Rwanda Moves Forward With Nuclear Energy: Time for Africa To Go Nuclear!

October 23, 2019

A nuclear plant. FILE PHOTO | AFP
A nuclear plant. Russia’s nuclear agency Rosatom has signed co-operation agreements to set up the nuclear plants in Rwanda, Kenya, Uganda and Tanzania. FILE PHOTO | AFP

Nuclear power is essential to meet the needs of Africa’s huge energy deficit. However, it will do more for Africa. Nuclear energy not only has a higher energy flux density than hydro, coal, gas, inefficient solar, and silly wind mills, but it embodies a higher level of technology. This will enable African nations to raise the skill level of their workforce, as they learn to build an operate a more technologically advanced energy platform. More engineering schools and training centers will be required as African nations enter the age of civilian nuclear power. Thus, the nuclear energy industry will serve as a science driver for society, while creating higher levels of economic growth. 

Read: Rwanda Approves Nuclear Power Deal With Russia

Excerpts below:

The Rwandan Cabinet has approved an agreement with Russia to advance the use of nuclear energy for “peaceful purposes,” a move that is expected to bolster relations between the two countries and advance the latter’s interests in the region.

This comes ahead of the first Russia-African Forum next week in the city of Sochi, which President Paul Kagame has confirmed attendance, accompanied by a delegation of senior government officials.

The nuclear power deal was first signed in Moscow last December and will see Russian scientists set up a Centre for Nuclear Science and Technology in Kigali.

The deal was boosted in May when a Russian government nuclear parastatal, Rosatom Global, reached an agreement to set up the nuclear plant by 2024—that the government says will help in the advancement of technology in agriculture, energy production and environment protection.

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Nuclear Power at Russia-Africa Forum

The Russia-Africa Economic Forum in Sochi will host a special panel discussion, “Contribution of Nuclear Technologies in the Development of Africa,” on October 23, with the participation of Alexey Likhachev, Director General of Rosatom-the State Nuclear Energy Corporation.

“Rosatom has been active in Africa for a long time. The creation and development of the nuclear industry in Africa will not only solve the problem of the energy crisis, but also change the standard of living, providing full access to public health services, increasing the level of education and food security. We see a great interest on the part of African countries in creating new ties for further technological development. Moreover, we are ready to discuss all possible options for cooperation on the continent. I am sure that Russian-African nuclear projects will have a great future,” said Likhachev on Oct. 15, in a preview of the Sochi event.

The forum in Sochi was also prepared by a conference in Nairobi last week that featured officials of Rosatom and over 150 energy and nuclear professionals from across the globe. Representatives from key African countries that are planning or already implementing their respective programs for developing peaceful nuclear technologies included Côte d’Ivoire, Egypt, Ethiopia, Ghana, Kenya, Niger, Nigeria, Rwanda, South Africa, Sudan, Tanzania, Tunisia, Uganda, and Zambia.

Speaking in Nairobi, Dmitry Shornikov, CEO of Rosatom Central and Southern Africa, emphasized the advantages of joining the atomic club through creating nuclear industries in newcomer countries, and gave an overview of projects with the maximum positive effect on industrial development, enhancing the quality of life and developing ‘knowledge economy’.

Russia’s Growing Involvement in African Nuclear Development

One of the questions of the Oct. 23-24 Russia-Africa Summit is the need for Africa to develop civilian nuclear power. Russia is at the front end of the strategy to equip Africa with nuclear power, reports Sébastien Périmony in his blog “Africa with the Eyes of the Future” in France. No fewer than eight African countries have already signed agreements with Russia’s nuclear power company, Rosatom: Sudan, Kenya, Uganda, Nigeria, Rwanda, Zambia, Zimbabwe, and Ghana.

“The stark reality is that Africa is in dire need of energy: 48 countries in Sub-Saharan Africa produce as much energy as the single country of Spain produces in Europe. That means that every other African has no access to electricity. According to the Global Energy Architecture Performance Index Report 2017, only five African countries have 100% electrification, all of them in  North Africa: Algeria, Egypt, Libya, Tunisia, and Morocco. South Africa follows immediately after, with a rate of 85.40%. Then come Ghana, 64.06%; Senegal, 56.50%; Ivory Coast, 55.80; and Nigeria, 55.60%. Some francophone countries: World Bank Reports gives access to electricity as 16% for Niger, 9% for Chad, 14% for the Central African Republic, and 20% for Burkina Fasso.”

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Read: Time to Invest in Nuclear Energy in Africa

Excerpts below:

“The future of energy and base-load generation is in nuclear, and probably coal and liquefied natural gas. Kenya needs to push ahead with the nuclear agenda to meet the country’s energy needs,” said the managing director of Kenya Nuclear Electricity Board Collins Juma.

Mr Juma said that Kenya requires at least 18,000MW to become a middle-income and an industrialized nation. With the total installed capacity at 2,370MW, it will need to diversify its energy sources to reach that target.

Countries in East Africa are among those on the continent seeking to build nuclear power plants driven by the need to end power challenges, and accelerate industrial and economic growth.

Russia, China and South Korea have emerged as the key vendors of nuclear energy, offering to help in financing the deals.

The International Atomic Energy Agency (IAEA) has been at the forefront of the campaign to sell nuclear to Africa. Its deputy director-general Mikhail Chudakov told The EastAfrican that nuclear energy holds the key to industrial development.

“Africa needs to understand that solar and wind are good for home lighting [but not manufacturing],” he said.

Massive investments

But nuclear energy needs massive resources to build and operate, so state-owned companies like Russia’s Rosatom, China General Nuclear, China National Nuclear Corporation and Korea Electric Power Corporation are pushing various financing and construction models for the continent’s customers.

The companies have signed agreements and memoranda with African countries, ranging from research and development and human resources development to full reactor projects. Russia and China, in particular, have crafted packages providing state-backed loans, in the process altering the dynamics of nuclear markets.

In Egypt, for instance, Russia is providing 85 per cent of the funding for the 4,800MW plant currently under construction at a cost of $21 billion.

 

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

The Chinese-African built railroad from Addis-Ababa to Djibouti has been a success, as I knew it would. Inaugurated in October 2016, it has  allowed Ethiopia to effectively overcome being a landlocked nation. Railroads increase productivity, create growth, build cities, and establish new manufacturing-agricultural centers. Africa will be transformed-industrialized when it is able to generate hundreds of thousands of megawatts of electricity and build tens of thousands of kilometers of rail lines connecting major capitals, cities, and ports across the continent. Ethiopia has been a leader in economic growth by investing in vitally needed infrastructure, such as the Grand Ethiopian Renaissance Dam-GERD, to begin operation in late 2020.

Railroads across Ethiopia will increase its import and export capability.

Roundup: Ethiopia-Djibouti railway adds impetus to Ethiopia’s agricultural economy

ADDIS ABABA, Oct. 18 (Xinhua) — The Chinese-built Ethiopia-Djibouti railway has won acclaim for facilitating landlocked Ethiopia’s import-export necessities.

For the past more than one year, it has transported much-needed agricultural inputs to Ethiopia’s agriculture-dominated economy.

Tilahun Sarka, Director-General of Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR), said in a recent interview with Xinhua that the 752 km-long Africa’s first transnational electrified railway is leveraging the smooth transportation of Ethiopia’s major import and export commodities, mainly fertilizer and wheat.

“The railway is showing major progress in terms of facilitating Ethiopia’s basic import-export activities as it significantly reduced both the travel cost and time from landlocked Ethiopia to ports in its neighboring Djibouti,” Sarka told Xinhua.

The Ethiopia-Djibouti railway commenced its commercial operations for both passenger and freight services in January last year, eventually connecting landlocked Ethiopia to ports in the Red Sea nation of Djibouti.

The EDR director underscored the railway’s achievements over the past one and a half years, with particular emphasis on easing the pressure in transporting the much-needed imported agricultural and food security inputs, mainly fertilizer and wheat, from ports in Djibouti all the way to the Lebu Railway Station on the outskirts of the Ethiopian capital Addis Ababa.

Figures from ERD show that the Ethiopia-Djibouti railway has been able to carry more than 70,000 tons of fertilizer from the Djibouti port to Ethiopia over the past few months, as the East African country embarked with its main harvesting season since May.

“Fertilizer is a very important commodity to Ethiopia’s socio-economic well-being,” Sarka said, adding “It is by far considered as a major imported priority item by the Ethiopian government.”

Ethiopia – Africa’s second populous nation with about 109 million total population, according to the World Bank’s latest report – is an agrarian economy.

The UN Food and Agriculture Organization (FAO), which described Ethiopia as “one of the top-performing economies in Sub-Saharan Africa with an average growth rate of 11 percent over the last seven years,” dubbed the agriculture sector as “the mainstay of the Ethiopian economy, and exports almost entirely relies on agricultural commodities.”

Sarka, who dubbed fertilizer as a “political cargo,” also said that “a failure to import the much-needed fertilizer would adversely affect Ethiopia’s overall security, as far as igniting public uproar against the Ethiopian government.

Sarka also emphasized the joint Ethiopian government and EDR’s future plan that envisaged “to significantly boost the railway’s share in the transportation of fertilizer to the country.”

“Both the Ethiopian government and EDR give particular emphasis to the smooth transportation of fertilizers from the Djibouti port to Ethiopia, as well as the export of other export-bound agricultural commodities from Addis Ababa and other parts of Ethiopia to the port,” Sarka said.

Ethiopia imported a total of about 1.3 million tons of fertilizer during the just-concluded Ethiopian 2018-2019 fiscal year, according to figures from the Ethiopian government.

Built by two Chinese companies, the first 320-km of the project from Sebeta to Mieso was carried out by the China Railway Group Limited (CREC), while the remaining 423-km from Mieso to Djibouti port section was built by the China Civil Engineering Construction Corporation (CCECC).

The Ethiopia-Djibouti railway is presently managed by a consortium of Chinese companies – CREC and CCECC – for a period of six years undertaking railway operation and maintenance management activities.

According to Sarka, the six-year contract was given to the two Chinese firms mainly due to the shortage of electrified railway operation and management experience in the two involved countries.

Ethiopia-Djibouti Railway

Grand Renaissance Dam Essential for Africa’s Economic Growth

Artist rendition of Grand Ethiopian Renaissance Dam-GERD

Grand Renaissance Dam Essential for Africa’s Economic Growth

Lawrence K Freeman

October 14, 2019

Completion and operation of the Grand Ethiopian Renaissance Dam-(GERD) will profoundly affect not only the future of Ethiopia, but all of the Horn of Africa, and the entire African continent. It reflects the bold visionary thinking that characterizes Ethiopia’s unwavering determination to eradicate poverty in the second largest nation on the continent with 103 million people. Ethiopia has been a leader in economic growth for the last decade due to its unparalleled commitment to constructing new infrastructure projects. Although an emerging nation, Ethiopia with assistance from China, completed the Addis-Ababa to Djibouti railroad in October 2016. This is the first and only electrified rail line in sub-Saharan Africa- (SSA), reducing travel time from several days by truck to hours by rail, effectively freeing Ethiopia from the limitations of a landlocked nation via Djibouti’s port.

Ethiopia’s former Prime Minster, Meles Zenawi, who conceptualized the developmental state, proposed building a dam on the Blue Nile, laying the first foundation stone on April 2, 2011. Thus, initiating the construction of a massive hydroelectric dam on the Blue Nile that will be the largest in Africa. The GERD will be 175 meters tall, 1,800 meters wide, with a reservoir of 79 billion cubic meters-(BCM), more than twice the size of the Hoover Dam in the US. It will have the potential to generate upwards of 6,200 megawatts (MW) of electricity. Upon completion, Ethiopia will be the largest net exporter of electricity in Africa with transmission lines to its neighbors that include Sudan, South Sudan, and Kenya. Ethiopia will also become second only to South Africa in power generation in SSA, as it strives to achieve its interim goal of producing 15,000 MW. The GERD, self-financed by bonds sold to the Ethiopian people, is not only a source of tremendous pride, but an indispensable component of Ethiopia’s resolve to expand its manufacturing sector and become a “middle income” nation by 2025. A nation must have abundant and accessible electricity in order to power an industrialized economy. With more than 60% of its population deprived of access to electricity, and energy demands growing every year, Ethiopia wisely realized that utilizing the potential hydro-power of the Blue Nile to drive its economic growth was not an option; but a necessity.

Sovereignty Superior to Colonialism

 Egypt is accusing Ethiopia of violating the 1959 agreement for utilization of water from the Nile River, which stipulated that 55.5 BCM of waters be allocated to Egypt, 18.5 BCM to Sudan and that no other nation could interfere with the flow of water in the Nile.  There is no basis in law or physical topography for Ethiopia to adhere to this agreement for the following reasons:

  • The 1959 water agreement is a rewrite of the British imperialist 1929 water treaty, when Egypt was a British colony that governed Sudan under the Anglo-Egyptian Condominium (1899-1956).
  • The Blue Nile flowing from Lake Tana in the Ethiopian highlands that joins the White Nile in Khartoum, provides 85% of the Nile water as it travels north through Egypt to the Mediterranean Sea.
  • Ethiopia, as an independent nation that was never colonialized, was not a signatory to either water agreement.
  • Ethiopia has the sovereign right and obligation to utilize its natural resources, in this case water, to improve the living conditions of its people.

The Nile River, although the longest in the world at 6,650 kilometers, is not the most voluminous. Historically, the Nile was the only water way to cross the Sahara Desert from SSA. Today ten nations in Eastern and Central Africa are part of the Nile Basin with their total population approaching 500 million, whose present and future needs exceed the 84 BCM of Nile water. For development of the Nile Basin, it is urgently required that:

  • a new approach to water management for the region, which supersedes the archaic colonial agreement.
  • a new system for generating additional water. A crash program to create billions of cubic meters of fresh water through desalination is an obvious solution.

In essence, a “second Nile” must be created. Nuclear energy, utilizing its higher heat source, would be ideal for removing salt through evaporation, and, equally as important, supplying thousands of megawatts of power to energy-starved nations.

Ethiopian Prime Minister Abiy Ahmed, Awarded Nobel Peace Prize 2020 (Courtesy of MGN.TV)

Shared Common Interest

The Declaration of Principles, signed in Khartoum on March 23, 2015 by the heads of state of Egypt, Sudan, and Ethiopia calls for cooperation among the three nations to resolve disputes concerning the GERD among themselves. The report states: “The Three Countries shall cooperate on the basis of sovereign equality, territorial integrity, mutual benefit and good faith in order to attain optimal utilization and adequate protection of the River.”

The shared vision of the Nile Basin should be to promote prosperity for all the nations involved. The common shared interest of the upstream and downstream nations is one and the same: to uplift millions of Africans out of poverty and present the expanding youth population with economic opportunities to obtain a meaningful and productive life that secures a future for their families.

 Egypt’s foreign minister, Sameh Shourky warned Ethiopia: “Ethiopia’s moving forward with the operation and filling of the Renaissance Dam is unacceptable and a clear violation of the Declaration of Principles and will have negative consequences for stability in the region.” Within Egypt threats of military action have recently resurfaced, but such unwarranted aggression is highly unlikely, and would be roundly condemned by the international community.

According to Xinhua News, Egypt is looking for the United States to play an “international instrumental role,” a position presently not supported by the US State Department. Egypt’s attempt to bring in an outside party to mediate disputes concerning the Nile waters is in direct violation of the Declaration of Principles.

Exercising its sovereign rights, Ethiopia has already completed 60% of the construction of the GERD, and although there have been delays, it is expected to begin producing electricity by the end of 2020. Egypt has no choice but to accept this reality and continue to engage discussions regarding the management of the Nile.  There are substantive legitimate issues respecting the effects of the GERD on Egypt, a downstream nation that is almost totally dependent on Nile water. However, Ethiopia’s sovereignty over the Blue Nile is inviolate. In 2018 the National Independent Scientific Research Group-(NISRG) was established to discuss the filling of the dam’s reservoir. The NISRG consisting of scientists from Sudan, Egypt, and Ethiopia, has met several times, and has reported to the Minister of Water Affairs of each nation.

How many years will it take to fill the GERD’s reservoir, and what will be the flow rate of the Nile at the Aswan Dam, are yet to be resolved. These are technical matters that scientists and engineers must continue to examine in an atmosphere of good will and good faith. Such cooperation is essential to promote the common interests of all nations for a prosperous Nile Basin.

Read:  Modernghana.com Grand Renaissance Dam Essential for Africa’s Economic Growth.

Lawrence Freeman is a Political Economic Analyst for Africa with thirty years of experience in Africa promoting infrastructure development policies.

Can IGAD Achieve Peace Without Economic Development?

September 17, 2019
{Below is a provocative article that challenges the accepted method of achieving peace without economic development. I have always strongly believed that true peace and sovereignty can only be obtained, if the common-shared interest of the parties involved is a the center of negotiations. Improving the living conditions of all the people involved in the conflict is essential for long term viable peace. For example, after the unnecessary separation of Sudan, the West, which helped engineer the creation of South Sudan, failed miserably to build up the economy of the newly created South Sudan. As a result, the people of South Sudan are suffering massively from horrific living conditions. While I do not agree with Mekki Elmograbi’s approach of solely relying on the private sector and the so called free market, I concur with the thrust of his argument. It is clear to me, that the search for peace without economic development is a fool’s errand, and will not succeed.}

igad logo big

By Mekki ELMOGRABI

Could the endless search for peace be a trap? Yes, because “sustainable peace objectives with high standards of security and stability” is the bait that entices stakeholders to ignore the need for private sector development and regional economic integration until peace is achieved.

“We hear questions like peace through development! The maxim is good in theory but in reality, political peace is touted at the cost of economic integration. I no longer believe in everlasting peace as a condition to development or economic growth. In a simple economy, market people could pay to build a police station to increase security in border areas. IGAD, in the meantime, when it is not preoccupied with the “peace trap” it can advise governments on how to allocate the taxes from borders markets to local roads and how to create security in the area. Feasibly, IGAD and AU can hold peace talks and workshops at borders to promote markets and countryside African resorts rather than five-star hotels in the cities.”

Read: IGAD and Peace Trap!

Africa Moving Forward With Infrastructure: Nigeria and Ethiopia

July 28, 2019

President Buhari has maintained his commitment to recharging Lake Chad, which he discussed with me after he was elected to his first term as president in Mach 2015. The International Conference to ‘Save Lake Chad’ held in Abuja, (February 26-28, 2018) adopted the Transaqua inter-basin water transfer project as the preferred solution to reversing the shrinking Lake Chad and transforming the economy of the Lake Chad Basin.  President Buhari has received support form the current Secretary-General of the United Nations, Antonio Guterres, for the recharging of Lake Chad. I am certain there will be further discussion at the upcoming United Nations General Assembly in September regarding Lake Chad, and restoring economic vitality to the Lake Chad Basin. 

Nigeria reiterates commitment to recharge Lake Chad

For more on Transaqua read:

Transaqua Water Project to Save Lake Chad: Roosevelt and Nkrumah Would Concur

The Time Has Come For Transaqua

Chinese-built Ethiopia-Djibouti railway wins acclaim for driving Ethiopia’s import-export needs

I had the privilege to attend the inauguration of the Addis-Djibouti electrified railroad and travel on its maiden trip on October 6, 2016. 

Xinhua-July 24, 2019

“The Chinese-built Ethiopia-Djibouti standard gauge railway on Tuesday received acclaim for driving Ethiopia’s import-export endeavors as it leveraged the growing transportation needs of the country.

“The railway, which connects landlocked Ethiopia’s capital Addis Ababa with ports in Djibouti, mainly garnered the praise for its contribution in the transportation of the much-needed imported agricultural inputs to the East African country.

“According to figures from the Ethiopia-Djibouti Railway Company, the Ethiopia-Djibouti railway, over the past few months period, had transported about 70,000 tons of fertilizer from the Djibouti port to Ethiopia as the main harvesting season approaches.

“”We do this under the agreement with the Ethiopian Agriculture Works Corporation, and as fertilizer is considered to be an important commodity which has to be transported very quickly,” Ethiopia’s state-run news agency quoted Aminu Juhar, EDR Planning Manager, as saying on Tuesday.

“The 756-km railway, which officially commenced its commercial operations for both passenger and freight services between the two countries in January last year, has been instrumental in leveraging transportation needs of Ethiopia from its neighboring Red Sea nation of Djibouti.

“Juhar, who noted the railway’s “significant role in delivering fertilizers needed by farmers on time,” stressed that the much-needed fertilizer have been transported in 26 rounds with the capacity of transporting 2,590 tons of fertilizer in a single trip.

Continue reading

AU Demands: African Integrated High Speed Railway Network

July 4, 2019

The article below written by a friend of mine is a useful over view of the African Union’s plan to build High Speed Rail-lines in Africa.  High-Speed Rail together with the production of abundant supplies of energy are indispensable for the continent’s development and the industrialization of African economies. The link to the entire article that is worth reading follows the excerpts.

“The vital plan for an African Integrated High-Speed Railway Network (AIHSRN), approved by the African Union (AU) in 2014, appears to be going forward energetically. But in fact, Africa is getting only half a loaf at best. Standard gauge rails are being built, but to “save money,” they are not being built to standards permitting the high speeds that the African Union had specified. These “higher”-speed lines are not “high-speed” by any accepted standard. Or, worse, existing lines of the old colonial gauge are being rehabilitated—again because “there is not enough money.”

“Yet having “enough money” is not the problem it seems to be: The principle of Hamiltonian credit—credit extended by government, on the strength of nothing but the skills of the population, and earmarked for projects sure to produce leaps in productivity—has been known in theory and practice for 200 years, even if suppressed by the business schools.” Read my post from earlier this year on Alexander Hamilton: Nations Must Study Alexander Hamilton’s Principles of Political Economy

“AIHSRN is not a master plan for all rail transport in Africa. It is, rather, a plan for rapid rail transport across long distances. And Africa has long distances. To go from Cairo to the Cape of Good Hope by road or rail is more than 10,000 kilometers (6,200 miles)—the equivalent of going from New York to San Francisco and back again.

“Yet with the AIHSRN, an express train could depart from Cairo at 6:30 a.m. on Monday morning, travel at an average of only 220 km/h (137 mph), make only five half-hour stops—at Khartoum, Nairobi, Dodoma (Tanzania), Harare, and Johannesburg—and arrive in Cape Town in time for an early breakfast on Wednesday. The east-west trip from Addis Ababa in Ethiopia to Dakar, Senegal—“only” 8,100 km—will be quicker. The implications of such speed for the African economy—and for African integration in all respects—are enormous.

“The continental plan is for six west-east routes from the Atlantic to the Indian Ocean/Red Sea, and four routes that run from north to south—a 6×4 grid (see map).

“Because of their high speeds, the trains must run on dedicated, standard gauge lines that will not usually accept traffic from other, slower lines of the sometimes denser, surrounding rail network.

“The plan includes the construction of railway manufacturing industries, parts suppliers, maintenance facilities, and the building up of railway training academies.

“The AIHSRN is part of the African Union’s Agenda 2063, a fifty-year plan for the economic, social and cultural development of the entire continent, born in 2013”

Read full article: Africa Integrated High Speed Railway Network

China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?

June 20, 2019

Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations. 

{Independent}: Belt and Road Contributing to Prosperity in Africa

A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo.

Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open
countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.

German Mittelstand Supports New Silk Road

China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17.

“The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms.

Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated.

“The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.”

Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded.

“The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a forum later this year in Germany on the BRI for partners to establish project-related contacts.

 

In Africa, the Belt and Road Is Generally Spurring Socio-EconomicDevelopment

Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project, also known as Lamu corridor is a transport and infrastructure project in Kenya that, when complete, will be the country’s second transport corridor

May 12, 2019

The Belt and Road strategy of international cooperation already up and running and phenomenally redrawing the global development map. With outlaying economic corridors and tremendous added value it is also putting Africa in the front-line of emerging global economic hubs, wrote Charles Onunaiju, Director Center for China Studies, Utako, Abuja, in his article, “Africa and China’s Belt and Road Strategy,” that appeared in {The Sun} of Nigeria on May 8.

Elaborating the contribution of the Belt and Road Initiative in Africa, Onunaiju wrote: “Since the action plan of the Belt and Road strategy was rolled out, key infrastructure projects have sprung up in Africa taking shape from its concessional funding support and inspirations of facility connectivity. In respect of overland construction, Chinese companies through concessional financial support have built the Addis Ababa-Djibouti Railway in Ethiopia, which is the first electrified railway in Africa, the Mombasa-Nairobi Railway in Kenya, the Abuja-Kaduna Railway in Nigeria, Benguela railway in Angola, and many others, including the Lagos-Ibadan-Kano-Abuja [railroad] under construction.

“With regards to the maritime component of Belt and Road Initiative, Africa features eminently in the key infrastructure projects. So far, Chinese companies have constructed the port of Bagamoyo in Tanzania, the No. 19 berth of the port of Mombasa and three berths of port Lamu, all in Kenya, the New port of Pointe-Noire in the Republic of Congo or Congo Brazzaville, the Lekki Deep Seaport in Nigeria, the Kribi Deep seaport in Cameroon, and the port of Tamatave in Madagascar.

“Under the framework of the Belt and Road strategy of international cooperation, the port of Cherchell in Algeria has been built and is in operation, while the Port of Luanda in Angola is under construction. The distinct feature of each of these ports is that they either have access to major road connections or sit near the sites of industrial parks, thereby having significant impacts on economic development of the coastal areas of Africa.”

Read the entire article below.

Africa and China’s Belt and Road strategy

Second Belt & Road Forum: Infrastructure is the Bedrock of Development

April 30, 2019

2nd Belt & Road Forum-April 25-27, 2019 (courtesy TheNews.com)

Xi Jinping’s Keynote to Belt and Road Forum Emphasized Goals of the BRI

Chinese President Xi Jinping’s speech to the opening ceremony of the Second Belt and Road Forum on April 26, “Working Together To Deliver a Brighter Future For Belt and Road Cooperation,” broadly laid out the BRF approach and prospects for the future.

“Together, we will create an even brighter future for Beltand Road cooperation…. The joint pursuit of the BRI aims to enhance connectivity and practical cooperation. It is about jointly meeting various challenges and risks confronting mankind and delivering win-win outcomes and common development…. A large number of cooperation projects have been launched, and the decisions of the first BRF have been smoothly implemented. More than 150 countries and international organizations have signed agreements on Belt and Road cooperation with China….
“Infrastructure is the bedrock of connectivity, while the lack of infrastructure has held up the development of many countries. High-quality, sustainable, resilient, affordable, inclusive and accessible infrastructure projects can help countries fully leverage their resource endowment, better integrate into the global supply, industrial and value chains, and realize inter-connected development. To this end, China will continue to work with other parties to build a connectivity network centering on economic corridors such as the New Eurasian Land Bridge….

“Innovation boosts productivity; it makes companies competitive and countries strong…. China will continue to carry out the Belt and Road Science, Technology and Innovation Cooperation Action Plan and Technology Transfer.”

President Xi also used his speech to present a list of a half-dozen major policy steps China has undertaken as part of its Opening Up strategy:
“First, we will expand market access for foreign investment in more areas….
“Second, we will intensify efforts to enhance international cooperation in intellectual property protection….
“Third, we will increase the import of goods and services on an even larger scale. China has a vast potential for increasing
consumption….
“Fourth, we will more effectively engage in international macro-economic policy coordination. A globalized economy calls for global governance. China will strengthen macro policy coordination with other major economies and keep the RMB exchange rate basically stable….
“Fifth, we will work harder to ensure the implementation of opening-up related policies.”

President Xi Jinping Chairs Roundtable at 2nd BRI Forum– ‘Boosting Connectivity for New Sources of Growth’

The concluding day of the 2nd Belt and Road Forum for International Cooperation in Beijing, President Xi Jinping chaired the Roundtable discussion among the 39 guests–37 heads of state plus the leaders of the IMF and United Nations. A joint communiqué has been issued (see separate slug,) and the Chinese Foreign Ministry has also posted a summary of the “Deliverables” from the Forum.

After a day of presentations, as well as sideline bilateral meetings, Xi and his wife Peng Liyuan hosted a welcome banquet for the national leaders. The cordial, but high-level tone of the deliberations April 25-27, was set in Xi’s keynote opening yesterday, when he happily welcomed everyone, “Good morning! As a line of a classical Chinese poem goes, ‘Spring and autumn are lovely seasons in which friends
together to climb up mountains and write poems.’ On this beautiful spring day, it gives me great pleasure to have you with us here at the Second Belt and Road Forum for International Cooperation (BRF).”

Read President Xi’s Key Note address

Second Belt & Road Forum Joint Communiqué States Development Commitments; Lists 35 Specific Economic Corridors–Including “The New Eurasian Land-Bridge”

The 37 national leaders were listed in the very first point of the Communiqué, and the following points identified the role of the “ancient Silk Road” to “the strengthening of the connectivity and the expansion of the world economy in the spirit of promoting peace and cooperation, openness, inclusiveness, equality, mutual learning and mutual benefit” and the role for today’s “Belt and Road cooperation” to do the same thing for the future. The remaining points were grouped under these headings: “Strengthening Development Policy Synergy”; and “Boosting
Infrastructure Connectivity”; and “Promoting Sustainable Development”; and “Strengthening Practical Cooperation”; and “Advancing People-to-People Exchanges”; concluding with, “Way Forward,” which stated, “We envisage the Belt and Road Forum on regular basis with possible follow-up events…[looking forward] to the 3rd Forum.”

Here is the full list of “Economic corridors” identified in the Communiqué:

(1) Addis Ababa-Djibouti economic corridor, including the
development of industrial parks along the economic corridor
(2) Agua Negra Pass International Tunnel
(3) Baku-Tbilisi-Kars new railway line and Alyat free
economic zone in Baku
(4) Brunei-Guangxi economic corridor
(5) China-Central Asia-West Asia economic corridor
(6) China-Europe Land-Sea Express Line
(7) China-Indochina Peninsula economic corridor, including
Laos-China economic corridor
(8) China-Kyrgyzstan-Uzbekistan International Highway
(9) China-Laos-Thailand Railway Cooperation
(10) China-Malaysia Qinzhou Industrial Park
(11) China-Mongolia-Russia economic corridor
(12) China-Myanmar economic corridor
(13) China-Pakistan economic corridor
(14) Eastern Economic Corridor in Thailand
(15) Economic corridor in Greater Mekong Subregion
(16) the EU Trans-European Transport Networks
(17) Europe-Caucasus-Asia International Transport corridor
and Trans-Caspian International Transport Route
(18) the Industrial Park “Great Stone”
(19) International North-South Transport Corridor (INSTC)
(20) the Lake Victoria-Mediterranean Sea Navigation
Line-Linkage Project (VICMED)
(21) the Lamu Port-South Sudan-Ethiopia Transport corridor
(22) Malaysia-China Kuantan Industrial Park
(23) the Nepal-China Trans-Himalayan Multi-dimensional
Connectivity Network, including Nepal-China cross-border railway
(24) New Eurasian Land Bridge
(25) the New International Land-Sea Trade Corridor of the
China- Singapore (Chongqing) Demonstration Initiative on
Strategic Connectivity
(26) Northern Corridor Trade Route in Africa linking the
maritime port of Mombasa to countries of the Great Lakes region
of Africa and Trans-Africa Highway
(27) North-South Passage Cairo-Capetown Pass-way
(28) the Port of Piraeus
(29) Port Sudan-Ethiopia Railway Connectivity
(30) Regional Comprehensive economic corridors in Indonesia
(31) the Suez Canal Economic Zone
(32) Transcontinental shipment of cargo using the capacities
of the Northern Sea Route
(33) Transoceanic fiber optic cable
(34) “Two Corridors and One Belt” Framework
(35) Uzbekistan-Tajikistan-China International Highway

Read entire communique of Belt-Road Forum

Belt and Road Is Unstoppable: `Critics’ Are Strong Supporters

The extraordinary attendance of governments, heads of state and government, and thousands of businesses at the Second Belt and Road Forum, comparing with the largest international meetings in history, was already proof that the Belt and Road Initiative (BRI) has expanded greatly since the first BRF in 2017 and is now  an unstoppable new paradigm of economy. After the Second BRF, certain myths of “backfire” and “criticism” in Asia also fell away.

Malaysian Prime Minister Mahathir Mohamed gave interviews in which he expressed full confidence in the BRI and surprise at its scope. Speaking to Bernama News Agency April 28, he said: “We feel that the [One Belt, One Road] OBOR initiative is not a domination plan by China, which would end up being controlled by China. Instead, it is a policy developed by all the countries, and not only focused on China. Previously … including the Trans-Pacific Partnership, developed countries made the proposals and asked us to accept them. This is not like that; the forum attendees are from small countries and they are sitting with China…They sit together at the same level, and talk about how to develop infrastructure projects.”

In an interview with China’s TV network CGTN, Dr. Mahathir said he had thought the Belt and Road was an infrastructure project for Asia.

“Now it is quite clear that it is, practially, a worldwide project …to improve connectivity and infrastructure development all over the world…I’m very glad I’m here, because now I understand better the character of the project. China has a lot of new technologies, and we need these new technologies.” He forecast large-scale Chinese investment and exports into Malaysia.

Indonesia’s investment minister, Harvard graduate Tom Lembong, who had been critical of China’s rail investments, told {South China Morning Post} that Indonesia has “found China’s openness to its feedback on improving the Belt and Road Initiative highly encouraging…. I believe in the next 5 to 10 years, BRI will stimulate additional investment in probably tens of billions of dollars [in Indonesia],” Lembong said.

In Europe, Italy and Austria are joining Portugal in planning issuance of “Panda Bonds” — infrastructure bonds issued by other countries in yuan, to be issued into China’s bond market. Even Germany Economics Minister Peter Altmaier found the Beijing forum “better than expected,” and is headed back with a Mittelstand delegation.

China’s Belt and Road Aids Africa’s Growth in New Globalization

(China’s CGTN published my article today, on the eve of the historic 2nd Belt and Road Forum)
Opinion-April 24, 2019

Belt and Road Initiative: Another path to globalization

by Lawrence Freeman

Editor’s note: Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policy of Africa for 30 years. The article reflects the author’s opinion, and not necessarily the views of CGTN.

On the eve of the second Belt and Road Forum (BRF), it is irrefutable that the world has been transformed in the five years since Chinese President Xi Jinping announced the Belt and Road Initiative (BRI).China’s archetype for global development is based on the more elevated concept of each country contributing to the “common destiny of all nations” and mankind’s “shared future.”

By focusing on “global connectivity” through massive investments in infrastructure, linking China to the rest of the world through its land and maritime new Silk Roads, China has presented the world with a new paradigm for development – in effect, redefining globalization.

According to the World Economic Forum (September 2018), “the BRI will encompass 70 percent of the world’s population (4.4 billion) and 63 percent of the world’s GDP (21 trillion U.S. dollars),” primarily from construction of rail lines, highways, ports, airports, hydro-energy plants and pipelines.

The first BRF held in May 2017 included 29 foreign heads of state, 11 heads of international organizations and over two dozen attendees on the ministerial level. Because of the expansion of the BRI over the last two years, already 40 world leaders have confirmed their attendance for this year’s conference.

Awakening the Sleeping Giant, Africa

Nowhere, outside of China itself, are the positive effects of China’s BRI more evident than on the African continent. At the 2017 BRF, the only African heads of States who attended were Ethiopia and Kenya, and ministers from Egypt and Tunisia. With Nigeria, the most populated nation in Africa, officially joining the BRI in 2019, and increased collaboration with China throughout all geographical sections of Africa, participation at this year’s BRF from Africa will undoubtedly be higher.

Engineers from the Addis Ababa Information & Communication Technology Development Agency in Ethiopia, Africa, train on Huawei’s networking equipment at the training center at Huawei headquarters in Shenzhen, China, September 15, 2011. /VCG Photo

Prior to the announcement of the BRI, China had already forged a close working relationship with Africa by convening China-Africa Summits (Forum on China-Africa Cooperation) every three years beginning in 2000, rotating the venues between China and Africa.  At the seventh summit held last year in Beijing, all but one of the 54 African nations attended.

Unfortunately, the West lost its vision of development for Africa after the death of President John F. Kennedy, instead adopting a no-infrastructure policy. What Africa has needed most since the 1960s “Winds of Change” liberation from colonialism is infrastructure, water, energy, rail and roads. China has a different view on this.

Ambassador David Shinn, a respected scholar on Africa, wrote last month: “China has been indisputably the single most important builder of infrastructure in Africa since the beginning of the 21st century.”

Take, for example, Djibouti, which is a BRI hub. China is building the Doraleh Multi-Purpose Port and international free trade zone in this northeast African nation, strategically located right off the Indian Ocean and on the Gulf of Eden. It is estimated that one-third of global shipping passes by this port.

In 2016, the first electrically driven train in sub-Saharan Africa, connecting Addis Ababa, the capital of landlocked Ethiopia, to the port city of Djibouti was inaugurated. This rail line built by Chinese companies utilizing and training African laborers and engineers is key to the develop-ment of the Horn of Africa, providing Ethiopia a port to export the products of its nascent manufacturing sector.

Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua that “projects involving cooperation with China are helping Djibouti promote trade in Africa as well as distribution across the East African region… which couldn’t be achieved without developing proper infrastructure, such as seaports and railway connections.”

Chinese workers help to build a new train station in Beliatta in a southern province near Hambantota, which is Chinese managed and designed in Beliatta, Sri Lanka, November 18, 2018. /VCG Photo‍

Hadi called the “debt-trap” propaganda against the BRI, “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”

African nations are attempting to industrialize their economies with growth in their manufacturing sectors. China is assisting by creating special economic zones, industrial parks, and industrial zones in Nigeria, Djibouti, Ethiopia, Egypt, Morocco, and Rwanda. Industry and infrastructure generate jobs, raise skill levels and transfer technology.

Will the West Join the BRI?

Africa’s requirement for infrastructure is enormous, allowing Western nations the opportunity to join with China to industrialize this vast undeveloped continent, which is projected to have 2.5 billion people by 2050. President Xi, at the first BRF, said: “We should foster a new type of international relations featuring win-win cooperation” and “development holds the master key to solving all problems.” Regrettably, western nations have been hostile to joining the BRI. However, last month’s ground-breaking signing of a memorandum of understanding (MOU) by Italy – the first G-7 nation to join China’s BRI – portends a potential change towards a new constructive dynamic.

Read: China’s New Approach to Globalization