201311 kenya

at KENYA50 KENYA AT 50 is a supplement to THE AFRICA REPORT N째56

Not to be sold separately

HISTORY | PEOPLE | POLITICS | ECONOMY | CULTURE

The promise of a New East Nairobi looks to its region and across the Indian Ocean

EDITORIAL

BY PARSELELO KANTAI

CONTENTS

Project Kenya and the golden jubilee

3 EDITORIAL 4 SCENARIOS FOR 2030 Reimagining a nation 8 OPINION Martin Kimani on how Kenya is looking East

K

10 MEMOIR

enya’s golden jubilee independence anniversary celebrations on 12 December this year will be unique in at least one respect. It will be the first time in the country’s history when Jamhuri Day is led by a president with no direct memory of colonialism. Born in 1961, President Uhuru Kenyatta was an infant when the Kenyan flag went up for the first time. His deputy, William Ruto, was not yet born. Of the millions who will mark the event, only slightly more than a million of them countrywide would have any memory of the first Jamhuri Day. There is much to celebrate. After decades of misrule, the promulgation of a new constitution in 2010 ushered in a new democratic dispensation.

Similarly, the economic stagnation of the 1980s and 1990s gave way to a decade of sustained economic growth. The International Monetary Fund predicts that gross domestic product will increase by 6.2% in 2014.

Regional trade and integration have deepened since the revival of the East African Community more than a decade ago. Kenyans now trade more with their regional counterparts than with anybody else. New oil and mining projects promise to raise the government’s revenue.

Just as important, the demands for a more equitable sharing of national resources and for the dispersal of executive power is guaranteed under a new devolved county governance system. However, the nation turns 50 at a time when the very idea of nationhood is deeply threatened.

Insecurity is rife and there are unprecedented levels of ethnic suspicion.

After Kenyans overwhelmingly voted to end four decades of the Kenya African National Union’s autocratic

Celebrating 50 years of impunity by Rasna Warah 12 LITERATURE

Binyavanga Wainaina on Kenyan writers’ global reach

COVER CREDIT: ANTHONY ASAEL/ART IN ALL OF US/CORBIS

14 INTERVIEW Former prime minister Raila Amolo Odinga 16 OPINION Bitange Ndemo on Kenya’s crucible of technology and business 20 BUSINESS Building an East African commercial hub 26 LAST WORD Abdi Latif Dahir

S U P P L E M E N T TO T H E A F R I C A R E P O R T

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rule in 2002, two consecutive elections have sharply polarised the political elite and divided the nation along ethnic lines, as witnessed by the 2007-2008 post-election violence.

Moreover, economic growth has failed to deliver on the promises made at independence. Kenya’s income disparities are high, and many regions have been marginalised in terms of infrastructure and service provision. For the generations that came of age in independent Kenya, there is a sense of two Kenyas – one of privileges and entitlements and the other of grinding poverty.

But it is the problems facing the current leadership – the court cases at the International Criminal Court – that perhaps reveal more about the fundamental issue of elite impunity the country faces. At independence, ‘Project Kenya’ was a euphoric work in progress – a nation would be forged out of the shared history of colonial oppression.

It was in many ways meant to be a transcendent project, transforming diverse ethnic groups into a single national unit. That dream was betrayed by a leadership intent on hogging power, patronage and resources. The nation, as the writer Binyavanga Wainaina has remarked, never imagined itself into being.

At 50, these acts of the imagination are the ingredients of a hopeful future, but time is running out.

Every missed opportunity to resolve deep-seated issues consigns the next generation to a Sisyphean struggle against itself. Having spent the first half-century of its existence avoiding the lessons of the past, the country’s leadership is in danger of repeating its own vexed history. ●

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KENYA 2030

Reimagining The government has plans to transform the country’s economic production over the next 16 years, but debates about redistribution and inclusivity remain unresolved

By Parselelo Kantai in Nairobi

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t the end of October 2006, President Mwai Kibaki launched the Kenya Vision 2030 project. It was to be the roadmap for economic transformation. Having spent the first three years of his term fixing the economy after a long era of kleptocracy and Bretton Woods-engineered austerity, the Kibaki administration felt sufficiently confident to chart the future.

Kibaki was politically isolated because his National Alliance of Rainbow Coalition partners accused him of reneging on a pre-election power-sharing deal.

In 2005, he had been dealt a crushing blow during a constitutional referendum. And yet he had fixed the economy.

From negative growth in 2002, it was growing at 6% and reached a high of 7.1% the following year. His opponents used the rhetoric of non-inclusiveness to negate any real political advantage he could gain from his economic successes. As such, at its first launch in 2006, Vision 2030 was seen as little more than a state-sanctioned campaign manifesto.

Just 15 months after the first launch of Vision 2030, the document lay in tatters in the wake of the bitterly disputed 2007 presidential elections and the violence that followed. It is almost uncanny that this state of affairs had been predicted almost a decade earlier.

In 1999, the Institute of Economic Affairs and the Society for International S U P P L E M E N T TO T H E A F R I C A R E P O R T

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KENYA AT 50

Kenyans wait patiently, and ever optimistically, for their politicians to find a way to prosperity that includes everyone

FOUR POSSIBLE SCENARIOS EL NIÑO SCENARIO: Will confusion and inertia thwart efforts at economic and political reform? If so, the status quo is maintained, tension heightens and Kenya fractures into ethnic districts with new systems of government within them.

MAENDELEO SCENARIO: Will the transformation concentrate the economy while resisting changes in the political structures? If so, rapid gains will not last long as tensions due to inequalities will emerge.

a nation Development organised a series of workshops called the Kenya Scenarios Project that involved a mixed group of policymakers, academics, professionals and activists. With the economy stagnating and the establishment under President Daniel arap Moi refusing to budge on the business of political and constitutional reforms, there was a widespread feeling that Kenya had “reached the limits of its chosen political and economic models”, according to the two thinktanks.

They produced four scenarios (see box). The one that spoke so uncomfortably about the Kibaki moment was named ‘Maendeleo’ – development. It suggested economic transformation engineered without political inclusiveS U P P L E M E N T TO T H E A F R I C A R E P O R T

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ness, “resulting in inequalities and instability”. The Maendeleo scenario may have anticipated the immediate postMoi future, but it also loudly echoed the central issues of the immediate post-independence era.

A BLUEPRINT FOR EXCLUSION

Independent Kenya’s holy grail of economic planning – Sessional Paper No. 10 of 1965: ‘African Socialism and its Application to Planning in Kenya’ – is ostensibly a negotiated settlement between the two opposing ideological schools. But, as former prime minister Raila Odinga points out (see page 14), it was fundamentally a blueprint for the economic exclusion of large segments

MARKO DJURICA / REUTERS

KATIBA SCENARIO: Will the transformation focus on the creation of democratic and locally accountable institutions while ignoring economic reform?

If so, though responsive institutions will emerge, Kenya will not achieve substantial economic transformation.

FLYING GEESE SCENARIO: Will a reshuffle of the institutions improve representation that reflects the diversity of Kenya’s people? Will this be accompanied by radical transformation of the economy to spur growth and improve distribution? If all the major actors engage, Kenya can achieve democracy and growth.

of the country and the populace. In response to demands from the left for a politics of redistribution, politician Tom Mboya famously remarked: “You can’t redistribute nothing.” Kenya’s economic history has been defined by this debate. Invariably, it is the pro-growth proponents that have won out. This has nourished the bitter politics that has defined the country to this day and is rooted in the land question.

The failure of the post-independence government to initiate an inclusive land redistribution project was not merely one of agrarian reform. Land was also the vehicle that the new elites used to capitalise themselves. In economic terms, the immediate result of ● ● ●

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KENYA AT 50

KULWANT SINGH WARAH/PRIVATE COLLECTION

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East African leaders meet in the 1960s: for more on reigniting the regional dynamism, see theafricareport.com ●●● the skewed redistribution of settler lands was a spike in agricultural productivity. With the country’s economy based on agriculture, the resultant expansion, mostly through small-holder production, served as a screen to mask rising levels of group inequality and regional exclusion. It was the suppressed politics of exclusion that would explode violently in 2007 and, among other things, delay the journey toward Vision 2030.

‘VISIONS’ FOR EVERYONE

In the scenarios publication, ‘Kenya at the Crossroads’, the question of how to chart a transformative way forward to avert the El Niño scenario – economic stagnation and violent political conflict – was everywhere apparent. Can Vision 2030 do the same?

Seeking to catapult Kenya into middle-income status within a generation, the roadmap proceeds on three fronts: economic growth – the ambition is to achieve 10% growth annually from 2012; social transformation – through the efficient delivery of and equitable access to social services; and political – deepening democratic reforms and strengthening governance systems.

More than seven years after the Vision 2030 launch, Chinese-financed projects are responsible for Kenya’s infrastructure take-off. Flagship projects include roads, railway modernisation and expansion, pipelines, ports and resort cities along the planned northern infrastructure corridor.

Across the region, ‘Vision’ projects proliferate. Almost every country in East

Africa has now generated one, courtesy of the McKinsey Global Institute, to whom African governments have outsourced the task of dreaming about the future.

They do, however, symbolise a renewed sense of confidence.

Deficit spending is the order of the day. Predicated on the anticipation of a mineral resource bonanza and the availability of inexpensive international loans, regional governments, Kenya’s included, are taking advantage of the optimism around Africa’s future to transform their economies.

Will there be a price to pay? In Kenya, the government is enthusiastic about middle-class consumerism. In contrast, China – after the three decades in which it focused on manufacturing – is only

ago, while running the Institute of Economic Affairs, she convened the Kenya Scenarios Project. Lately, she has become increasingly sceptical of the goals of Vision 2030.

“Vision 2030 anticipates rapid growth and participatory politics,” says Maina.

“The reality on the ground is somewhat different. The fundamental problem in Kenya today has always been this lack of inclusive growth. Focusing on high-value tourism, agribusiness investment and ICT [information and communication technology] expansion – all of which are supported by rapid infrastructure growth – runs against the very inclusivity you are trying to introduce. This is because it leaves out the one component at the centre of it all – cheap mass labour.”

Despite the current teethIt is possible that the regions ing problems of devolved government, it is quite poswill resolve the debate about sible that the regions will growth and redistribution resolve the debate about growth and redistribution. now starting to move towards a conInfrastructure expansion has the capacity sumer-driven economy. to transform previously marginalised reIn the medium term, it remains ungions in a manner unprecedented since the coming of the railway a century ago. clear how the International Criminal Mineral and other resources in northern Court cases will define the future. The government’s stance could well turn into counties, on the coast and elsewhere full-blown non-cooperation. If economic could change the economic fortunes sanctions – the consequence of nonof both the counties and the country cooperation – were on the cards during – but only if there is a commitment at the 2013 election campaign, the embrace the centre to see the nation beyond the of China was a deliberate strategy to mitprism of ethnic domination. igate those effects.

“We’ll just be taking off in 2030,” pre“We are in the Katiba scenario,” notes dicts Maina. “But the next five years are Betty Maina, chief executive of the Kenya critical. I just hope we get tired of fighting Association of Manufacturers. A decade and disagreeing.” ● S U P P L E M E N T TO T H E A F R I C A R E P O R T

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N° 56

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KENYA AT 50

OPINION

The keys to Kenya’s transformation Shifts in the global economy uniquely position Kenya to act as a bridge between Africa and the East in trade and investment

F

ifty years after independence, Kenya is ation in revenue collection and therefore poised to be one of the countries that the ability to invest in services. He has also directed the use of crowd-sourcing to allow will define the next phase of global the government to identify bottlenecks and trade and geopolitics. As President Uhuru inefficiencies in its service provision while Kenyatta recently argued in a short essay ensuring that all senior civil servants sign entitled ‘What We See When We Look East,’ geography and the economic opportunities exacting performance contracts as a condiit presents will position Kenya as a critical tion of their employment. bridge in the coming together of an integChanges in Kenyan governance also deepen the country’s ability to be an attractrating Africa and the powerful economic ive destination for investment. Long-term growth and investment in the greater Inpolitical risk – the most important kind for dian Ocean rim. Add to this the transformlarge-scale investments that take years to ative role of technology and the country’s yield profit – is also sharply down following progress in entrenching its democracy in the implementation of a new constitution. a devolved system of government, and you Its underlying principles offer greater prehave a Kenya that has laid the foundations Kenya’s permanent dictability and recourse by delivering the that will define its next 50 years.

Firstly, there is geography and the logistics representative to the devolution of power and robust checks and of trade and investment. Kenya is part of an United Nations in balances, as well as the reform of the judiEastern Africa whose fast-growing consumer Nairobi ciary and police. markets are combining with accelerating disKenya’s robust role in seeking the stabilcoveries of commodities and hydrocarbons isation of Somalia also ensures that regional plus the emergence of a single market to political risks are lowered. A critical comoffer unprecedented opportunities to domestic and foreign ponent for a country’s economic prosperity is being closely investors. Advanced plans, backed by strong political will, tied to regional development. to join this region with a world-class transport and logistics infrastructure will increase Kenya’s position as a bridge The third driver is the fundamental realignment in the between the region and the Indian Ocean rim countries that world’s geopolitical order. While North American and Westboast a third of the world’s people, its fastest-growing ecoern European economies fight stagnation, those of Asia and the Indian Ocean rim continue to grow strongly. The result nomies and the bulk of its mega-cities. has been a marked shift in global influence and also a glut of Examples of the next stage in infrastructure development include an expanded airport that will accommodate 20 milsavings over traditional investment opportunities. It allows lion visitors a year, making it the busiest in the region. A modKenya to expand its partnerships in a way that speaks ever ernised railway network stretching from the Indian Ocean more concretely to its national interest and counteracts the jarring paternalism that has characterised too many of Africa’s to Rwanda is soon to be underway, while Mombasa port is relationships with its main partners during the past 50 years. being upgraded. New projects in Lamu, on the north coast, The final trend that is likely to prove transformative is the are set to deliver pipeline, road and rail links to Ethiopia growing production cost and regulatory competitiveness of and South Sudan.

Kenya and the East African region. George Friedman, the founder of intelligence consultancy Stratfor, speaks of the The second driver of Kenya’s near future will be the post-China 16. That group is made up of those countries readiness of the people to benefit from global trends. The whose regulatory regimes, production costs and infrastrucrelatively sophisticated labour market makes Kenya an ture position them to pick up 100m jobs from China as its increasingly attractive place to do business from a skillsproduction costs rise rapidly. According to Friedman, the list acquisition perspective. Beyond proving a boon for headof 16 countries that will benefit from China’s rising costs of hunters, the presence of a growing technology sector that has the world’s most advanced mobile-payments ecosystem production include Kenya, Ethiopia, Uganda and Tanzania. is also transforming the country’s economy. More than 30% Kenya’s geography, its ability to open up trade between of gross domestic product now passes through M-PESA, the Africa and the world, the competitiveness of Kenyans’ skills, world’s most utilised mobile-money platform. the resilience of the political system, the regional determinLeveraging this phenomenon, the president has ordered ation to deliver stability and security, and the shift in global power and wealth from West to East will all combine to define that all payments from the public to government will be Kenya’s next 50 years. ● electronic by April 2014, portending a positive transform-

Martin Kimani

S U P P L E M E N T TO T H E A F R I C A R E P O R T

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KENYA AT 50

PICTURES: KULWANT SINGH WARAH PRIVATE COLLECTION

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Nairobi felt more integrated in the early 1960s: Warah’s family relaxes in the Stanley, previously a whites-only hotel

MEMOIR

Celebrating 50 years of impunity

As Kenya celebrates the 50th anniversary of its independence, wealth remains in the hands of the few and politicians divide the people based on ethnicity

I

was just a baby when the Union Jack was lowered and replaced with the black-red-green Kenyan flag. The flag symbolised both loss and redemption for a people who had regained what had been forcibly taken away during the brutal years of British colonisation.

I remember my childhood being a heady, optimistic period. My father, middle class, of Indian origin and living in the new cosmopolitan capital of Nairobi, imagined a future with limitless possibilities for himself and his children.

Those were the days when racial barriers were being broken at every level of society: in public schools and universities, in the civil service and in business.

An Africanisation policy imposed by the government in the mid-1960s did not deter my father from applying for Kenyan citizenship when thousands of Europeans and Asians were fleeing the country to seek refuge and opportunities

in Britain. He believed that the promise of independence extended to all races and that his identity was inextricably linked to this new entity called Kenya, a place where his forefathers had chosen to settle when the country was being imagined and created.

HISTORY’S WRONG TURN

If he were alive today, perhaps he might have wondered what happened to the promises made by the country’s founding fathers. Kenya enters its 50th year of independence with a sense of foreboding, a feeling that the country took a wrong turn at some point in its history and has been unable to retrace its steps or find the map that can take it where it wants to go.

In today’s Kenya, ethnic identity has replaced racial identity as a marker of privilege and entitlement. While the country has made giant leaps in some

areas – such as literacy levels, which stand at more than 80% – power and wealth are still in the hands of a few.

Recent government data shows that 10% of the country’s households control 40% of the country’s wealth and the bottom 10% control less than 1%. Poverty levels hover around 40%, and the gap between the rich and poor is as wide as the Rift Valley. The recent discovery of oil and the expectation that this natural resource will change the country’s fortunes have not allayed fears that the beneficiaries will be the same cabal of elites that has run the country since independence.

The seeds of the crisis that is Kenya were probably sown in 1923 when British settlers officially declared large sections of the colony as “white man’s country”.

Twelve years later, 4,700 Europeans held among them 5.2m acres of the most fertile land in the colony, some of it granted to them free of cost, the bulk held S U P P L E M E N T TO T H E A F R I C A R E P O R T

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KENYA AT 50

Warah’s father (above left) taking a portrait of President Moi in 1979; Mboya, Odinga and Kenyatta (right)

Rasna rows a boat on Uhuru Park’s artificial lake

on 999-year leases. The ‘natives’ were pushed onto reserves. Some found work as labourers on land they once owned.

The violent Mau Mau uprising restored the land to the people, but the custodians of the land – the founding fathers of independent Kenya – followed the pattern of the settlers by stealing it and alienating and dividing their own people along ethnic lines, which allowed a culture of impunity to flourish.

The pro-West founding president, Jomo Kenyatta, who amassed a large fortune during his reign, set the country on a winner-takes-all path to prosperity by planting a particularly insidious form of capitalism in the Kenyan psyche. His successor, Daniel arap Moi, created a society afraid of its own shadow and where sycophancy became the norm. Massive corruption scandals and gross human rights violations turned the country into a semi-pariah state. It took more than 20 S U P P L E M E N T TO T H E A F R I C A R E P O R T

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years to dislodge his dictatorial presidency, but by the time Mwai Kibaki took over the reins of power in 2002 corruption had become a defining characteristic of Kenyan society. Promises from Kibaki to end the rot led to naught, and in his first term his government too faced charges of grand corruption.

THE MYTH IS SHATTERED

Yet Kenya likes to think of itself as exceptional, an island of peace and prosperity in a region scarred by volatility. This myth gained currency in the 1990s when neighbouring Rwanda and Somalia were descending into chaos. However, it was shattered after the December 2007 general election that left more than 1,200 people dead and some 600,000 others displaced. The election and its aftermath reminded Kenyans that they have yet to come to terms with their past. It showed a country reeling from the effects of histor-

ical injustices related to land, corruption, poor leadership and impunity.

In 2010, Kenya adopted a progressive new constitution, which has not only expanded people’s rights but also addressed the issue of historical injustices and the inequitable distribution of resources. However, it is under constant threat of being dismantled by regressive forces within the current government.

In October this year, for instance, parliament passed a law that would take the country back to the Moi years by severely curtailing press freedoms that were guaranteed in the constitution.

In September, after the horrific terrorist attack on Nairobi’s Westgate mall – and the botched rescue operation during which security forces engaged in looting – blogger Gregg Mwendwa noted: “Sadly, mid-life clarity has taught me that education, religion and a large part of Kenyan socialisation is a well-orchestrated ploy to manufacture a deeply complacent but very functional citizen.”

It is this seeming functionality in the face of calamity that Ugandan writer Kalundi Serumaga alludes to when he says that violence and impunity have become normalised. Impunity is now an integral part of the country’s DNA, a result of the “acres of cynicism” – to quote Ugandan poet Okot p’Bitek – sown

by Kenyatta and Moi in the early years of independence. This cynicism, unfortunately, has now borne fruit in the ‘accept and move on’ mantra that has become the rallying cry of the government led by another child of independence – Kenyatta’s son, Uhuru, whose name means ‘freedom’ in Kiswahili. ● Rasna Warah in Nairobi

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KENYA AT 50

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LITERATURE

Kenyan writers in the world

Authors must follow the lead of music, film and comedy to find new ways of distribution and putting Africans at the centre of their imaginative world

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SAYYID AZIM/AP/SIPA

n eighty-year-old man from Embu, who had been a teenager in the late 1930s, told how he had been arrested by British colonial authorities for not paying hut tax for the home he shared with his impoverished single mother. His story was remarkable: the British offered him a deal: he could join the Kingâ&#x20AC;&#x2122;s African Rifles or stay in prison.

He chose the former. As World War II began, he found himself in Ethiopia, then Egypt. After the war, he decided to take his savings and start a church in

Harry Potter and the Deathly Hallows will not help our children build a new continent

Israel. He went home to see his relatives, who shot down his ideas, and he ended up a mild-mannered farmer in Embu.

I was moved by the idea of his imagination moving across place and time when the tectonic plates of the world were shifting. We published his story a decade ago in Kwani?*, the Nairobibased literary magazine.

My generation lived in different times.

We were stranded, often in single-party pseudo-democraciesunderInternational Monetary Fund economics. We were

trapped at home and dreaming of the world, or else we were entering into that fabled world through new immigrant pathways. Then we were preparing for a permanent return to a home that no longer recognisably exists.

Things changed rapidly. The new generation of novelists in Kenya no longer hail from the well travelled middle classes. They are children of the internet age, able to find vast archives of material online. Some of these young writers are bloggers. Many make a living as content producers: writing scripts for soap operas or doing social media for corporations. This allows them to develop their personal manuscripts.

When writers of my generation were making their way, many of us felt we had to leave the country to have access to well-stocked libraries or to our literary peers: fellow writers, lovers of books and other arty people who do

KENYA AT 50

not fit into the larger society. Now you can interact and share ideas with your counterparts anywhere in the world through social media.

So, the Kenyan in the world, the Kenyan writer in the world, is no longer a diaspora question. The world is here, all of it. The explosion of music, film and more is coming from a younger generation. The members of the new generation seek no subsidy and prefer to produce, direct and market their ideas outside of stale institutions. They have thrived.

Those writers who continue to rely on the same old networks are drowning.

They want to be like your average writer in the West, able to work and produce inside an ecosystem that was built long ago. In theory, that system was designed to carry and distribute many kinds of writing to differing audiences, but it can marginalise works that are not in vogue or somehow outside of the mainstream.

Young African musicians have built ous enough to seize these opportunities.

Meanwhile, we should worry that our dynamic and fast-growing businesses by learning how to distribute their own countries will be inundated by cheap work and build their own networks. They foreign content to influence yet another do not moan about being marginalised. generation of English-speaking Africans.

Such moaning makes us victims of often This could continue to alienate our hearts corrupted and dated universities, pubfrom our hinterland.

We cannot leave the imagining of our lishing mafias and foreign-supported continent to others. To imagine this conpublishing networks.

A decade after the explosion of Nollytinent, this country, our writers need to wood, it is clear to me that Kenyan and start to build small content businesses African writers have been wary of experthatlookintoourownhinterlandsandare imenting with new forms As African writers, we of delivery of literature. I cannot think of 10 genre ficcannot leave the imagining tion stories available online of our continent to others by younger African writers.

But there are thousands of relevant to us. The music of a new genindependent films of varying quality, eration of Africans is cutting across conall kinds of music, opinion pieces and manipulated photos all available online, ventional forms and allowing a new genthrough DVDs or even CDs. eration to imagine themselves in forms and styles that expand our possibilities.

That level of production can monetIt is such music that will develop great ise itself. Many writers, even younger ones, are moaning that publishers refuse engineers and architects, that is people to consider them. But this is at a time who will not just run to the internet to when the power to find and influence an copy and paste home designs that mean audience is at its cheapest and easiest. nothing in the context of places where we dream, eat, think and work.

TIME TO BREAK OUT If the children of Africa’s middle classes Much of this stagnant mentality comes imagine making a new continent while from the way the educated elites see they buy Barbie dolls, pick daffodils and themselves in the world. Writers, myself read Harry Potter, it becomes easy to see included, fought to find a place in the why we will need Chinese contractors to English-speaking publishing networks build our countries. The new possibilitthat are controlled out of London and ies should be at the centre of educating New York. But these networks are only the next generation. We are in a season able to handle three or four African of the most dramatic changes, and we writers at a time. need tens of thousands of adventurers Obiageli Ezekwesili, Nigeria’s former to write our new country into being. education minister and former World Will those Africans with capital and those with real creative abilities see that Bank vice-president for Africa, chided younger African writers for shying away they can come together to grow a new from the new dynamism that has crekind of publishing? They could do so ated fast-growing industries including at a time when hundreds of millions of Africans can afford to spend a little extra film, comedy and music. She used the Port Harcourt Book Festival in October money on thingstoread.It promisestobe to make her point about how writers a great time for literature, for education. must find ways to develop the new creA great start would be to see the outative economy. pouring of hundreds of cheap, cheerful or even bad digital novels, series and stories Those industries have created jobs, – all available through new media. Then the power of advocacy and real influwe can start to imagine worlds that help ence for many. Not enough is being us see our own world with ourselves at done to take creative writing into new places. What about writing in new forms the centre. The market for writing fiction for school children? There is a market is yet to be built. ● Binyavanga Wainaina in Nairobi of hundreds of millions for those adventurous enough to invest their time, *Binyavanga Wainaina was the founding money and creativity to produce a new editor of Kwani? magazine. His memoir ecosystem of reading material.

One Day I Will Write About This Place I believe the writers now finishing was published by Graywolf Press in 2011. school may be the only ones adventurS U P P L E M E N T TO T H E A F R I C A R E P O R T

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N° 56

13

KENYA AT 50

INTERVIEW

Raila Amolo Odinga

Leader, Orange Democratic Movement and former prime minister

Education is our key achievement The former prime minister reflects on the past 50 years of Kenya’s development and talks to The Africa Report about current affairs and the country’s future

C

ould you give a brief assessment of the current state of the nation?

Eight months after the elections, it does not appear that things have settled. This is all connected to what the leadership is going through. It’s causing anxiety among investors and uncertainty among the people.

Coupled with this is the rising cost of living, even though inflation has been contained.

Then there’s the state of insecurity. There have been killings around the country. The regularity with which police officers are caught committing crimes suggests that they are systematically abusing their offices.

In addition to all this, there is widespread industrial unrest – teachers, nurses, doctors, lecturers and others have all taken strike action at one point or another.

Most recently, the teachers have threatened not to mark examinations unless they receive a 300% increase in wages.

We are also seeing the emergence of a rogue parliament.

Legislators threatened to sack the secretary of the Salaries and Remuneration Commission and

remove themselves from the Public Officer Ethics Act, all to increase their own salaries. Linked to this is the publication of bills attacking the media and civil society. There are in all 49 amendments that have been brought under the omnibus Miscellaneous Amendments Bill. If passed and the attorney general is allowed to enact them separately, a number of these proposed laws can cancel the democratic gains that have been made over the past two decades.

NOOR KHAMIS/REUTERS

14

Ethnicity is a disease of the elite in competition over the nation’s resources What would you say are the key achievementsoftheKenyanstate over the past 50 years?

Without hesitation, these would be education and manpower development, especially if you compare us with other countries in the region. We made education compulsory and available from independence. You will recall, for instance, the early success of the Harambee schools of the immediate post-independence era, the adult education programmes and

the vocational training institutions that were set up across the country. By and large, we have done very well.

And if you consider that at independence there were very few doctors, engineers, economists and so onandcomparethatsituation with the current one, it’s possible to say that we have made great strides as far as manpower development is concerned.

All the same, much more needs to be done especially with regard to healthcare provision, where we have not done as well as we have in education. I think the colonial regime did more. Here, I’m thinking about the establishment of dispensaries that were everywhere in the country. The independence regimes should have done better.

S U P P L E M E N T TO T H E A F R I C A R E P O R T

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N° 56

KENYA AT 50

FROM PRIME MINISTER TO OPPOSITIONIST 7 January 1945 Born in Maseno 1970 Earned a master’s degree in mechanical engineering 1982 Placed under house arrest by the government of President Daniel arap Moi 1992 Joined the Forum for the Restoration of Democracy 2001 Moi named Odinga as his energy minister December 2007 Lost the contested presidential election and became prime minister in a power-sharing government March 2013 Lost the presidential election to Uhuru Kenyatta

What went wrong?

There was visionary leadership among the nationalists in East Africa. In my book, The Flame of Freedom, I praise Mwalimu [Julius] Nyerere. Tanganyika, he said, was preparedtodelayindependenceto wait for Kenya and Uganda so as to form the East African Federation.

When we got independence, the nationalists in Kenya split and went in different directions over purely internal issues – the land question and wealth distribution especially. As well, ethnicity became a problem. Ethnicity is a disease of the elite in competition over the nation’s resources, nothing more.

Federation, for instance, was a big agenda. But it was undermined and killed by the Kenyan elite. The S U P P L E M E N T TO T H E A F R I C A R E P O R T

borders were closed [once the East AfricanCommunitywasdissolved] and Kenya lost the regional market without an alternative to replace it.

The other pitfall is our own economic blueprint at independence, Sessional Paper No. 10, ‘African Socialism and its Application to Planning in Kenya’ – this was our bible. The key element in it was the issue of public investment in so-called high potential areas. Massive public resources were deployed to these areas. The thinking was that marginal areas would benefit from a trickle-down effect. We ended up with major distortions in terms of education, infrastructural development, agricultural development and provision of health and other basic services.

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N° 56

Would you have rejected Sessional Paper No. 10 if you were in power then?

I would certainly not have gone with Sessional Paper No. 10. It was opposedeventhenbyprogressives.

In fact, one of the most eloquent critiques of it was by the late Tom Okello Odongo, who warned that it would result in serious long-term distortions to the economy.

If we had at that time a Vision 2030, a clear strategy for economic development, we could have changed thepaththis country took. It’s what the South Koreans did. The late General Park Chunghee in 1970 came up with a philosophy, Saemaul Undong, which transformed the rural areas and transferred rural populations into towns, built industries and catalysed large-scale food production.

What does the future hold?

I don’t want to cast aspersions on my opponents, but I think that as a grand coalition government we laid the foundations for economic take-off. We have Vision 2030, which is anchored on three pillars–economic,socialandpolitical. There are flagship projects we inaugurated. It is now up to the new leadership to follow through.

The plane left the hangar and is taxiing to the runway. And then the captain was replaced. The new pilot now has the easiest of tasks.

And what does the future hold for you? Will you run in 2017?

I’ve not thought about it. What I am interested in doing is reorganising my own party. Our situation in parliament [where the Orange Democratic Movement/Coalition for Reforms and Democracy (CORD)isaminority]isnotunique even at the present moment. The Labour Party in the United Kingdom, for instance, finds itself in the same situation. Here, the Jubilee Coalition is not much stronger than CORD, but they co-opted 51 additional MPs from the Amani Coalition and the independents to gain an advantage. Our party will continue to highlight weakness in the government. ● Interview by Parselelo Kantai in Nairobi

15

16

KENYA AT 50

OPINION

Kenya, a crucible of technology and business Kenya is a frontrunner in technology and communications, but it must not slacken pace: the next decade will throw up opportunities to succeed in the global arena

K

enya has made a name for itself in the major players. In 2008, KenCall, one technology. Our M-PESA mobileof our major BPO players, won the best money transfer scheme, developed non-European call centre award at the

by Safaricom in 2007, is being copied worldEuropean Call Centre Awards. It was a wide. Our East African Community was milestone for the sector. the first to harmonise phone tariffs across The main thrust of Kenya’s technology the region, allowing a Kenyan to talk to a drive is to ease communication with the Ugandan for no extra cost. In 2011, Africa’s rest of the globe’s economies. Money movefirst mobile-phone application laboratment, e-commerce and the fast movement of information about goods and services ory opened in Nairobi, a city that also will enable Kenya to become part of global hosts a research centre from global technology giant IBM. Blackberry and Google supply chains. are already here. Our animators have produced award-winning children’s cartoons.

Inexpensive and ubiquitous telecomWe are not stopping there. In the next munications have finally obliterated all decade, Kenya’s information and commuimpediments to international competinications technology (ICT) will be radically Former permanent tion, but the dawning ‘flat world’ will not transformed. Broadband, for example, will secretary, ministry necessarily be economically stable. This be accessible and affordable for more than of information calls for the creation of a class of rugged 80% of the population. and communication and adaptable entrepreneurs. Companies in the service sector – telemarketing, acIn turn, the pressure to deal with the counting, computer programming, enginproblem of the youth bulge, the growing eering, scientific research, etc. – will continue to outsource need to empower all citizens, the nearly insatiable detheir activities, and this is Kenya’s opportunity to grasp. mand for data and the emphasis on devolving power to To succeed in the global arena, Kenya must also seek to the counties will become the major drivers of technology provide better and faster services to its citizens. Creating diffusion in Kenya. This will create the opportunity for better education, health and financial services for Kenyans the country to take off and become a major global ICT will deepen our capacity to be global competitors. To this innovation hub. end, the country must move fast to automate many of its Kenya is one of few countries in Africa that has comservices to create local efficiencies. prehensively dealt with the issue of ICT infrastructure, and The aim must be the seamless integration of the national as a result internet penetration jumped from less than 10% and county governments. Next-generation governments in 2008 to 40% in 2013. Studies have found that a 10% drop will depend on mobile platforms. These next-generation in the cost of using the internet adds 1 million more users. governments, with the next-generation citizens, will deThe International Telecommunication Union estimates mand local digital content – a massive source of employment. For example, to improve agricultural yields, a farmer that every 10% increase in the use of broadband leads to will need to consult a mobile phone. To give evidence in 1.3% growth in gross domestic product (GDP). Indeed, a court, you need telepresence. These things and more are recent study by the World Bank shows that ICT accounts what will characterise the future. For all these solutions, for 2% of the GDP growth rate in Kenya annually. It is in we must develop the content that is necessary. M-PESA this respect that there are multiple efforts to drive down has taught us that necessity is the greatest driver of change. the cost of broadband.

Finally, we must strive to provide what the developers An increasing number of young people are leveraging need to create solutions. Embracing open data is a cog the internet to create new entrepreneurial opportunitthat is necessary to develop the new applications we need ies. The nascent innovation hubs in Nairobi are fuelling to improve our livelihoods. It is a collaborative effort: the development of new applications, especially on mobile people and governments will drive the future. platforms, to create efficiencies across all sectors.

India, Costa Rica and Mauritius have shown how counKenya can become a global innovation centre as well tries can harness global demand for business process as a major player in the outsourcing business, but it will outsourcing (BPO). Kenya is positioning itself to join the only do so by building up its profile from local opportunwave as a way to provide employment for our youth, who ities, creating local efficiencies and developing human are educated but lack jobs. It is only a matter of time beresource capacity. This is what is needed to make the fore the country takes up the opportunity and challenges country competitive. ●

Bitange Ndemo

S U P P L E M E N T TO T H E A F R I C A R E P O R T

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N° 56

CLASSIFIED ADS

EXPRESSION OF INTEREST RÉPUBLIQUE DU CAMEROUN Paix – Travail – Patrie

REPUBLIC OF CAMEROON Peace – Work – Fatherland

MINISTÈRE DE L’ÉCONOMIE, DE LA PLANIFICATION ET DE L’AMÉNAGEMENT DU TERRITOIRE

MINISTRY OF ECONOMY, PLANNING AND REGIONAL DEVELOPMENT

COMITÉ DE PILOTAGE ET DE SUIVI DE LA RÉALISATION DU COMPLEXE INDUSTRIALO-PORTUAIRE DE KRIBI

STEERING AND MONITORING COMMITTEE FOR THE REALIZATION OF THE KRIBI INDUSTRIAL PORT COMPLEX

Public International Call for Expression of Interest No. 01 /APMI/CIPK/COPIL OF 13 NOVEMBER 2013 For the Operation and Maintenance of the Multipurpose Terminal at the Kribi Deep Sea Port PRE-SELECTION REGULATIONS NOVEMBER 2013 1. Purpose The Steering and Monitoring Committee for the Realization of the Kribi Industrial Port Complex (COPIL-CIPK), here in after referred to as the “Public Partner”, hereby launches a Public International Call for Expression of Interest for port or maritime companies, here in after referred to as the “Private Partner or “Candidate” wishing to participate in the process of short listing firms for the award of a partnership contract for the operation and maintenance of the multipurpose terminal at the Kribi Deep Sea Port.

2. Terms of Reference of the Private Partner The first phase of the construction of the Kribi Deep Sea Port (green field) will be completed in 2014 with the commissioning of a 350 metre-long quay for the container terminal and 265 metre-long multipurpose terminal (general cargo ships, ro-ro ships, bulk carriers, etc.).

The missions assigned to the Private Partner selected at the end of this process are the operation and maintenance of the multipurpose terminal at the Kribi Deep Sea Port.

The construction of infrastructure, superstructure and multipurpose terminal buildings will be completed in 2014. The equipment necessary for the operation of the multipurpose terminal has been acquired by the Public Partner within the framework of a port construction contract and should be received in 2014 (cf. Project Presentation Note).

The Private Partner shall be responsible for the operation and maintenance of the facilities and equipment of the multipurpose terminal in accordance with international quality, safety and performance standards.

3. Selection Procedure In accordance with the partnership contract regulatory framework in force, whose relevant elements can be obtained from the Support Council for the Realization of Partnership Contracts (CARPA), the procedure for selecting the Private Partner shall comprise the following phases: • The call for expression of interest to establish a shortlist of no more than five (5) candidates invited to participate in the next phase of the restricted international bid solicitation; • The restricted international bid solicitation inviting shortlisted candidates to submit their application files and bids; • The opening and evaluation of bids by the Board responsible for drafting the pre-selection report and proposing no more than three (3) candidates shortlisted to participate in the pre-qualification dialogue; • The pre-qualification dialogue is a consultation helping to define with each shortlisted candidate the technical means and the appropriate legal and financial arrangements for the execution of the project; • At the end of the pre-qualification dialogue, shortlisted candidates shall be requested to submit their final bids which shall be analyzed by the Board responsible for drafting the pre-qualification report and establish the final classification of bids; • The provisional successful bidder shall, on the basis of the pre-qualification report, be designated and requested to negotiate the terms of the contract; • The final phase shall consist in the negotiation and establishment of a draft partnership contract signed by the Private Partner which shall be a company governed by Cameroonian law established by the provisional successful bidder for this purpose.

It should be specified that the provisional successful bidder, whether a Cameroonian or foreign physical or legal person, shall, prior to concluding the Partnership Contract, set up a company governed by Cameroonian law to manage the Multipurpose Terminal.

The Public Partner shall reserve the right to modify, at any time, the call for expressions of interest procedure, where necessary. In this case, it shall inform all the candidates concerned about the modifications and changes made.

The conditions for the conduct of the following phases of the call for expression of interest shall be specified later.

CLASSIFIED ADS

4. Bidding Conditions This call for expression of interest is open to any port or maritime company or consortium experienced in cargo handling operations: • general cargo or multipurpose vessels (project cargo, industrial equipment, metal products, building materials, bags and general freight); • ro-ro ships (personal vehicles, commercial vehicles and rolling stock); • dry or liquid bulk carriers.

A candidate may be a single company or a group of companies. No candidate may submit more than one bid under penalty of disqualification.

5. Expression of Interest File The expression of interest file to be submitted by each candidate shall comprise: A/ An administrative and financial file B/ References C/ An operation and maintenance plan Administrative and Financial File • A letter of expression of interest duly signed by the candidate’s legal representative (cf. sample attached); • A Declaration on Honour (cf. sample attached); • A certificate attesting to the establishment of a group, were applicable (cf. sample attached); • A general presentation of the candidate (cf. sample attached); • A certified true copy of the company’s up-to-date by-laws and company memorandum and articles of association and trade register (or equivalent document in the candidate’s country); • A summary presentation of the candidate’s financial information over the last three (3) financial years (cf. sample attached); • The candidate’s financial statements and audited and certified annexes over the last three (3) financial years; • The original copy of the certificate of non bankruptcy (or an equivalent document in the candidate’s country) not more than three (3) months old before the deadline for submitting files.

References • The candidate’s references regarding the handling of general cargo ships, multipurpose ships, ro-ro ships and dry or liquid bulk carriers (cf. sample attached); • The list and technical characteristics of the facilities operated by the candidate(s) in the port(s) in which it operates.

• The candidate’s references and experience in the maintenance of port facilities.

Operation and Maintenance Plan • A brief, but ample description of the candidate’s mastery of the operation and maintenance of the Multipurpose Terminal within the framework of a partnership contract concluded with the State of Cameroon. Without considering this as a technical and financial proposal, the applicant should provide: • Brief summaries on the market it intends to develop, comparative advantages over competition and measures to be taken to maintain its competitive edge; • Fast estimates of traffic; • Descriptions of additional investments, where applicable; indicative performance targets; • Indicative security and safety objectives.

• File items and subsequent correspondences must be in English or French.

• For groups of companies, the group’s file shall comprise a certificate attesting to the establishment of the group (cf. sample attached) signed by each group member and appointing a leader with the authority to represent and commit the group. Each group member should submit all the documents listed above concerning him.

6. Submission of Candidates’ Documents The deadline for compiling and submitting candidates’ documents shall be five (5) weeks, with effect from the date of publication of the call for expression of interest.

Each file should be submitted in ten (10) copies, including one (1) signed original and nine (9) photocopies and an electronic version in a USB drive.

Each item of the signed original file must clearly state “original” to distinguish it from photocopies. Where there is a difference between the original and copy, the original version shall be deemed to be authentic.

The electronic version of the file shall contain documents only in PDF, doc or XLS format(or any other compatible format) that can be printed and saved without any limitation.

The original of the candidate’s file and nine (9) photocopies should be placed in ten (10) separate sealed envelopes clearly stating “original” or “photocopy” on the envelope.

Each of the ten (10) envelopes shall contain three envelopes, the first one containing the Administrative and Financial file, the second containing the References and the third the Operation and maintenance Plan.

The ten (10) envelopes and the USB drive shall be put in a sealed envelope or an outer container and submitted, against an acknowledgement of receipt, at the Secretariat of the Operational Unit (OU) of the Steering and Monitoring Committee for the Realization of the Kribi Industrial Port Complex (COPIL-CIPK) in Yaounde, SNI Building, 4th Floor, Room 404, Telephone +237 22 6530 33, Facsimile +237 22 14 02 04, no later than 07 January 2014, at 4:00 p.m.

Any file submitted after the above deadline shall not be considered and shall be kept at the disposal the candidate concerned.

The single envelope or outer container of the candidate’s file must be sealed in a manner as to be opened only during the opening sitting, under penalty of disqualification of the candidate. It should not enable the identification of the candidate and should bear only the following information: Public International Call for Expression of Interest Partnership Contract for the Operation and Maintenance ofthe Multipurpose Terminal at the Kribi Deep Sea Port “To be opened only at the opening sitting” The inner envelopes must indicate the candidate’s name and address in order to enable, where necessary, to return the file to him.

CLASSIFIED ADS

7. Opening of Files Files submitted within the required deadline shall be opened by the Commission established to that effect. Files shall be opened during an open sitting at a date and time to be made known to candidates in writing.

Only the envelope containing the administrative and financial file shall be opened in an open sitting to identify the candidate. The envelope containing the technical file shall be opened subsequently in camera.

After the opening of files and identification of candidates in open sitting, the Commission shall verify the compliance of the files (conditions of presentation, presence of required items and compliance with standards).

The files deemed to be inadmissible by the Commission may be rejected. Where the Commission deems it necessary, it may request the candidate(s) concerned to provide the documents lacking or any other additional information or document. In such case, the candidate concerned shall be bound to respond within the prescribed time limit.

The minutes of the opening of bids shall draw up a list of files deemed to be compliant and clearly state the reasons for the non-compliance of the other files. The minutes shall be prepared and signed during the sitting by all Board members and representatives of candidates present.

After the signing of the minutes, the Board chairperson shall adjourn the open sitting after which the Commission’s deliberations shall continue in camera.

8. Criteria for Evaluating Candidates’ Files The Board shall examine each candidate’s file in a manner as to evaluate and classify candidates on the basis of their: • Summary strategic vision of the operation and maintenance of the multipurpose terminal at the Kribi Deep Sea Port; • Level of experience in handling general cargo ships, multipurpose ships, ro-ro ships and dry or liquid bulk carriers; • Required technical, financial and administrative capacity to ensure the proper operation and maintenance of the multipurpose terminal at the Kribi Deep Sea Port; • Financial strength and financing capacity.

Since the goal of the State of Cameroon is to promote the sustainable development of the competences of national ports, the Commission shall give preference to candidates that guarantee the attainment of this goal.

9. Evaluation Criteria Score Grid Candidate’s files shall be evaluated and rated using the following score grid: N°

Criterion

Highest mark

1

Candidate’s administrative and financial file

10

2

References on handling at multipurpose terminals

30

3

References on and experience in port equipment maintenance

10

4

Development of national port competences

20

5

Candidate’s financial strength

20

6

Operation and maintenance plan

10

Total

100

10. Collection of Expression of Interest File Any interested candidate may, with effect from the date of publication of this Call for Expression of Interest, collect the expression of interest file free of charge from the Secretariat of the Coordinator of the COPIL-CIPK Operational Unit, in Yaounde, SNI Building, 4th Floor, Room 404, Telephone +237 22 65 30 33, or through a written request sent by e-mail to melom@kribiport.cm and contact@kribiport.cm or call +237 22 14 02 04.

The Secretariat of the Coordinator shall draw up an up-to-date list of candidates, including their contact information provided during the collection of the expression of interest file.

11. Notification of Results After the examination of candidates’ files, no more than five (5) candidates shall be shortlisted to participate in the next phase which will be the restricted international bid solicitation.

All candidates who submitted files shall be notified of the results in writing.

Shortlisted candidates shall be informed about conditions for participation in the next phase of the process in a restricted bid solicitation file sent to them.

12. Applicable Law This procedure shall be governed by the laws and regulations in force in Cameroon, particularly the legal and regulatory framework of partnership contracts.

13. Costs Each candidate shall bear the entire costs relating to the preparation and submission of his file.

14. Additional Information Any candidate wishing to obtain further clarifications or information should refer by writing to the address mentioned above or send an e-mail to melom@kribiport.cm and contact@kribiport.cm , no later than one week before the expiry of the deadline for the submission of application files.

THE CHAIRPERSON OF THE STEERING AND MONITORING COMMITTEE FOR THE REALIZATION OF THE KRIBI INDUSTRIAL AND PORT COMPLEX

KENYA AT 50

20

Kenya hopes to leap ahead in the race for first oil with the discovery in the Turkana Basin

nomy would grow by 5.6% in 2013 but was vague about the drivers of growth.

“This growth has been as a result of efforts to anchor economic stability through sound fiscal and monetary policies,” said Rotich.

If the Kenyan government wants its economic model to work, it needs to overhaul its institutions. The court system, for example, is corrupt, with the Economist Intelligence Unit reporting that it can cost up to 50% of a contract’s value to get it enforced through the legal system. The ruling party often purges judges based upon their loyalties. Companies close to ruling politicians can escape censure and receive state funding, skewing the playing field.

REUTERS STAFF/REUTERS

THE IMPACT OF OIL

BUSINESS

Towards a regional commercial hub

Commercial oil production, a transportation revolution and agriculture projects are on the horizon as Kenya seeks to profit from its strategic location

A

s Tanzania grappled with President Julius Nyerere’s collectivist philosophy of Ujamaa, Kenya chose a different development route. Sessional Paper No. 10 of 1965 put Kenya on the path to capitalism as many African peers embraced socialism. Kenya Vision 2030 is the country’s first meaningful national development plan since 1965, but it suffered a number of debilitating blows before it could be put into action after its 2008 launch.

First, the 2007-2008 post-election clashes disrupted the economy, mostly

affecting the farming, tourism and transport sectors. Inflation spiked to 32%, first due to supply shortages and then due to the surge in global commodity prices including grain and oil. This reduced the purchasing power of ordinary Kenyans.

The global financial crisis then took hold before famine struck the land.

After two successive stimulus packages to salvage the economy from growth rates of 1.8-2%, stable growth has returned but takeoff seems a couple of years away. In November, treasury secretary Henry Rotich predicted the eco-

These legal and institutional reforms may be harder when oil money starts sloshing through the economy. Irish company Tullow and its partners discovered oil in the Turkana Basin in 2012 – and already Kenya is planning its first exports by 2016. With several onshore and offshore blocks under exploration, the oil and gas sector is already reshaping thinking around infrastructure development, education curricula and county development agendas.

Power lines are being extended to remote areas where oil and gas activities are taking place, while Uganda, South Sudan and Kenya are discussing joint infrastructure development that includes refineries and pipelines. But there is concern that oil and mineral exports could cause the Kenyan shilling to appreciate and make manufacturing less attractive. Kenya is positioning itself as a manufacturing hub for the region.

The government hopes that the country can compete on labour and energy costs. In about three to five years, inexpensive geothermal and coal-fired power plants are due to begin producing. Kenya has tremendous geothermal power potential and is just getting started. Contractors from South Korea’s Hyundai Engineering are installing turbines for a 350MW venture in the Rift Valley.

Another 560MW of electricity is set to come from the same area. Further away at the Menengai crater, companies have plans for two projects, one delivering 400MW and the other 800MW. ● ● ● S U P P L E M E N T TO T H E A F R I C A R E P O R T

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N° 56

Geneva, 17-19 March 2014

2ND EDITION

The forum for African business leaders A UNIQUE NETWORKING PLATFORM. A STRATEGIC TOOL TO DEVELOP YOUR BUSINESS IN AFRICA AND INTERNATIONALLY.

Information and registration: www.theafricaceoforum.com Taking part in THE AFRICA CEO FORUM

MARIA LUISA MOULAY HAFID ENIOLA JEAN-PHILIPPE ABRANTES ELALAMY FADAYOMI PROSPER CEO, Angola Minister of Industry President, Vice-President, Investment Agency and Commerce Institute of IFC (ANIP) (Morocco) Directors (Nigeria)

DIAMOND

PLATINUM

ISSAD REBRAB Chairman, Cevital (Algeria)

DONALD KABERUKA President, African Development Bank

GOLD

KOLA KARIM CEO, Shoreline Group (Nigeria)

VALENTINE TEWOLDE CAROLE KARIUKI SENDANYOYE GEBREMARIAM CEO, RUGWABIZA CEO, Kenya Private CEO, Rwanda Ethiopian Airlines Sector Alliance Development Board (Ethiopia) (KEPSA)

PARTNERS

AWARDS

GALA DINNER Islamic Corporation for the Development of the Private Sector

ORGANIZERS

KENYA AT 50

Coffee and tea Horticultural Other

20 04 / 20 05 05 / 20 06 06 / 20 07 07 /08 20 08 / 20 09 09 / 20 10 10 /11 20 11 / 20 12 12 /13 20 13 /14

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

3,000 2,500 2,000

Capital and remittances inflows ($m) Direct investment (right) Remittances Short-term (net)

1,500 1,000 500 0

04 20 /05 05 20 /06 06 20 /07 07 20 /08 08 20 /09 09 20 /10 10 20 /11 11 20 /12 12 20 /13 13 /14

-500

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

Services exports 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

($m)

Tourism Other services

04 / 20 05 05 / 20 06 06 / 20 07 07 / 20 08 08 / 20 09 09 / 20 10 10 / 20 11 11 / 20 12 12 / 20 13 13 /14

There are some counterbalancing dynamics. The country could become a net exporter of food if the government’s plans to put more than 400,000ha under irrigation in the next four years succeed.

The programme targets maize, wheat and rice production. This should ease that begins or terminates at the port inflation by bringing down food prices, of Mombasa. The northern corridor and it should also provide non-farm is seen as one of the most important rural jobs in agro-processing. transport corridors in Africa because Regional dynamics can also bring it serves up to seven countries: Kenya, fresh vigour. For years, With Lamu Port, Kenya is Kenya failed to take advantage of its position as a hub finally taking advantage of its in the region. This is chanposition as a hub in the region ging. The government has launched some elements of the Lamu Port-South Sudan-Ethiopia Uganda, Rwanda, the Democratic Retransport project at an estimated cost of public of Congo, South Sudan, Ethiopia $25bn. The infrastructure will include a and Tanzania. railway line, an oil pipeline, roads and Already, the railway line from Mombasa to Kampala in Uganda was extena deep-water port.

It will also complement the northern ded to Tororo in the west of the country corridor, the term given to any route and to Gulu in the north, just 90km shy

SOURCE: IMF

GREEN RELIEF

Goods exports ($m)

20

●●● Geothermal power projects, while expensive to drill, are extremely inexpensive to operate. Electricity utility KenGen wants to lure manufacturers to the valley. If successful, this could create a sprawling industrial metropolis driven by cheap power.

With coal deposits in eastern Kenya, alongside an area that is rich in limestone, the cement industry is likely to thrive. Nigerian industrialist Aliko Dangote announced in September that he will invest $400m in a cement plant in the area. France’s Lafarge and local companies are also staking out their claims there.

Housing minister Soita Shitanda says the country needs an additional 210,000 housing units per year to keep up with demand. Only a quarter of those houses are now being built. Developers are setting up a series of satellite projects around the capital such as Migaa and Tatu City, but an estimated 60% of Kenya’s population of 43 million people are living in slums. The realities of the informal economy – the legions of streetside food and phone credit vendors – suggest that the government needs to address youth unemployment quickly.

Patricia Ithau, managing director of L’Oréal East Africa, says: “Youth unemployment is a concern. That us why the country has set up initiatives like the Ksh6bn UWEZO Fund to support youth and women enterprise”.

20

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of South Sudan, in October. Ordinarily, goods have to be transported more than 500km to South Sudan on bad roads.

The country’s future as the land gateway to East and Central Africa will contribute to economic growth, and Kenya is also looking to replicate the same in the air. Four hours away from any part of Africa, Kenya is a convenient base for organisations with pan-African operations.

Recently, the likes of General Electric, Bharti Airtel, Coca-Cola and ActionAid relocated their African headquarters to Nairobi. Coupled with the country’s position as the largest exporter of cut flowers, Nairobi could well become an aerotropolis if its airport can recover strongly from the fire that decimated passenger terminals in August 2013.

There are areas where Kenya’s infrastructure is now strong, such as the telecoms sector. The arrival of several underwater fibreoptic cables has contributed to the slashing of bandwidth prices. Companies are seizing the opportunities, and there are signs of progress in business process outsourcing and the creation of mobile-phone applications (see page 16). There is a large pool of educated workers, competitive labour costs and several clusters for call centre operators.

Konza Techno City is still in the planning stages, but it has drawn interest from Samsung, which has proposed to set up a laptop assembly plant there.

That could depend on how the government goes about procuring laptops for Class 1 students, a programme it plans to commence next year. With Lenovo, Hewlett-Packard and Samsung scramblingtogetthecontract,theupsidecould be the setting up of more plants that could then service the regional market.

But there is much work to be done on training before real takeoff is achieved in the technology sector. A Harvard Business School case study says: “Firms do not believe that [the University of Nairobi’s] programmes offer sufficient training for their entry-level positions and thus are forced to re-train new hires.”

It also casts doubt about the usefulness of the Kenya Industrial Research and Development Institute and the Nairobi Technical Training Institute. Better support for education at the tertiary level and industry-specific vocational training could be a solution. ● James Mbugua in Nairobi and Nicholas Norbrook

S U P P L E M E N T TO T H E A F R I C A R E P O R T

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N° 56

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CLASSIFIED ADS

EXPRESSION OF INTEREST RÉPUBLIQUE DU CAMEROUN Paix – Travail – Patrie

REPUBLIC OF CAMEROON Peace – Work – Fatherland

MINISTÈRE DE L’ÉCONOMIE, DE LA PLANIFICATION ET DE L’AMÉNAGEMENT DU TERRITOIRE

MINISTRY OF ECONOMY, PLANNING AND REGIONAL DEVELOPMENT

COMITÉ DE PILOTAGE ET DE SUIVI DE LA RÉALISATION DU COMPLEXE INDUSTRIALO-PORTUAIRE DE KRIBI

STEERING AND MONITORING COMMITTEE FOR THE REALIZATION OF THE KRIBI INDUSTRIAL PORT COMPLEX

PUBLIC INTERNATIONAL CALL FOR EXPRESSION OF INTEREST N0. 002 /APMI/CIPK/COPIL OF 13 November 2013 FOR THE AWARD OF A CONCESSION CONTRACT FOR TOWAGE AND MOORING SERVICES AT THE KRIBI DEEP SEA PORT Call for Expression of Interest NOVEMBER 2013 1. PURPOSE The Steering and Monitoring Committee for the Realization of the Kribi Industrial Port Complex (COPIL-CIPK) hereby launches a Public International Call for Expression of Interest to specialized maritime companies wishing to participate in a short-listing process in view of a concession agreement for the operation and development of towage and mooring services at the Kribi deep sea port.

2. TERMS OF CONTRACT The missions to be assigned to the selected contractor following the short-listing process shall be the operation and development of towage and mooring services at the Kribi deep sea port during the first phase of its operation and the second phase of its development.

The first phase of the construction of the Kribi deep sea port (greenfield) will be completed in 2014 and the port will start operation with a 350m quay dedicated to container shipsand a 265m multi-purpose quay intended to receive different types of ships (general cargo ships, multipurpose vessels, dry bulk carriers,ro-ro ships, etc…). Works for the construction of the second phase of development of the Kribi port shall commence after completion of the first phase in 2014 (see. project presentation note attached to the manifestation of interest file).

Two new tugboats to be received in 2014 have been purchased by the port authority, in accordance with the port construction contract (see. project presentation note).

The concession holder shall be in charge of the operation and maintenance of the two tugboats acquired by the port authority. He shall be required to acquire and mobilise all additional equipment necessary for providing towage and mooring public services to vessels calling at the Kribi port in accordance with the best international quality, safety and performance standards.

3. SELECTION PROCEDURE The procedure for the selection of the concession holder shall comprise the following steps: a) The current short-listing process aiming at establishing a short-list of at most 5 (five) candidates that will be invited to participate in a limited international call for tender; b) An invitation to tender limited to the short-listed candidates, inviting them to submit their technical and financial bids; c) Assessment of candidates’ technical bids; d) Assessment of candidates’ financial bids; e) Negotiation and contract award.

4. SUBMISSION REQUIREMENTS This public international call for expression of interest is open, on equal terms, to all specialized maritime companies or group of companies having: • attested experience in harbour towage operations inseaports receiving similar vessels to those expected to call at the Kribi port during its operating phase 1 and phase 2 (see. project presentation note); • experience in mooring operations inseaports receiving similar vessels to those expected to call at the Kribi portduring its operating phase 1 and phase 2; • the required technical, financial and administrative capacities to provide the needed towage and mooring services at the Kribi seaport.

CLASSIFIED ADS

5. COLLECTION OF THE FILE FOR CALL FOR EXPRESSION OF INTEREST From the date of publication of this call for expression of interest, any interested candidate may collect the file of the call for expression of interest, free of charge, at the Secretariat of the Coordinator of the Operational Unit of the Steering and Monitoring Committee of the Kribi Industrial Port Complex (COPIL-CIPK), in Yaounde, SNI Building, 4th Floor, Room 404, Telephone +23722653033, or by sending an e-mail to melom@kribiport.cm and contact@kribiport.cm or by sending a fax to +237 22 14 02 04.

The Secretariat of the Coordinator will draw up an up-to-date list of candidates, including their provided contact information.

6. CANDIDATES’ FILE Each candidate shall submit an administrative and financial file and a technical file.

Administrative and financial file • A letter of expression of interest duly signed by the candidate’s legal representative (see. sample attached); • A Declaration on Honour (see. sample attached); • Where applicable, a certificate attesting to the establishment of an association of companies as a candidate (see. sample attached); • A general presentation of the candidate (see. sample attached); • A certified true copy of the company’s up-to-date Statutes and trade register of the candidate (or equivalent document in the candidate’s country); • A summary presentation of the candidate’s key financial data or information over the last 3 (three) financial years (see. sample attached); • the candidate’s audited and certified financial statements and annexes over the last 3 (three) financial years; • The original copy of a certificate of not-bankruptcy(or an equivalent document in the candidate’s country) of not more than 3(three) months old before the expression of interest deadline; Technical file • A brief presentation of the candidate’s reasons for participating in the call for expression of interest and the strategy he intends to use in operating and developing the towage and mooring services at the Kribi port during its operating phase 1 and phase 2; • the list of candidate’s references in the harbour towage field, stating the port(s) concerned, the number, the type and the physical characteristics of vessels towed by the candidate over the last 3 (three) years (see. sample attached); • the fleet list and the main technical specifications of tugboats operated by the candidate (see. sample attached); • the list of candidate’s references in the harbour mooring field (see. sample attached); • the list and the main technical specifications of mooring equipment operated by the candidate.

All file items and subsequent correspondences must be in French or English. A candidate may be a single company or an association of companies. No company shall submit more than one candidature, under penalty of disqualification.

7. SUBMISSION OF CANDIDATES’ FILES The time for constitution and submission of the candidates' files is fixed at five (5) weeks, with effect from the date of publication of this call for expression of interest.

Candidates files should be submitted, against acknowledgement of receipt, not later than 09 January 2014, at 4:00 PM, at the Secretariat of the Coordinator of the Operational Unit of the Steering and Monitoring Committee of the Kribi Industrial Port Complex (COPIL-CIPK) in Yaoundé, SNI Building, 4th Floor, Room 404, Telephone +23722653033, Facsimile +237 22 14 02 04.

The method of presentation and submission of candidates’ documents is specified in the file for the call for expression of interest.

8. FURTHER INFORMATION Any candidate wishing to obtain further clarifications or information should refer by writing to the address mentioned above or by sending an e-mail to melom@kribiport.cm and contact@kribiport.cm , at least one week before expiry of deadline for submission of candidates file.

9. OPENING OF CANDIDATES FILES Candidates’ files shall be opened at a public sitting on a date and time to be made known to candidates in writing.

10. ASSESSMENT OF CANDIDATES FILES The Commission will assess each candidate’s file on the basis of the assessment criteria and the scoring grid contained in the file of call for expression of interest.

11. ANNOUNCEMENT OF RESULTS After assessment of candidates files, a maximum of 5 (five) candidates shall be shortlisted and invited to participate in the next phase that will be a limited international invitation to tender.

Chairman of the Steering and Monitoring Committee for the Realization of the Kribi Industrial Port Complex

26

LAST WORD

A Groupe Jeune Afrique publication

BY ABDI LATIF DAHIR

57-BIS, RUE D’AUTEUIL – 75016 PARIS – FRANCE TEL: (33) 1 44 30 19 60 – FAX: (33) 1 44 30 19 30 www.theafricareport.com

Being and belonging

A

s the clouds shied away and the airplane neared the ground, the landscape below – dry, flat and monotonous – became clear. The plane wobbled, took a sharp descent, bumped into the runway and came to a jarring halt.

With an air of nonchalance, the pilot announced: “Welcome to Wajir International Airport.”

I was in Wajir to shoot a documentary about Annalena Tonelli, an Italian humanitarian worker who devoted much of her life to the Somali communities in Kenya and Somalia. In February 1984, Tonelli saved and treated ethnic Somali men who were being targeted by the Kenyan government.

Following inter-clan clashes, the tragedy of what came to be known as the Wagalla Massacre saw the Kenyan government single out thousands of Somali boys and men in the name of disarmament and hold them hostage for days, naked and without food or water.

After three days of interviewing Tonelli’s colleagues and beneficiaries I left Wajir with a feeling of shame and resentment. Resentment because here we were 30 years later and no one – at least at official levels – could be bothered to discuss one of the worst violations of human rights in Kenya. I was also ashamed because as a Kenyan of Somali origin I belonged to both a country and a government machine that massacred its people and still would not publicly acknowledge its own brutal acts.

When we had moved to Mogadishu, my mother told us stories about the traumatic and complex struggle between people and power in Kenya. My mother’s stories filled the yawning gap between the reality I lived in Somalia, and Kenya, where I was

CHA I R M A N A ND F O UND E R BÉCHIR BEN YAHMED P UB L I S HE R DANIELLE BEN YAHMED publisher@theafricareport.com EXECUTIVE PUBLISHER JÉRÔME MILLAN

born and which I called home.

Even as the sound of bullets went off in Mogadishu and the incessant litany of strife shaped that nation, she told us about Garissa, about Mandera town in 1985 and the humiliation encountered by many Kenyan-Somalis in 1989 when the Kenyan government adopted a screening process as a mechanism to identify “illegal aliens” coming from Somalia.

Enter the new millennium, and as the rest of Kenya benefited from the trove of democracy and multiparty politics – with youngsters in other provinces learning to manoeuvre around the Half a tapestry of cultures, customs and technocentury on, logies that surrounthe Somali ded them – North Eastern Province was communities, still lagging behind in who inhabit the Human Develop20% of ment Index.

Four presidents, Kenya’s two constitutional territory, are referendums and six general elections still made to later, Kenya in its feel they do Jubilee anniversary not belong stands as a beacon of hope among many of the countries in Africa. A diamond in the rough, its successes sharply contrast with the institutional failures engulfing countries across the Horn of Africa. Yet, half a century after independence, the Somali communities, who inhabit 20% of Kenya’s territory, are still made to feel as though they do not belong, the ‘other’ in a public discourse that has been developed over decades.●

M A NA G I NG E D I T O R NICHOLAS NORBROOK editorial@theafricareport.com A S S I S TA NT E D I T O R GEMMA WARE E D I T O R I A L A S S I S TA NT RUBY EDWARDS R E G I O NA L E D I T O R PARSELELO KANTAI (East Africa) A RT & L I F E E D I T O R ROSE SKELTON S UB - E D I T O R S ALISON CULLIFORD MARSHALL VAN VALEN ERIN CONROY P R O O F R E A D I NG KATHLEEN GRAY A RT D I R E CT O R MARC TRENSON DESIGN VALÉRIE OLIVIER CHRISTOPHE CHAUVIN SYDONIE GHAYEB P R O D UCT I O N PHILIPPE MARTIN CHRISTIAN KASONGO R E S E A R CH ANITA CORTHIER P HO T O G R A P HY CLAIRE VATTEBLED O NL I NE JEAN-MARIE MINY PRINCE OFORI-ATTA SALES SANDRA DROUET with HÉLÈNE CONSTANT Tel: (33) 1 44 30 18 07 – Fax: (33) 1 45 20 09 67 sales@theafricareport.com CONTACT FOR SUBSCRIPTION: Webscribe Ltd Unit 8 The Old Silk Mill Brook Street, Tring Hertfordshire HP23 5EF United Kingdom Tel: + 44 (0) 1442 820580 Fax: + 44 (0) 1442 827912 Email: subs@webscribe.co.uk 1 year subscription (10 issues): All destinations: €39 - $59 - £35 TO ORDER ONLINE: www.theafricareportstore.com D I F CO M INTERNATIONAL ADVERTISING AND COMMUNICATION AGENCY 57-BIS, RUE D’AUTEUIL 75016 PARIS - FRANCE Tel: (33) 1 44 30 19-60 – Fax: (33) 1 44 30 18 34 advertising@theafricareport.com A D VE RT I S I NG D I R E CT O R NATHALIE GUILLERY with ANNGIE AVILA CARDENAS R E G I O NA L M A NA G E R S CAROLINE AH KING FADOUA YAQOBI

A long longer version of this piece is available at th theafricareport.com

US R E P R E S E NTAT I VE AZIZA ALBOU a.albou@groupeja.com

Abdi Latif Dahir is a Somali journalist based in Nairobi and a fellow at United Press International.

S U P P L E M E N T TO T H E A F R I C A R E P O R T

E D I T O R I N CHI E F PATRICK SMITH

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N° 56

PRINTER: SIEP 77 - FRANCE N° DE COMMISSION PARITAIRE : 0715 I 86885 Dépôt légal à parution / ISSN 1950-4810 THE AFRICA REPORT is published by GROUPE JEUNE AFRIQUE

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