The Ninetieth Iteration of the Ambassador Andrew Young Lecture Series - "MCC's Commitment on Africa" featuring Mr. Daniel Yohannes

On Wednesday, October 6, 2010 at the Embassy of Ghana, The Africa Society of the National Summit on Africa held the 19^th iteration of the Ambassador Andrew Young lecture series entitled “MCC’s Commitment to Africa,” featuring Daniel W. Yohannes, Chief Executive Officer of the Millennium Challenge Corporation (MCC). The speakers emphasized the importance to continue the effort to educate the American public, policy makers, and those in the Africanist community on Africa and U.S. policy towards the continent. Mr. Yohannes focused on President Obama’s policy plan towards Africa and the MCC’s place in fostering peace, security, good governance and development on the continent.

Edith Hazel, the Deputy Chief of Mission at the Embassy of Ghana and host of the event, provided welcoming remarks while Bernadette Paolo, President and CEO of The Africa Society, served as the Mistress of Ceremony. Congressman Donald M. Payne, Chairman of the House Subcommittee on Africa and Global Health, provided remarks on the Africa Society, commenting on the change he has personally seen in the American public and policy makers on their perception of Africa through increased education provided by the organization. Noah Samara, CEO of WorldSpace and Africa Society board member, had the honor of introducing his fellow brother of Ethiopia, Daniel Yohannes.

Mr. Yohannes began his remarks by commenting on the MCC and the Africa Society’s shared goal: “our commitment to helping Africans help themselves replace poverty with prosperity.” He went on to remind the audience of President’s Obama’s message, that Africa’s prosperity is not isolated, but rather tied to the prosperity of the United States. While the United States certainly plays a supporting role in Africa’s development, it is African governments themselves which must be responsible, accountable and “willing to do everything possible to create sustainable environments for growth that will open up opportunities for investment and trade.” Mr. Yohannes explained how the MCC’s performance based grants, which are awarded to countries with firm political, economic, and social policies aims to foster this type of culture in development and investment on the continent. Mr. Yohannes ended with a reminder that “the purpose of foreign assistance must be creating the conditions where it’s no longer needed,” where African trade, commerce and innovation are independent.

The night ended with a rousing question and answer session, which brought to light many of the tough questions the MCC must face. After the lecture was drawn to a close, Mr. Yohannes was given enormous thanks and the audience lingered to enjoy a few more jovial moments among fellow friends of Africa.

Africa in the News: "Wal-Mart sets sights on Africa in £2.9bn bid for Massmart"

The Guardian: "Wal-Mart sets sights on Africa in £2.9bn bid for Massmart"

http://www.guardian.co.uk/business/2010/sep/27/wal-mart-bid-massmart-south-africa

The world’s largest corporation, Wal-Mart, is in negotiations to move into Sub-Saharan Africa through a £2.9bn takeover of Massmart, a South African based chain of superstores. Massmart currently consists of 290 stores in 13 Africa countries such as Ghana, Nigeria, Tanzania and Zimbabwe under a variety of brand names. This deal is Wal-Mart’s first attempt to gain access to African markets which it deemed as a “’compelling’ growth opportunity.” Many within the region see Wal-Mart’s desire for business as a vote of confidence in their economies.

However, the takeover may prove complicated for Wal-Mart, particularly in the case of Zimbabwe, as the U.S. is still enforcing targeted sanctions due to its disapproval of Robert Mugabe’s regime which has been accused of “ongoing human rights violations, land seizures and intimidation of political participants.” Things could also get complicated for the company within South Africa in the midst of ongoing strikes across industries for wage increases. Wal-Mart’s reputation ‘for being anti-union and for a ruthless approach in keeping down wages,” leads Michael Bride, deputy organizing director for global strategies at America's UFCW union, to speculate that “The company may very well adopt a policy of racing to the bottom in terms of wages and salaries and then denying workers a voice." Opposition to the takeover has already been voiced by the Congress of South African Trade Unions.

ADDITIONAL INFORMATION

A Forbes article on reactions of South Africans over the proposed take over: http://www.forbes.com/2010/09/28/walmart-takeover-labor-union-opposition-equities.html?boxes=Homepagechannels

A short South African News Report on the Issue: http://english.ntdtv.com/ntdtv_en/ns_me/2010-09-29/500195547382.html

Overview of U.S. sanctions against Zimbabwe: http://www.ustreas.gov/offices/enforcement/ofac/programs/zimbabwe/zimb.pdf

An article from Africa Recovery on “Africa's untapped investment potential”: http://www.un.org/ecosocdev/geninfo/afrec/subjindx/132inves.htm

DISCUSSION QUESTIONS

1. Do you believe this type of investment in African economies is positive? What might be some of the negative/positive side effects?

2. Do you think Wal-Mart’s desire to move into African markets is a good indicator of economic growth on the continent?

3. What may be some cultural implications of a large U.S. corporation entering Sub-Saharan African markets?