Cameroon: The Challenges of New Year 2014

With serious economic, infrastructural and security challenges to contend with, Cameroonians no longer expect the scandalous and profligate posturing that dominated the country’s leadership in 2013.

                                                 By Ekinneh Agbaw-Ebai*

     New Year Day is a day to rejoice and congratulate each other for witnessing another calendar year; and for many Cameroonians, it is a day to celebrate the hope that survival imposes on the country, even in an atmosphere of poverty and widespread lamentation. It is also a day to cast an introspective look into personal, corporate and national affairs in the year just gone by, to take stock and to chart a new course for the year ahead.This past year was strewn with many booby traps, both literally and metaphorically. On the whole, 2013 saw Cameroon developing into a nation in conflict with itself, a nation living in outright contradiction to its declared development objectives.

     For the umpteenth time, Cameroonians have had, at the turn of each year, the assurances of thePresident that better times are at hand. For that many number of times, Cameroonians have ended up with shattered hopes, broken promises and failed commitments. From all indications, it would appear that Cameroonians have been swindled again by their own government. In fact, not only have situations not improved, they have actually deteriorated. Most of the promises made, if not all, have gone unfulfilled.The Biya regime continues to harvest corruption scandals, with half-hearted pursuit of high profile culprits of audacious corruption. Whichever way Cameroonians turn, they are confronted with the overarching presence of pervasive corruption and societal decay.

     With serious economic, infrastructural and security challenges to contend with, the attention of the country’s leaders was in the course of the year 2013 often consumed by vaulting ambition, pursued with intricate permutations, manipulations and maneuvering. The Senate, Legislative and Municipal election saw a vicious, if not subtle hold-up of the electoral process whereby tired old men tottering on the borders of senile decay, were recycled with impunity!To add salt to an already festering injury, the youths were told to go and “wait for their turn.” This, indeed, is unacceptable. Even if the age of these gerontocrats is no problem, what about the age of their ideas?

     What the country deserves at this critical point is a crop of leaders that are endowed with the gift of steady application, imbued with the ability to control events rather than drift with the tides, and who in range of vision and depth of conception, tower above their contemporaries. Cameroon needs leaders of iron resolve, indomitable courage and sharp intellect with acute and exceptional sense of history to lead the people out of the doldrums. Such people abound in their numbers in this country but are choked by warped and corrupt recruitment processes, the major albatross of the country. Something, afterall, is wrong with a process which makes a few persons, in certain offices, or with some dubious connections; see it as their exclusive right to nominate people for appointment to public offices.

     As a New Year begins again, Cameroonian leaders must stop and think just where the country is headed. Does the experience of the last 30 years aggregate to development in a land so abundantly blessed but so deeply violated and desecrated? Pathological lust for power and greed for money have rendered purposeful leadership prostrate. It has become more and more apparent that the fortune of this country is confiscated by those concerned with maintaining and expanding their private economic and political estates, hence whichever way the dice falls, there is a sense of foreboding thatpeace will soon go into exile, and prosperity will be long in coming.

     The colossal waste and looting in government makes it now obvious that Cameroon’s problem, truly, is not money but where to spend it.The families and cronies of public office holders have constituted themselves into patronage cartels at whose disposal alone the public treasuryis placed and they alone decide who gets what. Vanity, of course, rules and their lifestyle is so opulent and extravagant in ways that are highly offensive to public sensibility.Large-scale looting, misappropriation of public funds and sundry acts of impunity anda culture of waste has taken root, fuelling an unmanageable cost of governance and, consequently, poor service to the people.

     It is so bad that, untested hands are appointed into sensitive public offices. The refrain is that the best of Cameroonians are outside the government. This tragedy is a vicious cycle: The collapse of businesses and poor economic environment due to poor political and economic decisions have made government and politics a major and most rewarding source of livelihood, the only thriving business, the surest way of climbing to the top with little or no sweat. Those who failed in business, in their education and some who at one time or the other, contributed to the economic downturn of the nation continue to be recycled in political offices giving them the opportunity to perpetuate their failure in the affairs of the nation. The result is what obtains today: widespread ineptitude in the body politic. No country, after all, can rise above the level of its workforce, especially at the decision-making or leadership level, hence the parlous state of the nation.

     The slogan of Vision 2035 remains for many critical minds a huge joke, a wild and idle prediction of the place of Cameroon’s economy by year 2035 on the global scale. The country’s path to greatness will be defined by the choices it makes today. Those who have had the primary responsibility to lead this country to greatness have often paid lip service to a nation; one, united and indivisible. Cameroon is nowhere near its potential; rather, it is a jungle to be plundered and violated with impunity.The bigger picture of the Cameroonian national mosaic demands the undivided attention of leaders who, of their own choosing, have come forward to govern. That mosaic must encompass the multi-dimensions of nation-building - education, healthcare, the economy, security, social services. These must be pursued simultaneously in an environment of social justice and equity, and it is what democracy is all about. Where any aspect is left unattended, development becomes stunted. We cannot claim to develop when access to jobs is effectively closed to the teeming products of the education system. We cannot develop when leaders go abroad for painkillers and surgery, rather than build functional health facilities at home.

     As Cameroonians enter a New Year, they expect of their leaders a change of heart, a resolve to put in hard work in legislation, planning, execution and oversight and accountability. What Cameroonians no longer expect is the scandalous and profligate posturing that dominates the country’s leadership today.Without the hope of a better tomorrow, life would be sterile. The experiences of 2013 serve as a reminder that justice as a primary condition of human existence remains a critical undercurrent of the nation’s travails. Cameroonians can only continue to embrace the peace, which the President often talks about so thoughtlessly, in an environment of justice and equity. They have no other country but this one to call their own. If so-called leaders aspire for peace and development, they must embrace justice. The country’s leaders must renew their pledge to diligently assume a leadership anchored on integrity, principles and exemplary self-sacrifice. Cameroon will stand or fall on account of how it tackles corruption. On this note, I wish all Cameroonians a Happy New Year!

*Ekinneh Agbaw-Ebai is a Public Intellectual and graduate of Harvard University John F. Kennedy School of Government, where he was Managing Editor of the Harvard Journal of African-American Public Policy. A former Research Analyst for Freedom House, he is a Consultant and lives in Boston, Massachusetts, USA

Leasing Vs. Purchasing an Automobile



After reading the last paragraph of my reply to Sango Samuel-King Etongwe on "Njangi", a few folks called me directly, asking why I think leasing an automobile is a better option or choice than outright purchasing one. Because these fellows were very satisfied with my response, I thought it would be important to share the same information with you, for better decision making in 2014 and beyond.

     I do not know much about automobile sales in Europe, Asia or Africa, but if you live in the U.S, there are 4 ways you can acquire any vehicle or mode of transportation;

1) Leasing

2) Cash Purchase

3) Purchasing through Financing (OPM)

4) Stealing/Carjacking????

I do not recommend option #4 because you might end up in prison or getting killed. So, my discussion will focus on the first 3 options.

1) Leasing.

     When you lease an automobile or any other commodity for that matter, you are agreeing to use it for a specific interval or period of time, the duration of which is embedded in the contract. In the case of an automobile, the contract will include the monthly payments, residual value or future market value of the machine, mileage requirements, term of lease to include termination date and other conditions, etc.

    

You can also have a close ended or open ended lease, but that is another matter. However, in leasing, you will always have the following options to exercise during or at the end of the lease agreement;

a) You can purchase the vehicle at the end of the Lease period or before.

b) You can trade in the vehicle for another one.

c) You can sell the automobile to a third party and use the proceeds from the sale to pay off any balance owed.

d) You can also return the vehicle to the dealer at the end of the lease.

     Most people are only familiar with the last option, i.e. return the vehicle. Hence, they fail to take advantage of the other options available to them. This lack of information compounds the misconception the general public has about leasing.

2) Purchase.

There are two primary methods involved in "purchasing" an automobile.

a) Cash Payment.

b) Financing.

2(a) Cash Payment.

     Here is when you have decided on what vehicle make and model you want, and you do not desire having a monthly "car note" or payment. So, you use your hard earned money, to pay cash for the automobile. As soon as you make the total payment in cash or check, the vehicle becomes YOURS, because you own the Title, free and clear. And if the cash you have on hand at the time of the transaction exceeds $10,000.00, then your purchase has to be reported to IRS as a security measure against "money laundering" or what have you....

2(b) Financing or Loan.

     Here, you decide that you do not want to pay cash or cannot afford paying cash for the automobile of your choice. So, you elect to use "Other People's Money" or OPM, via the Finance option. You either borrow money from your Bank or Credit Union or any other financial institution made available to you by the dealership. You will agree to pay interest (APR) on the loan you take and that increases the cost of the automobile at the "back-end". And the cost of the loan or APR will depend of your credit rating and/or market conditions. The higher your credit score, the lower the interest rate you'll have to pay, and vice versa. Poor credit ranking means higher risk for Banks. Very bad credit rating or lower score can stop or prevent a "cash strapped person" from acquiring a decent mode of transportation. However, dealers have devised creative ways to give folks "second chances" at extremely high interest rates, e.g. "Buy Here, Pay Here" or "Owner Financing."

Question #1; So why is Leasing better than Purchase?

Answer;

A) Unlike a piece of Real Estate, an automobile is a depreciating asset. The longer you own and keep it, the lower its market value. That is not the case with a house. In proper finance management or asset allocation, you want to own an appreciating asset but, lease depreciating assets if you have to, and invest the difference in savings.

B) Leases are generally less expensive in terms of monthly payments than Financing. A good negotiation can save you between $75.00 to about $100.00 on a lease transaction. That nets to about $1000.00 annually. And although you pay "money factor" on leasing, when converted the rate is generally lower than what you would pay in APR. The reason why leasing is less expensive is primarily because you are only paying for the duration of the lease agreement, as opposed to the "life" of the automobile. It's akin to eating and paying for 2 slices of Deluxe Pizza from Mellow Mushroom, instead of paying for a whole pizza that you may not want. You only pay for what you need.

C) Your automobile is under the manufacturer's warranty during the period of the lease. The most service you'll do on the vehicle is change the oil and gas it up. Most power train warranties are 3/36 and bumper-bumper=5/60. So, if you lease a vehicle for 3 years @ 12000km/yr, then you are completely covered under warranty for the duration of the lease. That alone is an attractive feature.

D) Most leases come with ''gap insurance" as part of the package. The leasing company seeks to protect its "asset" so it ties "gap" to the deal, in the event of an accident, God forbid.

E) In purchasing, you have only 2 options to exercise, (a) sell, (b) trade. Otherwise, you're stuck with a depreciating asset, which may eventually become a liability.

F) If you owned a business, and leased the automobile in your company's name, you get to make tax deductions at the end of each fiscal year. You can deduct all your or most of your payments on the lease, but you may want to consult with your accountant to be sure about how that works.

Question #2; But I do not own the vehicle when I lease it. What happens to the money I have paid?

Answer.

    That is a normal question from people who don't understand the concept of leasing. You pay for the time you use the automobile and still reserve the right to exercise all other options available to you as aforementioned. Residual value means future market value of the product, subtracting what you've already paid. It's like putting a down payment on something to limit your "financial liability" or "obligation".

     On the other hand and for starters, when you purchase an automobile through the second option, e.g. Financing (OPM), you do NOT "own" the vehicle until the 60th or 72nd payment is made, that is if the financing is for 5 or 6 years. In a Title holding State such as Kansas, you are issued a Title with a Lien on it, and the Lien is only released after the final payment is made. In most other states, you do not get a Title, so the vehicle does not belong to you until you make the last or final payment.

     If you lived in Atlanta-Ga. for instance, where the city is spread out and you drive approximately 20,000 miles a year, then the damn machine will have more than 100,000 miles by the time you assume full ownership of the vehicle after 5 or 6 years or 60 to 72 payments. That is the age of a normal vehicle in terms of mileage. Now, what do you think your vehicle will be worth, with the meter reading 100,000 miles? Check with Kelly Blue Book. The bottom line is that nobody wants to hold onto a depreciating asset at a time when it is turning into a liability.

Question #3; If I pay Cash, then The vehicle is mine and I can do whatever I want with it. What's wrong with that?

Answer; Sounds great, but here is the problem;

     You drive that new automobile off the dealership lot, make a wrong turn and get hit. You will not receive the same amount of money you paid for it from the insurance company. You will be short by at least 3 grand. That is how fast the thing depreciates. Secondly, if you decided to sell the vehicle after 2 weeks of purchase, because something came up and you needed cash and fast, you will not get the $30,000.00 you paid for it. The most you'll get will be $20,000.00 to $25,000.00, because at that point, it is a second hand or used automobile and the value drops like lead. Automobiles are depreciating assets, and the value decreases rapidly during the first few years. Thirdly, if you did not buy extended service contract or warranty upfront, you will incur additional cost in repairs when the baby gets old and that is when the liability factor kicks in.

     For the above reasons and more, I strongly recommend the Leasing option to a majority of my clients who desire to drive new vehicles.. In most cases I recommend the purchase of "second hand" automobiles, especially Lease Returns, because they are cost effective ad well taken care of. Auto Auctions are also good places to shop for great automobile bargains.

     At this juncture, I'm available to answer any questions that our readers may have on this subject, cognizant of the fact that there are many here who may disagree with my position on "Leasing versus Purchasing". And if I do not know the right answer, I promise to find out from more knowledgeable folks in the industry. That is why forums like these are important. They offer all of us an opportunity to share our opinions on important subjects. This is a very extensive topic that cannot be exhausted in one posting. But I hope I have made my case to your satisfaction. Whenever you can, please use the information contained here and remember that an "educated or informed consumer is often a very satisfied customer or buyer."

Dr. Sam Esale is a Senior Partner with Invictus Afrika Consulting Group headquartered in Atlanta, Georgia. For your consulting businesses please, visit our website at www.invictusafrika.net  and learn more about us. Also visit www.iicfip.org  for more information about IICFIP.

Christmas and Cameroon's Redemption

   Christmas and Cameroon’s Redemption

Beyond the festivities of Christmas, Cameroonian Christians are once again challenged to live up to the core values of their religion, and impact positively on their socio-cultural and political environment.

                                        By Ekinneh Agbaw-Ebai*

     The birth of Jesus Christ, which is celebrated every December 25, is the portentous event of the Incarnation, from which Christianity draws its essence. Christians the world over, mark the birth of the Son of God and the Savior of mankind, whose spectacular life of virtue, revolutionary teaching and sacrificial death on the Cross of Calvary, form the basis of the over two thousand year-old Christian religion. Even in a world overrun by secularism and materialism and other social forces impacting negatively on religion and morality, a world witnessing an inexorable decline in Christian values and Christian worship especially in Western industrialized societies, the continued influence of Jesus Christ in a global context is unmistakable.

     Across the globe, Christmas has come to be associated with the festive spirit, family reunions and the celebration of family life and friendship with the exchange of greetings, visits and gifts. It is that time of the year when many are inspired to stretch out the hand of fellowship and solidarity in charity and thanksgiving to all who have survived the stresses and the strains of the passing year. The legend of St. Nicholas, the patron saint of all generous people played out in the form of Father Christmas or Santa Claus, has always excited the curiosity of children, while orphanages, hospitals and prisons will often witness a boost in charity visits at this time.

     For Cameroonians, however, Christmas 2013 brings to a close a year of shocks and pains and blood and tears. Cameroonians have been struggling to cope with bad governance, decrepit social infrastructure, worsening economic fortunes and widespread social insecurity. And as the year draws to a close, many are counting their losses with a fair dose of stoicism and characteristic hope. Given the terrible scenario playing out in the country, manifested in mass poverty, high corruption in government, gross official recklessness and near zero governance, this Christmas should serve as a poignant reminder to those in power, to embrace service to humanity and improvement of people’s welfare as a central theme of their governance activities. This, in any event, is enjoined of them in the 1996 Constitution, which Mr. President swore to uphold.

     In spite of the agony and the social chaos that have endured in the country, however, the celebratory spirit of the Cameroonian will not be dampened. The incurable optimism in the Cameroonian; their resilience and undying spirit, now obviously stretched to the limit, is what appears to have secured the peaceful quiet that prevails amid the subsisting trauma of life in the country. Perhaps in the view of many, Christmas is too important a milestone in the Christian life cycle to be abandoned to the vagaries of disoriented and misguided politicians and robbers in government who are in the habit of distributing food items to the poor during Christmas, as if the beneficiaries have no need to eat outside of the month of December. Ideally, government should do better to embark on measures to empower such poor people to feed themselves all year round. Many Christians will go out to worship and to celebrate, if only to demonstrate to their so-called leaders that they do indeed have a substantial stake in this country, and that despite the wholesale plunder of the treasury, they cannot and will not be denied the conduct of their religious obligations and festivities.

     The Cameroonian condition has taken on a life of its own, however, somber such life. The mindless looting that is going on in the country in the name of governance, with telling outcomes in mass poverty and collateral damage, has become an embarrassing trademark of public office. Cameroon’s social conundrum today is exacerbated by the heightened incidence of corruption and obscene display of stolen wealth by public officials without due regard for the majority of citizens who continue to wallow in poverty and misery. The result has been rising criminality by unemployed youths who have resorted to armed robbery, such that travelling home for Christmas has become risky and daunting as weathering the siege of war. The government has dropped the ball allowing bike riders to take virtually every principal city in the country hostage; all in the name of survival. The bend skin menace (for want of a better expression) has been allowed to fester for too long and has now degenerated into some kind of a low-intensity insurgency against state authority. It has gotten to a stage where the government is now helpless and clueless on what to do to address the issue. This is an affront on the government and the people of Cameroon that is unacceptable.

     Christmas is, however, the proclamation of good news. It is a celebration of joy and of hope. The Christ, whose birth is marked every December 25, has given the world a roadmap to abundant life, peace and prosperity. Taken seriously and applied in our individual and corporate lives, the values preached by Jesus, namely sacrificial love, justice, compassion, leadership by service, forgiveness, humility and purity of heart, will transform Cameroon for the better. The disposition towards crass materialism, excessive wealth accumulation and blind pursuit of pleasure is clearly at variance with the spirit of this holy day.

     And so beyond the festivities of Christmas, Christians in Cameroon are once again challenged to live up to the core values of their religion, and impact positively on their socio-cultural and political environment. There is need for sober reflection on the moral imperatives of the political and economic choices before the nation. The values which symbolize the life of Christ – love, truth, justice, humility, service, self-sacrifice, forgiveness, remain elusive as Cameroonians struggle for the soul of the nation. Incumbent and aspiring Cameroonian leaders must abandon the path of selfishness, greed, primitive accumulation and inordinate ambitions if the country would prosper. Christians and non-Christians alike must embrace the higher value of sacrificial leadership that make for lasting peace and prosperity.

Merry Christmas and a more prosperous New Year 2014; to all Cameroonians.

*Ekinneh Agbaw-Ebai is a Public Intellectual and graduate of Harvard University John F. Kennedy School of Government, where he was Managing Editor of the Harvard Journal of African-American Public Policy. A former Research Analyst for Freedom House, he is a Consultant and lives in Boston, Massachusetts, USA.