Call for Africa to help its Haitian 'brothers'


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JOHANNESBURG // They may lie on opposite sides of a vast ocean, but the ties that bind Haiti and Africa run deep. Not only is the former largely populated by the descendants of slaves from the latter - so much so that Senegal's president, Abdoulaye Wade, offered dispossessed Haitians a right of return and a province to settle - in 1804 Haiti was the first black country in the world to overthrow the colonial yoke and set up its own republic.

It went on to play a key role in the campaigns of Simon Bolivar to establish free states in South America and provided an example to many of Africa's independence movements. With Haiti undergoing one of its periodic political crises six years ago, the then South African president Thabo Mbeki was the only foreign head of state to attend the bicentenary celebrations of the revolution. The same year he offered sanctuary to Jean-Bertrand Aristide, the democratically elected president who resigned and fled the country - he claimed it was a US "kidnapping" - in the face of a popular uprising, installing him in a government-provided mansion in Pretoria, with a cabinet minister's benefits to boot.

Writing in the third person, as he often does, Mr Mbeki said in the Times of Johannesburg yesterday: "The fact of our birth in the South Africa that was, placed Haiti in a special place in our hearts and minds." Its past was, he said, an "indestructible distinction" and "the history of the extraordinary uprising which led to this outcome - could not but serve as an unequalled inspiration to those engaged in struggle to achieve their own liberation".

Now Africans at all levels are being asked to donate to the rebuilding of the country following the ruin wrought by the earthquake this month, with the launch of the Africa for Haiti campaign. It is endorsed by some of the most respected figures on the continent - Graca Machel gave it the imprimatur of her husband's Nelson Mandela Foundation by hosting its first press conference there, and Archbishop Desmond Tutu, the Nobel laureate, said: "We were supported wonderfully by the international community when we struggled against the vicious policy of apartheid. Today the people of Haiti, struck twice by the earthquake, are in a worse predicament than we were. As South Africans, we especially cannot but want to do our bit to alleviate the immense suffering of our sisters and brothers in Haiti."

But this carries with it a certain incongruity: although Haiti is the poorest nation in the Americas, almost all the 30-odd countries below it in global GDP per capita lists are in Africa, the poorest continent in the world and seen far more as a recipient of aid than a donor. Ordinary Africans "from all walks of life" across the continent are being asked to contribute, said Buhle Mpofu-Makamanzi, spokesman for African Monitor, a development group helping to organise the campaign, "even in the smallest possible way".

"In Africa we appreciate the fact that Haiti is one of the poorest countries," she said. "We know how poverty is devastating, we identify with that." Kelvin Glen, of the South African Red Cross, said: "It's been proven worldwide that even those who are not that fortunate can give a bit. It's a call to action to say every person needs to help and you can't only depend on traditional donors and the corporate sector.

"Just because we are African, just because we ourselves are beneficiaries of aid, doesn't mean we can't help." But in an age where trade and aid policies are seen in some quarters as drivers of neo-colonialism, the sentiments that Haiti's history engenders are reflected in other ways, too. The chaos following the earthquake has prompted a number of commentators to blame the West for Haiti's poverty, despite the fact that all the evidence from the past 200 years, the credit crunch notwithstanding, suggests that liberal capitalism is the greatest wealth-creating device for the greatest number ever invented.

According to the Africa for Haiti campaign organisers, the continent can offer the benefit of its own experiences on the receiving end of enormous quantities of aid, which have not always had the intended results and sometimes left the beneficiaries feeling that they were not properly consulted. "Some of the multilateral and bilateral agreements are premised on the northern donor telling the southern recipient what to do and how to account for those funds," said Mbizo Sibanda, a senior investment manager for the Charities Aid Foundation Southern Africa.

He cited the International Monetary Fund's structural adjustment programmes, requiring governmental and economic reforms as part of lending packages, as a particular example. "It comes with strings and conditionalities that people have to succumb to," he said. "We have found that people come already with pre-packaged programmes looking for someone to endorse them. That's the reality of development and I'm sure that's what's going to happen in Haiti."

sberger@thenational.ae

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Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”