want to experiment on this in Afghanistan and/or Iraq first.

Development Challenges: Ugandan Elections and Hunger in NE Kenya

Uganda ElectionsHere is an interesting report regarding the various NGO efforts to the potential violence that is a growing concern in relation to Uganda’s upcoming February 2011 elections. Concerns expressed include questions about excessively expensive or wasteful projects, the need to distinguish between important and effective groups and those “which are just parasitic”, and the degree to which donors should dictate the use of funds and the extent to which this may influence the political process.

One project singled out for scrutiny is a soccer tournament “to reconcile the warring political parties” organized by the Global Peace Festival Foundation, an organization launched by Prof. Apollo Nsibambi, the prime minister, on August 30.

In total, the two football competitions will cost GPFF Shs 610 million–enough money for a strong opposition party to run a successful compaign. Moreover, experts say that the majority of NGO funds are spent on workshops, furnished offices, and workers’ remuneration, leaving very little for the real projects.

According to the NGO registration board, there are over 8500 civil society organizations in Uganda and of these over 1000 are aimed at preventing violence or promoting election integrity.

Northeastern Kenya–high levels of child malnutrition continue to exist in spite of better rains recently according the the World Food Program. The previous drought reduced herds, so pastoralists continue to lack meat, milk and blood. Likewise, general underdevelopment from lack of health care facitlities, lack of roads and transportation, and lack of education (mothers’ illiteracy contributes to lack of knowledge about proper nutrition for children). A report today on IRIN entitled “Instability Without Borders” explains that the spillover effects from instability and al-Shabaab control of bordering areas of Somalia has driven some aid organizations out and greatly driven up costs for others, reducing the ability for service delivery to address these problems. While the border is porous to the flow of small arms and raids, it appears from the report that Kenya’s police high police presence has helped prevent major escalations on the Kenyan side of the border, the threat from previous cross-border kidnappings and raids, along with the general insecurity and prevalence of arms has resulted in a daily 12-hour curfew and a standard requirement that all travel include armed escort and has led many organizations to park their own vehicles and only travel in hired transport.

Record inflows to “Frontier Africa Funds” reflect continuing “mainstreaming” of global investment in Africa

Reuters reported record inflows of $660M into African regional equity funds in the past 12 months, with positive inflows in 51 of the 52 weeks based on a report from EPRF Global in Washington. Not large numbers on a global scale, but definite confirmation of the arrival of Africa into the mainstream of emerging markets equity investment.

Certainly this number is much smaller than aggregate aid flows of various types, but it also represents only public equity funds and does not capture the scope of overall international investment, particularly private equity. How this fits in to the overall development picture is a worthy subject of study. It surely creates opportunities for growth and reflects some underlying optimism in future governance and stability at least in some major markets.

One question of course is competition among developed countries for deals in a growing African market. Here is a fascinating story from Uganda’s “Independent” entitled “German, US, UK envoys fight over EC [Electoral Commission] tender”.

Democracy and Competing Objectives: “We need you to back us up”

I also had a senior military officer, a general, say to me, “It really doesn’t help us when you all don’t come out and criticize sort of half-hearted democratic elections. You tell us ‘Democracy, Democracy’; then you accept when we don’t have fully up to a minimal level of standard, because you’ve got presumably some other competing objective there that mitigates against that, because otherwise we don’t understand the point of continuing to strive for that standard. We need you to back us up and to back up our societies.”

This was Kate Almquist, now Senior Fellow for Security and Development at the Africa Center for Strategic Studies, at a Military Strategy Forum on AFRICOM at CSIS in July. Ms. Almquist was Assistant Director for Africa at USAID from May 2007 to 2009. She is speaking on a panel, relating her recent discussions with senior African military leaders at the Africa Center in response to a question about “competing objectives” regarding U.S. “strategic partners” including Rwanda, Uganda and Ethiopia, and “how do we know U.S. military support is not increasing autocratic tendencies and not increasing democratic space?”

Since this event we’ve had a substandard election season in Rwanda–as well as the leak of a draft UN report using the term genocide in reference to Rwandan activity in the DRC. In Uganda, Museveni has announced formally that he is running for re-election, while continuing to refuse action to relinquish the unilateral appointment of the Electoral Commission. At the same time, Rwanda is threatening to pull its “peacekeeping” soldiers out of Darfur, and Uganda is offering an additional 10,000 soldiers to be “peacekeepers” in Somalia. The conundrums continue.

Here is a link to the audio and video from CSIS (also available on podcast). This discussion starts at 32:50 in the panel following General Ward’s speech.