Africa Threatened With Starvation: No Objective Reason

Millions ‘on the edge’ in DR Congo now in even greater danger of tipping over. WFP food distribution to Internally Displaced People in Kikuku, North Kivu, Democratic Republic of the Congo. WFP/Ben Anguandia

There is no objective reason for hunger in Africa. African nations have abundant fertile land and many water systems that should enable them to be not only food self sufficient, but produce a surplus. With proper investment in infrastructure and planning, stockpiles of food would be available to feed the population during difficulty periods like the present COVID-19 pandemic. With manufacturing and agricultural processing sectors, people would have more job security, then living hand to mouth in the so called informal economy. 

WFP Chief warns of grave dangers of economic impact of Coronavirus as millions are pushed further into hunger

Transcript as delivered of remarks by UN World Food Programme (WFP) Executive Director David Beasley to today’s virtual session of the UN Security Council, September 17, 2020.

“Five months ago, I warned the Council the world stood on the brink of a hunger pandemic. A toxic combination of conflict, climate change and COVID-19, threatened to push 270 million people to the brink of starvation. Famine was real. It’s a terrifying possibility in up to three dozen countries if we don’t continue to act like we’ve been acting…

“As COVID-19 pushed countries everywhere to lock down, the equivalent of 400 million full-time jobs have been destroyed, and remittances have collapsed. The impact has been felt hardest by the 2 billion people who work in the informal economy around the world – mainly in middle and low-income countries. Already only one day’s work away from going hungry, in other words living hand to mouth…

“Let me turn to the countries on today’s agenda. In the DEMOCRATIC REPUBLIC OF THE CONGO, conflict and instability had already forced 15.5 million people into crisis levels of food insecurity. These are people on the brink of starvation. The latest assessment indicates that the upsurge in violence, coupled with COVID-19, has sent this total sky-rocketing to nearly 22 million people, an increase of 6.5 million people. And I should warn you these numbers assume WFP is able to maintain current levels of food assistance. If we are forced to scale back operations, the outlook is even worse

“NIGERIA: COVID-19 is also forcing more people into food insecurity. Analysis shows measures imposed to contain the virus reduced incomes in 80 percent of households. You can imagine the devastation with that alone.

“In the northeast of the country, 4.3 million people are food insecure, up by 600,000 largely due to COVID-19. While in the large urban area of Kano, the number of food insecure people during that lockdown period from March to June went from 568,000 to 1.5 million people – an increase of 1 million people. Very troubling.

“SOUTH SUDAN: The outlook there is similarly worrying, where even before the pandemic, 6.5 million people were expected to face severe food insecurity at the height of the lean season, made worse by the violence in Jonglei State in recent months. This has resulted in the displacement of tens of thousands of civilians, a large number of abducted women and children, and widespread loss of livestock and livelihoods. In addition, virus outbreaks in urban areas such as Juba could put as many as another 1.6 million people at risk of starvation.

Finally, even though it is not on today’s agenda, I also want to highlight the disaster unfolding in Burkina Faso, driven by the upsurge in violence. The number of people facing crisis levels of hunger has tripled to 3.3 million people, as COVID compounds the situation…displacement, security and access problems. For 11,000 of these people living in the northern provinces, famine is knocking on the door as we speak.

Read: WFP Warns Grave Economic Dangers From COVID-19

Food Is Now Up to 250 Percent More Expensive Across Africa

‘With crop reduction comes food scarcity, and prices go up with demand. The Famine Early Warning Systems Network found that Ethiopia, Kenya, South Sudan, Sudan, Uganda, Zimbabwe, DRC, Mauritania, Nigeria, Guatemala and Haiti are the countries that have been most affected by the drop in crop production.

‘In the Republic of Congo, the average price of a basic food basket has increased by 15 percent, while a similar pattern has emerged in Sudan, South Sudan, Ethiopia and Somalia, with an above-average increase in the price of staple foods.

‘Then there’s the rising cost of sorghum – a drought resistant cereal grain that’s popular across the continent. In July, sorghum prices exceeded the five-year average by 150 to 250 percent in Sudan, 50 to 240 percent in South Sudan, 85 percent in Addis Ababa, Ethiopia, and 20 to 55 percent in Southern Somalia

Read: Food Up To 250% More Expensve in Africa

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

Africa Development News: Ivory Coast and Ghana Move Forward With Infrastructure

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IVORY COAST: The government launches the construction of a hydro-agricultural dam in Koro

The Ivorian government has just launched the construction of a dam in the council of Koro in the northwest of Ivory Coast. The water reservoir on the Yirima River is intended for the development of agriculture in this part of the country.

“The realization of this dam will improve agricultural yields and ultimately, the income distributed to farmers. Its realization is therefore in line with the second phase of actions taken to accelerate the emergence of the Bafing region,” said Minister Moussa Sanogo.

 

September 9, 2020

China-Ghana cooperation thriving despite COVID-19:

The site of the upgrading project of Ghana coastal road in Accra Photos: Courtesy of CGICOP

China and Ghana are continuing to promote bilateral trade despite the COVID-19 pandemic, as the two sides actively push several programs ahead….

“Meanwhile, a 26-kilometer-long road project linking Ghana’s capital city Accra and Ghana’s largest port city Tema, one of the Belt and Road Initiative’s landmark construction projects, recently kicked off. ”

Read the full article: http://enapp.globaltimes.cn/#/article/1199432

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

Trump’s Aid Cut Harmful to Ethiopia and All of Africa

Artist rendition of the completed Grand Ethiopian Renaissance Dam

August 6, 2020

Trump’s Aid Cut Harmful to Ethiopia and All of Africa

By Lawrence Freeman

President Donald Trump has instructed Secretary of State, Mike Pompeo to pull back from a commitment to provide $100 million in security related aid to Ethiopia, a leading developing nation on the African continent. According to the New York Times, the State Department indicated this would be a “temporary pause” on some aid in response to “Ethiopia’s unilateral decision to begin to fill [its] dam before an agreement was reached…” This action by the Trump administration is more than an outrageous encroachment of Ethiopia’s sovereignty. It is an assault on the right of emerging nations to take actions to improve the living conditions of their people.

In response to the decision by the State department, Eyob Tekalign, Ethiopia’s state  finance minister said correctly, “We don’t think that the U.S. has thought this through carefully…We are hopeful that they will reconsider because Ethiopia is doing what is absolutely right and in all senses of the word legally, morally as well.”

The Ethiopian people have funded the $4.6 billion Grand Ethiopian Renaissance Dam (GERD) themselves. This fulfills a bold vision to develop their nation with the 6,200 megawatts (MW) of electricity that the dam will generate when completed. Ambassador Fitsum Arega aptly expressed the desire of the Ethiopian population, when he tweeted, “we will pull Ethiopia out of the darkness,” which is literally and metaphorically true.

Trump’s Bias

All indications are that President Trump acted on the insistence of Egyptian President el Sisi, who has claimed “historical rights” to the Nile River. In truth he is asserting “colonial rights” to the Nile bestowed on Egypt by the British Crown.

At the end of 2019, at the request of President el Sisi, President Trump instructed Treasury Secretary Mnuchin to act as an independent broker in discussions with Sudan, Egypt, and Ethiopia. Over four months, several meetings of the three Nile riparian nations were held in Washington DC discussing the “fill rate” of the GERD. There are legitimate concerns about how much water would be withdrawn annually in the next several years to fill the GERD’s reservoir of 74 billion cubic meters (bcm) of water. Technical issues like the rate of which water should be withdrawn from the Nile to fill the reservoir should be resolved by the three nations with the understanding that a functioning GERD will benefit all the people living in the Horn of Africa.

The heavy rains at the beginning of Ethiopia’s rainy season this summer have already filled the GERD with the required 4.5 bcm of water to test two turbines. This was accomplished without any reduction in the flow of the Nile.

As the tripartite discussions, with the US Treasury and World Bank in attendance continued into February 2020, it became clear that the US was “putting its thumb on the scale” for Egypt, in the words of retired US Ambassador David Shinn. By the end of February, Mnuchin secured an “agreement” regarding the Nile with Egypt, without the participation of Ethiopian representatives.  On February 28, 2020, an official statement from the US Treasury Department praised Egypt’s “readiness to sign the agreement,” and instructed Ethiopia that “final testing and filling should not take place without an agreement.” For more information read my earlier post: Africa Requires Ethiopia Fill Its Dam.

Eventually, the unresolved issue of the Nile shifted to the proper venue for African nations to settle disputes, the African Union. The dialogue has continued under the personal supervision of South African President, Cyril Ramaphosa, Chairperson of the African Union.

The GERD is built in Ethiopia on the Blue Nile River, which supplies 85% of the Nile when it joins the White Nile north of Khartoum, Sudan

Bringing Africa Out of Darkness

What President Trump does not understand; is that his “pause” in aid is not only harmful to Ethiopia, but it is detrimental to the entire African continent. Whether he is aware of it or not, is establishing a dangerous precedent in foreign policy, and not just for Africa.

Ethiopia, with a population approaching 110 million, has made a commitment to eradicate poverty. To that end, Ethiopia has embarked on erecting significant infrastructure projects in roads, railroads, and hydro-electric dams. The GERD has the potential to generate over 6,000 MW of power, doubling Ethiopia’s present capacity, and placing Ethiopia only second to South Africa in energy production in sub-Saharan Africa (SSA). Ethiopia would also become an energy exporting nation potentially providing electricity to neighboring South Sudan, Sudan, Kenya, Somalia, and Tanzania.

The root cause of virtually every crisis that African nations are facing today, including ethnic conflicts, can be traced to underdevelopment. This is especially true when one examines the dearth of hard infrastructure in SSA with a population nearing 1.5 billion that is projected to reach 2.5 billion by 2050. Electricity for SSA is estimated between 100,000-130,000 MW. This level of output is criminally deficient for a population over 1 billion, with 600 million Africans having no access to online electricity. The lack of electricity is literally a death sentence for millions of Africans.  Is this not a form of genocide?

Without abundant and accessible electricity Africa will not progress at the level necessary to provide for its present, much less its expanding population. Energy is the sine qua non for economic growth, and to eradicate poverty. It is required for; agriculture, producing fertilizer, pumping water, cleaning water, transportation, lighting hospitals, vaccine production and storage, shipping food in refrigerated cars, powering industry, constructing and lighting modern homes, schools and libraries. For Africans to enjoy the same access to electricity 24×7, as we experience in modern nations, Africa needs a minimum of 1,000 gigawatts or 1 million megawatts of electricity.

Does anyone in the Trump administration, or any individual in the leadership of the Democratic Party think on this level?

President Franklin Roosevelt signed the Tennessee Valley Authority Act-TVA on May 18, 1933. (courtesy inthesetimes.com)

What Roosevelt Would Do?

Rather than being threatened with cuts in aid, Ethiopia should be supported in its bold efforts to build and operate the GERD. A thoughtful US policy would be assisting all African nations in addressing the enormous multi-trillion dollar infrastructure deficit, with long term-low interest loans to finance massive investments in life saving infrastructure. Instead of President Trump and his foolish advisors hurling geo-political condemnations against China, it would be far better for the US to join China’s Belt and Road Initiative, which is building vitally necessary infrastructure in Africa and around the world.

Both the Democratic and Republican Party, including President Trump himself, from time to time utter fond references of President Franklin Roosevelt. However, I have found that no leader in either party has any comprehension of the genius of President Roosevelt’s economic policies. FDR as he is known, understood the importance of infrastructure. This was abundantly evident in his New Deal, his creation of the Tennessee Valley Authority (TVA), and his Good Neighbor policy. During the war he sternly reprimanded Winston Churchill for his Imperial-Colonial policies in Africa. President Roosevelt intended to end the British Empire’s political and financial control in the world. He had a vision to develop Africa, including greening the desert, with the same methods he had successfully implemented in the US: great infrastructure projects. I can assure you, that President Roosevelt would have championed and aided any developing nation that embarked on energy production.

Sadly, in the seventy-five years following the death of President Roosevelt, the only President, who had shown enthusiasm for the economic development of Africa, was John F Kennedy.

Let the Trump administration pause to rethink this wrongheaded policy that not only violates Ethiopia’s sovereignty, but undermines a strong US ally in East Africa. Let us recognize Ethiopia’s endeavors to improve the living conditions of its citizens, and pause again to ask, how would President Franklin Roosevelt respond.  His TVA harnessed the power of the mighty Tennessee River generating electricity to transform the lives of millions of poverty stricken Americans living in seven undeveloped southern States.  Is it not in the strategic interest of the US to support nations working to eliminate poverty in Africa using Rooseveltian methods?

Read: Africa Requires Ethiopia Fill Its Dam

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

Adviser to Ethiopian PM Abiy, Kenyan Pres Kenyatta, and US Cong Davis, All Understand: Infrastructure Essential for Economic Growth

Dr Arkebe Oqubay speaking during virtual TIPS 2020 Forum meeting
August 4, 2020

All three articles in this post highlight the essential role of infrastructure in building real economic growth in African nations as well as the United States. We are living in a perilous period of economic breakdown and loss of hundreds of thousands of lives due to the COVID-19 pandemic. Millions of impoverished people around the world are threatened with hunger, and tens of millions more are being forced into poverty and extreme poverty as a result of this dual crisis. Massive development of infrastructure, including nuclear energy, should be financed through public sector credit and a National Infrastructure Bank as part of a  “New Economic Architecture,” which is urgently required. The economic principles to finance infrastructure and an expanding agro-manufacturing sector was brilliantly put forth by President George Washington’s Treasury Secretary, Alexander Hamilton*. The levels of infrastructure required cannot be done by relying on the so called free-market, but must be accomplished by government intervention. When people are dying and suffering, you do not depend on the “markets.” Nations have the obligation to provide for the general welfare of their citizens.

Without infrastructure and manufacturing, AfCFTA will fall short – senior African policymaker

“An Ethiopian senior minister and special adviser to Prime Minister Abiy Ahmed has cautioned that, without major infrastructure investment and the development of manufacturing capacity, African countries will not be in a position to take full advantage of the African Continental Free Trade Agreement (AfCFTA), which is poised to liberalize trading conditions across 55 countries.”
Dr Arkebe Oqubay has been at the center of Ethiopian industrial policy making for over 25 years. He is the founding Chancellor of the Addis Ababa Science and Technology University (AASTU), and in 2015 he authored Made in Africa: Industrial Policy in Ethiopia

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Kenya on Course for $5 Billion Nuclear Plant to Power Industry

  • Plans to expand nuclear-power capacity fourfold by 2035
  • Kenya expects peak demand to top 22,000 megawatts by 2031

The government looks to expand its nuclear-power capacity fourfold from a planned initial 1,000 megawatts by 2035, the Nuclear Power and Energy Agency said in a report on the National Environment Management Authority’s website. The document is set for public scrutiny before the environmental watchdog can approve it, and pave the way for the project to continue.

President Uhuru Kenyatta wants to ramp up installed generation capacity from 2,712 megawatts as of April to boost manufacturing in East Africa’s largest economy. Kenya expects peak demand to top 22,000 megawatts by 2031, partly due to industrial expansion, a component in Kenyatta’s Big Four Agenda. The other three are improving farming, health care and housing.

The nuclear agency is assessing technologies “to identify the ideal reactor for the country,” it said in the report.

A site in Tana River County, near the Kenyan coast was preferred after studies across three regions, according to the report. The plant will be developed with a concessionaire under a build, operate and transfer model.

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US Congress introduces  H.R. 6422, the bill for a $4 trillion dollar National Infrastructure Bank (NIB) based on Hamiltonian principles

New Videos Show the Way Out of Crisis

*Alexander Hamilton’s Credit System Is Necessary for Africa’s Development

*Nations Must Study Alexander Hamilton’s Principles of Political Economy

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

 

New Infrastructure Vital for South Africa to Combat COVID-19 and Save Lives!

South Africa Says Lenders Commit $21 Billion to Building Projects

Banks, development finance institutions and multilateral organizations have committed 340 billion rand ($21 billion) to infrastructure projects in South Africa that could create 290,000 jobs, the government said.

The projects range from water supply to housing, energy, agriculture and roads. They were named in a July 24 government gazette, paving the way for the beginning of private investment in a 2.3 trillion rand program over the next decade.

Infrastructure investment has been identified by South Africa’s President Cyril Ramaphosa as a key plank in his bid to revive a stagnant economy that’s been further damaged by the coronavirus pandemic. While the state has traditionally funded most infrastructure in South Africa, surging debt has seen the government turn to private capital.

The projects need sovereign guarantees and an increase in debt limits, Kgosientsho Ramokgopa, the head of infrastructure investment in the presidency, said at a press conference today.

For more on the initial announcement, click here

Still, the commitments are a step forward in attracting investment into the country, which faces infrastructure deficits ranging from piped water to housing and power plants.

Of the 276 projects being considered by Ramokgopa’s department, the initial list totaled 50 with an additional 12 “special projects.” The projects are “shovel ready,” he said, with work likely to begin within three months.

“We will come with the next wave of projects,” he said. “The state needs to reciprocate by providing those guarantees.”

Private funding

Some of the projects, such as the next stage of the Lesotho Highlands Water Project, are already in process. Ramokgopa was not clear on whether the total investment amount included previously announced expenditure.

“What we need are projects that are financed independently by private investors who then earn a return through operating the projects,” said Theobald. “Those are genuinely fiscal neutral and growth positive.”

Ramokgopa did say one project to build 45,000 housing units was completely privately funded.

The commitments are as follows:

  • Transport: 47 billion rand, creating 50,000 jobs
  • Water and sanitation: 106 billion rand, creating 25,000 jobs
  • Housing: 138 billion rand, creating 190,000 jobs
  • Agriculture: 7 billion rand and 4,000 jobs
  • Digital: 4 billion rand and 700 jobs
  • Energy: 58 billion rand, creating 6,000 jobs

Reported by EIRNS, researchers at South Africa’s National Income Dynamics Study (NIDS) group released a Coronavirus Rapid Mobile Survey (CRAM) on Wednesday, July 15, which provided a bleak picture of the reality currently facing that nation under lock down, conditions which are representative of much of Africa and the Global South.

Conducted over a two-month period during May and June, the extensive (20-minute) survey was conducted by phone this year, with 30 researchers contacting over 7,000 people/homes. Of the hundreds of questions asked — with conversations getting personal to the point of provoking tears — the final report breaks the responses into three categories: Employment, Hunger, and Health.

  • On employment: 30% of income earners who had a job in February did not earn an income in April 2020 (the month South Africa’s hard lock down started and before relief efforts kicked in). As could be expected, job losses were highest in already-disadvantaged areas which could least afford it.
  • On hunger: 47% of respondents reported that their household ran out of money to buy food in April 2020. 1 in 5 respondents told researchers that someone in their household had gone hungry in the last seven days, and 1 in 7 respondents reported that a child had gone hungry in the last seven days. In households with children, 8% reported “frequent” child hunger (3 or more days in the last 7 days) in their household, and 1 in 25 (4%) reported “perpetual” hunger (almost every day or every day), with cases of “food shielding” (adults not eating so their children could survive), evidenced by “adult” hunger surpassing child hunger by almost 8%.
  • On health: 78% couldn’t (or wouldn’t, whether out of fear or poverty) see a doctor at least once during May or June, while 23% reported they were unable to access needed medications. The situation in South Africa is compounded by the unaddressed crisis of AIDS, with victims being unable to access critical care because of COVID-19 overload, a condition which could only be worse if the patient were pregnant.

While the authors do not note it, the survey is the first known to bring together these three aspects of the crisis, providing an accurate physical-economic picture of this harsh reality.

COVID-19 Tragedy Compels Revamping Globalization and Food Production

Dieudonne Twahirwa, 30, who runs Gashora Farm, examines chili plants at his farm in Bugesera District in eastern Rwanda on August 23, 2018.(Thomson Reuters Foundation/Thin Lei Win)
June 12, 2020

The article, Africa: COVID-19 Recovery Is a Chance to Improve the African Food System, reprinted below raises important issues concerning Africa’s food supply. The Covid-19 pandemic has revealed the failures of the global economic system. To wit: The gutting of healthcare in the so called advanced sector over the last half century left nations unprepared for what should have been expected, a new contagious zoonotic disease.  Nations that depended on thousand mile long supply chains for basic necessities, including medical supplies and drugs, proved to be disastrous for their populations. The absence of vitally essential products led to increased rates morbidity and mortality.

Tragically, Africa has been forced to devote large portions of its foreign exchange on debt service rather than building up its healthcare infrastructure. Adequate healthcare requires not only more hospitals, beds, physicians, and modern advanced equipment, but electricity, clean water, sanitation, roads, rail roads, adequate supply of nutrition, and elimination of poverty. A poorly fed population suffering from malnutrition provides an auspicious host for the spread of disease. Poverty is a co-factor of all diseases.

Last month, David Beasley, Director of the World Food Programme (WFP), warned that, if economic conditions continue to deteriorate and endanger the production and distribution of food to impoverished nations, we could witness famines in Africa, and other parts of the world. He said, “You could have 150,000 to 300,000 people die of starvation every day for several months.”

Africa has millions of acres of fertile but uncultivated land. The continent is reported to have over 60% of the world’s land lying fallow that could be developed for food production. It has been known since the early 1970s that the Africa continent has the potential to not only produce enough food for its own population, but could become a net exporter of food to help feed other nations.

The deadly COVID-19 pandemic has revealed what was there to see all along; Africa and large sections of the world have remained underdeveloped for decades due to the horribly defective policy of globalization.

To accomplish an agricultural revolution in Africa, we will also need to create an industrial revolution in Africa as well. The failure to industrialize Africa, to build manufacturing industries along with mechanized farming is a major contributing factor in reduced life expectancy, poverty, disease, and instability. The Physiocratic doctrine that all wealth comes from the land was efficiently refuted by President Washington’s Secretary of the Treasury, Alexander Hamilton.* The super productive family farms in the United States matured alongside manufacturing cities, and had access to abundant supplies of energy  for irrigation.

Let is use the tragedy of the COVID-19 pandemic to initiate a program to develop Africa’s full economic potential that will finally end poverty and hunger. To realize this absolutely achievable objective, we will need to create a New Bretton Woods System to drive economic growth. President Franklin Roosevelt intended the original Bretton Woods to be an institution to export his New Deal for developing nations, as was discussed with the Ethiopian delegation at the 1944 conference. Now, over a half century later we must realize this goal.

*Report on Manufacturers- December 5,1791

The World Food Programme has warned that the COVID-19 pandemic could cause one of the worst food crises since World War II. It predicts a doubling of the number of people going hungry – more than half of them in sub-Saharan Africa. While wealthier people stay inside and practise physical distancing, the economically marginalised populations risk going out in search of food. They take decisions between livelihoods and life in the most extreme cases. Such food inequities show the need for system-level action.

So far, the global food system has proven to be resilient to the COVID-19 pandemic. Food is still being produced, processed and distributed. Unfortunately, the system’s underlying injustices and inequities continue too. Around 1.58 billion people globally can’t afford healthy diets.

These inequities are especially stark on the African continent. Even before the COVID-19 crisis, the African food system was ailing. Food is perennially in short supply. In 2018, more than 250 million people in sub-Saharan Africa experienced severe food insecurity, incomes for farmers are lower than anywhere globally in real terms, and more than 30% of children are stunted partly due to poverty and poor diets.”

Read: COVID-19 Recovery: Chance to Improve African Food System  and Repositioning Agriculture for Africa’s Youth

Read my previous posts:

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

UN Chief: Virus Could Push Millions of Africans Into Poverty

A woman wearing face masks to protect against coronavirus, has her temperature checked by a security personnel before entering a grocery shop at Tembisa township in Johannesburg, South Africa, Tuesday, May 19, 2020. (AP Photo/Themba Hadebe)
A woman wearing face masks to protect against coronavirus, has her temperature checked by a security personnel before entering a grocery shop at Tembisa township in Johannesburg, South Africa, Tuesday, May 19, 2020. (AP Photo/Themba Hadebe)

May 20, 2020

United Nations Secretary-General, António Guterres, warns about the danger of the COVID-19 in Africa, both from the disease itself and causing increased levels of poverty.

“It will aggravate long-standing inequalities and heighten hunger, malnutrition and vulnerability to disease.  Already, demand for Africa’s commodities, tourism and remittances are declining…. millions could be pushed into extreme poverty

“The U.N. said the low numbers could be linked to minimal testing and reporting, pointing to a World Health Organization warning that the pandemic “could kill between 83,000 and 190,000 people in 47 African countries in the first year, mostly depending on governments’ responses.”

“To help address the devastating economic and social consequences of the pandemic, Guterres said Africa needs more than $200 billion and “an across-the-board debt standstill for African countries” unable to service their debt, “followed by targeted debt relief and a comprehensive approach to structural issues in the international debt architecture to prevent defaults.”

“These are still early days for the pandemic in Africa, and disruption could escalate quickly.  Global solidarity with Africa is an imperative – now and for recovering better. Ending the pandemic in Africa is essential for ending it across the world.

“I have been calling for a global response package amounting to at least 10 per cent of the world’s Gross Domestic Product.  For Africa, that means more than $200 billion as additional support from the international community.

“I also continue to advocate a comprehensive debt framework — starting with an across-the-board debt standstill for countries unable to service their debt, followed by targeted debt relief and a comprehensive approach to structural issues in the international debt architecture to prevent defaults.” 

 

Secretary-General António Guterres records a video message on the effect of the COVID-19 pandemic on children. UN Photo/Eskinder Debebe
Secretary-General António Guterres records a video message on the effect of the COVID-19 pandemic on children. (UN Photo/Eskinder Debebe)

ReadUN: Impact of COVID-19 in Africa

Read my earlier articles on COVID-19 in Africa:

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

 

 

China’s Belt & Road Needed to Revitalize World Economy: CGTN

May 18, 2020

Below are excerpts from my article on the strategic role of China’s Belt and Road in today’s world economy, published by CGTN 

The global economic breakdown ignited by the COVID-19 pandemic entails China and its Belt and Road Initiative (BRI) playing an important role in restoring health to the world economy. While Western nations are still struggling with COVID-19, and are months away from beginning to refurbish their economies, China has already started its recovery, following its earlier success in combating the coronavirus.

The collapse of nations to conditions resembling the Great Depression and the inability to contain the deadly virus have belied the alleged success of globalization. The underlying flaws of the deregulated post Bretton Woods financial system, which has become an international gambling casino to make fast money, are now nakedly revealed. Given the breakdown of the present global financial system, it is urgent that leading nations issue a call to convene a conference to initiate a New Bretton Woods system, which values human life over making money.

For civilization to progress, a new economic architecture dedicated to ending poverty, and promoting productive economic growth is compulsory. Without question, the United States and China will have to perform outsized roles in establishing a new paradigm of political-economic relationships among nations, notwithstanding current tensions.

Read the entire articleBelt and Road Needed to Revitalize World Economy

New Economic Order Required to Combat COVID-19 in Africa

COVID-19 will spread in Africa (courtesy theconversation.com)

New Economic Order Required to Combat COVID-19 in Africa

Lawrence Freeman

March 30, 2020

As of March 30, 2020, the Africa CDC reports the total number of COVID-19 cases-4,760, deaths-146, and recoveries-355. The totals for individual nations vary from higher levels:  Algeria 511 cases and 31 deaths; Egypt 609 and 40; Morocco 479 and 26, South Africa 1280 and 1; Nigeria 111 and 1 (cases and deaths respectively); to dozens of nations reporting 10 or less cases and 0 deaths. Africa CDC COVID-19

While these figures for Africa are significantly lower than nations in Europe, Asia, and North America, in some cases orders of magnitude lower, there is reason for great concern for the spread of the Coronavirus throughout the African continent. Many African nations are unable to adequately test their citizens, and one should assume the number of cases is vastly unreported. Also, there unique features of African society that present an impediment to isolation of those infected with COVID-19, and social distancing. African society are centered around crowded mass markets, and culturally Africans are prone to show their friendliness towards others by holding hands.

Factoring in a weak healthcare system, poor nutrition, inadequate housing, lack of electricity and clean water, and already prevalent existing diseases (HIV AIDS, Malaria, TB) in the population, COVID-19 could propagate very rapidly, overwhelming an insufficient number of beds, hospitals and doctors. For Africans, the consequences of the proliferation of COVID-19 could be catastrophic, resulting in higher levels of mortality and morbidity than we have presently experienced.

Debt Restructuring Necessary for Africa’s Health

In response to the COVID-19 pandemic, for the first time in many years, African leaders are demanding a restructuring of the onerous debt, whose payment has diverted nations’ revenues away from investing in vital categories of infrastructure, including healthcare. Payment of debt, mere loans, cannot be, to quote from William Shakespeare’s Merchant of Venice, “the pound of flesh” used to kill people. Tragically, since African nations liberated themselves from European colonialism, debt has been used as a weapon to repress the development of emerging nations.

On March 24, the office of the Ethiopian Prime Minister, Dr Abiy Ahmed, released an incisive three point proposal to the G20 nations outlining necessary actions to be taken to safeguard African nations during this pandemic. He began by dramatically stating the truth, “COVID-19 poses an existential threat to the economies of African countries. Our economies, fragile and vulnerable even in the best of times will face serious shocks.” He than discussed a crucial underlying constraint imposed on African nations, “the heavy debt burden, the servicing of which alone costs many of them [nations] significantly more than their annual health budgets.”

Prime Minister Abiy requested from the G20:

  • $150 billion “Africa Global COVID-19 Emergency Financing Package”
  • “Global Africa Health Emergency Package”
  • “Debt resolution and Restructuring Package.”

Elaborating on debt restructuring, Prime Minister Abiy wrote, “Ethiopia proposes all interest payments to government loans should be written off. We suggest the remaining debt be converted into long term low interest loans with 10 years grace period before payments. All debt payments will be limited to 10% of the value of exports.”

The theme of restructuring Africa’s debt to deal with the present crisis, was also discussed in a virtual conference of African finance ministers on March 19, according to the United Nations Economic Commission for Africa (UNECA).  To battle COVID-19, the ministers said, “Africa needs an immediate emergency economic stimulus to the tune of $100 billion” The UNCEA reports that they are asking that $44 billion, almost fifty percent of the funds requested, would come from halting payments of debt service, and in the most fragile nations to the loan principal as well.  African Finance Ministers Discuss Debt

In an insightful column, published in the March 25th edition of the Financial Times, Prime Minister Abiy again raises the necessity of debt alleviation: “Building on what has been announced by international financial institutions, the G20 must launch a global fund to prevent the collapse of health systems in Africa. The institutions need to establish a facility to provide budgetary support to African countries. The issue of resolving Africa’s debt burden also needs to be put back on the table as a matter of urgency.” (emphasis added)  PM Abiy “If Covid-19 is not beaten in Africa it will return to haunt us all”

 

Crowded Nigerian Market (courtesy buzznigeria.com)

 

Emergency Actions Taken

Nigeria—March 18, with 8 confirmed cases, imposed a travel ban on 13 high-risk COVID-19 infested countries; mandated a ban open worship and other public gatherings; mandated compulsory laboratory tests on all staff and members of the national assembly; mandated that public institutions should be equipped with temperature gauge.  All airports in Nigeria are closed to international commercial flights until 23 April.

Rwanda—March 21, with 17 confirmed cases of COVID-19, suspended all arriving and departing commercial flights for 30 days; shutdown of schools, universities, and places of worship for two weeks; the office of the Prime Minister released a list of nine preventive measures.

Ethiopia—March 23, with 11 confirmed COVID-19 cases, enforced a 14 day mandatory quarantine for all travelers entering the country; closed all schools, and banned all gatherings and sports events for 15 days. March 25, Ethiopian President Sahle-Work Zewde ordered that more than 4,000 prisoners be pardoned.

Senegal–March 23, declared a state of emergency.

Ivory Coast–March 23, declared a state of emergency, imposed a curfew from 9:00 pm to 5:00 am, and shut the country’s borders

South Africa—March 26, with over 900 confirmed cases, began a three-week nationwide lockdown; the lockdown is considered one of the strictest, banning alcohol sales, dog-walking, and jogging in public.

In response to the COVID-19 crisis, China has sent to the African Union, 2,000 test kits to be dispersed across the continent, and is expected to send another 10,000, along with medical supplies. China has also launched a new Health Silk Road. On Sunday, March 22, African Union received 1.1 million test kits, 6 million masks, 60,000 medical protective suits and face shields, donated by Chinese billionaire Jack Ma.

Lessons We Must Learn

We can and should learn the following lessons from this contagious and lethal virus. Decisions made by nations for securing their future can now be informed from the very painful consequences of the global spread of COVID-19. If society, had learned the principles of the science of physical economy, instead of being seduced by the “smell of money,” we might very well have been able to avoid the worst of the tragic effects of COVID-19, which continue to plague our planet.  An unprepared and underfunded national economy gives society little chance to deal with any serious crisis, much less a pandemic.

*Globalization has always been a trojan horse, an Achilles heel for the security of any nation. The idea that a nation should gamble its security on the premise of buying necessary commodities from anywhere in the world at the cheapest price was always insane.  Witness today’s disruption of multi-thousand mile long supply chains as proof.

For example, properly understood, feeding one’s population is a matter of national security. African nations have undermined their security and sovereignty by failing to be food self-sufficient. Procuring food from other continents or at great distances across Africa is not only foolish, but totally unnecessary given the fecundity of African soil.  By conservative estimates, African nations spend $35 billion on imported food. A colossal and senseless waste of foreign exchange, which contributes to a nation’s poverty.  And a poor-hungry population is fertile ground for orchestrated destabilizations. Nations are ordered by institutions like the World Trade Organization to buy their food at the cheapest price regardless of domestic consequences.

The alternative to globalization is obvious; each nation has the sovereign obligation to foster productive agriculture and manufacturing sectors. The current pandemic of the coronavirus has brought to the fore the perilous effects of nations dependent upon importing lifesaving products from other nations.

Africa’s huge infrastructure deficit has always been a killer for Africa; literally!  Many of my friends and critics alike have objected to my insistence that the most critical prerequisite for Africa’s development is infrastructure. The most essential human right, is the right to live, and to live as a dignified human being. That is impossible with pathetically low, in some cases, non-existent levels of infrastructure.

Hospital in South Africa (courtesy borgenproject.com)

*Healthcare infrastructure is a necessity to sustain longevity of life—the essence of a human right. It embodies all components of infrastructure, manufacturing, and agricultural industries.

Examine what is necessary to maintain a hospital. Abundant electricity for lights and machines, access to clean water, roads and rail lines to transport patients, advanced medical equipment, a manufacturing sector to produce all the products consumed by hospital staff, food production to feed patients and staff, colleges, medical schools to train nurses and physicians, clothing for patients and staff, protective gear, and the list goes on. Now ask oneself, how many hospitals are there per 100,000 population in Africa?  How many basic hospital beds exist? How advanced intensive care units? If you look at the chart in the link below, which admittedly is several years old, you can see the huge discrepancy in hospital beds per 1,000 people in Africa compared other parts of the world. Hospital Bed per 1,000 in Africa

In the years 2012-2013, the US had 2.9 beds per 1,000 people, Italy 3.9 and Spain 3. All these nations are now experiencing a shortage of beds and all are considered hot spots in this COVID-19 pandemic. Shockingly, in that same time frame, over 25 African nations were recorded to have 1 bed or less per 1,000.

In 1975 the U.S. had 1.5 million hospital beds, and today has 925,000-over half a million fewer. Today the US has an average of 2.5 beds per 1,000 people, and California, Oregon, and Washington have 2 beds or less per 1,000. By contrast, before the outbreak of COVID-19, Wuhan, China had 4.3 beds per 1000, and they have added 10,000 hospital beds since the outbreak began by building several new hospitals.

Think for a moment would kind of investment in infrastructure, production, and labor that would be required for African nations to even reach the insufficient US level of hospitals and beds. How many hundreds of thousands of megawatts of electricity would have to be generated to supply these new hospitals? How many million gallons of water would be required? Africa has never built up a minimum healthcare infrastructure and is woefully unprepared should the pandemic surge on the continent in the weeks and months ahead.

 As we are witnessing today, the West is suffering greatly from the deliberate slashing its own healthcare infrastructure over recent decades. This has been accomplished through austerity, shortsightedness, and an indecent obeisance to a desire to make fast-money by gambling on Wall Street.

*State government intervention has risen to the fore during this scourge of COVID-19, despite decades maligning the role of the state. It is now clear that contrary to the false claims that the state has no role in the world of neo-liberalism, laissez-faire, and unregulated free-trade, government supervision and government credit-debt to sustain people and the economy have proofed invaluable and lifesaving. Putting aside the multi-trillion dollar bailout to the global gambling casino known as the financial system, governments have issued emergency funds necessary to maintain society. Much more government intervention will be required to save lives in the weeks and months ahead.

Globalization (courtesy thegeopolitics.com)

 A New Just Economic Order       

Prime Minister Abiy’s column in the Financial Times beseeches the need for a coordinated global response to COVID-19:

 “There is a major flaw in the strategy to deal with the coronavirus pandemic. Advanced economies are unveiling unprecedented economic stimulus packages. African countries, by contrast, lack the wherewithal to make similarly meaningful interventions. Yet if the virus is not defeated in Africa, it will only bounce back to the rest of the world. 

That is why the current strategy of uncoordinated country-specific measures, while understandable, is myopic, unsustainable and potentially counter-productive. A virus that ignores borders cannot be tackled successfully like this.

We can defeat this invisible and vicious adversary — but only with global leadership. Without that, Africa may suffer the worst, yet it will not be the last. We are all in this together, and we must work together to the end.”

His comments implore the urgent necessity for an entirely different global approach to be taken by nations. We must absorb the horrible reality of today’s deadly crisis to motivate our passions to create a better future for civilization.

For humanity to survive, we can no longer tolerate living in a world governed a geo-political doctrine that views other countries crudely as either friend or foe, with winners on top and losers underneath.  We can no longer live in a system that values mere money above human life. Look at Sudan, whose people are suffering, while Western institutions led by the International Monetary Fund use Sudan’s $53 billion in (unpayable) debt as weapon to dictate their “reforms.”

Months before COVID-19, the United Nations asked for $135 million to fight the unprecedented Desert Locust threatening the food supply in Kenya, Somalia, and Ethiopia. The fund is still $100 million short of that goal. The UN has called the locust swarm in East Africa “extremely alarming.” Tthe current pandemic is affecting the ability for African nations to obtain the minimal equipment and pesticides required.

We must bring into creation a new model for governing. A new paradigm that values human life above all else. One that acknowledges the universal moral resemblance of all human beings.

The call for a New Just World Economic Order was first articulated in the 1970s and has been echoed for decades by world leaders. All foreign, domestic, economic policy should be formulated upon the recognizable principle that all people share a common aim and destiny. We, the human race, are unified by our endowed unique quality; the power of reason-creative imagination.  To resolve the multiple crises facing humanity, including a meltdown of the global financial system, it is urgent that an international conference be convened to establish a new template for economic and political relations among sovereign nations. The foremost underlying principle for such deliberations is acknowledging that the aspiration of all nations should be the elevation of human creative life. For all peoples.

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

 

Hunger Stalks Africa: Nations Should be Food Self-Sufficient

Desert Locust invade Ethiopia (Courtesy TESFANEWS)

February 27, 2020

Right now, as I write, two regions of Africa are experiencing food emergencies: East Africa and Southern Africa. This is a crime against humanity. There is no objective reason for starvation and malnutrition in this continent rich with arable land. Actions should be taken today, not tomorrow, to reverse this life threatening, but preventable food shortage. It is morally repugnant to witness so many human beings perishing due to the persistence of poverty, hunger, and disease in Africa.

On January 20th, the United Nations Food and Agriculture Organization (FAO) requested a mere $76 million to combat the spread of the destructive Desert Locusts.  A just released joint statement-UN Joint Statement on Locust in East Africa signed by several organizations, Locust in Africa: A Race Against Time, reports that since February, the locust swarms originally sighted in Ethiopia, Kenya, Somalia, have spread to South Sudan, Djibouti, Uganda, Tanzania,  and have reached the eastern border of the Democratic Republic of the Congo, which has not since a locust incursion since 1944.  With the expansion of the locust invasion, the FAO has doubled its request for emergency funding to $138 million, of which only $33 million, less than 25% has been collected of pledged.

In this region of the world the food supply is already so fragile that 20 million Africans are deemed food insecure. Experts estimate that a one square kilometer swarm of Desert Locusts can consume as much food as 35,000 people in one day, which potentially increases the number of food insecure Africans in this zone to almost 40 million.

The joint communique boldly states: “The next wave of locusts could devastate East Africa’s most important crop of the year, right when it is most vulnerable. But that doesn’t have to happen. The Window of opportunity is still open. The time to act is now.”

The statement concludes: “It is time for the international community to act more decisively. The math is clear, as is our moral obligation. Pay a little now, or pay a lot more late.”

Read: UN Joint Statement on Locust in East Africa

Read my recent post: End Threat of Locust Plague: Transform the Desert

 

Village women receive aid from a charity organisation in Chirumhanzi, Zimbabwe, File picture: Tsvangirayi Mukwazhi/AP
Village women receive aid from a charity organisation in Chirumhanzi, Zimbabwe, File picture: Tsvangirayi Mukwazhi/AP

Southern Africa

Simultaneously, on the Southern end of the Africa continent; Zimbabwe, Zambia, Angola, Lesotho, and Eswanti (Swaziland) are also facing shortages of food.

Journalist, Shannon Ebrahim, reports that “according the World Food Program (WFP), 7.7 million Zimbabweans are facing the worst hunger emergency in a decade…An astounding 90% of infants are malnourished and have stunted growth.” However, severe food shortages are not limited to Zimbabwe

“In Angola, 2.4 million are affected by food insecurity, where children are barely eating one meal a day. World Vision staff in Angola report they have never seen hunger and malnutrition on this scale.

“In Zambia, 2.3 million are facing acute hunger, and in Eswatini 24% of the population are suffering food shortages. In Lesotho, 20% of the population is food insecure

WFP regional director for southern Africa Lola Castro has said, “The hunger crisis is on a scale we’ve never seen before and evidence shows it’s going to get worse.”

Ebrahim writes, “As a result of drought, widespread flooding, and economic problems, 45 million people in southern Africa are facing food shortages.”

Hunger Can Be Eliminated

Droughts, locusts, and other disasters that contribute to food insecurity may not easily be prevented, but human intervention can mitigate and surmount so called natural catastrophes. However, there is no justifiable reason for hunger to persist in a continent of abundant, fertile, arable land.

Food self-sufficiency, which is a national security priority, in this age of out sized and exaggerated globalization, has worsened in the majority of African nations over the last several decades.  Not only does this jeopardize the health and existence of society, but it drains nation’s foreign reserves with mega-food import expenditures.

The most critical, essential, fundamental, and undeniable ingredient to a successful agricultural sector, as well as a manufacturing sector, is infrastructure.  It is the sine qua non for progress. Africa is suffering from a lack of infrastructure, particularly in the most crucial categories of hard infrastructure; electrical power and railroads. No concerned official in Africa or from a friendly government, who does not place their emphasis on energy and rail, is not helping African nations to develop. No NGO activist, no matter how sincere, who does not advocate for such infrastructure is not truly helping Africans to free themselves from the shackles of poverty, hunger, and disease.

I do not make these statements lightly. Without massive construction of hard infrastructure, African nations will not have productive agricultural and manufacturing sectors capable of producing the physical goods necessary for society’s continued existence. This is a scientific-economic reality.

Why are trees being cut down across the Sahel? To provide firewood and charcoal for cooking. This is foolishness. Trees are one of the best means to reverse the march of the desert. However, trees are being cut down, because homes do not have access to electricity and gas. If a portion of the tens of billions of dollars being spent on “global warming” were spent providing electricity to the nations of the Sahel, the counterproductive practice of charcoaling would be eliminated. If we built the decades’ overdue East West railroad, along with irrigating the desert (again energy) we could, can, transform the desert.

Why should over 100 million Africans face food insecurity on this rich African continent? The truth is; there is no acceptable reason. Our own lack of action speaks volumes.

Read: Zimbabwe is Facing Starvation

Read my article below from March 22, 2017 

Famine in Africa: More Than Humanitarian Aid Required