Sudan: Sanctions Lifted, Now Development Is Imperative

Lawrence Freeman

October 24, 2017

            On October 12, the U.S. announced the long overdue, official removal of some sanctions on Sudan. Now, new and exciting potentials lie ahead for the future of Sudan and its people. This is not the time to delay; the government of Sudan should seize the moment to implement policies that will lead to the economic development of this vast nation, and the raising of the standard of living of its more than forty million citizens. 

According to U.S. government representatives, President Trump’s executive decision does not terminate President’s Clinton’s E.O. 13067, issued on November 3, 1997, but it removes those sanctions that had enforced an embargo on commercial transactions with Sudan.  Thus, now companies and individuals wishing to export, invest, and trade with Sudan can conduct business using the international banking system without fear of being penalized. However, targeted sanctions remain, and there are licensing requirements for agricultural and medical exports.

This milestone in U.S.-Sudan relations is, in large part, due to the relentless efforts by Foreign Minister Ibrahim Ghandour, especially his leadership over the last sixteen months. Professor Ghandour, who was appointed to head Sudan’s foreign office in June 2015, has successfully changed the dynamics of a detrimental and hostile U.S. attitude against his nation.  Nearly twenty years of sanctions have accomplished nothing except to cause greater suffering and hardship for the Sudanese people.  Finally, this suffocating policy has ended, allowing Sudan the opportunity to move forward. 

However, the U.S. now maintains a peculiar and contradictory policy towards Sudan: Lifting trade sanctions allows companies to conduct commercial activity in Sudan without penalty, but the U.S. cannot offer financial support to investors from any of its lending institutions, because Sudan remains on the U.S. State Department’s list of “states sponsoring terrorism” (SST).

Under the administration’s new executive order, Sudan is removed from a short list of nations under “comprehensive sanctions”: North Korea, Syria, Iran, and Cuba, and is placed on a broader list of nations subject to “targeted sanctions.” The government of Sudan intends to seek redress of its wrongful inclusion on the SST list. Removal from this list would allow Sudan to seek relief from its onerous forty-plus billions of dollars of debt, and make it eligible to receive favorable treatment from U.S. lending facilities. Unfortunately, removing Sudan from the SST list would require the approval of the U.S. Congress, which is still antagonistic towards Sudan.

Shaping a Better Future with China’s Belt and Road

Since Sudan’s liberation from colonialism, during which, the British Imperialists codified into law the artificial division between the so-called North and South, Sudan has never realized it full economic potential. This lack of development has been at the core of Sudan’s difficulties. This can now change.   

The spirit of China’s 21st Century Silk Road has created a new dynamic on the African continent that Sudan is well positioned to harness. Sudan’s neighbors in East Africa are already participating in a density of construction of new rail lines going East to West that have the potential to transform Africa, becoming the eastern leg of the long-awaited East-West railroad that would link the Atlantic to the Indian Oceans. Ethiopia has completed the first electrically driven railroad connecting the capital Addis Ababa to the Port of Djibouti, and has devised a strategy to connect to all its neighboring countries by rail. Kenya has completed the first phase of the standard-gauge railroad, from the Port of Mombasa to Kenya’s capital, Nairobi. This the first phase of a plan to connect the nations of the Horn of Arica to those of the Great Lakes Region. Tanzania has begun the first two stages of Dar es Salaam-Iska-Kagali/Keza-Musongati (DIKKM) rail project, a 1672-kilometer railroad connecting Kigali in Rwanda and Musongati in Burundi to Kenya’s Port of Dar Es Salaam. Most of these transportation infrastructure projects are being supported by China, both in funding and construction.

The Port of Sudan is officially on China’s Maritime Silk Road, and the Ports of Mombasa, Djibouti, and Dar es Salaam are there implicitly.

 Sudan is geographically positioned to become the nexus point for the East-West and North South trans-Africa rail-lines, possibly crossing in the city of Sennar on the Blue Nile. The Sudanese government has already prepared an ambitious multi-phase plan to connect all parts of its territory with its neighbors by rail. China has been a consistent economic partner of Sudan and is a likely candidate to collaborate on these rail projects.

Sudan is also in urgent need of more electricity to power its economy. The erection of the Merowe Dam, with a capacity of 1.2 gigawatts, was a significant accomplishment in 2009-2010, and there have been smaller hydropower projects in the eastern portion of the country. However, Sudan, like the rest of sub-Sharan Africa, is suffering from a huge deficit in electrical power that is now holding back, and will continue to retard economic growth until it is rectified. Sub-Saharan Africa needs over 1,000 gigawatts of power to begin to obtain the level of modern Afro-industrial societies  

Sudan Is Open for Business

Speaking in Washington, D.C. on October 16, at a forum sponsored by the Corporate Council of Africa, Sudanese Minister of Finance and Economic Planning, Dr. Mohamed Othman Al-Rikabii outlined the areas of potential investments in Sudan’s resources, including; water, gold, oil, mining, livestock, gas, and tourism.  He emphasized the enormous potential for investment in agriculture in Sudan, with presently only 20% of its sixty million hectares of fertile land under cultivation.

For the first time in decades, Sudan has the opportunity to design polices that focus on the development of the nation. Productive employment must be created to provide hope for a better future for the Sudanese people, especially its youth, who are living in poverty. This will require immediate construction–shovels in the ground–of vitally needed infrastructure. China, in the “Spirit of the New Silk Road,” will undoubtedly be a willing partner to Sudan’s future economic growth. Whether the U.S., under President Trump, will be wise enough to contribute to Sudan’s development after twenty years of failed sanctions, remains to be seen.  As for the government of Sudan, there is no time to waste, and no acceptable delays.  Economic development is the agenda.

 

Ethiopia, Nigeria, South Africa Moving Forward: What Will US Policy Be?

UN Envoy Haley Off to Africa While McCain and Graham Thump for More War

October 21, 2017–In all the controversy that has arisen around the deaths, earlier this month, of four U.S. Green Berets in Niger, the question that nobody seems to be able to answer is what is U.S. policy in Africa. The Trump Administration hasn’t spelled out a strategic concept, beyond giving U.S. military forces looser rules of engagement to go after terrorists. U.S. Ambassador to the UN Nikki Haley will be the first member of the Trump Administration to actually visit Africa when she travels to South Sudan, Ethiopia, and the Democratic Republic of Congo next week. Her mission, announced by President Trump last month on the sidelines of the UN General Assembly, is officially to review UN peace-keeping activities on the continent, but she may go ‘off-mission’ and freelance on policy.

       Back in Washington, the Senate Armed Services Committee is growing increasingly frustrated with what they say is a lack of information flowing from the Pentagon on the Niger attack, but the Committee clearly has war-making on its mind as well. Members of the Committee met with Secretary of Defense James Mattis, after which Sen. Lindsey Graham (R-SC) said that the Trump Administration plans to step up its counter-terrorism operations and loosen its military rules of engagement. “The war is morphing,” Graham said, reported {Politico}. “You’re going to see more actions in Africa, not less. You’re going to see more aggression by the United States toward our enemies, not less. You’re going to have decisions being made not in the White House, but out in the field, and I support that entire construct.

       “So the rules of engagement are going to change when it comes to counter-terrorism operations,” he said

Ethiopia to Inaugurate Two Industrial Parks

October 21, 2017 – The Adama and Dire Dawa industrial parks, whose construction was launched in 2016, will be inaugurated at the end of this month, reports Ethiopian News Agency. The industrial parks will specialize in textile, apparel, and agro-processing and will increase the number of parks with similar sector to five next to Hawassa, Mekele and Kombolcha, according to Ethiopian Investment commission.

The industrial park in Hawassa, which was inaugurated last year, started operation. Companies have also shown keen interest to open shop at the recently inaugurated industrial parks in Mekele and Kombolcha.

The government spent about USD 315 million to develop the two industrial parks, deputy commissioner in charge of Industrial Parks, Belachew Mekuria  (PhD), said.

As Adama and Dire Dawa are in close proximity to the Port of Djibouti, it expected that they will contribute to the facilitation of foreign trade for the country.

The parks are expected to further strengthen industrial development in the country by facilitating the way in fulfilling its vision of becoming manufacturing hub in Africa.

Nigeria Should Join the AIIB to Muster Funds for its Infrastructure Development

October 19, 2017–Addressing a forum organized by the Center for China Studies to mark the 19th National Congress of the Communist Party of China and its implications for the Sino-Africa cooperation, held in Abuja, Nigeria, on Oct. 18, Director of the Center for China Studies, Charles Onunaiju urged the Nigerian government “to become a member of the AIIB, as many countries of the world, especially in developing countries, have accessed funds for infrastructure development from the bank,” {Business Day} reported. He also pointed out that there is a desperate need for infrastructure development in Nigeria, and lack of funds is a major reason why the country’s infrastructure has remained inadequate.

          Speaker of the House of Representatives Yakubu Dogara, who was represented by Mohammed Usman (APC-Kaduna), said, “China today is our important partner that has been supporting us, and indeed Africa, in our development strides. Nigeria and China have been cooperating in numerous areas such as in agriculture, education, finance, infrastructure and solid minerals,” Business Day reported.

          “It is in the light of this that we believe the 2017 National Congress of the Communist Party of China will most assuredly provide another opportunity to consolidate on the gains of the on-going bilateral relations between Nigeria and China in particular and Sino-African Relations [in general],” the Speaker said

South African President Zuma Appoints Mahlobo as Energy Mininster To Push His Nuclear Power Generation Plan

 October 17, 2017– In a major cabinet reshuffle, South Africa’s President Jacob Zuma has appointed his confidant David Mahlobo to head the Energy Ministry, raising speculation that Zuma will push through the nuclear deal before his second term ends in 2019, Reuters reported today. Mahlobo was the former state security minister. South Africa is preparing to add 9,600 MW of nuclear capacity — equivalent to up to 10 nuclear reactors — in a contract that could be worth tens of billions of dollars and would be one of the biggest nuclear deals anywhere in decades.

          Commenting on the cabinet reshuffle, including bringing in Mahlobo as the new Energy Minister, Lawson Naidoo of the Council for the Advancement of the South African Constitution (CASAC) said: “This is all about the nuclear deal. Mahlobo has accompanied the President on visits to Russia, presumably to lay the ground for the Rosatom nuclear deal,” according to coverage by Fin24 business site. CASAC is a private outfit which is critical of Zuma and his politics.

          What agitated the anti-nuclear cabal in South Africa further were two events occurring within days. These were: Last Friday’s nuclear site authorization and now today’s cabinet changes, including Energy Minister Mahlobo. On Friday, Oct. 13, Department of Environmental Affairs approved the Final Environmental Impact Report for the Nuclear-1 Power Station and its associated infrastructure, and has authorized the South African electricity utility Eskom to proceed with the construction of new 4 GW nuclear power plant complex at Duynefontein in the Western Cape.

          Nuclear reactor makers including Rosatom, South Korea’s Kepco, France’s EDF and Areva, Toshiba-owned Westinghouse and China’s CGN are eyeing the South African project, which could be worth tens of billions of dollars, Reuters reported

 

Sino-Sudanese Strategic Partnership Could Make the Sudan Great Again

 The historic and successful visit of the Chinese Vice- Premier of the State Council Zhang Gaoli to Khartoum, marked and emphasized the deep ties of friendship and cooperation between the two friendly countries, and shall give further impetus to their embedded mutual coordination in regional and international forums.

Submitting a message to President Al-Bashir form his Chinese counterpart, the senior Chinese official put it clearly that China’s selection of Sudan as strategic partner, was notva random or arbitrary decision, but rather an option carefully calculated and studied.

That is why the said visit was highly celebrated in Khartoum, both in form and substance, as the most important visit of a senior Chinese official, perhaps since the visit of the Chinese presidentHu Jintao to Sudan in 2007, which brought the long standing cooperation between the two countries to yet a new level.

From historical perspective, it goes down in history, that Sudan was the fourth country in the continent, to have established full diplomatic ties with the People’s Republic of China on 4th February 1959. Since then, China has continued to maintain good and exemplary relations with Khartoum to meritoriously culminate in the year 2015, into strategic partnership, when the Sudanese President Al- Bashir was accorded a red carpet treatment during the latter’s historic and landmark visit to Beijing.

The win-win formula was the impetus and the driving force behind Sino-Sudanese rapidly evolving relationship. As a matter of fact, If China’s contribution in the development of Sudan’s oil sector continues to be envisaged as highly significant to Khartoum, nevertheless, such engagement could not have easily streamlined without China’s own receptiveness to the prospect.

Likewise, Khartoum with its timely adoption of its Look East strategy at that time was at the right time of history; Sudan in particular was equally important to China’s efforts to develop its oil sector. No surprisingly, Sudan acted as China’s gateway to Africa.

In other words, China’s involvement in Sudan spans an important phase in the restructuring and expansion of china’s own national oil companies overseas; China’s aim at that time was to build internationally competitive firms and to enhance China’s security in regard to an energy supply.

Arguably, the most important characteristic of the historical relations between Sudan and China is that alongside the economic interactions, it was solidly based on mutual trust and respect. Hence, geographical dimension and the language barriers did not preclude the extension of the relationship on all cultural and social levels. In other words, Sino-Sudanese is a showcase for relationship based on the exchange of mutual interests and benefits and devoid of ulterior or hidden agendas.

What further features and signifies the visit of the senior Chinese official to Khartoum is the fact that it comes in the framework of China’s 900 billion dollar’s Silk Road Vision, which was recently kicked off by Chinese President Xi Jinping. It has been globally perceived as absolutely the most ambitious development and infrastructure project, with the aim of building a modern version of the ancient Silk Road.

In light of the pressing problems and challenges currently facing humankind almost all over the world, the Chinese “Belt and Road initiative, represents a glimmer of hope that will surly benefit the people all over the world, particularly the third world. The initiative firmly predicated that civilisations by and large, thrive with openness and nations prosper from trade exchange.

Not surprisingly, Sudan was among the first African countries which hailed and blessed such historic, extraordinary and momentous project. In fact,

Sudan has every reason to wholeheartedly support the Chinese initiative; taking into cognizance that Sudan historically, and due to its geographical location, was a link between the Arab world and Africa. Besides, perhaps since time immemorial, the ports in Eastern part of Sudan have been the meeting-point for convoys coming from China to Africa.

Sudan has always maintained its desire to encourage more African countries to strengthen mutually beneficial cooperation with China under the framework of the Forum on China-Africa Cooperation. In fact the package of projects planed in the womb of this initiative, represent the main starting point for the advancement of developing economies like the Sudan. Luckily enough, Sudan and China are currently putting the final touches and understandings to embark on a number of vital projects in the fields of transportation, energy and agriculture. To that effect, Mr. Zhang stressed the need to create synergy between the Belt and Road Initiative and Sudan’s development strategy and boost bilateral cooperation in some new areas such as agriculture, mining and port construction.

Perhaps the most ambitious developmental project in the initiative is the modernization of the railway network at the regional level; taking advantage of Chinese expertise and funding, China plans to finance and build a railway connecting Ethiopia to Sudan in the footsteps the Ethiopia-Djibouti recently constructed railway line, which besides providing Ethiopia with yet a new sea outlet for the Red Sea, shall further cement consolidate the already evolving Sudanese-Ethiopian bilateral ties in all fields of mutual benefits ..

By the same token, a similar giant project in the pipeline, is the railway line linking Sudan with Chad and Cameroon to the west, which will form the basis for the completion of the African ambitious dream of linking and connecting Africa by trains from South Africa to Egypt in the north, and from the Red Sea in the east to Senegal and the Atlantic Ocean in the west.

These promising projects shall heavily boost the Sudanese economy and multiply its innumerable investment opportunities. As a matter of fact and with regard to the energy projects, Sudan has already begun to benefit from the Belt and Road initiative, unleashing serious negotiation for the establishment of the first Sudanese nuclear plant for peaceful purposes in cooperation with Chinese companies. In the same context, Sudan is currently seeking to discuss opportunities for financing solar power stations as well as constructing more dams for irrigation and electricity projects.

As referred to in the beginning of this article, Sudan enjoys a long two – decades of cooperation with China in the exploration, production and export of Sudanese oil. During his recent visit, the Chinese senior official, Mr. Zhang reiterated that the two countries need to strengthen cooperation in oil and gas exploration and development, and work actively to explore new cooperation areas under the framework of the Belt and Road Initiative.

In agriculture, taking stock of Sudan’s huge natural resources, Sudan will be one of the largest beneficiaries from the Chinese initiative. Perhaps the giant strategic projects shall include inter-alia, the implementation of a big and exemplary slaughterhouse for the export of Sudanese meat, such promising and long awaited project, shall warrant the influx of additional hundreds of millions of dollars to the Sudanese treasury, in the form of added value of livestock and carcass waste.

Moreover making use of Chinese extended expertise and technology, the two old friends are currently engaged and planning to join hand in hand, to boost Sudan’s huge potential in cotton production, with the ultimate goal of making the Sudan great again in the field of textile industry, both regionally and internationally.

On the political level, the belt and road initiative is projected to play effective role in the establishment of further pillars of stability and peace in the Sudan; via its huge development projects, the initiative shall directly address the remnant root causes of poverty and conflicts in a country like the h the Sudan.

The initiative is anticipated to play a major role in promoting and consolidating the chances of peace and stability, taking into consideration that, the initiative-per se- can and can only succeed and flourish in a framework of love, coexistence and peace. Mr. Zhang reaffirmed in Khartoum that China will, as always, support Sudan’s efforts in safeguarding its sovereignty and territorial integrity as well as achieving domestic peace and stability.

Can Ethiopia be Africa’s leading manufacturing hub?

With Ethiopia having the second biggest population in Africa, it is under growing pressure to tackle unemployment. The BBC’s Alastair Leithead visited the country to find out how it is tackling the problem.

The factory workers sing Ethiopia’s national anthem in unison as one shift ends and another prepares to begin.

Outside, a fleet of passenger buses pulls into Hawassa Industrial Park, as thousands of textile workers – most of them women – switch places.

The new arrivals take up their stations behind sewing machines, ironing boards and cutting tables as the shirts and suits start taking shape.

The park, claimed to be the biggest in Africa, is 140 hectares (350 acres) of factories, with a water treatment plant and its own textile mill.

Six months after opening in southern Ethiopia, 10,000 people already work here, and at full capacity it is expected to provide 60,000 jobs.

continue reading

Interview with Sudan Foreign Minister

BRICS, China, and Ethiopia Promote Industrialization

BRICS ministers adopt new industrial action plan

The industry ministers from Brazil, Russia, India, China and South Africa (BRICS) adopted a new action plan to deepen industrial cooperation among the five nations, Trade and Industry Minister Rob Davies said in a statement on Sunday. Davies and his counterparts from the BRICS grouping attended a meeting in Hangzhou, China where industrial and manufacturing matters were discussed and which culminated in the adoption of a seven-point action plan. “The action plan states that the world economy is still in a period of profound adjustment after the international financial crisis,” Davies said.

 “Industrial sectors, the manufacturing sector and the service sectors related to it in particular, have become key factors in sustaining mid- and long-term economic development.” At the meeting, the ministers acknowledged that the new industrial revolution of digitisation among other things will change traditional production flows and business models that will give rise to new industrial forms.

The following seven points have been identified as key in the action plan:

       strengthen industrial capacity cooperation 

       strengthen the coordination and match-making in the field of industrial policies

       promote the cooperation in the development of new industrial infrastructure

       expand cooperation in technological development and innovation

       deepen cooperation in the field of small and medium enterprises (SMMEs)

       strengthen cooperation in standard area

       facilitate all-round cooperation with the United Nations Industrial Development Organization (UNIDO)

He emphasized that industrial development strategies and investment cooperation have to grapple with the potential threats in particular in the context of high unemployment.  Davies said the industrial development cooperation between the Brics countries can be used as a springboard to foster growth and development and create work opportunities. BRICS countries will focus on using their respective rich natural and human resources and broad domestic markets to broaden industrial capacity and policies, while working together in developing new industrial infrastructure and technology.

Chinese investment leads way as Ethiopia opens to outside

As Ethiopia, the most populous nation in East Africa, is spreading its economic relations across the globe, investment from the world’s most populous nation China is playing a prominent role. Ethiopia, with a population of some 100 million, is a country on the move with rail, air and road infrastructure projects and an ambitious industrialization plan.

Ethiopia keenly needs investment from industrial giants like China to give its burgeoning population, which is estimated to grow by 2 million annually, ample employment opportunities. According to the Ethiopian Investment Commission (EIC), there have been 279 Chinese companies with more than 571-million-U.S.-dollars worth of investment, creating more than 28,300 jobs in Ethiopia between January 2012 and January 2017.

Huajian Industrial Holding Company Limited, a Chinese company that has a long-term investment plan in Ethiopia, is operating two plants in the country. Yin Xinjun, Vice General Manager at Ethiopia Division of Huajian Industrial Holding Company Limited, says Huajian’s decision to have its first plant in Ethiopia stems from the country’s firm desire for industrialization. In fact, a personal call for more investment by late Ethiopian Prime Minister Meles Zenawi during an August 2011 visit to China is what motivated initially Huajian to invest in Ethiopia, says Yin. According to Yin, Huajian’s investment in its first African plant had overcome several challenges, including logistical ones. Huajian initially had to transport its goods through an overcrowded highway from the plant in landlocked Ethiopia to Djibouti port. The problem has been partially solved with the construction of the 85-km Addis Ababa-Adama Expressway funded partly by the Export-Import Bank of China (China EXIM bank) and built by China Communications Construction Company (CCCC). The 500-million-dollar expressway was inaugurated in May, 2014.

Huajian also had to face intermittent power and water outages. The Ethiopian government later solved this problem through a special water and power line for the Eastern Industry Zone where Huajian’s first plant is located. Overcoming these challenges, Huajian currently employs more than 4,000 Ethiopians with a plan to increase employment to 50,000 people by 2022. Having established a plant in the Dukem industrial zone, 37 km south of Addis Ababa, Huajian is currently building a massive 138-hectare international light industry city in Addis Ababa. With the completion of the light industry city, Huajian foresees increasing its export revenue from 30 million dollars in 2016 to 4 billion dollars by 2022

However Western critics warn Ethiopia of being trapped in a neo-colonial relationship and some Ethiopians wonder if the Ethiopia-China relationship comes at the expense of other countries. Gedion Jalata, Program Manager of Africa China Dialogue Platform at Oxfam International, says both views miss the mutual beneficial and sovereignty respecting aspect of the bilateral relations. Jalata points out that Ethiopia is one of the beneficiaries of the China-proposed Belt and Road Initiative.

While Ethiopia is attracting massive Chinese investment in infrastructure projects, the Ethiopian government has set its sight in particular on Chinese involvement in industry parks. Ahmed Shide, Ethiopia’s Minister of Transport, says the country plans to utilize Chinese built infrastructure to boost its industrial exports. Shide is especially keen on the 4.2-billion-dollar Chinese built and financed 756 km Ethiopia-Djibouti electrified rail line to boost its industrial exports.