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Shifting focus. How new Pentecostal churches transform African societies

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Jędrzej Czerep is an analyst, head of the Middle East and Africa Programme at the Polish Institute of International Affairs (PISM). He works on a book “Kingmakers” exploring political outreach of the new religious movements across Africa. Capital’s Groum Abate talked to him about his book, which he is working on currently. Excerpts; 

Capital: What factors have contributed to the rise in influence and power of Pentecostal pastors in Africa?

Jędrzej Czerep: Historically, Pentecostalism grew out of practices rooted in personal, intense experience of the works of the Holy Spirit. However, many of the newest churches rapidly expand because they focused significant attention on the attractiveness of their services. These resemble shows of pop stars, or motivational speakers, often involving live music. Emotions fly high, there is this ecstatic feeling in the air and the faithful feel like they have joined the winners club. But there is a well-developed, down-to-earth part to it. Churches are often run like successful enterprises – quickly accommodating wealth and diversifying portfolios. Pastors embody success and become a new type of elite. As they become influencers and opinion leaders, their words resonating among big audiences matter. Political establishments understand they have become a force to reckon with.

Capital: How have Pentecostal pastors in Africa been able to amass significant wealth and resources?

Jędrzej Czerep: There are diverse sources. There are, of course, contributions from the faithful, in different forms. They are generally happy to do it, as they see it as seed-sowing, which will bring returns. Not in the afterlife, but in the here and now. That’s the “prosperity gospel” – a critically important ingredient preached in the new mega-churches. Then, there are investments in real estate, hotels, and many other branches. Religious tourism is a huge thing: in fact mega-churches become one of the main drivers of intra-African tourism. It was said that Lagos-based Synagogue Church of All Nations (SCOAN) founded by the late T.B. Joshua was a top destination for foreigners travelling to Nigeria. In Zimbabwe and many other places, this potential is being explored as well. As becoming rich quick is seen as proof of God’s grace, than the faithful see amassing wealth by their leaders as proof of their spiritual qualifications. This discourages pursuing transparency. Political establishments, who seek pastor’s favour, tend to discourage that as well.

Capital: What role does the media play in enhancing the prominence of Pentecostal pastors in Africa?

Jędrzej Czerep: New churches are extremely media-savvy. The “do-it-yourself” media movement started with the launch of Emmanuel TV by SCOAN back in 2006, after Nigerian authorities banned popular miracle-making programs from national TV. Now churches typically run their own TV stations, mostly broadcasting sermons, and multiple social media channels, often in a very professional manner. In fact this style influences other denominations. You see other Christian, or Muslim preachers copying it not to lose ground.

Capital: How do Pentecostal pastors in Africa exercise their influence over government and politics?

Jędrzej Czerep: During election campaigns, politicians feel obliged to present themselves as being close to pastors, which, they believe, would win the support of growing Pentecostal constituencies. This puts churches in favourable positions. After pastors played a huge role in Kenya’s 2022 elections, prayer sessions started to be held in the State House. Certainly, tension around the secular nature of states grew under pressure from the pastors, many of whom openly question it. South Sudan’s Salva Kiir granted T.B. Joshua a government position and credited him for helping form the government of national unity in 2020. In the DRC, pastor Olivier Chekinah runs a shuttle diplomacy on behalf of president Tchisekedi, but also brings his own agenda to the table: he helped the Australian mining company for whom he worked to be considered for building the Gran Inga dam. In Zimbabwe, a similar relation was even officialised: pastor Uebert Angel was named the country’s ambassador at large, tasked with bringing investors, and given an office in the presidential palace.

Capital: Are there cases when foreign powers use those churches to win more influence?

Jędrzej Czerep: This is, of course, a reverse side of the same medal. As the US-based churches are often partnering with those in Africa, they become transmission belts for ideas developed in the southern states, the so called Biblical Belt. Israel benefits from many of the churches’ attitudes when they lobby for moving their countries’ embassies to Jerusalem. Russia attempted to win support for its imperial narrative by building ties to churches and conservative Christian activists in Africa. It even tried to put on its payroll a pastor standing as a presidential candidate in Madagascar. That, however, failed. Africans never bought into twisted ideas justifying aggressive Russian war in Ukraine in religious terms. That was because big, Nigerian Pentecostal churches, such as Enoch Adeboye’s Redeemed Christian Church of God (RCCG), had a significant presence in Ukraine. When the Russian invasion began, they focused on the safety of their faithful. Thus, attempts to rhetorically turn victims into attackers didn’t work.    

Capital: What are some examples of controversial practices or teachings associated with Pentecostal pastors in Africa?

Jędrzej Czerep: Currently the biggest controversy is about “miracle money”, promoted by some pastors, such as Nigeria’s Apostle Suleman. During sermons he tells people to check their bank accounts and some claim seeing records of mysterious transfers. Majority of the onlookers decry this as exploiting peoples’ naivety. There is also the question of raising the dead. In 2019 in South Africa a video circulated of pastor Alph Lukaku “resurrecting” a dead man. It looked very staged, many people laughed it off and eventually he admitted the man was not dead. Afrobarometer survey revealed trust to religious leaders plumped in South Africa following this and other scandals. Generally, I see such scandals as a result of growing competitiveness among churches. You need to put something exciting on the table to keep your audience. Also, as starting a new church becomes an attractive option for elevating one’s social and material status, it is unsurprising that some dubious figures declare themselves pastors. Controversies follow suit.  

Capital: What are the long-term implications of the growing powers of Pentecostal pastors on African society and culture?

Jędrzej Czerep: Although churches provide inclusion into mutual support networks, a kind of insurance in the uncertain times, the “prosperity gospel” is a very selfish one. It narrows one’s perspective to their own. There is not much community in it. In fact, I would risk a hypothesis that it runs against maintaining traditional African communitarianism. Churchgoers, like readers of “Get rich quick” handbooks, may think: “Maybe it was the very sharing nature of our cultures that kept us poor?” Therefore a switch to a very selfish mode may seem like a good idea, especially if pastors say God wants it.

In his recent book, American-Nigerian writer Ebenezer Obadare decried that growth of new churches dethroned writers and public intellectuals from the position of moral authorities in his native country. That role is now fully in the hands of pastors. There is therefore, the risk of a major shift in where and how to seek solutions to states problems. In this case, he argues, the general public favours supernatural explanations over knowledge-based reflection. This may negatively affect the ability of African states to improve.

There is also a trend, in some states, to see those super-rich pastors, such as the Malawian-South African Shepherd Bushiri as a vanguard of a new, black, economic elite, a challenge to post-colonial networks. While I wouldn’t bet on that optimistic perspective, those mega-churches succeed in finding followers across the globe. Therefore they also help promoting African states, and change perspectives on Africa, prove they can compete on the global market of ideas.

Obstacles threaten Ethiopian Turmeric export growth, spice industry seeks solutions

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By Muluken Yewondwossen

Ethiopian spice exporters are expressing worry over the potential negative impact on the generation of foreign exchange caused by the decision to forgo the use of a drying system for turmeric. Turmeric holds significant promise as an export commodity for Ethiopia, as industry experts and exporters recognize its potential. Ethiopia specifically cultivates the highly valued Alleppy variety of turmeric, known for its robust flavor, deep orange-yellow hue, and curcumin content of approximately 5 percent.

Unfortunately, the export of turmeric has faced a decline due to various reasons, including challenges in post-harvest processing. Addisu Alemayehu, the General Manager of the Ethiopian Spices, Aromatic and Herbs Growers and Exporters Association, as well as a researcher in the spice industry, acknowledges that although the country produces high-quality spices, the sector encounters difficulties. Around seven years ago, Ethiopia generated revenue exceeding six million dollars from turmeric exports, but since then, the figures have deteriorated due to several factors.

One of the main issues identified by Addisu is a quality problem associated with post-harvest processing. The traditional method of boiling and drying turmeric spices employed by farmers has proven to be a hindrance. “It is an outdated technique that often results in overcooking or undercooking the turmeric, thereby compromising the product’s quality and diminishing its value in the global market,” explains the spice researcher.

Drawing inspiration from Vietnam, a prominent turmeric supplier, Ethiopian researchers have reversed-engineered a slicing machine as an alternative to boiling. Addisu, who also leads Dabase Business Groups and DA Business Consultancy and Commissioning Plc, two companies involved in spice exportation and consultancy, highlights the advantages of this new machine. It not only helps preserve forests by eliminating the need for boiling turmeric but also addresses health concerns such as sunstrokes that affect women involved in the boiling process. Additionally, this innovation alleviates worries about overcooking or undercooking turmeric, which can impact its curcumin content.

According to Addisu, the traditional method of boiling turmeric can take up to 21 days to dry, whereas using the slicing method enables the spices to dry in less than four days. “This significantly reduces processing time,” he asserts, further noting that the improved technique allows for the processing of 12 quintals of turmeric per hour, compared to a mere 75 kilograms with the traditional system.

The general manager of the Bench Maji Coffee Farmers’ Cooperative Union, Getahun Tekle, affirms that the new technology can uphold international quality standards. “Preparing raw turmeric takes less time than boiling it,” he added.

Getahun told Capital that the new technique also supports ecological preservation by eliminating the need for deforestation to boil turmeric.

Experts emphasize that Ethiopian turmeric has a high concentration of curcumin, an antioxidant known for its health benefits, including cancer prevention and anti-inflammatory properties. The market for turmeric has grown by 10 percent annually over the past decade, with worldwide export revenue exceeding $500 million.

Addisu informs that the new machine has undergone testing and has been distributed to 138 farmers in the South Western region, the primary spice producer. These farmers have received training on utilizing the technology to maintain curcumin content and boost the demand for turmeric in Ethiopia.

However, they encountered an unexpected obstacle when the local authority prohibited farmers from using the coffee drying facility for preparing sliced turmeric. Addisu states that they have been attempting to persuade the regulatory authority by clarifying that there will be no impact on coffee quality due to the time gap between processing turmeric and the upcoming coffee harvesting season.

“We will have the drying facility ready before the coffee season arrives,” he declares.

Addisu explains that they have indicated that the turmeric drying process will not affect the quality of coffee, which is another important crop in the region. They argue that the coffee drying facility will only be utilized after the conclusion of the coffee harvest and processing period.

The coffee harvest and drying season typically lasts from September to mid-December, while the turmeric harvest begins in late December and ends in March. Addisu assures that drying turmeric in the same facility will not impact coffee quality, as the coffee drying facility remains empty for over five months before the next coffee season commences.

“The drying plant will be closed for five months until the next coffee harvest season after turmeric processing. If there are concerns about the test effect, there is ample time to clean it,” he explains.

Addisu further mentions that Vietnam, a major coffee producer, has a similar program, and they are open to accepting scientific arguments from those who opposed their use of the drying facility.

Despite a warning from the local coffee and spice office, producers are preparing to implement the plan.

Getahun stated, “We have completed the pilot, so we will proceed with drying turmeric on the same facility to ensure that farmers do not lose their business during the expected harvest season.” He suggests conducting a thorough investigation to provide scientific arguments at the Tepi Spices Research Center, which specializes in agricultural research on spices, and expresses hope that the problem will be resolved smoothly.

While a solution has not yet been reached, the Ethiopian Coffee and Tea Authority (ECTA), the relevant regulatory body for the spices industry, has been informed about the situation, according to Getahun.

Moges Ashenafi, the team leader for Spices Extension and Production at ECTA, acknowledges that although his department primarily focuses on the agricultural development of spices, he is aware of the recent developments related to the post-harvest issue. He further explains that the authority is in communication with relevant government bodies in the region to find a solution.

Despite efforts being made to redirect the sector, Moges highlights that government neglect has had an impact on the spices industry. To alter the course of the industry, a long-delayed directive was ratified and became applicable in March of the previous year. The challenges, which span from production and productivity to post-harvesting and marketing, have not received sufficient attention.

A researcher in the spices industry estimates that up to 75,000 households engage in agriculture each year, cultivating turmeric on over 10,000 hectares of land.

While the South Western region is the country’s largest producer of spices, there are potential areas in the western section of the country where commercial coffee farmers, particularly those around Metu and Agaro in the Oromia region, are making efforts to cultivate and export turmeric.

“Our study suggests that turmeric exports, which is indigenous to Southeast Asia and the Indian subcontinent, could bring in more than $33 million for the nation,” explains Addisu. India, which holds a 75 percent market share and is the world’s largest exporter of spices, is one of Ethiopia’s top export markets. Other key markets include Bangladesh, Pakistan, Turkey, the United Arab Emirates, Saudi Arabia, Yemen, and neighboring countries.

Experts emphasize that some of the largest importers of Ethiopian turmeric, such as India, reprocess it before shipping it to the major Western market, which is experiencing growing consumption due to its health benefits.

In the market where India dominates, Ethiopia is listed as the sixth-largest participant, with an annual production of 490,000 quintals.

They state, “If we improve the quality and packaging, we have the potential to access new and high-value markets like the US.”

In addition to the Alleppy variety, there is another type of turmeric known as Madras turmeric. However, this variety is less popular in the market due to its lower curcumin content, approximately 2.5 percent.

NIB reports strong financial performance despite leadership disagreements

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By our staff reporter

Nib International Bank, one of the largest banks in Ethiopia, achieved remarkable results for the fiscal year ending on June 30 of the previous year. Despite some leadership disagreements that required intervention from the National Bank of Ethiopia during the board of directors election at the general assembly, the bank reported overall satisfactory performance.

According to the annual report, Nib International Bank maintained its growth trajectory, with an increase in overall income of more than a quarter, reaching 8.9 billion birr. Specifically, the bank’s income grew by 27.5 percent, or 1.9 billion birr, compared to the previous fiscal year ending on June 30, 2022.

During the specified period, the bank generated a profit before tax of 2 billion birr, marking a 12 percent increase compared to the same period in the previous year. The bank’s profit after tax amounted to 1.5 billion birr, representing a growth of over 12 percent, or 168 million birr, from the previous year.

Nib International Bank experienced substantial growth in its total deposit mobilization, reaching 59.4 billion birr, a 19.3 percent increase compared to the previous year’s balance of 49.8 billion birr. The number of deposit accounts also rose by more than 28 percent within a single year, surpassing 2.7 million depositors.

The bank’s total outstanding loans and advances at the end of the 2022/23 fiscal year amounted to 53.3 billion birr, an increase of 14.3 billion birr from the previous fiscal year’s figure of 38.9 billion birr.

In terms of assets, Nib International Bank observed significant growth, with assets reaching 77 billion birr, a rise of 15.5 billion birr compared to the previous year. Net loans and advances constituted the largest component of total assets, accounting for 69.2 percent, while liquidity represented 15.7 percent, or 12.1 billion birr.

The bank’s total equity also increased to 10 billion birr, reflecting a growth of over 13 percent. Additionally, Nib International Bank raised its paid-up capital by 24 percent, surpassing 6 billion birr compared to the previous year’s 4.8 billion birr.

Although the earnings per share (EPS) experienced a slight decline during the indicated period, largely due to the aggressive capital increase, the bank’s EPS for the year was reported as 139 birr of its par value of 1,000 birr. This represents a decrease of nearly 5 percent from the 146 birr EPS reported in the 2021/22 fiscal year, which is a typical occurrence when capital increases are implemented, as experts have noted.

Lion Insurance achieves impressive growth, increases capital to 1.2 billion birr

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By our staff reporter

During the last fiscal year, Lion Insurance Company made the decision to increase its capital to 1.2 billion birr due to its impressive growth in premium income. The company experienced a significant boost in revenue, with a 78 percent increase in the general insurance sector, reaching 823 million birr, and a total of 827.4 million birr from the life insurance sector in just four months.

In terms of total premium income, the company reported 363.4 million birr for the fiscal year, which is a remarkable 78.3 percent increase compared to the previous year’s 464 million birr. This growth rate surpasses the industry average of 37.5 percent, as per the company’s data.

According to reports, Lion Insurance Company retained 628.6 million birr from the total general insurance gross written premium income (GWPI) of 823 million birr, while ceding the remaining 194.4 million birr to reinsurers through various reinsurance arrangements. For the life insurance business, 969 thousand birr was ceded to reinsurers out of the 4.4 million birr GWPI, with the rest being retained.

Abrham Gebreamlak, the chairperson of the Board of Directors, revealed that the company paid a total of 292.8 million birr in compensation during the fiscal year. Additionally, they achieved 153 million birr from underwriting results and recorded a profit of 75.6 million birr before tax, marking an 18.3 percent increase compared to the previous year.

The company’s total assets have now reached 2 billion birr, leading to the decision to increase capital to 1.2 billion birr during the 7th emergency general meeting held on December 30, 2023. The net profit after tax for the company reached 70.6 million birr, as stated in the report.

Lion Insurance Company faced several challenges during the year, including an increase in bond compensation requests, a rise in vehicle accidents, foreign currency shortages, inflation impacting the cost of spare parts and maintenance, and the resultant impact on cash flow.

The chairman noted that the insurance sector has experienced a shortage of skilled manpower due to the need for expansion and the pressure to provide better benefits and wages, leading to a demand for a stable workforce.

The company’s total debt for the last financial year, including insurance contract debt, accounts payable, profit tax debt, and future deferred profit tax debt, amounted to 1.6 billion birr, indicating a 68.5 percent increase compared to the previous year.