John Campbell

Africa in Transition

Campbell tracks political and security developments across sub-Saharan Africa.

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Showing posts for "Economic Reform"

Africa’s Changing Economic Landscape

by Guest Blogger for John Campbell
A truck is loaded with bags of tea leaves at a plantation in Nandi Hills, in Kenya's highlands region west of capital Nairobi, November 5, 2014. (Reuters/Noor Khamis) A truck is loaded with bags of tea leaves at a plantation in Nandi Hills, in Kenya's highlands region west of capital Nairobi, November 5, 2014. (Reuters/Noor Khamis)

This is a guest post by Allen Grane, research associate for the Council on Foreign Relations Africa Studies program.

Bloomberg Markets’ Michael Cohen and Helen Nyambura-Mwaura have analyzed the current state of Africa’s economies in a very interesting article. They point out that despite the current poor performance of Africa’s larger economies (particularly Nigeria and South Africa), some of the continent’s smaller economies, especially in East Africa, are doing well and will likely continue to do so. Read more »

‘Bling’ and the Nigerian Political Class

by John Campbell
A Nigerian man looks at a vehicle by German car maker Porsche in Lagos, March 14, 2012. (Reuters/Monica Mark) A Nigerian man looks at a vehicle by German car maker Porsche in Lagos, March 14, 2012. (Reuters/Monica Mark)

Nigeria is famous for the delight in display taken by the governing class and the rich. Hence, native dress for women and men is made of rich fabrics and bedecked with jewelry, residences often have gold-plated taps, and, at one point, the Hummer appeared to be the vehicle of choice. Read more »

Corruption, Nigeria, and the United States

by John Campbell
World Bank President Jim Yong Kim, from left, Sarah Chayes, U.S. Secretary of State John Kerry, Britain's Prime Minister David Cameron and Nigeria President Muhammadu Buhari take part in a panel discussion at the Anti-Corruption Summit in London, Thursday, May 12, 2016. (Reuters/Frank Augstein/Pool) World Bank President Jim Yong Kim, from left, Sarah Chayes, U.S. Secretary of State John Kerry, Britain's Prime Minister David Cameron and Nigeria President Muhammadu Buhari take part in a panel discussion at the Anti-Corruption Summit in London, Thursday, May 12, 2016. (Reuters/Frank Augstein/Pool)

Nigeria’s notorious corruption was a centerpiece of the 2014-2015 presidential campaign of Muhammadu Buhari, and fighting it has been a centerpiece of his administration. Abuja is an important Washington partner, and a successful Nigerian campaign against corruption is in the American interest. However, Council on Foreign Relations International Affairs Fellow Matthew Page argues that the United States is not doing nearly enough in a hard-hitting, thought-provoking brief on corruption, “Improving U.S. Anticorruption Policy in Nigeria.” Read more »

Nigeria Devalues its Currency

by John Campbell
A trader changes dollars with naira at a currency exchange store in Lagos, February 12, 2015. (Courtesy Reuters/Alessia Pierdomenico) A trader changes dollars with naira at a currency exchange store in Lagos, February 12, 2015. (Courtesy Reuters/Alessia Pierdomenico)

In the face of low international oil and gas prices, the domestic and international business community, academics, and journalists have all urged President Muhammadu Buhari to devalue the national currency, the naira. Buhari steadfastly refused. Based on his 1983-85 experience as head of state, also a period characterized by falling oil prices, he seems to believe that in an economy as dependent on imports as Nigeria, devaluing the naira would increase the cost of living for the poor, the majority of Nigeria’s citizens. Buhari famously observed that “Nigeria even imports toothpicks.” Read more »

South Africa’s Currency Falls Again on Rumors of Finance Minister’s Arrest

by John Campbell
South African Finance Minister Pravin Gordhan gestures during a media briefing in Sandton near Johannesburg, March 14, 2016. (Reuters/Siphiwe Sibeko) South African Finance Minister Pravin Gordhan gestures during a media briefing in Sandton near Johannesburg, March 14, 2016. (Reuters/Siphiwe Sibeko)

On May 15, the Sunday Times (English, Johannesburg) published rumors of the impending arrest of Finance Minister Pravin Gordhan over alleged revenue service irregularities. However, on May 16, Beeld (Afrikaans, Johannesburg) reported that President Zuma denied the Sunday Times report. Nevertheless, the South African national currency, the rand (ZAR), fell the following two days, reaching its weakest level in two months; it has fallen 2.1 percent against the U.S. dollar since March 15. Read more »

Africa Returns to the Markets

by Guest Blogger for John Campbell
Nigerian naira notes are seen in this picture illustration, March 15, 2016. (Reuters/Afolabi Sotunde/Illustration) Nigerian naira notes are seen in this picture illustration, March 15, 2016. (Reuters/Afolabi Sotunde/Illustration)

This is a guest post by Allen Grane, research associate for the Council on Foreign Relations Africa Studies program.

In early April, South Africa issued its first sovereign bond in over two years. The ten-year, $1.25 billion bond was oversubscribed by a factor of two. This is the first international bond issued by a sub-Saharan African nation in 2016. It is likely to be followed by Kenyan, Nigerian, and Ghanaian issuances. Read more »

The Year China Solidifies the Renminbi’s Place in Africa

by Guest Blogger for John Campbell
Chinese President Xi Jinping, accompanied by his wife wife Peng Liyuan, walks with South African President Jacob Zuma upon his arrival at the Union Buildings in Pretoria, December 2, 2015. (Reuters/Sydney Seshibedi) Chinese President Xi Jinping, accompanied by his wife wife Peng Liyuan, walks with South African President Jacob Zuma upon his arrival at the Union Buildings in Pretoria, December 2, 2015. (Reuters/Sydney Seshibedi)

This is a guest post by John Causey, a private equity and transaction advisor with a focus on sub-Saharan Africa.

The U.S. dollar’s dominance in sub-Saharan Africa is no longer certain. Despite the current volatility of the Chinese renminbi an auspicious moment may exist for China’s currency to challenge the dollar’s hegemony in the region. Read more »

IMF Managing Director Lagarde’s Visit a Boost for President Buhari

by John Campbell
Nigeria's President Muhammadu Buhari and International Monetary Fund (IMF) Managing Director Christine Lagarde attend a meeting in Abuja, Nigeria, January 5, 2016. (Reuters/Afolabi Sotunde) Nigeria's President Muhammadu Buhari and International Monetary Fund (IMF) Managing Director Christine Lagarde attend a meeting in Abuja, Nigeria, January 5, 2016. (Reuters/Afolabi Sotunde)

President Muhammadu Buhari faces a serious economic crisis related to the plunge in the world price of oil, slow rates of economic growth, the prospect of rising American interest rates, a falling national currency, and declining government revenues. At the same time, he is working to restructure the economy away from undue dependence on oil by increasing infrastructure investment and vigorously pursuing an anti-corruption agenda demonstrated by the arrests of high-profile public figures. Read more »

Advancing African Development Through Intra-Continental Trade

by Guest Blogger for John Campbell
(L-R) South Africa's President Jacob Zuma, Senegal's President Macky Sall and Rwanda's President Paul Kagame participate in a panel discussion on the future of Africa during the U.S.-Africa Business Forum in Washington,  August 5, 2014. (Reuters/Jonathan Ernst) (L-R) South Africa's President Jacob Zuma, Senegal's President Macky Sall and Rwanda's President Paul Kagame participate in a panel discussion on the future of Africa during the U.S.-Africa Business Forum in Washington, August 5, 2014. (Reuters/Jonathan Ernst)

This is a guest post by Fily Camara, an intern for the Council on Foreign Relations Africa Program. He is a masters candidate at New York University.

Intra-African trade has been only eleven percent of the continent’s total trade over the last decade. By comparison, more than sixty percent of Europe’s trade is intra-continental. The equivalent figure for North America is about 45 percent and for Asia it is about twenty-five percent. The small scale of Africa’s intra-continental trade reflects the continent’s dependence on foreign markets for the vast majority of their trade relations. African policymakers, as well as their Western counterparts, have long acknowledged the need for more intra-continental trade. It is a paradox that, for much of Africa’s postcolonial history, it has been a pioneer in regional integration. In addition to the African Union (AU), there are eight, smaller regional economic communities—many of which have successfully implemented common currencies and external tariffs in addition to cooperating on matters of security and justice. Nevertheless, commerce among countries in Africa remains low, with significant negative development ramifications. Read more »

The South African Roller Coaster

by John Campbell
South Africa's President Jacob Zuma speaks during his visit to the Lodewyk P. Spies Old Age Home in Eersterust, Pretoria, December 15, 2015. (ReutersS/Siphiwe Sibeko) South Africa's President Jacob Zuma speaks during his visit to the Lodewyk P. Spies Old Age Home in Eersterust, Pretoria, December 15, 2015. (ReutersS/Siphiwe Sibeko)

On December 10, President Jacob Zuma fired Nhlanhla Nene, the well regarded finance minister, and replaced him with the unknown and inexperienced David van Rooven. Though Zuma is not required by the South African constitution to consult with anybody on cabinet appointments, the fact that he did not inform his cabinet or provide public explanation for his removal of Nene and appointment of van Rooven may have been the last straw. Read more »