China’s Belt & Road Initiative Truly is Helping Africa Develop

Below are edited excerpts from a new report by the China-Africa Research Initiative-at Johns Hopkins in Washington DC (Brief #23, 2018). It provides a useful analysis that refutes the misinformation that China is “stealing” Africa’s resources.

“Silk Road to the Sahel: African ambitions in China’s Belt and Road Initiative”

Yunnan Chen

Where Does Africa Fit?

THE BRI SIGNIFIES A SHIFT IN CHINA’S economic engagement with Africa, away from the resource trade characterized by the boom of the 2000s, towards a greater emphasis on infrastructure, industrial cooperation, and connectivity. From single bilateral infrastructure projects, there has been a new term ‘corridorization’ of infrastructure: creating economic corridors and networks at a regional scale to promote cross-border trade and integration.

East and North Africa have been the focus of the BRI in Africa, though countries in West and Southern Africa have also signed cooperation agreements under the framework of the BRI.  As part of the ‘maritime silk road’, Chinese actors have been linked to several major port and transport projects. Chinese firms have invested heavily in Egypt’s Suez Canal corridor, with plans to expand to a second canal as well as new terminals at the port of Alexandria.

China’s Maritime Silk Road connecting Asia to the East-coast of Africa

In Sub-Saharan Africa, Djibouti has emerged as a BRI hub. As well as being the location for its first overseas naval facility, China has financed multiple economic infrastructure projects totalling US$1.8 billion in the small African state, including a new multipurpose port at Doraleh (with specialized terminals for livestock and LNG), as well as a new free trade zone complex adjacent to the port, commissioned in July 2018 . In Kenya, Chinese firms have also won construction contracts for three berths for the new deep-water port in Lamu.

Politically, the BRI’s presence in Africa has been expanding. The most recent Johannesburg Forum of China Africa Cooperation-(FOCAC)  declared as one of its goals: “[to] actively explore the linkages between China’s initiatives of building the Silk Road Economic Belt and 21st Century Maritime Silk Road and Africa’s economic integration and sustainable development agenda”. Countries linked to the BRI; Morocco, Egypt, and Ethiopia, have also been singled out in FOCAC among ‘industrial cooperation demonstration and pioneering countries’ and ‘priority partners for production capacity cooperation countries’; these countries have seen a rapid expansion of Chinese-built industrial zones, presaging not only greater trade but also industrial investment from China. However, it may also suggest further stratification in China’s political engagement with Africa as a region, increasing the geopolitical importance of select countries.

Continue reading Silk Road to the Sahel

Africa Will Be the Breadbasket of the World With Investment in Physical Infrastructure

Africa Should be the Breadbasket of the World, Says the African Development Bank President

Aug. 9, 2018–Addressing the 2018 Agricultural and Applied Economics Association Annual Meeting in Washington attended by over 1,600 agricultural and applied economists from around the world, African Development Bank (AfDB) President Akinwumi Adesina said Aug. 5 that Africa should be the breadbasket of the world, and questioned why Africa should be spending $35 billion a year importing food.

“All it needs to do is harness the available technologies with the right policies, and rapidly raise agricultural  productivity and incomes for farmers, and assure lower food prices for consumers,” Adesina said, according to the AfDB website. “Technologies to achieve Africa’s green revolution exist, but are mostly just sitting on the shelves. The challenge is a lack of supportive policies to ensure that they are scaled up to reach millions of farmers,” he stated, not referring to phony “green” environmentalism, but the green revolution that raises productivity and would make Africa food secure.

Adesina, who was the 2017 World Food Prize winner, is advocating the creation of staple crops processing zones across Africa (SCPZs): vast areas within rural areas, set aside and managed for agribusiness and food manufacturing industries and other agro-allied industries, enabled with the right policies and infrastructure. “I am convinced that just like industrial parks helped China, so will the SCPZs help to create new economic zones in rural areas that will help lift hundreds of millions out of poverty through the transformation of agriculture–the main source of their livelihoods–from a way of life into a viable, profitable business that will unleash new sources of wealth,” he said.

Uganda’s President Yoweri Museveni, in Tanzania, Calls for Investment in Infrastructure Development

Aug. 9, 2018–Uganda’s President Yoweri Museveni, who arrived in Tanzania today on a one-day trip to discuss regional matters with President John Magufuli, said he requested the meeting to brief Magufuli on the outcome of the July 25-27 BRICS Summit in South Africa, during which Museveni made a case for the BRICS countries to invest in the East Africa Community (EAC) which provides high returns on their investments, higher than Europe,  Latin America and Asia. He said: “Investment in infrastructure development is key, especially in roads, railway and electricity. The Chinese have already helped us construct two hydropower dams, in Karuma, which is 600MW, and Isimba 183MW,” the {Kampala Post} reported today. Museveni attended the BRICS summit as rotating head of the EAC this year.

Uganda is a significant beneficiary of Chinese investments in East Africa. China has extended its hand of investment to many African countries, and continues to do so to uplift their economies. Liaoshen Industrial Park and Mbale Industrial Park in Uganda, launched last March, are set to increase local employment. The Chinese investors will offer training to the Ugandans who will work there. Among other spin-offs could be increase trade between Uganda and China.

Development Leapfrogs in Africa Due to Chinese BRI Investment

Aug. 8, 2018 — In an Aug. 7 op-ed to China Global Television Network, He Wenping, senior research fellow at the Charhar Institute, depicts the dramatic changes she’s seen in Africa after a visit to Djibouti earlier this month.

Prof He states the “two wings” of China-Africa industrial capacity cooperation; infrastructure construction and industrial park construction, have been booming on the African continent. This includes the Nairobi-Mombasa railroad and the Djibouti-Addis Ababa Railroad [see slugs in this briefing], as well as rail lines in Angola and Nigeria. In addition there are over 100 Sino-African industrial parks either in operation or under construction.

“Wherever you go, you can see an upsurge in infrastructure construction in Djibouti and a huge presence of China,” He writes. “For example, the largest free trade zone in Africa, jointly managed by Chinese enterprises and local entities, began construction in early July; the already completed Addis Ababa-Djibouti Railway; the port built by China Merchants Group; and the thousands of economic housing projects built with the of Djibouti President Ismail Omar Guelleh when he visited China in November last year. “The Westerners have been around for more
than 100 years but our country is still so poor, and the Chinese came to our country only three years ago but we have already seen great changes and hope,” President Guelleh said.

By the end of 2017, the stock of Chinese investment in Africa had exceeded $100 billion and more than 3,500 Chinese enterprises had invested and operated on the continent.  He points to the example of Dongguan Huajian Group’s investment in a shoe factory in Ethiopia. The Huajian Group has created 7,500 local jobs in Ethiopia, and the Huajian (Ethiopia) Shoe Factory now produces 5 million pairs of women’s shoes annually.

“The hope for development comes from the new impetus provided by the BRI,” He Wenping writes. “Since the Chinese government proposed the BRI in 2013, the African continent, with its abundant resources, huge market potential and strong infrastructure construction demand, has been actively involved in BRI-related projects.

“And in the process of participation, the continent seized an important opportunity for historical development, in order to achieve leapfrog development and transformation from a pre-industrial to a fully industrialized society.”

Kenya’s Standard Gauge Railway Revolutionizing Transportation

Aug. 8, 2018– Kenya’s new, up-and-running Standard Gauge Railway (SGR) from the Port of Mombasa to the capital, Nairobi, built with major Chinese participation, is already revolutionizing the country’s transportation according to the {Daily Nation} of Kenya.

The railway runs seven trains a day carrying a total of 752 containers from the port to Nairobi. While roughly 1,300 containers arrive at the port daily, the time necessary for a ship to clear the port has been reduced from 12 days to just a day and half! This has created a quantum leap in the potential throughput the port, without having to physically expand it. By August, the connection of the SGR line to berths at the port will be complete,  increasing the efficiency even further.

Of course this has led to loss of business and employment at the container freight stations (CFS) where the containers were broken down and transferred to trucks. In answer to this problem Transport Principal Secretary Paul Maringa said that SGR has brought more gains to the economy, ensured efficiency at the Mombasa port and saved roads from overloaded trucks.  “We cannot continue having the conversation about Mombasa and Nairobi. We must look at the bigger picture. We are encouraging the CFS owners to come and open their stations in Nairobi and other parts of the country,” Maringa told the {Daily Nation} by phone.  Asked whether players in the sector should concentrate on investing in Nairobi, Maringa said, “We should not lose the direction. Let’s look at things holistically. We have been able to attract more business at the port which is benefitting Mombasa and the country at large,” he said.  “And this is because of the speed that the SGR has been able to transport cargo to the inland container depot in Nairobi compared to the trucks. We have added handling capacity at the port and that is beneficial to all of us,” he said, stating that the port has handle at least 17,000 containers.

Furthermore the SGR has enabled the government to save money for other development projects.  “The accidents cases have also gone down. Those are the silent benefits of the project as Kenyans’ lives are more important than the businesses we are doing,” he said.

Ethiopia Railway on the Road to Self-Management

Aug. 8, 2018–China is now training Ethiopians to independently run the new standard gauge railway line between Djibouti and Addis Ababa. As of now the locomotive drivers, the management, and many of technicians are still Chinese.  While teams of Ethiopians and Djiboutians have been undergoing training in China, the Chinese and Ethiopian governments are cooperating in building an Ethiopian railway academy.

The Chinese Embassy Economic and Commercial Counselor Liu Yu told the {Ethiopian Herald}, “The Ethiopia railway academy is already under design in Bishoftu. The government has donated $60 million for the  construction. Ethiopia and China have been enjoying strong relationship and cooperating in different areas, one of which is human capacity building takes the epicenter.”

The Ethiopia-Djibouti Railway Share Company (EDRSC) Director General Tilahun Sarka stressed that human resource development is the top priority of the corporation, as the railway has been under the management of two Chinese companies, China Railway Group (CREC) and China Civil Engineering Construction Corporation (CCECC).

Pointing to the high quality of the Chinese training, Tilahun said: “The good thing about Chinese instructors and lecturers, as long as you keep on asking questions you will get what you need.”

“Keeping the ration of the EDRSC share, we are engaged in training about 50 Ethiopian and Djiboutian prospective train drivers. These trainees will exchange ideas on topics related to railway operations technologies and railway management, that could realize and create a competent and skilled labor force to operate the Chinese-built and financed 756 km Ethiopia-Djibouti electrified rail line,” he stated.

One trainee, Eyoba Dubale, told the {Ethiopian Herald}: “The trainers from China are dedicated in assisting us. The training is going well in its schedules and we are happy of the whole process. After the training we will be assistant driver, and after establishing comprehensive skills and knowledge as well as attitude of serving in the system, we will take over charge of the driving responsibility to the service the logistics sector for the common good.”

The EDRSC is part of the five-year growth and transformation plan, which aims to enhance the transportation network within the country by connecting to adjacent countries and ports. The National Railway Network of Ethiopia is believed to provide efficient mobility and improve the export and import activities, boosting the economic development.

Ethiopia‘s Optimistic, But Challenging Path Forward

Lawrence K Freeman

August 3, 2018

On June 28, thousands upon thousands of smiling Ethiopians poured into the Washington DC convention center to listen to their new Prime Minister, Abiy Ahmed. They began gathering in the morning hours before the noon starting time of the event. Standing for hours, on a line that snaked around the convention center, with the last of the crowd finally entering the hall at 3pm. I was fortunate to witness this joyous occasion. The entire ground floor hall of the convention center was filled, as far as the eye could see, by the Ethiopian community that came to celebrate the new leadership of their nation.

Only three days earlier on July 26, in Addis Ababa, Simegnew Bekele, the chief engineer of the Grand Ethiopian Renaissance Dam-GERD, was found murdered in his car. His assassination was followed by a large funeral at Meskel Square where he was mourned by tens of thousands.  His body was taken to Holy Trinity Church where he was honored by being buried alongside Emperor Haile Selassie, and Prime Minister Meles Zenawi.

The juxtaposition of these events, an ocean apart, foretell the challenging course ahead for Ethiopia. A future brimming with optimism, but fraught with danger. There is more than symbolism involved.

Progress Under Attack

Engineer Bekele, in the minds of Ethiopians, embodied a true patriotic spirit, who led their nation forward. He will be remembered for his lasting commitment to develop Ethiopia into growing sovereign economy in the Horn of Africa. Before overseeing the construction of the GERD in 2011, he worked on the Gibe I and II dams. The completed Gibe III hydro-electric project generating 1,872 megawatts, has doubled Ethiopia’s power supply. When the construction of the GERD- 6,450 megawatts-is finished, Ethiopia will be the second largest producer of electricity in Sub-Sahara Africa behind South Africa. The multi billion-dollar GERD, is being built with help of China, but financed by Ethiopia. The GERD is on the Blue Nile close to the border of Sudan and will be the biggest dam in Africa at 1.8 kilometers wide and 155 meters high.

Ethiopia’s ambitions to create a modern-advanced economy and lift its 100 million people out of poverty is evident in its commitment to also expand its rail and road infrastructure. The operational Addis-Ababa to Djibouti electrified train (the first of its kind in Sub-Saharan Africa) will transport manufactured goods from Ethiopia’s industrial parks, to the port of Djibouti for export. Their Growth Transformation Plan II (2014-2019) emphasizes Ethiopia’s intention to expand its manufacturing sector by 25%.

It is Ethiopia’s unwavering devotion to progress to “eliminate poverty, not manage it” that is the real target of Simegnew Bekel’s assassination. 

(Artist drawing of completed GERD, whose completion will allow Ethiopia to become an energy exporter)                       

Abiy’s Life Threatened

In a mere four months since assuming office in April of this year, the 42-year-old Prime Minster has created a fervor in the population, causing waves of unbridled excitement, not seen since the overthrow of the bloody Derg regime in 1991 by the Ethiopian People’s Revolutionary Democratic Front led by Meles Zinawi.  In what is being called a revolution, Prime Minister Abiy has released thousands of political prisoners, reached out to all ethnic regions of the nation, and unexpectedly ended the state of war with Eritrea in a ceremony held in the Eritrean capital Asmara on July 8. By taking this giant step to normalize relations with its neighbor Eritrea after a generation of armed hostility, Prime Minster Abiy has now become a living symbol for peace and security in the Horn of Africa.

Let us not forget that a month before coming to the United States, Prime Minister Abiy escaped an assassination attempt when a grenade was thrown at a rally where he addressed millions of his fellow citizens.  Although he was not harmed, over one hundred were wounded and two died from this attack on June 23, in Addis Ababa’s famous Meskel Square.

Steeped in the ideas of Meles Zenawi, Ethiopia, unique among African nations, has demonstrated an understanding of principles fundamental to economic growth. To wit: the necessity for the state to direct public credit into vital categories of infrastructure necessity for the economic security of a nation (dirigisme). The government not only has the right, but the obligation to intervene into the economy to foster “pro-growth” polices that benefit the general welfare of its people. Ethiopia’s relative success in this effort has produced enemies internally, regionally, and internationally, who oppose any progress towards achieving economic stability in the Horn of Africa. Economic independence by Africa nations challenges the dominance of financial predators, who still view Africa as a pawn on their “geo-political” chessboard.

Author with Ethiopians inside DC Convention Center

Ethiopia Should Stay the Course

For many years there has been enormous pressure by the international financial community including the IMF to force Ethiopia to “liberalize” its economy by; decentralizing its economy, reducing regulations, allowing foreign investment in state-owned enterprises, and deregulating its banking system. Thus far Ethiopia has resisted, but under increasing duress, there are reports that some in the leadership of Ethiopia may be ready to open the floodgates to intrusions by international financiers, who are not interested in the welfare of the citizens.

Ethiopia, a poor country that suffered from a wrecked economy twenty-five years ago, has emerged as a leader on the Sub-Saharan continent. Ethiopia’s commitment to expanding its physical infrastructure has served the nation well, though it still faces serious impediments. Providing meaningful employment for the 500,000-young people, who are seeking to join the work force each year will remain a significant challenge. However, Ethiopia should not permit itself to be coerced into deviating from its thus far successful economic policy.

Chinese President to BRICS: “The International Community has Reached a New Crossroads”

President Xi Jinping to BRICS Business Forum in South Africa:

“Keeping Abreast of the Trend of the Times to Achieve Common Development”

“Home to more developing countries than any other continent, Africa has more development potential than any other region in the world.”

Excerpts follow:

We as BRICS leaders unanimously agreed to strengthen our strategic partnership, consolidate the cooperation architecture with its three main drivers, namely, economic cooperation, political and security cooperation, and people-to-people exchanges. We thus laid out a vision of BRICS+ cooperation and jointly ushered in the second Golden Decade of BRICS cooperation.

The BRICS mechanism owes its birth and growth to evolution of both the global economy and the international landscape. In its first decade, BRICS cooperation got off the ground and bore rich fruit. We five BRICS countries, guided by the BRICS spirit of openness, inclusiveness and win-win cooperation, have deepened our cooperation, enhanced our solidarity and mutual trust, improved the lives of our peoples, and made our bond of interests and friendship even closer. Indeed, our cooperation has contributed much to global economic recovery and growth.

We are witnessing major changes unfolding in our world, something unseen in a century. This is a world of both opportunities and challenges for us emerging markets and developing countries. We should pursue BRICS cooperation in the historical process of global transformation, and we should promote the development of our own countries in the historical course of promoting the common development of both BRICS countries and other countries in the world, thus making new advances in the next Golden Decade.

The next decade will see faster changes in the international landscape and the international alignment of forces. Emerging markets and developing countries already contribute 80 percent of global economic growth. Based on exchange rate calculation, these countries account for nearly 40 percent of the global economic output. Growing at their current rates, these countries will see their economic output approach half of the global total in a decade. The collective rise of emerging markets and developing countries is unstoppable, and it will make global development more balanced and global peace more firmly based.

The next decade will see a profound reshaping of the global governance system. The world is moving toward multi-polarity and greater economic globalization amid setbacks. Geopolitical hotspots keep emerging, and the dark shadow of terrorism and armed conflicts still haunts us. Unilateralism and protectionism are mounting, dealing a severe blow to multilateralism and the multilateral trading regime. The international community has reached a new crossroads; and we are facing a choice between cooperation and confrontation, between opening-up and a close-door policy, and between mutual benefit and a beggar-thy-neighbor approach. Thus, the  evolution of global governance system will have a profound impact on the development of all countries,  particularly emerging markets and developing countries, and indeed on the prosperity and stability of the whole world.

We should pursue innovation and seize development opportunities. Science and technology, as the primary production forces, have provided inexhaustible power driving progress of human civilization. Humanity had made giant leaps forward as it progressed from an agricultural civilization to an industrial civilization, a process which created both huge gains in social productivity and growing pains. The world today has once again reached a critical historic juncture. In the unfolding new round of scientific and technological revolution and industrial transformation, new things will inevitably emerge and take the place of old ones. Indeed, this will be a difficult and painful process. But if countries succeed in seizing opportunities that have presented themselves, they will be able to achieve new dynamic growth and deliver better lives to their people.

We should pursue inclusive growth to deliver benefits to people of all countries. Uneven and insufficient development is a common challenge facing all countries. The North-South gap, namely, the gap between developed countries and emerging markets and developing countries, remains huge. And there are also development gaps of varying degrees within countries.

The 2030 Agenda for Sustainable Development provides a comprehensive action plan for the international community. We BRICS countries should, basing ourselves on our actual national conditions, follow the guidance of the 2030 Agenda as we pursue our own development strategies. We should put people first, ensure coordinated economic and social development and protect the environment, thus giving our people a stronger sense of fulfillment and happiness. We should ensure harmony between man and nature and encourage the international community to fully implement the Paris Agreement. We should treat nature with awe and do more to foster an ecological system conducive to green development. It is necessary to promote international development cooperation, urge developed countries to fulfill their promises on official development assistance and increase support to developing countries.

Home to more developing countries than any other continent, Africa has more development potential than any other region in the world. We should strengthen cooperation with Africa, support its development and make BRICS-Africa cooperation a model for South-South cooperation. We should actively carry out cooperation with African countries in such areas as poverty reduction, food security, innovation, infrastructure development and industrialization in a way compatible with their national conditions. We should help African countries develop their economic structure, contribute to the implementation of Agenda 2063 of the African Union and thus enable Africa, an ancient continent, to gain strong vitality.

China and African countries are destined to be good friends, good brothers and good partners, and China-Africa cooperation stands as a fine example of South-South cooperation. This coming September will see a reunion of China and African countries at the Summit of the Forum on China-Africa Cooperation in Beijing. Themed on “China and Africa: Toward an Even Stronger Community with a Shared Future through Win-Win Cooperation,” the Beijing Summit aims to enhance complementarity between China-Africa joint efforts to pursue the Belt and Road Initiative, the 2030 Agenda and the 2063 Agenda on the one hand and the development strategies of African countries on the other. This will enable China and Africa to pursue high quality and high standard cooperation for mutual benefit and common development.

Friends,

This year marks the centenary of the birth of Nelson Mandela. Let me quote one of his famous sayings, “After climbing a great hill, one only finds that there are many more hills to climb.” Indeed, the history of BRICS cooperation is a journey of our five countries climbing great hills only to reach new heights. I am convinced that when our five countries forge ahead together, we will scale new peaks, reach new heights, and make even greater contribution to peace and development of mankind.

Thank you

Read full text of Xl’s Speech

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China-Africa Cooperation is Mutually Beneficial

 July 19, 2018

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

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

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

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

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

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

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

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

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

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

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

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

Original article

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

It’s Time for Africa

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

By He Wenping- JULY 5, 2018

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

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

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

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

Proactive attitude

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

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

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

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

Advancing interconnection

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

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

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

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

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

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

Driving force

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

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

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

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

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

 

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

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

AFRICA IN FOCUS

“American companies and Chinese Belt and Road in Africa”

Yun Sun 

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

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

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

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

What is Transaqua?

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

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

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

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

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

Map showing Lake Chad and River Congo.

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

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

How is China involved?

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

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

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

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

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

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

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

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

Why the “Fire and Fury” on China Trade

By William Jones

The world is on tenterhooks waiting for the next moves from the Trump Administration in terms of the draconian tariffs he has threatened to place on China as well as on a number of other countries, including our close neighbors Canada and Mexico. And the question remains for most people: Is he really intent on carrying out the threat (the first tariffs are to take effect on July 6) or is this merely an “in-your-face” negotiating tactic to cut a better deal for the United States? We probably won’t know until the last moment, but a number of things seem to be clear.

Why the “Fire and Fury” on China Trade?