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‘I Don’t Understand Why Kenyans Are Broke’: Mr. Kenyatta’s Debt Distress Revisited

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Many Kenyans have been wondering why we are told that the economy is growing at a brisk 5 to 6 per cent year after year, yet they are not feeling it. Instead, big companies are issuing profit warnings and laying off people. Kenya’s public debt has increased threefold over the last six years, from Sh1.8 trillion to Sh6 trillion and although the data shows that the economy is growing, the tax base is not expanding and revenue is falling short as debt service charges are rising.

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‘I Don’t Understand Why Kenyans Are Broke:’ Mr. Kenyatta’s Debt Distress Revisited
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In 2018, following the Raila-Uhuru détente we call the handshake, I went against the grain and argued against the anti-corruption campaign that ensued. My reasons were simple enough; Uhuru and Ruto were jointly culpable for the administration’s corruption, hence my contention that the fight against corruption was being politically weaponised. I postulated that politicising the war on graft would blow back on the handshake (it has).

I voiced my concerns both publicly and privately. The response I got was that the anti-graft drive was strictly economic, and not political, motivated by the realisation that the government was hurtling towards a financial crunch. Different people on both sides of the handshake deal mentioned the figure of Sh300 billion, which they claimed was the amount that could be saved by stopping graft. I tried to explain the nature of the crisis that was unfolding but no one wanted to hear that fighting corruption was not the silver bullet. Heads were firmly in the sand.

The Sh300 billion figure cropped up again a few weeks ago, this time as the amount of tax payments that are in dispute. It was disclosed that the government is proposing legislation that will require the disputed figures to be paid up front. It does not take much imagination to see how such a law could be abused. A government as desperate for cash as this one can make inflated tax assessments—which tax one has to pay first and ask questions later—while also opening another avenue for tax officials to extort taxpayers. It can be used for political persecution or to cripple competitors and businesses targeted for acquisition by our rapacious crony capitalist cartels.

Why is the government clutching at straws? Let’s have a look at the finances. The government plans to spend Sh2.6 trillion in the current financial year (2019-2020). It plans to finance this spending through domestic revenue to the tune of Sh1.88 trillion (Sh1.81 trillion tax and Sh70 billion non-tax, respectively), Sh701 billion of debt, and external grants of Sh19.5 billion. Of the Sh701 billion of debt, it plans to borrow Sh434 billion domestically, and Sh267 billion from foreign lenders—comprising of Sh200 billion in commercial debt and the balance of Sh67 billion in soft loans from development lenders.

Let us put some perspective to these numbers. Over a quarter (27 per cent) of the budget is debt-financed and 90 per cent of this debt will be commercial—30 per cent from foreign lenders and 60 per cent from the domestic market (we often overlook the fact that domestic debt is commercial). The Jubilee administration has been doing this for six years running. When it took office, we had a single $600 million foreign commercial loan, which was paid off using the first Eurobond issue. Today, a third of our foreign debt amounting to $10 billion is commercial. The administration justified the $2.8 billion debut Eurobond issue, the largest African issue to date, on the promise that it would replace domestic borrowing, thereby leaving domestic credit to the private sector and reducing interest rates. It did not. Instead, the administration ratcheted up domestic borrowing as well and crowded out the private sector completely. It is also worth reminding ourselves that the proceeds of that Eurobond cannot be accounted for.

The Sh701 billion deficit translates to the government spending 37 per cent more than its income. This is like a Sh30,000 earner who has just acquired a credit card deciding that she can afford to live large by spending Sh40,000 a month. Now, let us assume that the credit card charges 15 per cent per year, and requires 5 per cent repayment of the outstanding principal every month. A year down the road, the monthly debt service will be in the order of Sh7,500, which is not too bad as she will still be spending Sh2,500 more than her salary after debt charges. But four months later the debt service charge will start eating into her salary and by the end of the second year, she will be paying Sh15,000 in debt charges a month and owing Sh. 240,000. If she were to run into a credit limit at that point, she would have to live on Sh. 15,000 a month— half her salary—and her lifestyle will definitely have to change drastically.

This scenario will be familiar to people who have abused credit cards. It is the situation we are in—six years of abuse of the national credit card. For the country, it is unprecedented; we are one of the few African countries that escaped the 1980s-90s debt crisis that was resolved by the Highly Indebted Countries Initiative (HIPC). But I gather that this is not the first time that the bloke at the helm has over-swiped.

Many Kenyans have been wondering why we are told that the economy is growing at a brisk 5 to 6 per cent year after year, yet they are not feeling it. Instead, big companies are issuing profit warnings and laying off people. A related question is why government revenue is falling short when the economy is supposedly booming. Under Jubilee, the tax revenue as a percentage of GDP has declined from 18 per cent to 15 per cent, the lowest level since the 90s. The three percentage points difference is, surprise, surprise, Sh300 billion.

Jubilee has increased our public debt threefold over the last six years, from Sh1.8 trillion to Sh6 trillion and counting. Unlike our consumer, however, the government will argue that its debt has been invested. But investments are risky, or long term. Moreover, you don’t borrow short-term to invest long-term as the government has been doing. If you do, the debt repayments eat into the working capital, and you will soon be defaulting on your suppliers, as the government is doing.

Under Jubilee, the tax revenue as a percentage of GDP has declined from 18 per cent to 15 per cent, the lowest level since the 90s. The three percentage points difference is, surprise, surprise, Sh300 billion.

Government borrowing is predicated on the expectation that the projects financed will stimulate productive investment that will in turn generate tax revenues to service the debt. But very little of this debt has yielded any economic benefits that would in turn generate tax revenues. The Standard Gauge Railway (SGR)—the largest of these projects—has not stimulated any new economic activity. Much to the contrary, all it has achieved to date is to disrupt port logistics and road haulage while increasing costs and inefficiency for importers. Right now, its net economic contribution is negative. All indications are that the Galana-Kulalu irrigation scheme is a white elephant, and we know for sure that the economic contribution of the Arror and Kimwarer dams is zero.

Moreover, the government shoots itself in the foot by awarding the construction projects to foreign— predominantly Chinese—state-owned firms. This undermines revenue in two ways. First, the companies are exempted from paying tax. Second, the money they make is repatriated, denying the economy the multiplier effect it would have if the money had been earned by domestic firms. I gather that Uhuru Kenyatta was banging tables the other day demanding to know why Kenyans are broke, how come the money spent on government projects is not circulating in the economy.

Let us take his flagship project, the SGR. The man went and swiped the national credit card and the Chinese delivered the goods. The money stayed in China, debited from our loan accounts in the Chinese banks and credited to the suppliers’ bank accounts. We are paying the loans from our pockets. This year, we’ve budgeted to pay the Chinese banks Sh94 billion, up from Sh39 billion last year. Far from circulating it in the economy, foreign debt-financed government projects are draining money from the economy.

Thus, although the data shows that the economy is growing, the tax base is not expanding and revenue is falling short as debt service charges are rising. While tax revenue has just about doubled under the Jubilee administration, from Sh900 billion in the 2012-2013 financial year to Sh1.49 trillion in the last financial year (2018-2019)—translating to 15 per cent per year—interest payments have increased three-fold from Sh93 billion to Sh390 billion, translating to 52 per cent per year. Consequently, from consuming 12 per cent of revenue, interest payments have risen to 26 per cent. It should not come as a surprise that the government is having trouble paying suppliers. It is also noteworthy that the increase in the cost of interest payments is in the order of—here we go again—Sh300 billion.

Last year the government projected that it would raise Sh1.77 trillion in tax revenues, later revised downwards to Sh1.67 trillion. It managed to raise 1.5 trillion, respectively Sh270 billion and Sh170 billion short of the approved and revised budgets. Still, it budgeted to raise Sh1.8 trillion in 2019. At the end of the first quarter of this year the government had raised Sh372 billion. If the trend remains, Sh1.49 trillion will have been raised—about the same as last year—a shortfall of, well, Sh300 billion.

If the government were to borrow the whole amount this would increase debt financing to a trillion shillings, that is, 38 per cent of the budget or 67 per cent of revenue (remember that revenue is projected at just about Sh1.5 trillion). If it were to borrow domestically, that would also suck in the little credit that is trickling to the private sector. Moreover, the interest rate caps imposed three years ago have now been removed. The caps were meant to benefit private borrowers but the only beneficiary was the government—enabling it to borrow while postponing the political price that would have been exacted had interest rates surged to the mid-20s—as they would have. But the economy has paid the price because, by making it difficult for banks to price risk, the rate caps made the government’s crowding out of the private sector in the credit market more severe than it would have otherwise been.

It should not come as a surprise that the government is having trouble paying suppliers. It is also noteworthy that the increase in the cost of interest payments is in the order of—here we go again—Sh300 billion.

With the caps removed, the government’s excessive appetite for debt will now put upward pressure on interest rates, including the government’s own cost of domestic borrowing. The math is eye-popping; the government’s domestic debt is in the order of Sh3 trillion. A one percentage point increase in the cost of borrowing translates to a Sh30 billion increase in interest expenditure. How quickly an interest rate rise is transmitted into actual cost depends on the structure of the debt—the more short-term, the faster. Jubilee has done a good job of borrowing at the short end of the market, and so transmission will be relatively quick. The exchange rate presents a similar conundrum. The annual servicing of external debt is in the order $2.5 billion, and a depreciation by one shilling translates to a Sh2.5 billion increase in the cost of servicing the debt. It should come as no surprise then that the IMF’s contention that the government is propping up the shilling raised a furore.

Belt tightening is the sensible thing to do when a person or a business is over-indebted. For governments it is a little more complicated. The government is the single largest entity in the economy, and what it does has feedback loops that can amplify the problems it is trying to solve. The problem we have now is that the economy has become addicted to expansionary budgets. Five years ago, government expenditure accounted for a fifth of annual GDP growth, meaning that when growth was reported at 5 per cent, it meant that the private sector accounted for 4 per cent and the government for 1 per cent. Today, the share of the private sector is down to 3 per cent and the government’s share has doubled to 2 per cent. In effect, belt tightening has to contend with the economy suffering withdrawal symptoms—a weakening economy feeding into an even bigger revenue shortfall, requiring even more belt tightening.

This whole conundrum is how countries end up in a Greek-style downward spiral of a contracting economy and ballooning indebtedness. The case of Mozambique is instructive. Before the “tuna bond” scandal unfolded, Mozambique’s economy was roaring at 7 per cent per year, riding on post-conflict reconstruction and the discovery of huge offshore natural gas reserves. The loan sharks moved in. In 2013 Mozambique borrowed $2 billion—equivalent to a third of the budget—in privately placed bonds known as “loan participation notes” to finance a tuna fishing fleet and maritime security, of which only $850 million was made public. It has recently emerged from a fraud and money laundering court case in New York that at least $200 million was stolen and shared out between the investment bankers and Mozambique’s who’s who, including the finance minister and the president’s son.

In early 2016, Mozambique defaulted on interest due on the $850 million. Shortly thereafter, the secret loans were exposed. Money dried up. By the end of the year, the currency had fallen 40 per cent, causing the debt-to-GDP ratio to increase from 55 per cent to 120 per cent. Everything unravelled. Serial defaults and debt restructuring became the order of the day. Growth tumbled to 3.3 per cent last year and is now down to just over 2 per cent. It is going to be a long and painful climb out of the mess.

Which brings me to the question that many people are asking: what is the solution? I have opined that our debt distress will be resolved by one of two scenarios: the Ethiopia or the Sudan scenario. This is why:

To dig ourselves out of the debt quagmire requires four things. First, you need a dollop of cheap money to cushion the economy and vulnerable groups as the government withdraws from domestic borrowing so as to release credit to the private sector, restructure government finances, and rebalance the economy more generally. My guesstimate is a minimum of $3 billion (yes, Sh300 billion!) to $4.5 billion. The only source of such money is an international bailout. Second, to get financiers to buy in, you need a bankable plan. Third, you need a credible turn-around team to implement it. It is not a job for yes-men and yes-women—you need people who can stare down Kenyatta and his crony capitalist cartels. Fourth, economic turnarounds entail making tough unpopular decisions and pushing through painful reforms, and that requires political goodwill. It is not the sort of thing you can do with the 2022 political warfare raging—as we witnessed it in the Kibra by-election.

At the end of the first quarter of this year the government had raised Sh372 billion. If the trend remains, Sh1.49 trillion will have been raised—about the same as last year—a shortfall of, well, Sh300 billion.

This is the situation that Ethiopia found itself in two years ago when the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF) coalition realised that only a leadership change could save it. Fortunately for Prime Minister Abiy Ahmed, there was a lot of low-hanging political fruit—releasing political prisoners, making peace with Eritrea, appointing women— that he could use to build goodwill, bring in some money and buy time. Still, that’s all he’s been able to do— he is still circling the big economic reform questions, and he now runs the risk of his political honeymoon ending before he gets started.

Sudan’s Omar al-Bashir sought to do the same thing but it was too little too late. Just over a year before he was toppled, amid mounting protests and a deepening economic crisis, he dissolved the government, intending to constitute an economic turn-around team. But the ship of state was already too leaky and his key appointees turned down his overtures (his choice of finance minister is now Prime Minister).

Can the Jubilee administration pull a political rabbit out of the hat like the EPDRF did in Ethiopia? Doubtful. For one, the EPRDF had the advantage of a parliamentary system which enables change of leadership without going through elections. But it is also the case that for a President at the tail end of his tenure, an economic reform programme would be all pain and no gain. Moreover, a lot of what needs to be done means reversing his policies, and he would have to cede a fair amount of power, making him even more of a lame duck than he already is. And having left it until the ship was leaking, there is also the question of who loves him enough to jump in when its owners—the Moses Kurias of this world —are jumping out. So his best strategy is the path of least resistance—kick the can and hope and pray that the bottom does not fall out this side of the election, be that by way of a financial meltdown or people taking to the streets.

Five years ago, I cautioned Jubilee that it had embarked on a reckless fiscal path, to wit, “We cannot afford to continue on the fiscal path that we are on. It is reckless. This mega-infrastructure madness has to stop. If we don’t do it ourselves, the iron laws of economics will do it for us—and that, take it from me, does not come cheap.”

We say in Gikuyu mūrega akīīrwo ndaregaga akīhetwo: a person who rejects counsel will listen when the consequences arrive. That moment is upon us.

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David Ndii is a leading Kenyan economist and public intellectual.

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Africa’s Democracy-Coup Dilemma

The African subject—not necessarily the political elite—is trapped in an endless and heated loop of meaningless negotiations over terms such as democracy, human rights, constitutionalism, and freedoms that are simply masks of (actually superior) economic and political interests of the Western world.

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Africa’s Democracy-Coup Dilemma
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There is a well-known, often whispered fact in Ugandan politics that when an official in government or a prominent businessperson is arrested or publicly humiliated in the national dailies for any crime (say corruption, land grabbing, or building in a wetland or other), the question the public asks is not whether there is evidence to the crime—for evidence abounds and that is a foregone conclusion—but who among the powers that be have they offended for their crime to be brought to life. The tested and proved assumption is that, with minor exceptions, every one of these individuals (the people in government and their associates), is a criminal awaiting prosecution. But their crimes come to life only when the powers that be deem it necessary to make them an issue. Thus, even for angelic individuals, the powers that be can easily come up with one crime to tie onto them, and with evidence easily generated—concocted or real—they’ll be maligned and prosecuted. In all plain speech, everyone is innocent and everyone is guilty as long as the powers that be decide it to be so.

Thinking about African governments in the so-called postcolonial time, this Ugandan experience is not lost on Africans when talking about governance, especially as regards the ways in which the international community reacts when changes in governments occur—often as electoral are juxtaposed against coups.  The basic premise is this: in whichever form these governments exist or come about—authoritarian, democratic, coup-driven, monarchic—they are good or bad, not dependent on their character, but dependent on the interests of Western superpowers. These interests then determine the ways in which transitions are narrativized and discoursed in international media, which in turn, carry a great deal of sway on discourses in local presses, and elite circles (at home and abroad).  Stated plainly, there are bad and good democracies just as there are good and bad coups. It all depends on the interests at stake. The African subject—not necessarily the political elite—is thus trapped in an endless, heated, and almost violent loop of meaningless negotiations over terms such as democracy, human rights, constitutionalism, and freedoms that are simply masks of (actually superior) economic and political interests of the Western world.

Europe in Africa: a coup history

Coups have always been good for the Western democratic world. Narrating the story of capitalist expansion across the postcolonial world, in his book, The Divide: A Brief Guide to Global Inequality and its Solutions, Jason Hickel captures the ways in which coups became normal in postcolonial Africa dislodging democratically elected governments—as long as the coup-leaders were favourable to western interests.  Hickel narrates that between the 1950 and 1970s, “across the global south, newly independent African states were ignoring US advice and pursuing their own development agendas, building their economies with protectionist and redistributionist policies” (21). Hickel continues that through this period, in the postcolonial states, “incomes were growing, poverty rates were falling, and the divide between rich and poor countries was falling for the first time in history,” (ibid).  But as would be expected, these protectionist policies starved the Western world of free raw materials and profits. They weren’t pleased at all and had to do something about it.

“The policies of the global south governments undermined the profits of Western corporations, their access to cheap labour and resources, and their geopolitical interests. In response, they intervened covertly and overthrew dozens of democratically elected leaders replacing them with dictators friendly to Western economic interests who were then propped up with aid.(22)”

The excerpt above captures the immediate postcolonial time going through the 1980s sometimes overlapping with proxy wars of the Cold War period. I provided a periodisation here. But while these coups might look like ancient history, coup-making and execution have been a core part of French control of West Africa to this day—and has made us suspicious that some of these new coups are part of the same scheme.  The thing called, Françafrique or “French sphere of influence” resulted in 122 military interventions in West Africa and all French-speaking Africa by the French Military between 1960 and 1998.  These included among other things, coups and assassinations of activists and high-profile individuals seeking complete liberation from continued French control. Without entering into the fine details of French military interventions in Africa, French coup plotting has enjoyed the support of the Western democratic world from the United States to Western Europe. In sum, it does not matter whether a government is democratically elected or has come in through a coup. All that matters is that it guarantees the continued flow of cheap raw materials from the African continent to the Euro-America.

The good coups of modern history

Egypt, 2012

An election in 2012 in Egypt ended in the victory of the Muslim Brotherhood candidate, Mohammad Morsi.  The Muslim Brotherhood coming to victory put the United States in a difficult position especially since Egypt borders Israel, and the American weren’t sure about how the Muslims Brotherhood foreign policy would be towards Israel.  Although President Morsi was a product of a democratic process—the much-celebrated adult universal suffrage—this was a bad democratic result in the eyes of the Western world.  Not too long, there would be protests in Egypt against the newly elected government. How was that so?

To understand these protests, one has to return to Iran in 1953, when protests against the popular Iranian Prime Minister Mohammad Mossadegh spread across Tehran.  As we learned years later, there was nothing organic about the anti-Mossadegh protest, but the United States and UK plotting from inside the American embassy in Tehran. After one year, President Morsi would be disposed of in a similar Mohammad-Mossadegh manner. On 3 July 2013, through a coup, covertly supported by Israeli and American intelligence, democratically elected President Mohammad Morsi was overthrown. One would think that the American government, headed by democrats—supposedly willing to die on the altar of democracy—Barack Hussein Obama, refused to call the military removal of President Morsi a coup.

Even when Senator John McCain visited Egypt and actually called the overthrow of President Morsi ‘a coup d’état,’ the Obama government refused to follow the urgings of this eminent American.  In response, quoted by CNN, Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff argued:  “If the United States formally calls the move a coup, it would have to cut off $1.3 billion in aid… would limit our ability to have the kind of relationship we think we need with the Egyptian armed forces.”

This response openly ignored any claims to the ideals of democracy, but rather focused on the American economic and security interests as is tradition.  On the tenth anniversary of the coup, a story published in Foreign Policy magazine on 3 July 2023, confirmed that “Obama gave the Egyptian military what amounted to a green light to overthrow the country’s first-ever democratically elected government.” It did not even matter that the new military government, in the midst of their takeover,  openly gunned down 51 people in cold blood in the capital, Cairo for simply chanting support for Muslim Brotherhood.  In a normal “democratic” world, this would have caused a major fallout over abuse of human rights. Instead, the US simply urged the new government to quickly return to a “democratic order,” like nothing outstandingly anti-human rights had happened.

Pakistan, 2022

Recently, it was confirmed that the United States, working through the Pakistan military pushed for the ouster of Pakistan’s prime minister, Imran Khan, because he had exhibited friendship with Russia at the beginning of Russian-Ukraine conflict. Imran Khan remains perhaps the most popular—and yes, democratically elected—prime minister in Pakistan after Benazir Bhutto. The US-instigated coup against Khan was to balance their political power-play, in which they sought to isolate Russia. It wasn’t about democracy or any human rights claims. In cutting-edge extensive reporting by The Intercept, a document nicknamed “Cypher,” which demonstrated how America directly threatened Pakistan—specifically, Prime Minister Khan—over its radically neutral position on the Russia-Ukraine conflict. It documents a subtle but clearly effective mode of coup-making: a vote of no confidence, just has happened with Prime Minister Mosaddegh in 1953 Iran.  Please note that to remove a sitting president through a “vote of no confidence” in a parliament, actually signals the presence of a strong “democratic culture” and constitutionalism in any polity. Consider then that the United States is actually exploiting Pakistani’s democratic maturity to undermine Pakistan’s stability.

The Intercept, citing from Cypher, reported a meeting between America’s Assistant Secretary of State for the Bureau of South and Central Asian Affairs Donald Lu, and Asad Majeed Khan, Pakistan’s ambassador to the U.S. Threats to the ambassador were delivered to Prime Minister Khan and members of the Pakistan military, who understood these threats really well, started working around the clock.  Donald Lu threatened: “People here and in Europe are quite concerned about why Pakistan is taking such an aggressively neutral position (on Ukraine), if such a position is even possible. It does not seem such a neutral stand to us.”  Then the Assistant Secretary went on and suggested that “if the no-confidence vote against the Prime Minister succeeds, all will be forgiven in Washington because the Russia visit is being looked at as a decision by the Prime Minister.” Secretary Lu threatened further, “I think it will be tough going ahead,” going on to say Pakistan risked isolation from Europe if Prime Minister Khan remained in office.

This meeting between Lu and Pakistan Ambassador Asad Majeed Khan took place on 7 March 2022. The following day, March 8, Khan’s opponents moved with a procedural issue towards a no-confidence vote in the Prime Minister. Because he occupied the office of prime minister, Khan received the threat and offered to make them public.  While he claimed US involvement in the no-confidence vote, the Pakistan courts—in on the coup—could not allow him to make the documents known to the Pakistan people (again, a bold statement about Pakistan’s matured democracy).  Three months down the road, on 2 October 2022, Prime Minister Khan was removed from office through a no-confident vote.

While it is leading opposition figure Shehbaz Sharif who became prime Minister after Khan, the Pakistan Military remains the most powerful entity in the entire pushing and shoving. The Intercept reported that “Shaken by the public display of support for Khan — expressed in a series of mass protests and riots” in the period that followed his ouster, “the military sought to strengthen itself. It “enshrined authoritarian powers for itself that drastically reduce civil liberties, criminalize criticism of the military, expand the institution’s already expansive role in the country’s economy, and give military leaders a permanent veto over political and civil affairs.” You would think these developments would cause the democratic world to issue pronouncements as regards civil liberties and human rights. But alas, neither of this has happened. In a word, the coup against Prime Minister Khan, and the resultant abuses of human rights and freedoms were good for the Western “democratic” world, because, not only did they support it, but all these abuses served to protect their interests, which are above any democratic idealism.

An enduring intellectual-political dilemma

The simple premise that governments are good or bad dependent on the interests of Western superpowers remains difficult to see as it is deftly disguised in plenty of enchanting prose: whenever coups happen—as they have excited the continent in recent times, especially in West Africa—they are derided as bad, should not be celebrated as they are a poisoned chalice; ought to be prevented, and calls are made for an immediate return to a democratic order.  I cannot shake off the feeling that these coups have been derided this much because they don’t really represent the interests of the Western world. There are no grey areas but a simple formular: coups are bad, democracies are good—and whatever it takes, we ought to work hard to “perfect” our democracies.

These ahistorical, simplistic, colonial positions are sustained because of four main reasons: (a) Countries and continents have come to be seen as independently contained units and so are the world’s continents. That while local African actors have business and other dealings with the rest of the world, they have incredible levels of agency and need to choose democracy over its problematic opposite: coup leadership. That events in their countries are often entirely products of local ingredients. Consider also that (b) the new technologies and practices of colonialist extraction and control—most of which the coloniser has so deftly depoliticised and extravagantly technocratized appear benign and malevolent. Items such as aid, free trade, banking regimes, WB and IMF recommendations, conservation initiatives, etcetera, all are part of the goodness of the Western world, and need to continue to thrive under a democratic order.  The African elite has been conscripted to this depoliticised, disguised colonialism. How do you persuade a corporate individual who earns well from an international conservation body or an NGO worker, or a grant recipient academic that they are involved in a colonial franchise? The other reason (c) is that we are all products of the colonial school, and our education determines the reach of our imagination and dreams, and our vocabulary and eloquence.  This has been complemented by (d) the colonizers mastery of popular cultural tools, especially through cinema and the Internet, which crucially control public opinion, and determine what becomes understood as fact or fake news. Even with so many more recent crimes and deceptions of the Western world (not the least Iraq and Afghanistan, Libya, and earlier ones as Chomsky and Herman demonstrate with what they called “the propaganda model”, a great deal of African political and academic elite still considers the western world, especially the so-called democratic western Europe and the United States as benevolent, generous and truth-talking entities.

It has therefore become difficult to see the reality that democratic regimes, principally, guarantee endless Western exploitation of the continent, the same way an anarchic, or coup-generated regime has been narrativized.  Neither government guarantees absolute goodness for the African subject. However, democracies, inexplicably, retain intellectual and media goodwill.  In sum, it has become difficult to appreciate the colonial-laden dilemma Africa is presented with when responding to coups on the one hand, and welcoming extractivist democracies on the other—as we endlessly fail to appreciate the fluidity, and ‘possibility of reset,’ and the radical questions that coups enable us to ask—in these moments of restlessness—in the search for the soul of Africa’s independence, and reclaiming the exploitation and use of our resources for our own benefit.

This article was first published by the The Pan African Review.

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Wave of Coups in Françafrique: Is Africa’s Oldest Autocracy Next?

With widespread insecurity, escalating public discontent, an absence of the rule of law, pervasive poverty, and frail state institutions, Togo is ripe for a coup.

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Wave of Coups in Françafrique: Is Africa’s Oldest Autocracy Next?
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In the wake of a series of coups that have jolted Africa, speculation about which nation will follow is rife. The pioneer of coups in Africa, Togo frequently emerges as a prime candidate in these conjectures. The country’s 1963 coup was the first on the continent under the leadership of Gnassingbé Eyadéma. In 1967, Eyadéma orchestrated another coup and held on to power for the next 38 years. Following his demise in 2005, Eyadéma was succeeded by his son Faure Gnassingbé, who orchestrated his own coup before subsequently holding contested elections that resulted in at least 400 deaths, according to a UN report.

Togo’s vulnerability to military coups stems from its colonial past and its long history of autocratic rule. The country also faces the same socio-political turmoil that has precipitated regime change in other African nations. One of Africa’s poorest countries, with a struggling economy, Togo is also grappling with escalating terrorism, especially in the northern region bordering coup-prone Burkina Faso.

The current semblance of stability in Togo can be attributed to its robust militarisation. While a number of African nations have transitioned peacefully to democratic governance, Togo’s regime has craftily manipulated global perception by positioning Gnassingbé Eyadéma’s non-military son, Faure, at the helm, ensuring the perpetuation of his father’s authoritarian legacy. Faure Gnassingbé’s journey to the presidency defies the archetypal dictator narrative. Educated in military schools during his formative years, he pursued higher studies in economics at the University of Paris Dauphine and an MBA from George Washington University in the US. His ascent in Togo’s political landscape has been swift, becoming Minister of Communication in 1998 under his father’s rule, then parliamentarian, Minister of Public Works, and ultimately president.

Togo has suffered decades of oppression in the iron grip of the Eyadéma dynasty. Gnassingbé Eyadéma is particularly infamous, remembered as one of the continent’s most brutal dictators. Mysteriously disappearing opponents and egregious human rights abuses led to a ten-year suspension of European Union aid between 1993 and 2003. Nevertheless, Eyadéma sustained a puzzlingly close relationship with France, the nation’s former colonial overseer that had acquired two thirds of Togo after World War I.

Recent coups in Africa have predominantly taken place in ex-French colonies. While some observers point to Russian influence, many locals accuse France of endorsing their nations’ most tyrannical leaders. Once a foot soldier in the French colonial army, Eyadéma was instrumental in the 1963 assassination of Togo’s first president, Sylvanus Olympio. Ostensibly a result of military integration disputes, the coup was deeply rooted in Olympio’s efforts to distance Togo from lingering colonial ties, including an audacious move to replace the CFA franc, a French-instituted currency, with the Togolese Franc. The unanimous passing of a bill establishing the creation of the Togolese national currency on 12 December 1962 may have precipitated his assassination just a month later.

Following Olympio’s killing, Nicolas Grunitzky assumed power despite his questionable loyalties and overt pro-French inclinations. His reign was short-lived, however. On 14 January 1967, amidst escalating public unrest and calls for new elections, the same military operatives that had ousted Olympio intervened once again. Gnassingbé Eyadéma’s meteoric rise within this framework was evident when he transitioned from a sergeant to a colonel in three years. While Klébert Dadjo was the initial choice as leader post-coup Eyadéma soon took charge, becoming president in April 1967.

During his time in office, Eyadema maintained excellent relations with France under whose contentious neocolonial strategy, Françafrique, French companies flourished, and French politicians reportedly amassed fortunes through murky deals with African dictators that included financial kickbacks, generous campaign funds, and strategic support to secure France’s position in global politics. French manipulation and exploitation in nations like Togo, Gabon, Chad, the Central African Republic, Cameroon and Côte d’Ivoire have enriched their ruling families while the majority continue to languish in poverty.

The people of Togo have shown an indomitable spirit in the face of dictatorship and repression and the 1990s saw the historic, student-led Movement du 5 Octobre (M05) culminate in a national sovereign conference and the establishment of a short-lived transitional government from 1991 to 1993. A series of massacres committed in April 1991 continue to haunt the people of Togo today.

The 1991 National Sovereign Conference was a beacon of hope for Togo’s future. With Eyadéma’s authoritarian rule showing signs of weakening, a new constitution was passed that conferred more powers on the prime minister while reducing those of the president, introduced presidential term limits and multipartism. But the political atmosphere took a severe turn in 1992 when soldiers, including one of Eyadema’s brothers, attacked the transitional Prime Minister Joseph Kokou Koffigoh’s office, killing at least a dozen people and igniting months of civil unrest as civil servants and students went on a nine-month-long strike demanding democracy and an end to military rule. The repression was so severe that thousands of Togolese people fled the country, creating the first wave of refugees from the West African nation. Despite the challenge to his rule, Eyadéma removed the presidential term limit in 2002 but maintained his dominance, securing another term in 2003.

Following Eyadéma’s death in 2005, the Eyadéma dynasty’s stranglehold on Togo has continued under Faure Gnassingbé’s rule. Living standards remain poor, and human rights abuses mirror those committed under his father’s reign. Within Togo, the Gnassingbé family seems to view political power as their birthright; Faure Gnassingbé revealed in an interview with Jeune Afrique that his father had advised him never to relinquish power. The Togolese took this revelation to heart, particularly when he sought a third term in 2015. A massive wave of protests broke out in 2017, demanding the reinstatement of term limits, a move that was met with brutal repression. The widespread protests led ECOWAS to intervene, resulting in a superficial constitutional amendment in 2019. Term limits were reinstated but with conditions that ensured that the terms that Faure Gnassingbe had already served remained unaffected. He then successfully retained power in the 2020 elections, consistent with the Gnassingbé dynasty’s undefeated electoral history.

The repression was so severe that thousands of Togolese people fled the country, creating the first wave of refugees from the West African nation.

The Gnassingbés do not just run elections; they are the elections. The Togolese were engulfed in despair when Faure Gnassingbé secured his 4th term, realising that by the next elections in 2025, the Gnassingbé family would have ruled for 59 years; a staggering 97 per cent of the country’s citizens have lived under the shadow of a single ruling dynasty – only 3 per cent of the population are over the age of 50.

The discontent isn’t confined to the masses; there is a distinct sense of unease within the corridors of power. Several Togolese military and political figures have been ousted over the past year, including Felix Kadanga, the president’s brother-in-law and former head of the Togolese Armed Forces, known for his brutal treatment of dissidents. Appointed just a year earlier, the widow of the president’s elder brother, Ernest Gnassingbé, was also relieved of her position as Defense Minister. These changes, combined with the arrests and house arrests of other military personnel, underscore the turmoil.

The Togolese people’s longing for democracy is poignant. Their quest has stretched across four generations and six decades. Exhausted by the relentless military rule, many harbour a hope inspired by successful coups in other nations. They yearn for an end to the oppressive rule of the Eyadéma dynasty, even if this means enduring continued military governance. A cocktail of factors usually precipitate coups: widespread insecurity, escalating public discontent, an absence of the rule of law, pervasive poverty, and frail state institutions. In Togo’s case, each box is emphatically ticked.

In many parts of Africa, including Togo, the perception of coups is multidimensional. While globally they are seen as a threat to democracy, coups might represent a glimmer of hope for the masses living under enduring dictatorships. In Togo, where democratic ideals like free elections and freedom of speech have been stifled, coups are sometimes seen as potential catalysts for democratic change. The desire for this perspective arises from decades of enduring media censorship, a silenced opposition, and rigged elections. The masses see coups as a possible means of uprooting deeply entrenched autocratic regimes. The fundamental question for Togo and for the other former French colonies is whether such radical shifts can indeed pave the way for true democracy.

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Are These the Dying Days of La Françafrique?

The widespread anti-France sentiment among the populations of Francophone Africa is the result of nearly 200 years of French meddling in the political and economic affairs of these countries.

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Are These the Dying Days of La Françafrique?
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France ruined Haiti, the first Black country to become independent in 1804. France is on course to ruin all its former African colonies. It is no coincidence that the recent spate of coups in Africa has manifested in former French colonies (so-called Francophone Africa), once again redirecting the global spotlight on France’s activities in the region. And that the commentaries, especially amongst Africans, have been most critical of France and its continued interference in the region.

This is coming against the backdrop of France’s continued meddling in the economic and political affairs of “independent” Francophone countries, an involvement which has seen it embroiled, both directly and indirectly, in a series of unrests, corruption controversies and assassinations that have bedevilled the region since independence. Unlike Britain and other European countries with colonial possessions in Africa, France never left – at least not in the sense of the traditional distance observed since independence by the other erstwhile colonial overlords. Instead, it has, under the cover of a policy of coopération (cooperation) within the framework of an extended “French Community”, continued to maintain a perceptible cultural, economic, political and military presence in Africa.

On the surface, the promise of coopération between France and its former colonies in Africa – which presupposes a relationship of mutual benefit between politically independent nations – where the former would, through the provision of technical and military assistance, lead the development/advancement of its erstwhile colonial “family”, is both commendable and perhaps even worthy of emulation. However, when this carefully scripted façade is juxtaposed with the reality that has unfolded over the decades, what is revealed is an extensive conspiracy involving individuals at the highest levels of the French government. Along with other influential business interests – also domiciled in France – they have worked with a select African elite to orchestrate the most extensive and heinous crimes against the people of today’s Francophone Africa. A people who, even today, continues to strain under the weight of France’s insatiable greed.

The greed and covetousness that drove the European nations to abandon trade for colonialisation in Africa is as alive today as it was in the 1950s and 1980s. The decision to give in to African demands for independence was not the outcome of any benevolence or civilised reason on the part of Europe but for economic and political expedience. Thus, when the then president of France, Charles de Gaulle – who nurtured an ambition to see France maintain its status as a world power – agreed to independence for its African colonies, it was only a pre-emptive measure to check the further loss of French influence on the continent. In other words, the political liberation offered “on a platter of gold” as a means to avoid the development of other costly wars of independence which, a France depleted by World War II was already fighting in Indochina and Algeria.

The greed and covetousness that drove the European nations to abandon trade for colonialisation in Africa is as alive today as it was in the 1950s and 1980s.

Independence was, thus, only the first step in ensuring the survival of French interests in Africa and, more importantly, its prioritisation. Pursuant to this objective, de Gaulle also proposed a “French Community” – delivered on the same “golden platter” – as a caveat to continued French patronage. As such, the over 98 per cent of its colonies that agreed to be part of this community were roped into signing coopération accords – covering economic, political, military and cultural sectors – by Jacques Foccart, a former intelligence member of the French Resistance during the Second World War who had been handpicked by de Gaulle. This signing of coopération accords between France and the colonies, which opted to be part of its post-independence French Community, marked the beginning of France’s neo-colonial regime in Africa, where Africans got teachers and despotic leaders in exchange for their natural resources and French military installations.

Commonly referred to as Françafrique—a pejorative derivation from Félix Houphouet Boigny’s “France-Afrique” describing the close ties between France and Africa – France’s neocolonial footprint in Africa has been characterised by allegations of corruption and other covert activities perpetrated through various Franco-African economic, political and military networks. An essential feature of Françafrique is the mafia-like relations between French leaders and their African counterparts, reinforced by a dense web of personal networks. On the French side, African ties, which had been French presidents’ domaine réservé (sole responsibility) since 1958, were managed by an “African cell” founded and run by Jacques Foccart. Comprising French presidents, powerful and influential members of the French business community and the French secret service, this cell operated outside the purview of the French parliament, its civil society organisations, and non-governmental organisations. This created a window for corruption, as politicians and state officials took part in business arrangements that amounted to state racketeering.

Whereas pro-French sentiments in Africa, and without, still argue for France’s continued presence and contributions, particularly in the area of military intervention and economic aid, which they say have been critical to security, political stability and economic survival in the region, such arguments intentionally play down the historical consequences of French interests in the region.

Enjoying free rein in the region – backed mainly by the United States and Britain since the Cold War – France used the opportunity to strengthen its hold on its former colonies. This translated into the development of a franc zone – a restrictive monetary policy tying the economies of Francophone countries to France – as well as the adoption of an active interventionist approach, which has produced over 120 military interventions across fourteen dependent states between 1960 and the 1990s. These interventions, which were either to rescue stranded French citizens, put down rebellions, prevent coups, restore order, or uphold French-favoured regimes, have rarely been about improving the fortunes of the general population of Francophone Africa. French interventions have maintained undemocratic regimes in Cameroun, Senegal, Chad, Gabon, and Niger. At the same time, its joint military action in Libya was responsible for unleashing the Islamic terrorism that threatens to engulf countries like Mali, Burkina Faso, Niger and Nigeria.

In pursuit of its interests in Africa, France has made little secret of its contempt for all independent and populist reasons while upholding puppet regimes. In Guinea in 1958, de Gaulle embarked on a ruthless agenda to undermine the government of Ahmed Sékou Touré – destroying infrastructure and flooding the economy with fake currency – for voting to stay out of the French Community. This behaviour was again replicated in Togo, where that country’s first president, Sylvio Olympio, was overthrown and gruesomely murdered for daring to establish a central bank for the country outside the Franc CFA Zone. Subsequently, his killer, Gnassingbé Eyadema, assumed office and ruled from 1967 until his death in 2005 – after which he was succeeded by his son, who still rules.

In Gabon, you had the Bongo family, who ran a regime of corruption and oppression with the open support of France throughout 56 years of unproductive rule. As for Cameroun, its most promising, Pan-Africanist pro-independence leader, Félix Moumié, died under mysterious circumstances in Switzerland, paving the way for the likes of Paul Biya, who has been president since 1982. France also backs a Senegalese government that today holds over 1,500 political prisoners, and singlehandedly installed Alhassan Ouattara as president of Cote d’Ivoire.

French interventions have maintained undemocratic regimes in Cameroun, Senegal, Chad, Gabon, and Niger.

Therefore, the widespread anti-France sentiment among the populations of Francophone Africa and beyond is not unfounded, as it has become apparent to all and sundry that these countries have not fared well under the shadow of France. In Niger, where France carried out one of the bloodiest campaigns of colonial pacification in Africa – murdering and pillaging entire villages – and which is France’s most important source of uranium, the income per capita was 59 per cent lower in 2022 than it was in 1965. In Cote d’Ivoire, the largest producer of cocoa in the world, the income per capita was 25 per cent lower in 2022 than in 1975.

Outside the rampant unemployment, systematic disenfranchisement and infrastructural deficits that characterise these Francophone countries, there is also the frustration and anger of sitting back and watching helplessly while the wealth of your country is carted away to nations whose people feed fat on your birthright and then turn around to make judgements and other disparaging comments on your humanity and condition of existence. The people are tired of being poor, helpless and judged as third-world citizens! France is a dangerous country.

It is indeed overdue for France to cut its losses – whatever it envisages them to be – and step back from its permanent colonies to allow the people of Francophone Africa to decide on their preferred path to the future. After nearly 200 years of pillage, the people have good reasons to demand that France should leave. The restlessness and the coups that have become commonplace in the region are symptoms of deeper underlying social, economic and political problems, including weak institutions, systematic disenfranchisement, poverty, corruption and the misappropriation of national wealth. And as we call on France to do the honourable thing and withdraw, we should also rebuke Africa’s leaders who have not only put their interests above those of their people but have also turned the instruments of regional intervention and development (like the AU and ECOWAS) into tools for ensuring their political survival.

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