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Gen Z, the Fourth Industrial Revolution, and African Universities

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The 4th Industrial Revolution is only one of many forces forcing transformations in higher education. As such, we should assess its challenges and opportunities with a healthy dose of intellectual sobriety, neither dismissing it with Luddite ideological fervour nor investing it with the omniscience beloved by techno-worshippers.

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Gen Z, the Fourth Industrial Revolution, and African Universities
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Like many of you, I try to keep up with trends in higher education, which are of course firmly latched to wider transformations in the global political economy, in all its bewildering complexities and contradictions, and tethered to particular national and local contexts. Of late one cannot avoid the infectious hopes, hysteria, and hyperbole about the disruptive power of the 4th Industrial Revolution on every sector, including higher education. It was partly to make sense of the discourses and debates about this new revolution that I chose this topic.

But I was also inspired by numerous conversations with colleagues in my capacity as Chair of the Board of Trustees of the Kenya Education Network Trust (KENET) that provides Internet connectivity and related services to enhance education and research to the county’s educational and research institutions. Also, my university has ambitious plans to significantly expand its programmes in science, technology, engineering and mathematics (STEM), the health sciences, and the cinematic and creative arts, in which discussions about the rapid technological changes and their impact on our educational enterprise feature prominently.

I begin by briefly underlining the divergent perspectives on the complex, contradictory and rapidly changing connections between the 4th Industrial Revolution and higher education. Then I seek to place it in the context of wider changes. First, in terms of global politics and economy. Second, with reference to the changing nature of work. Third, in the context of other key trends in higher education. Situating the 4th Industrial Revolution in these varied and intersected changes and dynamics underscores a simple point: that it is part of a complex mosaic of profound transformations taking place in the contemporary world that precede and supersede it.

As a historian and social scientist, I’m only too aware that technology is always historically and socially embedded; it is socially constructed in so far as its creation, dissemination, and consumption are always socially marked. In short, technological changes, however momentous, produce and reproduce both old and new opportunity structures and trajectories that are simultaneously uneven and unequal because they are conditioned by the enduring social inscriptions of class, gender, race, nationality, ethnicity and other markers, as well as the stubborn geographies and hierarchies of the international division of labour.

The 4th Industrial Revolution 

As with any major social phenomena and process, the 4th Industrial Revolution has its detractors, cheerleaders, and fence-sitters. The term often refers to the emergence of quantum computing, artificial intelligence, the Internet of things, machine learning, data analytics, big data, robotics, biotechnology, nanotechnology, and the convergence of the digital, biological, and physical domains of life.

Critics dismiss the 4th Industrial Revolution as a myth, arguing that it is not a revolution as such in so far as many innovations associated with it represent extensions of previous innovations. Some even find the euphoric discourses about it elitist, masculinist, and racist. Some fear its destructive potential for jobs and livelihoods, and privacy and freedom as surveillance capitalism spreads its tentacles.

Those who espouse its radical impact say that the 4th Industrial Revolution will profoundly transform all spheres of economic, social, cultural, and political life. It is altering the interaction of humans with technology, leading to the emergence of what Yuval Noah Harari calls homo deus who worships at the temple of dataism in the name of algorithms. More soberly, some welcome the 4th Industrial Revolution for its leapfrogging opportunities for developing countries and marginalised communities. But even the sceptics seek to hedge their bets on the promises and perils of the much-hyped revolution by engaging it.

In the education sector, universities are urged to help drive the 4th Industrial Revolution by pushing the boundaries of their triple mission of teaching and learning, research and scholarship, public service and engagement. Much attention focuses on curricula reform, the need to develop what one author calls “future-readiness” curricula that prepares students holistically for the skills of both today and tomorrow – curricula that integrates the liberal arts and the sciences, digital literacy and intercultural literacy, and technical competencies and ethical values, and that fosters self-directed and personalised learning. Because of the convergences of the 4th Industrial Revolution, universities are exhorted to promote interdisciplinary and transdisciplinary teaching, research and innovation, and to pursue new modes of internationalisation of knowledge production, collaboration, and consumption.

Changes in the global political economy

From Africa’s vantage point, I would argue there are three critical global forces that we need to pay special attention to. First, the world system is in the midst of a historic hegemonic shift. This is evident in the growing importance of Asia and the emerging economies, including Africa and impending closure of Euroamerica’s half a millennium of global dominance. Emblematic of this monumental transition is the mounting rivalry between a slumping United States and a rising China that is flexing its global muscles not least through the Belt and Road Initiative.

Those who espouse its radical impact say that the 4th Industrial Revolution will profoundly transform all spheres of economic, social, cultural, and political life. It is altering the interaction of humans with technology, leading to the emergence of what Yuval Noah Harari calls homo deus who worships at the temple of dataism in the name of algorithms.

The struggle between the two nations and their respective allies or spheres of influence marks the end of America’s supremacy as the sole post-Cold War superpower. The outbreak of the trade war between the two in 2018 represents the first skirmishes of a bitter hegemonic rivalry that will probably engulf at least the first half of the 21st century. The question we have to ask ourselves is: How should Africa manage and position itself in this global hegemonic shift?

This is the third such shift over the last two hundred years. The first occurred between 1870-1914 following the rise of Germany and its rivalry with the world’s first industrial power, Britain. For the world as a whole this led to the “New Imperialism” that culminated in World War I, and for Africa and Asia in colonisation.

The second hegemonic shift emerged out of the ashes of World War II with the rise of two superpowers, the former Soviet Union and the United States. For the world this led to the Cold War and for Asia and Africa decolonisation.

Can Africa leverage the current shift to achieve its long-cherished but deferred dream of sustainable development?

As the highest concentrations of collective intellectual prowess, African universities and researchers have a responsibility to promote comprehensive understanding of the stakes for Africa, and to inform policy options on how best to navigate the emerging treacherous quagmire of the new superpower rivalries to maximise the possibilities and minimise the perils.

More broadly, in so far as China’s and Asia’s rise are as much economic as they are epistemic – as evident in the exponential ascent of Asian universities in global rankings – the challenge and opportunity for our universities and knowledge production systems is how best to pluralise worldly engagements that simultaneously curtail the Western stranglehold rooted in colonial and neocolonial histories of intellectual dependency without succumbing to the hegemonic ambitions of China and Asia.

Second, world demography is undergoing a major metamorphosis. On the one hand, this is evident in the aging populations of many countries in the global North.  China is also on the same demographic treadmill, thanks to its ill-guided one-child policy imposed in 1979 that was only abolished in 2015. On the other hand, Africa is enjoying a population explosion. Currently, 60 per cent of the African population is below the age of 25. Africa is expected to have 1.7 billion people in 2030 (20 per cent of the world’s population), rising to 2.53 billion (26 per cent of the world’s population) in 2050, and 4.5 billion (40 per cent of the world’s population) in 2100.

What are the developmental implications of Africa’s demographic bulge, and Africa’s global position as it becomes the reservoir of the world’s largest labour force? The role of educational institutions in this demographic equation is clear. Whether Africa’s skyrocketing population is to be a demographic dividend or not will depend on the quality of education, skills, and employability of the youth. Hordes of hundreds of millions of ill-educated, unskilled, and unemployable youth will turn the youth population surge into a demographic disaster, a Malthusian nightmare for African economies, polities and societies.

As the highest concentrations of collective intellectual prowess, African universities and researchers have a responsibility to promote comprehensive understanding of the stakes for Africa, and to inform policy options on how best to navigate the emerging treacherous quagmire of the new superpower rivalries to maximise the possibilities and minimise the perils.

The third major transformative force centers on the impact of the 4th Industrial Revolution. During the 1st Industrial Revolution of the mid-18th century, Africa paid a huge price through the Atlantic slave trade that laid the foundations of the industrial economies of Euroamerica. Under the 2nd Industrial Revolution of the late 19th century, Africa was colonised. The 3rd Industrial Revolution that emerged in the second half of the 20th century coincided with the tightening clutches of neocolonialism for Africa. What is and will be the nature of Africa’s levels of participation in the 4th Industrial Revolution. Will the continent be a player or a pawn as in the other 3 revolutions?

The future of work

There is a growing body of academic literature and consultancy reports about the future of work. An informative summary can be found in a short monograph published by The Chronicle of Higher Education. In “The Future of Work: How Colleges Can Prepare Students for the Jobs Ahead”,  it is argued that the digitalisation of the economy and social life spawned by the 4th Industrial Revolution will continue transforming the nature of work as old industries are disrupted and new ones emerge. In the United States, it is projected that the fastest growing fields will be in science, technology, engineering, and healthcare, while employment in manufacturing will decline. This will enhance the importance of the soft skills of the liberal arts, such as oral and written communication, critical thinking and problem solving, teamwork and collaboration, intercultural competency, combined with hard technical skills, like coding.

In short, while it is difficult to predict the future of work, more jobs will increasingly require graduates to “fully merge their training in hard skills with soft skills”. They will be trained in both the liberal arts and STEM, with skills for complex human interactions, and capacities for flexibility, adaptability, versatility, and resilience.

In a world of rapidly changing occupations, the hybridisation of skills, competencies, and literacies together with lifelong learning will become assets. In a digitalised economy, routine tasks will be more prone to automation than highly skilled non-routine jobs. Successful universities will include those that impart academic and experiential learning to both traditional students and older students seeking retraining.

The need to strengthen interdisciplinary and experiential teaching and learning, career services centres, and retraining programmes for older students on college campuses is likely to grow. So will partnerships between universities and employers as both seek to enhance students’ employability skills and reduce the much-bemoaned mismatches between graduates and the labour market. The roles of career centres and services will need to expand in response to pressures for better integration of curricula programmes, co-curricula activities, community engagement, and career preparedness and placement.

In short, while it is difficult to predict the future of work, more jobs will increasingly require graduates to “fully merge their training in hard skills with soft skills”. They will be trained in both the liberal arts and STEM, with skills for complex human interactions, and capacities for flexibility, adaptability, versatility, and resilience.

Some university leaders and faculty of course bristle at the vocationalisation of universities, insisting on the primacy of intellectual inquiry, learning for its own sake, and student personal development. But the fraught calculus between academe and return on investment cannot be wished away for many students and parents. For students from poorer backgrounds, intellectual development and career preparedness both matter as university education maybe their only shot at acquiring the social capital that richer students have other avenues to acquire.

Trends in higher education 

Digital Disruptions  

Clearly, digital disruptions constitute one of the key four interconnected trends in higher education that I seek to discuss. The other three include rising demands for public service and engagement, unbundling of the degree, and escalating imperatives for lifelong learning.

More and more, digitalisation affects every aspect of higher education, including research, teaching, and institutional operations. Information technologies have impacted research in various ways, including expanding opportunities for “big science” and increasing capacities for international collaboration. The latter is evident in the exponential growth in international co-authorship.

Also, the explosion of information has altered the role of libraries as repositories of print and audio-visual materials into nerve centres for digitised information communication, which raises the need for information literacy. Moreover, academic publishing has been transformed by the acceleration and commercialisation of scholarly communication. The role of powerful academic publishing and database firms has greatly been strengthened. The open source movement is trying to counteract that.

Similarly far reaching is the impact of information technology on teaching and learning. Opportunities for technology-mediated forms of teaching and learning encompassing blended learning, flipped classrooms, adaptive and active learning, and online education have grown. This has led to the emergence of a complex melange of teaching and learning models encompassing the face-to-face-teaching model without ICT enhancement; ICT-enhanced face-to-face teaching model; ICT-enhanced distance teaching model; and the online teaching model.

Spurred by the student success movement arising out of growing public concerns about the quality of learning and the employability skills of graduates, “the black box of college”—teaching and learning—has been opened, argues another recent monograph by The Chronicle entitled, “The Future of Learning: How colleges can transform the educational experience”. The report notes, “Some innovative colleges are deploying big data and predictive analytics, along with intrusive advising and guided pathways, to try to engineer a more effective educational experience. Experiments in revamping gateway courses, better connecting academic and extracurricular work, and lowering textbook costs also hold promise to support more students through college.” For critics of surveillance capitalism, the arrival of Big Brother on university campuses is truly frightening in its Orwellian implications.

There are other teaching methods increasingly driven by artificial intelligence and technology that include immersive technology, gaming, and mobile learning, as well as massive open online courses (MOOCs), and the emergence of robot tutors. In some institutions, instructors who worship at the altar of innovation are also incorporating free, web-based content, online collaboration tools, simulation  or educational games, lecture capture, e-books, in-class polling tools, as well as student smartphones and tablets,  social media , and e-portfolios as teaching and learning tools.

Some of these instructional technologies make personalised learning for students increasingly possible. The Chronicle monograph argues for these technologies and innovations, such as predictive analytics, to work it is essential to use the right data and algorithms, cultivate buy-in from those who work most closely with students, pair analytics with appropriate interventions, and invest enough money. Managing these innovations entails confronting entrenched structural, financial, and cultural barriers,and “require investments in training and personnel”.

For many under-resourced African universities with inadequate or dilapidated physical and electronic infrastructures, the digital revolution remains a pipe dream. But such is the spread of smart phones and tablets even among growing segments of African university students that they can no longer be effectively taught using old pedagogical methods of the born-before-computers (BBC) generation. After spending the past two decades catering to millennials, universities now have to accommodate Gen Z, the first generation of truly digital natives.

Another study from The Chronicle entitled “The New Generation of Students: How colleges can recruit, teach, and serve Gen Z” argues that this “is a generation accustomed to learning by toggling between the real and virtual worlds…They favoir a mix of learning environments and activities led by a professor but with options to create their own blend of independent and group work and experiential opportunities”.

For Gen Z knowledge is everywhere. “They are accustomed to finding answers instantaneously on Google while doing homework or sitting at dinner…They are used to customisation. And the instant communication of texting and status updates means they expect faster feedback from everyone, on everything.”

For such students, the instructor is no longer the sage on stage from whom hapless students passively imbibe information through lectures, but a facilitator or coach who engages students in active and adaptive learning. Their ideal instructor makes class interesting and involving, is enthusiastic about teaching, communicates clearly, understands students’ challenges and issues and gives guidance, challenges students to do better as a student or as a person, among several attributes.

For Gen Z knowledge is everywhere. “They are accustomed to finding answers instantaneously on Google while doing homework or sitting at dinner…They are used to customisation. And the instant communication of texting and status updates means they expect faster feedback from everyone, on everything.”

Teaching faculty to teach the digital generation, and equipping faculty with digital competency, design thinking, and curriculum curation, is increasingly imperative. The deployment of digital technologies and tools in institutional operations is expected to grow as universities seek to improve efficiencies and data-driven decision-making. As noted earlier, the explosion of data about almost everything that happens in higher education is leading to data mining and analytics becoming more important than ever. Activities that readily lend themselves to IT interventions include enrollment, advising, and management of campus facilities. By the same token, institutions have to pay more attention to issues of data privacy and security.

Public Service Engagements 

The second major trend centres on rising expectations for public engagement and service. This manifests itself in three ways. First, demands for mutually beneficial university-society relationships and the social impact of universities are increasing. As doubts grow about the value proposition of higher education, pressures will intensify for universities to demonstrate their contribution to the public good in contributing to national development and competitiveness, notwithstanding the prevailing neoliberal conceptions of higher education as a private good.

On the other hand, universities’ concerns about the escalating demands of society are also likely to grow. The intensification of global challenges, from climate change to socio-economic inequality to geopolitical security, will demand more research and policy interventions by higher education institutions. A harbinger of things to come is the launch in 2019 by the Times Higher Education of a new global ranking system assessing the social and economic impact of universities’ innovation, policies and practices.

Second, the question of graduate employability will become more pressing for universities to address. As the commercialisation and commodification of learning persists, and maybe even intensifies, demands on universities to demonstrate that their academic programmes prepare students for employability in terms of being ready to get or create gainful employment can only be expected to grow. Pressure will increase on both universities and employers to close the widely bemoaned gap between college and jobs, between graduate qualifications and the needs of the labour market.

Third is the growth of public-private partnerships (PPPs). As financial and political pressures mount, and higher education institutions seek to focus on their core academic functions of teaching and learning, and generating research and scholarship, many universities have been outsourcing more and more of the financing, design, building and maintenance of facilities and services, including student housing, food services, and monetising parking and energy. Emerging partnerships encompass enrollment and academic programme management, such as online programme expansion, skills training, student mentoring and career counseling.

Another Chronicle monograph, “The Outsourced University: How public-private partnerships can benefit your campus”, traces the growth of PPPs. They take a variety of forms and duration. It is critical for institutions pursuing such partnerships to determine whether a “project should be handled through a P3,” clearly “articulate your objectives, and measure your outputs,” to “be clear about the trade-offs,” “bid competitively,” and “be clear in the contract.”

The growth of PPPs will lead to greater mobility between the public and private sectors and the academy as pressures grow for continuous skilling of students, graduates, and employees in a world of rapidly changing jobs and occupations. This will be done through the growth of experiential learning, work-related learning, and secondments.

Unbundling of the Degree

The third major transformation that universities need to pay attention to centers on their core business as providers of degrees. This is the subject of another fascinating monograph in The Chronicle entitled “The Future of The Degree: How Colleges Can Survive the New Credential Economy”. The study shows how the university degree evolved over time in the 19th and 20th centuries to become a highly prized currency for the job market, a signal that one has acquired a certain level of education and skills.

As economies undergo “transformative change, a degree based on a standard of time in a seat is no longer sufficient in an era where mastery is the key. As a result, we are living in a new period in the development of the degree, where different methods of measuring learning are materialising, and so too are diverse and efficient packages of credentials based on data.”

In a digitalized economy where continuous reskilling becomes a constant, the college degree as a one-off certification of competence, as a badge certifying the acquisition of desirable social and cultural capital, and as a convenient screening mechanism for employers, is less sustainable.

Clearly, as more employers focus on experience and skills in hiring, and as the mismatch between graduates and employability persists or even intensifies, traditional degrees will increasingly become less dominant as a signal of job readiness, and universities will lose their monopoly over certification as alternative credentialing systems emerge.

As experiential learning becomes more important, the degree will increasingly need to embody three key elements. First, it needs to “signify the duality of the learning experience, both inside and outside the classroom. Historically, credentials measured the learning that happened only inside the university, specifically seat time inside a classroom.”

Second, the “credential should convey an integrated experience…While students are unlikely to experience all of their learning for a credential on a single campus in the future, some entity will still need to help integrate and certify the entire package of courses, internships, and badges throughout a person’s lifetime.”

Third, credentials “must operate with some common standard… For new credentials to matter in the future, institutions will need to create a common language of exchange” beyond the current singular currency of an institutional degree.

The rise of predictive hiring to evaluate job candidates and people analytics in the search for talent will further weaken the primacy of the degree signal. Also disruptive is the fact that human knowledge, which used to take hundreds of years, and later decades, to double is now “doubling every 13 months, on average, and IBM predicts that in the next couple of years, with the expansion of the internet of things, information will double every 11 hours. That requires colleges and universities to broaden their definition of a degree and their credential offerings.”

All these likely developments have serious implications for the current business model of higher education. Universities need “to rethink what higher education needs to be — not a specific one-time experience but a lifelong opportunity for learners to acquire skills useful through multiple careers. In many ways, the journey to acquire higher education will never end. From the age of 18 on, adults will need to step in and out of a higher-education system that will give them the credentials for experiences that will carry currency in the job market.”

In short, as lifelong careers recede and people engage in multiple careers, not just jobs, the quest for higher education will become continuous, no longer confined to the youth in the 18-24 age range. “Rather than existing as a single document, credentials will be conveyed with portfolios of assets and data from learners demonstrating what they know.”

Clearly, as more employers focus on experience and skills in hiring, and as the mismatch between graduates and employability persists or even intensifies, traditional degrees will increasingly become less dominant as a signal of job readiness, and universities will lose their monopoly over certification as alternative credentialing systems emerge.

Increasing pressures of life for lifelong learning will lead to the unbundling of the degree into project-based degrees, hybrid baccalaureate and Master’s degrees, ‘microdegrees’, and badges. Students will increasingly stack their credentials of degrees and certificates “to create a mosaic of experiences that they hope will set them apart in the job market”.

As African educators we must ask ourselves: How prepared are our universities for the emergence and proliferation of new credentialing systems? How are African universities effectively integrating curricular and co-curricular forms of learning in person and online learning? How prepared and responsive are African universities to multigenerational learners, traditional and emerging degree configurations and certificates? What are the implications of the explosion of instructional information technologies for styles of student teaching and learning, the pedagogical roles of instructors, and the dynamics of knowledge production, dissemination, and consumption?

Lifelong Learning 

The imperatives of the digitalised economy and society for continuous reskilling and upskilling entail lifelong and lifewide learning. The curricula and teaching for lifelong learning must be inclusive, innovative, intersectional, and interdisciplinary. It entails identifying and developing the intersections of markets, places, people, and programmes; and helping illuminate the powerful intersections of learning, life, and work. Universities need to develop more agile admission systems by smarter segmentation of prospective student markets (e.g., flexible admission by age group and academic programme); some are exploring lifelong enrollment for students (e.g., National University of Singapore).

Lifelong learning involves developing and delivering personalised learning, not cohort learning; assessing competences, not seat tim,e as most universities currently do. “Competency-based education allows students to move at their own pace, showcasing what they know instead of simply sitting in a classroom for a specific time period.”

Lifelong learning requires encouraging enterprise education and an entrepreneurial spirit among students, instilling resilience among them, providing supportive environments for learning and personal development, and placing greater emphasis on “learning to learn” rather than rote learning of specific content.

As leaders and practitioners in higher education, we need to ask ourselves some of the following questions: How are African universities preparing for and going to manage lifelong learning? How can universities effectively provide competency-based education? How can African universities encourage entrepreneurial education without becoming glorified vocational institutions, and maintain their role as sites of producing and disseminating critical scholarly knowledge for scientific progress and informed citizenship?

Conclusion 

In conclusion, the 4th Industrial Revolution is only one of many forces forcing transformations in higher education. As such, we should assess its challenges and opportunities with a healthy dose of intellectual sobriety, neither dismissing it with Luddite ideological fervour nor investing it with the omniscience beloved by techno-worshippers. In the end, the fate of technological change is not pre-determined; it is always imbricated with human choices and agency.

At my university, the United States International University (USIU)-Africa, we’ve long required all incoming students to take an information technology placement test as a way of promoting information literacy; we use an ICT instructional platform (Blackboard), embed ICT in all our institutional operations, and we are increasingly using data analytics in our decision-making processes. We also have a robust range of ICT degree programmes and are introducing new ones (BSc in software engineering, data science and analytics, AI and robotics, an MSc in cybersecurity, and a PhD in Information Science and Technology), and what we’re calling USIU-Online.

 

This article is the plenary address by Paul Tiyambe Zeleza at the Universities South Africa, First National Higher Education Conference, “Reinventing SA’s Universities for the Future” CSIR ICC, Pretoria, October 4, 2019.

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Paul Tiyambe Zeleza is a Malawian historian, academic, literary critic, novelist, short-story writer and blogger.

Ideas

Africapitalism’ and the Limits of Any Variant of Capitalism

Stefan Ouma provides a critical account of Africapitalism as well as an assessment of the future/s it imagines, what it silences and its potential to transform African economies. Ouma concludes that the ecologically destructive and dehumanising architecture of our global economic system provides further evidence to condemn any variant of capitalism.

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Africapitalism’ and the Limits of Any Variant of Capitalism
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In 2019, Tanzanians mourned prominent businessperson Ali Mufuruki (1959-2019). Under the umbrella of his InfoTech Investment Group, he championed the cause of indigenous ownership of businesses in the country. He was successful at his trade, representative of a group of ‘Tanzanians of African origin who have been the voice of the private sector during – and since – the transition to liberalization in the 1980s/90s.

He was also an ‘ideational entrepreneur’ who promoted the structural transformation of African economies to engender less extraverted and extractive forms of development. With the aim to safeguard the ‘gains of liberalization’, he co-founded and chaired the CEO Roundtable of Tanzania (CEOrt), providing a forum for industry leaders to constructively engage the government on policy issues. Together with his fellow countrymen Rahim Mawji, Moremi Marwa, Gilman Kasiga, he published a book to which the President himself, John Pombe Magufuli wrote the foreword: Tanzania’s Industrialisation Journey, 2016-2056: From an Agrarian to a Modern Industrialised State in Forty Years (2017).

Mufuruki also spread his ideas in a TED talk, where he debunked the myth of ‘Africa rising’ with great verve, as some critical political economists have also done. Yet despite being touted as an ‘intellectual of capital’ by historian Chambi Chachage, you won’t find the term capitalism mentioned in Mufuruki and colleagues’ book other than when another cited author uses the term. Instead, less suspicious terms such as ‘the market’ and ‘the private sector’ are put to use. After all, upebari (capitalism) and mapebari (capitalists) are still terms used widely with a negative connotation in a country where socialism is still enshrined in the constitution.

In contrast, in Nigeria, another intellectual of capital, Tony Elumelu, was far less hesitant to mobilise the vocabulary of capitalism for his purposes when he came up with the term Africapitalism in 2011. Since then, the notion has become a popular hashtag in social media, and now garnishes the titles of at least three books (Edozie 2017Idemudia and Amaeshi 2019Amaeshi et al. 2018).

Like Mufuruki, Elumelu is someone for whom capitalism has worked very well, having turned the Nigerian United Bank of Africa (UBA) into a pan-African player in the 2000s. He is now the board chairman of Heirs Holding, a pan-African private equity firm based in Lagos. For the past ten years, he has also headed a large philanthropic enterprise dedicated to fostering entrepreneurship across the continent.

Like Mufuruki, Elumelu is representative of ‘Africa’s new, burgeoning capitalist class’ – a new crop of African entrepreneurs who not only have amassed huge fortunes, but who also increasingly shape representations of the continent on matters of economic and social policy in the battle for minds in and beyond Africa. As argued in a recent post to this blog series by Nigerian historian Moses Ochonu, engagement with this new crop of entrepreneurs is often fraught with two interrelated problems: ‘One is a failure to develop an analytical toolkit that accommodates the capacious and amorphous entrepreneurial lives of Africans who were pigeonholed into the new neoliberal category of the entrepreneur. The second is a failure to adequately critique the exuberant, self-assured discourse of entrepreneurs as economic messiahs and replacements for the economic responsibilities of the dysfunctional African state.’ I am taking this finding as an invitation to critically think through Africapitalism beyond capitalism.

Originally, ‘Africapitalism’ only provided a shadowy outline of a new economic blueprint for structural change in Africa. Elumelu underlined that ‘its primary goal is greater economic prosperity and social wealth, driven by Africa’s private sector – its domestic economies, markets, and businesses.’  Its agenda, however, became subsequently more philosophically refined as part of an academic project sponsored by Elumelu’s Foundation at the University of Edinburgh School of Business.

The Nigerian academics involved reframed the Africapitalist ethos as a set of fundamental values through which capitalism is supposed to be made to work for Africans. ‘[A] sense of progress and prosperity,’ ‘a sense of parity,’ ‘a sense of peace and harmony’ and a ‘sense of place and belongingness’ were put at the heart of the Africapitalist project.

At first it seems puzzling that someone would unashamedly embrace capitalism as an ideology of the future on a continent that has historically most brutally suffered under it, and which until today – by many accounts – continues to do so. Making a case for capitalism so boldly happens rarely anywhere in the world, especially outside the UK and the US, where Milton Friedman and others have promoted capitalism as a free-enterprise system that brings humans’ true nature to the fore. Friedman even ran a TV show on it.

Originally, ‘Africapitalism’ only provided a shadowy outline of a new economic blueprint for structural change in Africa. Elumelu underlined that ‘its primary goal is greater economic prosperity and social wealth, driven by Africa’s private sector – its domestic economies, markets, and businesses.’

Even in other core capitalist countries such as Germany, politicians or business folk tend to use less controversial vocabulary such as ‘the market economy’ or ‘our economic system’ when they talk about the world they inhabit. When the leader of the Youth Wing of the Social Democrats (JUSOS) in Germany explicitly used the term capitalism in 2019 to argue that what is assumed to be God-given can actually be changed (calling for labour to own stakes in large businesses), all hell broke loose. That the term is avoided in public debate happens even more often across Africa.

Most independence governments shunned capitalism as the ideology of the colonisers, and until today, many leaders shy away from openly embracing it as the ideology of choice. Almost 30 years ago, Paul Zeleza noted that even in countries with a history of pro-capitalist development since independence, such as Kenya, politicians, entrepreneurs and academics rarely made a public case for capitalism. A recent piece by ROAPE’s Jörg Wiegratz for this series on roape.net and a 2019 intervention of the Mathare Social Justice Center seem to reaffirm the discursive invisibility of capitalism in at least that corner of the continent.

The enthusiastic promotion of Africapitalism also seems puzzling given that capitalism has become increasingly questioned as an ideology-cum-economic system that can take us into the future. The global financial crisis, all-time high global inequalities, but also the increasingly obvious ecological limits of an economic system based on infinite growth, present challenges to anyone trying to make a continued case for capitalism.

Critical books diagnosing capitalism as ready to implode, imagining post-capitalist futures or directly attacking those benefiting disproportionally from the machinations of contemporary capitalism have become plentiful, often reminding us that it is either capitalism or the planet.

The enthusiastic promotion of Africapitalism also seems puzzling given that capitalism has become increasingly questioned as an ideology-cum-economic system that can take us into the future

In the wake of the global financial crisis 2007-8, even the promoters of global corporate elites admit that capitalism has come ‘under siege.’ With debates on inequality and climate change at an all-time high, now even some of the biggest profiteers from financialized capitalism, such as investment banker Jamie Dimon, want to save capitalism from capitalism.

The Corona virus crisis is just the latest product of capitalism’s ‘blasted landscapes.’ As Senegalese economist Felwine Sarr recently argued in two widely circulating essays in the German Newspaper Sueddeutsche Zeitung, the COVID-19 pandemic is the product of the minority world’s ‘imperial mode of living’ which partly has been taken up in China and other emerging economies, and now puts the fallout on the rest of us. In a way, it may be considered the harbinger of the climate catastrophe to come – a catastrophe for which only a relatively small part of the world population is responsible (especially if environmental debt is calculated per capita and historically).

The Corona crisis also calls into question the debt-financed growth strategies of many African governments, to the extent that a group of 100 African intellectuals have called for a complete overhaul of the African variant of neoliberal capitalism, where road and airport infrastructures and other ‘urban fantasies’ are prioritized over human well-being.

At the same time, there have been various developments that help us make sense of why ‘Africapitalism’ as an idea emerged and has been taken up so enthusiastically across Africa, and reverberates powerfully even in times of Corona (Elumelu’s UBA just announced a $14 million COVID-19 relief support across Africa).

First, since 2008, Africa has come to be heralded as the last frontier of capitalism, most prominently encapsulated in the ‘Africa rising’ narrative. Although even some intellectuals of capital have been wary of the danger of a single story, such as Mufuruki himself, this narrative has nevertheless redirected the gaze of global capital towards the continent.

As the late Thandika Mkandawire pointed out: ‘Ideas matter. While not always decisive, they do have an autonomous and noticeable effect on interests and institutions.’ Indeed, many African corporate and political elites have tried to exploit this moment of increased global attention, especially the new crop of mega-rich entrepreneurs that Elumelu is part of: the Kirubis, Motsepes and Dangotes of the continent.

Since 2008, Africa has come to be heralded as the last frontier of capitalism, most prominently encapsulated in the ‘Africa rising’ narrative.

Elumelu himself seems to admit that Africa should not rise in a business-as-usual mode. To remedy potential conflicts arising from jobless growth, accumulation by resource extraction and increasing demographic pressures, it ‘is in capital’s own interest to think long-term and invest for social impact’  Why not bet on a mode of production that has, as some would say, proven to be the largest wealth-creating machine in human history?

For Africapitalists, it just depends on the variety of capitalism and how inclusive it is made. It is along these lines that promoters of Africapitalism want to free capitalism from its most excessive and socially destructive features, turning it into a win-win machine for capitalists and the communities they ‘serve’. This is supposed to happen through voluntary, private sector-driven initiatives rather than through taming capitalism through public regulation.

Second, there has been an increasing shift in development thinking over the past decade. The private sector is now being hailed as the prime agent of economic change. The entry of philanthropic entities, private equity funds, impact investors and conventional multinationals into the business of development indicates this trend.

This has been buttressed by a range of concepts that try to give capitalist activities greater legitimacy, such as ‘inclusive capitalism’, ‘corporate citizenship’, ‘social enterprise’, ‘creating shared value’, ‘impact investing’, or the ‘double/triple bottom line approach’.

Africapitalism relates to these intellectual currents, but at the same time claims to supersede them. In such an environment, it sounds increasingly natural to make entrepreneurs – as ‘wealth creators,’ ‘job creators,’ ‘innovators,’ ‘problem-solvers,’ ‘disruptors’ and ‘givers’ the prime movers of economic transformation. Yet those who also create value, be it the state or workers, are largely absent in this narrative.

Third, there are long-standing questions about how to think about Africa’s future development trajectories and through which means ‘development’ could best be achieved. The idea of Africapitalism makes a bold contribution to this debate, reinjecting African agency into the discourse of economic transformation. Many independence leaders were seriously committed to a politics of the future, creating long-term visions of how their societies should develop (e.g., Nkrumah, Senghor, Nyerere) This particular version of politics of the future faded away from the 1980s onwards, when the projects they were based on had run into economic troubles.

‘The African state,’ variously described as socialist, rent-seeking, vampiristic, centralised, clientelist, neopatrimonial, predatory, kleptocratic or failed (Mkandawire 2001: 293), was suddenly blamed for all kinds of evils and the lost development decades of the 1980s and 1990s. Statist and home-grown academic visions of societal transformation were gradually replaced by copy-and-paste adjustment practices. Issa Shivji aptly described this situation a few years ago: ‘The globalization hegemony dictated that the “villages” of the globalizing world did not need thinkers, but only purveyors of thought generated elsewhere.’  Until the early 2000s, African economies had become even greater importers of foreign concepts, something that has always been part of the (post)colonial experience.

The Corona crisis also calls into question the debt-financed growth strategies of many African governments, to the extent that a group of 100 African intellectuals have called for a complete overhaul of the African variant of neoliberal capitalism, where road and airport infrastructures and other ‘urban fantasies’ are prioritized over human well-being.

The longstanding calls for the domestication of ‘development’ moving beyond imperial Western thought, overcoming the colonisation of mind and language, as well as the more recent calls for Africentricity, Africonsciousness and Afromodernity have been responses to this predicament. The idea of Africapitalism fits with the idea that development in Africa should happen with a ‘sense of place’.

It connects with the long-standing desire of African and African Diaspora people to reassert the continent’s role in the world. Frantz Fanon once described this desire powerfully in The Wretched of the Earth, ‘….if we want humanity to take one step forward, if we want to take it to another level than the one where Europe has placed it, then we must innovate, we must be pioneers.’

While closely linked to its Nigerian origin, Africapitalism also ties into and takes inspiration from another vision for Africa’s transformation, Ubuntu economics. Both philosophies are said to ‘embed within themselves the principles of self-determination, African agency, African knowledge and an Africacentric symbolic identity’.

Both philosophies are mobilised to carve out new spaces of thought and practice from the global political economy for accumulating both economic and social wealth in Africa. But Africapitalists have no problem with the foreignness of capitalism, and for the more libertarian kind it is in fact socialist practices that are foreign imports into a context where ‘(p)rofit, trade, and entrepreneurship are inherent aspects of indigenous economic systems’.

For these libertarian Africapitalists, the capitalist ethic is a product of nature (rather than a product of history) – a finding which has been critiqued in an earlier contribution to this blog series by Horman Chitonge. ‘Africapitalism’ also can be related to the long-standing concept of Pan-Africanism, but comes across as a globally more appealing and neutral concept, as Pan-Africanism always had an anti-imperial and anti-capitalist ideological core.

So, what does the concept actually deliver for the continent (and its diaspora people) in terms of transformative, emancipatory and redistributive potential? Despite the welcome Afrocentric and Afroconscious rhetoric, Africapitalists, much like most other politicians and business folk fail to fully ‘open up the present to more than its own repetition.’

This does not deny the need for Africans to advance a more humane, place-based, and connected economy that tries to radically transcend capitalism as the continent has known it. As Mkandawire recently remarked, we should be essentially upbeat about Africa, but it ‘must be given space, or capture space, to think its own way out of its predicament’.

At a time when the true costs of climbing up the capitalist ladder are more obvious than ever; Africa is in a good position to generate real and viable alternative economic futures. But this requires much more than promoting Afrocentric entrepreneurship and needs an approach that enables us to seriously break with the coloniality of power, knowledge and being that has shaped Africa’s adverse insertion into the global political economy since the colonial period. It is only this systemic overhaul which will set African economies on a new footing.

Frantz Fanon once described this desire powerfully in The Wretched of the Earth, ‘….if we want humanity to take one step forward, if we want to take it to another level than the one where Europe has placed it, then we must innovate, we must be pioneers.’

After all, Africanization does not equal decolonization. By relying on categories that were often formed during colonial encounters (such as ‘growth,’ ‘efficiency’; ‘nature serves man as a resource’), by largely subscribing to the current orthodoxy in management and business speak, and by not being grounded in a broader alliance of social forces and ontologies, Africapitalists fail to make visible and utilise the full range of unrealised possibilities that the continent offers when it comes to thinking through capitalism beyond capitalism. They promote a world where redistribution happens because of entrepreneurs’ commitments to the idea of shared value rather than improved tax collection or other forms of redistribution.

Africapitalists also are ‘devoted to the unlikely idea that the bitter conflicts between labour and capital in the West can be replaced on the continent by capitalism informed by the humanistic solidarities of Ubuntu. They imagine a world where capitalist enterprises create economic and social value in the communities they serve through win-win arrangements. It is also a world where large foundations are tasked with economic and social transformation more broadly, despite the increasing evidence of the flaws of the venture philanthropy model/philanthrocapitalism, and the wanting labour, environmental and corporate governance track record of companies that are being cited as good examples of Africapitalism (take Zambeef or Nakumatt, for instance).

In order to revoke the current economic order, we need concerted, pan-African and radical efforts to remake African economies, which are at the same time grounded in the awareness that Africa is part of a wider global ensemble in which humans are one among many species. This does not mean that Africans must scale down on their desire to live dignified, fulfilled, and secure lives, but that anyone engaging with the future must dare to move outside a frame that may hold for only another few decades before it will fully fall apart.

Such questions may be dismissed against the background that Africapitalism is first and foremost about attaining the discursive power to shape one’s own economic destiny in a region where millions of people are yet to enjoy the material wealth of the North, or many emerging economies, and thus lack the privilege to think beyond capitalism. During such an endeavour, questions of environmentalism may be treated rather agnostically.

Yet, even though attaining the power to shape one’s own destiny and developing a set of discursive, place-based concepts that can help build alliances around a project of economic transformation are certainly key to more prosperous African futures, it can be questioned whether this should be done through practices that have historically built wealth in certain regions of the world only on the back of cheap nature, food, labour and energy elsewhere.

The COVID-19 pandemic is nature’s way to fight back, bringing the technologically sophisticated yet often ecologically destructive and dehumanising architecture of contemporary supply chain capitalism to its knees, further proves the ecological and social limits of any variant of capitalism. It is worth re-reading Fanon: ‘So comrades, let us not pay tribute to Europe by creating states, institutions, and societies that draw their inspiration from it. Humanity expects other things from us than this grotesque and generally obscene emulation.’

The article was published in the Review of African Political Economy journal extended version originally published in Africapitalism: Sustainable Business and Development in Africa by Idemudia and Amaeshi (eds) 2019.

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Urban Africa Under Stress: Rethinking Economic Pressure in Cities

As in other neoliberal cities, the remedies for significant economic burdens are individualized and the political economy that scaffolds them often remains hidden from view. Instead, predatory mobile loans, principally targeting youth, are offered at exorbitant interest rates, the booming church industry thrives on a prosperity gospel that promises individual riches in exchange for prayers and the country’s development is projected in a number of ‘vision’ documents that promote large-scale infrastructure rather than an improvement in basic conditions for all Kenyans.

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Urban Africa Under Stress: Rethinking Economic Pressure in Cities
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Research on economic pressure in Africa has been approached from diverse vantage points. While economists frame ‘pressure’ as a consequence of market failures, or as a by-product of macro-economic measures such as structural adjustment reforms or technological and political change, anthropologists who zoom in on the economic pressures individuals face in their everyday lives, i.e. the lived experiences of those who are ‘under pressure’ have focused more on topics such as uncertainty and precarity. Alternatively, economic psychologists tend to naturalise pressure as an individual response to an adverse financial situation, eclipsing the varied ways pressure is intertwined with and shaped by broader societal transformations, power structures, social relations and obligations, and webs of exchange. There are currently no studies we are aware of that focus on the multi-faceted societal constitution of economic pressure in capitalist Africa, or that compare how pressure is experienced across gender, generation or socioeconomic groups.

How do we study pressure?

Our review of existing literature on economic pressure has identified two main gaps. On the one hand, most ethnographic studies focus on a particular group/community (e.g. female gig workers, urban poor, farmers, security guards, an extended family or even a few individuals). How the experiences and drivers of pressure differ across groups according to class, income, gender, geography, profession etc., is largely absent from the literature. On the other hand, studies tend to frame pressure in the context of one specific driver (e.g. agrarian change, consumer credit, financial inclusion, changes in the structure of work, unemployment, supply chain dynamics, etc.), often in a broader context of neoliberalism, commercialisation, and globalisation.

Our blog series aims to address these gaps by exploring economic pressure in a more situational and practice-oriented way, in which pressure is understood as an affect produced in and through specific geographies, temporalities, and social and economic relations. This allows us to apprehend how specific geographies such as neighbourhoods, estates, markets or cities are pressure inducing or “under pressure”. We frame economic pressure as a multi-causal and highly localized phenomenon shaped by broader geographic, social, cultural, economic and political environments, while, at the same time, acknowledging the value of a comparative approach that captures the experience of pressure across social and economic classes.

Correspondingly, our intervention – in this blog series and beyond – aims to critically engage with and counter two main positions in the literature and policy debates. First, we argue that as a social experience, economic pressure and stress are not confined to the urban poor. By widening the categories of actors (e.g. ultra-poor, poor, middle-class, rich and super rich), our analysis and debate expands the portrayal of pressure as an experience that solely affects the poor; whether it be the “hustler” striving to make ends meet on the streets of Nairobi or families using food banks in Johannesburg. Understanding the cross-class characteristics of pressure is key to understanding how it has become an ubiquitous phenomenon constitutive of capitalist society and everyday life.

Second, we question the assumptions regarding the power of individual action and choice prevalent among psychologists, behavioural economists and other social scientists working on the productive potential of hope, aspirations and self-efficacy (e.g. the work of behavioural economists such as Johannes Haushofer as well as anthropologists such as Arjun Appadurai). Instead, we take the position that economic pressure is produced through the intersection of overarching ideologies, economic structures, social webs of exchange, and the dynamics of capitalism that shape the lives of all classes in the urban population. Based on our review of existing literature and preliminary qualitative interviews conducted in Nairobi, we suggest that economic pressure is an emotional state engendered by a cognitive assessment of a real/imagined disbalance between real/imagined economic demands and the real/imagined ability to fulfil them. Crucially, the existence of economic pressure does not necessarily entail an actual disparity between demands and abilities; rather, it is a (inter)subjective experience produced by changes in an actor’s social and material environment that suggests to him or her that such a disbalance exists and is relevant, significant and urgent. Hence, we do not conceptualise economic pressure as a quantitatively measurable individual feeling, but as an affect whose constitution, magnitude and presence are a function of atmospheric changes in one’s environment. Economic pressure is thus better grasped by local idioms such as piny pek (Dholuo, “the world weighs heavy”) or ngori (Sheng, “trouble”) than through a set of objective criteria.

Where do we study pressure?

Our focus is the capitalist and especially neoliberal city. The effects of neoliberal restructuring and regimes of accumulation have been particularly inimical in African cities, which face ever deepening informalisation, inequality, insecurity, economic uncertainty and attendant excessive policing, yet continue to pulsate with the promise of possibilities. African cities are particularly fertile sites in which to examine pressure as they are agglomerations of rapid and often turbulent social, cultural and economic change triggered by late capitalism, and are home to a range of interconnected actors who experience and manage, as well as co-produce and co-intensify, pressure across class and other divides. City dwellers also experience a constellation of conditions that are distinct from their rural counterparts: they have more business opportunities and risks; face a range of infrastructural constraints, from rising housing and transport expenses to a shortage of affordable housing, water and sanitation; experience high levels of poverty, widespread under-/un-employment, and intense competition for jobs with concomitant downward pressure on wages in the context of increasing rural urban migration; are more vulnerable to urban criminals or state agents (police etc.) that rob them of their earnings or assets, and their financial demands are not fixed, but ever-changing, often with an accelerated speed, and abetted by mobile technology, the self-help industry, and loan apps that encourage financial action. In addition, urban residents are more plugged into the circuits of global capitalist culture (technological connections, media, music, wealth, digital work, etc.) and the latter’s imaginaries of prosperity contribute to the trend of restless and calculative agency.

This complex and shifting landscape of ‘pressure in the city’ demands an inter-disciplinary approach to apprehend how economic demands, obligations and constraints interweave with the social worlds and life experiences of city dwellers. This includes, on the one hand, examining the inter-relationship between available income (and saleable assets more widely) and the necessary and desired demands that actors (and their families, kin, and social networks) face. This income-demands gap (as distinguished from the income-expenditure gap) is a key catalyst of ‘pressure’. On the other hand, this requires tracking pressure across noneconomic registers – financial, cultural, social, psychological – and gaining a comprehensive picture of how these registers relate. For example, while pressure is associated with a number of common somatic symptoms such as sleeplessness, ulcers, lack of energy, depression, over-activity and burn-out, it may also create the conditions that prompt an array of actions such as gender-based violence, concealing or switching phones to avoid being observed or contacted, gambling and drinking, which can induce new psychological, financial and social pressures. Attaining a full picture of pressure — its drivers, symptoms and consequences — thus necessitates an inter-disciplinary and multi-methodological approach.

“One illness away from poverty”: Economic pressures and uncertainty in Nairobi

In the context of the pandemic, Nairobi continues to be a city of disparities. Against the looming local and global slow-down that the Covid-19 crisis has provoked, a recent poll shows that vast sections of the Kenyan population are now unable to pay for utilities (67%), rent, or medicine, can no longer remit money to dependants (79%), have defaulted on loans repayment (75%), and had to turn to food donations. Significantly, 81% of those surveyed are anxious and stressed, while 52% felt helpless and 33% angry. Indeed, the conditions urban residents face are stressful. With the large tracts of the promised Covid-19 stimulus package monies unaccounted for and seemingly never expended, the inconsistent food donations in poor communities tapering, and one million jobs lost in three months, daily life is now even more difficult to plan. But these pressures build on dynamics that existed before the pandemic. In February 2020, before the government implemented a lockdown, census data documented that 39% of youth (between the ages of 18-35) were unemployed. Likewise, over half of those employed in 2018 earned less than 10,000 Kenya shillings a month [less than $100], which is barely enough to cover basic necessities such as food, transport, housing and clothing. With privatization and the high cost of basic services such as rent, healthcare, water and, in many poor neighbourhoods, even sanitation facilities, meeting one’s every day needs is a significant financial strain. Even the middle-class are only “one illness away from poverty” due to the inordinate cost of private health care and similar shocks.

As in other neoliberal cities, the remedies for these significant economic burdens are individualized and the political economy that scaffolds them often remains off-staged/hidden from view. Instead, predatory mobile loans, principally targeting youth, the poorest and underemployed, are offered at exorbitant interest rates, the booming church industry thrives on a prosperity gospel that promises individual riches in exchange for prayers (and often significant tithes) and the country’s development is projected in a number of ‘vision’ documents that promote large-scale infrastructure (such as roads, railways, airports etc) rather than an improvement in basic conditions for all Kenyans.

It is against these realities, that, over the last few years, public discourse more and more features words such as “mental health” and “burnout.” It is not a coincidence that this vernacular is taken up at a time when most Kenyans, surveyed across geographies, genders and classes, reported that their financial status worsened between 2016 and 2019.Interestingly, during this same three year period, we observe increasing (neoliberal) efforts directed towards “financial inclusion” habitually channelled through “fintech.”

Certainly, Kenyans are finding it hard to juggle all their economic burdens, from extended families to basic necessities, let alone finance the personal and collective aspirations for home ownership, better education, cars etc. All around, across all demographics, there is personal and collective work directed towards lightening these loads, made by piny pek – a heavy world. There are bets hedged, some won and many lost; collective savings groups, gambling, debts, and other situated modes to narrativize and negotiate economic pressures. Future blog posts will detail these means of coping in more ethnographic depth, showcasing the fervent efforts people of all walks of life in Nairobi, a capitalist city, are making to ease the pressure.

This article was first published in the Developing Economics.

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Lights in the Ocean: Seeing Potential in Kenya’s Blue Economy

A number of factors have conspired to hinder the growth of Kenya’s maritime industry. Chief among these factors are lack of sufficient support from the government, policy gaps, high shipping costs, and lack of specialised maritime training.

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Lights in the Ocean: Seeing Potential in Kenya’s Blue Economy
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In 2015, when the Kenya Maritime Authority (KMA), the industry regulator, took the National Maritime Conference to Nairobi for the first time, policy makers at the highest level became aware of what a sleeping giant the industry was. Underscoring how much the blue economy (BE) had become a priority for Kenya, the government hosted the first-ever global Sustainable Blue Economy conference in November 2018, with support from Japan and Canada. About 16,000 delegates drawn from all over the world participated.

Key political messages that came from Kenya included the need to mobilise financing for the industry; creation of a blue economy and people-centered strategies on sustainable development; streamlining gender equality in the industry; and strengthening science and research, among other measures to awaken the giant.

Participants made voluntary financial commitments amounting to $172.2 million in various aspects of the BE, as well as several non-monetary commitments in areas like partnerships and capacity-building.

On numerous occasions since 2015, President Uhuru Kenyatta has indicated that Kenya is prioritising the implementation of sustainable blue economy programmes since the sector has the potential to accelerate the country’s development. He has cited the shrinking of land-based resources as a result of a rapidly rising population in Kenya as a good enough reason for a prudent government to lay more focus on resources spread in the ocean with an area of 245,000 km², or 42 per cent of her total land area, which makes Kenya a maritime state.

However, various measures that the government has undertaken in recent years to accelerate the BE have not yielded the envisaged results. This is largely blamed on many years of policy neglect and a consistent failure by the industry’s players to take remedial actions.

Policy gaps

From the onset, Kenya has not been keen on the growth of the maritime sector. Even Kenya’s first independence economic blueprint, African Socialism and its Application to Planning in Kenya of 1965, failed to anchor BE in the country’s economic growth agenda, in spite of its significant role in transporting 95 per cent of the country’s global transactions.

The industry has thus evolved without the support of state policy-making machinery. Instead, it has largely relied on foreign players, who continue to exploit it to date and who repatriate billions from the economy.

Merchant Shipping Act 2009, which was assented to by Kenya’s President Mwai Kibaki after two lapses in Parliament due parliamentarians’ ignorance of its urgency, was the first attempt to regulate the sector. The new law was the brain child of KMA, which was established in 2004 to oversee the transfer of responsibilities in shipping matters from the Kenya Ports Authority (KPA) to an autonomous state corporation. This push came from the US government, which was afraid that having succeeded to hijack planes and carry out the September 11, 2001 terror attacks, terrorists could also do the same on largely unsecured African ports.

The industry has thus evolved without the support of state policy-making machinery. Instead, it has largely relied on foreign players, who continue to exploit it to date and who repatriate billions from the economy.

The 2009 Act created a comprehensive and modern legal regime for merchant shipping in Kenya and replaced the outdated Merchant Shipping Act, 1967. The old law did not reflect major transformations in the industry globally, which prevented the full exploitation of Kenya’s maritime industry.

The president’s good intentions on the industry are clear. However, there is a clear policy gap on who should steer the growth of BE. The president, in January 2017, appointed the Chief of Defence Forces, Samson Mwathethe, to chair a Blue Economy implementation Committee. The Kenya Gazette notice said that the eight-member team was mandated with co-coordinating and overseeing the implementation of the prioritised programmes in the industry and was to submit monthly reports.

Most importantly, it was supposed to develop an Integrated Maritime Transport Policy to galvanise and harmonise an industry that is currently overseen by 22 agencies with duplicating and conflicting roles. For over 3 years now, this has not yet been achieved and signs that the committee is working on it are nowhere to be seen.

The management of the BE is currently spread through three government departments without any clear mechanisms of collaboration despite the great interdependence among the players in the maritime industry.  Executive order no. 1 of May 2020 places KPA and the Kenya Ferry Services (KFS) under the transport department. The Department of Shipping and Maritime Affairs oversees KMA, Bandari College and Kenya National Shipping Line, while the state department for fisheries is in charge of the Kenya Marine and Fisheries Research Institute and the Kenya Fisheries Advisory Council.

Without a harmonised approach, the country has failed to exploit sea-based resources, which are worth a huge fortune. In 2018, the then Agriculture Cabinet Secretary, Mwangi Kiunjuri, said Kenya was losing over Sh440 billion annually by failing to fully exploit the blue economy.

Marine fishing’s lost potential

The Western Indian Ocean has resources worth more than Sh2.2 trillion annual output, with Kenya’s share being about 20 per cent of this. The marine fishing sub-sector alone had an annual fish potential of 350,000 metric tonnes in 2013 worth Sh90 billion. However, the region only yielded a paltry 9,134 metric tonnes worth Sh2.3 billion.

Optimal exploitation marine fishing is hindered by infrastructural limitations and inappropriate fishing craft and gear. Artisanal fishers mainly restrict their operations to the continental shelf because they are ill-equipped in terms of craft and equipment to fish in the deep sea.

The Kenyan coastline is rich in fish species. For instance, Malindi is the only place in the world that offers the best chance of catching five different billfish species in one day – broadbill swordfish, black, blue and striped marlin and sailfish.

In 2018, the then Agriculture Cabinet Secretary, Mwangi Kiunjuri, said Kenya was losing over Sh440 billion annually by failing to fully exploit the blue economy.

The deep sea waters are left to Distant Water Fishing Nations (DWFN) who mainly fish tuna species. Kenya lies within the rich tuna belt of the West Indian Ocean where 25 per cent of the world’s tuna is caught.

Foreign fishing fleets can operate in Kenya’s Exclusive Economic Zone (EEZ) in accordance with the regional and international agreement and cooperation provision of the National Oceans and Fisheries Policy, which allows governments to continue granting fishing rights in their EEZs, taking into account the state of the stock and economic returns.

In December 2017, President Kenyatta suspended the licences of foreign trawlers as part of efforts to grow the country’s blue economy through value addition. During the 54th commemoration of the country’s independence, he said that the ban on foreign vessels would help increase fish processed locally seven-fold to 18,000 tonnes per year. Kenya, the president announced, loses about 10 billion shillings ($97 million) a year to foreign boats fishing without permission.

Lack of specialised maritime training

Although Kenya requires fishing vessels to land 30 per cent of their catch in the country to create processing jobs, coastguards lack sufficient capacity to police the country’s territorial waters.

Andrew Mwangura, a maritime expert in Mombasa, argues that carving out coastguards from the military was a big mistake. Coastguards have more roles to play and need specialised training. With only one boat at their disposal and less than 40 officers, he opined, coastguards lack capacity to effectively deal with the issue of illegal fishing. Coastguards are supposed to offer maritime safety and security with on-board other officers from customs, fisheries, port health, immigration and police.

Kenya’s effort to venture into deep sea fishing is not only limited due to lack of physical infrastructure but the country’s ill-trained workforce as well. The International Convention on Standards of Training, Certification and Watchkeeping for Fishing Vessel Personnel, 1995 (STCW-F 1995), entered into force on 29 September 2012, sets certification and minimum training requirements for crews of seagoing fishing vessels of 24 metres in length and above.

For maritime training institutes worldwide, the International Maritime Organisation (IMO) has developed a series of model courses that provide suggested syllabi, course timetables and learning objectives to assist the instructors to develop training programmes to meet the STCW Convention standards for seafarers.

Out of more than 30 courses offered in maritime training, as recommended by IMO, Bandari (which has since last year been renamed Bandari Centre of Excellence) is only able to offer 6 of these courses.

In addition, Bandari lacks shipboard training opportunities due to the nascent development of seafarer training in Kenya, which has caused delays in completion of training courses, given that shipboard training is compulsory in order to be certified. An integral part of the programmes for Sea Training is to ensure that the students acquire practical knowledge through actual work experience. One has to learn by doing while at sea and in port.

Out of more than 30 courses offered in maritime training, as recommended by IMO, Bandari (which has since last year been renamed Bandari Centre of Excellence) is only able to offer 6 of these courses.

Lack of training of seafarers will also lock Kenyans from the off-shore gas and oil industry exploration taking place in our high seas.

To optimise the gains in the sector, there is a serious need to invest in human resources by rolling out training in higher education institutions and tertiary colleges.

Despite the growing demand to create enough workforce commensurate with the industry’s growth, the status of maritime training is not very encouraging. Only three colleges and two universities offer maritime courses in the country, with most of the other professionals having trained overseas at highly prohibitive costs.

By 2016, the Philippines had over 37 maritime academies, 20 maritime training centres and 17 crewing manning agencies, enabling it to supply 20 per cent of the world seafarers.

High shipping costs and lack of a competitive environment

In its endeavour to facilitate and promote global maritime trade, the Blue Economy Implementation Committee identified the revival of the Kenya National Shipping Line (KNSL) as a critical intervention, with a potential of contributing to the exchequer Sh304 billion annually.

To do this, KNSL partnered with the Mediterranean Shipping Company (MSC) of Italy, in what was described as a government-to-government arrangement that would see the government retain the majority shareholding (51 per cent) at KNSL to turn it into a major national carrier.  Merchant Shipping Act section 16 A was amended and assented to allow the deal. However, the Dock Workers Union (DWU) challenged this in a court of law and when the ruling was done in its favour, the government deal collapsed.

The government’s plan intended to support the revival of the KNSL, which has been dormant for the last 23 years. Mismanagement sent the entity, which was established in 1987, into debt and loss of business. The deal was supposed to allow the MSC to run the second container terminal (CT2) at the port of Mombasa and it would also hire 2,000 seafarers every year for the next five years in return.

The estimated transport charges paid out to shipping lines calling at Mombasa port is about Sh304 billion annually. There is also another list of destination charges applied in the country that have made the shipping business in Mombasa costly.

The government, in supporting the deal, estimated that its cargo costs an average of Sh14billion in freight per year, while local destination charges comprise another Sh34 billion. With local shipping capacity and the application of “Buy Kenya, Build Kenya” policies, the amount of Sh14 billion could be retained in Kenya, Transport CS Mr. James Macharia argued in support of the deal.

In the absence of a pricing framework or competitive environment, the destination tariff has proliferated in Mombasa port to 36 charge items. The revived KNSL could be used by the government to influence and leverage the reduction or doing away with components of destination charges thus reducing the national burden in maritime transport. Some of the charges include delivery order fee, amendment to bill of lading fee, supervision fee, manifest correction fee, currency exchange rate, container repair charges, and equipment management fee, among others.

In running the liner service, KNSL had the option of chartering or acquiring with time its own vessels. It was anticipated that income arising from transferring MSC trans-shipment cargo from Mombasa to other ports around Africa would yield sufficient funds to make consideration of vessel acquisition a reality in the long run.

The second container terminal is currently being operated by Maersk Shipping, the largest line calling at Mombasa, with control of over 30 per cent of the total cargo volumes at the port. When the terminal was finished over three years ago, it was supposed to be operated by a private player, who KPA was unable to pick from bidders due to a row that ended up in court.

Last year, Denmark, France, Japan and the UK protested that management of CT2 should have gone out to international tender since this was a condition for Japan to provide Sh28 billion for the first phase and Sh35 billion for the second phase construction.

Marine Cargo Insurance (MCI) also has huge potential. Its overall performance has significantly improved since the National Treasury directive to enforce Section 20 of the Insurance Act came into effect on 1 January 2017 that requires compulsory purchase of MCI from local underwriters. However, by importing cargo on Cost Insurance Freight (CIF) and the lack of proper coordination between various agencies has made the enforcing of this requirement a huge challenge.

Claims of undercutting have rocked the MCI insurance business as a record number of players entered the segment. The Insurance Regulatory Authority (IRA) had in the past raised concerns over unsustainable premiums.

Following the directive, the MCI performed considerably well compared to the years before 2017. The gross written premiums were Sh2.3 billion compared to Sh1.45 billion in 2016, representing an increase of 59 per cent. Based on the value of the imports, MCI premiums can generate up to Sh20 billion for local underwriters if the law is fully enforced.

Twenty-seven insurance companies have been brought on the online cargo clearing system run by the KenTrade, which is being integrated with the Kenya Revenue Authority’s Integrated Custom Management System (iCMS). This could help in enforcing section 20.

Cruise ship tourism: The next frontier

Cruise ship tourism is another area with huge potential as it targets high- end tourists. Industry experts say that 400 cruise tourists are equivalent to 4,000 tourists who come to the country via air. Kenya Ships Agents Association (KSAA) estimates that 40 cruise ships calling at the port could translate to US$20 million.

In 2004, at least 42 cruise ships arrived in Mombasa, with 15,166 passengers who took safaris to various destinations, especially to Maasai Mara and Tsavo national parks, earning the sector millions of shillings. But the number dropped as piracy took over in the Indian Ocean, with 2012 being the worst since not a single vessel called at Mombasa port.

Industry experts say that 400 cruise tourists are equivalent to 4,000 tourists who come to the country via air. Kenya Ships Agents Association (KSAA) estimates that 40 cruise ships calling at the port could translate to US$20 million.

A memorandum of understanding was signed early this year between Kenya and Vanilla Islands, a consortium of island nations including Seychelles, Madagascar, Mauritius, Comoros, Reunion, Mayotte and the Maldives.

Construction of the Mombasa cruise ship terminal at the port of Mombasa, which was supported by the Trademark East Africa. has been completed. The new terminal contains duty free shops, conference facilities, restaurants, offices, baggage conveyor belts, and migration and health offices. Further, the facility has a capacity to handle 2,000 cruise ship passengers at a time.

Stakeholders in the hospitality industry have been pushing to be represented at the KPA board so that they can help in understanding cruise tourism dynamics, such as developing cruise facilities at the other smaller ports, and in influencing the port to bid for as many cruise vessels as possible.

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