It’s Time for Africa
Alignment with China’s development vision heralds a new era of opportunity on the continent
It’s Time for Africa
Alignment with China’s development vision heralds a new era of opportunity on 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
“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…”
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.”
Courtesy of Schiller Institute. The Transaqua project aims to move water from River Congo to Lake Chad.
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.
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.
June 15, 2018—Schiller Institute Founder and Chair Helga Zepp-LaRouche has put forward a bold new agenda for the June 28-29 European Union summit, necessary to further transform the world, in the wake of the Singapore summit of U.S. President Trump and North Korea’s Chairman Kim Jong-un. Her proposal concludes:
“If the Merkel government is still in place when this article appears, there is a very good way by which the present crises can be overcome—from the migrant crisis to the government crisis and the EU crisis. Taking the example set by the Singapore Summit—that real change is possible, and that the past does not determine the future—the German government should ensure that the agenda of the European Union summit on June 28-29 be quickly changed. EU cooperation with China’s New Silk Road initiative for the development of Africa should be made the sole subject on the agenda, and [President] Xi Jinping or [Foreign Minister] Wang Yi should be invited to attend, as well as some African heads of state who are already cooperating with China.
“If the EU summit, the Chinese government representative, and the African representatives then pronounce in a joint declaration the commitment to undertake a joint crash program for a pan-African infrastructure and development program, and promise all the young people of Africa that the continent will overcome poverty in a short time, such a declaration, due to the participation of China, would have all the credibility in the world in Africa, and would change the dynamic in all the countries towards definite hope for the future, and thus would immediately effect a change in the migrant crisis. It would also free the EU from its current crisis of legitimacy, and give the European nations a mission which would place the unity of Europe on a great new level.
“Will the heads of state and government of Europe manage to follow the example of Trump and Kim Jong-un? The prospective of developing Africa together with China, would also give President Trump the urgently needed opportunity to overcome the otherwise looming spiral of trade war, and to balance the [U.S.] trade deficit by increasing trade, primarily through investment in joint ventures in third countries.
“The crisis in Europe, the migrant crisis, the crisis of the German government—they have all assumed such dimensions, that the opportunity for a change of course in policy can absolutely be seized. Needed now, are the people to make it happen.”
“Transaqua is an inter-basin water project to transfer a sufficient flow of water from the tributaries of the Congo River to restore Lake Chad from its current diminutive size of 1500-2500 square kilometers to its 1963 level of 25,000 square kilometers. The Transaqua design is to create a navigable 2,400-kilometer canal that by gravity will deliver between 50 to 100 billion cubic meters of water to the Chari River in the Central African Republic, which is the primary tributary to Lake Chad. The channel will be created through a series of dams of the tributaries to the right of the Congo River.
Transaqua, the brainchild of Dr. Marcello Vichi of the Italian Bonifica engineering firm, was first proposed almost 40 years ago. Its unique feature lies beyond refurbishing Lake Chad, in restoring economic growth to the poor people living in the Lake Chad Basin This mega-project will create a super economic zone of trade and commerce between all the nations of the Congo river and Lake Chad Basins; potentially affecting one third of the entire African continent. In addition to the generation of desperately needed hydro-electric power, new roads will be built, new manufacturing-agricultural centers will be created, new fisheries will develop, and food production will expand with an additional 40,000 hectares of irrigated land.” Source: Lawrence Freeman
Africanagenda: Hello Mr Freeman, thank you for joining us today to discuss the Transaqua Project.
You are very well informed on this subject and since 2014 have been the Vice Chairman of the Lake Chad Scientific Committee. Earlier this year you spoke in Abuja, Nigeria at the International Conference on Saving Lake Chad. Could you tell us about the sense of optimism that this project is bringing to Africans? I believe this was a dream of Ghana`s President Kwame Nkrumah, that the Sahara Desert could bloom.
Heads of State of the Lake Chad Basin nations sign Abuja accord
L. Freeman :The endorsement of the Transaqua inter-basin water transfer project at the International Conference to Save Lake Chad held in Abuja from February 26-28 was a milestone for the entire African continent. Nigerian President, Muhammadu Buhari deserves credit for initiating this conference and his support over many years to recharge Lake Chad. This project would be the largest infrastructure project in Africa connecting a dozen African nations in a super economic zone of development. The Transaqua proposal has been known for several decades, but it was only at the Abuja conference that the Heads of States of the nations of the Lake Chad Basin Commission- (LCBC) officially decided to explore the feasibility of the inter-basin water transfer project. As a result of the conference, approximately $3.6 million will be allocated for the first ever feasibility study of Transaqua to be conducted jointly by PowerChina and Bonifica.
The Sahara Desert, the largest in the world-the size of the continental United States- can bloom if it has water. The loss of lake Chad, the largest body of water in the desert would be a catastrophe not just for those living in the Lake Chad Basin, but for the entire continent, and implicitly the world. Therefore, I am optimistic that the Abuja conference will be a turning point for Africa.
Africanagenda: Transaqua is unique.It is it the largest engineering project ever proposed and as the largest infrastructure project in the world it has the potential to radically transform the economy of the continent`s interior, not just in terms of agriculture but through industry. Could you explain to our readers how transformative Transaqua will be?
L.Freeman: The land area of all the nations that would be affected by Transaqua equals approximately one third of the African continent. The inter-basin water transfer project would create a navigable canal that would facilitate a new level of trade and commerce between the nations of the two basins: Congo River; and Lake Chad. Resulting in an increase in farming, manufacturing, fishing, electrical power, roads, and other related infrastructure.
Thanks in part to China’s New Silk road, African nations are presently engaged in the most intense level of development of infrastructure, most especially in new railways that potentially could cross the continent from Djibouti to Dakar. Plus progress is being made on several East-West highways that would also connect to South-North routes crossing the Sahara Desert.
image: The Schiller Institute
If you look at a map of Africa, you will see that Transaqua will travel northwest from the southeast corner of the Democratic Republic of the Congo through the Central African Republic, thus intersecting the East to West network of new railways and highways. The combined effect of the completion of these infrastructure projects would create an economic renaissance for Africa that portends the elimination of poverty and hunger for hundreds of millions of Africans.
Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.
In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies.
Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.
In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years.
We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.
China’s New Silk Road–Belt and Road Imitative is providing indispensable investment and construction of infrastructure in Africa. Infrastructure development in energy, railways, roads, airports, and water management are critical for African nations to develop their agricultural and manufacturing sectors. Below are excerpts from the report: “The Belt and Road” in Africa
“China’s close engagement with Africa continued through the succeeding decade and accelerated toward the end of the 1990s and into the 2000s. By 2008, China’s Export-Import Bank was funding more than 300 projects in 36 countries across Africa. The value of bilateral trade increased from US$6.5 billion in 1999 to US$73.3 billion in 2007 (Figure 1). According to the China-Africa Research Institute at Johns Hopkins University, by 2008 it exceeded US$100 billion, and it peaked at more than US$200 million in 2014, before slipping back in 2015 and 2016 in response to poorer global economic conditions. In 2009, China overtook the United States as Africa’s major trading partner. The largest African exporter to China from Africa in 2015 was South Africa, followed by Angola and Sudan. In the same year, South Africa was the largest African market for Chinese goods, followed by Nigeria and then Egypt.”
“In 2015, China investments into African infrastructure projects were three times the sum of those of France, Japan, Germany and India combined (Figure 7). The bulk of Chinese funding has been in the form of government-to-government loans, used then by the borrowing African governments either to develop the project itself, or to leverage it with private capital through a public-private partnership (PPP). As of the date of writing (late 2017), at least 76 PPP projects appear to be in the pipeline in African countries associated with BRI. Not all have values ascribed, but the 14 that do imply a cumulative investment of nearly US$6 billion for them alone. Sixty percent of these projects are in the transport sector.”
This report by the United States Institute of Peace provides a useful overview of current and future rail projects for Nigeria. Hard infrastructure in rail, energy, and water management provide an essential platform for real economic growth. China understands this principle as demonstrated in the expansion of the New Silk Road across the globe. It is a credit to President Buhari that has taken leadership in collaborating with China to build a modern rail system in Nigeria that will connect the entire nation.
April 18, 2018
Turkey’s floating power plant, the Karadeniz powership Rauf Bey, started electricity production in Sudan, a member of the Istanbul-based Karadeniz Energy Group, Karpowership, announced Tuesday.
The powership, which has 180 megawatts (MW) of installed capacity, will supply 150 MW of power to Sudan’s national energy grid.
The plant is important for the stability of the country’s national grid as it caters for the country’s increased energy demand.
The company announced on April 27 that it signed an electricity production and sales agreement with Sudan’s electricity company, STPGC.
Karpowership is the sole owner, operator and builder of the first powership fleet in the world. Since 2010, 15 powerships have been completed with total installed capacity exceeding 2,800 MW.
An additional 5,000 MW of powerships are either under construction or in the pipeline.
African nations desperately need energy to develop their economies, build industries, and to expand their agriculture and manufacturing sectors. With hundreds of additional gigawatts of power, the continent can be transformed; hunger and poverty can be eradicated . Energy is an essential category of infrastructure that every nations needs to achieve higher levels of economic growth. Africa should have nuclear energy, and floating nuclear power plants can contribute to supplying power to the continent. I have been advocating this idea for decades, and now its time has come!
Constructed by the state nuclear power firm, Rosatom, the 144×30 meter, 21,000-ton barge holds two 35-MW nuclear reactors similar to those used to power Russian icebreaker ships. The barge can produce enough electricity to power a town of 200,000 residents, far more than the 5,000 who live in Pevek, Russia’s northernmost town.
Small, portable nuclear reactors have long been employed by the U.S. Navy, and presumably other militaries as well, but previous attempts to produce them for civilian purposes have met with sabotage. The United States actually did have such a plant in operation in Panama in the late 1960s, but it is being dismantled, and plans for production for use off the Eastern Seaboard of the United States were ditched in the 1970s. This, despite the nuclear Navy’s sterling safety record, and the obvious advantages of such plants for isolated areas suffering from a lack of electric power.
Among the obvious places crying out for such a deployment is Puerto Rico, which has now suffered the second-longest electricity blackout in history. (The longest was in the Philippines in 2013.) At least 20,000 homes in Puerto Rico still lack electricity as a result of Hurricane Maria (which hit last September), and a new hurricane season is about to begin. Indeed, the “repaired” system is so fragile that most of the Island was plunged into darkness about a month ago, as a result of a contractor accident.
U.S. Energy Secretary Rick Perry actually mooted the possibility of using small modular nuclear reactors to reach remote places in Puerto Rico last fall. But despite a verbal commitment to nuclear energy, the Trump Administration’s embrace of deregulation has so far been unable to halt the whittling away of the mainland nuclear fleet, much less been able to initiate the nuclear renaissance which is needed to move the U.S. economy into the next level of productivity.
The American System of Economics rests firmly on a commitment to constant increases in scientific progress and productivity, of which nuclear fission and fusion are prime examples