AFRICA NEWS DIGEST
The UN Development Program Intervenes To Help Somalia
The UN Development Program's Somalia office is launching a program to formalize and legalize Somalia's largest money transfer system, Al Barakaat, five months after the U.S. shut it down, for alleged links to al-Qaeda. According to the Kenyan paper the East African Standard of April 30, the UNDP project comes amid growing international concern that the U.S. has no evidence that Al Barakaat had links with the al-Qaeda network. The U.S. labelled Al Barakaat "the quartermasters of terror" when they put it out of business, but U.S. officials are reported to acknowledge that the evidence of Al Barakaat's backing for al-Qaeda is minimal, if not non-existent. Some European countries that assisted in the operation, also say proof of a terror link has not been established. So far, only four criminal prosecutions have been filed, and none involve charges of aiding terrorism.
Concerned that the closure of Al Barakaatwhich is also the country's largest private-sector employermay cause a new humanitarian crisis, the UNDP plans to work with governments and Somalia's remaining money transfer and remittance companies "to ensure that internationally recognized procedures are followed in the flow of money in and out of the country." Sonya Lawrence Green, an information officer at UNDP Somalia, said the UN agency will give technical support to remittance companies, currently only two, to comply with standard financial regulations. "The humanitarian impact of the closure has been great," Green said.
IMF and World Bank Putting the Screws on Kenya
An April 26-27 meeting of the IMF and World Bank in Mombasa, Kenya resulted in a stand-off between the international financial institutions, on the one side, and at least 140 Kenyan members of Parliament, who rebelled against the demands of the "donors." The donors are demanding that the Donde Actwhich seeks to place controls on bank interest ratesbe withdrawn, and are withholding funds until that, and perhaps other, "conditionalities" are met.
MPs from both sides of the House were categorical that interest rates need to come down, and pledged their support for the Donde Act. No amount of lobbying by the government would deter them, they vowed. Kandara MP Joshua Toro challenged Central Bank Governor Nahashon Nyagah to resign if he were not ready to implement the Donde Act. Toro said that the Governor, who was not at the meeting, had announcedthat the law would never be implemented as long as he was at the helm. Toro accused the IMF of subjecting Kenya to suffering through its "misplaced" policies, which he equated to neo-colonialism and slavery. Quoting from Alan Paton's famous novel about South Africa, Cry, the Beloved Country, the MP told donors: "The IMF and the World Bank want to help the underdog, but they still want to dog to remain under."
Kenyan Vice President George Saitoti said the policies demanded by the IMF and World Bank came straight from Washington, without the involvement of the nation's Finance Minister, who was, however, expected to implement them.
Gatanga MP David Murathe accused the IMF and World Bank of being hypocritical in dealing with Africa governance issues. Webuye MP Musikari Kombo asked the two organizations not to push Kenya's Attorney-General into publishing "shoddy" bills. Citing the Kenya Anti-Corruption Bill, which was rejected by Parliament, Kombo said such laws must be homegrown. He promised the donors that bills drafted at the behest of donors, and not in the nation's interest, would be rejected by Parliament.
Cabinet Minister Raila Odinga accused the two institutions of constantly shifting the goal-posts, as they looked for reasons not to lend to Kenya. "The issue is not about bad governance, because is the country is well governed. But the IMF and World Bank have their own reasons for denying us aid," he said.
Ford-Kenya corporate leader Michael Wamalwa told the lenders that if they want to help Kenya revive its economy, then they should focus on the agricultural sector and assist farmersan area they have done nothing to help.
Zimbabwe Declares 'State of Disaster' Because of Food Shortages
On April 30, Zimbabwe declared a "state of disaster", because of food shortages. President Robert Mugabe announced hopes of stepping up emergency food aid to about 7.8 million people who need food relief (out of a total population of 13 million). Global help has been low. The week of April 22, the UN World Food Program announced that it had received only a third of the 117,000 tons of food it needs to feed the hungry in Zimbabwe. The nation's grain output fell by 50% this crop season. Maize rationing is underway in communal areas; some households are limited to sharing a 110-lb sack of cornmeal each month.
In Southern Africa more broadly, as many as 2.6 million people are already depending on the UN World Food Program for sustenance. The nations, with a total combined population of 54 million, include Lesotho, Malawi, Mozambique, Swaziland, Zambia, and Zimbabwe. The Program's director for this region, Judith Lewis, toured the area in late April, reporting that aid will have to at least double. Five million people could face starvation. The crisis could be as bad as that in 1992, when 18 million people lacked enough food, after severe drought. A UN response plan is being drawn up, to be made final by early June.
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