Thursday, November 5, 2026
Home Blog Page 2550

PRINTING PASSION POSES PROBLEMS

0

Passionate printing of money has consequences, even when a country commands global reserve currency like the US. When it comes to creating money out of thin air, it is not like ‘the sky is the limit’ kind of thing. Even in the ludicrous universe of money printing, caution must still be exercised to avoid hyperinflation. Zimbabwe and Venezuela come to mind. Printing of money out of thin air would inevitably have delayed latent effects, even when done prudently. Phony money driven growth (in the world of the rich) or so-called development (in the case of the wretched) is what ails the current global economy. Obviously the rich states should have known better, given their core position in the world system. Unfortunately, these states refuse to reconcile their infantile economic (and other) desires about life with the reality of a finite planet!

The PIIGS (Portugal, Italy, Ireland, Greece and Spain) of the European Union are in particular trouble; to say nothing about the impending crisis we are going to face here on our continent. Money printing when considered as the only way out of troubling situations can have serious consequences in the long run. Greece is a member of the OECD, a club of rich countries, and yet, it is going through very hard times, just like the rest of us. One of the major reasons is its accumulated debt, massive debt! This debt is becoming even more unsustainable by the day, particularly after the TROIKA instituted the so-called adjustment/austerity program. Venezuela sits on top of the largest fossil fuel deposit in the world. Yet again, the country is undergoing serious turmoil; even food riots have become everyday occurrences. Brazil is a resource rich country with a not so small modern economy, by any stretch of imagination. In fact, when considered in terms of purchasing power parity (PPP), Brazil is amongst the top ten large economies in the world. It is also a member of the globally emerging economic block that goes by the name BRICS. Situations have also become explosive in Brazil. Grand political corruption, amongst other things, remains the major culprit. Its current economic contraction is unseen since the great depression of the 1930s. The moral is; in our complex world, the management of economies should never be left only to the manipulative politicos!

Africa should realize that there is no easy way out or shortcut to its development problematic. Continuously trying to resort to palliative measure will only aggravate the situation down the road. Amassing debt as if there is no tomorrow is at best foolish. Unfortunately, Africa’s elites (like many others elsewhere) never seem to conceive their countries or the continent’s future trajectory outside of the laid out temporal trappings, which are not going to bring salvation to its people. ‘Africa Rising’ is one of this frivolous meme concocted by the power that be to impart a sense of progress, where there is hardly one. The flaunted phony growth is unashamedly based on useless (conspicuous) consumption leveraging massive foreign loans. Such gimmicks only help to fool the sheeple and inflate the elites’ ego. If Africa continues to refuse serious contemplation/study/analysis about its future predicament, its fate is going to be ‘back to the future’, which includes colonialism, direct or otherwise! Today there are a number of African countries that are not able to pay salaries to government employees, without resorting to more loans from abroad. The highly talked about ‘growth’ figures of many countries are not based on sustainable structural transformation but rather on indexes that don’t mean much to the starving people!

In late modernity, income is/was not growing substantially to allow the consumption of ever-increasing supply of goods and services, all over the world. To balance this imbalance the global regime created credit/debt to increase superficial need. The superficially created demand, compliment of debt created out of thin air, has been sustaining the global economy for almost half a century. By now it is clear to perceptive readers that sustainability is not one of the overriding factors of the modern world system, both in the realm of social existence as well as in the world of the natural, hyped rhetoric aside. Time and again, the world has seen drastic consequences of unexamined, unsustainable and naïve undertakings by the politicos resulting in adverse consequences! One should acknowledge that in our increasingly complex world system, important matters like economic governance are bound to be unwieldy, to say nothing about the real challenges of limit to growth, ecosystem destruction, etc. Unless we urgently come up with mechanisms to change this archaic arrangement of yesteryears, humanity’s future cannot be assured!

This was first published in November 2016

King Charles keeps British colonial legacy mindset alive

The issue of abuses committed by UK troops has been left to civil society and remnants of freedom fighters for decades, while avoiding the focus of the country’s media and elites

By Westen K. Shilaho

The British Army Training Unit in Kenya (BATUK) in Nanyuki, some 195 kilometers north of Nairobi, has elicited controversy over the years. Britain has permanently stationed about 200 soldiers in Kenya at any given time since Kenya gained independence in 1963. The Kenyan government regards its military cooperation with Britain as strategic to its national security, and the British troops and their Kenyan counterparts hold joint training from the camp. Crucially, BATUK is central to Kenya’s contribution to the ‘global fight’ against terrorism as a reliable Western ally in the East African and the Horn subregion. Kenya, to critics, is a proxy in this counterterrorism campaign and acts at the behest of Western powers.

Historically, Kenya has prized its relationship with Britain. Kenya is the first commonwealth country that the British monarch, King Charles III, visited after coronation. It is testament to Kenya’s longstanding relations with Britain. It is also a dubious distinction that shows that the colonial hangover still runs deep in the country. Diplomatically, the two countries have hardly had frosty relations except on occasions when British envoys abandoned diplomatic niceties and pointedly criticized the Kenyan government for runaway corruption, and other state excesses. Mau Mau, a liberation movement that led an uprising against the British colonialists, was only unbanned recently in 2003. Kenya’s postcolonial political elite, offshoots of collaborators – home guards – naturally inherited British antipathy against the Mau Mau and maintained colonial era legislation that outlawed them. 

The British government has never acknowledged colonial era atrocities in concentration camps in Kenya that included rape, castrations, torture, and murder. The British monarch, during a state visit to Kenya last week, used the words “greatest sorrow and deepest regret” to describe “the heinous and unjustified acts of violence against Kenyans” during the fight for independence. These are vague words that did not include an apology or a pledge for reparations.

Previous Kenyan presidents had shied away from calling for reparations from Britain. So has the Kenyan media, ever unwilling to sharply frame public interest issues. For decades, this issue has been left to civil society and remnants of freedom fighters. However, President William Ruto unprecedently called for reparations during his meeting with the monarch for egregious atrocities committed against the Mau Mau and various other liberation movements and civilians during colonialism. 

The Kenyan government often describes its relations with Britain as warm and cordial despite an atrocious colonial legacy and the postcolonial atrocities by the British troops training from Nanyuki. The monarch described these relations as a “modern partnership of equals.” Critics do not see how a colonial power and its former colony can have such a relationship. They fault the military treaty between Kenya and Britain as a symbol of enduring neocolonialism, imperialism, and erosion of Kenya’s sovereignty. In 2021, the treaty was up for renewal and some voices called for it to be scrapped, but expectedly, it was extended for five more years. This, however, did not dampen calls for reparations and an end to the treaty. Kenya’s political elite is anglophile in orientation. This is why for decades the problematic relations with Britain have not received due attention.

To some residents of Nanyuki, BATUK is a boost to the local economy. Besides employment opportunities to some Kenyans from the area and other parts of the country, this military base has injected $40 million into the local economy since 2016. Whenever the British soldiers come, they spend generously, particularly on entertainment. It is a windfall to some businesspeople and workers. Once they leave, however, the town turns forlorn until the next batch of soldiers arrive. This financial gain is what, to critics, made successive Kenyan governments unable to rein in rogue British soldiers or end this treaty altogether. It is not all glamour with BATUK, however.

This camp is a metaphor of gross human rights violations. Uncleared munitions at the training camp have caused untold suffering to children and adults over the years, but the victims have not had justice. Residents lost lives at the hands of the British soldiers, but no one has been held to account. The military treaty does not explicitly accord the British troops immunity against criminal prosecution, but has a caveat that effectively does. Law-breaking British soldiers can only be tried in Kenya with the agreement of the UK government. It explains why the Kenyan authorities have not held errant British soldiers criminally accountable and the UK government liable for the atrocities associated with its troops. Insidiously, the treaty ringfences British military interests and personnel in Kenya against accountability.

Cases of people being maimed by unexploded ordnance are common in Archer’s Post, an area not too far from Nanyuki. The victims have lost limbs, eyes, hearing, and even life owing to uncleared training grounds. Some of the victims have been compensated, but many more have not, or never will be. Some of the victims lost their cases on technicalities. When injured, disputes sometimes arise as to whose unexploded munition it was since Kenyan and British troops train in the same area.

British troops have also been accused of raping Kenyan women with impunity over the decades. The plight of these victims is never taken seriously, owing to the lack of political will to stand up to the British. The balance of power between Britain and Kenya is lopsided, weighted heavily towards Britain. Ordinary Kenyans’ lives are trivialized by the government’s unwillingness to fight for them.

One of the most egregious cases of impunity by the British troops in Nanyuki is the murder of a young Kenyan woman, Agnes Wanjiru, whose body was dumped in a hotel septic tank close to the camp in 2012. She had been seen alive in the company of a British soldier. The suspect showed other soldiers the body and the murder was reported to senior British officers, but no action was taken. The suspect was allowed to leave Kenya and while in Britain, allegedly casually confessed to colleagues that he murdered the woman. This story was broken by the British media and half-heartedly amplified by the Kenyan press. Authorities in Nairobi showed a nominal interest in the case to save face. The government and media’s first priority appeared to be damage control, not concern for justice for Wanjiru – or for others who have been maimed and died over the years courtesy of British troops. 

Once the story fell off the front pages of newspapers and prime time headlines, the government went back to default settings. They could not afford to associate BATUK with atrocities and jeopardize their relationship with Britain. The murder of Wanjiru was as much an indictment on the Kenyan government as it was on a military treaty that enables the commission of gross human rights violations in Nanyuki and its surroundings without accountability. It highlights racial undertones in the relations between the two countries. Whiteness shields these British troops from justice and the authorities of Kenya and Britain seem to converge on this recalcitrant legacy of impunity.

Despite lone voices from social media and civil society who question the relevance of BATUK 60 years after independence, the military pact is likely to exist far into the future and its supposed benefits overplayed. The British monarch was obsequiously accorded red-carpet treatment throughout his four-day state visit to Kenya. Consciousness about the disturbing relationship between Kenya and Britain is yet to take hold in the imagination of a critical mass of Kenyans. Until that happens, troops associated with BATUK will continue to hurt Kenyans without any recourse to justice.

Dr. Westen K. Shilaho is Senior Research Fellow in Institute for Pan-African Thought and Conversation, University of Johannesburg

Hydropower export booms despite drought scare

0

By Eyasu Zekarias

Despite the instances of drought creeping up in the country, the Ministry of Water and Energy announces that the trajectory of power generation through hydropower has increased.

In 2022/23, Ethiopia generated hydropower for neighboring countries Sudan, Djibouti and Kenya.

According to Eng. Habtamu Itefa (PhD), Minister of Water and Energy, the country in the concluded fiscal year supplied 1.7 million GW hour of electricity, which was an increase of 15 percent over the spread of the past five years.

As the Minister depicted in a recent encounter with media, “This export capacity has increased over the last five years by 15%. In 2019, the export capacity was only about 1 million GW hour, but now the figure is 1.7 million GW hour which is about 15% every year.”

“The energy potential generation capacity that we got this year, could achieve 5.42 GW generation capacity including that of GERD,” revealed Eng. Habtamu.

“Having sufficient water capacity to generate hydropower will make us better than other parts of the neighboring countries,” cited the minister, adding, “The investments made so far in building various electricity lines connecting from Ethiopia to Kenya and Djibouti, will be instrumental in our endeavor.”

When asked about the effect of the drought on hydropower generation, the Minister acknowledged that the drought had caused a drop in rainfall. However, Eng. Habtamu pointed out that, “With regards to water levels of the dam due to insufficient rainfall, the ministry had contingency strategies in place to maintain the water level in the reservoirs so that the generation capacity could not be reduced.”

Illegal khat trade hard hits Ethiopia with $144 million loss 

0

By Eyasu Zekarias

Illegal trading of khat deprives the country of much needed foreign currency.

As reports show, in the 2020/21 fiscal year, khat exports reeled in USD 402.6 million, but in 2021/22, the figure dropped to USD 392.2 million. As the Minister of Trade and Regional Integration (MoTRI) revealed to Capital, in the FY2022/23, $248.2m was earned from the khat business, which was down 144 million dollars in revenue from the previous fiscal year.

The ministry is now taking aggressive steps to crack the whip on the illegal trade as it seeks to stabilize the market through the lifting of gate and overlapping taxes with regards to khat export trade.

As Belayenesh Regasa, Communications Executive at MoTRI informs Capital, “Ethiopia is not getting the income it deserves from exports because of illegal businesses.”

Out of the 4991 licensed khat businesses across the country, only 486 have exported at least once in the fiscal year 2022/23. Out of the 645 exporters who sent in 2021/22, 162 of them sent only once in this FY, according to the information obtained from Capital.

To gain full clarity on who conducts such trades in a legal manner, the ministry recently issued requirements to remove illegal traders from the trading system through issuing licenses for khat businesses and new exporters.

The new move which has been enacted from November 7 and lasting up to November 25 will see new license applicants being obligated to provide a vehicle equipped with GPS with a covering net capable of transporting khat products. The go ahead is said to be given through a pre-license confirmation to send at least 100 metric tons in the fiscal year.

Data centers grow in popularity, investment underway to capitalize on demand

0

By Eyasu Zekarias

As the need for data grows, more than 5 data centers have shown interest though submission requests to invest in Ethiopia, in the last three years alone, which has pushed the government to include such centers within the umbrella of the country’s “Investment Promotion Plan”.

According to sources, the government and private financial sector in Ethiopia will be able to access the data in one center at a benefit of operating it at a low cost.

In a forum held at Sheraton Addis on November 8, the Minister of Innovation and Technology, Belete Molla (PhD), stated that Ethiopia is working with various entities to develop data centers.

Among them is one, Wingu Africa, which is providing services in four African countries, and has invested in the country’s ICT Park.

Wingu Africa, which has been operating in Ethiopia for 18 months now, pointed out that its firm has become convenient to aiding work for financial and technology institutions since they get to use the center without spending a lot of money to build their own data center.

As analyzed data shows, about 90 percent of those who run data center are Ethiopians. This move has played an instrumental role in creating jobs for young Ethiopian in the field of technology engineering.

As Henok Ahmed, CEO of IT Park Corporation, signaled out, the corporation’s biggest objective is to create an environment that allows ease of doing business.

“We are also working with huge international technology companies such as Microsoft, TikTok and Meta (formerly Facebook) to come to this country,” stated Wingu Africa executives, whilst highlighting the company’s breadth and depth of experiece.