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Primary education without government coercion: The case of Cameroon, by Chofor Che, originally published at 28 August 2015

On Thursday the 20th of August 2015, the government of Cameroon closed down over 250 so called clandestine primary schools. This government measure also included the closing down of some Muslim religious institutions which the government claimed were operating without authorization. According to a report by Africa 24 aired on television on Sunday the 23rd of August 2015, these measures are being put in place because the government of Cameroon cannot allow unauthorized institutions of primary education continue to function, especially as some government officials claim that the teachers are not well trained to properly teach children. Other analysts add that due to attacks by the Islamist sect, Boko Haram, such establishments could attract bomb attacks and thus a bad omen for state security.

This scenario raises a lot of contentious issues. Is this a situation of government coercion against freedom to primary education or does the state have the obligation to ensure that poorly trained teachers do not impart wrong knowledge to young Cameroonians? In the context of the war against the Islamic sect Boko Haram, is the state of Cameroon correct to take such measure for the security of the whole country?

In Eamonn Butler’s 2014 publication entitled ‘Foundations of Free Society’, he alludes that according to a study by Professor James Tooley, it was proven that in countries like India, Ghana, Nigeria and Kenya, most children were attending non-government schools. Many of these schools were unofficial schools not recognized by government. Some of these schools received charitable assistance and none benefited from state funding. Even in such circumstances, children who went to such schools performed better than those in government schools. Professor Tooley also found that in government schools the rate of absenteeism was very high. Private schools had better facilities including toilets.

A recent study by the Cameroon based Central African Centre for Libertarian Thought and Action shows that indeed like in the cases of India, Ghana, Nigeria and Kenya, private education especially at the primary school level furnishes better results in subjects like mathematics and general knowledge. Therefore the state of Cameroon needs to rethink measures on promoting primary school education. Closing down over 200 primary schools is not an appropriate policy measure.

Rather than closing down these establishments promoting primary education, there was need for the government of Cameroon to instead allow these establishments function and improve the teaching capacity of teachers via training programs. Such a measure will go a long way in improving the quality of teaching in these establishments.

Several private establishments are not registered because of heavy taxes levied on them by the state. In this respect the proprietors of these institutions prefer to run them without proper authorization. Being unauthorized does not mean that the quality of education is poor. Therefore it is important for the state of Cameroon to ensure that registration and taxation methods in place are favorable for private establishments to be created and stay in business.

Refining the curriculum of private institutions and making sure it meets the expectation of an emerging economy is germane. Rather than closing down these private establishments, the state of Cameroon could have also assisted these private establishments by refining their curriculum and ensure that it meets the expectations of development objectives of the state.

Private public partnership is an emerging phenomenon that improves quality of services as argued by certain economists. In this vein, rather than closing down private institutions involved with primary education, the state of Cameroon may have considered partnership agreements between some of these private institutions with state institutions, so as share best experiences and close up loopholes, for the betterment of young Cameroonians.

Not all Cameroonians have access to primary education, although this is a major objective set by the Millennium Development Goals, which was supposed to be realized this year, 2015. Private establishments promoting primary education can indeed make this dream come true if given the opportunity to do so by the government of Cameroon and most states around the world. All the same it is equally important for these private institutions to respect rules and regulations set in place by the state. Owing to the fact that terrorism is now a reality especially in the Northern part of the state, there is need for proprietors of privately managed primary schools to respect security measures and collaborate with the forces of law and order.

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Posted by on October 1, 2015 in Uncategorized


Harnessing the remittance market for development in the Central African sub-region by Asanji Burnley Nguh, 19 June 2015

Remittances have been identified as the third pillar of development as their volume is second to Foreign Direct Investment and three times higher than Overseas Development Assistance and are steadier than both private debt and portfolio equity flows. Analytical studies have shown that remittances contribute to poverty reduction in home countries. Remittances are an essential source of external funds for developing countries.

Since 2001, the transfer of funds by Cameroonians abroad to their home country has considerably increased, as testified by the multiplicity of financial companies specialised in the transfer of funds in Cameroon. The multitude of these canals renders impossible the evaluation of the exact amount of these transfers. All the same, going by the 2009 World Bank report, we note an increase of the approximate amount transferred from abroad each year by Cameroonians for the period 2001 – 2008. These amounts, are estimated at US $ 11 million in 2000, to US $ 103 million in 2004 and US $ 167 million in 2008, representing 0,8% of the GDP in 2008.

According to a 2010 World Bank report, in the eight countries belonging to the Central African sub region, remittances do not exceed Official Development Aid (ODA) and are low compared to the other African sub regions. This is partly due to a lack of data reported for half of the countries the sub region. Out of the recorded remittances going to the remaining four countries (125.3 million Euros), Cameroun receives by far the biggest share (86%).

Recognising that remittances are, above all, private funds, but which also offer development possibilities for entire communities and countries, how then, do remittances impact development in Sub Saharan Africa especially in the Central African Sub region and how can remittance flow be enhanced?  This write-up also outlines barriers to remittance markets in the Central African sub-region as well as possible recommendations.

According to the World Bank 2011 Remittance Markets for Africa report, remittances can affect economic growth in a positive manner by raising consumption and investment expenditures. Remittances also increase expenditures on health, education, and nutrition that contribute to long-term productivity; and by improving the stability of consumption and output at both the household and macroeconomic level. These benefits in turn increase the supply of investment from both domestic and foreign sources by increasing financial intermediation, which can ultimately contribute to higher growth.

The 2011 report also brings out the fact that economies in which the financial system is underdeveloped such as those of the Central African Sub-region, remittances may alleviate liquidity and credit constraints and help finance small-business investments, thereby effectively acting as a substitute for financial development.

Consequently, remittances are also of great importance to countries for maintaining external-sector balance and macroeconomic stability. These are some of the reasons why remittances have been receiving increasingly the attention of politicians and analysts.

It is worth noting that despite the development implications, remittance markets in the Central African sub region remain plagued with many challenges.

The remittance market in the Central African sub region is plagued by regulatory bottle necks. Existing policies in a number of countries in the sub region create barriers for deployment of these flows for national gain. Regulations that restrict, limit or authorize institutions to carry out foreign currency transfers include those regulating foreign currency management and authorizing institutions to perform foreign currency transactions.

The decision to allow a particular institution to perform international money transfers is instrumental to expanding financial access for remittance senders and recipients. Countries with more restrictions on outbound payments often belong to monetary unions, such as the Central African Monetary Union (UMAC) or have legislation dating from
before 1998.

Whereof, these policies are there to increase remittances flows in the sub region they rather hamper its development and thus needs to be improved upon for better results, they are either not being implemented or improved upon due to some factors such as;

  • The non-implementation of a regulatory framework to reduce transfer cost in the different corridors;
  • Lack of inclusive finance;
  • Lack of support to investment motivations of the Diaspora amongst others.

The Central African sub region remittance market exhibits a low level of competition and has limited payout presence in rural areas. Going by an IFAD report (Sending money Home to Africa, 2009), 50 per cent of the banks in the Central African Sub-region countries pay remittances, but the percentage jumps to 100 per cent in countries like Angola where only banks are allowed to pay. This situation strongly discourages other actors from entering the remittance market.

Exclusivity arrangements severely limit competition and create barriers to entry. Most regulations in the Central African Sub-region permit only banks to pay remittances. In half of the countries of the Sub-region, they constitute over 50 percent of the businesses paying money transfers. About 41 percent of payments and 65 percent of all payout locations are serviced by banks in partnerships with Western Union and Money Gram.

More than 20 percent of the people within the reach of Microfinance Institutions (MFIs) receive remittances. Yet MFIs currently represent less than 3 per cent of remittance payers. In countries where MFIs do pay remittances they often operate as subagents of banks. This can be seen in the Central Africa Republic where they have an impregnation rate of about 20 percent.

High remittance costs represent an unnecessary burden on Central African migrants. In a 2011 World Bank report based on IMF survey, almost 70 percent of central banks in the Central African Sub-region cited high costs as the most important factor inhibiting the use of formal remittance channels.

According to data from the recently released World Bank Migration and Development Brief 23 Report of 2015, the cost of remitting to the Central African Sub-region remains above global levels (11.3 percent of sending the equivalent of US $200, versus the global average of 7.9 percent).

The lack of readily available data on the remittances markets in the Central African sub-region is another major difficulty. Most  states do not report data on remittance outflows or inflows to the IMF Balance of Payments Statistics, which is the main source for the internationally comparable dataset of the Migration and Remittances Factbook produced by the World Bank.

Also, most of the money sent home by migrants is unrecorded, and therefore does not enter many countries’ national statistics. Development planners increasingly stress the importance of tracking this money. That will help governments try to increase remittances as a source of development finance and better channel them into productive sectors. This makes it difficult to compute the impact of remittances on the development of the sub region.

In the light of these obstacles, the following can be advanced as possible recommendations that can enhance financial access in the Central African Sub-region.

Firstly, regulatory reform is central to leveraging the impact of remittances. There are a range of businesses that have the operational and financial capacity to conduct transfers, but that are not permitted to do so. When banks can perform transfers and MFIs can only act as sub-agents, both institutions suffer as they encounter barriers or lack incentives to enter the market.

Allowing more actors to perform money transfers will expand the reach beyond banks and foreign exchange bureaus, allowing greater competition among Remittances Service Providers (RSPs).

While there are eight banks on average in each Central African Sub-region country, the MFIs impregnation in these countries is about 6.5%, half of which are regulated, and at least three or four of which could compete as payers.

The Central African Sub-region countries have a very low number of payout locations less than 34%. Bringing MFIs and post offices into the market would double the number of payout locations.

According to the IFAD 2009 report cited above, 4 (Cameroon, Congo, Gabon, and Equatorial Guinea) out of the 8 countries of the Central African Sub-region do make use of the Post offices for Remittances payment. Gabon has a Post Office impregnation rate of 50 percent, while Congo has 28 percent.

It is also important that governments provide to MFIs equal market access. This may be done by ensuring basic benchmarks regarding their capacity to comply with the standard regulations on financial crime prevention, cash flow and liquidity to cover payments, technological innovation, trained staff, market presence and financial service cross-sale.

Policies should be designed to increase financial sector development. This may be done by encouraging greater competition among banks and by promoting alternative providers such as microfinance institutions, credit cooperatives, and postal savings. In this way banks are likely to have a beneficial impact on the market for remittances.

Improving competition is germane. In order to improve on limited competition, there is need to phase-out exclusivity agreements and contracts that prevent agents from forming partnerships with other providers or that block competitors from entering the market.

Governments in the sub region should encourage competition through foreign currency market promotion. Competition is enhanced through the dissemination of information and networking tools.

Increasing the role of post offices in remittances can be facilitated by several policy measures. Post offices can partner with destination-country post offices, banks, and money-transfer companies to extend existing domestic money-order facilities to international remittances. Better coordination among the various regulating entities should be promoted to ensure better consumer protection.

High remittance costs represent an unnecessary burden on the Central African migrants. Reducing remittance costs can lead to increases in the remittances sent by migrants, in turn increasing the resources available to recipient households.

The extended geographical coverage of domestic mobile money services and the growing number of customers with access to mobile money accounts may be encouraged in the Central African region. This may entail the need to extend money access points to include ATMs and mobile wallets as well as agents in many countries. The adoption of these innovative technologies is still nascent and will vastly improve access to both remittances and broader financial services, including low-cost savings and credit products, for the Central African migrants and remittance recipients.

Measures that would encourage the expansion of mobile phones to cross-border remittances include (a) harmonizing banking and telecommunications regulations to enable mainstream banks to participate in mobile money transfers and for telecommunications firms to offer micro deposit and savings accounts; (b) ensuring that mobile distribution networks are open to multiple international RSPs instead of becoming exclusive partnerships between an international money transfer operator (MTO) and country-based mobile money services.

Furthermore, Technological development will benefit financial access, including the adoption of new hardware, the development of software platforms, and the adaptation and integration of existing technologies. In the case of remittances, the key to technological development lies in strengthening payment networks.

Finally, as yet, relatively little is known about remittances to Central African Sub-region. The key to both informed policy decisions and private-sector interest is the availability of timely, accurate information.

As more information becomes available on a regular basis, governments, the private sector and the donor community are each better able to play their roles in maximizing the impact of remittances.

Conclusively, good governance and sound economic policy initiatives are also essential if the potential of remittances are to be enhanced in the Central African sub region.

Asanji Burnley is a diplomat by training from the International Relations Institute of Cameroon (IRIC). He is President and co-founder of the Cameroon based Central African Centre for Libertarian Thought and Action (CACLiTA).

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Posted by on June 19, 2015 in Uncategorized


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Liberalisation: Key to catalysing the air transport sector in the Central African sub region by Sirri Caroline Nfornah, 18 June 2015

The air transport industry consists of activities that directly involve transporting people and goods by air, which includes airlines, airports and general aviation. It has a vital role to play in achieving sustainable development in the Central African sub region. The expansion of air services is a necessary condition for the development of a more diversified export base across the continent and for the expansion of tourism to the sub region. Improvements in the air transport industry would help to raise living standards and alleviate poverty by lowering transport costs, supporting more rapid economic growth and increasing personal mobility.

According to the African Union, ‘Aviation in general provides the only rapid worldwide transportation network, which makes it essential for global business and tourism – thus facilitating economic growth, particularly in developing countries.’ Liberalisation leads to increased air services, which in turn, facilitates growth in the sectors of the economy by supporting increased trade, attracting new businesses to the region, encouraging investment and enhancing productivity.

Liberalisation also offers efficient, competitive carriers an opportunity to enhance profitability by expanding into new markets, accessing a wider pool of investment and through consolidation.

There’ve been numerous initiatives and good efforts by governments of the Central African sub region to benefit from the opportunities of the aviation industry. The African Economic Outlook reports that there’s been an increased government-led infrastructure investment and modernization of Congo’s aviation sector- from the construction of new airports and the modernization of existing ones, as well as the expansion of the country’s national carrier’s footprint; Equatorial Congo Airlines( ECAir).

The domestic and sub-regional air service industry nonetheless has remained underserved, inefficiently connected, underdeveloped, and uncompetitive. Global bodies such as the International Air Transport Association (IATA), African Union (AU) Commission, Economic Commission for Africa (ECA), and the African Airlines Association (AFRAA), as well as African Civil Aviation Commission (AFCAC) are worried that until African governments liberalise the air transport sector, the much-desired development would continue to be wishful thinking.

Their worries are not baseless because the absence of an air transport policy that would define how the industry would be positioned is not in place. There has to be policy that would assist the industry to chart the way forward for Africa’s in general and particularly Central Africa’s economic development.

The Central African aviation industry has been facing a number of problems over the past decades including; poor management, government involvement, financial constraints, monopoly and increased safety and security measures amongst others. The aim of this write up is to show how the Central African sub region, like the rest of the aviation industry elsewhere is facing challenges as well. The way forward gives various proposals as to how states in the Central African sub region can reap the benefits of opening up their skies and improving the aviation industry which is critical to the African Union (AU)’s Agenda 2063.

So what is behind all these casualties, and how can the countries in this sub region maximise the potentials enshrined in the air transport sector? In other words, the above facts suggest the need to examine the operating environment to identify factors which are stifling efficient aviation in the Central Africa sub region.

The numerous initiatives and good efforts to benefit from the opportunities of the aviation industry in the Central African sub region have either been too little and/or too slow.  Many reasons can account for the above assertion: inadequate infrastructure and man power, political intervention as well as governments’ control and monopoly over the industry.

A report on the implementation of the air transport policy by the Economic Commission for Africa (ECA) reports that more than any reason, the declarations of intent that Central African states have made regarding cooperation and integration have not been effectively carried out because of their lack of initiative, trust and the financial difficulties most of them are going through. While the studies which have been undertaken could have led to positive results, the cultural and political commitments have not been forthcoming.

It seems the abandonment of the Air CEMAC project by CEMAC Heads of State (Cameroon, Chad, the Central African Republic, Equatorial Guinea, Gabon, and the Republic of Congo) during the 12th Session of Heads of State in Libreville-Gabon has fallen foul of this interference. It should be noted that the community had planned for Air CEMAC to improve connectivity between the neighbouring countries in a region long starved of reliable air services. There were also plans for international routes to major cities such as Johannesburg, Dubai, Frankfurt and London.

These states have not been able to take several initiatives to enter into alliances that would have helped them to achieve the objectives of liberalisation. Because people are afraid of themselves, they refuse to integrate fully and completely.

Another challenge is also attributed to the economic and political situation of Central African countries. Since the early 1990s, these states have been experiencing political, economic and social turmoil. Their governments have not had the time they need to concentrate on developing the air transport sector, more specifically, airline cooperation and integration. They are still distrustful of each other and hesitate to commit themselves to cooperation and integration arrangements.

The 1999 Yamoussoukro Decision was signed by 44 African countries in 1999 as a key enabler for air liberalisation. The air transport sector in the Central African region is hampered by the fact that the implementation of the Yamoussoukro Declaration regionally has now become a political decision, because the airline industries ownership within the Central African sub region are mostly state-owned. It appears that fair play is not always observed, particularly with regard to operational approaches, whereby some airlines have tended to unfairly eliminate other airlines in order to monopolize the market.

The potential dominance and monopoly of some national carriers is a concern for certain governments. Throughout the sub region, a number of countries continue to restrict market access under the pretext that their national airline is not ready to compete in a liberalized market. They view airports as potentially monopolistic enterprises to be regulated and controlled.

Camair-Co is Cameroon’s new national carrier, succeeding Cameroon Airlines which collapsed in 2008 after an unsuccessful privatisation process. The carrier has a monopoly on its domestic routes where it had grown capacity in the past years, including a more than 57% increase on the largest route between the country’s biggest city Douala and the capital Yaoundé. Camair-Co continues to hold a monopoly, but profitability remains elusive.

Speaking at the Aviation Africa Conference in Dubai earlier last month, the chairman of Rwandair and former Ethiopian Airlines CEO Girma Wake said that while the ideas of consolidation always made great sense they fall down on political intervention and individual national protectionism and interests.

The problem is exacerbated by the European Union’s ban on several airlines for safety reasons. A lack of confidence in safety oversight has resulted in some airlines with good safety records being put on the list. Not surprisingly, about 80% of intercontinental traffic to and from Africa is carried by non-African airlines.

Local civil aviation companies in the sub region for instance, are often blacklisted because they do not meet international criteria and this black-listing remains a critical challenge for these countries in achieving international recognition in this regard. For example, the expansion of air traffic in Gabon has been affected by an EU blacklist of several Gabonese carriers, after an audit of the national civil aviation authority conducted in 2007 found insufficient compliance with European safety regulations and standards. As a result, some locally registered airlines are currently unable to land in Europe. The blacklist has prevented partnerships with local operators.

The World Bank’s Africa Infrastructure Country Diagnostics (AICD) study provides analysis of infrastructure gaps, including for aviation, where lack of airline competition and the development of regional airport hubs are noted as important constraints. Inadequate airport and other transport-related infrastructure weigh heavily on the sub region. Many airports are incapable of accommodating large aircraft and tend to have very few runways. For instance, air traffic control at the Douala international airport is seriously deficient; tend to be frequently poorly drained and overdue for resurfacing.

These highlight the failure of a number of governments and airport authorities to invest in infrastructures such as air navigation networks to improve safety standards. The poor infrastructure arises from decades of under investment by governments and neglect that has affected development in the air transport infrastructure.

If the aviation sector is to reach its full potential in the Central African sub region, priority should be given to a number of issues.

Firstly, the issues of state-control can be addressed by fully implementing of the 1999 Yamoussoukro Decision which was signed by 44 African countries in 1999 as a key enabler for air liberalisation. Liberalisation is an effective means to fuel the growth of low-cost competition, as well as removing some of the restrictions on air services. Therefore, collective effort from governments of the Central African sub region will be required to push forward the liberalisation agenda by fast pacing unilateral liberalisation, setting up independent regulatory bodies to reduce government involvement.

Governments should also provide other facilitator assistance, such as implementing global standards in safety, security and regulations, reducing high charges, taxes and fees and removing visa requirements for ease of movement across the sub region.

Improvements in the air transport infrastructure have a key role to play as a facilitator of and complement to policies that aim to improve living standards and alleviate poverty. When it comes to rolling out new projects and revamping existing infrastructure for the purpose of fostering economic development, public-private partnerships are key. Infrastructure allows state authorities to be in control of these projects while the management and maintenance is delegated to external, reputable private partners – companies that have the necessary knowledge, expertise and capacity. Private companies from outside can provide world-class expertise that meets international standards especially when one wants to create and maintain a level of confidence.

The Malabo Airport, used by over 600,000 travellers in 2013, has benefited from a public infrastructure investment that has upgraded all airports in the major islands, as well as the Bata International Airport in the continental region. This investment seeks to transform the capital into an air hub for the sub region and for the continent, with the aviation sector forecasted to be worth USD 860 million by 2020.

The Economist (2003) describes the lack of full liberalisation and the restrictions arising from this as one of the biggest dangers facing the global airline industry. Aviation makes a significant contribution to the global economy. In an increasingly competitive global environment, the Central African sub region can no longer remain isolated, but must pursue measures that make its aviation efficient and capable of withstanding the global challenge.

The conclusion is that Central African states need to reap the benefits of the current trend in the aviation industry, which includes building up an extensive global network to realize economies of scale and density and to meet consumer demands.

Mrs. Sirri Caroline Nfornah is the Public Relations Officer for the Central African Centre for Libertarian Thought and Action (CACLiTA), Cameroon. She is equally a trained diplomat at the Ministry of External Relations, Cameroon. She holds a Masters in diplomacy from the International Relations Institute of Cameroon and is currently an Atlas Leadership Academy participant.

Mrs. Sirri Caroline Nfornah is the Public Relations Officer for the Central African Centre for Libertarian Thought and Action (CACLiTA), Cameroon. She is equally a trained diplomat at the Ministry of External Relations, Cameroon. She holds a Masters in diplomacy from the International Relations Institute of Cameroon and is currently an Atlas Leadership Academy participant.

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Posted by on June 18, 2015 in Uncategorized


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Advocating for the envisaged African Free Trade Area, by Chofor Che

In late May 2015, How Africa published an article entitled ‘Africa About to Launch a Free Trade Area Bigger than the EU or NAFTA.’ According to How Africa, this laudable trade area is purported to be greater in population than the European Union (EU). How Africa adds that the big Free Trade Area (FTA) aims at merging Africa’s markets into one common market.  The launching of this project is envisaged to take place during the Tripartite Heads of State and Governments Summit on 10 June 2015 at the Egyptian resort city of Sharm El Sheikh. It is to be named the tripartite free trade area, composing of 26 states. How Africa opines that it will be the largest economic bloc in Africa and the likely pave the way for the creation of the Continental Free Trade Area (CFTA) come 2017. When this project goes operational, it will be the creation of a market of over 600 million people. Having a large FTA is a laudable idea, but are African states ready constitutionally and institutionally for such a large economic bloc? Can African states boast of a peaceful and stable environment to house this large economic bloc?

The US based Brookings Institute opines that 58% of Africa’s economic activity is to be covered by this pact, with over $1 trillion in Gross Domestic Product (GDP).  If successful, such an endeavor is to furnish the free movement of goods, services, people and capital across Africa.

Several Central African states like Chad, Cameroon and Equatorial Guinea are still grappling with issues like the protection of investor’s rights, execution of public contracts, the rule of law and property rights. These are elements very germane for free markets to flourish in Africa. According to the Doing Business Reports for 2014, states in the Central African region like Chad and Cameroon still lag behind with respect to the above mentioned indicators. Statistics from the International Monetary Fund (IMF) show that states like the Central African Republic and South Sudan have poor records with respect to investor’s rights and property rights, reason why certain states may delay the laudable plan of creating the largest economic zone on the continent.

State protectionism remains a problem plaguing free markets in Africa. There are still a lot of trade and tariff barriers hindering the free circulations of goods and services between African states. For instance IMF and World Bank statistics show that states in the Central African region like Chad, Cameroon, Gabon and Equatorial Guinea state harbor rigid trade and tariff barriers within their borders which hinder the free circulation of goods and services. This is indeed a bad omen for the creation of a large FTA in Africa.

States in West and Central Africa are still vulnerable to inflation.  According to the 2014 Doing Business Report, states like Chad and Equatorial Guinea still have a feeble monetary policy and do not guarantee the independence of this monetary policy from political authorities.

Logistical obstacles remain a big issue on the African continent which may retard the realisation of a FTA According to the African Development Bank (ADB), many states like Benin, Mali and The Gambia cannot boast of adequate infrastructure and logistics services. Such deficiencies increase transaction costs and discourage trade.

There is still conflict in South Sudan, some parts of the Democratic Republic of Congo and the Central African Republic.  Recently South Africa witnessed a wave of homophobic attacks. Burundi was recently plunged into turmoil over a presidential term of office broil.  With such squabbles all over the continent, it is hard for a large economic zone to be effectively created.

There is thus need for a change of events. Giving constitutional and legislative importance to property rights, the rule of law and a fluid environment for the execution of contracts in the Central African region would make owners of property to be assured enough to engage in activities of the envisaged large economic zone. Additionally if investor’s rights are protected constitutionally and with sound legislative instruments and local institutions, this will equally make them trust the envisaged large economic zone.

State protectionism needs to be dismantled for free markets to strive in Africa. Trade and tariff barriers need to be lessened to enable the free circulations of goods and services between African states. State intervention in the economy should be restricted by giving more economic freedom to individuals to consume, produce, and exchange.

Redressing the issue of inflation for free trade in Africa is thus important. Hence the need for sound monetary policies and the guarantee of the independence of monetary policies from political authorities is germane.

Several African states have to ensure that there are adequate infrastructure and logistics services in place to make sure the laudable FTA initiative does not fail. States like Mali and Benin need to invest in road infrastructure most especially.

It is vital for the governments to strengthen security and intelligence because this aspect on its own helps to reduce insecurity and insurgency brought about by high level of criminality such as terrorism. Investors will be reluctant to take advantage of a large economic bloc because they do not see how their human and capital resources can be protected. This then acts as a setback in an effective large economic zone for investors.

Chofor Che is an integral part of the Africanliberty’s Voice of Liberty initiative. He is an analyst at and Audace Institut Afrique. He is equally co-founder and chair of the Central African Centre for Libertarian Thought and Action (CACLiTA). This article was originally published at on 8 June 2015.

Chofor Che is an integral part of the Africanliberty’s Voice of Liberty initiative. He is an analyst at and Audace Institut Afrique. He is equally co-founder and chair of the Central African Centre for Libertarian Thought and Action (CACLiTA). This article was originally published at on 8 June 2015.

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Posted by on June 12, 2015 in Uncategorized


The challenges of fostering harmony amongst stock markets in the Central African region, by Asanji Burnley N and Chofor Che

The African securities market has witnessed serious development since the early 1990s, but the central African region has not benefited from this evolution. According to an article dated the 2 of April 2015 byThis Day Live, prior to 1989, there were just eight stock markets in Africa of which three were in North Africa and five in sub-Saharan Africa. Today, there are over 22 stock exchanges in Africa. Alongside the rapid expansion of stock markets on the continent, there has also been a significant growth in market capitalization and the number of listed companies.  At present, over 50 per cent of the 54 countries in the continent have formed securities exchanges.

In an effort to promote regional cooperation, individual African securities exchanges created an African Securities Exchange Association (ASEA) in 1993. The ASEA was incorporated in Kenya in the same year. Recently, there have been calls by interest groups for business combination of West African stock exchanges in other to foster unity and a wider securities market to ensure speedy development of the region in line with the ASEA objectives. Why has the Central African region not followed the example of West Africa? Is it a problem of lack of adequate constitutional and legislative parameters in the region? Is it a problem of lack of political will? Is it lack of personnel and institutions? If so what can be done to change the status quo for harmony and unity in the stock exchange market in the Central African region and in Africa at large?

Issues like the rule of law, property rights, protection of investor’s rights are fundamental to the constitutional and legislative environment governing Africa’s stock markets. According to the Doing Business Reports for 2013 and 2014, states in the Central African region like Chad and Cameroon still lag behind with respect to the above mentioned indicators, reason why this part of the continent lags behind when it comes to fostering unity and a wider securities market to ensure speedy development of the region in line with the ASEA objectives.

Lack of political will remains a canker worm in the African stock market environment. Many politicians, bureaucrats and lobbyists still prefer to make African stock markets weak because of selfish economic gains, especially making sure that their businesses are financed to the detriment of other growing businesses as argued by Sam Mensah and Todd Mos in a past article on African Capital Markets.  These lobbyists also influence the activities of stock markets so that they can control government shares in privitised companies.

Institutions like Central Banks and government ministries of finance called upon to coordinate affairs of the stock exchange markets in Africa remain wanting. These institutions still find difficulties in understanding and participating in the activities of Africa’s stock markets.

Cultural factors also contribute enormously to the Central African regions slow progress in the stock exchange sector.  A lot of preference is still given to hand to mouth consumption.  Consumers and investors remain reticent to invest in stock markets because of the risks involved. Another factor which contributes to the poor stock exchange market environment especially in the Central African region include ignorance on how the system functions and non-familiarization with the financial markets culture.

There is thus need for a change of events. Giving constitutional and legislative importance to property rights in the Central African region would make owners of property to be confident enough to engage in activities of stock markets especially in obtaining financing for their property. Additionally if investor’s rights are protected constitutionally and with sound legislative instruments, this will equally make them trust stock markets and eventually contribute to fostering unity and harmony in stock markets in the Central African region and in Africa.

Bureaucrats, politicians and lobbyists would definitely not stop influencing the activities of stock markets if there is no external push. It is this important for think tanks, journalists, university dons to continue to put pressure on them to allow the stock exchange sector function free from political influence and pressure.

Revamping Institutions like Ministries of Finance and Central banks called upon to coordinate affairs of the stock exchange markets in Africa is very important. Personnel working with financial Institutions in the Central African region need to be schooled about the activities of stock markets especially in Africa.

Respecting Africa’s cultural values is germane, but if such cultural practices impede on the development of the continent then we cannot continue to talk of Africa’s renaissance. States like Gabon and Equatorial Guinea most understand that collaboration with other states like Cameroon and Chad is necessary for unity and growth in the stock exchange sector regardless of whatever cultural differences.

This article is originally published in French at as ‘A quand l’intégration financière en Afrique centrale?’

Asanji Burnley is a diplomat by training from the International Relations Institute of Cameroon (IRIC). He is President and co-founder of the Cameroon based Central African Centre for Libertarian Thought and Action (CACLiTA), a partner of the Atlas Network.

Chofor Che is an analyst with Libre, Audace Institute Afrique and He is also co-founder and current Chair of Research at the Cameroon based Central African Centre for Libertarian Thought and Action (CACLiTA). He blogs at


Posted by on April 30, 2015 in Uncategorized


The need for institutional and political means to estop the precarious tampering with Constitutions of African states, by Chofor Che

The revision or modification of state constitutions is important especially if of utmost necessity to the betterment of the state, but there has been a precarious tampering of the fundamental provisions of constitutions in Africa. The case of Burkina Faso which has been plunged into political turmoil, to the recent case of Togo, are glaring examples. Interestingly, constitutional provisions related to the term of office of Heads of state have been modified so as to extend the term of office of these leaders in power. Is it that there are no legal and institutional measures in place to prevent these leaders and their regimes from manipulating fundamental provisions of state constitutions? Are there no political parameters that can be put in place so as to prevent these leaders from manipulating fundamental provisions of state constitutions?

In most African State Constitutions like the Constitutions of the Democratic Republic of Congo, Gabon and Equatorial Guinea, the provision on the mandate of Heads of State is easily modified. There are to provisions in these State Constitutions which prevent the manipulation of important provisions like the mandate of Head of States.

South Africa and Botswana have put in place Constitutional Courts which ensure that the separation of powers is upheld. For instance in South Africa, it is difficult for the executive arm of government to revise fundamental provisions of the 1994 Constitution. Other states like Togo and Burkina Faso put in place Constitutional Councils which have proven to be inefficient in preventing the manipulation of State Constitutions.

The balance of power amongst the executive, the legislature and the judiciary branches of government in African states, remain imbalance. The executive branch of government remains the most powerful. Judges of courts are still appointed by Heads of State and so pay allegiance to the head of this branch of government. With such a status quo, Heads of State will continue to manipulate fundamental provisions of State Constitutions so as to remain in power.

A weak opposition is also a major reason why leaders in Africa continue to manipulate state constitutions. According to an article dated the 18 of November 2014 by ‘Oeil d’Afrique’, political leaders of the Democratic Republic of Congo, Congo-Brazzaville, Burundi, Gabon, Senegal and Equatorial Guinea met in Paris and signed a declaration with aim to halt African Heads of State from modifying fundamental provisions of State Constitutions like terms of office in power. There is no gainsaying that holding such meetings and signing declarations is not a panacea to the status quo. Leaders of opposition parties in most African states have not been able to come to a consensus and select one candidate, during presidential elections.

African states cannot boast of a well-structured and institutional civil society which can be able to estop leaders from modifying fundamental provisions of State constitutions. According to a November 2014 report by France 24, civil society groups planned to join leaders of opposition parties in preventing the President of the Republic of Togo, Faure Gnassingbȇ, from manipulating fundamental provisions of the Constitution of Togo. This action was unsuccessful because civil society groups still do not have one voice as to why fundamental provisions like the term of office of the Head of State should not be modified.

The press in African State is still weak. Many African States like the Gambia cannot boast of an adequately independent press. Many journalists have been arrested and died in African prisons for opinions against the modification of fundamental provisions of State Constitutions.

There thus need for a change of the status quo. Constitutional drafters in collaboration with a vibrant civil society and leaders of political parties need to ensure that there is a provision in State Constitutions which prohibit the manipulation of the term of office of the Head of State.

One of the roles of Constitutional Courts is to check on the abuse of power by one arm of government. There is thus need for state institutions like Constitutional Courts and Councils to be able to challenge the modification of fundamental provisions of State Constitutions in Africa.

Civil society groups in Africa need to be well organized and have one voice when it concerns important issues like the manipulation of the term of office of Heads of State. In this same line, the Press in Africa needs to be vibrant and bold in speaking out against the modification of fundamental provisions of State Constitutions.
It does not suffice to only have a weak separation of powers as we have in most African states. There is need for institutional and political parameters to be able to stop the manipulation of State Constitutions.

This article is originally written in French and published at as ‘Comment stopper le tripatouillage des Constitutions en Afrique? on the 12 December 2014.

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Posted by on December 17, 2014 in Uncategorized



Concretizing The Peace Deal In The Central African Republic – Chofor Che , Published by, 4 August 2014

On the 24th of July 2014, France 24 reported that various armed groups met on Wednesday in Congo Brazzaville and agreed on a ceasefire. Over 170 Central African officials also took part in these talks, including members of transitional President Catherine Samba-Panza’s government, lawmakers, members of political parties and civil society. France 24 added that there has still been no agreement on important issues such as disarmament.

This very vital peace deal gives the Central African Republic (CAR) an opportunity to remain united and puts aside an envisaged division along religious lines of the war torn state between the Christian south and the Muslim north. The head of the Seleka delegation, Mohamed Moussa Dhaffane, reportedly, had earlier on demanded that a power-sharing deal was a precondition to any peace settlement. Guy-Herve Gbangolo, a representative of the Democratic Front of the Central African People, a militia group operating in western Central African Republic said such a demand by Seleka group was an aberration to a concrete peace deal.

This three-day meeting chaired by Congo’s President Denis Sassou Nguesso and supported by representatives of over 30 states was meant to resolve a calamity in the Central African Republic that has led to the death of thousands of civilians and produced more than a million refugees.

According to France 24, even as talks were going on Monday the 21st of July 2014 in Brazzaville, more violence broke out in the capital of the Central African Republic, Bangui. This fresh violence led to the death of a former Seleka rebel and sparked new attacks from the anti-Balaka militias.

The Central African Republic plunged into pandemonium in 2013 after the principally Muslim Seleka rebels took over power in a March 2013 coup d’état. This coup d’état was followed by looting, killing and raping between Muslims and Christians. The conflict indeed took the dimension of an inter-religious conflict. The United Nations warned the international community of an ‘ethno-religious cleansing’ in the conflict ridden state during an interview with FRANCE 24in February 2014.

It is important to applaud the efforts towards peace in the Central African Republic. All the same, Africans need to learn from the scenario of the Central African Republic which has led to thousands of deaths. One reason why we continue to have coups d’états in Africa is because regimes in place do not take the interests of individual rights seriously. Free markets are not promoted. Chronic bureaucracy and corruption remains the order of the day especially in states in the Central African region. State institutions such as the judiciaries remain weak and dependent on the executive branch of government.

States like the Central African Republic are very wealthy states but the populace keep on languishing in poverty. This is the reason why armed groups cannot sit back and see corrupt government officials plunder the state’s resources. It is thus vital that in ensuring that the peace deal succeeds, the interests of individuals should be taken into consideration. Free markets should be given a chance to strive in the Central African Republic. President Catherine Samba-Panza’s government needs to revamp the private sector and involve both the public and private sectors in policy formulation and implementation.

Disarmament is also crucial in ending the conflict in the Central African region. If both parties really want to end this conflict, then they have to seriously think about disarmament. If not the peace agreement will yield no fruits.

The African Union also needs to be serious about her role in curbing conflict on the continent.  For some time now this international body has received a lot of criticisms for not acting swiftly when a calamity befalls a member state. Why then should tax payers’ money be used for unimportant missions and conferences while Africans continue to die because of conflict? African leaders therefore have a lot to do in ensuring that peace reigns on the continent. We cannot continue to shove under the carpet real problems like youth unemployment and poverty which are serious contributing factors to conflict in Africa and at the same time talk about peace agreements.

A holistic approach which involves all and sundry is thus needed to curb conflict on the African continent such as the one in the Central African Republic. If such measures are taken into consideration especially by African leaders, then we can start envisaging peace in the Central African Region.

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Posted by on August 14, 2014 in Uncategorized


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