Tabaski 2010

Tuesday night / Wednesday morning. The day of the big ‘fête de Tabaski’. I’m in a bus with 34 other people underway to a small village some 2 hours outside of Dakar. The trip in itself, as the majority of the Senegalese are at the same time trying to get out of Dakar to visit their family for this religious holiday, takes more than 6 hours, as Dakar’s famous gridlock reaches a peak. Even now, people are still ferociously negotiating the prices for the sheep who will not see the light of the next day, adding to the bustling and nervous atmosphere on and next to the road.

I don’t mind the long trip though, and as Placebo’s ‘Bitter End’ pops up on my iPod, it brings a smile to my face: “as you’re walking away, reminds me that it’s killing time… on this fateful day”. I’m counting sheep to fall asleep, as I’m not sure there will be many left after tomorrow.

The day of Tabaski, I celebrate with my friend and his family in his village close to Diourbel. From the get go, I feel immediately at home, as everyone from the family and the neighbourhood comes to greet me and welcome me into their homes and the neighbourhood.

First order of the day is the inevitable slaughtering of the sheep. I was half expecting it to be a massacre, but I’m surprised to find the animals already dead when I arrive, with only a minimum of blood around it. Skinning and preparing the sheep then takes up the good part of an hour, as jokes are being told and stories are being shared. I was not expecting to be this comfortable around the sheep and the machetes/knives., yet I am. A moment of sheer beauty arises, when, while skinning one of the sheep, my friend points out something gooey to me between the skin and the bare muscle: “this animal was beaten by its owner”, he says. His friend, helping him in this whole preparation process, replies something in the line of: “Yes, some people treat their animals badly. Poor animal.”

The following five minutes, no one says a word, while they continue with skinning and cutting up the dead sheep. The silence says enough.

The rest of the day consists of eating and resting, followed by a walk around the village to greet everyone, and more eating and resting. Everyone can drop in everywhere and partake in a meal. This is real hospitality and openness towards friends, family, and neighbours. Having grown up in Europe, this is something that I still, even after my time in Mozambique and Senegal, find wonderful and incredible. More than once, I hear the people shouting out whether the toubab (white person, aka me) is eating enough, while they continue to push more meat my way. Also when I ask whether I could contribute in any way possible – helping cooking, buying more onions, … - it immediately gets refused because I’m not even a guest but a part of the family.

After having said my thankyous and goodbyes – smiles, hugs and handshakes – I take an early bus back to Dakar the following day, but not before the family manages to give me another bag filled with sheep meat – in case I get hungry underway.

Wonderful.

(pictures to follow shortly)

Belgium makes the CNN news... and it's positive!

Hey all,

Another short entry, and for once it's not about development or developing countries. It's been a while since the world press has released a positive news item about my conservative home country Belgium - especially in the midst of a political crisis and another church abuse scandal - so I just couldn't hold this from you.

Therefore... the article in Dutch or English. Or just the Youtube video.

It's definitely worth the 5 minutes you'll spend reading it.

L

Rural Energy Foundation in action

Hey all,

No article written by yours truly today, but I am posting a link to one that deserves a lot of attention - i.e. a short piece on the work the Rural Energy Foundation does in 9 countries all over Africa.

Proud to be part of this team.

Luc

Joe le Taxi

A recent report from Revue Magazine states that the country of Senegal does not even make the top 20 of growing Sub-Saharan economies, based on estimations for the period of 2007 until 2010. While part of the explanation can be found in the very strong growth of many other countries (Mozambique and Ethiopia come to mind), it remains surprising that the country that should be considered as being the West African hub is growing at a much slower pace than its neighbours.

Add to this the unemployment figures, which indicate that up to 50% of the population are currently on the outside of the job market, and the picture becomes even more grim. The rising unemployment in turn has a huge impact on rural-urban migration, with in particular the young unemployed moving to the big cities in search for prosperity. Unfortunately, jobs are few and far in between in the bigger cities like Dakar. Many, therefore, have to resort to jobs that are either in the informal economy or to those that barely make them a living. The clearest example in Dakar: taxi drivers.

It is impossible to walk the streets of Dakar and not hear the constant honking of taxi drivers trying to get your attention. At any given time, taxis outnumber regular cars on the streets of Greater Dakar. Taxi drivers come in different sizes and shapes, but can roughly be divided in two groups: those organised in associations on the one hand, and the lonely one-man business on the other hand.

The taxidrivers that are together in any form of association do this to protect themselves from disruptive outside influences, like these one-man taxis who, with the right connections and some spending capital, can be in business in less than a day. These organisations also pride themselves for not just being “conducteurs de taxi”, but what they have called “taximan”. The latter implies that they grew up in Dakar and know the street patterns and names by heart - this last bit in particular proving to be a serious problem with the majority of taxi drivers.

On a normal day, a taxi driver will make around 10000 CFA, or 15€, per day, which might seem reasonable at first sight. However, once you deduct from this the ever increasing fuel costs, plus the inevitable weekly repairs to their cars that seem to defy the laws of physics by still running, and you end up with way less.

Moreover, a big number of taxi drivers don’t actually own their own taxi. They rent them from a ‘chef’, for a price of around 10000 CFA... yes, about what they can earn on a normal day’s work. This entails that taxi drivers are actually constantly at risk of running a loss, which makes their hard bargaining (especially when foreigners ask for a taxi) more understandable and their never-ending enthusiasm to talk with new customers even more admirable.

“Le dieu est grand. Il faut rouler.” - Taximan M.

Luc

Go West

“Go West, life is peaceful there.” At least that’s what The Pet Shop Boys sang two decades ago. And from the looks of it, the newly erected statue in Dakar, Senegal, to celebrate 50 years of independence – the Monument of African Renaissance – confirms the opening line: looking over the ocean as far as the eye can see, the statue is aimed straight at its more famous sister, Lady Liberty. However, the monument representing ‘freedom’ seems to attract more criticism than praise.

Upon arrival at the international airport of Dakar, it is hard not to stare at the gigantic bronze monument. With 50 metres in height, the statue is both more expensive and bigger than the Statue of Liberty, to which it is also pointing towards. The monument is truly an economic monster in a country where around half of the population still lives below the poverty line. It’s therefore quite understandable that more and more people are coming out, openly criticising the monument and its creator, the ruling President Wade. Depending on who you talk to and which group they belong to, the critiques take on a different form. A small overview:

• Labour: Despite the incredibly high level of unemployment – near to 50% - it was opted to bring in North Korean workers for the construction of the monument. That the statue is located in one of the poorest of Dakar’s districts, Ouakam, just adds insult to injury.
• Finance: In total, the monument will have cost close to $28m, a sum the President’s entourage hope to retrieve by increased earnings from the tourism sector. Because the President came up with the original drawings for the monument, he has decided to claim 35% off all income on the ground of intellectual property rights.
• Religion: The statue has endured much criticism from religious corners as well. The woman in the statue is wearing close to nothing, with especially the naked legs a point of criticism for the largely Muslim community. Moreover, the President had even likened the statue with the image of Christ, only to take it back after huge protests and a public apology.
• Politics: The monument is supposed to symbolise ‘freedom’, following the example of the Statue of Liberty, though it finds it architectural inspiration in communist art. Furthermore, it is being whispered that it is more representative for the power of the Senegalese government than for the freedom of its people…
• Gender: The woman in the statue is clearly being led by her husband, a preconception that does not correspond with African reality. Besides being branded as too expensive, not useful, and down right ugly, the monument has also received the label of sexist and “un-African”.

To be continued…

Luc

Infrastructure, part 1: Transport

In one of my first more serious posts back in September I wrote about how I experienced infrastructure as one of the key factors in the development of a country which could be influenced in a relatively short timeframe. (In the long run, I discussed back then how I personally saw education as the key factor in the quest towards growth - both economic and social - though I will elaborate on this topic in a couple of weeks time.) 

I recently read that in Belgium, caused by the persistent snow and below 0 temperatures, there was at one point about 1000km of traffic jams spread all over the tiny country. This clearly underlines the importance of having a well-established, sustainable and balanced transportation network - which Belgium currently somewhat lacks - and it got me thinking about the state of transport facilities in Mozambique, several times bigger than Belgium, and several times poorer.

Mozambique is huge, and the roads connecting the three biggest cities - Maputo, Beira and Nampula - are for a large part in surprisingly good condition. Traveling between major cities usually entails a trip of more than 1000km, equal to more or less 20h on the road. Still, as long distance busses leave at dawn, they usually make it in a day. There are still some parts of the main road that are in bad to horrible condition, though numerous construction projects - all foreign, almost all Chinese - are under way to improve and expand the road network. (On a side note, I must add that too many of these road improvements are of very low quality, resulting in even worse road conditions less than half a year after completion of the project.)

However, these improvements serve to hardly anything when the means of transportation are quite simply below par (understatement!). The fleet used for public transport consists - bar the odd private company - out of second-hand, third-hand, fourth-hand cars, or probably an even bigger number. Bus breakdowns are therefore just part of almost any trip, so that a 20h bus ride could just so easily turn out to take double the time.

(Mozambique is one of those places where cars come to die, after a successful life in Europe or the States.)

Railroads are an even bigger problem in Mozambique. The country possesses three major harbours (in Maputo, Beira, and Nacala), and in Malawi, Zambia, and Zimbabwe, it borders three landlocked countries. A recipe for success, you might think? Unfortunately, not really... The lack of a decent railway connection between the harbour of Beira and the heart of say Zimbabwe, means that mass transportation of goods becomes a huge hassle. Not surprisingly, most of the goods in Zimbabwe are therefore supplied from South Africa, even servicing large parts of Zambia and Malawi.

Not surprisingly, and nothing too soon, linking these harbours with more centrally located areas by improving the existing railroad has moved up the development of infrastructure agenda, with improvements on the 250km stretch from Beira to the border slowly getting under way.

For me, a well established and sustainable transport infrastructure is therefore a necessary component of a successful growth strategy. However, I don’t see it as a cause of growth, only as a facilitator in the positive case and a potential stumbling block in the negative case. Clearly, just building roads is not enough: you need companies to manufacture/buy/operate trains and busses, and a population that can and wants to attribute some part of their (limited) disposable income by using it and paying for these services.

One final example from Maputo serves as a clarification: the road linking Maputo with the industrial hub of nearby Matola is in excellent condition, though people using it are subjected to a toll gate fee. However, alternatives are available - roads through the peri-urban areas in bad condition, with long traffic jams and frequent accidents. So people do have a choice, and clearly the faster, safer but more expensive option is more then valued by a large part of the society (mainly those who are in the position to allocate some of their income to paying the fee).

Coming up: ‘Infrastructure, part 2: Technology’

Where did all the middle-incomers go?

Welcome back.

And as promised, a weekly contribution. This week I’ve based my entry on an observation/conclusion I made after a discussion with a friend. Enjoy, and as always, please comment.


The observation is the following: ‘In a society like Mozambique, both the cheapest and most expensive products are basically in no need of support what so ever, while the sales of goods commonly labeled as middle class are hardly taking off’.

The really expensive and really cheap products hardly need any help in getting sold: big solar pumps, flat screen TVs, and laptops are being sold to people who need them and who can afford them. On the other hand, the very cheap products need no (or hardly any) support either: small car components, light bulbs or lanterns are all readily available in a multitude of shops, all doing very good business.
In between these two groups of products, we find products that are usually associated with middle class or medium income groups. However, for these products (I’m thinking small black and white TVs or ordinary desktop computers) it seems to be really difficult to find a working product-market-combination.

When looking at the type of products that I’m involved with on a daily basis, the above statement passes the test. In effect, the cheapest of products (solar lanterns and phone chargers) hardly need a push in the form of marketing. People know what these products can and cannot do, plus they can afford them. At the other end, solar water pumps, solar water heaters or big systems for hospitals and schools are equally being sold without any major difficulties: the people who are in need of these products know where to find them, know exactly how much they cost, and are able and willing to pay that amount.
However, the products in between – small solar home systems for lighting and perhaps a radio and b/w tv – are in dire need of market support. In lack of a middle class, the target audience – the people falling in the first category of small and affordable products – first has to be convinced that this is the product that they should be aspiring to buy, after which an even bigger hurdle awaits in the form of actually financing the product. (Regarding the latter, see my entry of February 1st)

Still, who doesn’t like a challenge?

Luc.

It's Raining Banks, Halleluja!

Hi everyone,

I know I know, It’s been a while. But… after celebrating Christmas and the New Year’s with friends and family, and enjoying two weeks of training and meetings in Zambia, I’ve settled back into the rhythm in Mozambique. And more importantly for all of you: the blog is back, and this week the topic is Finance.

On my return to Mozambique, unfortunately, I ran into some financial problems myself (creditcard blocked, uber annoying), though everything has been solved now. Still, it made me realise once more how big a role financial institutions play in the global system, and the huge potentially crucial role they can play in developing countries.

For me personally, it was simply frustrating knowing that I had sufficient funds on my account, but there was just no easy way of accessing it. In Mozambique, a similar problem is making it more difficult for people and for the country to develop: there is so much potential capital here (ideas, skills, capacities, business opportunities) which simply cannot get unlocked or unleashed because of the numerous of stumbling blocks people face day-in day-out.
The biggest stumbling block I see at the moment – the topic of the week, surprise, surprise – is the lack of a good connection between on the one hand the enormous amounts of people who either want start-up capital or want to deposit their savings, and on the other hand the plethora of banks and other financial institutions who have branches in even the smallest of villages. Here in Chimoio there are no less than eight different banks (including two microfinance institutions) which all have offices on the main street which stretches on for less than a kilometre. Plenty of opportunities to acquire a loan, or deposit your savings, one might think.

Think again. For the average Mozambiquan, it still remains difficult to even open an account, partly because of the stringent preconditions banks require from potential customers – a long waiting period, general costs when opening an account, depositing a minimum amount, having an officially registered address. And how difficult it may be at times to open a bank account, it’s nothing compared to the countless procedures that come about when trying to successfully close a loan.

In sum, the financing supply is definitely present – somewhat overrepresented in my opinion – but at the moment it just isn’t matched with the equally big financing demand. This explains why the numerous financing options and credit schemes for the poor just haven’t taken off as expected (with the odd exception).

Finally, I would like to briefly describe an example from Zambia, where they have tried to avoid this finance-matching problem through the “lay by” principle. On request of the client, the retailer/shop owner can allow the client to pay in instalments, and the client will only be able to take home the product or system once the total sum has been paid over a certain time period. This way, the retailer carries basically no risk – with the exception of him safeguarding the paid advances from the client – and the risk is carried entirely by the client. The client actually just opens a savings account with the retailer, where he wants to buy an expensive product (most probably within a certain time period).
As of yet, I haven’t come across this innovative system in other countries, and for me some questions still remain unanswered – e.g. I would prefer to keep my savings at home if I couldn’t open a bank account, rather than give it to a retailer in good trust. Still, this second option is growing in popularity in Zambia.

To be continued.

Luc

Almost back

Just like its writer, this blog has enjoyed some well-deserved rest. We'll be back by the end of the month!

yours

luc