Nigeria Expands Railroads and Strives for Self Sufficiency in Rice

Positive Developments for Nigeria : Railway  Infrastructure and Value Addition in Agriculture

Bellow is a very informative article by my colleague, PD Lawton, creator of the website AfricanAfenda.net, on Nigeria’s expansion of its railroad network and its policy to become food self sufficient. 

11 July 2021

Under the visionary leadership of President Muhammadu Buhari, Nigeria has become a key African partner in the Belt and Road Initiative. The benefits of Nigeria`s participation in the BRI are outlined in this article:

https://www.vanguardngr.com/2020/01/how-chinas-belt-and-road-initiative-affects-nigeria-africa/

President Buhari has said that Nigeria cannot be seen as an island, that the country will never have peace and prosperity while its neighbours live in poverty.

In saying that, he expressed the spirit of the New Silk Road, the Belt and Road Initiative, and the ethos of a shared future for mankind.

It is for that reason that President Buhari has championed extension of the railway into Niger.The Nigerian Railway Modernization Project will revolutionize national and regional trade.

https://railbus.com.ng/index.php/events/kano-maradi-railway-buharis-new-corridor-linking-sahelo-sahara-with-nigerian-coast/embed/#?secret=rRVmDJ7xaw

The railway network will be extended to Maradi in Niger which is one of the landlocked neighbours along with Burkina Faso and Chad who currently only have road access to sea ports in Accra in Ghana, Cotonou in Benin and Lome in Togo. In September 2020, the Nigerian government announced the funding of $1.9 billion to construct the 250km line from Kano to Maradin, a village in Niger. In Maradin, warehouses will be built for cargo.

As of the 12 January 2021 the contract for the $1.9 bn line from Kano -Maradi has been signed with Portuguese construction firm Mota- Engil.

https://railbus.com.ng/index.php/events/nigeria-signs-1-9bn-contract-for-kano-niger-railway-line/embed/#?secret=duHYGRBMQq

For centuries the trans-Saharan trade route went from Maradi to Kano and was prosperous until colonialism and more recently destabilizing forces changed such fortunes. The original city of Maradi is ancient , dating back thousands of years to the time of the Silk Road.

The remaining section from Maradin to Maradi will be financed and built by Niger.The contractor for the Nigerian line is a Portuguese company (Mota-Engil). The line is being financed by two European banks.

The government has been heavily criticized for extending the rail network beyond its borders.The Kano-Maradi line goes from the northern capital, Kano, across the border into Niger to the town of Maradi which has a population of 267,000.

The critics say that Niger has nothing to offer. There are cities in Nigeria that have a higher income than the entire Niger State, which is geographically larger than Nigeria but mostly desert and desperately poor.The critics say why help Nigeriens when Nigerians are suffering ? The government is being accused internationally of trying to capture the trade that currently goes to the port of Cotonou in Benin and of favouring the Muslim north of Nigeria to garner popularity for President Buhari`s APC ( All Progressives Congress) party. So why extend the line to Niger?

Because Africa must unite.

Apart from gold deposits, Niger is considered to have only one asset, uranium.Since 1968, Areva, an 80% French state-owned corporation has obviously been the main beneficiary in a partnership which is definitely not `win-win`. Niger is the 4th largest uranium producer globally. It has high grade deposits. Areva ( now called Orano)pays 5.5% tax and royalties to the Nigerien government. When asked to raise this pathetic ammount, the extraction plant ceased service for a number of weeks and the tax rate remained unchanged.

Image : African arguments. Resident of Arlit sells the daily ration of water.

https://africanarguments.org/2017/07/18/a-forgotten-community-the-little-town-in-niger-keeping-the-lights-on-in-france-uranium-arlit-areva/

Mining in Africa is dominated by the City of London extractive interests. The level of tax and royalties paid to government is consistently low. Glencore Xstrata is one of the main culprits

Uranium is mined near the towns of Arlit and Akokan, 1200 km northeast of the capital, Niamey, on the western range of the Air mountains. The mined ore is transported by truck 1600 km to Parakou in Benin, from where it is transported by rail, 400 km to Cotonou Port and then exported.

Between them, Niger and Namibia, two of Africa`s most arid and impoverished countries, could be supplying all of Africa`s uranium, not if, but when, the continent turns to nuclear power. However, uranium should not be regarded as Niger`s primary asset. Instead we should regard the 23 million Nigeriens as the source of true wealth because it is they, given the creative freedom from absolute poverty, who have the potential to transform the economy of their country.

The African Development Bank is funding a program to strengthen Niger`s rural economy. Food shortages, malnutrition and outright starvation are a permanent situation for the majority of Niger`s rural population. In 2013, only 8% of the population had access to electricity. 82% had no access to sanitation. As of 2020, 15% of people have electricity. According to World Data, Niger has an annual energy consumption of 1.07 billion kWh which is 46kWh per person per year. Life expectancy is around 60. There are no railways at present.

If China has elliminated absolute poverty in one of its poorest and dryest regions, the Uygur Region, there is no reason at all why it cannot be done in a country like Niger, provided that Africa as a whole, adopts the Chinese methods of developing the physical economy.
Niger is a partner in the BRI. On a State visit to Beijing in 2019, President Mahamadou Issoufou and President Xi Jinping agreed to strengthen ties within the framework of the Belt and Road Initiative,stressing the importance of carrying out key projects in infrastructure, people’s livelihood, energy and agriculture. China has also committed to assisting Niger with technology and skills transfer in all fields including building a modernized health care system.

http://www.xinhuanet.com/english/2019-05/28/c_138097788.htm.

NUCLEAR ENERGY FOR NIGERIENS

To the critics of the Kano-Maradi railway we can say that maybe `today` Niger has little to offer but `tomorrow` it will be the Sahelian Region`s largest energy exporter and it will be Niger that powers industry from Mauritania to Sudan!

In 2015, as part of the Niger Renaissance Programme, the government hosted a conference in Niamey, capital of Niger, to initiate a national nuclear power program under the umbrella of the West African Integrated Nuclear Power Group (WAINPG) to study the feasibility of regional nuclear power capability.

The Nigerien High Authority for Atomic Energy (Haute Autorité Nigérienne à l’Energie Atomique (HANEA) have submitted Phase 1 of the feasability study to the IAEA. This was done in 2018. Japan has assisted in the funding of the proposal.

IAEA -Niger: Integrated Nuclear  Infrastructure Review (PDF)

Niger, despite being arid. does have plentiful rainful around the Niger Delta but the rain is torrential for a period of weeks often leading to flooding. The government have built dykes but even these failed recently under the volume of water. Not only did this cause loss of life, homes and livelihoods for thousands, but many rice fields and granaries were ruined further contributing to food shortages.

NIGER AND BEYOND

The African Integrated High Speed Rail Network ( AIHSRN) includes a link from Lagos to Algiers which will directly link the Gulf of Guinea to the Mediterranean. The route traverses Niger which will be of immeasurable value to the economy of Nigeria, Niger and Algeria and will contribute greatly to the stability of the Sahel region.

Nigeria’s Minister of Transportation, Rt Hon Chibuike Rotimi Amaechi, conducted many interviews with the Nigerian press during the this year`s 60th Independence Anniversary in which he said:

Last week, we awarded the contract for Kano to Maradi and people were screaming why are we taking it to Niger Republic. It’s important to take it to Niger because of economic reasons. Most coastal territories in Africa are competing better than us in terms of cargoes coming from not the hinterland, the landlocked countries. “We decided to join the market and compete so that we can make our seaports very viable. We decided to introduce the Kano-Maradi rail so that we can convey their goods from Maradi (a boundary village) to our ports with ease. I don’t know why people are screaming about it. It’s about economics, not politics.

You should know that railway generates employment and that as you move from Kano to Maradi you’re going to to go to Kano, Dutse, Kazaure, Daura, Katsina, Jibia before you get to Maradi, imagine the number of persons that you’ll create jobs for just at the beginning of the construction. “At the end of construction, imagine the number of businesses that you can site along with that area just because there is transportation. So when you talk about timing, poverty doesn’t have timing, unemployment is causing insecurity and banditry is a product of poverty, not just lack of education. So you have to find an alternative to those who participate in banditry. “So what we are trying to create is a source of growing the economy of Nigeria and creating opportunities for those who want to do real business, so they’ll be able to move their manufactured goods and reduce the cost of production around that area. That’s what we are trying to do.

NIGERIA`S NATIONAL MODERNIZED RAILWAY NETWORK

The Nigerian Railway Modernization Project, will connect Lagos in the south west to Kano in the far north, by standard gauge railway.The modernized national rail network is around 3000 kilometers in length and of standard gauge. It will connect all major cities and link to the ports. The network will link to Niger.

It is replacing and expanding on the old colonial era narrow gauge system which was slow, inefficient and by 2013 all but collapsed with only the Lagos to Kano ( south to north) line operational. The average speed was 45km/h and the journey took 31 hours. With the completion of the Lagos-Ibadan line, that leg of the journey now takes less than 2 hours!

In 2006 an agreement was signed with the China Civil Engineering Construction Company for $8.3 billion. The entire project will cost $36 – $40 billion.The CCEC has, over the last years, constructed the Abuja-Kaduna Railway , Abuja Mass Transit Railway, Itapke-Warri Railway and now the Lagos-Ibadan line. The project, which is funded by China`s Exim Bank and the Nigerian government, is being built in segments to spread the cost over time.

The new metro light rail system in Abuja will be connected to the National Rail Network. Abuja Airport is also connected to the new metro network and the city centre (Abuja’s Central Business District). The Abuja Metro is the first light rail system in West Africa. The metro relieves traffic congestion, is reliable, fast and safe, and cheaper than local taxis.The metro will link Abuja with the towns of Nyanya, Kubwa, Mararaba and Lugbe in the near future.

Expansion is planned for the ports at Lekki and Bonny to make them deep water harbours of between 17 -18 metres deep. A new river port will be built at Warri and Ibom.

Lekki Port expansion is under construction. It will be Nigeria`s deepest sea port and is situated in the Lagos Free Trade Zone. It will be one of the most modern in West Africa. Minister of Transport, Chibuike Rotimi Amaechi, has tasked the project managers with commencement of commercial activities by 2022.

The Port Harcourt-Maiduguri rail line will link the north eastern region to the eastern sea port of Bonny which has been approved already, work will commence soon. From Bonny the line will go to Port Harcourt – Aba- Umuahia – Enugu – Makurdi – Lafia – Jos – Kafanchan – Bauchi – Gombe – Damaturu, and Maiduguri, with a spur from Port Harcourt to Owerri.

According to the Transport Minister Amaechi :

Where we have about two seaports or river ports in Port Harcourt, you’ll be able to transport a lot of Iron Ore deposits from the North East through the Port Harcourt – Maiduguri rail. The completion of this project which we hope that if it doesn’t start this year, will start the first quarter of next year, the completion, will move cargo, create employment, create industrial development and it will grow the economy.

Transport Minister Amaechi explained that ports and rail work together:

Currently, Nigerians move about 30 million cargoes between Lagos and Kano in a year. The capacity of the Nigerian Railway Corporation as of today is about 200,000 cargoes per year. That’s appalling. So, if you want to make the factors of production to be cheap and make our goods competitive, then you must provide logistics, either the road, by air or by railway. But the cheapest form of transport in this regard is the railway because it’s subsidised by the government. So the idea of complying with the instruction by the president that all railways must terminate at the seaport is because you want to move your cargo. The moment you begin to move cargo, you’ll see the transformation. The movement of cargo will improve the industrial development of Nigeria.

The Lagos to Calabar line will run along the coast.  It will be 1,400 km and will link all the key sea and river ports.It will run from Calabar – Uyo – Aba – Port Harcourt – Yenogua – Otuoke – Ughelli – Warri – Sapele – Benin – Ore – Ijebu-Ode – Lagos.

The Abuja to Kaduna rail line is completed and in service since 2016. It is 186km long. Itakpe-Warri line is completed which is 326 kilometres long.

The Lagos-Ibadan line is the first double-track standard gauge modern railway in West Africa.It is 156km long. Track-laying of the high speed standard gauge railway from Lagos to Ibadan was constructed  by the China Civil Engineering Construction Corporation (CCECC). The project was started in March 2017. The line is now in service and has 10 stations.

The main station is in Lagos and will act as the operations centre as well as a passenger terminus. Initially 3 pairs of trains will run each day. The maximum capacity that the project is designed to accommodate is an incredible 15 pairs (inward and outward bound) per day!

The building which is still under construction, will be a colossal 11,200 square meters. It will be the largest railway station in West Africa with a capacity for 6000 passengers. It was hoped that the building will be completed by the end of 2020.

Investment in infrastructure leads to the growth of ancillary industries. In the case of the Nigerian Railway Modernization Project, a new factory in Kajola, Ogun Province is just one example. The factory will bring an initial 5000 jobs and will be manufacturing the rolling stock for the new, modernized railways. It will then proceed to supplying the rest of West Africa and beyond!

https://www.waystocap.com/blog/which-country-is-the-largest-producer-of-rice-in-africa/

Nigeria: Value Addition in Agriculture

In 2015, Nigeria initiated the Value Chain Development Program that is improving cassava and rice value chains for small farmers in targeted districts The program aims at increasing productivity in the staple sector, increasing food production and thereby reducing poverty.70% of Nigerians live in rural areas and are small farmers who produce 90% of the nation`s agricultural products. Dire poverty in Nigeria is mostly in rural, agriculture-based communities and it is these communities that the government are targeting.

According to the Nigerian Statehouse website:

https://statehouse.gov.ng/policy/economy/economic-recovery-and-growth-plan/embed/#?secret=vA1V5dnDqY

“The Economic Recovery and Growth Plan (ERGP) is a Medium Term Plan for 2017 – 2020, developed by the Administration of President Muhammadu Buhari for the purpose of restoring economic growth while leveraging the ingenuity and resilience of the Nigerian people – the nation’s most priceless assets.”

The program aims to put the oil-based economy on an entirely different trajectory to transform the economy and thereby alleviate poverty.Key components are the Nigerian Railway Modernization Project which is part of the Nigeria Integrated Infrastructure Master Plan which includes the construction of new, or modernization of existing, ports, bridges and road networks.

According to the Statehouse website:

“This Plan will use science, technology and innovation to drive growth. It also provides a blueprint for laying the foundation for future generations by focusing on building the capabilities of the youths of Nigeria to be able to take the country into the future.”

“Using agriculture to achieve food security, create jobs and save foreign exchange for food imports. Plans are already in place for national self-sufficiency in rice by 2018 and wheat by 2019/2020. Successful harvests will contribute in reducing inflation and promoting economic diversification.”

The Nigerian Agricultural Transformation Agenda was initiated in 2013. It is a program to alleviate rural poverty and increase production.Since the discovery of crude oil, IMF`s globalist policy has been to advise on oil export and food import which over the years harmed the country`s agricultural industry with cheap foreign imports having a negative effect on domestic production.

Rice self-sufficiency had reached 84% by start of 2019. Government and private sector initiatives have provided support,credit,training and seed, along with even distribution of rice milling (polishing) plants across all regions.

Mechanization solutions and the case for small modular processing plants are some of the innovative ideas being pushed by Richard Ogundele, CEO of JMSF Agribusiness Nigeria, a key player in the agricultural transformation program. According to him:

Another thing that we could see working here, is SME (Small and Medium Enterprises) branding. The farmers who grow them and the processors at that lower level, need to understand quality assurance from the start to the market end. And that`s where branding comes in, packaging, handling,storage and distribution. So opportunity for logistics is also there. Logistics in agriculture is still a challenge across Nigeria, storage, transportation, packaging, handling. We need improvements in this value chain service provision area. So if anyone is interested in this sector, we can always guide them and talk it through. And of course there will be the multiplying effect on the economy because more jobs will be created along the value chain for those who will be offering services to the core operations within the sector.”

Infrastructure, including water infrastructure, is having an immensely positive effect on production.

Nigeria is currently the largest rice producing country in Africa.

This is largely the result of conscientious efforts by the current administration to place more emphasis on agrarian production. The move was aimed at reducing the nation’s over reliance on oil which has in the past year proved economically devastating as oil prices plummeted on the global market.

The government is also keen on improving the country’s self-sufficiency and reducing the commodity’s import burden that currently runs into almost $400 million annually. Rice farming in the country has received a boost from the local central bank through the Anchor Borrowers Program that avails loans and distributes requisite tools to farmers to boost production.
By the end of 2017, the Federal Ministry of Agriculture director claimed that the country had indeed reached self-sufficiency in the commodity. According to a report from the ministry, the country’s production capacity had reached 15 million metric tons. This would translate to major savings as the country would no longer need to import the commodity.
The country in fact consumes about 8 million tons, a figure that rises by about 6% annually. It is therefore projected that with around 34 states involved in rice cultivation the country would have a surplus for export by the year 2019. The country is taking steps to control the rampant smuggling that has had a negative impact on local market prices.

Source:

Rice is the Nigerian staple. Local Nigerian varieties of rice are found to be of a higher nutritional value than imported rice.The local rice is not as highly polished which increases nutritional value and it consumed fresher compared to imported rice which can be many years old.

Nigeria`s self-sufficiency policy has caused `rice wars` with international exporters flooding the market with super cheap, low-quality produce. This has resulted in a series of protests from within the country as people demand cheap rice. It has been difficult for the government to convince the nation that by supporting the domestic market, they will have a better product which will become cheaper over time as production increases.

The black-market for rice is a continuing problem as Nigeria`s expansive borders are porous and rice is routinely smuggled across from Benin.

In September 2020 the government stopped tomato imports and has adopted a similar tactic to boost tomato production by value adding and processing into puree, thereby supporting domestic tomato growers and to encourage job creation.

The Nigerian government recently announced the release of funding for 300,000 new affordable homes which are to be built with 90% local materials, further supporting the national economy.

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

“HARD INFRASTRUCTURE IS WHAT WE NEED TO GET OUT OF POVERTY.”

Watch the video interview below with Olawale A-Rasheed, CEO of Abuja, Nigeria-based African Railway Consulting Ltd, who provides an excellent discussion of Africa’s needs for massive railroad construction.

The Silent Revolution in African Rail

2 June 2021

In this new podcast of the Belt and Road Institute in Sweden (BRIX), host Hussein Askary discusses with our guest Olawale A-Rasheed, CEO of Abuja, Nigeria-based African Railway Consulting Ltd, the current situation and future plans for railway connectivity in the African continent. We try to answer the following questions: – What is the status of transport sector in Africa, West Africa, and Nigeria? – What projects are completed, under construction? Who is building them? – What are the plans to develop this sector? Trans-African High-speed rail? – What is the role of China and the BRI in this process, and what can the U.S. and Europe contribute to it? Why they should learn from China in focusing on building the hard infrastructure in Africa? – There are many initiatives proposed by the U.S., the UK, and the EU to “rival” the BRI and China in Africa. Are these realistic? Wouldn’t it be better if the West and China join hands with Africa to reach the development goals? Mr. Rasheed is also the Director of the African Rail Roundtable and editor of the specialized magazine Rail Business (http://railbus.com.ng/)

“The real friends of Africa now are those trying to bridge the infrastructure deficit…..China has done it. It has pumped billions of dollars into the Belt and Road Initiative. Now, whatever critisism they have on that initiative, it has helped Africa. It has opened up Africa and it has challenged the world, that to be a friend of Africa, come and help us to build roads, bridges, have vision, high cities, power, and all those. So it is a clarion call to all friends of Africa in the West, East, Asia that HARD INFRASTRUCTURE IS WHAT WE NEED TO GET OUT OF POVERTY.”

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

Prime Logue/Media Interviews Lawrence Freeman in Addis Ababa: “Without the Elimination of Poverty, There Will Be No Democracy in Africa”

May 10, 2021

On April 30th. I was interviewed in Addis Ababa by Prime Logue/Media for an hour. The interview is separated into four parts.

For those of you who do not have the time to view the entire interview, I would suggest you watch Part 4-16 minutes long. Here, I outline my development policy for Africa. In this, the 22nd century, the African continent will be the focus of strategic policy for the world. My policy starts from recognizing the uniquely human power of creative reason. The key question for policy makers should be how do we develop human beings. True democracy, cannot flourish unless and until poverty is eliminated. The nation state must be strengthened to provide for successive generations of its people. “The leadership of the U.S. does not understand, or want to understand, that the key to  supporting Africa is development.”   

Topics discussed in Part 1 include: Nigeria, refurbishing Lake Chad, Lalibela, Tigray, humanitarian assistance, Covid19 vaccinations in Africa.

Topics discussed in Part 2 include: poverty, developing Ethiopia, the nation-state, regime change in Libya, TPLF attack in Mekele, genocide, human rights.

Topics discussed in Part 3 include: US-Africa policy, flaws in Ethiopia Constitution, GERD, Egypt, Ethiopian identity, June 5 elections.

Topics discussed in Part 4 include. Slavery, colonialism, neo-colonialism, reason, agape, food, electricity, desperation, jobs, ICC,

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

Interview with Lawrence Freeman: Developing Africa Will Elevate the World to a Higher Economic-Political Platform

Watch the interview

April 10, 2021

Watch the above interview with Lawrence Freeman. It is a far reaching discussion that elaborates the importance of infrastructure led development polices for Africa. It highlights  the Transaqua inter-basin water transfer project that will not only reverse the shrinking Lake Cad, but will transform the entire Lake Chad Basin, improving the living conditions for millions of Africans. The conclusion of the interview discuses the significance of the African continent for global development over the next one to two generations. Essential, Africa is the new frontier on the planet earth.  Freeman proffered that if the United States would collaborate with China in leading an infrastructure driven economic transformation of Africa, hunger and poverty could be eliminated.  This would also shift political relations among nations away from the destructive doctrine of geo-politics to one of a common shared development of humankind.

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

The Truth: It is good that China Is Investing in Africa’s Energy and Transportation Infrastructure

The Truth: It is good that China Is Investing in Africa’s Energy and Transportation Infrastructure

Lawrence Freeman

April 8, 2021

Below are two articles examining China’s investment policy in Africa that should be read to learn the truth about China’s lending to the continent. One, is a briefing paper from China Africa Research Initiative (CARI) entitled, Twenty Years of Data on China’s Africa Lending. The second is entitled, “Why Substantial Chinese FDI is Flowing into Africa, by Shirly Yu. Combined, both papers provide a thorough analysis of the positive contribution of Chinese investment in Africa, surpassing the United States in all categories. As  many African leaders know, without China’s contribution to Africa’s development, especially in infrastructure, Africa would be worse off. There is absolutely no indication that the U.S. and the West would fill that void.

It is undeniable that China has invested heavily in the development of Africa over the last two decades. Ignore the claptrap allegations of a deliberate Chinese debt-trap policy to seize control over Africa’s resources. It is nonsense and has not happened; not once, not in a single African nation.

According to CARI’s data base, from 2000-2019, China has made $157 billion in loans to Africa. Of these 1,077 loans, 85% have been in categories of infrastructure, of which 65% have been in energy and transportation. According to CARI, only 13% of Africa’s debt is owed to China. The largest portion of Africa’s debt is owed to multilateral institutions at 32%, followed by loans from private bond holders. Outside of Angola, only 8% of Chinese lending was for resource backed loans. 90% of the contractors in Africa from China are private Chinese companies, not state owned enterprises (SOEs). Also, 90 % of Foreign Direct Investment (FDI) is from private Chinese companies, although SOEs are the largest investors in Africa in total value.

President Biden has recently suggested that the U.S. and Europe should lead a western version of China’s Belt and Road (BRI). If it were to be as productive as China[‘s (BRI), African nations would benefit greatly, especially in this challenging economic period.

Excerpts from Shirly Yu:

“Make no mistake, Chinese state-owned enterprises (SOEs) are still the largest investors in Africa by value and continue to dominate the energy, transportation and resources sectors due to the strategic nature and long-haul return of these investments. For instance, one third of Africa’s power grid and energy infrastructure has been financed and constructed by state-owned Chinese companies since 2010. China is the most significant foreign contributor through SOEs and state-owned banks to Africa’s energy development.

“By 2034, Africa’s labour force is forecast to surpass that of China and India combined. By 2050, the African population is expected to be 2.5 billion, while China’s population will decline to below 1 billion. With these figures in mind, Africa’s young labour force is exactly what China’s labour-intensive manufacturers seek today.”

Read: Why Substantial Chinese FDI Is Flowing into Africa

Excerpts from CARI:

IN 2000, WE RECORDED ONLY three Chinese lenders, financing 14 projects, with an average value of just US$ 10 million. Over the next 19 years, over 30 Chinese lenders would commit loans to African governments and state owned enterprises. Since 2010, Chinese financiers have financed an average of 71 projects per year, at an average value of US$ 180 million.
The four biggest Chinese banks involved with lending to African countries are China Eximbank, CDB, ICBC, and BOC. China Eximbank–which is China’s official export credit agency, and also the only bank offering government
subsidized foreign aid concessional loans–is the largest and since 2000 accounts for 56 percent of all loans.

Read: Twenty Years of Data on China’s Africa Lending

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

 

‘Green Energy’ Means More Economic Misery for Africa

March 19, 2021

Gyude Moore, former Liberian Minister of Public Works, has published an superbly perceptive article on what the “green-decarbonization” of energy means for Africa: Economic growth in Africa will not be achieved by a ban on fossil fuels. (See excerpts below)

Many years ago, I reached the same conclusions as Mr. Moore; without abundant affordable energy, Africa will not develop, it will not eliminate poverty.  African nations need energy, lots of energy, at least 1,000 gigawatts more energy to advance their agricultural sector and industrialize their economies.  Shutting down existing fossil fueled energy or limiting future energy production to “green energy” will not only retard economic growth; it will increase poverty and kill Africans. If I may be granted a poetic license, I would say, a green energy policy for Africa will lead to a black death.

Let me interpolate my perspective on so called green energy, which  goes beyond Mr. Moore’s excellent analysis.  I find no convincing evidence that human activity is causing climate change. Rather, it is geological and astronomical cycles pertaining to our Sun and our solar system that is the primary cause of changes in our climate. Just ask yourself, how many ice ages and warming periods has our planet experienced over the last one million years before anthropomorphic activity emerged?

Unfortunately, our culture has adopted a false belief system about the nature of human beings that was revived in the 1960s under the slogan of “limits to growth.” This belief structure advocates the necessity of limiting the number of human beings and reducing human activity, guided by a false conviction that the planet is running out of resources.

This is a warmed over version of the population reduction theory espoused by the wicked Parson Thomas Malthus (1766-1834). Even though the Malthusian dogma proclaims that human population growth will exceed the resources of the planet, has been proven wrong, again, and again, Malthusianism never seems to die.

There are two principal  fallacies of this view. First, there are no fixed resources. As humankind discovers new scientific principles of the physical universe, new resources of energy are discovered, such as coal, gas, oil, nuclear, and of course electricity itself.  Second, the physical universe, which is a growing organism, is well-ordered to respond to the creative mental powers of the human mind. In scientific terms, both the universe, and the human creative mind, intrinsically cooperate in anti-entropic growth, i.e., continual expanding development. As the great philosopher, Gottfried Wilhelm Leibniz wrote, there is a pre-established harmony of causality between the mind and physical substance. When we humans exercise our creative potential, we are in harmony with universe, not antithetical  to its environment.   

Sadly, for civilization, western culture, has adopted a prejudicial view of the human race itself, viewing it as an inherently evil monster wantonly destroying the environment. The folly of the “New Green Deal” as it is called, will hurt the United States, Europe, and the entirety of the advanced sector. However, for African nations  and other developing nations, it will have deadly effects sooner.

 

Nuclear energy for Africa: Fulfilling Eisenhower’s dream
Nuclear energy for Africa: Fulfilling Eisenhower’s dream.  Atoms for Peace. (Courtesy of cfact.org)

The Grand Ethiopian Renaissance Dam (GERD) is needed to come into operation post-haste for Africa to progress. The GERD has the capacity to generate over 6,000 megawatts of electricity, which could be added to the East African grid in the coming two to three years . There are other hydro-electric dams being constructed in Africa. There should be no holding back on constructing as many new power plants of all types, as quickly as possible to expand African’s access to electricity. Over 600 million Africans have no access to their nation’s electrical grid. Plus, for African nations to build their manufacturing sectors, industrial consumption of electricity will have to dramatically increase. Nuclear energy, presently fission, and in the future fusion, is the most efficient source of power for Africa. Almost one third of the continent’s nations are presently involved in various stages of acquiring nuclear energy plants. African nations should give the highest priority to securing production of nuclear energy.

(See link below for presentation of nuclear solution)

Excerpts from Gyude Moore:

“Africa has many of the poorest people in the world. For most African countries, the priority is economic growth — first in agriculture, where much of the population still works, and then in industry and services. Worries of an increased carbon footprint generated from economic growth are second to worries that growth may not happen at all

“But people in poverty don’t just need to power a single lightbulb at home; they need abundant, affordable energy at work too. Energy is essential to creating productive agriculture systems, as well as to the expansion of economic opportunity in cities, factories, and modern industries. African countries need energy to grow, and to eliminate poverty — and they can’t do it with small-scale green power projects alone.

“Africa’s first priority is to grow more food. Composting and recycling can only go so far — farmers need synthetic fertilizer to raise yields, and natural gas is the most efficient energy source for fertilizer production… 

“Poor farmers in Africa need much better access to irrigation… Large scale, energy-intensive water control projects that rely on fossil fuels must be in the mix — just as they are in wealthy countries.

Domestic food supply chains provide the vast majority of food across Sub-Saharan Africa, but they’re hampered by poor roads and the unreliable fuel supplies. Construction of much-needed roads requires energy and the transportation sector as a whole remains almost entirely dependent on oil and gas.

“Beyond agriculture, a continuous supply of power from the grid is critical for expanding factory production. Countries like Ethiopia, which have ambitions to become manufacturing powerhouses, are increasingly looking to China for the construction and operation of large-scale power projects that will provide reliable electricity. Off-grid technologies are useful for extending basic energy services but cannot power the industrial activity needed to create millions of jobs and drive economic diversification. There is no world in which Africa can meet its energy needs with carbon-neutral power plants and off-grid solutions

“The continent’s needs are too great to be met solely with current energy technologies…” (all emphasis is added)

Read: Economic growth in Africa will not be achieved by a ban on fossil fuels.

Biden’s Climate Plan Has a Nuclear Solution

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

US Can Improve Relations With China by Adopting a Joint Mission: Assisting in Africa’s Development

March 12, 2021

This article, Towards an Improved US-China Relationship, by Stephen Hayes, former President and CEO at the Corporate Council of Africa, suggest a pathway for the new administration of President Biden to improve U.S.-China relations, which thoughtfully involves Africa.

The following suggestion by Hayes is an important contribution to improving relations between the two super-powers. One that I have advocated for years: collaboration on the urgent task of developing the African continent. If this common mission is adopted by statesmen in both nations, there is no challenge that can’t be surmounted.

“It is simple but also perhaps simplistic to propose that both countries work together in a third country or region to aid the development of that country or region. To do so, both countries should have some common goals as to why they would want to work together. In Africa, there needs to be close communication in aiding and abetting the fight against terrorism, perceived as a growing problem on the continent. While there has been some cooperation in this area between the two countries, at least behind the scenes, that cooperation has diminished these past four years. The US perceives terrorism as a major issue in Africa and will likely base much of its development approach for the next four years on this perception. China has similar concerns, but they likely are not as deep as those of the United States. Nevertheless, common security concerns do provide a basis for cooperation. Economic development of a country is also in the interests of China and the United States, but may require much more effort in finding common ground. Working through regional economic groups in Africa on continental infrastructure projects may be another area of mutually beneficial cooperation.” (emphasis added)

It is unclear whether the Biden administration will continue the increasingly antagonistic posture towards China that the Trump presidency adopted. Anti-China group think has gripped both parties in the Congress, and a good portion of the American population as well. The driving force for this potentially dangerous attitude, is the ideology of geo-politics, which reduces the world of nations to winners and losers in a zero-sum game. The alternative is to recognize the shared common interests of all nations and all human beings. The material and intellectual development of human beings, all of whom uniquely possess the power of creative thought, is in the interest of every government. Humanity benefits when nations collaborate to end poverty and enrich the lives of those suffering from economic hardships.

Over four hundred million Africans live in poverty-less than $1.90 per day, and the number is increasing each year. The African continent has the greatest deficits in hard and soft infrastructure of any continent in the world. The shortage of electrical power is literally killing Africans every day. Through China’s Belt and Road Initiative, infrastructure is being built in numerous African nations, but is woefully insufficient for the needs of Africans.

Rather than the U.S. viewing China as an adversary in Africa and defining U.S. policy towards Africa as “countering China,” let us take a more elevated approach. Let President Biden announce that the U.S., with its great economic potential, will collaborate with China in developing Africa and eliminating poverty across the continent, in the next one to two generations. In reality, this cost the U.S. nothing, and the benefits are more than rewarding. Through the issuance of credit for vitally needed infrastructure throughout African nations including projects for: electricity, roads, railroads, schools, airports, healthcare, housing, and water management, the lives of billions of Africans will be transformed. In return, Americans will know they have contributed to the wellbeing of their brothers and sisters in Africa. With the elimination of poverty, the fertile swamps of wretched economic deprivation from which violent extremist groups recruit alienated and desperate youth, will be drained. The spread of terrorism on the African continent will be reversed and over time diminished. AFRICOM, can shift its focus to applying the skills of the Army Corps of Engineers for construction of dams, bridges, and roads. Economically, the pay back for long term, low-interest credit, will be huge. Africa’s growing population, projected to reach 2.4 billion in one and a half generations, will become a large and expanding market for American goods. As African nations experience economic growth, they will be trading with the U.S. for technologically advanced capital goods necessary for the continuous development of their economies.  As the Chinese say, it will be “win-win” for Africa, the U.S., and China, and truthfully, for all nations on our planet.

I give my full-throated support to Steve Hayes’ proposal for China and the U.S. to work together to develop African nations as a means of improving U.S.-China relations.

Read: Towards an Improved US-China Relationship

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

Celebrate Ethiopia’s March 1, 1896 Victory at Adwa: Ethiopia is Fighting Another Battle Today to Protect its Sovereignty

Ethiopia’s victory against Italy at Adwa on March 1, 1896, profoundly shaped the future of Ethiopia.
Celebrate Ethiopia’s March 1, 1896 Victory at Adwa- A Victory For Africa and All Nations

February 28, 2021

This article below was first published in the March 2017. If you read the headlines of  the European press following Italy’s defeat on March1, 1896, you will see that this battle shook the foundations of European Imperialism to its core.

Today, Ethiopia is engaged in another battle for its sovereignty, no less vital than the Battle at Adwa 125 years ago. The Ethiopian nation-state is a physical unitary reality that embodies an essential concept of national identity, which transcends ethno-nationalism. Unfortunately, there are times when it is necessary to wage war to preserve the nation state, which represents the interests of all Ethiopians. Without a functioning sovereign nation-state, society cannot provide for its citizens and for future generations. In the spirit of the victory at Adwa, all Ethiopians should unite in pursing their shared common interest: the development of Ethiopia. When all Ethiopians, from all ethnic backgrounds join together to ensure the economic progress of their single homeland, then the preconditions will exist to end ethnic conflict and marginalization. The victory at Adwa belongs to and exist inside all Ethiopians. One Ethiopia! One Ethiopian identity! 

Victory at Adwa- A Victory for Africa

Lawrence Freeman

March 1, 2017

The battle of Adwa is probably the most renowned and historic battle in Ethiopian history. This celebrated victory by the Ethiopian army helped define the future of their nation, as one of only two non-colonized countries in Africa. The defeat of a European colonial empire by an African country, following the “Scramble for Africa” after the 1884-1885 Berlin conference a decade earlier, is not only a source of enduring pride and nationalism for Ethiopians, but also an inspiration to other Africans, who took up the fight for independence six decades later. Some historians suggest that this victory also led to the idea for the Pan-African movement. As a result, it is no surprise that on May 25 1963, Ethiopia under the rule of Emperor Haile Selassie was a founding member of the Organization of African States-OAS.

Adwa, also known as Adowa, and in Italian Adua, was the capital of the Tigray region in northern Ethiopia. A late comer to grabbing territory in Africa, Italy began colonizing Somaliland and Eritrea in the 1880s. It was from the vantage point of Eritrea from where Italy launched its campaign against Ethiopia. The immediate pretext of the invasion was a dispute of Article 17 of the 1889 Treaty of Wuchale. Italy insisted that the treaty stated that Ethiopia had to submit to its imperial authority, thus effectively making Ethiopia a colony of the Kingdom of Italy. The Ethiopians resisted Italy’s military enforcement of its version of the treaty, leading to the outbreak of war in December 1894, with the Italian imperialists occupying Adwa and moving further south into Ethiopian territory. On March 1, 1896, King Menelik II, who, commanded a force of over 70,000, defeated the Italian army, killing 7,000 of their soldiers, wounding 1,500, and capturing  3,000 prisoners, routing their enemy, and forcing them to retreat back to their colony of Eritrea. It has been speculated that, if Menelik had pursued the retreating Italian troops, and driven them off of the continent, it might have prevented a second Italian invasion. On October 3, 1935, Italy led by fascist dictator Benito Mussolini, launched its second military incursion into sovereign Ethiopia territory. Five years later in 1941, Ethiopia once again drove the Italian invaders out of their country. The 1896 defeat of a European nation, considered an advanced country, by Ethiopia, viewed as a backward Africa country, led to riots on the streets of Italy and well deserved consternation in the capitals of European powers.

Without taking the time now to review the ninety years of Ethiopian history following this famous battle, the military defeat of Ethiopia’s dictatorial Derg Regime in 1991 brings us to the beginning of contemporary Ethiopia. When the Ethiopian People’s Revolutionary Democratic Front-EPRDF assumed control of the government in 1991, it was led by the now deceased, Prime Minister Meles Zenawi, who initiated the economic policies that have guided Ethiopia for over 25 years. It was Meles Zenawi’s intellectual leadership, in particular his understanding of the indispensable role of the state in fostering economic development that distinguishes Ethiopia today from all other sub-Saharan African nations. For him the state was not “a night watchman,” but rather an active participant promoting economic growth for the benefit of its people. Ethiopia is a poor country. with a population approaching one hundred million, not endowed with rich mineral or hydrocarbon resources, and repeatedly struck by drought. Yet it has emerged in recent years with a rapidly growing economy. This is the result of Zenawi’s legacy that created a leadership with a self-conscious commitment to use the powers of the state to build an integrated infrastructure platform, which has served to drive the economy forward. This is clearly evident in Ethiopia’s Growth and Transformation Plans I and II, which set ambitious economic goals five years into the future, along with its proposed thirty year road construction plan. Since the EPRDF took over the responsibility of governing the nation, more than thirty new universities have been created, graduating more students that can be easily employed.

In collaboration with China, Ethiopia operates the first electrified train in sub-Saharan Africa, traveling 750 kilometers in seven hours from Addis Ababa to Djibouti, establishing a port to export Ethiopia’s products. Their highway system consisting of toll roads, highways, and all weather roads will connect their light manufacturing industries to the port in Djibouti via their new rail line.   As a result of coherent policy planning in energy infrastructure, the Gibe III hydroelectric power plant has now added 1,872 of megawatts to the country’s electricity grid, and over the next two years, the Ethiopian Grand Renaissance Dam (GERD) will add an additional 6,000 megawatts, making Ethiopia the second largest producer of power in sub-Saharan Africa, behind South Africa.  The next step to develop the Horn of Africa is for Ethiopia, Sudan, and Kenya to extend their rails lines to become the eastern leg of an East-West railroad. Thus would transform Africa by connecting the Gulf of Eden/Indian Ocean with the Atlantic Ocean , creating an economic corridor that would literally revolutionize the economic power of the continent; contributing to the ending of poverty, hunger, and war.

One cannot deny the success of Ethiopia’s unique path of development, nor can one omit the important role contributed to this process by Ethiopia’s successful resistance to foreign occupation; thus never having to suffer the dehumanizing effects of colonialism.

Read my earlier posts:   Ethiopia’s Conflict: A War Won to Preserve the Nation-StateEthiopia’s Prosperity Party: A Revolutionary Necessity

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

President Biden To Help Africa Fight Ebola and COVID19

A Congolese health worker administers ebola vaccine to a child at the Himbi Health Centre in Goma, Democratic Republic of Congo, July 17, 2019.
A Congolese health worker administers ebola vaccine to a child at the Himbi Health Centre in Goma, Democratic Republic of Congo, July 17, 2019. Olivia Acland | Reuters

The new administration of President Biden has initiated three important policies to help fight disease in Africa, all of which are in the self interest of the US and benefit the world. The month old Biden administration is speaking with one voice, and acting with urgency to tackle the new outbreak of deadly Ebola in Africa, and the COVID19 pandemic. Unless these diseases are eliminated in every country the entire human race is endanger. Every single human being must be vaccinated. To do less is immoral and criminal stupidity.

  • WHO: By executive order the US has rightly rejoined the World Health Organization (WHO). The WHO plays an important function in Africa and the world. It is also time to for the US to give up its allegations that Covid19 was deliberately created by a lab in China.
  • Covid19: Biden announced to the G7 that U.S. will commit $4 billion to support COVAX—the UN program for vaccines for the underdeveloped world. Administration officials have correctly stated: “This pandemic is not going to end if we don’t end it globally. In addition to saving a lot of lives … it’s also the right thing to do from an international security and economic perspective.
  • Ebola: “While the world is reeling from the ongoing COVID-19 pandemic, Ebola has again emerged, simultaneously, in both Central and West Africa. The world cannot afford to turn the other way,” White House Press secretary Jen Psaki wrote: “We must do everything in our power to respond quickly, effectively, and with commensurate resources to stop these outbreaks before they become largescale epidemics.” (see CBNC below). Secretary of State Blinken speaking to the UN Security Council on Feb. 17, said: “We have the immediate challenge of COVID-19; we have a longer challenge, but equally vital, in establishing the strongest possible global health structure going forward. With the news of another Ebola outbreak in the Democratic Republic of Congo and Guinea, there is clearly no time to waste. And our vision has to be bold. We must defeat COVID-19 and prevent future pandemics. Addressing the recent outbreak of Ebola in Africa, National Security Adviser Jake Sullivan spoke with the ambassadors from Guinea, Democratic Republic of Congo, Sierra Leone, and Liberia to convey the United States’ willingness to work closely with the governments of affected countries, and neighboring countries whose citizens would be at risk if the infection continues to spread.

Read CNBC report on February 16, 2021: White House says Ebola outbreaks in Africa need swift action to avoid ‘catastrophic consequences’

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

 

Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa 

China’s Belt and Road Initiative

February 17, 2021

This recent article, The Chinese ‘debt-trap’ is a myth, written by Deborah Brautigam, Director of the China-Africa Research Institute (CARI), provides definitive proof that China is not using so called debt-trap diplomacy to Africa’s seize assets. This false narrative, which is been disproved by Brautigam and CARI, time again, was used by the Trump administration to attack China in Africa as a key feature of its geo-political doctrine.

No African nation has been forced to relinquish it natural resources to China in response to late debt payments. No African asset has been seized by China. (See my earlier posts below). Misrepresentation of the case of the Sri Lankan port of Hambantota, which this article refutes, has been used as propaganda to attack the China’s Belt and Road Initiative and malign China’s infrastructure projects in Africa,

China has been a valuable friend in assisting African nations in building vitally needed infrastructure projects. The African continent is suffering today from a massive deficit in infrastructure measured in trillions of dollars. Thus, all nations of good will can contribute to addressing the continent’s huge  infrastructure deficiency, which African nations would welcome. As I have insisted for decades, there is no way to eliminate poverty and bring peace to African nations without electricity, roads, railroads, water management, and port development.

Present Biden would be wise to move beyond Trump’s anti-China policy and initiate a new era of US-Africa policies premised on physical economic development, and join me in my mission to eliminate hunger and poverty in Africa.

Read my earlier posts on alleged debt-trap. Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa;  No More Lies, No More Anti-China Propaganda: There is No China-Africa ‘Debt-trap’

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