Spirituality of Investment

During this festive season, when the world is celebrating the birth of a savior and redeemer, Jesus Christ, it will be befitting that we retrace and dedicate his ethos with regard to investment and philanthropy. In articulating the aforementioned the overarching question shall be, is there any relationship between investing and spirituality? The following is extracted verbatim from the unpublished work of Robert Mudzvova entitled, Investment World Demystified©.

The birth of Jesus Christ in Bethlehem

At face value, one would be forgiven to think that spirituality and investment are completely incompatible. The rich are seen as the curse for the poor. Many rich people mistakenly think that the poor are responsible for their impoverishment. The struggle between the poor and the rich started with the advent of capital. There are certain examples I have given in this book which amplify the “heartless” of the rich and the vulnerabilities of the poorest of the poor.

The struggle between the poor and the rich was therefore the subject and scope of the great essay by the godfather of philanthropy, Andrew Carnegie called the Gospel of the Wealth, of which the following was his submission:

“This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; to provide moderately for the legitimate wants of those dependent upon him; and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which, in his judgment, is best calculated to produce the most beneficial results for the community--the man of wealth thus becoming the mere agent and trustee for his poorer brethren, bringing to their service his superior wisdom, experience and ability to administer, doing for them better than they would or could do for themselves.”

To Carnegie and indeed all the Carnegiests the world over, the rich will, “…but a trustee for the poor; entrusted for a season with a great part of the increased wealth of the community, but administering it for the community far better than it could or would have done for itself.”

However, the theme of this chapter is to draw parallels between spirituality and investing. Were the greatest philanthropists’ motives out of the good of mankind or the fear of hell or both?

The work of Carnegie is drawn from Biblical texts and there are several percepts to support this, “….Angels (in heaven) derive their happiness, not from laboring for self, but for each other”. And the basis for his philanthropy could have been motivated by Jesus Christ himself, when Carnegie asserted that laboring for the good of our fellow human beings was, “the essence of his (Christ) life and teaching.”

Andrew Carnegie, the godfather of philanthropy 

Carnegie laid the foundation of reconciling between the rich and poor by explicitly highlighting the guidelines for “repatriation” of the wealth accumulated by the rich to the poor. The basis for his thoughts and of course, his deeds, was that the rich should, where it is practical to do so, supervise and monitor the distribution of their wealth to the poor, using the wisdom and experience they exhibited when they were accumulating their wealth.

The profound ideas of Andrew Carnegie were indeed applied religiously by John D. Rockefeller Snr. of Standard Oil fame together with his son, John D. Rockefeller Jr. and ably assisted by Fredrick T. Gates. Rockefeller foundation was arguably the first philanthropist organization to be involved in a world-wide organized philanthropy. The main objective of the foundation was and is, “To promote the well being of mankind world-wide.” To the Rockefellers and all those that have benefited from their good cause, the essence of spirituality is abundantly evident.

These were rich servants of God, who had good intentions about the generality of mankind, particularly the poor and the vulnerable, for their wealth came from business acumen and power of investing and not from thievery or acts of evil.

Perhaps the greatest fear of hell was shown by Warren E. Buffet, in Berkshire Hathaway’s 2002 Annual report, where he said, “...Like hell, it easy is to enter and almost impossible to exit.” But it is true to assert that, he who fears hell is in essence obeying the teachings and deeds of Christ. Buffet in the same annual report, on giving his thoughts on corporate governance and corporate disasters which came due to lack of it, he went deeper into the scriptures when he referred to Jesus Christ’s teachings, who in Luke 16:2, said “Give an account of thy stewardship, for thou mayest longer be steward”

So it can be seen that from Carnegie, through to Rockefeller to Buffet and indeed to Bill and Melinda Gates, the notion of investing is evidently linked to spirituality. It is therefore not an irony that Andrew Carnegie the godfather of philanthropy was the second richest man in the world during the peak of his investing career only second to John D. Rockefeller Snr, the one who popularize the idea of wide scale philanthropy. This was in the late 19^th century and early 20^th century.

A youthful John D. Rockefeller Sr. of The Rockefeller Foundation 

 Today, Warren E. Buffet the greatest investor in living memory and indeed the greatest philanthropist of all time has committed to handover the greater part of his wealth to the Bill and Melinda Gates’ foundation, arguably making it one of the biggest foundations in the world. At the time of committing his wealth to the Gates, Warren was the second richest man, only second to Bill. These great investors had deep rooted beliefs in the teachings and deeds of Jesus Christ and that they were also rich spiritually.

In the Zimbabwe context, there are many philanthropists who have done a sterling job of assisting the poor. Jairos Jiri, for example, opened his house to the physically challenged and today his name is synonymous with empowerment of the physically challenged. We continue to encourage those who are taking care of the orphaned, the widowed, the elderly, the sick, the physically challenged and the poor that they continue on this path, for it is proper and fruitful. God will bless them abundantly. Jesus Christ encouraged us to help the poor and mentioned several times that poor have a right to the Kingdom of God.

Jairos Jiri, Zimbabwean philanthropist who empowered  many physically challenged people 

Giving generously to the vulnerable is as rewarding as successfully reaching the apex of Mount Everest. The fulfillment got is worth it. It is a legacy for real investors to leave for future generations and this shall not deplete their wealth, but shall usher new opportunities for so many investors to flourish and indeed improve the living conditions of mankind.

We thank most sincerely the visitors and readers of this blog. Together we are community wishing and hoping for the betterment of the suffering humankind. Going forward and God willing, these wishes and hopes shall be concretized into tangibles to endure any form of turbulence and machination from the wicked.

Have a Merry Christmas and a blessed and prosperous 2013

God Bless.

I thank you!

What Africans Really Want - Simple but Effective Technologies

Technology is known to be a game-changer when it comes to development. The industrial revolution which saw the complete transformation of agricultural and manufacturing industries in Britain and later in Western Europe, North America and Japan was premised on steam engine technology. That technology enabled a great leap forward of the human race, through enhanced productivity, as man was able to capture and unleash immense energy stored abundantly in water and coal.  The technology gap is a critical factor that explains the difference between economic development and prosperity between the developed and developing countries.

Today rapid technological advancement continues to take place in high income and middle-income countries, while insignificant technological progress is taking place in low-income countries.  This has been the case for centuries, thus condemning citizens of low-income countries to perpetual poverty. Anyone interested in solving the challenges of poverty, hunger and disease in Sub-Saharan Africa should boldly come up with strategies of reducing the yawning technological gap currently existing in the region. It’s true that in this part of the world people lack access to food, reliable electricity, clean water and sanitary facilities, health facilities, reliable transport, enough clothes, including shoes, stable and affordable broadband etc.

There are a lot of suggestions on how this gap can be plugged. Some advocate for technological transfer mechanisms, which allows the sharing of risks and rewards between the technology developer and the recipient country, institution or company. Technological and innovation diffusion proponents also argue that over time an innovation or technology can be passed to all members of the world community, subject to demographic and cultural factors. The other way is for less technologically advanced countries to just import the technology for production. Thus a country in Sub-Saharan Africa would import some earth-moving equipment from a manufacturer in a developed country. This is, however, very costly to Africa because the resources expended are just too much and leave these communities poorer. The foreign exchange used to import these pieces of technology could be used to solve pressing issues like the provision of basic services, including disease prevention and cure. Again the terms of trade are such that the poor countries are losing out. Great amount of raw materials are shipped out, at low prices, determined, it would appear, by the manufactures of the equipment, and not by the producers of the raw materials. When the equipment, made from the same materials bought at rock-bottom prices, and in some cases looted from Africa, is exported back to Sub-Saharan Africa, the cost to the importing countries is often exorbitant, especially in light of available budgets. The premium of value addition offshore is close to profiteering, from the eyes of consumers of technology in Africa.

SOLUTIONS:

Africa today is clamoring for simple but effective technologies across the whole spectrum of life. The technology should talk to indigenous knowledge systems and environmental issues. In fact, the future of Africa lies in these technologies. They are the foundation of further technological development which shall see the continent pushing farther the boundaries of poverty, hunger and disease. So what kind of technologies are we talking about, and which Africa really wants?

1.    Water harvesting technologies- these enable rural, impoverished communities in dry regions to harness the little precipitation they receive to increase the resilience of their food and income-generating projects.

2.    Irrigation technologies- After the water has been harvested, how can rural farmers use the water in the most efficient way possible to increase productivity and income in cost-effective manner?

3.    Water purification technologies- these enable communities to purify water for consumption to reduce water-borne diseases like cholera, dysentery etc.

4.    Food preservation technologies- to assist the rural farmers to preserve agricultural produce, including fruits for longer periods.

5.     Food processing technologies- to add value, rudimentary as it may be, to the produce such that the income generated from their endeavors is enhanced.

6.     Crop and animal breeding technologies- to increase the productivity of crop and animal varieties.

7.    Aquaculture technologies- to enhance fish production to secure a sustainable source of protein supply to the rural and urban poor.

8.      Energy-efficient technologies- these provide energy for the least cost possible to the environment and users, utilizing renewable sources to stem desertification and other effects of climatic change.

9.    Waste management and recycling technologies- to deal with a menace of litter in urban areas and protect the environment and people from pollution.

10.  Farming and mining technologies- motorized equipment for tilling, cultivating, harvesting and storing crops, and simple and effective mining equipment which reduces the siltation and pollution of rivers.

11.  Technologies for Mosquito Mass Destruction (TMMD)- simple, but effective technologies for launching a frontal attack and totally eliminate Anopheles Gambiae in Africa.

12. Latrines and sanitary technologies- to arrest the spread of fatal diseases like cholera, dysentery, typhoid etc in densely populated areas.

13.  Cotton, wool and silk weaving technologies- produce basic garments to cover one’s body, with further processing for those who can afford.

14.  Synthetic fiber technologies- to accelerate the access of people to new clothing, including shoes, and not to rely on the benevolence of others from developed countries, who currently donate old clothes, including undergarments to poor countries.

15. Hide tanning technologies- to process hides from abattoirs for manufacturing of basic   leather products for local consumption and for exporting the surplus, processed products.

16.  Motorized transport- to efficiently move both people and cargo, especially bulky agricultural produce to markets and mineral ore to the processing zones.

17. Construction technologies- to enable people to build decent, yet cost-effective accommodation.

18. Pharmaceutical & health technologies- to harness the indigenous knowledge systems in medicine passed from our forebears to solve health care challenges.

19.  Information and Communication Technologies (ICT)- for conducting research,   e-learning, e-commerce, e-health, e-government and other critical sectors to enhance efficiencies and use technology to broaden access to basic services, especially targeting marginalized communities.

      

Testing a treadle pump in Malawi courtesy of Appropedia (www.appropedia.org)

The above applications are by no means exhaustive but are illustrative of how technology can change lives. Any person, or organization, or government, or NGO, or multilateral institution, or institution of scientific research, higher and/or vocational learning willing and capable to offer practical, simple and effective technologies for Sub-Saharan Africa is encouraged to do so not only for compassionate reasons, but to make money. The economics of these technologies offer huge potential for higher returns. According to one Peter Makwanya, on his article on How Corporates Can aid Rural Technologies, Zimbabwe Independent, August 17, 2012, “Real builders of modern Zimbabwe would be those whose ideas address the needs for economic development and job creation in rural areas and the business sector should play a leading role.”

A Parabolic Solar Cooker- made from waste material can cook delicious food and pasturize  drinking water  - Courtesy of Appropedia 

On his recent visit to Zimbabwe, Food and Agriculture Organization of the United Nations, director-general, Dr Jose Graziano Da Silva, emphasized the need to use local knowledge and solutions to tackle local challenges, particularly in areas of food security. His remarks, as reported by The Herald Zimbabwe, 18 July 2012, “Our target is to increase production by between 50 and 70 percent by the year 2050 and this is only possible if we equip the smallholder farmers in particular with information on the use of cheap but effective technologies.”

There is, therefore, an agreement among stakeholders that Zimbabwe and Sub-Saharan Africa’s production challenges can be tackled by simple, cheap, appropriate, practical and effective technologies, for the benefit of those communities. Government intervention in terms of crafting and implementing enabling policies to direct and incentivize role players, which include but not limited to the corporate sector, investors, research institutions, lenders and individuals to increase and intensify their efforts is invaluable. External support to complement local resources is required from developmental partners and philanthropists. 

A simple but effective Greywater Purification System, Ecuador- Courtesy of Appropedia

IN PURSUIT OF ANOPHELES MOSQUITOES

A humble trickle of water from a wet land, deep into Miombo woodland, in north-western Zambia, heralds the birth of a river system, whose drainage basin (1,390,000 square kilometers) in Africa can only be rivaled by that of the great Nile River. It was within the course of this mystic river that the world would be mesmerized by a natural formation, which exhibits both beauty and terror. Beauty, for the first European explorer to set his eyes on the feature between1854-1856, David Livingstone, remarked “scenes so lovely must have been gazed upon by angels in their flight”. Terror, for the locals who showed the explorer the formation told him that the feature was called, Mosi-a-Tunya, the smoke that thunders. Today, the falls straddling the border between Zimbabwe and Zambia, indeed have two names, one Victoria Falls, after the then Queen of England and Mosi-a-Tunya, its African name known by many generations gone by.

The majestic Mosi-a-Tunya (Victoria Falls) 

It was on a location upstream on the banks of the Zambezi River, some 10 km from the falls, where early European settlers established a colonial outpost in 1897, close to now Livingstone town, Zambia. Majority of them perished due to unknown disease. There lay a graveyard of early settlers who succumbed to the parasite called Plasmodium falciparum which causes malaria. At the heart of the transmission, particularly in Africa, is a type of mosquito called Anopheles gambiae. Malaria transmission is made possible when a female Anopheles mosquito harvest blood from a host, a human who is infected by the parasites which causes malaria. The parasites undergo development within a mosquito, a period ranging from 10-21 days, depending on parasite species, temperature and humidity. It is critical to note that if the mosquito life span is shorter than the period the parasites take to develop to become infectious, then malaria would not be transmitted. In tropical Africa Anopheles gambiae is known to live longer than the 14 day extrinsic incubation period with two tragic consequences for Africans: first it can reproduce many other potential killers, given that it produces eggs in 2-3 days if it can secure sufficient food- human blood and secondly the parasites can fully develop to cause malaria before the end of the life of the Anopheles mosquito.

Anopheles Mosiquito harvesting human blood, courtesy of CDC.

Since 1897 until today, about 115 years later, Anopheles mosquitoes have decimated African population at the scale of 1 million deaths per year, mostly children (every 30 seconds a child dies of malaria) and pregnant women. Simple arithmetic indicates that close to 115 million Africans, excluding the unborn fetuses (God bless the souls of these lives), have succumbed to early deaths caused by treatable and preventable malaria. Prior to 1897 African population had been severely depleted by slavery, which caused deaths and forced removal of people from their ancestral lands. The impact on African communities and suggested remedies of such a tragic episode shall be articulated further in future installments.

But Anopheles mosquitoes are not only resident in Sub-Saharan Africa. These killer mosquitoes were and still prevalent in temperate regions and even in the vicinity of the polar regions. So why is that the malaria epidemic appear to be now concentrated in Sub-Saharan Africa, which sub-region contributes between 89-91% of the malaria deaths world-wide? There is no doubt that malaria deaths are linked to national income per capita, wherein there is causal effect relationship between poverty and malaria. Lack of sufficient national health budgets has crippled efforts by African countries to offer comprehensive malaria control programs. Communities in malaria prone areas are usually isolated and have low income to afford medication and transport to ferry the sick to the nearest health institution, which could be 40-60 km away.

There is no doubt in my mind that there is great scope for the world citizens to do more to reduce and ultimately end the bloodshed. If the world managed to eliminate the parasite in other parts of the world, then it can be done in Africa.

Great work has been done so far in malaria control and among the notable initiatives are the Global Fund to fight AIDS, TB and Malaria and Bill and Melinda Gates Foundation. It is proper to highlight that when UN and its partners managed to eliminate the disease in other parts of the world in the 1940s, Africa was conspicuously left out. According to Jeff Sachs the proponent of the global fund mentioned above, “…Africa, alas, was neither part of the programme (to eliminate malaria) at the time, nor a beneficiary of its results until today.”

Africa today calls for a paradigm shift in pursuit of Anopheles mosquitoes. It is agreed that the mosquitoes that cause malaria live longer in Africa and therefore can produce offspring during their life span. Thus a potent approach to prevent malaria is to eradicate Anopheles mosquitoes and not the parasite alone. This might look grotesque, in terms of budgetary requirements, but it can be done. Already the bulk of funds destined for Africa to combat malaria have not put a dent on the death toll, meaning that the issue is not about money but approach.

Every year resources are mobilized to treat same patients who were treated the previous year and that definitely can cause donor fatigue. What is required now is to create a fund called the Global Fund to Eradicate Anopheles (GEFA). That fund will ensure extensive research about the vector and pathogen behavior particularly in Sub-Saharan Africa and recommend ways of totally eliminating this insect once and for all. The fund will also superintend, together with governments and communities, practical ways of hunting the anopheles and vanquish it. According to the Centres for Disease Control and Prevention (CDC), “Larval mosquito control for the prevention of malaria in Africa has not been attempted on a large scale.” Why? It would appear Anopheles gambiae has mastered the skill of intimidation. This Anopheles mosquito is highly versatile, for it breeds in numerous small pools of water after a heavy downpour. The larvae develop within a few days, escaping their aquatic environment before it dries out. So for many it is difficult, if not impossible, to destroy the mosquito larvae.  But surely humans, clever as they are, should find ways of finding the larvae and adult mosquitoes wherever they are and just eliminate them before they spread malaria parasites.

If the status quo remains, African children would be forgiven when they conclude that other world citizens are indifferent to their predicament and are not willing to stem the deaths of Africans from treatable and preventable diseases.

The death burden on African families, especially in rural areas, is immense. Death knocks on rural families’ doors as frequent as once a year because disease, hunger and witchcraft stalk them. HIV and AIDS killed a total of 1.2 million souls in Sub-Saharan Africa in 2010 alone, a staggering 67% of the total deaths attributed to the virus world-wide at 1.8 million. About 30 million human beings have since perished due to AIDS since it was discovered, meaning that a crude estimate: 67% of that figure means that almost 20 million Africans lost their lives due to the pandemic.

Witchcraft has resulted in deaths far greater than that of Malaria, HIV AIDS and other diseases, civil wars and hunger combined. The figure is therefore quite scary and is a subject of future conversations.

So for sustainable population growth in Africa and to alleviate the burden of death on African communities, it is wise and therefore recommended to focus on quick wins. It is from these achievements that we can tackle what seem to be insurmountable challenges which lay ahead. A quick win to reduce the death rate in Africa is to eliminate Anopheles gambiae and to grow enough food within the continent. Once hunger and disease have been eliminated, it is easier to fight issues like poverty, illiteracy, infrastructure, etc.

The issue of witchcraft is urgent and African communities know how to tackle that issue. The problem at the moment is that politicians are not empowering communities through appropriate legal frameworks to confront such a social ill. Useless and retrogressive colonial laws imposed by European settlers are still being used to deal with witchcraft cases, often with spectacular failure. African governments should just allow community leaders to deal with witchcraft cases, only intervening to allow the rule of law and to ensure that laid down procedures and processes of prosecuting perpetrators are followed.

The man who “opened” the African interior in the minds of residents of England and Scotland and other western areas, David Livingstone, succumbed to malaria in 1873. His dear wife, Mary, had died earlier, on 27 April 1862, also due to malaria. While the heart (the other remains are interred at Westminster Abbey) of David Livingstone is buried on upper Zambezi, Mary, the daughter of a Southern and Central African missionary, Robert Moffat, is buried at Chupanga, in Mozambique on the lower Zambezi. Their lives and many of Africans were lost due to Anopheles mosquitoes. It is only proper that people outside Africa and Africans themselves join hands and find the way of stopping the deaths which have occurred for so long. The unity between the Livingstones and the locals can be replicated today as we implement the GEFA fund and totally defeat and destroy Anopheles mosquitoes and the protozoan pathogen, Plasmodium falciparum.

David Livingstone statue at Victoria Falls, on the Zimbabwean side; His heart was and is in Africa 

Aquaculture: The Answer for African Animal Protein Deficiency

Aquaculture defined as the farming of aquatic organisms including fish, molluscs, crustaceans and aquatic plants. Farming implies some form of intervention in the rearing process to enhance production, such as regular stocking, feeding, protection from predators, etc. Farming also implies individual or corporate ownership of the stock being cultivated.

Global aquaculture data signify a disturbing scenario where Africa is lagging behind other jurisdictions in a significant way. To put this statement in perspective let’s review the following statistics from Food and Agriculture Organization of the United Nations (FAO): In 2008 China dominated the global aquaculture industry by producing close to 32.7 million tones of aquaculture products contributing a whopping 62% of the global total aquaculture production which stood at 52.5 million tones and was ranked first out of 187 countries. Africa’s total production was at 100 464 tones and Zimbabwe accounted for 0.13% of the African total aquaculture output at only 132 tones. The highest ranked African country, Egypt (ranked 27^th) produced about 64 thousand tones accounting for 64% of African production.

A Chinese Fish Farmer Holding a Giant Grouper (Credit Burt Lum- Courtesy of Cheng  Ann-Chang)

Thus Africa and Zimbabwe need a serious relook on this particular sector in order to close the gap and ensure fish protein self-sufficiency. The benefits of this sector cannot be overemphasized. Many African communities struggle to acquire sufficient protein dietary requirements to sustain life. Many rely on fresh and dry vegetables as relish to accompany main staples (maize, yam, cassava and rice) and other staples (sorghum, millet, rapoko, wheat and other small grains) in the Savanna particularly in the interior of the vast continent. Protein deficiency is particularly severe during lean dry seasons.  Animal protein sources for many communities remain chicken (meat and eggs), bovine, sheep and goats (meat and milk and milk products) and pork. Plant or vegetable protein comes mainly from beans and peanuts. During the onset of the rainy season, communities also augment their protein intake from birds, insects, mice, crickets and so forth. These, however, are short-lived and cannot be considered sustainable. In the equatorial regions and sparsely populated savannas, particularly the savannas which border deserts and even in the deserts communities help themselves with bush meat. This particular protein source is unsustainable because often governments outlaw the killing of wild animals. Even where government capacity to ensure compliance is hampered by inadequate resources to monitor vast areas or where it is explicitly acceptable to hunt wild animals, the practice often results in extinction of species- due to the tragedy of commons. For those privileged African communities residing along the coasts of seas and oceans or shores of inland natural and man-made lakes, they surely harvest fish to nourish themselves and their families and in many occasions trade the surplus and eke a living, humble as it might be, from fishing.

To underscore the vital importance of fish as a source of animal protein, FAO’s authoritative paper entitled, “World Review of Fisheries and Aquaculture” stated that fish, including molluscs, crustaceans, provides more than 60% (4.5 billion souls) of the world’s population with almost 17% of animal protein in 2007/2008. Certainly there is great scope of increasing this figure, simply by broadening accessibility of fish resources to many- what aquaculture is promising and able to do.

Protein is therefore critical for a balanced diet of adults and is fundamental for the sustenance of life of toddlers and the youth. Thus people cannot talk of attainment of Millennium Development Goals (MDGs) when they cannot provide sufficient protein requirements to their citizens.

The tragedy is that the Sub-Saharan African fishing industry is fragmented and generally inefficient. It is also severely undercapitalized. So, even if the African waters have enough fish resources to provide enough fish protein to African citizens, the current scale and scope of commercial exploitation of fish is such that many, especially in the interior, remain grossly underserved. In fact, fish is one of the most expensive sources of protein in many landlocked countries and even in coastal countries the prices at which fresh fish is sold in the interior parts is beyond the reach of many. Fish, fresh fish in particular, thus remain a delicacy for the privileged few who have deep pockets to afford such a “luxury”. But how can food, important food like fish be the preserve of the select few with the rest confined to malnutrition and consequently malnutrition-related life-threatening diseases? 

As if this was not enough, Africa finds itself confronted by another demon- illegal fishing in its waters.  Africa is estimated to be losing over $60 billion yearly due to illegal fishing by foreigners off its vast coastline. These “pirate” ships engage in unsustainable fishing methods, wherein the industrial fishing vessels catch massive quantities of fish for export. They end up only keeping around a quarter of their catch – throwing the rest back dead. That callous behavior is threatening the marine life and every world citizen is a loser. But of course an African is the biggest loser, because fishing industry sustains multitudes. It is a source of livelihood for communities living along the coast. 

The scale and hypocrisy around the issue of illegal fishing was summed by Sierra Leone Head of State and Government, His Excellency, President Koroma, when he said that Sierra Leone was not allowed to export fish to the EU, but fish caught illegally in the nation’s waters are repackaged elsewhere and end up for sale across Europe. 

It is the very issue of illegal vessels harvesting fish in the East Coast, off the coast of Somalia which arguably caused the emergence of an ancient criminal activity of piracy. But when piracy is properly defined surely the Somali rebel is as guilty as the crew of the illegal fishing vessels, for they all practice piracy.

African leadership in conjunction with world leaders should do something urgently to stamp this scourge. Hope is not lost and we acknowledge individuals who have continued to highlight this issue in the international fora. One such distinguished world citizen is Gareth Thomas, the UK’s International Development Minister. It is refreshing to hear him saying, “I call on world leaders and regulators to take a much more effective approach to monitoring fish stocks, policing fishing and fishing rights, and ensuring that fish stocks survive for generations to come.”

So, if the African fishing industry was well-organized, then perhaps the natural fish resources could be enough to sustain all Africans at prices they can afford. But the truth is that it’s not and will take some time for it to develop (assuming that the marine fish stocks would have survived the current illegal fishing), thus something should be done now to assist families to access fish protein. The answer is aquaculture.

Besides provision of protein, aquaculture provides employment opportunities to communities. Successful aquaculture ventures can absorb the unemployed creating a multiplier effect to communities through increased demand for goods and services, increased revenues into the fiscus, improving capacity utilization and so forth.

The beauty of Aquaculture is that it does not compete with arable farming and can utilize waste land. The farmer who wishes to venture into aquaculture will thus increase productivity of his farm without sacrificing other profitable farm activities.

Through group marketing aquaculture can raise foreign exchange through production of fish and other products for the export market. The foreign exchange resources so generated can be used for importation of critical medicines, capital goods and payment of dues to the external sector.

Aquaculture can sustain economic growth, especially if fish projects are huge enabling the attainment of economies of scale and therefore contributing to the countries’ GDP. The projects can also undertake value addition of fish resources produced to increase value. It is pertinent to note that the bulk of aquaculture production from China come from small-scale fish farms.

What are the challenges of the small African fish farmer?

The main challenges afflicting the small African farmer in his quest to venture into aquaculture are as follows:

Capital inadequacy: African farmers are generally poor and struggle to survive from their barren communal land. Due to a combination of factors, they are vulnerable members of the society who are at the mercy of political upheavals, climatic change and economic stagnation mainly caused by huge debt overhang. They live from hand to mouth and cannot raise capital as they are too poor to save. Many are unbankable. External intervention from governments, the private sector and donor community is needed. Capital is needed for capital expenditure and working capital to ensure that the farmer rear, protect, harvest and transport the perishable product to the market in good quality.

Capacity (Technical knowhow)- Again aquaculture is fairly a new phenomenon for many African farmers. They require extensive assistance in capacity building for them to run aquaculture projects profitably and sustainably. They also require access to productive fish breeds, research on effective breeding and feeding methods, amongst others technical requirements.

Production volumes insufficient to break even- without proper planning the fish projects of small farmers may end up being for subsistence because volumes will be insignificant rendering their projects unviable. Without proper marketing channels, they may lack access to lucrative markets which boost their revenues.

Lack of feeds in their respective countries – Fish feeds have been known to deteriorate in quality over time meaning that importation of feeds might not be a viable solution to the shortage of feeds. It is a potent challenge facing farmers and countries willing to grow the aquaculture industry.

Healthy Fish  in a Successful Aquaculture Project

Way forward

A few years ago the New Partnership for Africa's Development (NEPAD) issued a declaration stating that fish farming in Africa will have to expand by 250% in the next 10 years just to maintain the present (low) per capita consumption of fish in the continent.

Aquaculture can still be practiced on a small-scale basis until consolidation occurs in future. Ideally profitable aquaculture projects should be large-scale producing several tones of fish per annum and be highly mechanized with ability to add value to the produce to generate more revenue. These large projects operated by the private sector, but monitored by governments for environmental protection, will embark on out grower schemes subcontracting small famers to produce targeted amount of fish. This model will address the capital and capacity constraints and guarantees a ready market for the smaller farmer, who ordinarily would find it difficult to secure lucrative markets.

It would appear aquaculture’s success is tied with industrialization of Africa. Many African countries require industrial capacity to manufacture fish feeds which can reach farmers in good quality for profitable fish operations.

The importance of aquaculture currently and in future is immense. In 2006 aquaculture accounted for 43% of total global fish food supply and by 2008 the contribution had risen to 46%. It is therefore fair and reasonable to predict that by 2050, aquaculture will dominate the world fish food supply contributing upwards of 60%. But Africa and Zimbabwe needs to do something now not only to close the gap but more importantly to guarantee animal protein self-sufficiency at household level. 

THE GREATEST MIRAGE

“Farming is a business,” so they say. The idea of farming is not to grow and rear your own food. Surely one cannot be called a farmer if he/she does that, for any able-bodied person can do just that. A farmer thus is a person who has decided to specialize in the industry of farming i.e. to find dynamic ways of sourcing inputs and see to it that the same inputs are sweated in a mix with his physical environment to produce outputs which are more than his needs, with the rest being channeled into markets. The wealth and indeed the food of many will definitely grow, if few amongst us specialize in farming with the rest being involved in other areas of specialization. It is a concept that was explained eloquently by Adam Smith in the Wealth of Nations (1776). 

Currently, many people who call themselves farmers are definitively not farmers. Their output is dangerously low and their ventures are under-capitalized rendering their endeavors subsistence with no benefit to the nation but causing immense environmental degradation. Linked to that is overgrazing, which is caused by too many animals exceeding the carrying capacity of the land or poor grazing methods.

Why would inhabitants of ecological regions 4 & 5, situated in the Kalahari basin put so much effort and money to grow crops without irrigation infrastructure? Why would government year after year assist these same people with inputs, including hybrid maize seed suited for high rainfall areas, knowing very well that their chances for a bumper harvest are next to none? 

It is an indisputable fact that all developed countries escaped poverty because of industrialization and not through subsistence agriculture. This does not mean agriculture is not important, it is a vital sector and perhaps a spring board for sustained industrialization, but only if output is high because of consistent capital, preferably private capital, is employed coupled with technological advancement in disease and pest control and improved seed varieties. It is industrialization or value addition of agricultural output amongst other industrial activities which lift populations out of poverty. Private ownership of the land, transferability of land and collateral value of land are key factors. To exorcise the demons of poverty we ought to do the following: 

Firstly, we should acknowledge that not everyone can be a farmer. That is a simple but powerful statement, for from therein opportunities outside agriculture would be pursued. If folks are aware that there is life, perhaps a more rewarding life outside farming, then we would have partially solved the problem.

Secondly, we need a vibrant industry across Africa to serve the burgeoning populations and export markets. Industrialization of Africa should be a culmination of a well thought out and properly implemented plan leveraging on Africa’s relatively cheap labor and abundant natural resources. Currently, factors militating against sustained industrialization can be broadly categorized as infrastructure bottlenecks, trade barriers and policy issues. Allow me to briefly focus on these issues:

The current electricity supply in Africa is such that serious industrialization cannot take place. This is despite the fact that the proposed Grand Inga Dam in the Democratic Republic of Congo has capacity to generate sufficient power to cater for central and Southern Africa at current electricity consumption. What is that which makes Africa fail to unlock this critical resource? Planning of electricity supply is woefully bad, for example many governments are aware that with current urbanization electricity demand will greatly outstrip supply, but they seem oblivious to that glaring reality. Road networks, rail infrastructure, ports and pipelines are also in a deplorable state, because somehow governments thought these things will maintain themselves. The concept of depreciation completely eluded them. So even if industrialization does take place, how do we push the finished goods both within and outside Africa?

The Inga Dam on the Congo River, DRC

Trade bottlenecks result from explicit uncompetitive trading barriers between African states. Of course we are aware that developed countries have heavily subsidized their farmers thus strangulating poor African farmers. But if truth be told, the trading tariffs currently between African countries are prohibiting free flow of goods and services, thus reducing the trade volumes. Reasonable tariffs under the auspices of the World Trade Organization (WTO) to safeguard local industry may be allowed, but unreasonably high trading tariffs informed maybe by the need for increased revenues into the fiscus have an unintended effect of killing industrialization agenda in sub-Saharan Africa. 

Implicit trading barriers emanate from archaic ports of entry, manned by clearly tired personnel using outdated physical and IT infrastructure. Moving goods across countries is not only a headache but a nightmare because trucks spent days if not weeks and sometimes months clearing goods at these border posts. The costs to entrepreneurs are therefore sky-high and will naturally deter them from engaging in such endeavors robbing governments of much needed revenue and confining their citizens to poverty. 

The proximity of Africa to international markets, long considered a hindrance to trade by economists is not, in my view, a critical factor. As I pen this article and as you read this article, vessels of plunder, are harvesting fish illegally in African waters, robbing African children of their heritage and well-being. Geographically, Africa is perfectly located to conduct trade with the Western Hemisphere, The Northern Hemisphere, The Eastern Hemisphere and indeed the Southern Hemisphere. The growing African middle class will soon be sufficient to power industrialization initiatives.

In the long-term, capital shall be mobilized from both the domestic (African Markets) and external markets to build canals criss-crossing Africa to resolve the problem of high transport costs from the hinterland. Let it be emphasized that meaningful industrialization and development will take place if mechanisms have been found of reducing high transport costs incurred by manufactures in transporting both raw materials and finished products. Naturally this discussion will lead us to the problem of many African countries i.e. being land locked. Empirical evidence suggests that in majority of cases coastal areas record greater investment and prosperity than landlocked areas. There are pockets of prosperity in the interior mainly due to natural resources endowment, but these are few.

Jeff Sachs, “the doctor of the world’s financial crises”, in his work, The End of Poverty, he was spot on by declaring that, “Many of the world’s poorest countries are severely hindered by high transport costs because they are landlocked; situated in high mountain ranges, or lack navigable rivers, long coastlines or good natural harbors.” 

Policy issues relates to the policy frameworks enunciated by various African governments with respect to trade. To what extent have the concepts of active value addition and rigorous import substitution been fully integrated into the legislative and government policy? Are African countries serious in pursuing technological transfer and capacity building leveraging on South-South Cooperation? Are African governments earnestly and honestly interested in industrialization and therefore urbanization?

Besides addressing these issues which are apparently limiting industrialization and thus creating serious pressure on arable land, there are recommendations which I would like to put forward to increase agricultural productivity in Africa? 

Africa should therefore free land for commercial agriculture to feed its population and provide much needed raw materials for industrialization. This should be bold and deliberate to ensure that private capital, including resources mobilized by the financial services sector, can be directed into agriculture. The commercialization of agriculture should not result in displacement of communities, but should be carefully designed as win-win partnerships. So it is only logical that where families have ample food at prices they can afford, they would not continue to labor on infertile small plots.

Irrigation support to small but successful farmers is also recommended not solely to sustain productivity, but to supplement commercial agriculture. Contrary to popular view support of numerous small holder farmers is not a panacea to solve agricultural productivity issues and reduce poverty in Africa. Economic theory dictates that economies of scale are only possible when sufficient capital is marshaled towards a bigger plot to reduce overheads and increase revenue per unit of land. What development partners and international donors are doing to ensure food security at household level is laudable, but their interventions should be considered transitory and in the long-run a new paradigm, a new approach is needed not only for ensuring food security, but for accelerating industrialization.

Most of the cattle in my country, Zimbabwe and indeed across Africa does not constitute the commercial herd, but rather used mainly for insurance, paying bride price and pulling the plow. They are rarely slaughtered for meat consumption, because doing that borders on taboo and rightly so, for they shield these families from external shocks and constitutes family wealth and status bequeathed by previous generations. The present owners are duty-bound to see to it that they also pass on the wealth to future generations. But there are mechanisms of ensuring that the current uses of cattle are properly addressed in Africa such that very few people will desire to own them. To replace this herd would be a well run commercial herd financed by private capital, of course not owned by one entity or few individuals, but by many farmers who are adequately financed and with land with capacity to keep such livestock. I am very positive that the majority will rather work in a factory and earn money to secure an insurance policy, buy food and have a decent accommodation.

In conclusion, it is fair to say that the idea that everyone can be a farmer is the greatest mirage. The belief that small holder farmers in Africa will increase productivity of food crops both for industry and the continent’s food security is a mirage. Yes we can continue supporting them as a means of a safety net, knowing very well that a new approach is crying for implementation. Private capital should fund agriculture in Africa as has been the case throughout the world. Rural-urban migration should not be cynically viewed, but should be encouraged in our circumstances. Rural areas won’t be neglected but continue to be developed to cater for bona fide farmers who shall feed the urbanites. A select few small but productive farmers would be supported, say through irrigation, technical services and marketing to complement commercial agriculture, but by and large agriculture will be carried out by commercial enterprises.

It is no surprise that as I write this article today the Brazillian Cerrado remains the true reservoir of the world’s grain and oil seed. Here, the climate and soil types are almost the same as the African Savannah; in fact the Brazilian Cerrado is an extension of the African Savannah or vice versa, for in Gondwanaland, these constituted one stretch of land.

According to the Economist (August 2010) quoting Mauro and Ignez Lopes of the Fundacão Getulio Vargas, a university in Rio de Janeiro, half of Brazil’s 5m farms earn less than 10,000 reais a year and produce just 7% of total farm output; 1.6m are large commercial operations which produce 76% of output. So my argument that the future engine of agricultural productivity is located in commercial agriculture and not in small holder farmers is valid and already in motion.

Though the Green revolution as propounded by Norman Borlaug, an American, was based on a cocktail of interventions including but not limited to use of high yielding varieties “HYV”, synthetic fertilizers and agrochemicals, it is agreed that such interventions will not cause a significant increase in food in future, rather it will be on increase of land under cultivation caused by increased capital deployment and appropriate technology to harvest and utilize scarce water resources. For that reason, there are two places where land will come from: the Brazilian Cerrado and the African Savannah. New farms in Brazil are known to exceed 20,000 hectares, dwarfing the biggest farms known to mankind. 

A mega farm in the Brazilian Cerrado

It should be noted that the potential arable land in India and China is less than 50% of the currently cultivated land, meaning that these two emerging giants will face food sufficiency issues at current rate of population growth, unless some miracle crop and animal varieties are discovered. But they need not to worry, for the answer is the Brazilian Cerrado and the African Savannah. Serious capital is therefore required to transform these vast waste lands into high productivity farms, powering industrialization and urbanization and lifting the populations out of poverty, while feeding domestic populations with the processed food exported to feed the world, at prices afforded by everyone.