Botswana – Masire Obituary

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The erstwhile premier is credited with bringing stability to the southern African nation. 

President of Botswana between 1980-1998, Katumile Masire was a cattle herder turned politician who led the country through turbulent economic, social and political times. He was heralded by many as a model leader on the continent.

In 1966 when Botswana – then Bechuanaland – became independent from the UK, it had just two miles of paved roads and a single public secondary school. Diamond discoveries changed this and Masire and his predecessor Seretse Khama used revenues to fund education, healthcare and infrastructure.

In 1989, he shared the Africa Prize for Leadership, awarded by the Hunger Project in recognition of the food distribution efforts that helped the country avoid starvation and famine.

Masire also managed to negotiate a delicate relationship with neighbouring South Africa, a major economic partner but the Botswanan government was opposed to apartheid policies. “He had to walk a line in a really rough neighbourhood,” said Chester Crocker, a former US Assistant Secretary of State for African affairs.

Botswana is in many respects remarkable when compared to other African nations, with a relatively robust democracy and limited, noticeable corruption. This has meant the tourism industry has bloomed, particularly wildlife tourism.

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Masire – Premium Times. 

Masire was born in Kanye in southern Botswana near the South African border in 1925. He was a herder before enrolling in a primary school at 13. After his parents died when he was in his early twenties, he became e a teacher to support his siblings.

He also worked as a journalist, served on tribal and regional councils, and was a founder and secretary-general of the Botswana Democratic Party (BDP), now the dominant political party in the country.

After leaving office, he advised other African leaders and chaired the International Panel of Eminent Personalities that investigated the Rwandan genocide of 1994. He made important contributions to peace efforts in DR Congo and helped to end Mozambique’s civil war.

Masire stepped down in 1998 after overseeing a lengthy period of economic growth, largely oriented around effective management of diamond wealth. In retirement, Masire established the Sir Ketumile Masire Foundation, which aims to improve agriculture, governance and children’s health across the region.

He died on June 22nd 2017 aged 91.

(the Independent 27/6; BBC News 23/7)

Find out more in the Africa Research Bulletin:

BOTSWANA: Spat Over Vice President
Political, Social & Cultural Series
Vol. 51, Issue. 11, Pp. 20344A–20344C

BOTSWANA: Khama Wins
Political, Social & Cultural Series
Vol. 51, Issue. 10, Pp. 20308C–20309B

Botswana: Inquiry into Opposition Leader’s Death
Political, Social & Cultural Series
Vol. 51, Issue. 8, Pp. 20242B

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Africa – ‘Panama Papers’

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As global reverberations are felt following unprecedented leaks, some of the most pressing concerns are in Africa.

A number of high profile African leaders and businessmen have been named in the recent ‘Panama Papers‘ leak involving the Panama-based firm Mossack Fonseca, detailing the global scale of tax avoidance and evasion; top officials from at least 15 African countries have been named.

The leaks have added to the calls, made in an African Union (AU) and UN Economic Commission for Africa report in 2015 that African money kept in foreign banks should be repatriated to the continent. At a conference in 2015, former South African President Thabo Mbeki said that Africa was loosing US$50 billion through illicit cash flows, more than double the Official Development Assistance (ODA) the continent receives, although a report by the Organisation for Economic Cooperation and Development (OECD) put the amount higher at $150bn, reported Deutschewelle.

The information released in the leaks strongly correlates with findings of the report and confirms the existence of a network of offshore accounts and investment vehicles, driving tax avoidance and evasion. According to a report by the UN Economic Commission for Africa, it is an undeniable fact that these illicit financial flows deserve our full attention continentally and globally.

“There are illicit funds from Africa in European banks. We started discussions with the European Union (EU) some years ago to bring back these funds. We find it morally and economically good for the banks to send the funds back,” said the African Union Commission (AUC) chairperson, Nkosazana Dlamini Zuma.

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BBC

In July 2015, at the UN Financing for Development conference in Addis Ababa, Ethiopia, African nations led the G77 bloc of developing countries who offered to forego international aid if western countries closed tax loopholes and shut down tax havens, reported the Daily Maverick.

The leaks are not entirely new revelations as many in Africa have been pushing for the global tax system to be overhauled, pointing to the billions that is lost from the continent each year. However it is the scale of the networks of financial secrecy, essentially set up to be unaccountable, that is becoming clear, and the intricate and murky connections between world leaders and businessmen.

Journalists have yet to make their way through but a tiny fraction of the 11-million documents and the high profile and politically connected nature of the African individuals implicated, seems to indicate that more are yet to come.

The leak was obtained from Mossack Fonesca by German newspaper Süddeutsche Zeitung who worked in collaboration with the International Consortium of Investigative Journalists (ICIJ) and around 106 worldwide news organisations. Mossack Fonseca is a leading creator of shell companies, corporate entities that are used to hide asset ownership. The leaked internal files contain information on 214,488 offshore entities connected to people in more than 200 countries and territories.

A full breakdown of findings from the ICIJ are available here.

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African Public Officials Implicated – ICIJ

Country Level Findings

Botswana

The President of the Court of Appeals, Justice Ian Kirby, has been named in the leaked files, being said to hold shares in up to five offshore companies mainly in the UK, although he has insisted that all of these are legal. Much of Botswana’s wealth comes from diamond mining, and has been noted to have checks and balances in place to avoid illicit flows of wealth. However, commentators said that it was a worrying sign that many wealthy people in Botswana were considering to invest offshore, reported Deutschewelle.

DR Congo

A leading financial institution with close connections to the gold mining industry, Rawbank, has been implicated in the leaks, which show that the Rawji family, the shareholders of the bank, make extensive use of tax havens and shell companies, maintaining a web of offshore structures such as Khazana Holdings and Hurricane Investments in the British Virgin Islands, Pix Business and Trading Mamu Investments in Panama, and many more. Each of the entities are connected to many other shell companies, which lead to a complex and illusory network of financial connections. There have been concerns that with Dubai’s rise as a gold buyer, a destination for around 70% of DR Congo’s gold, coupled with its financial secrecy, illicit financial flows are growing, reported the Daily Vox.

Jaynet Desiree Kabila Kyungu – twin sister of President Joseph Kabila – considered one of the most influential people in the country, owns a media company together with a Congolese businessman, who were both co-heads of an offshore company in the South Pacific, said to have shares in mobile telecoms operators in DR Congo, reported Deutschewelle.

Egypt

The son of the overthrown President of Egypt Hosni Mubarak was named; Pan World Investments INC, owned by his son Alaa Mubarak, was managed by Credit Suisse in the British Virgin Islands. After the toppling of Mubarak authorities asked Mossack Fonseca to freeze Pan World’s assets, although it is claimed that this was never fully implemented, reported Aswat Masriya.

Ghana

Ghana’s former President John Agyekum Kufour ‘s eldest son, John Addo Kufour, allegedly controlled a bank account in Panama worth US$75,000. They appointed Mossack Fonseca, to manage the fund, reported Deutschewelle.

Guinea

Mamadie Toure, widow of Guinea’s late president, Lansana Conte, was allegedly granted the power of attorney to Matinda Partners and Co Ltd, a British Virgin Islands company, in November 2006. Authorities in the US claimed that Toure received $5.3 million to help a mining company win a mining concession from President Conte just before he died in 2008, reported Deutschewelle.

Kenya

The company which recently bought a controlling stake in the Raila Odinga’s molasses plant in Kisumu – Energem Resources Inc – has been linked to many dubious diamond mining companies in West and Southern Africa and tax havens in the British Virgin Islands.

Kalpana Rawal, Kenya’s Deputy Chief Justice was implicated in several business deals linked to two companies based in British Virgin Islands. The documents revealed Rawal’s involvement in real estate in the UK through offshore companies. Kenya’s constitution bars public servants from owning a bank account outside the country, reported Deutschewelle.

Separately, a Danish national, who has previously been accused of land grabbing in Kajiado Country, has been accused of running Avon Developments Limited, registered in the British Virgin Islands, reported the Daily Nation.

Namibia

The leaks have revealed details about the Sicilian Mafia’s business network between Italians and Namibian businessman Zacky Nujoma, the youngest son of founding President Sam Nujoma. According to reports even though much of the criminal syndicate is imprisoned, the empire – with connections to Namibia, Italy and South Africa – has used financial secrecy companies in the British Virgin Islands, reported the Namibian.

Nigeria

Former Delta State governor, James Ibori, who has already been implicated for embezzling up to $75m in London property, has been named in the leak, leading to concerns that the true amount involved could be much higher.

Senate Bukola Saraki, said to be the third most powerful person in the country, has been named as failing to declare offshore assets in his wife’s name.

Africa’s richest man, Aliko Dangote and his half-brother Sayyu Dantata, have also been linked to Mossack Fonseca’s shell companies. The two are said to have repeatedly bought and sold shares in 13 companies, mainly in the Seychelles, reported Deutschewelle.

Theophilus Danjuma, a retired army general and former defence minister, is one of Nigeria’s richest people, due to ownership of one of Nigeria’s most lucrative oil blocs. The leaks exposed another of his companies – Eastcoast Investments Inc – which he incorporated in Nassau, in the Bahamas, reported the Premium Times.

South Africa

President Jacob Zuma’s nephew Clive Khulubuse has been mentioned in the leaks, as being authorised to represent the offshore company Caprikat Limited, which purchased oil blocks in the DR Congo. According to reports the leak showed that he did not directly benefit from the deal which “deepens the mystery as to what he was doing there. The question arises why would they use him and what benefits would he have gained from that?” Sam Sole, from the investigative team at South African newspaper the Mail & Guardian said.

Zimbabwe

The opposition People’s Democratic Party (PDP) has called for an investigation after the Panama Papers brought to light links between two wealthy Zimbabwean business men, and the Zimbabwean regime. Billy Rautenbach and John Bredenkamp were named as engaging in widespread tax avoidance and externalising huge sums of money outside the country. PDP spokesman Jacob Mafume said “Bredenkamp is an arms dealer and mining tycoon while Rautenbach is the owner of GreenFuels and is involved in diamond mining”, both well known funders of the ZANU-PF ruling regime.

“As a result of the controversial links between Rautenbach and Zanu PF, major shareholders in fuel retail companies such as Sakunda and Redan have been elbowed out of business as the Zanu PF cartel has moved in to create a total monopoly in the fuel sector and thus keep consumers hostage to high fuel prices…What concerns us at the PDP is that the Panama Papers are being released when Mugabe in February said over $15 billion of proceeds from diamond mining remained unaccounted for,” Mafume added, reported New Zimbabwe.

Find out more in the Africa Research Bulletin

KENYA: Graft-Tainted Ministers Sacked (Free to Access)
Economic, Financial & Technical Series
Vol.52, Issue.11, Pp.21059B–21060B

Transparency International: “Endemic Corruption” Plagues Most of Africa
Economic, Financial & Technical Series
Vol.51, Issue.11, Pp.20627B–20627C

TANZANIA: Illicit Outflows Report
Economic, Financial & Technical Series
Vol.51, Issue.5, Pp.20413C–20414B

NIGERIA: Illicit Oil Proceeds Laundered
Economic, Financial & Technical Series
Vol.50, Issue.9, Pp.20119A–20120C

AFRICA: Illicit Financial Flows
Economic, Financial & Technical Series
Vol.49, Issue.2, Pp.19449C–19450C

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Botswana-Namibia: Trans-Kalahari Railway

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The new Trans-Kalahari Railway gathers momentum as governments in Southern Africa seek to improve regional infrastructure and trade

An ambitious multi-billion dollar railway project is to connect landlocked Botswana and its rich Karoo Basin coal fields, to Walvis Bay on the Namibian coast. Robert Kalomo, a central person for the project on the Namibian side, commented that offices had been set up in Windhoek to be staffed by officials from both countries, to work towards a host of cross-border and legal matters.

The work itself is expected to be conducted by private companies; Kalomo explained that “we have not yet selected the companies that will implement the project”.  The cost, originally estimated at US$ 15 billion, is also likely to rise, and private investors would have to raise the amount without any government guarantees, added Kalomo in daily newspaper the Namibian. As of yet, no major financial institution has shown interest in the project but the World Bank and the African Development Bank (AfDB) have been identified as possible suitors.

Corporate Communications Officer at TransNamib Holdings Limited, Ailly Hangula-Paulino, said that “a developer-arranged investment model has to be set up that will guide among others the financing, construction, and operation of the railway line…a joint venture will be set up by both governments as well as a Public Private Partnership (PPP) that will drive the process”, reported the Namibian.

The two countries signed a Memorandum of Understanding (MoU) earlier in March, which covers aspects of the rail network that will run along the Trans-Kalahari Corridor (TKC). Hangula-Paulino said in Namibia, the railway line would follow the TKC past Gobabis through to Omitara where it turns west to Okahandja, and onwards to Walvis Bay. In Botswana, the line shall start at the Mmamabula coal fields connecting to the existing railway to Rasesa where it turns west passing north of Molepolole and east of Letlhakeng, joining the Molepolole-Kang road and through to the Mamuno border post. Alternative routes also exist to South Africa‘s Richards Bay and Mozambique‘s Beira port.

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 World Coal website

Demand for Botswanan coal, largely from China and India, is hoped to boost and contribute to economic growth in the landlocked nation; once completed it is estimated that 90m tonnes will pass along the railway each year. Demand for coal is expected to peak around 2020 and Botswana is aiming to export 10% of the world’s total coal production, competing against Colombia, Australia, Russia and South Africa, reported the Namibian.

The TKC, along which the railway is to follow, was jointly built by the Namibian and Botswana governments in the 1990s with an initial investment of approximately Namibian Dollar (N$) 850m. The corridor consists of a tarred road linking the Port of Walvis Bay with Botswana and Gauteng in South Africa; new developments to the corridor infrastructure are intended to handle increased shipments from the Democratic Republic of Congo (DR Congo), Zambia and Zimbabwe, reported Business Day.

A harbour, known as the Southern Africa Development Community Gateway Port, will be built 5km north of Walvis Bay and the second and third phases of the port, initially slated to start in 2020, involve construction of a dry-bulk terminal and a five-berth coal terminal, primarily to cater for shipments from Botswana’s coalfields.

Namibia’s President Hifikepunye Pohamba commented, in a report on PortStrategy.com,  that “this will significantly contribute to and strengthen Namibia’s position in terms of trade…[and] in the same vein other landlocked countries will benefit from the railway as it will provide them with a choice of corridors to choose from”.

Find out more in the Africa Research Bulletin

Namibia-South Africa
Economic, Financial & Technical Series
Vol.52, Issue.5, Pp.20855B

Botswana – Budget 2015/16
Economic, Financial & Technical Series
Vol.52, Issue.1, Pp.20691A–20692C

Coal: Botswana
Economic, Financial & Technical Series
Vol.49, Issue.9, Pp.19711B

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