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ISSUE 147 - VOL 2
April 15 - July 14, 2017

Dr. Bienvenu-Magloire Quenum
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Welcome to the quarterly issue of Africabiz Online /free access Synopsis & RSS Feed edition. Previous issue available at this link

The introduction to this issue is available at this link.

Hush, Hush South Africa's Credit-Rate Downgrading to Junk? Not a Catastrophe!

By Dr. Bienvenu Magloire Quenum

The brusque decision taken on 05 April 2017 by western countries controlled credit-rating agencies, to downgrade South Africa to junk has shaken up the political stage. South Africans are offended.

At first glance, this junk status appears to be a catastrophe and some believe it could cripple South Africa economic development for years to come.

However, a sober analysis of the situation would prove otherwise - as demonstrated in following discussion.

The structure of South Africa economy is unbalanced and need correction to implementing social justice

It is a well known fact that since the shift of power from the minority rule to the majority rule on 27 April 1994, the structure of South Africa economy had not changed and remained dominated by the white people of South Africa - who benefited the most from the apartheid regime. This is well documented
by South Africa's stats.

No one can deny this state of affairs is destroying South African social fabrics, increasing year in year out poverty level in the black community. It is obvious that something need to be done urgently to raise the standard of living of the blacks to avoid social disturbances that could destroy South Africa as a rainbow nation. That is the reason why the ANC and the executive decided to accelerate Land Reform implementation.

Thus on March 17, 2017 the Department of Rural Development and Land Reform released the Regulation about the Agricultural Land Holdings Bill, 2017 40697 and the subsequent Memorandum for public comment to be achieved on April 17, 2017. The Bill in PDF file is available for download on the site of the Ministry of Rural Development and Land Reform.

The Bill's main salient points read as follows:

1 - There will be a ceiling on the amount of acreage owned by a person, an entity or a corporation.
2 - A foreigner, person, entity or corporation cannot own land in South Africa. A foreign person, entity or corporation can lease land for a maximum period of 30 years.
3 - A registrar is established to register land possession - new or old, existing in South Africa.

The elaboration of the Bill is the result of principles and action-planning laid down by Jacob Zuma at the first national rural development workshop held on 10-12 November 2000 at Durban, Kwazulu Natal.

This writer attended Durban workshop and reported in Africabiz Online December-2000 edition that Zimbabwe’s Scenario Won’t Happen in South Africa.

He drew that conclusion because the strategic land reform devised by South African authorities is completely different from the erratic and chaotic one undertaken in Zimbabwe by Robert Mugabe.

He believes, the implementation of South Africa's Land Reform devised by the executive would reinforce social peace, avoid unnecessary economic disruption and make South Africa a more appealing international investment destination.

Above conclusion is still valid today - 17 years later, based on the analysis of the Agriculture Land Holdings Bill published by the executive on March 17, 2017.

Therefore this writer is of the opinion this Land Reform should gain support from any reasonable and responsible person, agency or corporation; and foreign countries, which have in mind the harmonious development of South Africa.

Not supporting it is sowing seeds for trouble, to promoting an unharmonious social atmosphere, that would create chaos leading to sabotage, and the subsequent break up of South Africa.

Which bring into question motives and hidden agenda behind Standard & Poor precipitous decision, taken on April 5, 2017, to downgrade South Africa economy to junk, in advance to the normal date (June 2017) scheduled country credit-rating analysis.

Obviously, S&P decision was timed up to coincide with the opposition's rallies planned for April 7, 2017 to protest against the cabinet reshuffle, the sacking of Pravin Gordhan and his deputy minister.

Did S&P pundits took time to analyze the Agriculture Land Holdings Bill 2017 released on March 17, 2017 for citizens to input their comments and remarks - up to April 17, 2017? Did they? If they did it, they have chosen not to make any mention of it in the statement to justify the credit downgrading to junk.

One can conclude it is not only the cabinet reshuffle and the sacking of Pravin Gordhan which are the reasons for the downgrading to junk; but also the Land Reform! Foreign entities in Western countries do not want the implementation of the Reform. They prefer the status quo!

And this authorizes a sober observer to question the hidden agenda behind South Africa credit-rate downgrading to junk.

-False arguments and slogans used in anti-Zuma manifestations

The rallying stance of the opposition is that Jacob Zuma must go because he allegedly is corrupt; ganging with the Guptas to rob the country. The proof? The rumor had it he already signed a deal with the Russians for the construction of a nuclear power station.

He allegedly is also an utterly bad president who appoints only incompetent ministries devoted to him and not serving the country. The proof? The social affairs minister will not deliver April month grants in time as scheduled.

In fact what is the reality? As for the nuclear deal, ESKOM, the national power utility company is the designated procurer for the nuclear new build programme. In February 2017, Eskom announced it had received a positive response to the Request for Information (RFI) it issued in relation to the proposed South African nuclear new build programme.

Twenty-seven companies stated their intention to provide a response to the RFI. The companies include major nuclear vendors from China (SNPTC), France (EdF), Russia (Rosatom Overseas) and South Korea (KEPCO).

The power utility said while the intention to submit a response to Eskom RFI does not commit a company to submit a response to a potential future Request for Proposal (RFP), the quantum of the response to Eskom RFI showed the level of competitive interest in South Africa nuclear new build programme.

The RFI was issued on Eskom website on December 20, 2016 and asked companies that felt they could provide relevant information to confirm by 10:30am on Tuesday, 31 January 2017 that they would be submitting a response to Eskom - by 10am on 28 April 2017.

So you see, no deal signed yet by Jacob Zuma to favoring the Russians. Thus, the rumor that Pravin Gordhan was a savior who impeded Jacob Zuma to sign a deal with the Russians, under the supervision of the Guptas, is fake news!

Let's now consider the incompetence charge against Jacob Zuma and his ministries, symbolized, according to the opposition, by the incapacity of social affairs ministry, to deliver grants on time.

March 2017 was full of rumor social grants won't be paid in time as scheduled for April 1, 2017. Come April 1 and 26 million South Africans received their grants. But the hysteria didn't die, the opposition claiming the alleged incompetent ministry had not been released during the cabinet reshuffle!

Except in EFF's manifesto, which asks for Land grabbing from the whites - à la Zimbabwe, Land Reform is not mentioned anywhere in the other opposition parties manifestos. These parties have not put forward any suggestion, proposal to better the Land Reform devised by the government for the good of the black community.

Doing that the opposition is in complete synchronization with western countries controlled credit-rating agencies, which, objectively, do not want the implementation of the Land Reform.

We certainly are not going to witness Julius Malema's Economic Freedom Fighters marching and dancing, toyi-toying alongside "save South Africa" group members, and Zille's Democratic Alliance, to defend the Reform!

The right to protestations and marches is a Constitutional Right. But nationalist opposition should be careful not to create chaos and fall into the trap laid down by the masters of 'Divide and Conquer' - opening the gate to direct foreign intervention. The tragic fate of Libya should be remembered!

Yes remember Libya! The most prosperous country in Africa before the invasion by NATO's member countries in 2011 - that toppled the leadership of the country.

Before 2011, water was free for every Libyan citizen. Scholarship was free for every Libyan child; university tuition was fixed at US$9 per academic year. Yes nine, you read correct! Universities’ laboratories were fitted with the most advanced equipment. Same for hospitals. Healthcare was free for the whole population. Libyans having the highest standard of living in Africa!

And now what do we have in Libya? Chaos. For instance water is now imported in plastic bottles from Europe as Gaddafi man-made River had been destroyed by the invaders! Insecurity is rampant! The economy is in tatters and beggars fill the streets.

After Libya, Nigeria and South Africa are the next targets. Once Nigeria destabilized, West Africa would be conquered again. Once South Africa destabilized, not only Southern Africa countries would be - but the whole continent will fall into the hands of the Globalists. Beware!

- Hidden agenda of foreign opposition to the Land Reform

It is obvious as per above discussion, that the credit-rating downgrading to junk had been taken hastily to give a boost to the internal opposition rallies against President Jacob Zuma. This is a blatant attempt by foreign entities, to cripple South Africa sovereign right to design and implement its own independent economic policy.

One should not be surprised, as there is a secret doctrine that underlines the decision making process of western countries' elite concerning Africa - scripted by Dr. Lothrop Stoddard in a book written in 1920, The Rising Tide of Color against White World Supremacy.

To sum up, Dr. Lothrop Stoddard's book advised the European elite, to act vigilantly to impede the economic rise of non-white nations, in order to avoid the inevitable decline of white people nations, as these do not have enough energy and natural resources, while the formers are plentifully endowed.

This doctrine of white-supremacy, based on the fear that the rise to better living standard of non-white people of the world would be a threat to the white supremacy, is the backdrop to the strategy implemented by the European elite all over territories they invaded and conquered, politically and economically enslaved - in Africa, Asia, and the Americas.

The European elite, astutely implemented Dr. Stoddard’s script and relentlessly, devised political and economic measures, supported by cooked legal binding international Law, to manipulating Africa to remain a provider of raw materials to Europe, importing manufactured goods from Europe - at exchange rates detrimental to Africa.

This is well documented by Walter Rodney in his must read book, How Europe Underdeveloped Africa. Click following link to read the review of Walter Rodney's book by Africabiz Online.

So, the downgrade to junk status should not come as a surprise to South Africans; and the reason why Land Reform had not been mentioned in the downgrading statement is crystal clear. Some powers in the West do not want the implementation of the Land Reform!

- Western countries' controlled credit- rating agencies’ statements are no more gospels

The internal opposition leaders want us to believe that South Africa is doomed - as long as Jacob Zuma remains at Union Buildings.

They want us to believe that a basket of juicy, healthy and bright yellow oranges to be delivered to a far village by a messenger (Pravin Gordhan) instantaneously became sour, rotten and decayed as soon as the president transferred the basket to a new messenger (Malusi Gigaba), to make a faster delivery to people who need it more!

Are we stupid to believe that? Of course we are not - even if bold agents provocateurs had shown racist billboards during opposition contestation rallies painting us as such!

Let's not be discouraged by these rating agencies statements because they are not gospels. They do not anymore have the power to decide upon the fate of emerging nations - at whim, as they did for decades and particularly during the 1980's. Now they are challenged by the rising of irresistible powers in Asia, where the nightmare of Dr. Stoddard, is now a vibrant reality.

- Western countries controlled credit rating agencies cannot blackmail anymore. Emerging nations now have strong bargaining power

South Africa credit-rating downgrading to junk would have a crippling effect on South African economy only if the country’s authorities failed to use existing alternative financing sources - to bypass western countries blackmail.

Indeed, the unipolar world power structure - administered by the United States of America and its allies, which ruled the world since at least five centuries, is dead - as extensively exposed at the following links [1, 2].

The decline started slowly during the 1990's - just after the fall of Berlin's wall, and accelerated in the wake of 2008-financial crisis that saw the irresistible emergence of new big powers at the eastern part of the world.

These new emerging powers progressively established new financing structures to challenge the International Monetary Fund and the World Bank - two tools used by America to control the rest of the world.

These new financing centers are, the Asian Infrastructure & Investment Bank - AIIB, and the China Interbank Payment System – CIPS. [a, b, c, d]

With the setup of both structures - AIIB and CIPS, the coercive power of America and allies to impose dicta and views to the rest of the world is severely eroded. Now, emerging nations around the world have the possibility to maneuver and find financing alternatives to the IMF and the World Bank.

So, downgrading South Africa credit-rating to junk, would affect the country economy only if authorities failed to search for assistance from AIIB and CIPS, not to forget the newly established BRICS countries development bank.

In addition to the intervention of said new financing structures, South Africa authorities can also establish a state owned bank, here extensively described, to accelerate the economic development.

There is also the possibility to establish a complementary currency to the Rand, as catalyst to boost rural development and the global economy.

The purpose of a Complementary Currency is not to compete with the National Currency but to complement it as medium of exchange particularly in rural communities in which the official money's circulation (liquidity) is scarce or altogether nil. The particularities of a complementary currency are here extensively described.

The most successful complementary currency system is established in Switzerland since 1934 and run by Switzerland WIR-Bank!

So, one see the downgrade to junk, is not a catastrophe. The country is not doomed as some people in the opposition to Jacob Zuma want us to believe.

In the contrary, the suddenly splashed junk status opens an immense opportunity to boost the economy, using alternative financing sources as above exposed.

Visiting Westonaria/West Rand's Agri-Park, on April 11, 2017, Jacob Zuma declared:

"Through the agri-park programme (encompassing all provinces) we want to bring 300.000 new small holders farmers into the agriculture sector and create new 145.000 agro-processing jobs. It is also aimed at bringing one millions of land into production".

This declaration is not propaganda. It could become a vibrant reality, if South Africans remained united and do not throw the country over the cliff; they should not play into the hands of the globalists -who are masters in the deadly game of 'Divide & Conquer'.

South Africans should remember the tragic fate of Libya, beware and don't be fooled!

About the management of this Blog: Dr. Bienvenu-Magloire Quenum is the principal/ managing director of Dr. Quenum & Associates, IBC; an experienced Investment & Business Planner with 30 years consulting practice in African countries; author of Africans, Stop Being Poor! and the editor in chief of Africabiz Online

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