Connect with us

Politics

THE GENERATIONAL REVOLUTION: The case for a millennial-led makeover

13 min read.

The pent-up frustrations over the failures of previous generations, as expressed in the Elephant’s Millennial Edition, may signal the emergence of a new, urban counter-cultural movement. But can the new Kenyan riika do better than their elders? By USAMA GOLDSMITH

Published

on

THE GENERATIONAL REVOLUTION: The case for a millennial-led makeover
Download PDFPrint Article

Punctuated evolution describes how brief but explosive episodes of change have redirected the long course of evolution. The concept originated from Steve Jay Gould’s study of the fossil record. Several anthropogenic advances have likewise ‘punctuated’ the normal process of incremental change driving our species evolution: the discovery of tool making, emergence of human speech, domestication of plants and animals, and the four technological revolutions have all brought us to the current life-on-earth-threatening threshold.

On the much smaller scale of individual societies, progress results from the accumulation of many smaller steps. But sometimes an event, a creative work of art, disruptive invention, or insightful academic analysis coincides with other developments to ‘punctuate’ the dominant narrative. Even a seemingly isolated or random incident, like the story about a coke bottle dropping out of the sky in the Kalahari, can set a series of changes in motion.

Mohammed Bouazizi was not thinking about the Arab spring when he set himself on fire in Tunisia. The film Out of Africa of Africa was not expected to reconfigure Kenya’s tourism industry, but it triggered a boom leading to the sector’s diversification and unique new facilities. No one thought the international debate on neocolonialism spawned by Colin Leyes’ 1974 book, Underdevelopment in Kenya, would result in the legitimization of Kenya’s indigenous capitalism. By the same measure, the editors at The Elephant probably did not expect the Millennial Edition to feature at the front end of a larger social movement, although this might be in the making.

Maybe. The timing is right, the numbers are there, but Kenya’s power elite has countered the trajectory of reforms dating back to the 1990s. Economic liberalization, political pluralism, the 2002 opposition victory, institutional restructuring, a coalition government, and the new constitution have all failed to unlock the population’s aspirations.

If a government refuses to evolve by conventional means, why not a generational revolution?

The millennial writers’ personal vignettes hint at a vast reservoir of untapped power. Their collective angst should be seen as a warning. Their generation’s pent-up energies will either align with other factors to exert a system-changing impact across the region, or they will become another source of the country’s creeping entropy.

If a government refuses to evolve by conventional means, why not a generational revolution?

The Millennial Edition Revisited

Kenya’s millennials grew up during the time when concepts like sustainability, accountability, and transparency were driving global narratives. They came of age during the interlude punctuated by the fall of the Berlin wall, the collapse of Marxist and right-wing dictatorships, the rise of political pluralism, adoption of participatory development, and the expansion of higher education. The first generation to take digitalization for granted and to be connected by the spread of social media never had to stockpile coins for making a phone call. They are entering their prime during the period Barrack Obama proclaimed to be the best time to be alive in human history.

Under 35 Kenyans are the ostensible beneficiaries of these positive developments, but the succession of articles appearing in The Elephant depicts a different reality. The essays are articulate, entertaining, and illuminated by the authors’ personal experience. The diverse collection conveys a multidimensional and nuanced view on a variety of issues, but there some common threads.

The Swahili adage that states, ‘where the elders are present nothing will go awry’ attests to the gerontocracy’s role in African governance. But many among Kenya’s younger generations no longer accept the import of this ‘pasipokuwa na wazee neno haliharibiki‘ wisdom. They see the elders as the cause of their present predicament.

Joe Kobuthi’s essay, Starin’ at the World Through My Rearview, provides a comprehensive overview of his generation’s current dilemma. He cites Francis Fukuyama’s declaration that victory of liberal democracy signified the ‘End of History’ to set the stage for his assessment of developments in Kenya. The ascendency of the neoliberal monoculture that dovetailed with the end of President Daniel arap Moi’s rule promised a new start and the return to prosperity.

Kenyans were buoyed by the fast growing economy that reached 7.1 per cent in 2007. Economic rationalization appeared to parallel the normalization of politics. “Politics became just that, politics. It didn’t rule our lives or condition the shared positive perceptions of those times.” But these assumptions proved false, leaving most of his generation bogged down in a frustrating slog to survive. The reversal was largely due to the 2007 electoral fiasco reinforced the global financial meltdown of 2008. But the ‘Olds’ responsible for the domestic underpinnings of the malaise shifted the blame by castigating the millennials for being lazy and undisciplined.

“Not only are we screwed,” Kobuthi laments, “but also we have to listen to lectures about our folly from the people who screwed us.”

In The Revolution Won’t Be Instagrammed, Darius Akolla depicts the contrast between his generation’s prospects and those of his parents. He is the same age as his homeowner father was when he celebrated his birth as the household’s third child. But now the son and most of the university educated youth of his generation are caught in a syndrome characterized by temporary employment, late marriage, delayed parenthood, and jobless economic growth.

Okolla declares, “My father’s generation has contributed nothing meaningful to the country, whether politically, intellectually or economically, other than pillage and the accumulation of wealth.” In an essay following out of this polemic he details how his generation’s disempowerment has compromised perceptions their own masculinity.

Silas Nyanchwani’s The End of Empathy in Kenya describes how the country’s ethnic polarization is taking the nation down the path towards genocide. He concludes by stating, “The cowardice of the country’s elite to confront these problems head-on has made us emotionless towards each other’s plight.” The country’s entropic education system lies at the root of this and related problems: Mwangi Maina vents his angst over the “tribulations of experiencing an education system that is anti-black, dehumanizing and misogynistic.”

Kenya’s retrogressive politics are one of the Edition’s reoccurring themes, and the series of false dawns contributing to the millennials’ woes are documented in Oyunga Pala’s Children of a Revolution that Never Was. Kenya has repeatedly reached the threshold of renewal only to fall back due to the venality of the nation’s power elite. In 2002 the youthful supporters of the NARC coalition chanted, yote yawezakana bila Moi (everything is possible without Moi). By 2004 they were partisan but passive spectators watching the ironic spectacle of just how unbwogable the post-Moi leadership had become.

Pala ends his account on a cynical note: “It might be 2018, yet 36 years later Moi’s protégés continue playing by the same rule book of economic mismanagement, rampant corruption, political assassinations, electoral theft and violent suppression of dissent.”

Kenya has repeatedly reached the threshold of renewal only to fall back due to the venality of the nation’s power elite. In 2002 the youthful supporters of the NARC coalition chanted, yote yawezakana bila Moi (everything is possible without Moi). By 2004 they were partisan but passive spectators watching the ironic spectacle of just how unbwogable the post-Moi leadership had become.

Many of the writers’ perspectives echo Yvonne Owuor Odhiambo’s discussion of the precarity generated by globalization. Precarity refers to the view that the planet’s poor and dispossessed are somehow responsible for their own predicament. It is mirrored in the different writers compulsion to deny their responsibility for the mess by way of repeating the accusations characterizing them as spoiled, lazy, and hyper-individualistic.

Raising three millennial children of my own has not familiarized me with many of these criticisms and complaints. They sound like recycled versions of the dinner table arguments defining the generational divide of my own era. In any case, the backward looking emphases in some of the essays illuminate why the millennials are not the architects of their precarity, and Wandia Njoya’s Millenial Bashing Has to Stop contribution to the debate removes any doubt.

But we can still offer some critical observations about the Millennial Edition articles. Despite the diversity of the contributors and the underlying issues of identity they raise (Katya Nyange’s The Agony of an Untold Story is a case in point), the sample is limited to writers reflecting on their predominantly Nairobi-centric experiences. The collection is short of voices from Kenya’s neglected periphery, rural towns, and minority communities.

In addition to sample problem, some of the broad generalizations running through many of the articles warrant more detailed qualification. The polemic of Us Millennials versus them ‘Olds’, for example, presumably refers to the elites of the respective riika. The system of checks and balances governing African generational dynamics conveyed by the indigenous term for generation falls between the cracks.

The lapse of such cultural institutions is part of the syndrome, a point that segues into Okolla’s skepticism about the validity of generation as a coherent social unit. He attributes this to the absence of common experience that “knits” a group born around the same time into peer-bonded collective sharing “largely observable mind-sets and worldviews.” This returns us to his observation that the elites of that era only acted as a generation when united by the Structural Adjustment induced hedonism and despondency of the 1990 to 2002 era.

He adds that the prosperity following it “torpedoed” any chance of generation formation for their children. Sam Opondo nevertheless captures the sentiment of the millennial writers in Plotting Our Raging Hope, where he begins by citing Franz Fanon’s observation, “Each generation must out of relative obscurity discover its mission, fulfill it, or betray it.”

The corresponding notion, that the concept of riika is not only scalable but can unite a cross-section of society to pursue a set of common objectives, represents one of the Millennial Edition’s underlying themes. Yet despite the aspirations and manifestos, bringing this about in Kenya’s political arena faces formidable constraints.

The under 35ers have the votes, but Nairobi’s young electorate could not even elect a fellow millennial like Boniface Mwangi to Parliament. Hence Oyunga Pala’s conclusion: “we have morphed into our parents with children living in bubbles.” Political participation alone will not pop the bubble.

The formation of a genuine Kenyan riika would be a powerful force. Unlike their Maasai, Meru, Kalenjin, Borana and other age-set societies equivalents, there is the issue of crosscutting stratifications of class, ethnicity, and geography. However difficult, it is should be now easier for digital era youth who come of age within a shared environment to form peer bonds that provide an enduring basis for collective action than it was for their analog elders.

Yet despite the aspirations and manifestos, bringing this about in Kenya’s political arena faces formidable constraints.The under 35ers have the votes, but Nairobi’s young electorate could not even elect a fellow millennial like Boniface Mwangi to Parliament. Hence Oyunga Pala’s conclusion: “we have morphed into our parents with children living in bubbles.” Political participation alone will not pop the bubble.

Playbook for a Millennial Uprising?

Fanon predicted the behavior of Africa’s post independence elites with uncanny accuracy in The Wretched of the Earth. His description recalls the educated minority of those Kenyans born between 1952 and 1982, anointed the nation’s ‘Future Leaders’ after independence. These future leaders became the national elite the writers hold responsible for their present conundrum.

Our own generational movement was running its course when I first came to Kenya in 1974. Radical critiques questioned the achievements and values of Western civilization; radical chic spawned non-conformity in dress, lifestyle, and personal expression. It generated a milieu animated by new ideas about the future and the wisdom of old religions. The quest for unique and mind-expanding experiences motivating travel to distant and remote destinations, and broadened the movement’s horizons.

I read Fanon in 1970 and assumed his anti-colonial ideology would resonate even stronger in post-colonial Black Africa. My exchanges with like-minded Kenyan age mates typically began with long Marxist lectures that ended with demands for beer money. I abandoned my peers in the Afro-Unity Day and Night Club to explore the landscape, where I found all manner of amazing and creative Kenyans—many of whom had minimal exposure to the same education system Mwangi Maina so vociferously condemns.

When I met these Future Leaders characters later, now in government offices, they often made the same demands but without the rant. Africanisation was clearly not the ally of decolonization it was supposed to be. The Future Leaders’ education socialized them to repurpose for their own rather than deconstruct the colonial institutions the new nation inherited.

This orientation resulted in many of the Future Leaders’ contemporaries paying a high price for these proclivities. Their cupidity did not go unnoticed when the country began to burn. The author of an op-ed writing during the height of the post-electoral violence lambasted “Generation Disaster” for Kenya’s lagging economic growth and fossilized politics. Writing in 2008, he anticipated the inter-generational friction surfacing in the millennials narratives.

“The next revolution in Kenya,” he proclaimed, “will not be a violent one, contrary to the bloodletting presently underway. Rather it will be the rejection of the generation of men from whom the leaders of this country have been drawn.”

There have been many youth-driven political movements over the past decade and the results are mixed. The most prominent example, the Arab Spring, produced a mix of chaotic and opposite outcomes across the Middle East. The author of Generation Revolution, a fictionalized account of Egypt’s Arab Spring, explains why:

Revolutionary Egyptians sought radical change only in the narrow lane of their relationship to the government and police. They did not reject the profoundly conservative mores of family, village, neighborhood and religious hierarchy, whose webs of control emerged relatively unscathed from the revolutionary period.

Kenyans are similarly bogged down in a similar intersectional status quo. Cursing the enemy will not bring back the father’s lost cattle. The blame game will not bring about the New Man anticipated in Joe Kobuthi’s account or the progression from slave to citizen Arkanuddin Yasin envisions.

The universal playbook for a generational uprising does not exist. Each movement ends up writing its own script. There are, however, some parallels that can be drawn with the American generational revival alluded to above.

Some say the movement was a predominantly middle class party and others state that it pretty much changed everything that came after it. Both views are valid, but with certain caveats. The youth-driven uprising of the 1960s attracted disparate elements from surfers and social activists to Vietnam War veterans, members of the clergy, housewives and construction workers. Emerging in the slipstream of the civil rights movement ensured a high level of synergy between the cultural and political forces at work.

More libertarian than Marxist, the multicultural character of the movement stemmed from a shared commonsensical logic questioning the insanity of industrial capitalism and its wars on everything from Third World peasants to the natural environment. This provoked the quest for a completely new way of thinking, a mindset liberated from the fears, petty ambitions, and assumptions of our elders.

The youth-driven uprising of the 1960s attracted disparate elements from surfers and social activists to Vietnam War veterans, members of the clergy, housewives and construction workers. Emerging in the slipstream of the civil rights movement ensured a high level of synergy between the cultural and political forces at work.

The advice ‘don’t trust anyone over thirty years old’ became over time a humorous meme capturing both our new generational identity and the youthful narcissism that came with it. Being born again Salafi-style Americans came with an attitude problem. Some of my university friends were present during one of the dinner table flare-ups characteristic of the intense generational frictions of those times. My parents told us, “you think everything you are doing is unique and original, but you are walking on our backs.”

They had been through a depression and a cataclysmic world war. This was their way of saying, ‘tell us what else is new’. The only response to this challenge was to translate ideas into action.

While lowering the voting age from 21 to 18 was one of the movement’s early victories, higher value was placed on protest and rejection of the establishment. than embracing it through political participation. Transcending the conventional   fed the avalanche of music, poetry, art, film, new cuisines, and creative lifestyles. Healthy habits flourished alongside a propensity for risk taking and experimentation with mind-altering substances. The creation of a new society required self improvement; stealing the God’s fire became the baby Boomer’s Promethean goal.

Most of us identified with the idea of counter culture more than the gospel of revolution advocated by the radical fringe. In practice this allowed the movement to grow as an inter-generational and open-ended phenomenon. Strident and polarizing in the beginning, it mellowed and broadened over time, spawning some pretty flaky new age fads in the process. A new creative problem solving mindset had become mainstream by the time conventional forces governing the socioeconomic cycle reasserted themselves.

Fictive Kinship and Other Multipliers of Change

The anthropological term fictive kinship applies to a range of informal and structural mechanisms. The Meru institution gichiaro created long lasting ties between individuals and groups, reinforcing the expanding networks of the late nineteenth century. The Nyambene Range was the epicenter of one such network that spanned a large area extending from Lake Turkana to Kitui and Nyeri. The explorer Joseph Chanler established a base camp on the northern flank of the range in 1893. He commented on the simple blood brotherhood rituals that formalized the ties of gichiaro fictive kinship known as in Meru, and how the sharing of miraa contributed to the bonding process sustaining the trade networks.

The concept’s practical import for social cohesion transcends such examples from the ethnographic literature. For my generation, the ties may have lacked the formal rules of gichiaro, but the shared consciousness that came with responding to the threats of primitive politics, environmental catastrophe, institutional racism, and nuclear annihilation served the same function.

The war ended, the CIA was reined in, environmental legislation passed, and other good things happened during the following decades. Even though the solidarity faded with time, the mentality remained as individuals transited through the life cycle on their separate paths. Some of the movement’s voices continued to speak out on contemporary issues and long-term trends shaping the planet, and their imaginative thinking about the future resurfaced in what became Silicon Valley.

Today the theology of technological liberation and some techie initiatives to ‘make the world a better place’ may seem more countercultural fairy tale than punctuated evolution, especially as Trump, Tea Party, and the Dirty Money crowd attempt to roll back history. Their revisionism cannot hold back the advancing realities anticipated by the secular prophets of those times. The coming of major earth changes, the crisis of capitalism, and the technological singularity are much closer now. The planet needs help.

Maybe a real global punctuation is in the cards this time around. In the meantime, a new confluence of generational dynamics, cultural renewal, and technological change is beginning to take shape in this part of the world.

The future leaders template is obsolete and the institutions of higher education that should be filling the vacuum are not up to the task. In his comprehensive treatise on reforming higher education, Paul Zeleza addresses the lacunae, which featured prominently among the millennial grievances, by outlining a programme based on international criteria focusing on the skills that enhance the employability of students.

He sets a very high bar. The job marketplace will demand future graduates, he reports, who will be “communicators, thinkers and problem solvers, inquirers and researchers, collaborators, adaptable, principled and ethical, responsible and professional, and continuous learners.”

The series of small steps needed to fix this other problems fueling millennial grievances will take time—which is no longer the elastic quantity it was when the future leaders were in charge. The academy is symptomatic of the larger institutional failure that continues to resurface in critical narratives. In the process of installing the institutions that the majority of Kenyans still believe are the flagship of the nation’s modernity, the colonials suppressed society’s cultural soul.

In a blog post Patrick Gathara articulates the sentiments of many others when he calls for a full-scale revision of “the systematic patterns of thought” behind the flawed governance of the past five decades. The post-independence argument about the value and legitimacy of building on a nation’s own historical and cultural experience needs to be revisited in the context of his ‘thought process’ problem.

The start of something along these lines is already underway. The region is on the move. In Ethiopia Dr. Ahmed Abiy is relaunching the African leadership renaissance that was so over-hyped during the 1990s. The cultural festivals sprouting across the Kenyan landscape and some of the developments within the counties are among the preliminary indicators suggesting how the larger movement will unfold.

We don’t know when and where the coke bottle will drop, but we can start writing the script.

Expect most of the real action to occur outside the political arena, and when like-mind individuals dispersed across the landscape meet live. Bringing the youth in Turkana, Lamu, Marsabit, and other points on the periphery into play will be a game changer. The arts and humanities will energize a cultural awakening, attracting middle class support. Swahili will be its lingua franca; new forms of gichiaro and cultural identities will emerge. Women will lead from the front. The peaceful confluence of ideas and actors will be anointed by the shedding of blood; over time it will coalesce with other trans-generational uprisings across the globe.

Expect most of the real action to occur outside the political arena, and when like-mind individuals dispersed across the landscape meet live. Bringing the youth in Turkana, Lamu, Marsabit, and other points on the periphery into play will be a game changer.

The makeover may take an entirely different path; things can also go terribly wrong. Chances are nothing will happen, or it will fall to the post-millennial under 18 generation. When by chance the revival does gather momentum, it will begin like a light breeze dispersing the suffocating heat accompanying a long drought. You will know it’s the real thing because it will be free, spontaneous, and fun.

Until this happens, Kingwa Kamencu’s original and at times irreverent commentary gets the last word: “We are decolonizing the material culture and some of its values and will soon be a force to reckon with in the political realm. Time and chance, grows all movements.”

Avatar
By

Dr. Goldsmith is an American researcher and writer who has lived in Kenya for over 40 years.

Politics

No War, No Peace: Life and Death in Eritrea

Thirty years after Eritrea gained independence from Ethiopia, there has hardly been any meaningful development in this small nation in the Horn of Africa. On the contrary, the government’s authoritarian policies have undermined democracy and forced young people to flee the country.

Published

on

No War, No Peace: Life and Death in Eritrea
Download PDFPrint Article

Eritrea was an Italian colony from 1890 to 1941. Following the defeat of Italian forces by the Allied Forces during World War Two, Britain occupied Eritrea until its federation to Ethiopia in 1952. However, by 1962 Emperor Haile Selassie had annexed Eritrea, declaring that it was part of Ethiopia, and in this way ending the federation.

In 1961, a year before the annexation, the Eritrean Liberation Front (ELF) started an armed struggle for independence from Ethiopia. The armed struggle continued for 30 years against successive Ethiopian regimes until 1991, when the Eritrean People’s Liberation Front (EPLF), who had replaced the ELF, defeated the Ethiopian forces in Eritrea. Eritrea became formally independent following a United Nations-supervised referendum in 1993.

From the beginning, the EPLF (now the People’s Front of Democracy and Justice – PFDJ)’s strategy for achieving liberation and national unity was for it to dominate all social, political, and economic spaces. The PFDJ implemented a highly centralised and opaque two-track system of administration: an unseen, powerful inner circle of elites; and public structures that projected an image of egalitarian self-sufficiency. This centralised and opaque model of governance continues today.

Since liberation, PFDJ has banned all opposition parties and treats all non-mass-movement organisations (i.e. independent civil society) with suspicion; hence there are no independent national civil society organisations in the country. Without any consultation, the PFDJ has nationalised all land; it has established a unitary form of government, and it has changed the administrative boundaries within the country. Despite these totalitarian tendencies, in 1994, the PFDJ, as the Provisional Government of Eritrea, set up the Constitutional Assembly to draft the Constitution. The task was completed in 1997. But the Constitution remains unimplemented.

Border dispute

In 1998, hostilities and war between Eritrea and Ethiopia resumed over border demarcation issues, particularly in the town of Bademe. By December 2000, the two countries signed the Algiers Peace Agreement and established the Eritrea Ethiopia Border Commission (EEBC) to determine the limits of their shared border.

The EEBC delivered its border decision on 13th April 2002, placing the town of Bademe, the flashpoint of the border conflict, on the Eritrean side. The Ethiopian government contested the allocation of Bademe to Eritrea. Therefore, a situation of “no war, no peace” ensued between the two countries as President Isaias Afewerki refused any dialogue on the issue because the parties had agreed that the decision of the EEBC was final and binding.

President Isaias Afwerki, who is also the chair of the PFDJ, took advantage of the strained relationship with Ethiopia to:

  1. indefinitely postpone the implementation of the 1997 Constitution as well as the general elections;
  2. arrest and disappear dissenters, especially University of Asmara students and the members of the government known as G15 who promoted a democratisation process (2001);
  3. close the independent media and arrest journalists (2001);
  4. abolish the Eritrean National Assembly (i.e. the Eritrean Parliament) (2002);
  5. maintain a high level of militarisation of the country.

To maintain a high level of militarisation, the government vertically integrated the National Service to the National Development Programme (i.e. the Warsay Yikaalo National Development Programme) and to Education. This integration allows the Eritrean government to move students into the National Service and the National Development Programme from high schools (i.e. Grade 12) and indefinitely extends the period of service of the conscripts, hence taking full control over the working population.

In 1998, hostilities and war between Eritrea and Ethiopia resumed over border demarcation issues, particularly in the town of Bademe. By December 2000, the two countries signed the Algiers Peace Agreement and established the Eritrea Ethiopia Border Commission (EEBC) to determine the limits of their shared border.

Through the integration of the National Service into the Warsay Yikaalo National Development Programme and Education, the government has limited the citizenship rights of conscripts who while in service cannot: legally obtain a mobile phone or SIM card; get or renew a business licence; access land; and access travel documents and exit visas. Deserters or objectors are denied any rights and cannot access state services. Thus, the official Eritrean concept of citizenship is intrinsically linked to conscription and the fulfilment of National Service duties.

The National Service is a combination of military training and civil service, working for little pay in non-military activities such as agriculture, the construction of roads, houses and buildings and mining. The Warsay National Development Programme relies on the deployment of te National Service (Warsay) and defence personnel (Yikaalo) as a labour force. The programme operates under the umbrella of the Ministry of Defence.

Since 2003, the government has closed the University of Asmara (the only university in the country). It has also required that all Eritrean students complete Grade 12 at the Sawa military training camp. Students who have not completed their final year of secondary school at Sawa and have not sat for the National School Certificat, cannot access college education. The PFDJ has replaced Asmara University with regional colleges, which are administered jointly by an academic director and a military director.

National Service conscripts work for an indefinite period on development projects, the administration of ministries and local authorities, as well as in PFDJ-owned businesses. Such work is carried out for very little pay and in conditions that a UN Commission of Inquiry on Human Rights in Eritrea described as “forced labour”.

The Eritrean authorities’ control over the people includes the restriction of movement both internally and externally. Therefore, all Eritreans aged five and above cannot leave the country without an exit visa. The government will not issue an exit visa to any Eritrean above the age of five, irrespective of their situation (i.e. family reunification, health, etc.)

The government’s control over the Eritrean people is a political, social and economic process of deprivation and human rights violations for which it refuses to take any responsibility. It is systematically impoverishing the population. Therefore, Eritrean youth face having to choose between the life of slave labour or exile. They describe their situation as slavery: “[The] situation in Eritrea and long time ago with slaves is the same. We build the houses of the elites without money. We work on farms of government officials for no money. If you are educated, they deploy you to anywhere…for a short time, you can tolerate it…but this is for life.”

Faced with accusations of human rights violations, the government reverts to “threat” mode. It labels any reference to human rights violations as “lies” and “ploys” of its enemies to undermine the state. The PFDJ Head of Political Affairs, Mr Yemane Gebreab, dismissed the findings of the Commission of Inquiry on Human rights by saying: “….[it is] really laughable……There is no basis to the claims of the Commission of Inquiry…”

The Eritrean authorities’ control over the people includes the restriction of movement both internally and externally. Therefore, all Eritreans aged five and above cannot leave the country without an exit visa.

In addition to taking control over the working population, the government also took control of the economic sectors, including finance, import and export, transport and construction. It has achieved control over the economic sphere through a process of unfair competition with private business, facilitated by the fact that it does not pay taxes and does not comply with labour, environmental, and other regulatory requirements. Also, as the regime has control over the working population, it has unlimited access to a large pool of free labour, effecting a net transfer of the workforce away from the private sector. This policy of moving human resources to labour sites identified and controlled by the government has crippled the private sector, especially the agricultural industry, which still relies to a large extent on subsistence farming.

The government’s control and domination of the economy have not increased economic activity or productivity. The economy is stagnating, further weakening the private sector and restricting economic opportunities for Eritreans.

Notwithstanding PFDJ’s rhetoric, Eritrean youth experience the state as an albatross around their necks. They understand the state in terms of spy networks; as a human rights violator curtailing civil, political, and economic rights and as the as the source of torture and deprivation. They see it as the source of all restrictions and deprivations. This is the reason why they flee the country.

Peace Agreement with Ethiopia and its aftermath

In April 2018, the Ethiopia Prime Minister Abiy announced the acceptance of the EEBC decision, in particular the allocation of the flashpoint town of Bademe to Eritrea. In this way, he started a process that led to the signing of the Ethiopia Eritrea Peace Agreement in July 2018, thus ending two decades of “no war, no peace”. The land borders opened to much jubilation in 2018. However, by April 2019, the Eritrean government had closed them all. So far, the only achievements of the Peace Agreement are the reopening of embassies and telecommunication lines and the resumption of flights.

The signing of the Peace Agreement immediately raised expectations that there would be a normalisation of relations between the two states. It also raised expectations regarding reforms within Eritrea that would lead to a reduction in the number of Eritrean youth fleeing the country. Soon after the signing of the Peace Agreement, the Eritrean Catholic priest Aba Teklemichael pointed to the sweeping reforms implemented by Prime Minister Abiy in Ethiopia, and urged the Eritrean government to also undertake necessary reforms in Eritrea and to democratise the government. By Easter 2019, the Eritrean Catholic bishops were also calling for a constitutional government and the rule of law. They also encouraged the government to release political prisoners and start a process of reconciliation within the country. However, to date there have been no reforms in the country, a state of affairs confirmed by the UN Special Rapporteur on Human Rights in Eritrea who at the start of this year reported that she had: “ ……no tangible evidence of a meaningful and substantive improvement in the situation of human rights in Eritrea”.

The signing of the Peace Agreement immediately raised expectations that there would be a normalisation of relations between the two states. It also raised expectations regarding reforms within Eritrea that would lead to a reduction in the number of Eritrean youth fleeing the country.

The ongoing peace process is not transparent; it has mostly remained an elite political level agreement unable to deliver on the economic front or to resolve the issue of Bademe as both Prime Minister Abiy and President Isaias Afewerki have marginalised the Tigray People’s Liberation Front (TPLF) for political motives. The Eritrean government has increasingly identified the Tigray State and the Tigray People’s Liberation Front (TPLF) as an existential threat to Eritrea, thus justifying the maintenance of a high level of militarisation. Consequently, Eritrean youth continue to flee the country. In 2018, UNHCR ranked Eritrea as the ninth-largest refugee-sending state in the world.

Ailing health sector

The totalitarian agenda of the Eritrean government did not spare the health sector either. The task of reconstructing the Eritrean health system after the liberation struggle and following the 1998-2000 Eritrea-Ethiopia border war was monumental. It was an undertaking that the late and former Minister of Health Saleh Meki undertook with passion, commitment, and zest from 1997 to 2009 when Ms Amina Nurhussein replaced him.

In his efforts rebuild the Eritrean health system, Saleh Meki sought to establish strategic partnerships with critical international health institutions, private practitioners, faith-based organisations, such as the Catholic Church, as well as professional members of the Eritrean diaspora. The former Minister of Health carried on with his efforts despite the enormous pressure to conform to the dictates of President Isaias Afwerki, and the concerns generated by the closure of international non-governmental organisations, as well as the restriction of movement imposed on all organisations working in the country. Against all the odds, he re-established the medical school known as the Orotta Medical School.

Saleh Meki died on 2nd October 2009. Soon after his death, all the medical missions of international organisations that he had worked so hard to bring to Eritrea ended. By 2011 the Eritrean Government forced the closure of all private medical clinics. And, by 2018 a total of 29 Catholic health facilities providing maternal and child health support and serving some of the more remote communities in the country were closed. The seizure and closure, of the Catholic health facilities was carried out in complete disregard to the health and safety of the patients, most of whom were left to fend for themselves.

There was no clear justification for the closure of the private health facilities. However, the closure of the Catholic health facilities was justified as an enforcement of the 1995 Proclamation to standardise and articulate religions institutions (Proclamation No 73 of 1995). The Proclamation prohibits religious bodies from engaging in social and welfare services. This position is contested by all faith-based organisations, especially since there was no consultation in the development of the law. The Eritrean Catholic bishops’ communication with the government on the seizure and closure of their health facilities point out that the facilities operated by abiding with all the requirements of the Ministry of Health.

Poor COVID-19 response

The closure of health facilities has reduced the number of available beds and the overall capacity of the health system. Hence, Eritrea, with a score of 0.434, was ranked 182nd out of 189 countries by the 2019 Human Development Index. The low Human Development Index combined with a hospital bed capacity of 7 beds for 10,000 people, and no available data as to the number of health professionals (i.e. doctors and nurses) available per 10,000 people, suggests that the situation might be even more dire. And the poor connectivity of the country (i.e. mobile phones, internet, broadbands) means that the country’s capacity to deal with pandemics such as COVID-19 is low.

The low capacity of the Eritrean health system to deal with the COVID-19 pandemic was also of concern to the diaspora Eritrean Healthcare Professionals Network (EHPN), which urged the Eritrean government to immediately implement the World ealth Orbanization (WHO) and Centre for Disease Control (CDC) guidelines and advisories to contain the pandemic. EHPN expressed concern that the country lacks the necessary prerequisites to implement hygiene measures because: “There is a shortage of water, disinfectants, laboratories that carry out diagnostic tests and medical professionals, including nursing and technical staff. There is also a lack of functioning intensive care units with adequate ventilation equipment needed to properly treat patients. The reality is that many Eritreans will not be able to seek and obtain medical treatment in their homeland or neighbouring countries. In short, the Eritrean health system is not adequately prepared for COVID 19.”

Fears regarding the poor state of the Eritrean health system were further heightened when the Eritrean government refused COVID-19 emergency supplies donated by the Chinese billionaire Jack Ma and his Alibaba Group. Mr Hagos “Kisha” Gebrehiwet, the head of Economic Affairs in the ruling PFDJ, justified the rejection of Jack Ma’s donation by saying that it was unsolicited.

The government’s willingness to reject donations has, however, launched a COVID-19 appeal among citizens. The appeal is remarkable for the lack of information as to how the funds raised will be used. There is no single COVID-19 emergency response bank account designated for the appeal; hence, in the diaspora, funds are collected in different foreign bank accounts set up by Eritrean embassies. Consequently, there is a real danger that the funds will never enter the country and will disappear into the government’s opaque offshore financial system. Also, there is no information as to how the Ministry of Health will use the funds. Reports by Eritrean human rights activists say the appeal is coerced, confirming the lack of transparency and accountability of the fundraising process.

There is also no transparency in the COVID-19 data that the Eritrean government is providing. It reported the first four COVID-positive cases on the 21st and 23rd of March. One patient was an Eritrean national resident in Norway, and the other three positive patients were Eritrean nationals returning from Dubai. Because of these events, by 26th March, the government banned all commercial passenger flights for two weeks. It also closed schools. And, by 1st April, it imposed COVID-19 lockdown measures.

Fears regarding the poor state of the Eritrean health system were further heightened when the Eritrean government refused COVID-19 emergency supplies donated by the Chinese billionaire Jack Ma and his Alibaba Group. Mr Hagos “Kisha” Gebrehiwet, the head of Economic Affairs in the ruling PFDJ, justified the rejection of Jack Ma’s donation by saying that it was unsolicited.

The lockdown measures did not include the closure of the Sawa military training camp or the release of political prisoners. The government has recently released 27 Christian prisoners, who were imprisoned without charge or trial for as long as sixteen years. Their release is conditional on their family lodging their property deeds with the government as a guarantee that the people released will not leave the country.

While maintaining a strict lockdown, the Eritrean government has allowed mass gatherings to celebrate the graduation of the 33rd round of Sawa military training camp graduates as well as the transfer of Grade 12 conscripts to the facility.

From 1st April to 18th April, the Eritrean government reported 39 COVID positive cases, all linked to Eritreans visiting or returning from their travels. Then, for two months, there were no new cases reported. After that, the number of COVID-positive cases increased, and by the 12th of October, Eritrea reported a total of 414 COVID-positive patients and 372 recoveries.

Though the government makes repeated references to quarantine centres, it has not shared a list of the centres, their location or capacity. It is also not reporting the daily number of COVID tests. Nor has it reported any COVID-related deaths or any community transmission of the virus. It continues to attribute all the new COVID cases to Eritreans returning through “irregular land and sea routes” from Ethiopia, Sudan, Djibouti and Yemen. But there is no explanation as to why so many nationals are travelling despite the government’s strict lockdown procedure that prohibits all movement between towns and that restricts te movement of any vehicles, including buses and taxis, which require movement permits. Such permits are not easy to obtain.

Finally, there are only five incidents of Ministry of Information reporting the number of individuals tested or in quarantine:

  1. 3,000 quarantined – 8th May 2020;
  2. 5,270 quarantined – 3rd June 2020;
  3. 7,158 nationals returned through irregular land and sea routes. Not clearly stated but the implication is that they were all quarantined – 14th June 2020;
  4. 18,000 citizens allegedly returned through irregular land and sea routes. This movement occurred in the last four months. Again, not clearly stated but the implication is that they were all quarantined – the 12th October 2020;
  5. 41,100 tests – 12th October 2020.

In a recent report, the Eritrean Ministry of Information asserted that the rate of COVID infection in the country was “a paltry 0.02%”, based on one (1) positive result during 4659 random tests done in Asmara”. The data shared by the government (41,100 tests and 414 COVID-positive cases) suggests that the rate of infection is just 1 per cent.

The COVID lockdown in Eritrea, like in other countries, has brought economic activities to a standstill. The difference between Eritrea and other countries is that the Eritrean economy was already on its knees before the lockdown and the Eritrean government has not made any attempt – beyond extorting donations from its citizens – to alleviate the suffering of the people with economic support packages. Consequently, Eritreans are hungry and desperate and have started to ignore strict lockdowns. They are on the streets selling all kinds of goods. Women are out in the streets, making tea and cooking food for sale. Family and friends describe Asmara, the capital city, as full of mobile tea shops.

In a recent report, the Eritrean Ministry of Information asserted that the rate of COVID infection in the country was “a paltry 0.02%”, based on one (1) positive result during 4659 random tests done in Asmara”. The data shared by the government (41,100 tests and 414 COVID-positive cases) suggests that the rate of infection is just 1 per cent.

The Eritrean Afars have, through the Red Sea Afar Human Rights Organisation (RSAHRO), issued a press statement, describing their situation under lockdown as a: “… siege imposed by the Eritrean regime on the citizens of the region.”. They warn of the danger of hunger in their area. They also describe confiscation of boats, camels and supplies by the military, closed health centres, unprepared quarantine centres, as well as lack of medical supplies. The human rights organisation also accuse General Tekle Manjus of confiscating trucks of emergency food sent from Asmara for distribution among the Afar.

The Afar coastal area is not the only area in danger of hunger. The information from Eritrea is that hunger is very real all over the country. The government media and social media accounts do not report the danger of hunger or any of the difficulties that the people are facing during this COVID-19 emergency. Their postings give the impression that Eritrea is doing just fine.

Continue Reading

Politics

The Search for a Puppet Chief Justice

The emotional energy invested in controlling the recruitment of the next Chief Justice could turn out to be a source of great frustration when administrative fiat and bench-fixing do not deliver the anticipated results.

Published

on

The Search for a Puppet Chief Justice
Download PDFPrint Article

Anxiety over who will replace Chief Justice David Maraga exploded into the public domain on Friday, October 16, 2020, when a member of the Judicial Service Commission (JSC) alleged a plot to delay the recruitment process. Macharia Njeru, one of the two representatives of the Law Society of Kenya (LSK) to the JSC, claimed in a public statement that the Chief Justice and a few others were “hellbent on derailing the orderly recruitment of his successor and leaving the institution of the Judiciary in a crisis of leadership”.

LSK immediately dissociated itself from Macharia’s position and asserted that the “state capture of the Judiciary and the Judicial Service Commission would not be executed through its representatives”.

The parliamentary Justice and Legal Affairs Committee had earlier failed to prevail on Justice Maraga to take early terminal leave, and subsequently published a proposal to change the law on when to begin recruitment of a new Chief Justice. The Chief Justice will officially retire on January 12, 2021, when he turns 70, but he is expected to take leave on December 15, 2020.

Powerful individuals in the country’s politics cannot wait to see Justice Maraga’s back because of his surprising show of spine. On September 1, 2017, the mild-mannered and soft-spoken jurist led a four-judge majority of the Supreme Court to annul the presidential election in a decision that reverberated across the globe. Last month, Justice Maraga advised the President to dissolve Parliament for failing enact laws to increase representation of women in national elected leadership on the strength of a High Court declaration and six petitions.

Between the two monumental decisions, the Chief Justice has called out the President over judiciary budget cuts, disregard for court orders and verbal attacks on the institution he leads.

Justice Maraga’s name conjures up odium and foreboding in state organs at the executive and legislative levels, expressed through punitive budget cuts in the Judiciary, disregard of courts’ authority, and derisive rhetoric. None of these backhanded actions have brought the politically powerful any satisfaction, hence the abiding desire to find a more user-friendly Chief Justice.

Vacancies in the Judiciary can only be advertised fourteen days after they open up, according to the law, which means that the Chief Justice, who also chairs the JSC, plays no role in recruiting his successor. Previously, individuals in the presidency unsuccessfully sought to influence who becomes Chief Justice since the Constitution of Kenya, on its promulgation in 2010, retired Justice Evan Gicheru in February 2011. At the time, President Mwai Kibaki nominated the Court of Appeal’s Justice Alnashir Visram for Chief Justice without inviting applications or conducting interviews. He was countermanded by the newly-constituted JSC, which then conducted one of the most brutal public interviews for the position before choosing civil society icon and law scholar Willy Mutunga.

Justice Maraga’s name conjures up odium and foreboding in state organs at the executive and legislative levels, expressed through punitive budget cuts in the Judiciary, disregard of courts’ authority, and derisive rhetoric.

Dr Mutunga’s transparent recruitment freed him from the usual baggage that would accompany a political appointment to lead the transformation of the judiciary into an independent, publicly accountable institution [Full disclosure: I was communication advisor in the Office of the Chief Justice from 2011 to 2015]. By the time Dr Mutunga chose to retire a year early in June 2016, he had trebled the number of judges to increase efficiency, built confidence and secured the highest funding ever for the institution. He also ring-fenced decisional independence that would enable courts to act as a check on executive and legislative power.

After the Supreme Court upheld the 2013 presidential election, an internal corruption investigation in the Judiciary sucked the institution into a confrontation with the National Assembly, which petitioned the President to appoint a tribunal to investigate six members of the JSC. A five-judge High Court bench neutered the tribunal before it could sit and presented the first contest between Dr Mutunga and President Uhuru Kenyatta.

President Kenyatta would play possum with a list of 25 judge nominees presented to him by the JSC, first appointing 11 and then keeping the other 14 in abeyance for a year. An amendment to the law to require the JSC to send the President three names from which he could choose the Chief Justice was struck down on account of unconstitutionality.

When Dr Mutunga wanted to retire, the President declined to meet him, and the Speaker of the National Assembly refused to respond to his request to address Parliament. By the time interviews for Dr Mutunga’s replacement began in September 2016, the Executive was disoriented and unable to muscle its substantial vote strength in the JSC for a single candidate.

Although the presidency nominates two non-lawyers as members of the JSC in addition to the Attorney General and a nominee of the Public Service Commission, thus controlling 36 per cent of the vote, the Judiciary has five members – the Chief Justice as chair and one representative each for the Supreme Court, the Court of Appeal, the High Court and the magistrates – and has 45 per cent voice. The Law Society of Kenya’s two representatives – 18 per cent – provide an important swing vote for the Executive or the Judiciary whenever there is no consensus.

Justice Maraga of the Court of Appeal emerged as the dark horse in the three-month search for the Chief Justice on the strength of his electoral law jurisprudence. Earlier attempts to name Supreme Court judge Jackton Ojwang as acting Chief Justice were abandoned. Justice Ojwang trailed fellow Supreme Court judge Smokin Wanjala, Kenyan-American law professor Makau Mutua, and constitutional law expert Nzamba Kitonga.

When Dr Mutunga wanted to retire, the President declined to meet him, and the Speaker of the National Assembly refused to respond to his request to address Parliament.

The Supreme Court’s annulment of the presidential election in September 2017 produced voluble complaints from President Kenyatta, who threatened unspecified action against the Judiciary. The independence of the Judiciary, represented in the person of the Chief Justice, has clearly rankled President Kenyatta and his supporters. He subsequently began a systematic reorganisation of the Executive’s representatives to the JSC by picking a judiciary insider, Court of Appeal president, Kihara Kariuki, to replace Attorney General Githu Muigai. Even before the terms of public representatives Winnie Guchu and Kipng’etich Bett were midway, he recalled them and replaced them with Prof Olive Mugenda and Felix Koskey. And then he declined to gazette the re-election of Mohammed Warsame as Court of Appeal representative to the JSC. Judge Warsame was finally seated without re-taking oath courtesy of a court decision that obviated the need for his election to be gazetted. He joined the judiciary column led by the Chief Justice, Deputy Chief Justice Philomena Mwilu, who had been elected to represent the Supreme Court, and Justice David Majanja, who represents the High Court.

Fears have been rife that the election of the magistrates’ representative to replace Chief Magistrate Emily Ominde in December and the replacement of LSK woman representative Mercy Deche could provide an opportunity for the Executive to support pliant candidates, in addition to Macharia Njeru.

It is likely that urgent attempts to start the Chief Justice’s recruitment could exclude the two representatives of the magistrates and the LSK, thus denying the panel two critical voices. Voting strength in the JSC could also be significantly altered if some of the commissioners apply for the Chief Justice’s position. For one, it is not clear if the 62-year-old Deputy Chief Justice Philomena Mwilu, who already represents the Supreme Court in the JSC, will act as chairperson of the commission once Justice Maraga leaves.

Although voting is an important factor in choosing the next Chief Justice, qualification is probably more important. And the public scrutiny candidates are subjected to, complete with court oversight when required, means that a naked attempt to install a puppet would backfire.

Political horse-trading with Parliament is a necessity for nominees to the position of Chief Justice and Deputy Chief Justice to be confirmed during vetting. Often, politicians view the Chief Justice’s position as one of the spoils to be traded during ethno-regional deal-making. So far, the Chief Justice’s position has been occupied by a kaleidoscope of Kenyans – including many ethnic and religious colourations.

The law only provides for the Deputy Chief Justice to act as Chief Justice “[i]n the event of the removal, resignation or death” and only for a period not exceeding six months pending the appointment of a new one. It remains to be seen if legal experts will argue that retirement is not equivalent to removal, resignation or death. Should Justice Mwilu also throw her hat in the ring for the top job, she would not be able to cast a vote as a JSC member.

Another JSC member who has to weigh between voting and chasing the job is 66-year-old Justice Kihara Kariuki, believed to be a front-runner to succeed Chief Justice Evan Gicheru in 2011 but has bided his time, rising to President of the Court of Appeal before accepting to serve as Attorney General. Meanwhile, Justice Mwilu has been embroiled in petitions seeking her removal from office since the Supreme Court annulled the presidential election. Two years ago, the Director of Public Prosecutions and the Director of Criminal Investigations launched a highly publicised effort to arrest and charge her with corruption before the High Court discharged her and advised that complaints against her be first have been processed through the JSC. Justice Mwilu has since tied the JSC in legal knots over the involvement of the Attorney General and one other member in hearing the complaint against her, claiming that they have shown bias.

Although the Constitution allows a Chief Justice to serve for a maximum of 10 years, the practice so far has been to choose individuals who are close to the retirement age, with the effect that those chosen preside over only presidential petitions from one election cycle before they reach the retirement age of 70. If appointments continue to be short-term to limit the pain individuals can inflict on the institution, candidates in their mid-60s appear to be chosen to navigate the 2022 election and leave before the 2027 one.

Although voting is an important factor in choosing the next Chief Justice, qualification is probably more important. And the public scrutiny candidates are subjected to, complete with court oversight when required, means that a naked attempt to install a puppet would backfire.

Although the Supreme Court’s Justice Smokin Wanjala gave a good showing at the 2016 interviews and was ranked second, his age – 60 – means that if appointed, he would hold the job for 10 years. Law scholar Makau Mutua, 62, who was ranked third in the 2016 interviews for Chief Justice, could also give the job another try, as would former Attorney General Githu Muigai, who would similarly be hampered by fears of serving out the 10 years in the post.

The Executive’s frustration with the Judiciary has been expressed as blame for the slow pace of corruption cases, where the courts are criticised for not pulling their weight to deliver quick convictions. The most evident sign of frustration has been the President’s refusal to appoint 41 individuals nominated by the JSC as Court of Appeal and High Court judges. The law does not permit the JSC to reconsider its nominees after the names have been submitted to the President, except in the case of death, incapacity or withdrawal of a nominee. Last week, judge designate Harrison Okeche died after a road traffic accident before he could be sworn in because the President has not published the names as expected. It remains to be seen how the JSC responds.

Chief Justices chair the Judicial Service Commission, and preside over the Supreme Court, which decides the presidential election petitions. Besides the very constrained and collegial power in these two sites, the Chief Justice also exercises administrative power in empanelling High Court benches for constitutional references, and posts judges – powers shared with the President of the Court of Appeal and the Presiding Judge of the High Court.

A Chief Justice cannot direct judicial officers – from the lowliest magistrate to the Supreme Court judge – on how to decide a matter. Much of the power she or he wields is moral and symbolic. The emotional energy invested in controlling the recruitment of the next Chief Justice could turn out to be a source of great frustration when administrative fiat and bench-fixing do not deliver the anticipated results for those seeking a puppet Chief Justice.

Continue Reading

Politics

African Continent a Milking Cow for Google and Facebook

‘Sandwich’ helps tech giants avoid tax in Africa via the Netherlands and Ireland.

Published

on

Algorithmic Colonisation of Africa
Download PDFPrint Article

Google’s office at the airport residential area in Accra, Ghana, sits inside a plain white and blue two-storey building that could do with a coat of paint. Google, which made more than US$ 160 billion in global revenue in 2019, of which an estimated US$ eighteen billion in ‘Africa and the Middle East’, pays no tax in Ghana, nor does it do so in most of the countries on the African continent.

Google Street View of the building registered as Google's office in Accra

Google Street View of the building registered as Google’s office in Accra

It is able to escape tax duties because of an old regulation that says that an individual or entity must have a ‘physical presence’ in the country in order to owe tax.  And Google’s Accra office clearly defines itself as ‘not a physical presence.’ When asked, a front desk employee at the building says it is perfectly alright for Google not to display its logo on the door outside. ‘It is our right to choose if we do that or not’. A visitor to the building, who said she was there for a different company, said she had no idea Google was based inside.

Facebook is even less visible. Even though practically all 250 million smartphone owners in Africa use Facebook, it only has an office in South Africa, making that country the only one on the continent where it pays tax.

Brick and mortar

The physical presence rule in African tax laws is ‘remnant of a situation before the digital economy, where a company could only act in a country if it had a “brick and mortar” building’, says an official of the Nigerian Federal Inland Revenue Service (FIRS), who wants to remain anonymous. ‘Many countries did not foresee the digital economy and its ability to generate income without a physical presence. This is why tax laws didn’t cover them’.

Tax administrations globally have initiated changes to allow for the taxing of digital entities since at least 2017. African countries still lag behind, which is why the continent continues to provide lucrative gains for the tech giants. A 2018 PriceWaterhouseCoopers report noted that Nigeria, Africa’s largest economy, has seen an average of a thirty percent year-on-year growth in internet advertising in the last five years, and that the same sector in that country is projected, in 2020, to amount to US$ 125 million in the entertainment and media industry alone.

‘Their revenue comes from me’.

William Ansah, Ghana-based CEO of leading West African advertising company Origin 8, pays a significant amount of his budget to online services. He says he is aware that tax on his payments to Facebook and Google escapes his country through what is commonly referred to as ‘transfer pricing’ and feels bad about it. ‘These companies should pay tax here, in Ghana, because their revenue comes from me’, he says, showing us a receipt from Google Ireland for his payments. During this investigation we were also shown an advert receipt from a Nigerian Facebook ad that listed ‘Ireland’ as the destination of the payment.

Like Google, Facebook does not provide country-by-country reports of its revenue from Africa or even from the African continent as a whole, but the tech giant reported general revenue of US$ sixty billion as a whole from ‘Rest of the world’, which is the world minus the USA, Canada, Europe and Asia.

Facebook revenue by user geography

Facebook revenue by user geography

Irish Double

The specific transfer pricing construction Google and other tech giants such as Facebook use to channel income away from tax obligations is called an ‘Irish Double’ or ‘Dutch Sandwich’, since both countries are used in the scheme. In the construction, the income is declared in Ireland, then routed to the Netherlands, then transferred to Bermuda, where Google Ireland is officially located. Bermuda is a country with no corporation tax. According to documents filed at the Dutch Chamber of Commerce in December 2018, Google moved US$ 22,7 billion through a Dutch shell company to Bermuda in 2017.

Moustapha Cisse, Africa team lead at Google AI

Moustapha Cisse, Africa team lead at Google AI

An ongoing court case in Ghana — albeit on a different issue — recently highlighted attempts by Google to justify its tax-avoiding practices in that country. The case against Google Ghana and Google Inc, now called Google LLC in the USA, was started by lawyer George Agyemang Sarpong, who held that both entities were responsible for defamatory material against him that had been posted on the Ghana platform. Responding to the charge, Google Ghana contended in court documents that it was not the ‘owner of the search engine www.google.com.gh’; that it did not ‘operate or control the search engine’ and that ‘its business (was) different from Google Inc’.

Google Ghana is an ‘artificial intelligence research facility’.

Google Ghana describes itself in company papers as an ‘Artificial Intelligence research facility’. It says that its business is to ‘provide sales and operational support for services provided by other legal entities’, a construction whereby these other legal entities — in this case Google Inc — are responsible for any material on the platform. Google Ghana emphasised during the court case that Ghana’s advertising money was also correctly paid to Google Ireland Ltd, because this company is formally a part of Google Inc.

Rowland Kissi, law lecturer at the University of Professional Studies in Accra describes Google’s defence in the Sarpong court case as a ‘clever attempt’ by the business to shirk all ‘future liability of the platform’. Kissi is cautiously optimistic about the outcome, though: while the case is ongoing, the court has already asserted that ‘the distinction regarding who is responsible for material appearing on www.google.com.gh, is not so clear as to absolve the first defendant (Google Ghana) from blame before trial’. According to leading tax lawyer and expert Abdallah Ali-Nakyea, if the ‘government can establish that Google Ghana is an agent of Google Inc, the state could compel it to pay all relevant taxes including income taxes and withholding taxes’.

Cash-strapped countries

Like most countries, especially in Africa, Nigeria and Ghana have become more cash-strapped than usual as a result of the COVID 19 pandemic. While lockdowns enforced by governments to stop the spread of the virus have caused sharp contractions of the economy worldwide, ‘much worse than during the 2008–09 financial crisis’, according to the International Monetary Fund, Africa has experienced unprecedented shrinking, with sectors such as aviation, tourism and hospitality hardest hit. (Ironically, in the same period, tech giants like Google and Facebook have emerged from the pandemic stronger, due to, among others, the new reality that people work from home.)

With much needed tax income still absent, many countries have become even more dependent on charitable handouts. Nigeria recently sent out a tweet to ask international tech personality and philanthropist, Elon Musk, for a donation of ventilators to help weather the COVID 19 pandemic: ‘Dear @elonmusk @Tesla, Federal Government of Nigeria needs support with 100-500 ventilators to assist with #Covid19 cases arising every day in Nigeria’, it said. After Nigerians on Twitter accused the government of historically not investing adequately in public health, pointing at neglect leading to a situation where a government ministry was now begging for help on social media, the tweet was deleted. A government spokesperson later commented that the tweet had been ‘unauthorised’.

Cost to public

The criticism that governments often mismanage their budgets and that much money is lost to corruption regularly features in public debates in many countries in Africa, including Nigeria. However, executive secretary Logan Wort of the African Tax Administration Forum ATAF has argued that this view should not be used to excuse tax avoidance. In a previous interview with ZAM Wort said that ‘African countries must develop their tax base. It is only in this way that we can become independent from handouts and resource exploitation. Then, if a government does not use the tax money in the way it should, it must be held accountable by the taxpayers. A tax paying people is a questioning people’.

‘A tax paying people is a questioning people’

Commenting on this investigation, Alex Ezenagu, Professor of Taxation and Commercial Law at Hamad Bin Khalifa University in Qatar, adds that in matters of tax avoidance by ‘popular multinationals such as Facebook and Google, it is important to understand the cost to the public. If (large) businesses don’t pay tax, the burden is shifted to either small businesses or low income earners because the revenue deficit would have to be met one way or another’. For example, a Nigerian revenue gap may cause the government to increase other taxes, Ezenagu says, such as value added tax, which increased from five to seven and a half percent in Nigeria in January. ‘When multinationals don’t pay tax, you are taxed more as a person’.

Nigeria has recently begun to tighten its tax laws, thereby following in the footsteps of Europe, that last year made it more difficult for the digital multinationals to use the ‘Irish Double’ to escape tax in their countries. South Africa, too, in 2019 tailored changes to its tax laws in order to close remaining legal loopholes used by the tech giants. These ‘could raise (tax income) up to US$ 290 million a year’ more from companies like Google and Facebook, a South African finance source said. With US$ 290 million, Ghana’s could fund its flagship free senior high school education; Nigeria could fully fund the annual budget (2016/2017 figures) of Oyo, a state in the south west of the country.

Interior view of the Facebook office in Johannesburg, South Africa

Interior view of the Facebook office in Johannesburg, South Africa

Waiting for the Finance Minister

Nigeria’s new Finance Act, signed into law in January 2020, has expanded provisions to shift the country’s focus from physical presence to ‘significant economic presence’. The new law leaves the question whether a prospective taxpayer has a ‘significant economic presence’ in Nigeria to the determination of the Finance Minister, whose action with regard to the tech giants is awaited.

In Ghana, digital taxation discussions are slowly gaining momentum among policy makers. The Deputy Commissioner of that country’s Large Taxpayer Office, Edward Gyamerah, said in a June 2019 presentation that current rules ‘must be revised to cover the digital economy and deal with companies that don’t have traditional brick-and-mortar office presences’. However, a top government official at Ghana’s Ministry of Finance who was not authorised to speak publicly stated that, ‘from the taxation policy point of view, the government has not paid a lot attention to digital taxation’.

He blamed the ‘complexity of developing robust infrastructure to assess e-commerce activity in the country’ as a major reason for the government’s inaction on this, but hoped that a broad digital tax policy would still be announced in 2020.” Until the authorities get around to this, he said he believed that, ‘Google and Facebook will (continue to) pay close to nothing in Ghana’.

Comment

Google Nigeria did not respond to several requests for interviews; Google Ghana did not respond to a request for comment on this investigation. Neither entities responded to a list of questions, which included queries as to what of their activities in the two countries might be liable for tax, and whether they could publish country by country revenues generated in Africa. When reached by phone, Google Nigeria’s Head of Communications, Taiwo Kola Ogunlade, said that he couldn’t speak on the company’s taxation status. Facebook spokesperson Kezia Anim-Addo said in an email: ‘Facebook pays all taxes required by law in the countries in which we operate (where we have offices), and we will continue to comply with our obligations’.

Note: The figure of eighteen billion US$ as revenue for Google in ‘Africa and the Middle East’ over 2019 was arrived at as follows. Google’s EMEA figures for 2019 indicate US$ 40 billion revenue for ‘Africa, Europe and the Middle East’ all together. According to this German publication, Google’s revenue in Europe was 22 billion in 2019This leaves US$ eighteen billion for Africa and the Middle East.

This article was first published by our partner ZAM Magazine.

Continue Reading

Trending