Africa Needs Real Economic Growth, Not IMF Accountants

February 4, 2019

A recent forum sponsored by Brookings Institute in Washington DC entitled: “Top priorities for Africa in 2019” produced a healthy discussion that alluded to important fundamental conceptions of economics. Although the deeper principles of what should be called economic science were not elucidated, issues raised in the dialogue serve as a useful starting point for further elaboration of that subject.

The event was organized to present FORESIGHT AFRICA, a new publication by the Africa Growth Initiative. Representative from the International Monetary Fund-(IMF), and Mo Ibrahim Foundation, joined Ambassador Linda-Thomas Greenfield, and Brahima Coulibaly, director of the African Growth Initiative, for a wide-ranging discussion on the future of Africa to a packed audience.  

Members of the audience challenged the prevailing assumptions of the International Monetary Fund. One participant raised the inadequacy of the IMF’s rigid macro-analytic approach, when what is needed, she said, is a fine-tuned micro-economic intervention to deal with the scope of the challenges facing African nations. Another suggested the need for a state-funded public sector job program to put the millions of unemployed youth to work—a proposal which the IMF representative categorically rejected. The IMF’s hostility to state sector involvement belies the several hundred-year historical record of the modern economy, which is replete with successful and indispensable interventions by the state to foster economic growth.

Measuring Real Economic Growth      

While the Brookings report, FORESIGHT AFRICA, provides some relevant statistics, its analysis rests on erroneous axioms of what comprises economic growth

The commonly accepted notion that African nations today are experiencing “jobless economic growth” reveals the fundamental antagonism between the analysis of the IMF and its co-thinkers, and proponents of real i.e. physical-economic growth. Jobless growth is a moronic oxymoron.  Real*economic growth augments the productive power of society to increase its surplus of tangible wealth in order to sustain an expanding population at a higher standard of living. The IMF pretends to measure growth by adding up monetary values such as the price of extracted resources and real estate, stock market gains, etc.  The aggregation of prices is not a measure of the economy’s growth.  The only true calculation for economic growth is the result: an improvement in the living conditions of the population.

Africa’s Bright Economic Future Is Its Youth

Creating Real Economic Growth          

An excellent example of this defective thinking is highlighted in the article from the Brookings report entitled “How Industries without smokestacks can address Africa’s youth unemployment crisis.”  Author John Page reports that Africa has not only failed to industrialize, but shockingly, its share of global manufacturing today is smaller than it was in 1980! He forecast that Africa’s working age population (15-64 years of age) will grow by 450 million between 2015 and 2035, and that “20 percent of new employment for wages will be in the service sector, and only 4 to 5 percent will be in a wage paying job in industry.” His conclusions for the future of youth employment in Africa are ill-founded and deadly when he states that since: “industry has declined as a share of output and employment…over the past four decades…Africa may not be able to rely on industry to lead structural change…”

Page then proceeds to dangerously postulate the equivalence of employment in manufacturing with tourists and service jobs. He writes: “The same forces that limit Africa’s opportunities in industry, however, are also creating a growing number of tradeable services—such as tourism and remote office services…”

“Growth in tourism is outpacing manufacturing in many African countries… It has the potential to create some of the millions of formal sector jobs Africa needs each year to employ youth entering the labor force…”

This is not an academic question for the people of Africa. We should all be level-headed about the implications of this prognostication: without industrialization Africans will die. African are dying every day due to lack of infrastructure, a diminutive manufacturing sector, and an inefficient food-producing industry. The industrialization of Africa with a massive expansion of its manufacturing base is not an option, but a life-or-death necessity!

Nor is this conjecture on my part. From the standpoint of economic science of physical economy there is no equivalence. Manufacturing, by transforming nature and producing needed goods, contributes real value to society; tourism and services do not. A variety of services are required for a functioning society, but this sector should not perform role of a primary employer for new entrants into the labor force. Tourism serves no vital task except to promote the natural beauty of a county.  No new wealth is created by tourism; it is essentially collecting other people’s earned income.

Service-related jobs, whether useful or not, will never lead to real economic growth for one elementary reason. They do not contribute to the creation of new wealth. A properly organized economy would only have a relatively small percentage of its employed labor in the service sector. To do otherwise, as some African nations unfortunately are, is not sustainable, and will lead to calamity. To equate non-goods producing employment with manufacturing jobs is a grave fundamental error that should be rejected by serious economists and leaders.

Africa’s Youth Bulge Is Not A Curse

FORESIGHT AFRICA estimates that today 60% of Africa’s 1.25 billion people are under 25 years of age. That amounts to 750 million youth, a majority of which are unemployed or mis-employed in the pathological informal economy. It is projected that in sub-Saharan Africa alone, the youth population will expand by 522 million, and comprise one-third of the world’s youth by 2050. Thus, making  Africa the continent with the youngest population, and potentially the largest workforce on the planet.

While these figures are striking, they do not justify enforced population reduction measures, as extremists advocate. Human life is intrinsically sacred because it is endowed with the divine spark of creativity. Contrary to popular misguided opinion, human creativity is the underlying source of all wealth; not money or even natural resources.  Paleoanthropology shows us that millions of years ago before the emergence of homo sapiens-sapiens (wise-wise man), proto-humans, homo hablis, (handy man) designed tools first in the mind’s eye before shaping rocks into useful implements that were used to transform the environment for the benefit of mankind. Africa is not facing a crisis of too many people, but rather the urgency to formulate the best policies today that will incorporate millions of youth as productive members of the labor force.

What African nations most desperately need, and which will have the greatest impact of their economies, is infrastructure, infrastructure, and more infrastructure.  It is not hyperbole to state that the lack of infrastructure is responsible for millions of deaths on the continent. The dearth of on-grid energy, arguably the most crucial component of an industrialized-manufacturing society, is preventing African nations from attaining the levels of economic growth required to sustain their populations.

For example. If we desire, as we should, that Africans enjoy the same relative living standard as Western nations, then each of the 2.5 billion Africans in the year 2050 should have access to at least one kilowatt (1,000 watts) of power every day. That would require, starting immediately, erecting enough power plants to generate 2,400 gigawatts of electricity. Itemize the bill of materials to build that many thermal, hydro, and nuclear power plants.

Now contemplate the number of workers that would be employed in this endeavor. Extend the same mode of thinking to constructing hundreds of thousands of kilometers of high-speed rail lines to connect the major cities, ports, and manufacturing centers across this vast continent. Add to that the number of new roads, hospitals, schools, libraries, and water ways that need to be built to provide an adequate standard of living. How many tens of millions or more youths will Africa need to employ in just the construction of primary infrastructure projects? Imagine how many additional jobs will be created in the spin-off industries.

Nuclear Energy is Critical to Meet Africa’s Energy Needs (ESI Africa)

Africa’s Future Begins Today

Trillions of dollars of long-term low interest credit must be made available to fund these projects. Only state-issued public credit will suffice for this scope of investment. The private sector, investments funds, or any other fund that is motivated by seeking high yield and quick financial returns on their investment will never, ever, underwrite the credit necessary. The overriding concern of the nation state is not making quick monetary profits, but the welfare of its citizens living and their posterity.  The IMF thus far shown itself to be mentally, emotionally, and ideologically incapable of comprehending the true economic needs of Africa, or how to fund them. Those who are blinded by their erroneous view of evaluating an economy by its monetary worth, will forever be incompetent, and are not qualified to give advice, much less diktats to developing nations.

Credit issuance by the nation state is not a new or novel concept. The success of United States’ economy, which was maintained with ups and downs until its decline over the last five decades, emanated from the accomplishment of President George Washington’s Treasury Secretary, Alexander Hamilton.  It was Hamilton’s understanding of credit and the central role of manufacturing that created the basis for U.S. economic growth from thirteen indebted colonies.  Over the last 230 years, those leaders, in the U.S. or abroad, who were wise enough to comprehend and apply Hamilton’s understanding of national banking and credit, have been successful in stimulating economic growth for their nations.

Africa’s future does not begin in 2050; it begins now. It is incumbent on Africans, with the assistance of their friends and allies, to prioritize crucial transformative infrastructure and related projects that must be built and funded. This cannot wait. This is a war to eradicate poverty, hunger, and disease, and secure a productive life for billions of Africans living and yet to be born. Thus, this campaign should be conducted with a military-like commitment to achieve objectives and goals each month and each year. Hence, we are not waiting for the future; we are creating the future in the present.

*real and true are interchangeable terms signifying a physical (non-monetary) improvement in the economy.

Lawrence Freeman has been involved in Africa for over 25 years as a writer, analyst, and consultant. He teaches courses on African History in Maryland. In 2014 he was appointed Vice chairman of the Scientific Advisory Committee to the Lake Chad Basin Commission.

Guardian of Nigeria Publishes “Proposal for Nigeria’s Future” by Lawrence Freeman

The Guardian of Nigeria published on Monday, January 28, 2019, my article: “Proposal for Nigeria’s Future”  with included pictures of President Trump, President Xi, and myself that were omitted from the on-line article.

 

Proposal for Nigeria’s future

 

Presidents Kagame and Museveni Discuss; Democracy, China, Infrastructure, and Jobs

President Paul Kagame: Time for Europe To Invest in Industry and Infrastrucure

December  26, 2018)

In an exclusive interview with Austria’s {Die Presse} news daily, Rwandan President Paul Kagame stated that “Europe has invested billions upon billions of dollars in Africa. (But) something must have gone wrong…. Part of it is that these billions had a return ticket. They flowed to Africa and then back to Europe again. This money left nothing on the ground in Africa.” The European money was invested in the wrong place, he said.  Instead it should go to investments “in industry, infrastructure, and educational institutions for Africa’s youth, whose number is growing fast. That is the only way to create a  demographic dividend.” It would be a better way of preventing migration of young Africans to Europe, which the Europeans were so much worried about. Europe could cooperate with China, Kagame hints: “China is active in Rwanda, but not in an inappropriate way. The new roads in Rwanda are largely built with European money. Sometimes there are Chinese subcontractors.”

 What Africans do not need, is Europeans trying to give them lessons on democracy, Kagame said. The European model of democracy is a failure, Europe is in a profound political crisis, as shown by the recent mass protests and other aspects, this model cannot be one for Africans to follow. Europe finally has to give up its attitudes of fake generosity, and begin accepting Africa as a real partner, he said.

Presidents Museveni of Uganda and Kagame of Rwanda

China Creating Tens of Thousands of Jobs for Ugandans in Infrastructure Projects

Ugandan President Yoweri Museveni revealed in an interview with {Xinhua} with its focus on infrastructure development, the country wanted to attract more invest-ment from China: “We are likely to advance the project of the Standard Gauge Railway (SGR)… in the government-to-government (talks).” Extending the Chinese-built SGR line from the Kenyan seaport of Mombasa, which is expected to reach the border areas with Rwanda, South Sudan, and the Democratic Republic of Congo, to Uganda would make sense as a catalyst of economic growth. To finance its infra-structure development agenda, Uganda looked at China because of the country’s favorable lending terms compared to some of the Western global financiers.

Other major infrastructure projects in Uganda will benefit from Chinese support as well: A few months ago, the Kampala-Entebbe Expressway, linking the capital Kampala to Entebbe Airport, the country’s gateway to the world, was completed. China financed the construction of the mega road  project, the first of its kind in the country. China is also financing the expansion of Uganda’s Entebbe International Airport. Official figures show that after completion of the first phase of expansion, the cargo center can handle up to 150,000 metric tons of goods, compared to the previous 69,000 metric tons.

In the northern part of Uganda along the River Nile, the world’s longest river, China is constructing the 600MW Karuma Hydropower Plant. While touring the facility in July, President Museveni said he was amazed by the progress noting that the plant will not only address Uganda’s inadequate power supply, but also that youths have become skilled through the construction process.

Farther upstream on the River Nile, in the central Ugandan district of Kayunga, construction of a Chinese-funded 183MW Isimba Hydro-power plant that is nearing completion according to the Chinese engineers on site, power generated by the plant is expected to come onto the national grid early next year.

The power development plan is crucial for the Uganda’s industrialization policy, which has designated over 22 industrial parks across the country where investors can set up base, taking advantage of the incentives that come with establishing their factories in the parks. In October, President Museveni launched the first phase of a $620 million Chinese industrial project in the eastern district of Tororo. The project has dubbed the Uganda-China Free Zone of International Industrial Cooperation, undertaken by the Dongsong Energy Group, will manufacture glass, steel, and organic-fertilizers, creating about 3,000 jobs at peak when completed in 2020.

President Museveni, in March of this year launched another Chinese-owned Mbale Industrial Park. The park owners, Tian Tang Group, said it will attract more than 30 investors with a total investment of about $600 million and an annual output value of $1.5 billion. The park will directly employ about 12,000 locals.

 The $220 million Kehong China-Uganda Agricultural Industrial Park, is another park that will play a critical role in transforming the economy. According to government figures, almost 80% of the country’s population derives its livelihood from agriculture.

 When fully operational, Kehong China-Uganda Agricultural Industrial Park is expected to produce about 600,000 tons of agro-products annually to meet the domestic and regional market demands.

 It will also create 25,000 jobs as well as making opportunities for training local people available, according to the managers of the park.

Africa’s Infrastructure Deficit Is Literally Killing Its People

Below are slides from my 14 hour course: “The legacy of Slavery and Colonialism in Africa” that I am presently teaching at Frederick Community college in Maryland.

They clearly demonstrates the huge deficit in Africa for two vital areas of hard infrastructure; energy and rail. The colonialists and the neo-colonial policies by Western nations and their financial institutions following the liberation of African nations, opposed building infrastructure in Africa. Only now over the last decade are hard infrastructure projects being constructed in Africa in collaboration with China. These pictures below juxtapose the present conditions to the what is possible and should be what the future looks like. This is the focus of my activity.

Energy: Reliable estimates are that 1 billion Africans are living in sub-Sahara Africa on a mere 100,000 megawatts of power with almost 40% of that generated by South Africa. Africans are forced to live in areas on less than 100 watts per person. Compare that to Americans who have thousands of watts available for daily consumption 365 days a year. Approximately 600 millions Africans do not have access to an electrical grid. Africa needs thousands of additional gigawatts of electricity to power advanced economies.

Rail: Africa needs hundreds of thousands of kilometers of modern rail lines. All major cities in Africa should be connect by high-speed rail. There should have been East-West and North-South railroads decades ago. This is essential for economic growth.

Africa is the next frontier of development, and can be center of economic activity in the world in two generations. This requires a full-scale commitment to build transformative infrastructure projects throughout the continent NOW!. If we do, Africa’s future will be bright.

 

Colonial railroads compared to what is minimally required.

 

 

Nigeria and Sub-Saharan Africa Should NOT Have the Majority of Poor People.

This  is absolutely unacceptable. There is no objective reason for Nigeria and Sub-Saharan Africa to have the highest percentage of poor people in the world, with all its natural resources and people. This is the result of failed policies that began with the so called “Washington Consensus” beginning in the 1980s. Under the International Monetary Fund’s diktats and Structural Adjustment Programs(SAPs), the economies of African nations were destroyed and many have still not recovered.  African nations are beginning to follow a different model in collaboration with China’s Belt and Road Initiative. The IMF and World Bank models which measure statistical monetary aggregates ignore the most essential ingredient necessary to create economic growth: technologically advanced infrastructure platforms, integrating rail, energy, water, and roads. Only in the last ten years is infrastructure finally being built, after it was outlawed under colonialism and neo-colonialism, (except for roads and rail for resource to port and transporting colonial soldiers).  For example, the Sudanese people are suffering terribly from a lack of economic growth, because Sudan has been threatened not to deviate from IMF dictated macro-economic parameters. The Sudanese people will rebel, if Sudan continues to adhere to the murderous policies of the so called “free market.”

It is time for African nations to over throw the old model and break free from the monetarist grip of the IMF and WB. Inclusive growth, as it is called, will only happen when there is improvement in the real-physical economy. 

It is projected that by 2050 Nigeria will have 400 million people and Africa as a whole 2.4 billion. Despite the hysteria of the “zero-growthers,” Nigeria and Africa are not suffering from over population, but underdevelopment of its vast wealth. Each new human born can be a new source of wealth, if their creative potential is nurtured and developed. Thus, the Africa continent  with its projected large population, should become the center development (not poverty) of world economy, if we act now to massively expand infrastructure across the continent.

Nigeria to host 90% of extremely poor by 2030, says World Bank

The Debate On China’s Role In Africa; A Different Point Of View

The Council of African Security and Development-CASADE has published my article regarding the debate over whether China is forcing African nations into a new ‘debt trap.’ Despite the propaganda from some Africans and Westerners, China is not the new imperialist in Africa. You can read my analysis below.

CASADE: COUNCIL ON AFRICAN SECURITY AND DEVELOPMENT

 

 

 

Africa Needs Tractors, Nigeria (and Africa) Need Energy Too

{For Africa to provide jobs and feed its growing population, it needs energy and tractors to build a robust agricultural-manufacturing sector. Africa’s population is expected to double to 2.4 billion by 2050. If African nations massively invest NOW in infrastructure and industrialize their economies, the African continent can become the center of the world economy in two generations.}

Tractors Needed in Africa to Boost Agricultural Output

Oct. 8, 2018– The {Frankfurter Allgemeine Zeitung}-(FAZ) has discovered that agricultural output in African countries would be much higher if the farmers there had tractors to work their land, instead of using wooden ploughs and oxen to pull them. The output would be five to ten times higher, experts told {FAZ}. Swiss globalization critic Jean Ziegler said already in 2013 that the entire African continent had only 85,000 tractors in 2011, while Germany alone had almost 2 million tractors.

One problem faced by African farmers is that, with their miserable income, they cannot afford to buy tractors and other agricultural machinery on the world markets; not even the simple tractor models produced by Brazil’s AGCO, which have no fancy equipment and no GPS and cost only $10,000. Another problem is that tractors need diesel fuel, which is not available in such volumes in most parts of Africa because the transportation and storage infrastructure isn’t there.

_____________________________________________________________________

“Xi Jinping lends support to Nigeria’s long delayed $6 billion Mambilla dam”

View image on Twitter

Plans to build a 3GW hydropower complex on the Donga River in eastern Nigeria, which have been under discussion since 1972, were given a boost last week when President Xi Jinping of China announced his support for the project.

The Chinese leader was speaking in response to a request for help from President Buhari of Nigeria, who has made the construction of the scheme, on the Mambilla plateau in Taraba State, a key priority of his government.

Buhari said in a tweet: “I told President Xi that the Mambilla Hydropower Plant is Nigeria’s equivalent of China’s Three Gorges Dam, and that our hope is to fund the project with concessionary loans from China.

Continue reading

 

A Brief Response: Marshall Plan for Africa or “Debt Trap?”

Lawrence Freeman

September 20, 2018

The world is witnessing an increase in attacks on Africa’s relationships with China in various articles, as well as low-level, unthoughtful, messages on Twitter, Facebook, and YouTube. Not only does that content intend to demonize China as the new colonial empire of Africa, but it also includes vulgar demeaning caricatures of African Heads of State.

Could the reason for the uptick of these kinds of diatribes be related to the successful September 3-4, Forum on China Africa Cooperation (FOCAC) summit in Beijing, attended by leaders from almost every African nation? China has reached out to Arica and formed a special relationship which is being embraced by African Heads of State. It should be clear to any intelligent historian, that China is not acting as an Imperialist manner towards Africa.

However, what has been conspicuously, egregiously omitted from this unsubstantiated vilification of China, is the history of Western nations and institutions, which have acted as an Imperialist power towards Africa. The latest accusation is that China is deliberately entrapping African nations into unpayable debt. However, this is precisely what the IMF, World Bank, Paris Club, along with their allies in the City of London and Wall Street did to Africa immediately following the “Winds of Change.”

The motivation for this propaganda barrage is that China via FOCAC and the Belt & Road Initiative is offering African nations a pathway toward growth uncontrolled by the financial predators in the City of London and Wall Street. Contrary to the myth that China is stealing African resources; which the Western powers did first under slavery, then under colonialism, and have continued under neo-colonialism, China is actually providing credit for physical infrastructure; the sin qua non to spur economic growth.

Debt and Credit for What?  

A pervasive and quite serious problem affecting well-intentioned individuals from all corners of the globe is the lack of understanding of what actually creates economic growth. Neither money, nor financial transactions, nor derivatives, nor speculation, nor rising stock markets, nor the market place are the cause of growth or synonymous with real economic growth.

Credits issued for infrastructure; water, energy, rail, roads, healthcare, and education, identifying the most vital categories, if properly organized, leads to an increase in the productivity i.e. the economic power of the society. This is measured by the ability of society to increase its physical output from one production cycle to the next. By utilizing advanced technologies embedded in new capital equipment, including infrastructure, farmers and workers can produce more efficiently. Simply providing abundant energy, high-speed railroads, and water inputs to an African nation would lead to a jump in economic output.  Shortly after the death of President Kennedy, the US ceased its commitment to assist Africa nations in expanding their infrastructure.

China is committed to lending, issuing credit-yes creating a debt to fund long-term investment in infrastructure. Credit directed in this way is good debt. With non-usurious interest rates over 15-20 years, the loan can be retired from the profit it generates to society. This form of debt is not equivalent to the hundreds of billions of dollars African nations were forced to pay to the financial capitals of the world for loans to cover rigged terms of trade, and currency devaluations.

If you study the American System of Political Economy with its cornerstone; Alexander Hamilton’s national credit policy, you will realize that China is emulating the best of America’s past. For example, President Franklin Roosevelt, who successfully applied Hamilton’s principle  to rebuild the Depression riddled US with state issued credits, would have little trouble understanding the principles of President Xi Jinping’s Belt & Road.

Economics and the Common Good

There is a deeper level to comprehending economic growth. Every human being is united by a universal principle often expressed as the “common good of mankind.” Yes, all human beings regardless of religion, color, ethnicity, or place of birth, share a “common interest.” We are all created with the power of creativity. Not logic, not deduction, not induction, but the power to hypothesis new ideas. The power of discovery, to discern new principles of the universe that we previously did not know but were there waiting to be revealed to the human mind. These scientific discoveries spawn new technologies which are the primary source of economic growth. Thus, it is the responsibility, nay the obligation of every society to nurture and develop that creative potential innate in all its citizens from birth to death.

For all citizens to realize their potential, live productive lives, and raise their families without fear of hunger and security, a nation must have the economic means to expand the total physical wealth of society over succeeding generations.  An advanced industrialized nation requires a healthy manufacturing sector, which is also an essential component of a productive agriculture sector.  The absence of robust agro-manufacturing economies in Africa is crime along with its huge deficit in infrastructure.

Sadly, the West does not have the vision to assist African nations in overcoming these deficiencies. China in all, but name has launched the equivalent of a Marshall Plan for Africa.

Among the eight major initiatives that President Xi laid out at the Africa-China Summit, China will:

1.Promote industrialization; 2. Support agricultural assistance programs; 3. Work with the African Union (Agenda 2063) to formulate a China-Africa infrastructure cooperation program; 4. Increase its imports from Africa, in particular non-resources products; 5. Train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges.

China has come to understand that it is the common interest of its own country, and in the fact all nations, is to help Africa develop productive industrialized societies not dependent on revenue from one resource or one crop. Under these improved conditions, hunger and poverty, the underlying causes for conflict, can be eliminated. Great progress can be accomplished in Africa and the world, if the US and Europe acquire the wisdom to join China’s Spirit of the Belt & Road

Below are three articles with excerpts that provide useful background to understanding Africa’s productive relationship with China.

“The recently concluded China-Africa Summit offers a new deal for Africa’s recovery. The Forum for China-Africa Cooperation (FOCAC) has the making of a 21st century equivalent of the Marshall Plan, America’s massive economic rescue programe that President Harry Truman unveiled for Europe on April 3, 1948.

AFRICA’S INDUSTRIALISATION

On its part, China is taking a Pan-African approach targeting projects with regional impact such as Kenya’s standard gauge railway.   Like the Marshall Plan that prioritized the reindustrialization of Europe after the war, China is laudably giving a pride of place to Africa’s industrialisation.

Industrialization was top on the list of President Xi Jinping’s eight-point plan to guide Chinese aid to Africa in the next three years. Recipients of Marshall Plan had to invest 60 percent of these funds in industry. The funds also involved Technical Assistance Programes to create a skilled labor force to drive industrialization.”       Read: China’s Marshall Plan for Africa-Debt or New Deal ?

________________________________________________________

“Speaking as the Chairman of the African Union, President Paul Kagame of Rwanda, expressed the will of Africa very clearly: “Africa wishes to be a full and integral part of the Belt and Road Initiative.” And in spite of the myriad attacks in the Western media regarding the Belt and Road’s alleged “debt trap”—and its description of China’s extensive involvement in Africa as a “new colonialism”—this “fake news” has not blurred the vision of Africa’s leaders, who have stayed focused on the future of the continent.

Ramaphosa also praised the work of China’s Belt and Road Initiative: “Why do we support the Belt and Road Initiative?” “Because we are confident that this initiative, which effectively complements the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China.  It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.” Read: FOCAC Summit: Turning Point in History

__________________________________________________________

“It can be said that this sentiment is near universal among the African nations now participating in the BRI. Indeed the president of the African Development Bank (AfDB), Dr. Akinwumi Adesina, told Xinhua on the sidelines of the summit, “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure. The population is rising, urbanization is there, and fiscal space is very small.” The AfDB president added, “They are taking on a lot more debt, but in the right way.” Read: Changes Underway as FOCAC Convenes

New Course on African History: The Effects of 500 Years of Slavery and Colonialism on Africa

I will be teaching this course in the Fall at the Community College Baltimore County, and Frederick Community College, Maryland, USA

The Effects of 500 Years of Slavery and Colonialism on Africa

New! The Effects of 500 Years of Slavery and Colonialism on Africa
7 sessions, 14 hours

Africa is the poorest continent with hundreds of millions of people living on $2 per day. African nations have the greatest deficit in basic infrastructure like roads, rail, and energy. It’s the only continent where cholera is endemic. African nations are also spending billions of dollars importing food when they have an abundant amount of fertile land. Learn about the causes for Africa’s current condition due to it’s unique history of slavery and colonialism. With the recent China-Africa Summit-(FOCAC) in Beijing, one should be optimistic that economic conditions on the continent are changing for the better

Instructor: Lawrence Freeman has been involved in Africa for almost 25 years and has made over two dozen visits to the nations of Sudan, Nigeria, Mali, Chad, and Ethiopia. He has studied the history and political economy of several Africa nations. Lawrence has attended weekly seminars and forums on Africa in Washington DC including Congressional hearings on Africa. As a result, Lawrence has attained an in-depth knowledge of both historical and current developments of Africa. He has written dozens of articles analyzing the political economies of Africa nations including Sudan, South Sudan, Nigeria, Kenya, Mali, Ethiopia, Zimbabwe, and the Democratic Republic of the Congo. He specializes in promoting policies for physical economic development, and has presented his ideas to government and non-government circles alike in both Africa and the United States. Lawrence is the Vice Chairman of the International Scientific Advisory Committee to the Lake Chad Basin Commission, and played a prominent role in the International Conference to Save Lake Chad in Abuja, Nigeria from Feb 26-28, 2018. He is promoting the Transaqua water project to recharge the shrinking Lake Chad

LR565 The Effects of 500 Years of Slavery and Colonialism on Africa
5-Digit  Number: 16290
Tue, 1 p.m. – 3 p.m., 11/6 – 12/18 Location:  Conference Center/E-106
Tuition: $50.00          Fee: $114.00     Total: $164.00
MD residents age 60+ pay fee only

FOCAC Summit: President Xi “China and Africa will walk together towards prosperity.”

{I have been telling my friends for years that China-Africa cooperation will change the African continent. With investments in vital categories of infrastructure, African nations can industrialize and develop advanced agro-manufacturing sectors. Economic sovereignty is now possible for African nations after 500 years of slavery and colonialism.

This recent FOCAC summit has placed Africa-China relations on center stage in front of the whole world. As Faki Mahamat, Chair of the African Union Commission said at the conference; China-Africa cooperation is a solid foundation for a new international order.(Watch the video of his remarks below)  

I will be writing more on the significance of the new era of China-Africa cooperation, but for now, we can and should rejoice. The world has changed for the better, even though there are dangerous pitfalls ahead. }

 

China To Invest $60 Billion in Africa over the Next Three Years; Xi Says: ‘Explore a New Path of International Relations’

Sept. 3, 2018

Chinese President Xi Jinping in his keynote of the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), announced that China would be investing $60 billion in Africa over the next three years, which would include $15 billion of interest-free and concessional loans, $20 billion of credit lines, a $10 billion special fund for development financing, a $5 billion special fund for financing imports from Africa, and encouraging investment by Chinese companies to the tune of $10 billion in Africa.

In his speech, President Xi said that China-Africa cooperation was based on the following principles;  The Five “No’s”:

No interference in African countries and pursuit of development paths that fit their national conditions;

No interference in African countries’ internal affairs;

No imposition of China’s will on African countries;

No attachment of political strings to assistance to Africa;

No seeking of selfish political gains in investment and financing cooperation with Africa.

“We welcome Africa to the fast train of Chinese development,” Xi said. Central to the cooperation has been the Belt and Road Initiative, which in Africa is in synergy with the African Union’s “Agenda 2063,” which marks the centennial of the official end of colonialism in Africa in 1963.

President Xi laid out the eight major initiatives that China would implement in collaboration with Africa in the coming three years:

1. In industrial promotion, China will set up a China-Africa trade expo in China in order to encourage Chinese investment in Africa.
2. It will also carry out 50 agricultural assistance programs, provide $147 million in food aid to African countries affected by natural disasters and send 500 agricultural experts to Africa.
3. With regard to infrastructure, China together with the African Union will formulate a China-Africa infrastructure cooperation program.
4. With regard to trade, China will increase its imports from Africa, in particular non-resources products.
5. On green development, China will undertake 50 projects focusing on climate change, ocean, desertification prevention and control, and wildlife protection.
6. On capacity building, China will set up 10 workshops in Africa to offer vocational training for young Africans. It will also train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges.
7. In health care, China will upgrade 50 medical and health aid programs for Africa. On people-to-people exchanges, China will set up an institute of African studies and enhance exchanges with Africa on civilization.
8. And on peace and security, China will set up a China-Africa peace and security fund and continue providing free military aid to the African Union and will support countries in the Sahel region, and those bordering the Gulf of Aden and the Gulf of Guinea, in upholding security and combating terrorism in their regions.

African Union’s Moussa Faki Mahamat, Addresses FOCAC Conference

Please review this excellent speech by Faki Mahamat, Chair of the African Union Commission, at the Forum on China-Africa Cooperation. In his remarks the AU Chair called forthe urgent reform of the international financial institutions…That China-Africa cooperation is a solid foundation for a new international order…Our partnership [with China] can reshape the world’s geo-political landscape”He went onto say that the AU welcomes the Belt and Road Initiative and its synergy with AU’s “Agenda 2063.”

 

Presidents Ramaphosa and Kegame: Africa Supports the Belt and Road Initiative

In his speech to the FOCAC Summit, South African President Cyril Ramaphosa said, the Belt and Road Initiative was in the interests of the African nations. China-Africa cooperation, he said, was in the interests of the African nations. “In the values that it promotes, in the manner that it operates, and in the impact that it has on African countries. FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe...It is premised on the African Union’s Agenda 2063, a vision that has been crafted in Africa, by Africans. It is a vision of an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the international arena.”

“Why do we support the Belt and Road Initiative?” Ramaphosa asked. “Because we are confident that this initiative, which effectively complements the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China. It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.”

Ramaphosa was followed by Rwandan President Paul Kagame, the current rotating chairman of the African Union. “Africa wishes to be a full and integral part of the Belt and Road Initiative. The gains will be enjoyed by everyone.” Kagame praised in particular the personal commitment of President Xi to this initiative. “He has visited every region of our continent, including my country Rwanda. China has proven to be a win-win partner and dear friend,” Kagame said. UN Secretary General Antonio Guterres gave support to the message expressed by the African leaders, who said that “it is vital that current and future development cooperation contributes to peace, security and to building a ‘community of shared future for mankind,'” reiterating a concept that lies at the basis of President Xi’s conception of a new form of international relations. Guterres also expressed support for the importance of the strengthening South-South cooperation.