BRICS Summit Portends New Era of Cooperation and Development for Africa and the World

July 27, 2018

Lavrov Welcomes South Africa’s Initiative for Africa at BRICS Summit

July 26, 2018–In an article in the South African magazine {Ubuntu}, published by the Department of International Relations and Cooperation (DIRCO), Russian Foreign Minister Sergey Lavrov said “we support further strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness….

Sub-Saharan Africa is the most dynamically developing region of the planet, which plays a key role in world mineral and hydrocarbon markets, a broad and rapid-growing consumer market, and one of the most attractive investment areas,” Lavrov said, according to Moscow Foreign Ministry website.

Pointing out that BRICS-Africa Partnership that was launched during South Africa’s 2013 BRICS chairmanship is steadily developing, Lavrov said “we welcome special attention paid by Pretoria to Africa-related issues in the work of BRICS. This area of work is becoming increasingly important for Russian foreign policy as well. Russia has significantly contributed to decolonization processes and the rise of new independent states on the continent.”

Sergey Lavrov: BRICS a Stabilizing Factor in Global Affairs; Focus on Africa is Key

July 25, 2018-An article published in South Africa’s {Ubuntu} magazine, prior to the BRICS summit, Russian Foreign Minister Sergey Lavrov noted the symbolism of the BRICS returning to Africa in 2018, the  100th  anniversary of the birth of Nelson Mandela,– “a prominent political and public figure on a global scale.”

Mandela contributed personally to establishing friendly relations between South Africa and Russia, he recalled, making possible today’s “high-level of a comprehensive strategic partnership.”

Lavrov particularly praised South Africa’s leadership in the BRICS, -“special attention paid by Pretoria to Africa-related issues,” that has become especially important for Russia’s foreign policy. “We support  further  strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness.”

Of special importance, Lavrov added, is that BRICS countries will foster cooperation with other associations and consolidate positions in international organizations to present a “united front.” The invitation to Argentina, Indonesia and Turkey, plus other African nations, to attend the July 25-27 summit reflects the BRICS-Plus initiative, he explained. “Thus we will expand the global reach of the Group and establish an outer circle of like-minded countries. In this regard, BRICs has good potential to become a unique platform for linking various integration processes in a flexible way.”

Coordination between BRICS and other major international organizations is crucial, Lavrov underscored, since consolidation of efforts “is a key to ensuring world stability and a way to settle serious conflicts.” He particularly referenced how the BRICS-Africa Partnership has advanced since 2013. At the current summit, “a special
outreach session will be held with the participation of the heads of State presiding over regional organizations of the continent in order to focus on its most relevant issues,” he said.

Why India Is Keen To Invest in Africa with China: An Overview

July 26, 2018–Ahead of the 10th BRICS Summit, China’s President Xi Jinping and India’s Prime Minister Narendra Modi had embarked on tours through some African countries. Xi, arriving in South Africa on July 24, pledged $14.7 billion of investment in the country. During a less-than-24 hour visit on July 24, Modi pledged $205 million to Uganda. The sum is intended to help the East African country to develop its dominant agricultural sector and electricity distribution infrastructure.

Both Xi and Modi were in Rwanda earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones, CNBC reported.

In recent years, both China and India, which have been widely labeled in the West as rivals, have brought to African nations their focus on all-round development, investing to improve their infrastructure, agriculture, education, and technological skills, among other areas.

The reasons why they chose to cooperate and collaborate in Africa’s development are many. For instance, the African nations are most receptive to all actual developmental efforts, large or small. Because of the needs of the African nations, which had all along been looked at only as sources for natural resources consumed by developed nations, every bit of investment made in these nations has a positive effect and is welcomed. China and India consider that providing Africa the ability to develop will bring about a sea-change in the direction and magnitude of global trade.

India is keen to expand its economic relations mostly with Southeast Asia and Africa. For China and India, Africa does not pose any geopolitical threat. Moreover, the better understanding developed between Xi and Modi since their Wuhan meeting last April, enables both of them to work in tandem to improve the living conditions in Africa.

Putin BRICS Remarks Imply Need for New Monetary System

July 26, 2018–Very brief remarks delivered by Russia’s President Putin at the Johannesburg BRICS Summit today (apparently after a leadership meeting), implicitly point to the need for a new monetary system, and the basis which has been created for such a system in the cooperative banks, funds and institutions created by the BRICS, the Belt and Road and China, and the Shanghai Cooperation Organization. Putin’s statement dealt with this. He said:

“We view positively the activities of the [BRICS] Council to implement joint multilateral projects. It is necessary to conduct these activities in close cooperation with the [BRICS] New Development Bank. It is important that the business community should help enhance the Bank’s loan portfolio. “The New Development Bank has considerably expanded its operations as of late. Members of the Board of Directors have approved 21 projects worth over $1 billion, including five that will be implemented in Russia.

“We support the idea of opening regional offices of the Bank. Talks are underway with Brazil on this issue. Hopefully, the possibility of opening the Russian office will be discussed after the talks.

“The establishment of the BRICS Contingent Reserve Arrangement [to support countries under balance-of-payments pressure] deserves praise, and this has become an important mechanism for the prompt financing of our countries’ banking sector…

“In 2017, we met in Xiamen [China] and decided to establish the BRICS Local Currency Bond Fund. This is very important for the development of the financial systems of our states. Therefore, the Fund’s timely initial operations, due to commence in 2019, serve the interests of BRICS.”

BRICS Could be an Alternative Model of Development to Western Dominance

July 25, 2018–In a July 25 article published on the website of the Valdai Discussion Club, entitled “Brics and the World Order,” Georgy Toloraya suggests that the current BRICS grouping, plus other nations that form part of the “BRICS-Plus” structure (not official members) could offer the world “an alternative model of socio-economic development, differing from the West” that is based on “mechanisms of a liberal market or profit gaining…that assumes the dominance of the West.”

Toloraya is the Executive Director  of the Russian National Committee for BRICS Research. He debunks arguments that the BRICS is just a “China-centered structure,” intended only to promote China’s interests or its Belt and Road Initiative. These accusations, he notes, “are very sly statements. The Chinese factor is only one of the BRICS development facets.”

In today’s “turbulent global situation,” Toloraya adds, it is especially important that the BRICS “common denominator” grows. Why? In contrast to the G7, BRICS expresses a “touching unanimity, which is not faked. This is not a mutiny on the ship we see with the G7, when the captain led to one direction while the crew wants to go to another one.” By the time Russia takes over the chairmanship of the group in 2020, he notes, BRICS “could become a united center of the multipolar world…Now BRICS creates its own structure of global governance, and it must develop in that direction. I do not know, whether that could be accomplished in the context of growing counteraction from the West, but we have to keep working.”

Because the BRICS is a global organization, Toloraya concludes, “these five leading ascendant powers could create a world order that will be more just and balanced than what we see now.” It may not expand yet, but “what we see in the BRICS+ format, which is involving the largest countries that are not the group’s members, but show interest in it, is a significant step towards increasing the BRICS value and making this union a representative of the greater part of humanity.” On the eve of the Johannesburg summit, he concludes, BRICS is not {against}, but {for}: for just economic development conditions, for sustainable development concept centered on human beings.”

Rwanda and South Africa Sign Deals With China and India Before BRICS Summit

Xi Jinping Arrives in Johannesburg, South Africa for BRICS Summit

July 24, 2018

China’s President Xi Jinping arrived in South Africa today for a bilateral meeting President Cyril Ramaphosa, to be followed by the July 25-27 Tenth BRICS Summit. As is his custom, Xi wrote an op-ed in the local press before his arrival, titled “For a New Era of China-South Africa Friendship.” In it, Xi began by emphasizing that “Our peoples forged a deep friendship during our common struggle against imperialism, colonialism and racism.” He then wrote:

“Over the past six years, our two countries have worked closely as co-chairs of the Forum on China-Africa Cooperation (FOCAC) to advance the comprehensive strategic and cooperative partnership between China and Africa. Our bilateral ties have thus served as a model for China-Africa relations, for South-South cooperation, and for unity and cooperation among emerging market countries, and offered valuable experience for building an even stronger community with a shared future between China and Africa and a new type of international relations
featuring mutual respect, fairness and justice, and win-win cooperation….

“We must strive for new outcomes in our practical cooperation. We need to promote complementarity between our development strategies, and make full use of bilateral mechanisms, FOCAC-(Forum on China-Africa Cooperation), the Belt and Road Initiative, BRICS cooperation, and other platforms to deepen cooperation in key areas such as industries, production capacity, resources and energy, infrastructure, finance, tourism, and digital economy and deliver more benefits to our peoples.”

On the bilateral front, South African President Ramaphosa announced that the two countries signed “several agreements and memorandums of understanding that are intended to further deepen our relations, including investment commitments that have been struck to the value of $14.7 billion.”

Xi Jinping and Rwanda’s Kagame Sign Multiple Agreements Strengthening Belt and Road Cooperation

Chinese President Xi Jinping met on July 23 with Rwandan President Paul Kagame on the third leg of his tour of Africa and the Middle East, which so far has taken him to the U.A.E. and Senegal. Xi travelled to South Africa today (for the July 25-27 BRICS summit), and he will then stop in the Indian Ocean island-nation of Mauritius on the way back to China.

Xinhua reported that “after their talks, the two heads of state witnessed the signing of multiple agreements on bilateral cooperation in the Belt and Road Initiative and other areas.”

In the meeting with Kagame, Xi stated, according to Xinhua, that “Beijing is willing to work with Kigali to translate their traditional friendship into concrete benefits for the two countries and the two peoples, and open a new chapter in their friendly cooperative relations.” As he has done on his other stops, Xi called on the two countries to “strengthen the link between their respective development strategies, give full play to their complementary advantages, and …cooperation in more areas and at deeper levels.”

Xi told Kagame, Xinhua wrote, that “China welcomes Rwanda’s participation in the international cooperation within the framework of the Belt and Road Initiative, and encourages more Chinese investment in Rwanda to help advance its industrialization and modernization.” Xi also talked about broader China-Africa relations, which “have always been defined by sincere friendship, unity and cooperation. The two sides have become a community with a shared future going through thick and thin together as well as a community with shared interests dedicated to win-win cooperation.”

Kagame, for his part, called China “a reliable friend who shares weal and woe with Africa. Kegame said it is of great importance for Rwanda and Africa to develop friendly ties with China. He spoke highly of China’s valuable assistance for Rwanda in such areas as infrastructure construction, agriculture and education, adding that China’s helping hand has made positive contributions to his country’s reconstruction and livelihood improvement.”

Xinhua further said that Kagame emphasized that “Rwanda is willing to enhance cooperation with China within the framework of the Belt and Road Initiative, which offers a significant opportunity for both Rwanda and Africa. As the [African Union] AU’s rotating chairman, Kagame stressed that China’s long-standing firm support is of great value to Africa’s development. The African side, he said, looks forward to attending the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) in September, and stands ready to jointly push forward the development of FOCAC, so as to generate more benefits for the people of both sides.”

Modi in Rwanda Witnesses Signing of Economic and Defense Agreements

On his way to attend the 10th anniversary BRICS Summit over July 25-27 in Johannesburg, South Africa, the Indian Premier, Narendra Modi, stopped in Rwanda and, along with Rwandan President Paul Kagame, witnessed the signing of seven bilateral pacts at Village Urugwiro, the President’s office in Kigali, by Indian and Rwandan officials, reported Rwanda’s {New Times}.

Prime Minister Modi is the first Indian head of government to visit the East African nation, which is considered an important gateway for India to eastern Africa. Modi is on a three-nation tour, beginning with Rwanda and Uganda, and thence to Johannesburg for the BRICS summit. He arrived in Rwanda just as Chinese President Xi Jinpig was leaving that country.

Agreements in the area of trade, defense, dairy cooperation, agriculture, culture, leather and allied sectors and two lines of credit worth $200 million for expansion of the special economic zone and irrigation scheme were signed, IANS reported.

“During the talks, both leaders reviewed the entire gamut of bilateral cooperation and expressed satisfaction at the excellent relations between Rwanda and India in the overall context of Strategic Partnership,” India’s Foreign Ministry stated. Ties between India and Rwanda were elevated to the level of  Strategic Partnership in January last year, IANS reported.

West Wants Only Quick Bucks From Africa, While China Invests for Win-Win Cooperation

‘West wants only quick buck from Africa, while China invests for win-win cooperation’

Below are excerpts from an interview that I did with RT on the significance of the trip by China President, Xi Jinping to Africa this week. I also commented on the dramatically different policy approach that China has towards Africa, than that of the United States. The past several US administrations have failed to construct a strategic policy to assist African nations in developing their economies.

'West wants only quick buck from Africa, while China invests for win-win cooperation'

Chinese President Xi Jinping is on a trip to Africa in a bid to establish deeper trade ties. On Monday, he arrived in South Africa for a state visit, which will be followed later this week by his participation in the 10th BRICS summit in Johannesburg. Earlier, the Chinese leader visited Rwanda and Senegal, which is the first West-African country to be involved in China’s “Belt and Road” infrastructure project.

Beijing has been expanding its presence in Africa in recent years, investing $39 billion in the continent in 2017.

Political analysts told RT that countries in Africa are turning to China because of US government policies.

RT: What do you think Xi Jinping will be hoping to get from his tour of Africa?

City view of Bahrain's capital Manama © Hamad I Mohammed

Lawrence Freeman: I think this is an indication by President Xi of how important they view their collaboration with Africa. He is going to be visiting four countries and they are going to end up at the BRICS Summit in South Africa. This is a continuation for the last several years of the ‘Belt and Road’ policy in Africa. And it has been a real boost for African development policies, especially in the areas of infrastructure, energy, roads and rail. And this indicates that they are going to continue along that policy for sure.

RT: Do you think China’s interests in Africa are purely economic or are they also about greater geopolitical influence?

LF: China, especially under this president, has a view of a win-win cooperation, that countries can work together for the common benefit of a mankind, that they will benefit from economic cooperation. The African countries certainly will. There has been no infrastructure built in Africa since the colonial period. The West refused, the US state has refused, Europe has refused. So, China building its infrastructure which you see in Kenya, in Nigeria, Ethiopia and other places, this is a real positive step for the development of Africa. And I think the Chinese want to help Africa. They will make money, of course. The Africans will improve their economies. And the people’s standard of living will improve and hopefully we’ll eliminate the poverty in Africa.

RT: Many Western countries are wary of investing in Africa due to instability and security problems. But China doesn’t seem to have been put off by these concerns. Why is that the case?

LF: China under this president has a vision for the future. They develop themselves and they develop their neighbors and they develop other countries around the world. So, the whole concept of the ‘Belt and Road’ is counter to geopolitical thinking, it is countries working together, they call it win-win. And the problem is that the West has no vision for development of Africa, has refused to develop Africa, so therefore they attack Africa, they complain about Africa’s loan, they complain about the debt. The debt under Western countries, the IMF and the World Bank far exceeds anything that the Chinese have in terms of debt with African countries. So, the West has to get over their problems, get over the geopolitical thinking, stop demonizing China and actually if the president was intelligent in this question, he would join the ‘Belt and Road’ because if China and the US joined together, we could transform the continent and eliminate the poverty and hunger. And that is what I am trying to do.

The US influence on Africa was already dwindling well before Trump came into the play. And it will continue to dwindle because of some of his comments, his attitude towards Africans, and his position on Africa in general. He is only interested in military bases. And Africans, I am afraid, are very much interested in partnership and those who take them seriously. And like a liberalized continent, it is voting with its feet and it is changing the US in every sector, that I know of, in favor of the Chinese. And China already had a huge presence and influence and that influence has just grown to levels for which even if the Americans were to try now unlikely to ever catch the Chinese in my lifetime. – Ayo Johnson, journalist & founder of Viewpoint Africa

The US has a very small outlook towards Africa and the rest of the world. They do not want to invest in the infrastructure, which is a long-term investment but it improves the entire economy. And they haven’t. The basic attitude of the US… is to make money, to make double-digit profits overnight. They are not interested in the long-term development of a country. That is why the US and the West built no railroads, they were built with China’s help, China has built the new hydro-energy plants, China has built new ports. And there are many more things that they are working on across Africa. So, the problem is that the West is not really thinking how to develop this continent, they are thinking in terms of how to make some fast bucks…

China-Africa Cooperation is Mutually Beneficial

 July 19, 2018

The cooperation between Africa and China is a great success in international cooperation. As the traditional friendship between China and Africa becomes stronger and stronger, there is all indication that China-Africa cooperation shall be more forward-looking.

This cooperation is widely regarded as a major success in today’s international system and is widely regarded as a model of mutually beneficial cooperation with constructive and positive significance. China-Africa cooperation is also a model for South-South cooperation.

As a constructive new model, it has promoted the progress of the African development agenda, helped Africa to industrialize, develop economies, reduce poverty and inject vitality into the overall development of the continent.

The Forum on China-Africa Cooperation (FOCAC) has given Africa an alternative to North-South cooperation. It has given an extra voice for developing countries in the international arena. It is of great significance to the realization of the UN Millennium Development Goals.

The economic complementarity between China and Africa is strong and growing. Chinese companies are very active on the African continent. At present, there are more than 2,000 Chinese enterprises investing actively in Africa. They train workers and solve employment problems, increase local taxes and improve the living standard of the people. China’s investment in mining, infrastructure and telecommunications has given an immediate boost to the development of Africa.

At present, the trade volume between China and Africa has exceeded more than 200 billion U.S. dollars. China helps Africa build infrastructure, invest and open factories in Africa, provides Africa with a large number of high-quality and cheap goods. It also buys goods from Africa to promote its economic development.

The development of infrastructures such as highways, railways, and bridges will help the long-term development of African countries. This is the cornerstone for Africa’s development.

Africa has also significantly benefited from increased exports of raw materials to China where there is strong demand. China has promoted the demand for oil, natural gas and other raw materials, which has a direct or indirect positive effect on the economic development of African export-oriented countries.

Some western opinion advocates that China’s manufacturing industry has affected the development of African manufacturing industry. This statement is actually exaggerated. There is little evidence to prove that China’s manufacturing industry has negatively affected the manufacturing industry in Africa.

In fact, it has supported industrial development as already stated.  The challenge of African industrial development cannot be attributed to China.

In addition to trade and investment, China also provides assistance in other areas for the development of Africa. For example, China helps Africa to enhance its capability of food security and energy security, develop communication networks and improve medical facilities and participates in peacekeeping operations in Africa actively. Through these measures, China has promoted friendly exchanges between two sides and safeguarded peace and stability in Africa.

We foresee a China-Africa cooperation that will establish cooperative relations in various fields of sustainable development to seek a distinctive and high-quality way for win-win cooperation between both sides and to build a stronger, more effective and more sustainable development partnership.

Original article

Forum on China-Africa Cooperation: Win for Africa’s Development

It’s Time for Africa

Alignment with China’s development vision heralds a new era of opportunity on the continent

By He Wenping- JULY 5, 2018

A Chinese engineer collaborates with Kenyan workers on the construction of the Mombasa-Nairobi Railway on April 9, 2016 (XINHUA)

As agreed by both China and Africa, China will host the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) this September. Wang Yi, Chinese State Councilor and Foreign Minister, made the announcement on the sidelines of the Meeting of BRICS Ministers of Foreign Affairs in South Africa on June 4.

The upcoming summit will be themed Win-Win Cooperation and Join Hands to Build a Closer Community with a Shared Future for China and Africa. Wang said China and Africa will endeavor to integrate the Belt and Road Initiative, the 2030 Agenda for Sustainable Development of the UN, the Agenda 2063 of the African Union (AU) and the development strategies of various African nations to create more opportunities for mutually beneficial cooperation, and to open up new prospects for common development.

The First FOCAC Summit was held in Beijing in 2006, and 12 years on leaders from China and Africa will once again gather in Beijing to usher in a new era of Sino-African cooperation. This summit, the third in FOCAC’s 18-year history, demonstrates the value that China places on Sino-African ties and promises to drive the China-Africa friendship to new historic heights.

Proactive attitude

Since Chinese President Xi Jinping proposed the Belt and Road Initiative five years ago, more than 100 countries and international organizations around the world have shown interest, of which more than 80 have signed cooperation agreements with China involving Belt and Road projects. The initiative, consisting of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along and beyond the trade routes of the ancient Silk Road.

Africa is a continent rich in resources with great market potential, but it is in dire need of robust infrastructure. It is proactively participating in Belt and Road construction with other countries along the routes in the hope that its economy can make a leap.

As Wang said when he visited Africa in January, the African continent must be at the heart of the Belt and Road Initiative and must not be left behind by China or the wider world in terms of development.

FOCAC was established in October 2000, 13 years prior to the proposal of the Belt and Road Initiative. China pursues common, intensive, safe, open and green development in its cooperation with African countries, which neatly dovetails with its commitment to innovative, coordinated, green and open development that is for everyone at home. Nearly 18 years of evolution have established FOCAC as a symbol of international cooperation, which allows the organization to provide precious experience to the Belt and Road construction across different regions and fields.

Advancing interconnection

Inadequate infrastructure is a bottleneck that constrains Africa’s economic development. Poor transport facilities and substandard roads have created exorbitant costs in domestic and regional trade, as well as impeding foreign investment.

Financing for Africa’s infrastructure needs faces an annual shortfall of at least $20 billion. In addition, most African countries have a low level of industrialization, and the contribution of industry to their economies is correspondingly small. However, Africa is a continent with abundant resources, low labor costs and great market potential, while China has significant advantages in capital, technology and equipment, as well as a wealth of experience in transforming from an agricultural to an industrial society. At a time when China is undergoing a fundamental phase of economic transition and upgrading, there is plenty of high-quality capacity and advanced equipment and technology available for outward transfer, much of which is ideally suited to Africa’s needs.

Just as the Chinese people harbor the Chinese dream of national rejuvenation, the African people hold the African dream of achieving development and alleviating poverty. Connectivity and industrialization are essential preconditions and the only path toward the realization of this dream. The Belt and Road Initiative can work in harmony with Africa’s development strategy for the 21st century. It can provide new drive for the sustainable development of Sino-African relations and help Africa take a step forward, blazing a new trail for South-South cooperation.

China and the AU signed a memorandum of understanding (MOU) on infrastructure construction cooperation on January 27, 2015. According to the MOU, under the strategic framework of Africa’s 2063 Agenda, China will enhance cooperation with African nations on railways, highways, regional airlines and industrialization to promote African integration. Chinese enterprises have already launched construction projects in these fields in countries such as Ethiopia, Djibouti, Kenya and Nigeria.

For example, the Huajian Group, a shoe producer from Dongguan in south China’s Guangdong Province, began operating in the Ethiopia Oriental Industrial Park at the end of 2011. By the end of 2017, Huajian had become the largest private Chinese investor in Ethiopia, generating $122 million of foreign exchange income and creating 7,500 new jobs for the local population. The company produces over 5 million pairs of women’s shoes each year, accounting for more than 65 percent of the Ethiopian shoe industry’s total exports. On September 1, 2017, the Ethiopian Government awarded Zhang Huarong, Chairman of the Board of the Huajian Group, the honorary title of “Father of Ethiopia’s Industry” for his contribution to the country’s development. Inspired by its success in Ethiopia, the Huajian Group plans to invest in Rwanda, Nigeria and elsewhere in Africa in the future.

The China-built Nyerere Bridge, linking the business area of Tanzania’s largest city Dar es Salaam to the Kigamboni district across the Kurasini creek, is the largest cable-stayed cross-sea bridge in sub-Saharan Africa (XINHUA)

Driving force

At the FOCAC Johannesburg Summit in South Africa in December 2015, China and participating African countries agreed to carry out 10 major cooperation plans in the following three years. The ultra-intensive plans, worth around $60 billion, cover industrialization, agricultural modernization, infrastructure construction, finance, green development, trade and investment facilitation, poverty alleviation, public health, people-to-people exchanges, and peace and security. The foremost of these is cooperation on industrialization to promote the progress of African development. In order to facilitate this, the first China-Africa Capacity Cooperation Fund—worth $10 billion—has been set up, alongside the Special Loan for the Development of African Small and Medium-Sized Enterprises and the China-Africa Development Fund each with a capital of $5 billion.

Industrial cooperation between China and Africa has already begun to bear fruit. As one of the first African countries to join China in international industrialization cooperation, Tanzania has signed a framework agreement with China on supporting key projects of the country’s ongoing five-year plan.

The construction of infrastructure and industrial parks is also making rapid progress. China has assisted Africa in building several railway lines, including one connecting the port city of Mombasa in Kenya to its capital Nairobi, another connecting Addis Ababa, the capital of Ethiopia, to Djibouti, and a third connecting Angola and Nigeria.

As Kenyan President Uhuru Kenyatta said at the opening ceremony of the Mombasa-Nairobi Railway on May 31, 2017, the new line is “one of the cornerstones to Kenya’s journey of transformation to an industrial, prosperous and middle-income country.”

The author is a researcher with the Institute of West Asian and African Studies, the Chinese Academy of Social Sciences, and a senior researcher with the Charhar Institute

 

Who Owns Africa’s Debt: China or Western Nations & Institutions?

Some Western media and politicians have recently created the phrase “debtbook diplomacy” to accuse China of “miring nations in debt” and “undercutting their sovereignty.”

According to CNN, a new report presented to the US State Department claims the “Chinese government is leveraging billions of dollars in debt to gain political leverage with developing countries.”

“This phrase ‘debtbook diplomacy’ shows the West is nervous of China-Africa cooperation. ‘Debtbook diplomacy’ is what they did to Africa for decades, but now China is actually helping African nations rid themselves of ‘the debt trap’ set by the West,” said Wang Yiwei, director of the Institute of International Affairs at Renmin University of China in Beijing.

The West left African countries with a heavy debt on projects and failed to support their sustainable development, or to increase productivity and help them realize self-reliance, Wang noted. “Western countries wanted Africa to become their raw materials supplier while maintaining their post-colonial influence over the continent. This prevented African countries from realizing their own industrialization, Wang said.

China, on the other hand, is helping the nations move toward self-reliance and industrialization. The West doesn’t like that and this is why it is attempting to slander China, Wang added.

Xu Weizhong, deputy director of the China Institutes of Contemporary International Relations’ Institute of West Asian and African Studies, said that “Africa needs a lot of investment to build infrastructure, and China’s loans, which have increased African countries’ debt, are necessary for their development.”

China’s assistance to Africa differs from what the West offers. China has a “crucial principle,” which is to respect African countries’ will and conditions. China has never forced African countries to accept loans on large infrastructure projects beyond their ability to pay, Wang said.

“China and Africa have walked an extraordinary path in developing relations and cooperation, and our peoples have benefited greatly from it,” Assistant Foreign Minister Chen Xiaodong said at the opening ceremony of the Seventh China-Africa Think Tank Forum in Beijing on July 4.

“A minority of Westerners are blinded by their ‘pride and prejudice’ and choose not to see this… maybe that is what they call ‘sour grapes’?” Chen said.

West is largest debt holder

Data shows that Western countries and West-led organizations are the largest owners of African debt, not China, Shen Shiwei, a research fellow at the Charhar Institute and former government relations and business consultant for Chinese enterprises in Africa, said in an article published on CGTN’s website.

Research from SAIS and the China Africa Research Initiative at Johns Hopkins University shows that China has provided loans worth $114.4 billion to Africa from 2000-2016, which accounts for 1.8 percent of Africa’s total external debt. 

“The IMF and World Bank own 36 percent of African debt. These multilateral financial institutions and other giant investors in Europe and the US have far stronger leverage [than China],” Shen noted in his article.

“For historical reasons, the West has many interests in Africa. Those that are reasonable should be respected when we cooperate with Africa. But for those that are unreasonable, should China and African countries continue to respect them? Before accusing China, the West should think about this carefully,” Xu said                   (emphasis added)

 

China and US Should Jointly Partner with Africa to Transform the Continent

It has been my firm belief for several years that, if China and the US jointly partnered with African nations, we can eliminate poverty and hunger across the continent. Development of Africa is not a “zero sum game.” Africa’s infrastructure deficit is estimated in the trillions of dollars for energy, rail, ports, roads, new waterways, and much more. There is no part of Africa that could not be developed, if the two largest economies worked with African nations. China’s Belt and Road Initiative is an excellent vehicle for such collaboration between Presidents Xi, and Trump. Below is a useful article reporting on US and Chines companies working together in Africa

AFRICA IN FOCUS

“American companies and Chinese Belt and Road in Africa”

Yun Sun 

“When it comes to Africa, it is no secret that the United States and China have very different philosophies. China adopts a more state-led approach, with state-owned enterprises and policy banks spearheading Africa’s infrastructure development. The U.S. is more willing to let private companies and the market take the lead on commercial development, while the U.S. government itself puts more emphasis on the continent’s capacity building and governance challenges…

“As China expands its Belt and Road Initiative (BRI) in Africa, government-level U.S.-China cooperation in Africa continues to be scarce. However, this trend contrasts sharply with the growing collaboration between Chinese and American companies in infrastructure projects on the continent. Indeed, although the Chinese projects and financing have the tradition of favoring Chinese contractors and providers, the technical advantages of some American companies have made them the beneficiary of the Chinese BRI campaign…”

Continue reading

 

Europe Must Address Poverty in Africa to Deal With Migration Crisis


Illustration: Luo Xuan/GT

The just-concluded EU Summit on migration has come up with measures like securing centers for migrants to process asylum claims, strengthening external border controls, and boosting financing for Turkey and countries in North Africa. But these are old solutions to old problems.

Since 2015, the EU has been working at full capacity to overcome the migration crisis. EU member states received over 1.2 million first-time asylum applications in 2015, more than double that of the previous year. But it seems that the European continent is still working in the same old way to try to prevent the entry of immigrants and not to address the causes of migration. Even if we assume these measures bring success in reducing immigration for some time, the EU will later be surprised when migrants use other means and methods to migrate, because the causes of migration still exist.

The root of migration is poverty. The African continent has suffered occupation and war for many decades. Many African countries have not yet been able to achieve the path of reform and development. This has put the people of these countries under unbearable pressure from poverty, ignorance and disease. They have pushed themselves into the abyss and tried to cross the border to reach Europe. They have faced danger and horror, believing a chance at a better future is worth dying for, if necessary.

With the emergence of the new system of globalization, the world became a small village and Africans opened their eyes to the luxury and good life enjoyed by Europeans, which inspired them to move to these countries. The majority of people from African countries continue to blame European countries for their backwardness and believe they should shoulder their responsibilities toward Africa. As a result of the failure of European countries to play the role that the African people were waiting for, these masses migrated to Europe to try to gain these rights. Europe, when dealing with refugees, looks at them from a perspective of human logic or empathy and does not view migration as a symptom of a disease. European countries must change their thinking and strategy to deal with the disease in order to make the causes of migration disappear.

It is time for Europe to look at the Chinese experience in Africa. The Chinese policy has  always focused on development. Economic relations between Africa and China have grown enormously, especially since 2006. The African continent is playing an important role in the Belt and Road initiative. China provides infrastructure funding and a workforce, and this infrastructure allows Africa to increase its production and exports, improving the quality of life and improving the conditions of millions of Africans.

Hope is the solution. The people of the African continent need hope. At least this last summit has come out with some words about more investment in Africa to help the continent achieve a substantial socio-economic transformation. China has been focusing on African development for a long time and has seen the results. The EU should work closely with China to push for the B&R to fight poverty in Africa and promote development. (emphasis added)

He Wenping is a senior research fellow at the Charhar Institute in China, and Hisham Abu Bakr Metwally is the first economist researcher at the Central Department for Export & Import Policy under the Egyptian Ministry of Foreign Trade and Industry. bizopinion@globaltimes.com.cn

 

Transaqua: Pan-African Project “Necessary to Restore Peace and Security in the Lake Chad”

“China’s deal with Italian firms will rescue Lake Chad”

What is Transaqua?

Last June, in Hangzhou in Zhejiang Province, Chinese construction giant PowerChina and the Italian firm, Bonifica SpA signed a deal about a regeneration project of Lake Chad.

The agreement includes carrying out feasibility studies on transferring water from River Congo in the Democratic Republic of Congo to replenish Lake Chad.

Due to less rainfall and increased irrigation, the Lake’s area has shrunk from 20,000 square kilometres to just 2,000 square kilometres. Other factors, include an influx of refugees fleeing the atrocities of the Boko Haram, have contributed to increased demand.

The proposed major water diversion scheme would involve channeling a small percentage of water from River Congo towards the north via a navigable canal.

Mohammed Bila of the Lake Chad Basin Commission explained that the Pan-African project is “necessary to restore peace and security in the Lake Chad region and for the promotion of navigation, industrial and economic development in the whole Congo basin.”

Map showing Lake Chad and River Congo.

Courtesy of Schiller Institute. The Transaqua project aims to move water from River Congo to Lake Chad. Schiller Institute. Schiller Institute Schiller Institute

He also highlighted that the movement of the water could feasibly be used to create hydro-electricity, as well as boosting regional trade, creating new economic infrastructure like river ports, and making new agro-industrial zones.

How is China involved?

PowerChina, a large state-owned enterprise in China that built the Three Gorges Dam, has committed US$1.8 million to finance to research studies for the initial stages of Transaqua.

The canal will effectively create a New Silk Road to Lake Chad and there are plans to have a service road and eventually a rail line run alongside the waterway, creating more infrastructure and access.

This is in keeping with the values of China’s Belt and Road initiative. Wang Hao, from the Chinese Embassy in Germany speaking at the Schiller Institute’s Development of Nations Conference, explained China’s decision to put forward the Belt and Road initiative.

He spoke of how China has learned from its own experience how important transport facilities are for the development of the economy. He quoted the Chinese saying: “To get rich, you must build a road first.” This is at the core of the Belt and Road initiative – infrastructure supports economy recovery and strength.

He highlighted that China accounts for two-thirds of the world’s total high-speed railway, with 25,000 kilometres. This infrastructure laid “a solid foundation for the rapid development of China’s economy”.

Facilities connectivity is one of the priorities of the Belt and Road initiative as China believes proper infrastructure is at the basis of economic development. This in part illuminates the reason behind China’s investment into Transaqua.

Mohammed Bila of the Lake Chad Basin Commission said Africa can become the next China if it invests in the Transaqua infrastructure with the support and partnership of China and Europe.

With investment so far of US$1.8 million from China and US$2.5 million from Italy, this project could “launch Africa on the road to economic growth, human security, industrialisation, peace, development and the attainment of the dreams of Pan-African leaders” such as Dr Kwame Nkrumah, former president of Ghana, who first proposed the project in 1964.

Kenya Advocating Nuclear Technology and Science For Africa

Kenya Needs a National Atomic Energy Commission, Says Education Cabinet Secretary

June 27, 2018–“It is highly regrettable that we have not effectively harnessed nuclear technology for the benefit of our people,” said Education Cabinet Secretary, Ambassador Amina Mohamed, opening the meeting of Vice Chancellors and Representatives of regional institutions involved on human resources development in nuclear science in Africa yesterday. She has called for the creation of a central government nuclear Commission, to put under one umbrella, all of the country’s nuclear activities. “We in Kenya,” she said, “realize that we must establish a National Atomic Energy Commission for our country to coordinate all the work we are doing in different  institutions and offices.”

“The application of nuclear science and technology avails enormous benefits,” she said, “including mitigating climate change, enhancing generation of energy, improving human and animal health, and increasing food production.”

Secretary Mohamed is a passionate supporter of science and technology for Kenya and for Africa. On June 16 she praised China’s role in supporting science in Africa, through a new joint center in Kenya. Her commitment is reminiscent to that of Naledi Pandor, Science and Technology Minister of South Africa, also an African woman who is an outspoken promoter of science and education for Africa.