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West Africa Telephone +233 -302- 511189 fax 233-302-511188 Email: [email protected] /[email protected] Contents COVER The American foot in Ghana's electricity….................….......... page 5 Power Africa, the reality……......................................................... page 9 The historical energy planning malaise…................................... page 11 Ghanaian workers against privatization of energy sector......... page 12 DEVELOPMENT Capital flows, tax haven and offshore secrecy system…........... page 15 Is Africa's 'resource nationalism' just big business as usual?..... page 18 Financer like a cancer grows………............................................. page 20 INTERNATIONAL The Bandung diamond jubilee: time for a new world order…......................................................................... page 22 A short walk but with giant steps…............................................... page 25 page 9 photo: Obama and African leaders Saving Palestine's children under the arms trade treaty…....... page 27 POLITICS Presidents in designer suits, citizens in rags…........................... page 29 How serious are Guinea protests?................................................. page 32 AfricanPublished by TWNAgenda Africa New terrorism law batters Cameroonians seeking secession….......................................................................... page 34 Editor-in-Chief: Yao Graham Political economy of xenophobia……........................................ page 36 Editor: Cornelius Adedze Design: David Roy Quashie EDITORIAL, SUBSCRIPTIONS AND ADVERTISING: TWN-Africa P.O. Box 19452 Accra-North Ghana, West Africa Tel: (233) 302 511189/503669/500419 Fax: (233) 302 511188 Email: [email protected] Website: www.twnafrica.org Note to subscribers As part of efforts to improve our data management all TWN INTERNATIONAL SECRETARIAT subscribers have been allocated identification numbers. You will always find them on your address labels. Please President: Mohammed Iddris quote these numbers in all correspondence regarding Director: Martin Khor your subscription. 131 Jalan Macalister 10400 Penang Malaysia The material in this magazine may be freely reproduced and distributed without prior permission, provided that the source of the material is attributed to African Agenda ISSN 0855-3378. African Agenda is published six times a year by Third World Network (TWN) Africa. TWN is an international network of groups and individuals who seek greater articulation of the needs and rights of the peoples of the Third World, especially marginalised social groups, a fair distribution of the world’s resources and forms of development which are ecologically sustainable and fulfil human needs. TWN Africa is grateful to Oxfam-NOVIB, Development and Peace, InterPares (Canada), TrustAfrika, Rockefeller Brothers Fund and Rosa Luxemburg Foundation. EDITORIAL Power Africa, America's power nergy has come to the fore as one of The drivers and implications of Power loans to the private sector for the utilities the main areas of infrastructural Africa are looked at in The American foot in sector have resulted in failures on delivery Edeficit in the current buzz about Ghana's energy (See page 5). Privatization, of services as well as repayment in most Africa's steady economic growth and need handing over of the areas of the energy sec- cases. On the labour, front PPS may lead for structural transformation. Nearly two- tor that will become highly profitable retrenchment and worse employment con- thirds of people in Sub-Saharan Africa do thanks to 'market based' reforms that ditions as private companies look to make not have access to electricity; without ener- American 'experts' are helping to put in more profit from their operations thereby gy there can be no industrialization. place is at the heart of the Power Africa sacrificing labour. According to International Energy Agency, project. It is about making the African ener- It is palpably clear that, Power Africa is $30 billion will be needed to reverse the sit- gy sector generally profitable for the foreign not just about helping Africa make up for uation by 2030. Africa's need is however (sic American) investor. GE alone for 10,000 MW of electricity that it needs but being turned into a feeding frenzy for example will provide nearly 5,000 MW of also a push by American companies to 'grab' Western firms seeking new areas of invest- the 10,000 MW of electricity Power Africa the African energy market and make the ment and guaranteed high profits in Africa. aims to generate on terms of cast iron guar- most of it. Africa needs to see this bigger This drive is being facilitated by Western antee of profitability in Ghana and picture and negotiate well so as not to once governments and the international financial Tanzania through mouthwatering deals. In more surrender its energy and natural institutions they control such as the World the particular case of Ghana what the coun- resource sovereignty on a silver platter to Bank. African governments and institutions try is sacrificing for an MCA grant is far foreign interests. such as NEPAD are accessories in this exer- more than the money it will receive because But this need not be the only way out cise which is seeing the takeover of public the terms of the grant require far reaching of reducing the energy deficit in Africa. utilities by transnational firms and the loss policy changes and reforms in the electrici- Examples abound in Africa on how to bal- of national control over energy policy. ty sector. The cornerstone of this is a draw- ance the structural transformation agenda Looming large in new scramble is the ing down of the public sector's role, guaran- and social service provision to the popula- USA's their 'Power Africa' initiative teeing the profitability of private generators tion through carefully worked out financing announced by President Obama in June which could threaten a whole range of of infrastructure especially energy. Ghana's 2013. According to its initiators it is 'an strategic imperatives such as rural electrifi- Akosombo Dam constructed under the innovative private sector- led initiative cation and accessible