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Continental Overview: Influence of regional and international bodies reasserts itself Featured Analysis: North Korea's African inroads come to an ...
Continental Overview: Influence of regional and
                             international bodies reasserts itself
                             Featured Analysis: North Korea’s African inroads come
                             to an end
                             Informed Insights: The prospects for conflict-resolution
                             in Libya
                             Country-specific analyses across all 5 African regions

                                                  A UN patrol in the eastern
                                                   Democratic Republic of
                                                        Congo (DRC)

An In On Africa (IOA) Publication                        AUGUST 2016 EDITION
                                                               ISSN 2311-6943
Continental Overview: Influence of regional and international bodies reasserts itself Featured Analysis: North Korea's African inroads come to an ...
AFRICA WIDE                                                                                   LETTER FROM FOUNDING EDITOR

                       4 Continental Overview: Influence                                                            The eventful month of July 2016 provided
                      of regional and international bodies                                                          varied and intriguing developments in conflict
                      reasserts itself                                                                              and conflict resolution on the often-conflicted
                                                                                                                    African continent. South Sudan’s tumult grew
                       9 Featured Analysis: North Korea’s                                                           from a local trouble to a continental concern,
                      African inroads come to an end                                                                and was the main topic of the African Union
                                                                                                                    (AU) Summit in Rwanda in July. The AU is
                      18 Monitoring Economies: Too big                                                              called upon to play an ever more intricate role
                      to fail: South Africa’s strong economic                                                       in restoring peace to conflicted areas, and
                      fundamentals eclipse election-year                                                            faces its toughest challenge in South Sudan
                      conflict                                                                                      should AU troops be deployed there. ACM
                                                                                                                    will pursue each development and, as always,
                      24 Informed Insights: The prospects                                                           contextualise whatever occurs within recent
                      for conflict-resolution in Libya – An                                                         history, the region and Africa itself. It is this
                      ACM interview with Arsalan Alshinawi                                                          method of placing even minute occurrences,
                                                                                                                    from a hijacked ship in the Gulf of Guinea to

                      REGIONAL ANALYSIS                                                                  9          the flight of a refugee family from Burundi,
                                                                                                                    into a broader historical and social matrix that
                                                                                                                    characterises ACM’s analysis.
                      29 North Africa: Tunisia’s spirit of
                                                                                                                    The month of July brought new wrinkles
                      rebellion has a dark side that spawns
                                                                                                                    to the decades-old sagas of such African
                      terrorists
                                                                                                                    autocrats as Sudan’s Omar al-Bashir and
                      36 East Africa: Netanyahu’s diplomatic                                                        Zimbabwe’s Robert Mugabe. The story arc
                                                                                                                    of international players on the continent like
                      mission turns the tide on Africa’s
                                                                                                                    Israel and North Korea saw new chapters
                      relationship with Israel
                                                                                                                    written, with Israel cementing relationships
                      43 West Africa: Additional                                                                    with African partners while North Korea
                                                                                                                    saw historic relations unravel. While these
                      peacekeepers in Mali a good start to fix
                                                                                                                    stories are fascinating in their own right,
                      the troubled mission

                      50 Central Africa: The Democratic
                                                                                                       24           they are better appreciated within an even
                                                                                                                    larger story arc, that of post-independence,
                                                                                                                    post-Cold War Africa. International relations
                      Republic of Congo is the latest African
                                                                                                                    are shifting with new realities. Economic
                      country whose fate is tied to a leader’s
                                                                                                                    and environmental challenges are sufficient
                      ambitions
                                                                                                                    for most African leaders to look anew at
                      59 Southern Africa: Zimbabwe’s                                                                past alliances. Britain’s departure from the
                                                                                                                    European Union is one such development
                      domestic opposition to Mugabe’s rule
                                                                                                                    that is prompting foreign policy reviews in
                      intensifies
                                                                                                                    many African capitals.

                      BACK PAGES                                                                                    As always, we benefit from reader response

                                                                                                       50
                                                                                                                    to report content. We welcome contributions
                                                                                                                    from analysts who have thoughts on African
                      67 ACM Countries in Focus:                                                                    conflict and conflict resolution issues. Please
                      Burkina Faso & Niger                                                                          contact us.

                      71 Final Analysis: Time for the world to                                                      Ufundze kahle! (“Read well!”)
                      hold Rwanda’s government accountable
                      for repressive policies at home and
                      destabilising practices in Central Africa
                                                                                                                    James Hall
                      80 Featured ACM Partner: Oxpeckers                                                            Founding Editor, ACM
                                                                                                                    Email: james@inonafrica.com
August 2016 Edition

                      81 Coming Up in ACM                                                                           Tweet ACM on any issue:
                                                                                                                    @hallaboutafrica

                                                                                                        71
                      82 Publication Information
                                                                                                                    Cover photo courtesy MONUSCO/Sylvain Liechti/Flickr

                        PUBLISHER Jonathan Mundell FOUNDING EDITOR James Hall ASSOCIATE EDITOR Kyle Hiebert CONTRIBUTING ANALYSTS Catherine Akurut,
                        Isaac Ogbodu, Abdi Jama Ghedi, Israel Kodiaga, Graham Lee, Mohammed Maoulidi, Conway Waddington PRODUCTION COORDINATOR Claire
                        Furphy RESEARCH ASSOCIATES Diego Ali, Fidelis Okonkwo, Pawel Tverskoi COMMERCE COMMENTARIES Mohammed Maoulidi INVESTOR
                        INSIGHTS Adam Choppin COPY EDITING Dominique Gilbert, Liezl Stretton DESIGN Hayley Dodrill

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                2     Africa Conflict Monitor | In On Africa (Pty) Ltd
Continental Overview: Influence of regional and international bodies reasserts itself Featured Analysis: North Korea's African inroads come to an ...
NORTH AFRICA
          EGYPT | Government efforts to eradicate ISIS in the Sinai are
bearing results, but a fixation on stifling freedoms is grating on civil society. On
4 August, the Egyptian military released a statement claiming that it had killed
the leader of ISIS’ Sinai branch along with 45 other ISIS fighters in airstrikes
near el-Arish. Meanwhile, Egypt’s leading association of Muslim scholars
derided the Ministry of Religious Endowments for issuing stock sermons to
imams to supposedly help dial back extremist messaging.
MOROCCO | Despite deciding to apply for re-admission into the African
Union (AU), comments from King Mohammed VI during a nationally-televised
address on 31 July show that Rabat remains loathe to relinquish its claim of
ownership over the Western Sahara. Morocco is the only African nation that
does not belong to the AU, after having left in 1984 in protest of the AU’s ruling
that the Sahrawi peoples should have sovereignty over the disputed territory.

          WEST AFRICA                                                    EAST AFRICA
          THE GAMBIA | Retrograde despot Yahya                           UGANDA | President Yoweri Museveni
Jammeh is purging his regime of anyone that could              appears to have shredded the last legal obstacle
emerge as a political opponent or prove that he has            preventing him from staying in power for life. Following
personally bankrupted the nation. On 8 August, a US-           the repeal of a cap on presidential terms in 2005,
based activist news network run by members of the              Museveni’s ruling party passed a motion on 2 August
Gambian diaspora reported that Jammeh is now even              abolishing presidential age limits. Museveni can now run
bypassing his infamous intelligence agency to pursue           for re-election in 2021 when he will be 76 years old – a
personal vendettas against top government officials.           year older than the previous limit allowed.

NIGERIA | Steadily losing territory and now contending         SUDAN | Protracted conflicts in Blue Nile, Darfur and
with a splintering of allegiance to changing leadership,
                                                               South Kordofan regions have inched closer to resolution.
terror group Boko Haram is reaching for whatever
leverage it can still muster. A new video released on 14       On 8 August, a coalition of rebel factions and political
August showed some 50 of the Chibok schoolgirls held           opposition groups signed an AU-brokered roadmap to
captive since April 2014; a masked militant alleging           peace agreed to by Khartoum in March 2016. Next steps
numerous girls had been killed by Nigerian airstrikes          involve the two sides negotiating terms for a permanent
against the group – a claim debunked by analysts – and         ceasefire and allowing humanitarian groups to increase
demanding scores of imprisoned Boko Haram fighters be          aid to communities blighted by years of fighting.
released in exchange for the girls’ freedom.

          CENTRAL AFRICA                                                 SOUTHERN AFRICA
          BURUNDI | The government remains defiant                       MOZAMBIQUE | Fresh attempts at
as international bodies are ratcheting up pressure on          reconciliation between civil-war era foes followed their
President Pierre Nkurunziza to work toward a solution to       typical pattern of one step forward, one step backward.
the country’s political quagmire. Burundi’s government         Internationally-mediated peace talks between the
deemed invasive a resolution by the UN Security Council        ruling Frelimo party and the armed opposition, Renamo,
on 29 July authorising a 228-strong police force to be         resumed on 8 August amid reports that Renamo militants
deployed to the country; while four Burundian lawyers          had that same day razed a health centre and government
that fed the UN evidence of torture, executions and            buildings in a village in the northern Niassa province.
forced disappearances by security forces have been
threatened with disbarment.                                    BOTSWANA | Frustrated youths – who comprise 70%
                                                               of Botswana’s jobless – are beginning to demand action
                                                                                                                                      August 2016 Edition

CENTRAL AFRICAN REPUBLIC (CAR) | On 26                         over the bleak future they envision for themselves in the
July, the UN extended the mandate of its effective             country’s commodity- and tourism-dominated economy.
– if controversial – peacekeeping force in the CAR             A small protest held by unemployed graduates in front
(MINUSCA) until November 2017. Without discounting             of parliament buildings in Gaborone on 8 August was
the raft of sex abuse allegations levied against troops        violently broken up by police.
attached to the mission, since being deployed in
September 2014 MINUSCA has been vital in preventing
the CAR from being sundered by civil war and sectarian
bloodshed.

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AFRICA WIDE     CONTINENTAL OVERVIEW                                                                                                              Table of
                                                                                                                                                        Contents

                      Influence of regional and international
                      bodies reasserts itself
                      In July, wayward African nations were under pressure from continental and international bodies
                      to reform deviant ways and curb aggression or face the consequences; including sanctions
                      and the imposition of peacekeepers. At this time of economic uncertainty and international
                      terrorism, international cooperation is a foundation for a required multinational response.
                      Only power-hungry despots remained oblivious to – or defiant of – global interconnectivity.

                      The African Union (AU) was showing more resolve to                      AU intervention in Burundi was again mooted, and AU
                      move beyond a society of African leaders prioritising                   peacekeepers may be the solution to South Sudan’s
                      one another’s privileges and survival by laying the                     toxic, violence-producing political environment. The
                      foundation for the type of secure and prosperous                        UN and the West also challenged African despots, as
                      continent that the AU was founded to achieve.                           Africa’s authoritarian allies abroad, China and Russia,
August 2016 Edition

                           Sudan’s President Omar al-Bashir. In July 2016, the International Criminal Court (ICC) referred the governments of both
                        Djibouti and Rwanda to the UN for hosting Bashir and flouting an ICC warrant for his arrest. The Sudanese dictator has been
                                                        indicted by the ICC for war crimes committed since 2009.
                                                                         Photo courtesy Al Jazeera English/Flickr

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Table of
Contents                                                                                                    CONTINENTAL OVERVIEW

           were forced into less engagement in the continent by
           those countries’ economic reversals. China was also

                                                                                                                                                                                         AFRICA WIDE
           exposed for several nefarious business and military
           dealings with African countries.

           North Africa: Balancing security with freedoms

           No longer content with his country’s diplomatic
           isolation from many former allies, King Mohammed
           VI of Morocco on 18 July requested to re-join the
           AU from which, 32 years earlier, in 1984, Morocco
           departed in protest of the body’s admission of
           Western Sahara as a sovereign country. Morocco
           has long declared the territory as its own. The issue
           remains unresolved, but Rabat found its exclusion
           untenable at a time when continental solidarity is
           useful for trade and security benefits.

           Tunisia acted on international intelligence that 5,000
           Tunisians have been recruited by the Islamic State
           (ISIS) and curtailed cross-border travel for many
           citizens, and surveyed some who had returned from
           overseas (see ‘Tunisia’s spirit of rebellion has a dark side
           that spawns terrorists’, page 29). In Egypt, continuing
           government violations of civil liberties in the name of
           thwarting terrorism grew extreme. In July, all Muslim
           clerics were told to read at weekly services a sermon
           written by a writer on the state payroll. Arrest
           awaited clerics who departed from the prepared text
           or who used their own sermons. Perhaps to distract
           from the growing controversies that his increasingly-
           repressive policies have engendered domestically,
           President Abdel Fattah el-Sisi on 21 July suggested
           that his country initiate an intervention to “break the
           deadlock” in the Middle East peace process.

                           Perhaps to distract from the
                          growing controversies that his
                   increasingly-repressive policies have
                    engendered domestically, President
                          Abdel Fattah el-Sisi on 21 July
                  suggested that his country initiate an
                   intervention to “break the deadlock”
                      in the Middle East peace process.
                                                                                                               ISIS fighters disguise faces as they pose for photograph.
                                                                                                                                                                                            August 2016 Edition

                                                                                                             Mounting intelligence reports of Tunisians having returned
                                                                                                              home after fighting for ISIS in the Middle East has Tunisian
                                                                                                             authorities scrambling to understand the country’s outsized
                                                                                                                              problem with radicalisation.
                                                                                                                               Photo from Dabiq, ISIS’ English magazine

           All images used by ACM are licensed under the Creative Commons Attribution-ShareAlike/NoDerivs agreements – http://bit.ly/K9eh9h & http://bit.ly/RaejCi.
           Images are not endorsed by their source nor modified and all graphics are original ACM creations using data from the source credited, unless stated otherwise.

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                                                                                                                                                           Contents

                      East Africa: Cynicism sparks
                      South Sudan violence
      AFRICA WIDE

                      In South Sudan, neither leader
                      of the two main rival factions
                      competing for power, President
                      Salva Kiir or Vice-President Riek
                      Machar, seemed sincere about
                      the observation of an August
                      2015 peace accord. Some 300
                      people have been killed in
                      clashes between government
                      and Machar’s rebel group. On 26
                      July, after Machar had already
                      left the capital, Kiir moved to
                      replace Machar with military
                      General Taban Deng. While South
                      Sudanese are fleeing the renewed
                      violence – 3,000 refugees arrived             A Cameroonian soldier at the opening of US-sponsored military exercises in Douala.
                      in Uganda during the weekend of                 Concerted operations against Boko Haram by militaries in the Lake Chad Basin
                      22-23 July – the country is also                          have shown some progress against the jihadists in 2016.
                                                                                             Photo courtesy US Army/Wikimedia Commons
                      home to 264,000 refugees from
                      the Democratic Republic of Congo
                      (DRC), Sudan and other countries,                  @hallaboutafrica                         West Africa: Islamic insurgency
                      whose lives are endangered by                                                               intensifies in Mali, stagnates in
                                                                                 South Sudan rebels’ rejection
                      the factional fighting. As the AU                          of AU troop deployment may
                                                                                                                  Nigeria
                      summit commenced in Rwanda                         be a ploy to ensure no foreign troops
                      in July with South Sudan leading                   if they break pledge to support Kiir’s   On 21 July, Mali began a three-day
                      the discussion agenda, Machar                      government                               mourning period to commemorate
                      proposed that the only way                                                                  the lives of 17 soldiers gunned
                      that the bloodshed would cease                In    contrast,     long      festering       down when two Islamic terrorists
                      would be a “third force” asserting            animosities were salved in East               attacked a military base. Some 35
                      order on the country. The AU                  Africa when Israel’s Prime Minister           soldiers were wounded in the 19
                      might provide such a force, or a              Benjamin Netanyahu conducted a                July raid, which prompted a se-
                      multilateral agreement might be               four-nation visit to rewrite African-         curity review. The large country’s
                      put into place, assuming there                Israeli relations (see ‘Netanyahu’s           wide and sparsely-inhabited spac-
                      is international will to impose a             diplomatic mission turns the tide on          es make counter-insurgency meas-
                      peace that can only be temporary.             Africa’s relationship with Israel’, page      ures difficult, and the security sit-
                      Like Somalia’s pirates awaiting               36). The trip ended with Ethiopia             uation has deteriorated markedly
                      the departure of the international            and Kenya calling for Israel to be            since 2015 (see ‘Additional peace-
                      naval force patrolling the country’s          granted observer status in the AU,            keepers in Mali a good start to fixing
                      coast so that the interrupted                 countering the historic blockage              the troubled mission’, page 43).
                      business of commandeering ships               of Israel’s AU observer status by
                      and kidnapping crewpersons                    Algeria representing North African            By contrast, the army and gov-
                      can resume, South Sudan’s rival               Arab interests, and by South                  ernment of Nigeria insisted that
                      powers will continue to fight                 Africa, which has taken upon itself           its counter-insurgency is making
                      until a truly home-grown power                the role of Africa’s champion of the          headway against the local jihadist
August 2016 Edition

                      compromise is created. No will                cause of Palestinian statehood.               group, Boko Haram. These asser-
                      for compromise is evident; and in             The two other countries visited by            tions are often ridiculed by polit-
                      July, European countries as well as           Netanyahu, Rwanda and Uganda,                 ical observers who note that the
                      Ethiopia and some African nations             will also likely back Israel at the           terrorists seem to be able to strike
                      withdrew their nationals from                 AU. Beyond that accomplishment,               at will. However, Boko Haram’s
                      South Sudan. Continuing armed                 genuine thawing of the diplomatic             theatre of operations has steadi-
                      conflict is certain for South Sudan           ice between Africa and Israel was             ly dwindled in size since President
                      for the immediate future.                     accomplished.                                 Muhammadu Buhari assumed

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Contents                                                                    CONTINENTAL OVERVIEW

           office in 2015 and Cameroon              Kabila of the DRC will use failures          the DRC by supporting the rebel
           stepped up its own operations            in the constitution to address cer-          movement there. Against a July

                                                                                                                                                  AFRICA WIDE
           against the group. On 21 July,           tain election issues to also remain          report accusing the Kagame gov-
           Nigerian military personnel freed        in office. Kabila may not be able            ernment of human rights abus-
           80 schoolgirls from their Boko           to run for a third term, but he can          es, state spokespersons mount-
           Haram captives in Borno State,           postpone elections until 2017                ed a defence that attacked the
           giving hope to parents of many           (see ‘The Democratic of Republic of          Washington-based originator of
           hundreds more kidnapped girls            Congo is the latest African country          the report, Human Rights Watch,
           that their abduction need not be         whose fate is tied to a leader’s ambi-       for “irresponsible activism.” Such
           permanent.                               tions’, page 50).                            deflections are the final refuge of
                                                                                                 guilty human rights abuses, much
           Central Africa: National leaders               The naiveté of some                    like champions of Sudan’s indict-
           take advantage of their power                         Central African                 ed war criminal President Omar
                                                          constitutions, which                   al-Bashir, who defend him by at-
           The naiveté of some Central                          assume that the                  tacking the International Criminal
           African constitutions, which as-            processes of democracy                    Court (ICC) that seeks justice for
           sume that the processes of de-               will proceed smoothly,                   Bashir’s victims by putting him on
           mocracy will proceed smoothly,                       did not factor in                trial. The smokescreen does not
           did not factor in politicians’ am-            politicians’ ambitions.                 change facts or culpability, how-
           bitions. Consequently, President                                                      ever, and sooner or later Rwanda’s
           Paul Kagame of Rwanda seems                                                           government will be held accounta-
           to be envying President Pierre                                                        ble for its domestic and cross-bor-
           Nkurunziza of Burundi in the lat-        Rwanda was hit by another                    der crimes (see ‘Time for the world
           ter’s successful manipulation of         damning report from an interna-              to hold Rwanda’s government ac-
           his constitution to extend his stay      tional organisation months af-               countable for repressive policies at
           in power. While Kagame is weigh-         ter the UN again provided proof              home and destabilising practices in
           ing his options, President Joseph        that the country is destabilising            Central Africa’, page 71).

                                                                                                                                                     August 2016 Edition

               Members of the DRC’s diaspora in Toronto, Canada, protest Joseph Kabila’s election victory in 2011, announced after
                       Kabila’s government repealed laws requiring a run-off vote. Kabila is seeking a loophole to retain
                                        power ahead of the DRC’s elections slated for November 2017.
                                                 Photo courtesy catchphotography/Wikimedia Commons

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                                                                                                                                                   Contents

                      Southern Africa: As Mugabe’s                  public appearances could not help    When the International Monetary
                      political troubles mount, his                 but wonder when the hulking          Fund (IMF) announced in July that
      AFRICA WIDE

                      irrelevance becomes apparent                  military officials who flanked him   Nigeria’s economy would contract
                                                                    would turn on him, perhaps mo-       in 2016 to growth of -1.4%,
                      In Zimbabwe in July, the band                 tivated by economic mismanage-       South Africa with its weak 0.9%
                      of domestic mercenaries called                ment that is delaying army per-      projected growth seemed closer
                      “war veterans” – who from the                 sonnel payments, and escort the      to regaining the spot as Africa’s
                      1990s enforced President Robert               former liberation leader offstage    leading economy. Already in July,
                      Mugabe’s land theft policies with             permanently.                         South Africa regained the number
                      violence – turned on their erst-                                                   two spot from Egypt. However,
                      while leader. Mugabe has become                                                    South Africans were not feeling
                      a “dictator,” said his former en-                    South Africans were           prosperous and contented as key
                      forcers. Coming at a time when                      not feeling prosperous         municipal elections set for August
                      Harare and Bulawayo were closed                      and contented as key          promised to rewrite the country’s
                      by anti-government protests and                    municipal elections set         political landscape, which has
                      the first sustained and widespread                 for August promised to          stagnated under the scandal-
                      groundswell of anti-Mugabe ac-                       rewrite the country’s         plagued ruling party, the African
                      tivities were writing a new page in                    political landscape,        National Congress (ANC) (see
                      the country’s history, the 92-year-                  which has stagnated           ‘Too big to fail: South Africa’s strong
                      old despot seemed isolated and                          under the scandal-         economic fundamentals eclipse
                      frail (see ‘Zimbabwe’s domestic op-                  plagued ruling party.         election-year conflict’, page 18).
                      position to Mugabe’s rule intensifies’,
                      page 59). Observers of Mugabe’s

                                                                                     WIGGET ON AFRICA FOR ACM
August 2016 Edition

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Table of
Contents                                                                        FEATURED
                                                                           CONTINENTAL   ANALYSIS
                                                                                       OVERVIEW

                                                                                                                                                  AFRICA WIDE
           North Korea’s African inroads come
           to an end
           A UN panel calling Namibia out on breaking international sanctions by making military
           deals with Asia’s pariah state, North Korea, has wider implications. African countries can no
           longer blindly do what they want and laugh at international law without consequences.

           The bilateral advantages were too      rights record, North Korea is sub-             insane but is sufficiently ruthless
           tantalising for African countries to   ject to ever more strenuous sanc-              to execute family members. Since
           resist or for North Korea to with-     tions aimed at hindering its nu-               2006, the UN Security Council
           stand exploiting. Condemned in         clear and military ambitions. The              (UNSC) has passed five major
           the international community as a       country is ruled by tyrannical Kim             resolutions aimed at countering
           rogue nation with a horrid human       Jong-un, who may or may not be                 North Korea’s nuclear programme.

                                                                                                                                                     August 2016 Edition

                        A nationalist dance performance during North Korea’s annual Arirang Mass Games in Pyongyang.
                                                         Photo courtesy (Stephan)/Flickr

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FEATURED ANALYSIS                                                                                                          Table of
                                                                                                                                                 Contents

                      North Korea will go to any lengths to get what it                aging autocratic Yoweri Museveni who is determined
                      wants, in this case, nuclear weapons and interconti-             to remain President-for-Life. However, a sentiment
      AFRICA WIDE

                      nental missile delivery systems for those bombs that             toward greater democracy in these countries makes
                      will ensure that Pyongyang gets whatever it wants in             previous links with North Korea untenable. The con-
                      perpetuity. A foreign policy based on lies, insults, bel-        tinent’s more advanced democracies like Botswana
                      licosity and threats has unnerved the country’s im-              broke off relations with Pyongyang years ago. Even
                      mediate neighbours and disturbed the superpowers                 Museveni can be swayed by a better deal. On 29
                      of the People’s Republic of China and the US.                    May 2016, South Korea’s President Park Geun-hye’s
                                                                                       state visit to Kampala climaxed with the achievement
                      Four African countries in particular, Ethiopia, the              of her mission, when she announced that Uganda
                      Republic of Congo, Rwanda and Uganda, have lead-                 had broken off all military ties with Pyongyang. South
                      erships that seem not to care about the prospect of              Korea’s aid package proved more attractive.
                      a nuclear-armed North Korea, nor about the millions
                      of North Koreans oppressed by the Kim military re-               With Namibia as the final likely holdout, Africa will,
                      gime. The fulsome descriptions of a “strong friend-              within the year, sever remaining ties with North Korea.
                      ship between development partners,” that African                 However, damage has been done. North Korea has
                      heads of state and diplomats use to praise their re-             been made stronger and more dangerous through
                      lations with Pyongyang refer to a relationship with              the hard cash earned through its erstwhile African
                      a regime, not a silent and powerless Korean people.              allies like Ethiopia. While African nations may claim
                      African despots in the past would feel at home with              to have purged themselves of Pyongyang contacts,
                      Kim’s governance. However, Ethiopia, the Republic                they are still accountable for UN sanctions violations
                      of Congo, Rwanda and Uganda are evolving toward                  dating from 2006. Reckoning is under consideration
                      representational democracies, albeit fitfully to be              by the UNSC.
                      sure, and, in the case of Uganda, dragging along the
                                                                                                    North Korea has been made
                                                                                                   stronger and more dangerous
                                                                                                   through the hard cash earned
                                                                                              through its erstwhile African allies.

                                                                                       North Korea and African leaders share a disdain
                                                                                       for UN sanctions

                                                                                       While South Korea’s President Park was in Uganda,
                                                                                       a top official of the North Korean regime, Kim Yong-
                                                                                       nam, was visiting nine Sub-Saharan nations with
                                                                                       assurances that military and trade treaties would be
                                                                                       fulfilled despite the pressure of mounting sanctions
                                                                                       on his country. Kim’s dictatorship has forged close
                                                                                       ties with the ipso facto dictatorship of President-for-
                                                                                       Life José Eduardo Dos Santo’s Angola and Teodoro
                                                                                       Obiang’s Equatorial Guinea, as well as the incipient
                                                                                       dictatorships of Pierre Nkurunziza’s Burundi and
                                                                                       Joseph Kabila’s Democratic Republic of Congo (DRC).
                                                                                       Secret dealings intended to avoid UN inspection allow
                                                                                       for commodities and hard currency, as well as desired
August 2016 Edition

                                                                                       mineral commodities, to enrich North Korea. The
                                                                                       four countries’ strongmen have long scoffed at the
                                                                                       danger of international sanctions. Dos Santos bought
                                                                                       a small fleet of naval patrol boats from North Korea
                                                                                       in 2011, five years after UN sanctions specifically
                                                                                       forbade member states from giving or receiving
                       A mural of North Korea’s leader Kim Jong-un at an art exhibit   “assistance relating to the provision, manufacture or
                                         outside of Lyon, France.                      maintenance of arms and related material.”
                                      Photo courtesy Thierry Ehrmann/Flickr

                10    Africa Conflict Monitor | In On Africa (Pty) Ltd
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                                                                                                                                                   AFRICA WIDE
             North Korea has a history of selling weapons to autocratic regimes. Above: A North-Korean-built artillery gun deployed
           by Iran during the Iran-Iraq war (1980-1988). Below: Mobile missile launchers on display during annual celebrations marking
                                                           the end of the Korean War.

                                                                                                                                                      August 2016 Edition

                                   Photos courtesy Uri Tours/Flickr; Albert F. Hunt/US Marines Corps/Wikimedia Commons

                                                                                               Africa Conflict Monitor | In On Africa (Pty) Ltd   11
FEATURED ANALYSIS                                                                                                       Table of
                                                                                                                                              Contents

                      For years Africa’s despots have shown undisguised
                      contempt for the UN’s ethical and human rights                   A reason emboldening any African
      AFRICA WIDE

                      policies. Meanwhile, these rulers have demanded as            leader to defy international sanctions
                      their due humanitarian assistance that spares their                and wring from North Korea any
                      treasuries from having to spend money to keep                        benefits it can is the practice of
                      populations educated, fed and healthy but frees                    the African Union (AU) of picking
                      their own funds to finance security arms to oppress               and choosing which international
                      political oppositions. Pyongyang has capitalised                         accords it wishes to follow.
                      on this cynicism, and is doing well by appealing
                      to leaderships’ anti-democratic sentiments. UN
                      investigators revealed in May 2016 that Kabila had         Namibia’s reasons for retaining ties with North
                      purchased a consignment of pistols from North              Korea are more sentimental
                      Korea in 2014 and hired North Korean instructors
                      to train and in fact augment DRC police and Kabila’s       While it is hard to find affection for North Korea’s
                      own presidential guard. As he prepares to hold onto        murderous regime, Namibia has managed to
                      power by manipulating another term of office despite       decompartmentalise its views on the Kim regime
                      a constitutional term limit that states his time is up,    by honouring the African practice of having long
                      Kabila is using Pyongyang military aid to prepare for      memories for friends of the past. During the War
                      any uprising that may occur when he makes his power        of Independence against the white descendants of
                      grab. To such a leader, UN sanctions are toothless         German colonialists in the 1980s in the then South
                      talk, while North Korea offers material support.           West Africa, the liberation army, the South West Africa
                      Nkurunziza feels the same attraction to Pyongyang,         People’s Organisation (SWAPO), enjoyed the material
                      only with more impetus. The West is just awakening         support of Pyongyang. North Korea subsequently
                      to Kabila’s ambitions, which are reversing the DRC’s       leveraged a payback that included giving discounted
                      progress toward democracy that earned the West’s
                      praise in 2011, but has been wary of Nkurunziza’s
                      actions since he precipitated an incipient civil war in
                      2014 by unconstitutionally extending his own stay
                      in power.

                      A reason emboldening any African leader to defy
                      international sanctions and wring from North Korea
                      any benefits it can is the practice of the African Union
                      (AU) of picking and choosing which international
                      accords it wishes to follow. The setting aside of
                      countries’ obligations to the International Criminal
                      Court (ICC) in the Hague is the most ubiquitous
                      example of abandoning obligations and ethics
                      for political expedience. In July, the ICC referred
                      Djibouti and Uganda to the UNSC for discipline
                      following the refusal of both countries to surrender
                      Sudan’s dictator and indicted war criminal, Omar
                      al-Bashir. Bashir’s victims are never mentioned by
                      his defenders, most notably Museveni of Uganda
                      and South Africa’s increasingly autocratic President
                      Jacob Zuma. However, by thwarting the ICC, African
                      governments hope to divert any possibility that they
August 2016 Edition

                      will be held accountable for their own human rights
                      abuses. For countries that wish to retain lucrative
                      relations with Pyongyang, the defiance of the ICC
                      offers a welcome template.                                    Former president of Namibia, Hifikepunye Pohamba, on
                                                                                   a SWAPO campaign billboard in 2004. Payback for North
                                                                                    Korea’s support for SWAPO during Namibia’s liberation
                                                                                     struggle has been Namibian government tenders and
                                                                                   Namibia’s neutrality on North Korean censures at the UN.
                                                                                             Photo courtesy Bries/Wikimedia Commons

                12    Africa Conflict Monitor | In On Africa (Pty) Ltd
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           deals on construction work by            has close links with North Korea’s          and as such, worthy of solidarity
           North Korean firms and North             principal military construction firm,       with African countries. Namibia is

                                                                                                                                              AFRICA WIDE
           Korean armaments to Windhoek             the euphemistically named Korea             also showing wilful ignorance of
           in exchange for neutral treatment        Mining Development Trading                  Pyongyang’s well-publicised and
           at the UN. Namibia has regularly         Corporation (KOMID). Windhoek               therefore    impossible-to-ignore
           abstained from votes condemning          surely knew of these ties, and              crimes against humanity.
           North Korea’s human rights               consequently, that dealings with
           records.                                 Mansudae is a violation of UN
                                                    prohibitions of any dealings of a                The alliance between
           In June, Namibia’s Deputy                military nature with Pyongyang.                 some African countries
           Prime Minister Nandi-Ndaitwah            This relationship between Namibia                     and North Korea
           Netumbo        visited   Pyongyang       and KOMID via Mansudae may                             was forged from
           on a mission believed to have            prompt the UN special panel that                    the selfishness and
           been undertaken to prepare               scrutinises North Korea’s business               cynicism that bedevils
           North Korea for a lessening of           dealings with the rest of the world              many African nations’
           relations. If so, Netumbo was set        to refer Namibia to the UNSC.                           foreign policies.
           straight by his hosts, and upon his
           return announced the opposite            Pattern of violating international
           of a cessation of ties. Rather, he       law                                         Kim Jong-un runs his country the
           assured, “While Namibia remains                                                      way ISIS would run any nation
           committed to the implementation          The alliance between some                   it might control, as an absolute
           of all UN sanctions resolutions,         African countries and North Korea           dictatorship maintained by a
           the warm diplomatic relations            was forged from the selfishness             reign of terror where the people
           with the DPRK (the Democratic            and cynicism that bedevils many             are broken and starved so that
           People’s Republic of Korea) will be      African nations’ foreign policies.          leadership may exult in its own
           maintained.”                             What does Uganda’s autocratic               power. African governments that
                                                    President Museveni care if                  forge toxic relations with this
           However, Namibia faces a                 North Korean weapons cause                  regime will remain tainted until
           dilemma. A UN panel of experts           destruction in Japan or his trade           they are held accountable for their
           has raised flags regarding the           with Pyongyang facilitates an               dealings. Meanwhile, overtures
           work of North Korean military            invasion of South Korea, as long as         from South Korea to sway African
           contractors in the country. The          his own regime materially benefits?         nations to shift diplomatic ties
           North     Korean    construction         This unattractive solipsism was on          are set to continue, offering
           firm Mansudae is best known              display in Ethiopia, Namibia and            inducements for change that
           for erecting such Windhoek               Rwanda long after it was revealed           African governments are likely to
           landmarks as the Independence            that North Korea is not just another        accept.
           Museum and the new State                 struggling Third World country
           House. However, the company              oppressed by Western powers

           INVESTOR INSIGHTS:

             By flaunting UN sanctions against North Korea, African regimes are engaging in what any economist would clearly
             regard as rational behaviour in line with the incentives laid out for these governments. These regimes certainly deserve
             scorn for their wilful hypocrisy to cash the cheques for international assistance while disregarding the rules of those
             same cheque-writing institutions. But until these sanctions become meaningfully enforced through the withdrawal of
             membership privileges and/or material aid from the UN or other multilateral bodies, no rational incentive-maximising
                                                                                                                                                 August 2016 Edition

             government should be expected to curtail their engagement with North Korea. In the experience of international
             sanctions against Iran, global enforcement was ultimately left to the US and, to a lesser extent, to the European
             Union (EU) to punish companies, individuals and governments for their violations of those sanctions. So far, the US
             government has seemingly not prioritised the extraterritorial application of its North Korean sanctions programme
             in the same way as it did for Iran, but with a change in the US administration imminent, chances increase that some
             African regimes may find themselves on the wrong end of investigations and sanctions from the US Treasury. – A.C.

                                                                                          Africa Conflict Monitor | In On Africa (Pty) Ltd   13
inonafrica.com
                Leading Africa’s conflict analysis

                                        ACM Founding Editor, James Hall

Some ACM subscribers include:

    ACM is produced by In On Africa                                     PHONE
                                                             Phone: + (27) 81 011 1011
                                                                        ONLINE
                                                          Email: jonathan@inonafrica.com
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                                                     Emmarentia, 2195, Johannesburg, South Africa
Table of
Contents                                                                               FEATURED ANALYSIS

                                                                                                                  ANGOLA
       ACM ANALYSIS IN BRIEF | North Korea’s African inroads come to an end                                       5 August

                                                                                                                                               AFRICA WIDE
            Some large African countries have tried to retain lucrative ties with North         Officials meet delegation from
            Korea with secret dealings and open dismissals of their obligations as UN           North Korea pushing to renew
            member states. The days of deception are apparently over, with the UNSC             bilateral cooperation. The delega-
            about to take action against violators of sanctions against Pyongyang and           tion included North Korea’s depu-
            South Korea dangling its own inducements.
                                                                                                ty foreign minister, Sin Hong-chol,
       Key points:                                                                              who asserted North Korea’s un-
                                                                                                assailable right to simultaneously
            •   Djibouti and Uganda have been referred to the UNSC for disciplinary             pursue nuclear technology and
                action for violating military sanctions against North Korea, and Namibia        economic development. The meet-
                may be next                                                                     ing came just days after Angola
            •   Burundi and the DRC are known to have secret dealings with North
                                                                                                submitted a proposal to the UN
                Korea as those country’s power-hungry leaders look to Pyongyang for
                                                                                                Security Council (UNSC) specify-
                assistance that the West is withholding
            •   South Korea is on a diplomatic offensive offering North Korea’s African         ing how Angola would implement
                allies an attractive alternative to an alliance with Pyongyang                  the UNSC’s sanctions imposed
                                                                                                against North Korea in March as
                                                                                                a consequence of North Korea’s
      RELEVANT READING ...                                                                      fourth nuclear rocket test launch
                                                                                                in January 2016. Angola’s action
                                                                                                plan mentions bans on exports of
              ‘Report of the Panel of Experts established pursuant to resolution
           		 1874 (2009)’                                                                      fuel and mineral products to North
           		 The panel’s latest report to the UNSC details North Korea’s                       Korea, as well as more vigorous in-
              continued evasion of sanctions, including trade in arms and related               spections and monitoring of cargo
              materiel and the provision of training for police and paramilitary                planes and vessels transiting to and
              units on the African continent - http://bty.link/40v                              from Pyongyang. The action plan is
                                                                                                the first Angola has submitted, de-
              ‘The two Koreas and Africa in the 21st century’
           		 The Centre for Chinese Studies commentary examines how North                      spite three previous rounds of UN
              and South Korea have made inroads in Africa, while simultaneously                 sanctions being slapped on North
              fending each other off - http://bty.link/40u                                      Korea in 2006, 2009 and 2013.
                                                                                                However, the 5 August meeting is
                                                                                                the second meeting between the
                                                                                                countries’ officials in four months.
                                                                                                A visit by North Korean officials to
                                                                                                Luanda at the end of March 2016
                                                                                                focused on what Angolan state
                                                                                                media described as “sharing expe-
                                                                                                riences” in public order and securi-
                                                                                                ty. Although trade and cooperation
                                                                                                between the nations has ebbed
                                                                                                over the past decade as a result of
                                                                                                beefed-up UN sanctions, Angolan
                                                                                                state media regularly describes a
                                                                                                healthy relationship between the
                                                                                                two, invoking rosy descriptions of
                                                                                                North Korea’s support for Angola
                                                                                                                                                  August 2016 Edition

                                                                                                post-independence. Angola’s sub-
                                                                                                mission of an action plan to the
                                                                                                UNSC is encouraging, but the noto-
                                                                                                riously corrupt and repressive gov-
                                                                                                ernment of President José Eduardo
                                                                                                dos Santos is likely to disregard the
                                                                                                sanctions if North Korea can offer
                                                                                                enough incentive to do so.

                                                                                           Africa Conflict Monitor | In On Africa (Pty) Ltd   15
FEATURED ANALYSIS                                                    Table of
                                                                                           Contents

                                                                            NORTH KOREA AND
      AFRICA WIDE

                       An investigative report from a UN Panel of
                       Experts released in July 2016 documented
                       how North Korea has been effective in evading
                       sanctions against the country. North Korea
                                                                            AFRICA: A RECENT
                       continues to use the international financial
                       system, airlines and container shipping routes          HISTORY OF
                                                                               ILLICIT TIES
                       to trade in prohibited items, such as trading
                       arms and related material to Africa. North
                       Korea also continues to provide training for
                       police and paramilitary units in Africa in nations
                       with whom it has had long-standing ties.

                       GREEN PINE ASSOCIATED CORPORATION
                       – Known simply as Green Pine, the
                       corporation was first linked to North
                       Korea’s nuclear and ballistic missile
                       programmes in 2012.

                       • Has customers in Africa and Asia,
                         including states that use Green
                         Pine to evade sanctions
                       • Procures arms and related material
                         from the US and Europe, routing
                         shipments through Asia
                       • Taken control of the Korea Mining
                         Development Trading Corporation
                         (KOMID), North Korea’s primary
                         arms dealer
                       • Responsible for roughly half of
                         North Korea’s weapons exports
                       • Specialises in production of maritime
                         vessels, weapons systems and
August 2016 Edition

                         providing related expertise
                       • Known to embed company
                         representatives in North Korea’s
                         foreign embassies and consulates

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                  REPORTS BY UN MEMBER STATES OF SANCTION VIOLATIONS
                      INVOLVING NORTH KOREA AND AFRICAN NATIONS

                                                                                                                                                                          AFRICA WIDE
                                                                                                                            ERITREA | MAY 2012
                                                                                                                       UN Panel of Experts reopens
                                                                        EGYPT | FEBRUARY 2013                     investigation into arms deals between
                                                                     Anonymous UN member state                 Eritrea and North Korea based on a report
                                                                reports shipment of Scud missile spare      from the UN’s Monitoring Group on Somalia and
                                                             parts from Beijing to Cairo arranged between      Eritrea discovering evidence of Green Pine
                                                            North Korean company Ryongsong Trading Co          providing “military and technical support”
                                                           Ltd and MODA Authority International Optronic,       to Eritrea’s Department of Governmental
                                                                an Arab optical and electronics systems                          Garages.
                                                               company. Shipment listed purpose of use
                                                                   as for commercial fishing storage
                                                                            and processing.
                                   SIERRA LEONE | JULY 2012
                                  Shipping vessel South Hill 2
                                belonging to North Korea’s Ocean                                                                                    ETHIOPIA |
                                 Maritime Management Company                                                                                  1980S TO LATE 2007
                               (OMM) first record in service under                                                                       UN investigates ties between
                                      Sierra Leone registry.                                                                         Ethiopia-based Homicho Ammunition
                                                                                                                                  Engineering Corporation and North Korea’s
                                                                                                                                   Mining Development Trading Corporation.
                                                                                                                                Ethiopia admits North Korean assistance in the
                  ANGOLA | JULY 2011                                                                                            development of Homicho. Addis Ababa home to
                Shipments of equipment                                                                                           branch of Korea Pugang Trading Corporation
              relating to Mandume-class                                                                                           – a subsidiary of Korea Ryonbong General
           military patrol boats from Vienna                                                                                          Corporation, a designated company
            to Luanda arranged by a Green                                                                                                for military procurement and
           Pine representative serving as a                                                                                                           sales.
             diplomat at the North Korean
                  embassy in Luanda.

                                                                                                                                             UGANDA |
                                                                                                                                          DECEMBER 2015
                                                                                                                                  Ugandan officials confirm that
                                                                                                                               45 North Korean nationals involved
           NAMIBIA | 2005 Government informs                                                                                 in providing security training to police
         UN Panel that it maintained weapons and                                                                             and paramilitary forces. Media reports
      arms contracts with North Korea up until 2005,                                                                           from Uganda report that 400 police
  including involving North Korea in the construction of                                                                         officers trained by North Korean
    the Windhoek munitions factory from 2002 to 2005.                                                                              instructors since April 2015.

               NAMIBIA | SEPTEMBER 2014
                                                                                                                                                                             August 2016 Edition

  Satellite imagery shows construction of military base
   at Leopard Valley still ongoing after the Pyongyang-
     based Mansudae Overseas Projects construction
       company first advertised the project in 2010.

                                                                                                            Africa Conflict Monitor | In On Africa (Pty) Ltd            17
AFRICA WIDE     MONITORING ECONOMIES                                                                                                          Table of
                                                                                                                                                    Contents

                      Too big to fail: South Africa’s strong
                      economic fundamentals eclipse
                      election-year conflict
                      South Africa’s democracy that serves as a template for Africa’s emerging democracies faces political
                      setbacks that are causing consternation within the local business community. However, foreign
                       investors looking at the long term and bigger picture feel that the country’s overriding qualities
                       justify cautious optimism.

                      South Africa’s municipal elections            governance enjoyed since the              Freedom Fighters (EFF). Given the
                      of August 2016 have been the                  New South Africa emerged in ’94           ANC’s widespread popular sup-
                      most transforming polling since               has been challenged as never be-          port, the 2016 local elections were
                      the country became democratic in              fore by the main opposition par-          theirs to lose, and the losses that
                      1994. The ruling African National             ty, the Democratic Alliance (DA),         were indeed incurred in munici-
                      Congress’ (ANC) hammerlock on                 and the upstart radical Economic          pal governments were the result
August 2016 Edition

                                  South Africa’s President Jacob Zuma at celebrations for the South African Social Security Agency (SASSA),
                            19 July 2016. South Africa’s economy remains promising in spite of Zuma’s scandal-prone tenure that has prompted a
                                                                weakening of the national currency, the rand.
                                                                         Photo courtesy GovernmentZA/Flickr

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                                                                       MONITORING ECONOMIES

           of the self-inflicted wounds of a       most of 2015 to ZAR 19 in March         bullet in December 2016 when
           liberation movement that had lost       2016 before eventually settling at      Moody’s and other rating agencies

                                                                                                                                         AFRICA WIDE
           its way. While ostensibly champi-       ZAR 14 in August 2016.                  again consider the country’s econ-
           oning the poor, increasingly during                                             omy, and perhaps also find it im-
           Zuma’s reign, the ANC showed a           @hallaboutafrica                       pervious to the political hijinks and
           primary interest in its own internal            Tourism into Southern Africa    greedy ways of Zuma’s ANC.
           agenda rather than a legislative                up big 19% because weak
           and executive programme focused          SA rand against dollar, Euro makes     The South African economy’s
                                                    holidays cheap in rand currencies
           on national needs. This might be         countries
                                                                                           positives outweigh the
           expected given the limitations of                                               country’s political negatives
           the political manipulator who runs
           the party, President Jacob Zuma.                                                South Africa is, of course, the ex-
           While Zuma’s operatives managed               The move signalled                perimental Petri dish that Africa
           to divert the prosecution of their                 to the business              is studying intently. Can a racial
           chief for corruption, the price was               community that                minority government that built a
           high. Government has spent ZAR            Africa’s most developed               thriving economy out of oppres-
           1 billion (US$ 68.5 million) on legal       economy is being run                sion be replaced with a majority
           fees to defend Zuma from a med-                 by government as                government that can resist the
           ley of charges.                                a personal fiefdom               temptations of entitlement and au-
                                                            of an ANC cabal.               thoritarianism (as often displayed
           Added to this is a bevy of scan-                                                by Zuma) and keep the economy
           dals that surround the successor                                                afloat? The consequences of fail-
           to the idealistic throne of South       And yet, the financial servic-          ure most certainly include con-
           Africa’s human rights-oriented          es and investment firm Capital          flict situations. These are likely to
           government established by Nelson        International took a long distance      manifest as strikes by civil servants
           Mandela. During the elections,          look at South Africa from its base      and private sector employees, in-
           Zuma evoked Mandela to sway             on the Isle of Man. The firm con-       creasing service delivery protests
           voters not to abandon the ANC.          cluded that South Africa pessimists     the likes of which frequently turn
           However, the modestly-living            have got it wrong when they write       violent, riots in townships directed
           Mandela would never countenance         off the country as reverting to the     toward foreigners and the prolifer-
           hugely expensive state spending         same type of liberation party dic-      ation of ethnic and tribal organisa-
           on a government official’s private      tatorship that has squandered the       tions promoting the fragmentation
           residence and the usurpation of         riches of Angola, Mozambique,           of a country that in many ways is
           executive power by Zuma’s bil-          Zimbabwe and other Southern             the ‘United States of Africa’, com-
           lionaire pals from India, the Gupta     African states. South Africa’s eco-     prised of dozens of ethnicities and
           family. The Guptas accomplished a       nomic fundamentals are not only         eleven official languages.
           virtual coup d’état, choosing cab-      steady, they are strong, Capital
           inet ministers – who would boost        International stated in July. Only      The negatives considered by such
           their business ventures – who           the prospect of continuing drought      investment advisors as Capital
           would then be approved by Zuma.         that has impacted the key agricul-      Investment and the market ana-
           When the incumbent finance min-         tural sector and triggered food in-     lysts of the publisher of the ACM,
           ister refused to bail out South         flation can upset the economy in        In On Africa (IOA), amongst oth-
           Africa’s     money-haemorrhaging        a basic way, and weather forecast-      ers, are daunting:
           state airline run by Zuma’s cronies,    ers predict that the devastating El
           Zuma fired him and found as a re-       Niño weather phenomenon that            •   Declining gross domestic prod-
           placement an unknown sycophant.         brought a rain-diminished 2015-             uct (GDP) largely due to less
           The move signalled to the business      2016 has passed.                            exportation to China, South
                                                                                                                                            August 2016 Edition

           community that Africa’s most de-                                                    Africa’s partner in the trade
           veloped economy (yes, Nigeria’s         A look at these economic fun-               block BRICS (Brazil, Russian,
           economy is larger but it is all crude   damentals explains why South                India, China and South Africa)
           oil exports) is being run by govern-    Africa’s government-issued bonds        •   Declining production in many
           ment as a personal fiefdom of an        were not downgraded to junk                 – if not all – industries
           ANC cabal. The value of the rand        status in June. Furthermore,            •   Rising interest rates inhibiting
           plummeted, going from ZAR 10            these fundamentals may allow                business growth
           to a US dollar on average through       government to dodge the junk bond       •   The impact of severe drought

                                                                                     Africa Conflict Monitor | In On Africa (Pty) Ltd   19
AFRICA WIDE     MONITORING ECONOMIES                                                                                                            Table of
                                                                                                                                                      Contents

                        Johannesburg city centre. Johannesburg’s robust banking and finance centres are the envy of the rest of Sub-Saharan Africa.
                                                                         Photo courtesy Andrew Moore/Flickr

                      Political uncertainly is not listed           from cloaked in the darkness that         •   First world infrastructure
                      because due to the subjective                 South African pessimists believe          •   First world banking and
                      nature thereof, it is less easily             has shrouded the country like an              financial institutions
                      quantifiable than the four points             eclipse in recent years.                  •   Good track record in fiscal
                      above. Surveys sampling members                                                             management and financial
                      of the South African business                                                               discipline
                      community        usually    reflect                South Africa’s picture               •   No default events (on bonds
                      pessimistic results because of                             is still definitely              or loans) since 1983
                      political considerations. Bearing                   shaded by challenges                •   SA remains the gateway to
                      witness to government scandal and                      and crises but is far                Southern African countries
                      being subjected to government                          from cloaked in the              •   Comparative stability in the
                      mismanagement on the ground on                       darkness that South                    supply of electricity
                      a regular basis, business people’s                       African pessimists
                      grumbling is reflected in their                     believe has shrouded                These factors, and not the failures
                      downbeat survey responses.                              the country like an             of the ANC government, are
                                                                         eclipse in recent years.             considered by rating agencies and
                      Away from the trauma of traffic                                                         are the reason that South Africa
                      jams brought on by street protests                                                      has not seen its government
August 2016 Edition

                      and the spectacle of Zuma’s                                                             bonds downgraded in 2016.
                      rapacious doings that fill countless          Economists call them “convincing          The value of a reliable electricity
                      newspaper columns and TV and                  positive factors,” and for South          supply cannot be underestimated
                      radio programmes, South Africa’s              Africa there are six that are of          by an investor desirous of opening
                      picture is still definitely shaded            essential interest to foreign             a factory in Africa. South Africa’s
                      by challenges and crises but is far           investors:                                infrastructure is ‘first world’, and

                20    Africa Conflict Monitor | In On Africa (Pty) Ltd
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                                                                            MONITORING ECONOMIES

           offers quick access to dozens             True, Zuma replaced Finance
           of nearby secondary markets.              Minister Nhlanhla Nene with a                            The South African

                                                                                                                                                    AFRICA WIDE
           Banks dominate the South African          political hack when Nene refused                          Reserve Bank and
           economy, but with their power             to compromise government’s                          successive Ministers of
           they have developed sophisticated         finances. However, the ensuing                      Finance have displayed
           financial institutions essential to       uproar from the public, media and                       admirable financial
           businesses.                               business sector was so deafening                       responsibility, which
                                                     to even the tone-deaf Zuma and                           is why the country
           Self-correction has saved                 ANC that a competent former                             has never defaulted
           South Africa’s economy from               finance minister, Pravin Gordhan,                         on a bond or loan.
           political manipulation and ruin           was soon reinstated in the post.
                                                     The ANC fought to keep state
           A particular item on the list of          spending free-flowing to upgrade                 In July 2016, the International
           South Africa’s convincing positive        Zuma’s farm and anything else that               Monetary Fund (IMF) amended
           factors may seem laughable to             might enrich him, going so far as                downward its 2016 growth
           South Africans who bemoan                 to abrogate the constitution. The                forecast for South Africa from
           government spending on Zuma’s             Constitutional Court ruled against               0.6% projected in May to a barely
           farm and legal bills: “good track         the ANC government, providing                    perceptible 0.1%. The forecast
           record in fiscal management               the type of check on executive                   was touted by economists
           and financial discipline.” And            and legislative excess required                  as more credible than the
           yet, the South African Reserve            for the smooth functioning of any                government treasury’s forecast
           Bank and successive Ministers of          democracy. The Court’s actions                   of 0.9% growth. One reason
           Finance have displayed admirable          were hailed as having saved South                was that the United Kingdom’s
           financial responsibility, which           Africa’s democracy as well as its                (UK) vote to exit the European
           is why the country has never              economy by proving that in South                 Union (EU) could have a negative
           defaulted on a bond or loan.              Africa, the law is paramount.                    impact on South African trade.

                                                                                                                                                       August 2016 Edition

               A group of minstrels dance through Cape Town’s historic Bo-Kaap district for Carnival celebrations. Attractive tourist
               destinations and diverse, vibrant cultures are South African assets that will outlast any momentary leadership crisis.
                                                       Photo courtesy South African Tourism/Flickr

                                                                                                Africa Conflict Monitor | In On Africa (Pty) Ltd   21
AFRICA WIDE     MONITORING ECONOMIES                                                                                                                           Table of
                                                                                                                                                                     Contents

                                                                             2016
                                                                                                                               LARGEST SECTORS BY GDP
                                                                                    AFRICA COUNTRY BENCHMARK REPORT

                                                                     20.3%                      16.8%                  14.8%            13.2%              5.9%

                                                                 FINANCE &                     PUBLIC                 WHOLESALE    MANUFACTURING         OTHER
                                                                REAL ESTATE                    ADMIN                   & RETAIL                         SERVICES

                                                                                                                                   GDP GROWTH RATE

                                                                     5%
                                                                     4%
                                                                     3%             3.2%
                                                                     2%                                     2.2%          2.2%
                                                                     1%                                                                 1.5%       1.3%

                              South
                                                                     0%

                             Africa’s                                               2011                    2012           2013         2014        2015

                             national                                                                             POPULATION AGE BREAKDOWN
                          performance
                           ranked 7th
                                                                                                                            35.6%
                              among                                                                     11.6%
                                                                                                                                                15.8%

                           54 African                                     35%
                            nations in
                          IOA’s Africa
                             Country                                      0-17                          18-24               25-49                50+
                           Benchmark
                                                                          KEY OPPORTUNITIES                                             KEY CONCERNS
                              Report
                                                                 •    Coal, gold, other minerals, oil                          •   Electricity outages plague
                                                                      and a wealth of other natural                                businesses
August 2016 Edition

                                                                      resources                                                •   Significant economic inequity
                                                                 •    Beautiful country with varied                                leading to social unrest
                                                                      environments has well-                                   •   Affirmative action programmes
                                                                      developed tourism sector                                     limiting immigration of skilled
                                                                 •    Constantly improving                                         new workers
                           You can access the full report,            infrastructure and advanced
                             for free, here: http://www.
                          inonafrica.com/download/2995
                                                                      technological society

                22    Africa Conflict Monitor | In On Africa (Pty) Ltd
Table of
Contents
                                                                        MONITORING ECONOMIES

     However, projections have to be borne out by performance.                                           SOUTH AFRICA
     Consequences of unpredictable events always appear. For example,                                      11 August

                                                                                                                                           AFRICA WIDE
     the Citrus Growers Association (CGA), which provides the UK with
     36% of its grapefruit and 27% of its oranges annually, predicts an                   International currency traders
     upswing in exports because the UK will be free of onerous EU fruit                   celebrate South Africa’s municipal
     inspection standards that the CGA says unreasonably blocks imports.                  election       results.     International
                                                                                          investors’ delight with the results
     Self-correction of political and social crises is likely to save the young           of South Africa’s local elections on
     democracy’s massive economy. The positive fundamentals are not                       3 August has become evident, with
     going to disappear soon. For these reasons, investors remain bullish                 the rand rising in value from 15/14
     on the country, and Africa’s other emerging democracies will con-                    to the US dollar prior to the polls to
     tinue to look to South Africa as both a political and economic role                  13.34 a week later, and indications
     model.                                                                               that the currency’s value could rise
                                                                                          even further. The election polling,
                                                                                          which was considered free and well-
                                                                                          conducted – a testimony to the
      ACM ANALYSIS IN BRIEF | South Africa’s strong economic
                                                                                          strength of the country’s 22-year-
      fundamentals eclipse election-year conflict
                                                                                          old democratic institutions – was
           While South Africa’s business community is downbeat regarding the              widely hailed as the most important
           country’s economic viability, rating agencies and foreign financial            non-presidential election since
           analysts, while cautious about South Africa’s political challenges, are        democracy was installed in 1994.
           much more positive. The reason for this optimism is the advanced               The African National Congress (ANC)
           economy’s fundamentals like sound financial institutions, a fiscally-
                                                                                          lost to the opposition Democratic
           responsible treasury and good infrastructure.
                                                                                          Alliance (DA) and other opposition
      Key points:                                                                         groups control of such key cities as
                                                                                          the hotly contested Nelson Mandela
           •   South Africa’s massive market of 54 million people is the gateway          Bay that includes the country’s
               to secondary markets of regional nations and is an ideal location for      automobile-manufacturing hub and
               export-driven investment
                                                                                          the large seaport of Port Elizabeth,
           •   South Africa’s courts, media and public opinion have provided the
               democracy’s self-correcting mechanisms against corruption and
                                                                                          and the capital, Pretoria. The ANC
               mismanagement in governance                                                is also being placed in the unfamiliar
           •   Africa’s emerging democracies seek to emulate not just South               position of having to form a coalition
               Africa’s superior infrastructure but its democratic institutions that      government in Johannesburg, the
               have functioned to keep positive economic fundamentals in place            country’s economic and financial
                                                                                          centre. Prior to the elections, local
                                                                                          and international fear was that South
     RELEVANT READING ...                                                                 Africa’s fabled liberation party would
                                                                                          follow the model of other liberation
          ‘South Africa latest outlook shows urgent need for policy reforms’              parties throughout Africa, growing
       		 The IMF suggests the need to address infrastructure bottlenecks                 fat at the expense of the general
       		 and prioritising reforms that will boost growth and create jobs                 population and national economy.
       		- http://bit.ly/2adg3I9                                                          While the ANC did retain control of
          ‘Twenty years of South African democracy’                                       many key municipalities, the party’s
       		 Freedom House presents the findings of its extensive focus group                political hegemony appears to have
          study exploring citizens’ views of human rights, governance                     been broken, as South Africa’s
          and the political system in South Africa - http://bty.link/41k                  electorate asserted an unprecedented
                                                                                          will for political diversity to meet the
                                                                                                                                              August 2016 Edition

                                                                                          country’s mounting economic and
                                                                                          social challenges. The link between
                                                                                          global faith in South Africa’s economy
                                                                                          and the bungling, corruption and
                                                                                          ineffectiveness that has hobbled
                                                                                          South Africa’s governing ANC party
                                                                                          has been on vivid display following
                                                                                          the municipal elections.

                                                                                       Africa Conflict Monitor | In On Africa (Pty) Ltd   23
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