John Campbell

Africa in Transition

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

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Showing posts for "Foreign Investment"

Bans on Wildlife Trade Gaining Steam

by Guest Blogger for John Campbell
An elephant walks through a swamp during sunset in Amboseli National Park, January 26, 2015. (Reuters/Goran Tomasevic). An elephant walks through a swamp during sunset in Amboseli National Park, January 26, 2015. (Reuters/Goran Tomasevic).

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

At the end of May the Chinese government announced that following a one year ban on ivory imports, it will “strictly control ivory processing and trade until the commercial processing and sale of ivory and its products are eventually halted.” If the Chinese are able to follow through, this could be one of the most important actions taken to end the illicit trade of Ivory that is contributing to the decimation of elephant populations in Africa (China is the largest market for elephant ivory). Read more »

Somalia Ready for Oil Exploration?

by Guest Blogger for John Campbell
Engineers and visitors explore an exploratory well near Dharoor town, 350 km (217 miles) from the port of Bosasso on the Gulf of Aden in Puntland, January 17, 2012. (Abdiqani Hassan /Courtesy Reuters) Engineers and visitors explore an exploratory well near Dharoor town, 350 km (217 miles) from the port of Bosasso on the Gulf of Aden in Puntland, January 17, 2012. (Abdiqani Hassan /Courtesy Reuters)

This is a guest post by Alex Dick-Godfrey, Assistant Director, Studies administration for the Council on Foreign Relations Studies Program.

Last month, Soma Oil and Gas, a London based energy company, searching for hydrocarbon deposits off the coast of Somalia, announced that it had completed a seismic survey to ascertain the potential for recoverable oil and gas deposits. Although further details have yet to be released, chief executive Rob Sheppard announced that the results were encouraging. However, Somalia, and potential investors, should proceed with caution when considering entering this frontier market. Read more »

Looking Forward: Africa 2015

by John Campbell
A boy stands in front of wind turbines at the Ashegoda Wind Farm, near a village in Mekelle, Tigray, 780 km (485 miles) north of Addis Ababa, October 25, 2013. (Kumerra Gemechu/Couresy Reuters) A boy stands in front of wind turbines at the Ashegoda Wind Farm, near a village in Mekelle, Tigray, 780 km (485 miles) north of Addis Ababa, October 25, 2013. (Kumerra Gemechu/Couresy Reuters)

With over a billion people and the second largest continental landmass in the world, Africa is complicated and defies generalization. Yet, we do it all the time. Here are five trends to keep an eye on for 2015:

 

  1. A Resurgence of Afro-pessimism. For the past several years, the narrative about Africa has been upbeat, ranging from McKinsey and Company’s Lions on the move” to the Economist’sA Hopeful Continent.” That could change in 2015, with a militant jihadism in the Sahel, an implosion in South Sudan and the Central African Republic, and Ebola. Falling oil prices will also mean declining currency values and falling stock markets in oil-dependent states. But, Afro-pessimism can distort as much as ‘Africa rising.’
  2. Read more »

De Beers Diamond Moves Sales Army from London to Botswana

by John Campbell
A worker at the Botswana Diamond Valuing Company displays a rough diamond during the sorting process at the purpose-built centre in the capital Gaborone, August 26, 2004. (Juda Ngwenya/Courtesy Reuters) A worker at the Botswana Diamond Valuing Company displays a rough diamond during the sorting process at the purpose-built centre in the capital Gaborone, August 26, 2004. (Juda Ngwenya/Courtesy Reuters)

For the past century or so, big mining corporations have pursued their operations in Africa, but their senior management, marketing, and sales have been in Europe or North America. That is changing.

The government of Botswana and De Beers Group, the diamond company, agreed in 2011 that the latter would sort, value, and sell diamonds produced by the company Debswana, a joint 50/50 business venture between Botswana and De Beers that accounts for a third of Botswana’s GDP. For its part De Beers agreed to transfer its London based rough diamond sales to Botswana. The move involves the transfer of professionals, equipment and technology from London to Botswana’s capital, Gaborone. In November 2013, De Beers started diamond sales in Gaborone in a state-of-the-art facility. Batswana, nationals of Botswana, are about 50 percent of the de Beers’ employees in the sales division. Read more »

Huge Diamond Mined in South Africa

by John Campbell
A visitor holds a 17 carat diamond at a Petra Diamonds mine in Cullinan, outside Pretoria, January 22, 2009. London-listed Petra Diamonds said it expected a difficult operating environment going into 2009 and that it saw conditions improving by the end of 2010.  (Siphiwe Sibeko/Courtesy Reuters) A visitor holds a 17 carat diamond at a Petra Diamonds mine in Cullinan, outside Pretoria, January 22, 2009. London-listed Petra Diamonds said it expected a difficult operating environment going into 2009 and that it saw conditions improving by the end of 2010. (Siphiwe Sibeko/Courtesy Reuters)

Diamonds are associated with glamour and South Africa. The Cullinan Mine, east of Pretoria, is famous for diamonds of the huge variety, including the ‘Cullinan Diamond,’ at 3,106 carets, the largest gem quality diamond ever found. The owner presented it to King Edward VII in 1905, and the Great Star of Africa, which was cut from it, is in the scepter of the royal regalia used at the coronation of British monarchs. Read more »

Africa, The Summit and Development

by Guest Blogger for John Campbell
U.S. President Barack Obama (bottom row, C) waits to depart with other leaders after a family photo for the U.S.-Africa Leaders Summit at the U.S. State Department in Washington, August 6, 2014. (Larry Downing/Courtesy Reuters) U.S. President Barack Obama (bottom row, C) waits to depart with other leaders after a family photo for the U.S.-Africa Leaders Summit at the U.S. State Department in Washington, August 6, 2014. (Larry Downing/Courtesy Reuters)

This is a guest post by Owen Cylke. Mr. Cylke is a development professional and a retired senior foreign service officer with U.S. Agency for International Development.

References to development (even to the word “development”) do not appear in most of the reports on the recently concluded U.S.-Africa Leaders Summit. In this regard, I want to distinguish between “assistance” and “development,” between discrete projects on the one hand, and, on the other, the larger, more complex process of transforming economies, polities, administrations, and societies. Yet, the advancement of development is a stated goal of the president of the United States, the U.S. Agency for International Development, the Millennium Challenge Corporation, the World Bank, the International Finance Corporation, and the International Monetary Fund. Development also has the focused attention of African leadership as reflected in the policies and actions of the African Union, its development arm the New Partnership for Africa’s Development (NEPAD), the Africa Development Bank (AfDB) and the constitutions, policies, and actions of virtually every country on the continent. Read more »

International Finance: “Somalia is Different”

by Guest Blogger for John Campbell
Customers walk out of a Dahabshiil money transfer office in "Kilometer Five" street of Soobe village, southern Mogadishu, May 8, 2013. (Feisal Omar/Courtesy Reuters) Customers walk out of a Dahabshiil money transfer office in "Kilometer Five" street of Soobe village, southern Mogadishu, May 8, 2013. (Feisal Omar/Courtesy Reuters)

This is a guest post by Sarah Madden, volunteer intern for the Council on Foreign Relations, Department of Studies. Sarah is currently a student at Santa Clara University studying business economics and entrepreneurship. Her interests are in Africa, economic development, and emerging markets. Read more »

Is the IMF Going to Save Ghana’s Troubled Economy?

by Guest Blogger for John Campbell
U.S. Secretary of State John Kerry (L) and President of Ghana John Dramani Mahama attend the Ghana Compact Signing Ceremony at the State Department in Washington, August 5, 2014. (Yuri Gripas/Courtesy Reuters) U.S. Secretary of State John Kerry (L) and President of Ghana John Dramani Mahama attend the Ghana Compact Signing Ceremony at the State Department in Washington, August 5, 2014. (Yuri Gripas/Courtesy Reuters)

This is a guest post by Cheryl Strauss Einhorn, a journalist and adjunct professor at the Columbia University Graduate School of Journalism

Long hailed as evidence of Africa’s growing political and economic stability, Ghana is suffering a reversal of fortune. One week ago as President John Mahama arrived in Washington for the U.S.-Africa Summit, his government finally admitted it needed urgent help to fix its faltering economy and contacted the International Monetary Fund for financial assistance. Read more »

Bringing Solar Power and Hope to the DRC

by Guest Blogger for John Campbell
War-orphaned children sit in cardboard boxes at the Kizito orphanage in Bunia in northeastern Congo, February 24, 2009. (Finbarr O'Reilly/Courtesy Reuters) War-orphaned children sit in cardboard boxes at the Kizito orphanage in Bunia in northeastern Congo, February 24, 2009. (Finbarr O'Reilly/Courtesy Reuters)

This is a guest post by Allen Grane, former intern for the Council on Foreign Relations Africa Studies program. Allen is currently an officer in the Army National Guard. His interests are in Africa, conflict, and conflict resolution. Read more »

Nigeria’s Oil Industry

by John Campbell
Men suspected to be involved in oil theft are paraded to the media at a military base in Yenagoa, March 28, 2014. (Stringer/Courtesy Reuters) Men suspected to be involved in oil theft are paraded to the media at a military base in Yenagoa, March 28, 2014. (Stringer/Courtesy Reuters)

The Nigerian Daily Independent recently published remarks by Mutiu Sunmonu, the managing director of Shell Petroleum Development Company of Nigeria (SPDC). The remarks provide insights into Nigeria’s oil industry. Read more »