Creative Solutions for Africa

Isaac Leeward, African Economic Analyst, Advisor and Life Coach

CREATIVE SOLUTIONS FOR AFRICAN CHALLENGES:

These are suggestive solutions from Discovering Africa Network. Feel free to contact us by clicking the link on the top right or filling out a form below. Your opinions are precious to us.



Challenge 3

The Battle Cry,"Where is The African Children's Money?" (ACM)

According to UN Economic Commission for Africa chaired by former South African President, Thabo Mbeki, "Large sums of money illicitly leave the African continent yearly."

The shocking revelation that multinationals since 2000 illicitly take an average of $50 billion yearly from the African economy:

From 1970-2008 {38 years) they were able to trace illicit transfers of $854 billion from Africa. That for every $1 aid received $10 was taken away. Africa could become a debt free continent, if all these resources were available. Furthermore, if you include capital flight from Africa the figure will double to $1.6 trillion conservatively.

List of top ten illicit transfer from African nations:

  1. Nigeria......................$212.7 Billion
  2. Egypt........................ 105.2
  3. South Africa................ 81.8
  4. Morocco.................... 33.9
  5. Angola....................... 29.5
  6. Algeria...................... 26.1
  7. Cote d'lvoire............... 21.6
  8. Sudan....................... 16.6
  9. Ethiopia..................... 16.5
  10. Republic of Congo.........16.2


$560 Billion (total)


The UN Economic Commission pointed out an accusing figure at global multinationals that use a variety of means to siphon off vast amounts that Africa desperately needs to solve hunger, unemployment, education, health, housing, infrastructural developments, infant immortality and life expectancy.

Source: African Business

Suggestive Creative Solutions from Discovering Africa Network:

1. This wholesale extraction of African resources is a criminal act. The African Union has an opportunity to create a platform to retrieve The African Children's Money (ACM) through the International Criminal Court (ICC) in Hague from these multinationals.

2. AU should be empowered to retrieve money from foreign banks as deposited from former African leaders.

3. AU should be empowered to bring Africans to account who have illegally taken ACM into foreign banks.

4. AU should set up a website for "Whistle Blowers" who will give tips about where these funds are located around the world for compensation just like US does.

5. 20% of the funds can go to fund AU budgets. 5% for expenses and 75% to the African governments where the belong.

6. AU should setup a three year moratorium for these multinationals and individual Africans to settle the account of illicit transfers.




Challenge 2: Raise capital to solve African challenges

Capital is needed to put in place reforms that can solve challenges, like drought and hunger. How can this capital be raised?

Answer:

The Creation of the African Stock Market:

This can be done by the African Union and could fund the Union's budget connecting all the already 23 operating markets into one central market. With a goal to promote it continental wise and globally to raise capital for African entrepreneurs to establish businesses.


Challenge 1: Resources to fund African Union:

Dr Jean Ping, Former AU Chairperson stated:

"How a continent of 54 countries, with the richest deposits of every natural resource in the world, can still largely rely on outside largesse to finance the activities of its continental union."

(Even the new AU headquarters was donated by China)

This is a PARADOX that Africa will have to solve in the second decade (2012-2022).



Discovering Africa Network's suggestive solution for
funding African Union's yearly budget by Africans

Answer:

Tapping into the growing Telecommunications boom:


With the 54 Nations agreement, African Union (AU) could tap into the growing Telecommunications boom by charging an AU Fee of $0.15 per Cell Phone monthly. 735 million Subscribers in 2012 will produce $110 million monthly and $1.3 billion yearly.



Feel free to share any ideas, comments and questions below:


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