In response to this intriguing question, raised by Dele Fatunla on the Diaspora Debate blog at African Arguments Online, we believe the Diaspora is a rich source of much-needed human and financial capital that ought to be better leveraged to benefit Africans on the continent.
For many African countries, one important way to create productive jobs is to grow the labor-intensive light manufacturing sector, which would accelerate economic progress and lift workers from low-productivity agriculture and informal sectors into higher productivity activities.
Sub-Saharan Africa’s low wage costs and abundant material base have the potential to allow light manufacturing to jump-start the region’s long-delayed structural transformation and over-reliance on low-productivity agriculture. Moreover, as globalization advances and China evolves away from a comparative advantage in labor-intensive manufactured products toward more advanced industrial production, African economies such as Ethiopia and Tanzania are uniquely positioned to take advantage of this opportunity.
African Head of States and Governments will convene in Addis Ababa, Ethiopia later this month to launch a continent-wide free trade agreement (CFTA). The summit will focus on solutions to the numerous impediments that hinder intra-African trade: inefficient transit regimes and border crossings procedures for goods, services and people; poor implementation of regional integration commitments.
Last year 14 million people around the world applied for the 50,000 green cards available through the U.S. Diversity Visa lottery, commonly known as the Green Card lottery.
I recently had the opportunity to organize and take part in an exchange learning visit to Thailand and Vietnam. The visit was aimed at improving the effectiveness of Ethiopia’s land administration system by enhancing stakeholders’ understanding of the sector’s policies and institutional constraints and how to address them through integrated but multi-faceted reforms and programs.
Over the past decade, Ethiopia has successfully implemented the worlds’ largest rural land registration program. The registration is implemented equitably and with clear positive impacts on conflict, productivity, investment, and rental market participation. However, constraints still exist. There’s a disconnect between urban and rural registration and administration, stagnant policy revisions remain, and there is often weak institutional capacity to act on and implement innovative ideas with the required speed.
When I first entertained the idea of heading to the Far East to learn from the experiences there, I was very skeptical and thought Vietnam and Thailand were just way too far… and I don’t just mean geographically. Once I arrived there, I realized that I was wrong and was pleasantly surprised to discover lots of very useful lessons that can help to initiate, improve, or at least reaffirm the course of Ethiopia’s land administration system.
Despite escalating debt concerns, Q3 Euro Area GDP growth remained positive mostly on account of robust growth in the two largest economies Germany and France. Q3 GDP growth was even stronger in the US, Japan and China (all of which benefitted from the post-Tohoku bounce back), with consumer spending also being an important growth driver.
Important developments today:
1. Eurozone growth projected to slowdown sharply in 2012
I am standing in a camp near Dollo Ado, in southern Ethiopia near the border with Somalia. The camp is an open site on hard rocky land: the only vegetation is grey, thorny scrub. An endless wind is swirling around me, picking up the light soil under foot and coating everyone and everything with a thin film of orange. Dust devils spin lazily in the relentless hot sun, making it hard to see the plastic sheeting that is the only covering for the ‘huts’ in which 10,000 people are living. Welcome to Haloweyn, the newest refugee camp for the drought-triggered exodus from Somalia. Today is Eid-ul-Fitr, but nobody is celebrating here.
We have stopped to talk to people and understand the challenges they face, but it is hard work. Many of them have scarves wrapped around their faces to protect themselves from the wind, very few of us speak any Somali, and when we do communicate they look uncertain and dazed, as well they may. This camp is only three weeks old—less than a month ago all these people were wandering through this extraordinarily arid landscape, trying to pick their way past the lines of conflict, almost all malnourished and often sick too. That those we meet seemed to have recovered their physical health already is fairly miraculous. Their reluctance to relive their experiences seems wholly understandable.
The proceeds of the bond will be used to fund the construction of the Grand Renaissance Dam. This dam will be the largest hydroelectric power plant in Africa when completed (5,250 Mega Watts). The first one was called the Millennium Corporate bond, and was for raising funds for the Ethiopian Electric Power Corporation (EEPCO) . The first diaspora bond issuance did not meet the expectations. Sales were slow during the first months of offering despite the efforts of the Commercial Bank of Ethiopia and the embassies and consulates to sell them. Some risks that the diaspora faced were: i) risk perceptions on the payment ability of EEPCO on its future earnings from the operations of the hydroelectric power; ii) lack of trust in the government as a guarantor; and iii) political risks.
Earlier this month, I participated in a four-day mission to Mandera, a county in northeastern Kenya, some 640 km from Nairobi on the Somali border. The European Commission’s Humanitarian Agency (ECHO) arranged the mission to assess progress of various community-managed drought risk reduction initiatives.
We visited several projects being implemented across Mandera’s central, northern and eastern districts, an area which is home to more than a million people, according to the last census in 2009. The area is classified as arid and receives on average 250 mm of rainfall in a good year. But for the last several months, not a single drop of rain has fallen and all water reserves have been depleted. Famine could be imminent in Mandera and its neighboring counties if policies are not put in place to prevent it.
Being my first visit to Mandera the mission was eye-opening but also disquieting, coming as it did in the midst of what is now accepted as “the most severe drought in the Horn of Africa in the last 60 years”.