Investment: Africa Must be Cautious

Chilean democratically-elected president, Salvador Allende was killed because he introduced what was known as the Chileanization of the economy of his country. Chile’s economy was in the hands of foreign companies. Salvador Allende tried to empower the locals to manage their economy. This was his undoing. Another casualty was Patrice Lumumba. He was killed for advocating for his people’s socio-economic supremacy. Along with Allende and Lumumba was Jocobo Albenz of Guatemala who was overthrown in 1954 because he wanted to buy back the land that was owned by an American United Fruit Company (UFCO), to give it back to his landless citizens. UFCO used to undervalue the land so as to pay low tax. When president Albenz wanted to buy the same uncultivated land, UFCO demanded more money than the value declared. When Albenz held his horses, that was his undoing.

History sometimes repeats itself especially when those supposed to understand it well fail to do so. Africa, since independence, has been repeating the same mistakes. Our economies still depend on our former colonial masters. We’re but banana republics producing what we can’t consume and consuming what we don’t produce.

If Africa is to go on with the ongoing diabolic investment, chances are that landless Africans will resort to fighting for freedom afresh. Many African regimes have been singing the song of investment and globalization without any scientific, fair and safe preparations or measures in place. Many mineral and energy companies are landing multi-billion investments in Africa without paying tax or investing in human development.

What is evident in many African countries is the rise of antagonism between poor citizenry and foreign companies which have much influence in the upper echelons of power due to the kickbacks they give to venal rulers. Human rights and environment are gravely abused.

I am not against investment. Omnishambolic and exploitative investment – No. Yes to fair and reasonable investment. Without taking a leaf from the above incidents, Africa is going to cascade even more into neo-colonialism. While rich countries are using their companies to rake billions of dollars from Africa in order to invest in their people, African greedy rulers are selling their people with their resources. We are not allowed even to subsidize our poor farmers or offer social services especially welfare as it is in rich countries. They don’t allow us to do this fearing that the prices of our produce will rise and therefore making it hard for rich countries to buy them at low and exploitative prices as it has been going on since time immemorial.

Source:The African Executive Magazine Oct.,17, 2012.