Cameroon: Ministere des Finances – Communique Radio-Presse (27.12.2018)

Joint Press Release Between the Reserve Bank of Zimbabwe and Delta Corporation: Sale of Products Exclusively in Hard Currency (03.01.2019)

Zimbabwe: Delta Beverages – Payment of Wholesale Prices in Hard Currency (02.01.2019)

South Sudan: President Kiir asks for funding the peace-deal, but will he launder that money too?

Just as the New Years of 2019 is coming and the South Sudanese are working on the R-ARCSS or the Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan, which was reached last year. This has changed the Transitional Government of National Unity, which means the administration in Juba have to evolve, become bigger and also more costly.

That is why the President in his speech on New Years Eve had to speak upon the finances. This is happening as the government of Khartoum are controlling and having more oversight of the Oil Industry. While the South Sudanese are securing their weapons and others imports, as the arms embargo is violated and the same with regional indifferences.

Speaking to the peace party leaders and members of the diplomatic corps at a dinar on the Eve of the New Year, Kiir said: “I also call upon our international partners to help with the necessary finance to implement the agreement,” Kiir also said his leadership is ready to dialogue with groups that are still outside the agreement to take part in it. “My message to you all to those still holding out against peace is that whatever it is, we can find a solution so that all of us participate in the business of building our country.” He also called for cooperation among the parties leaders to protect the peace from collapsing. “I urge all of you to be patient, let us work together and not allow this peace to get out of our hands again.”” (Memoscar Lasuba – ‘President Kiir urges intl community for financial aid’ 02.01.2019, link: http://www.eyeradio.org/president-kiir-urges-intl-community-financial-aid/).

We know, why the President is asking for more money to implement the Peace Deal. As the South Sudan government will be expanded and get more offices, as if they are supposed to follow the signed agreement. It will be 4 Vice Presidents and 4 Major Clusters, where all parties of the agreement have their share. Also, the added strain of Central Government, Council of Ministers, State Government and other institutions who needs funding. The excessive size of the government, combined with the cost of funding it. It needs fresh financial funding of it, so that it can operate the TGoNU and the R-ARCSS.

That is why the President comes out with this, as the crisis is averted with this deal. Even as there are plenty of obstacles, there are plenty of problems ahead. Not just the allocation of funds, the laundering of money through back-channels as The Sentry has proven last year. But also, the mistrust and possible Ego’s of all parties. They all want to eat and not talk. They are used to settle the score with guns and not with negotiations. That is why, even as the months goes by.

All of this is surely to use the peace deal as a pawn, to get the needed funds. While the TGoNU should be focused on policies and secure the peace. Not just ensure, that all parties get offices and get their cut. That will not be sustainable. There is need for long term functions.

The President should consider this, the same is with the rest of the parties involved. They should ensure steady revenue without begging foreign donors. Who are seeing with the The Sentry and with UN reports, where the government and their misuse of funds. Where they are not respecting embargoes or even acting credible with funds they have at this point. Why should the international donors trust them now?

Because, they should show some progression on that part. Not only signing deals, while laundering money through Nairobi. Peace.

Let me take a sledgehammer to the Japanese dream of President Kenyatta!

Yesterdays Round-Table Interview with President Uhuru Kenyatta, really shows some PR Stunt out of this world. He thinks he can spin it beautifully on live-broadcast. Where the President can attribute the difference between a thriving economy and his own. Even if the Japanese has higher loan-grade of the GDP, they are exporting much more and have such an advanced economy compared to the Kenyan. This is well-known, but the President tries to flatter himself and ask of the journalist to speak like an economist. Well, that is to different professions, maybe, let economist David Ndii explain, before the PR stunt is shown yet again. Shall we?

David Ndii explaining:

Kenya’s SGR, Uhuru Kenyatta’s erstwhile legacy project, has turned out to be the bugbear that this columnist among others warned that it would be. Its freight capacity is a third of what was promised, and it cannot be competitive without a hefty public subsidy. Uhuru Kenyatta’s administration has increased Kenya’s foreign debt two and a half fold, from US$9 billion to US$25 billion. The railway alone accounts for a third of this increase; another third is by sovereign bonds for which the country has nothing to show” (David Ndii – ’CHINA’S DEBT IMPERIALISM: The Art of War by Other Means?’ 18.08.2018, link: https://www.theeastafricanreview.info/op-eds/2018/08/18/chinas-debt-imperialism-the-art-of-war-by-other-means/).

Here is Mr Masai’s conversation with the President:

President Kenyatta: Do you know what the debt of the Japanese government is?

Mr Masai: I’m not really concerned about Japan.

President Kenyatta: Do you know what the Kenyan debt is?

Mr Masai: As I said, right now it’s something between Sh4.5 to Sh4.8 trillion

President Kenyatta: No, no, no as a percentage of the GDP [gross domestic product], talk like an economist.

Mr Masai: 56 per cent of GDP

President Kenyatta: What is Japan’s debt?

Mr Masai: I’m not in Japan so I’m not interested in Japan but Kenya

President Kenyatta: Japan’s debt is over 100 per cent of the GDP” (Evelyn Musabi – ‘Why Mark Masai is trending after Uhuru roundtable interview’ 29.12.2018, link: https://www.nation.co.ke/news/Why-Mark-Masai-is-trending-after-Uhuru-roundtable-interview/1056-4913816-q3k0d/index.html).

As we have seen how a renown economist plays the Kenyan economy and how the President does it. We can really see how this plays out. The President are right about the levels of debt for the government of Japan, but that is domestic. While the growing debt of Kenya is foreign and to other nations. Which is a whole another level… Where the carefulness of paying back should be key for the Jubilee.

Also, the Kenyan is the107th largest export economy, while Japan is the 4th largest export economy. Therefore, the dynamics of the economies are different. Just by the mere recognition of this, should make the President shiver to compel them even. Just like the GDP per Capita is $3.16K in Kenya, while in Japan it is $42.3K. The last measure to prove how wrong it is, the ECON Complexity, the Kenyan is at 89th of 214, while the Japanese is 1st of 214. These numbers are all taken from the Observation of Economic Complexity (OEC). Therefore, they are saying a lot and shows why the President shouldn’t compare these economies and the loans they have. Especially, when you see the significant differences.

Kenya is miles away from Japan. They are not even close. They are so far apart, that the Kenyan better beg the Japanese advice to build their economy and not just borrow to build a railway. Peace.

Zimbabwe: ZDHA Press Statement on the Industrial Action (27.12.2018)

BoU Scandal: Bank of Uganda Deputy Governor Louis Kasekende defends himself (18.12.2018/19.12.2018)

Jubilee signed off the KPA assets if they default on the loans to China Exim Bank!

The Office of Auditor General letter to Kenyan Ports Authority on the 16th November 2018 has said something striking, but nevertheless something I anticipated, because they stated a fact that everyone should recognize. That the Chinese is not giving toll-free loans without any collateral. In this instance is the loans for the Standard Gauge Railway, which have been a massive White Elephant and is just a doomed project from the get-go. Unless, the Jubilee are able to grow money on trees.

However, the letter from F.T. Kimani to the Ports Authority states that: “The payment arrangement agreement substantively means that the Authority’s revenue would be used to pay the Government of Kenya’s debt to China Exim bank if the minimum volumes required for consignment are not meet as per schedule one. The China Exim bank would become a principle in over KPA if KRC defaults in its obligations and China Exim bank exercise power over the escrow account security. The KPA assets are exposed since the Authority signed the agreement where it has been referred to as a borrower under clause 17.5 any proceeding against its assets by the lender would not be protected by sovereign immunity since the government waived the immunity on the Kenya Ports Assets by signing the agreement. The agreements is biased since any non-performance or dispute with the China Exim bank (the lender) would be referred to arbitration in China, whose fairness is resolving the disagreement may not be guaranteed. The authority did not disclose these guarantee in the financial statement” (Kimani, 16.11.2018).

If you read it, what it states is very clear, if the growing debt to China is not paid on time and defaulted, it means that the Port Authority has to give away its assets or collateral to the China Exim bank, as it is stated in its agreement. This is similar affairs happen in Sri Lanka and now is viable in Kenya. As the Mombasa Port might become an asset for the Belt Road of China to earn back their borrowed funds.

They Government of Kenya, should be worried about when signing the loans from China Exim bank, but they wanted the glory of the giant infrastructure project. Not the fiscal or financial responsibilities, if not the consequences of not paying back the funds. The Chinese has clearly safeguarded the investment with the fine print. Stating the assets of the Port Authority and by this. Securing a vital and important port in East Africa. As they got a nice piece, if the Jubilee starts defaulting or if the next President fails to live up to responsibility that Kenyatta made for him.

That the Kenyans should be worried, because the Chinese is not forgiving, when concerning their money. That is known, the public should know and should anticipate this. As this is a forewarning to the possible aftermath. That has been seen elsewhere and might come to shores close to you. Peace.

President Museveni letter to Hon Matia Kasaija: “Re: Massive Tax Evasion and Concealment of Rental Tax” (23.11.2018)

Reserve Bank of Zimbabwe: Outcome of Investigation of Allegations against certain Senior Reserve Bank of Zimbabwe Officials (10.12.2018)