Written By Sheila Khama (extracted from a LinkedIn Post)

Should Africa’s Citizens, Institutions, NGOs and Governments Be Concerned?

@FT reports that on February 11, 2025, the US halted enforcement of the FCPA using Presidential Executive Powers. Introduced by Carter in 1977, strengthened by Obama in 2010-Dodd Frank Act. One provision aimed to curb corruption from bribes paid to foreign government officials by US entities. NGOs approved deeming both developments moral and ethical gestures by the Leader of the Free World. Among others the latest move aims to create a level playing field such that US investors are not disadvantaged-???
https://lnkd.in/dfwQJP-G

Some African governments benefitted from FCPA through apprehension and trials of culprits some in mining. This begs the question should the region be concerned over the latest decision? The answer depends on (1) where one believes the responsibility to govern countries in Africa lies, (2) whom one thinks citizens of the 53 countries should legally and morally hold accountable to maintain law and order, and (3) whom one believes paves the way for bribery, African officials or American investors.

HERE IS MY TAKE:
National leaders (not foreign partners) manage affairs of State to benefit citizens. Colluding with investors and granting one foreign investor an illegitimate favor over another or citizens, fails this test.

African countries cannot be administered by other sovereigns. Therefore, the idea that US Congress, DoJ and the SEC could police Africa better than the region and national institutions flies in the face of reason.

The notion that the FCPA could end bribery practices under conditions in which Africa politicians and technocrats are complicit is delusional. Therefore, while a good initiative on the global front, it was never a substitute for national law enforcement and regard for lawfulness by Africa’s own leaders.

The irony being AUC’s response to illicit flows has been to target foreigners alone under the Illicit Finacial Flow initiative. Does this mean African leaders do not know that their own too are illicitly helping themselves to national coffers? Here too the indifference at best suggests half-heartedness, defies logic and could only undermine FCPA and others like EITI, PWYP etc. based on a false pretext that actions of foreigners are more deplorable.

No, no, Excellencies
https://lnkd.in/dUrZ9hh6

US National Whistleblower Centre described the law as, ‘enormously successful’ based funds recovered and cases brought to court making the point that effective law enforcement and judiciary are vital. Others emulated the US. The UK’s Bribery Act 2010 and a 46-country report shows similar laws. But the 2024 Corruption Index shows little change suggesting that African officials haven’t ceased to take bribes….

Sheila Khama is a Non-executive director of listed companies, podcast host, blogger and former CEO of De Beers Botswana, and former extractives policy advisor at World Bank and AfDB.