Adviser to Ethiopian PM Abiy, Kenyan Pres Kenyatta, and US Cong Davis, All Understand: Infrastructure Essential for Economic Growth

Dr Arkebe Oqubay speaking during virtual TIPS 2020 Forum meeting
August 4, 2020

All three articles in this post highlight the essential role of infrastructure in building real economic growth in African nations as well as the United States. We are living in a perilous period of economic breakdown and loss of hundreds of thousands of lives due to the COVID-19 pandemic. Millions of impoverished people around the world are threatened with hunger, and tens of millions more are being forced into poverty and extreme poverty as a result of this dual crisis. Massive development of infrastructure, including nuclear energy, should be financed through public sector credit and a National Infrastructure Bank as part of a  “New Economic Architecture,” which is urgently required. The economic principles to finance infrastructure and an expanding agro-manufacturing sector was brilliantly put forth by President George Washington’s Treasury Secretary, Alexander Hamilton*. The levels of infrastructure required cannot be done by relying on the so called free-market, but must be accomplished by government intervention. When people are dying and suffering, you do not depend on the “markets.” Nations have the obligation to provide for the general welfare of their citizens.

Without infrastructure and manufacturing, AfCFTA will fall short – senior African policymaker

“An Ethiopian senior minister and special adviser to Prime Minister Abiy Ahmed has cautioned that, without major infrastructure investment and the development of manufacturing capacity, African countries will not be in a position to take full advantage of the African Continental Free Trade Agreement (AfCFTA), which is poised to liberalize trading conditions across 55 countries.”
Dr Arkebe Oqubay has been at the center of Ethiopian industrial policy making for over 25 years. He is the founding Chancellor of the Addis Ababa Science and Technology University (AASTU), and in 2015 he authored Made in Africa: Industrial Policy in Ethiopia

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Kenya on Course for $5 Billion Nuclear Plant to Power Industry

  • Plans to expand nuclear-power capacity fourfold by 2035
  • Kenya expects peak demand to top 22,000 megawatts by 2031

The government looks to expand its nuclear-power capacity fourfold from a planned initial 1,000 megawatts by 2035, the Nuclear Power and Energy Agency said in a report on the National Environment Management Authority’s website. The document is set for public scrutiny before the environmental watchdog can approve it, and pave the way for the project to continue.

President Uhuru Kenyatta wants to ramp up installed generation capacity from 2,712 megawatts as of April to boost manufacturing in East Africa’s largest economy. Kenya expects peak demand to top 22,000 megawatts by 2031, partly due to industrial expansion, a component in Kenyatta’s Big Four Agenda. The other three are improving farming, health care and housing.

The nuclear agency is assessing technologies “to identify the ideal reactor for the country,” it said in the report.

A site in Tana River County, near the Kenyan coast was preferred after studies across three regions, according to the report. The plant will be developed with a concessionaire under a build, operate and transfer model.

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US Congress introduces  H.R. 6422, the bill for a $4 trillion dollar National Infrastructure Bank (NIB) based on Hamiltonian principles

New Videos Show the Way Out of Crisis

*Alexander Hamilton’s Credit System Is Necessary for Africa’s Development

*Nations Must Study Alexander Hamilton’s Principles of Political Economy

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

 

No More Lies, No More Anti-China Propaganda: There is No China-Africa ‘Debt-trap’

June 20, 2020

China-Africa Research Initiative-(CARI) presented an interesting and useful webinar entitled : Debt Relief with Chinese Characteristics, using research presented from a Working Paper #39 and Policy Brief #46. View: CARI: Debt Relief With Chinese Characteristics

In response to China’s growing economic and political influence in the world, especially on the African continent, various propaganda outlets located in the West have launched a new assault on China. Their line of attack is to malign China and African leaders with the false narrative that China is intentionally luring African nations into a ‘debt-trap’ in order to seize control of their natural resources. This cynical view of China’s alliance with African nations flows from the age old doctrine of “geo-politics” that only perceives nations as either winners or losers in a fixed zero-sum view of the world.  In this evil world view, stronger powers, hegemons believe they can only maintain their supremacy by having their foot on the neck of weaker nations. The “geo-political” doctrine rejects the notion that all nations share a common interest.

Misinformation or Disinformation

As Deborah Brautigam, director of CARI has stated before, there is no evidence, none, not one single case of China using debt to seize control of an African nation’s assets. “We found no “asset seizures” and despite contract clauses requiring arbitration, no evidence of the use of courts to enforce payments, or application of penalty interest rates.” Despite no substantiation of China using debt as a weapon against African nations, the ‘debt-trap’ mantra is repeated by either misinformed individuals, including Africans, or by those who are deliberately disseminating disinformation with malice.

The CARI working paper reports the following:

“The rating agency Moody’s warned that countries ‘rich in natural resources, like Angola, Zambia, and Republic of the Congo, or with strategically important infrastructure, like ports or railways such as Kenya, are most vulnerable to the risk of losing control over important assets in negotiations with Chinese creditors.’ These assumptions of a malign China were repeated in publications like The New York Times, which contended that Chinese loans “frequently use national assets as collateral” and require refinancing ‘every couple years’ (our Africa data supports neither of these statements).” (emphasis added)

If there is any honesty or integrity left in our duplicitous culture, all claptrap about China’ alleged ‘debt-trap’ as a nefarious attempt to gain control of Africa’s wealth should cease immediately! If one examines the long history of China’s relationship with Africa and the more recent twenty year period, it is clear that China desires to resolve issues with African nations through consultation. China may choose other means of responding to payment difficulties, but there is no evidence that they want to take over African holdings, contrary to prevalent popular opinion. Read: Chinese ‘debt-trap’ Propaganda Exposed-Time to End Ignorance & Prejudice Against China in Africa

Debt Cancellation

As COVID-19 spreads in Africa, nations are struggling to survive economically and simultaneously defeat the deadly virus.  Debt service is onerous and must be suspended indefinitely or cancelled, as leaders of many Africans nation have rightly insisted. According to Dr. Brautigam, from 2000-2018, China has made loan commitments of $152 billion, and of Africa’ total external debt, China holds 17%, while the World Bank hold 18%, and private lenders 31%.  Thus, China will and has already engaged in debt relief, but will do it differently than western institutions like the Paris Club and World Bank.

“Our [CARI] study found that between 2000 and 2019, China has cancelled at least US$ 3.4 billion of debt in Africa. There is no “China, Inc.”: for interest-bearing loans, treatment for inter-governmental debt and Chinese company loans are negotiated separately, and often loan-by-loan rather than for the entire portfolio. While rescheduling by increasing the repayment period is common, changes in interest rates, reductions in principal (“haircuts”), or refinancing are not. We found that China has restructured or refinanced approximately US$ 15 billion of debt in Africa between 2000 and 20190…Chinese lenders prefer to address restructuring quietly, on a bilateral basis, tailoring programs to each situation.”   

China, up this point has only cancelled zero interest loans, which represent only 5% of loans from China, and are issued from China’s Ministry of Commerce. It is unlikely that there will be unilateral debt suspension.  Thus, we can expect that China will negotiate debt relief bilaterally with each nation, and each loan reviewed separately.

Even if debt cancellation is continued into 2021, which has not yet been agreed to, it will be insufficient. The level of investment required to meet Africa’s’ minimal infrastructure needs is in the trillions of dollars, which belies the “geo-political” nonsense of zero-sum assumptions.  Debt relief must be accompanied by issuance of credit for infrastructure and related sectors of production, otherwise Africa and the world will suffer from the spread of COVID-19 and future zoonotic diseases. Poverty is a co-factor for all diseases. Lack of electricity is a co-factor for the spread of disease and hunger, as is the lack of clean water, and inadequate transportation.

China’s Belt and Road Initiative over recent years has begun to address Africa’s infrastructure deficit, but much, much more is required. Collaboration between the U.S. and China on the development of Africa would be consequential for the continent.

I have addressed this issue in earlier posts: World Needs New Economic Platform to Fight COVID-19, New Economic Order Required to Combat COVID-19 in Africa

ViewCARI: Debt Relief With Chinese Characteristics

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

Hunger Stalks Africa: Nations Should be Food Self-Sufficient

Desert Locust invade Ethiopia (Courtesy TESFANEWS)

February 27, 2020

Right now, as I write, two regions of Africa are experiencing food emergencies: East Africa and Southern Africa. This is a crime against humanity. There is no objective reason for starvation and malnutrition in this continent rich with arable land. Actions should be taken today, not tomorrow, to reverse this life threatening, but preventable food shortage. It is morally repugnant to witness so many human beings perishing due to the persistence of poverty, hunger, and disease in Africa.

On January 20th, the United Nations Food and Agriculture Organization (FAO) requested a mere $76 million to combat the spread of the destructive Desert Locusts.  A just released joint statement-UN Joint Statement on Locust in East Africa signed by several organizations, Locust in Africa: A Race Against Time, reports that since February, the locust swarms originally sighted in Ethiopia, Kenya, Somalia, have spread to South Sudan, Djibouti, Uganda, Tanzania,  and have reached the eastern border of the Democratic Republic of the Congo, which has not since a locust incursion since 1944.  With the expansion of the locust invasion, the FAO has doubled its request for emergency funding to $138 million, of which only $33 million, less than 25% has been collected of pledged.

In this region of the world the food supply is already so fragile that 20 million Africans are deemed food insecure. Experts estimate that a one square kilometer swarm of Desert Locusts can consume as much food as 35,000 people in one day, which potentially increases the number of food insecure Africans in this zone to almost 40 million.

The joint communique boldly states: “The next wave of locusts could devastate East Africa’s most important crop of the year, right when it is most vulnerable. But that doesn’t have to happen. The Window of opportunity is still open. The time to act is now.”

The statement concludes: “It is time for the international community to act more decisively. The math is clear, as is our moral obligation. Pay a little now, or pay a lot more late.”

Read: UN Joint Statement on Locust in East Africa

Read my recent post: End Threat of Locust Plague: Transform the Desert

 

Village women receive aid from a charity organisation in Chirumhanzi, Zimbabwe, File picture: Tsvangirayi Mukwazhi/AP
Village women receive aid from a charity organisation in Chirumhanzi, Zimbabwe, File picture: Tsvangirayi Mukwazhi/AP

Southern Africa

Simultaneously, on the Southern end of the Africa continent; Zimbabwe, Zambia, Angola, Lesotho, and Eswanti (Swaziland) are also facing shortages of food.

Journalist, Shannon Ebrahim, reports that “according the World Food Program (WFP), 7.7 million Zimbabweans are facing the worst hunger emergency in a decade…An astounding 90% of infants are malnourished and have stunted growth.” However, severe food shortages are not limited to Zimbabwe

“In Angola, 2.4 million are affected by food insecurity, where children are barely eating one meal a day. World Vision staff in Angola report they have never seen hunger and malnutrition on this scale.

“In Zambia, 2.3 million are facing acute hunger, and in Eswatini 24% of the population are suffering food shortages. In Lesotho, 20% of the population is food insecure

WFP regional director for southern Africa Lola Castro has said, “The hunger crisis is on a scale we’ve never seen before and evidence shows it’s going to get worse.”

Ebrahim writes, “As a result of drought, widespread flooding, and economic problems, 45 million people in southern Africa are facing food shortages.”

Hunger Can Be Eliminated

Droughts, locusts, and other disasters that contribute to food insecurity may not easily be prevented, but human intervention can mitigate and surmount so called natural catastrophes. However, there is no justifiable reason for hunger to persist in a continent of abundant, fertile, arable land.

Food self-sufficiency, which is a national security priority, in this age of out sized and exaggerated globalization, has worsened in the majority of African nations over the last several decades.  Not only does this jeopardize the health and existence of society, but it drains nation’s foreign reserves with mega-food import expenditures.

The most critical, essential, fundamental, and undeniable ingredient to a successful agricultural sector, as well as a manufacturing sector, is infrastructure.  It is the sine qua non for progress. Africa is suffering from a lack of infrastructure, particularly in the most crucial categories of hard infrastructure; electrical power and railroads. No concerned official in Africa or from a friendly government, who does not place their emphasis on energy and rail, is not helping African nations to develop. No NGO activist, no matter how sincere, who does not advocate for such infrastructure is not truly helping Africans to free themselves from the shackles of poverty, hunger, and disease.

I do not make these statements lightly. Without massive construction of hard infrastructure, African nations will not have productive agricultural and manufacturing sectors capable of producing the physical goods necessary for society’s continued existence. This is a scientific-economic reality.

Why are trees being cut down across the Sahel? To provide firewood and charcoal for cooking. This is foolishness. Trees are one of the best means to reverse the march of the desert. However, trees are being cut down, because homes do not have access to electricity and gas. If a portion of the tens of billions of dollars being spent on “global warming” were spent providing electricity to the nations of the Sahel, the counterproductive practice of charcoaling would be eliminated. If we built the decades’ overdue East West railroad, along with irrigating the desert (again energy) we could, can, transform the desert.

Why should over 100 million Africans face food insecurity on this rich African continent? The truth is; there is no acceptable reason. Our own lack of action speaks volumes.

Read: Zimbabwe is Facing Starvation

Read my article below from March 22, 2017 

Famine in Africa: More Than Humanitarian Aid Required

 

End Threat of Locust Plague: Transform the Desert

End Locust Plagues: Transform the Desert

February 20, 2020

Lawrence Freeman

Today the food supply of East Africa is threatened by a locust swarm that is ravaging crops in several nations. The Desert Locust (Schistocerca gregaria) is an extremely destructive pest that is found from West Africa, east across the African continent to the Middle East, India, and Asia.

A Desert Locust upsurge can grow into a swarm, and under the right conditions develop into a plague, affecting two or more regions with concentrated locust infestations. When locust swarms grow and migrate, they endanger the food supply of dozens of nations that comprise a large portion of the earth’s surface. The 1986-1989 plague is reported to have affected over 40 nations destroying crops in the Sahel, North Africa, the Arabian Peninsula, and southwestern Asia.

In 2016, the World Metrological Organization (WMO), and the United Nations Food and Agriculture Organization’s (FAO), released a report, Weather and Desert Locusts, documenting that the invasion area of the Desert Locusts extends to 30 million square kilometers, over 11.5 million square miles-almost the size of the entire African continent.

The international community must initiate a full scale military style operation to support African nations with resources and personnel, if we are to prevent thousands of more Africans from starvation. Africa, Arabia, India, Pakistan cannot afford a new plague; we have the power to act now to prevent such a catastrophe.

Now is also the opportune time for civilization to confront the more difficult task of “eliminating” desert conditions that spawn the locust. Many initiatives and water infrastructure projects exist to begin the greening of the Sahel.

East Africa’s Food Supply at Risk

A swarm of these deadly locusts can reach several billion, covering an area of 200 by 120 kilometers. Each locust consumes its weight daily in food-2grams, resulting in a loss of hundreds of thousands of tons of food meant to feed the population. According to the United Nations’ (FAO), “each square kilometer of swarm can include 40 to 80 million locusts and eat as much food as 35,000 people.”

The swarms are active in Kenya, Somalia, and Ethiopia, and have spread to Uganda, and South Sudan. It is estimated that 11 million people are already considered food insecure in this region of Africa. According to the U.N., this new invasion of locust swarms could cause food insecurity to an additional 20 million Africans. The UN reports that the swarms are the largest that Somalia, and Ethiopia have experienced in a quarter of a century. Kenya has not faced this severe of an incursion in 70 years. Somalia has declared a national emergency, in response to the Desert Locust invasion, as has Pakistan. Already, 71,000 acres of farmland in Ethiopia and Somalia have been destroyed.

Keith Cressman, senior forecaster for the FAO, reported that the swarms have moved across the border into Tanzania and Uganda. He said: “Action taken in Somalia, Ethiopia and Kenya – as well as Pakistan – will now determine what happens next. If the current upsurge crosses more borders and infests more regions, devastating more crops, it could be declared a ‘plague’.”

The Uganda government has responded appropriately to the threat to their food supply by deploying the military to assist in spraying of pesticides.

Desert Locust invade Ethiopia (Courtesy TESFANEWS)

Emergency Action Required

The U.N. has asked for $76 million in immediate aid. So far just under $20 million is in hand, including $10 million released from the U.N. emergency relief fund and $3.8 million from FAO. The United States originally agreed to contribute $800,000, and the European Union 1 million Euros. However, even with a pledge of $8 million to fight the locust incursion, announced by Secretary of State, Mike Pampeo during his recent visit to Ethiopia, the total is barely more than a third of the funds requested. The international community is being dangerously shortsighted, if not morally criminal, by allowing the locust swarms to exacerbate existing food shortages.

Dominique Burgeon, the FAO’s emergency and resilience director warned that without aerial spraying the current surge can turn into a plague, “and when you have a plague, it takes years to control.”  Mark Lowcock, the UN’s top humanitarian official, told ambassadors at a UN briefing last week: “We are running out of time. We do have a chance to nip this problem in the bud, but that’s not what we are doing at the moment.”

It is imperative the aerial and ground spraying be expanded immediately, and all necessary resources be provided. African nations lack the adequate number of planes necessary, most having less than a handful that can be deployed to combat the swarm. According to The New Humanitarian, the five planes that Kenya deployed to break up the swarms initially faced a shortage of the insecticide, fenitrothion. They report that the Deputy Minister of Agriculture for Somalia, Maud Ali Hassan said, “We are lacking all resources, including the expertise to prevent a humanitarian disaster.”

In addition to the full complement of aerial and ground spraying that must include a sufficient number of planes, insecticide, and four wheel drive vehicles to reach remote areas, which the locust infected nations lack, Cressman raises the possible deployment of drone technology.

Ultra Low Volume spraying with insecticides produces a mist with droplets that has proved effective in killing this deadly pest.

In his article, Preventing the spread of desert locust swarms, Cressman writes: “The operational use of unmanned aerial vehicles (UAVs) – also known as drones – could potentially overcome these limitations in many affected nations. In the field, UAVs could be used to automatically collect high-resolution imagery of green, vegetated areas potentially affected by locusts”

Civilian satellite imaging is being employed. However, advanced imagery is needed to locate more precisely infested and breeding areas. This requires that African nations have access to imagery from military satellites, which would also necessitate that their technicians be properly trained to interpret the data.

The application of electron magnetic pulses and other electromagnetic devices to emit tuned frequencies specifically aimed at killing the locusts should also be utilized in this war against these lethal pests.

An all-out war against the spread of locusts, using all available technologies is required to save the food supply of African nations already suffering from nutrition deficiency. The cost cannot be a factor for inaction. Whether it is $80 million, $100 million or several hundred million dollars: this is a small price to pay to prevent another plague. Compare this relatively minor cost to the obscene amounts of money-billions of dollars-being spent on the US Presidential primaries. The Desert Locust assault on humanity can be arrested, if we act now, with full force!

Transform the Desert

Desert Locusts “are always present somewhere in the deserts between Mauritania and India…ready to mate when conditions are favorable. Eggs are usually laid in areas of bare sandy soil and require previous rainfall,” according to the report, Weather and Desert Locusts.

Since the sands, dry heat, and winds of African deserts create propitious conditions for the breeding and migration of desert locust, why not eliminate-i.e. transform the desert?

Contrary to popular beliefs, the Sahel and Sahara Deserts are not the natural-pristine state of North Africa. The desert was created millions of years ago when the African Plate migrated north, cut off the Tethys Sea and crashed into what is now known as Europe. The Sahara Desert was originally under water. The Sahara also alters itself, from three million square miles of arid sand into a tropical climate with lush vegetation, and waters filled with whales, and hippopotami. This occurs every 20-25,000 years in accordance with the cycle of rotation of our planet’s axis, known as the earth’s wobble. Given that the most recent drying up of the Sahara occurred approximately 5,500  years ago, the rains are not expected to return for another 15-20,000 years. However, we cannot afford to sit by idly for thousands of years suffering the harsh conditions of the desert.

Humankind was fashioned to intervene on our universe, to improve its condition, to enhance the biosphere in which we exist. The concept of the physical universe, that includes the lawful intervention of human creativity, was conceived as the “Noosphere” by the great Ukrainian geologist and scientist of the twentieth century, Vladimir Vernadsky.

The Sahara Desert has been an impediment for Africa’s development throughout hundreds of thousands of years. More recently, this uninhibited desolate expanse of land has become home to numerous violent extremist organizations that have challenged the sovereignty of Mali, and Nigeria’s Borno State.  Military only responses have so far failed to dislodge the terrorists from his region.

Think Big, Bold and in the Future

The physical universe is organized to respond to “noetic” intervention, i.e. humankind’s powers of reason. We should not be sitting on the sidelines watching disasters occur, but rather preventing so called natural catastrophes.

With sufficient density of infrastructure, functioning farms, towns, and cities, can replace mountains of desert sand. Deserts have been conquered in other parts of the world. An East-West railroad across sub-Saharan Africa from the Indian to Atlantic Ocean, which should have been built decades ago, would have already modified the Sahel and Sahara. It would be accompanied by a new platform of energy, trade, and industry that would revolutionize the economies of East and West Africa. A rail link across the Sahara, connecting this newly built East-West railroad to the nations of the Maghreb, and ultimately to Europe, would join the economies of the sub-continent to those of the Eurasian land mass. Sand would be supplanted by concrete and steel.

The desert can be converted into arable land by introducing moisture to this arid territory. Once there is continual penetration of water into the sand, vegetation and growth will occur, eventually altering transpiration cycles. This will cause a change in the volume, and patterns of rainfall.  Tree transpiration is the process by which water is carried through the tree from the roots to small pores on the underside of leaves and released into the atmosphere by evaporation. Trees consuming carbon dioxide and releasing moisture and oxygen, are the “best friends” of human beings and the environment.

Transaqua, a transnational infrastructure project to replenish the shrinking Sahelian Lake Chad to its previous area of 25,000 square kilometers, has been endorsed by the Nigerian government, and is awaiting a feasibility study.  Expanding Lake Chad with an annual flow of billions of cubic meters of water would affect climatic conditions across the Lake Chad Basin, and increase transpiration.

It is also necessary to aggressively move forward with the Pan African Great Green Wall Project (PAGGW), which  focuses on greening a strip of land of 15 km. wide and about 8,000 km. long that  will affect 20 nations including Mauritania, Burkina Faso, Chad, Djibouti, Ethiopia, Eritrea, Mali, Niger, Nigeria, Senegal and Sudan. PAGGW was adopted by the African Union in 2007 and ratified by member countries in 2010.

Another transnational infrastructure project that complements the Great Green Wall is the Trans Africa Pipeline (TAP). It is the first permanent solution to end devastating drought and increasing desertification across the Sahel region of northern Africa.

TAP is an 8,000 km. long freshwater pipeline that will provide clean, potable drinking water to 28-30 million people in 11 countries of the African Sahel. TAP will construct large-scale desalination plants on the west and east coasts of Africa. Regional tank farms and pumping stations for water storage and distribution would cross the Sahel for the management of the water source, which in turn can create upwards of 280,000 jobs across the Sahel.

The Trans Africa Water Pipeline has an agreement with the Pan African Great Green Wall Initiative, and both together can address 14 of the Sustainable Development Goals, but all member states and relevant stakeholders are needed to bring both projects to fruition.

We cannot impotently watch a pest, a mere insect, damage our human environment, when we have the means to defeat it.

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

 

Africa Updates: Malian Crisis, Uganda’s New Hydroelectric Dam, Rwanda’s Infrastructure Goals, Kenyatta Speaks on China, US and Africa

In this interview, Lawrence Freeman exposes that the root cause of the present deadly crisis in Mali stems from the overthrow and assassination of of Muammar Gaddafi by the West in 2011, led by President Obama, Susan Rice, Hillary Clinton, and French President Sarkozy. .

 

Uganda is intending to build with ChinaPower, the Ayago Hydroelectric Power Station, located on a section of the Nile between lakes Kyoga and Albert. When completed, it will produce 840 megawatts of electricity at the cost $1.4 billion, and increase Uganda’s generating capacity by 40% to 2,800 megawattsTogether with the completion of Grand Grand Ethiopia Renaissance Dam GERD, East African nations are beginning to produce power necessary to develop their economies.  Read: Uganda-China Build New Hydroelectric Dam on the Nile

Rwandan Minister of Infrastructure, Claver Gatete, outlines plans for Rwanda to reach 100% access to electricity for its population in 2024, by adding 2.4 million households to the electrical grid in the next four years. Watch: Minister of Infrastructure on 100% Electricity by 2024

During his visit to the US, Kenyan President, Uhuru Kenyatta, warned about forcing African nations to chose between the US and China. China has made major contributions to building infrastructure in Africa that cannot be denied. The US should change its policy from treating Africa as a “pawn” in its geo-political chessboard, and instead join China in developing the vast underdeveloped African continent. Read: Kenya President Kenyatta Warns Against US-China Rivalry in Africa

China Investing in Africa’s Future, Why Isn’t the US?

January 5, 2019

In the article below you can read about China’s strategic investment in making Djibouti’s port a major port in Africa and the Middle East. The West can criticize as much as it likes, but China, not the US and Europe, is building vitally needed infrastructure in Africa. Without infrastructure Africa will not develop and progress. U.S policy known as  “Prosper Africa” is cynical joke.

NEWS

In strategic Djibouti, a microcosm of China’s growing foothold in Africa

By Max Bearak
December 30, 2019

Excerpts:

DJIBOUTI — Above ground in this tiny but strategically located country, signs of China’s presence are everywhere.

Chinese entities have financed and built Africa’s biggest port, a railway to Ethiopia and the country’s first overseas naval base here. Under the sea, they are building a cable that will transmit data across a region that spans from Kenya to Yemen. The cable will connect to an Internet hub housing servers mostly run by China’s state-owned telecom companies.

Beijing’s extensive investments in Djibouti are a microcosm of how China has rapidly gained a strategic foothold across the continent. Western countries, including Africa’s former colonizers, for decades have used hefty aid packages to leverage trade and security deals, but Chinese-financed projects have brought huge infrastructural development in less than a generation.

The construction is fueled mostly by lending from China’s state-run banks. Spindles of Chinese-paved roads have unfurled across the continent, along with huge bridges, new airports, dams and power plants as part of Chinese President Xi Jinping’s 152-country Belt and Road Initiative.

Overall, Chinese companies have invested twice as much money between 2014 and 2018 in African countries as American companies, spending $72.2 billion, according to an analysis by Ernst & Young.

“The Chinese are thinking far into the long-term in Djibouti and Africa in general,” said David Shinn, a former U.S. ambassador to Ethiopia who was also the State Department’s desk officer for Djibouti as far back as the late 1960s. “Djibouti is one node in an economic chain that stretches across the northern rim of the Indian Ocean, from ports in Cambodia to Sri Lanka to Pakistan. They have a grand, strategic plan. We don’t.”

In Djibouti, that strategic plan is all the more evident because of the country’s location at the entrance to the Red Sea, where about 10 percent of oil exports and 20 percent of commercial goods pass through the narrow strait right off Djibouti’s coast on their way to and from the Suez Canal.

That location has made it a crucial way-point for undersea cables, which transmit data between continents. China’s investment in Internet infrastructure here comes as the region surrounding Djibouti is just starting to come online, including some places that are entirely reliant on Djibouti as a transit point for data transmission…

“Yes, our debt to China is 71% of our GDP, but we needed that infrastructure,” Mahamoud Ali Youssouf, Djibouti’s foreign affairs minister, said in a phone interview on the sidelines of a meeting in New York earlier this month, where Djibouti was pushing to gain a non permanent seat on the United Nations Security Council.

“It was quite natural that we raise our partnership with China. Neither Europe nor America were ready to build the infrastructure we needed. We’re projecting our country into the future and looking after the well-being of our people. Even the United States has trillions of dollars in debt to China, you know,” Youssouf said.

The most significant investment China has made in Djibouti is Doraleh Port, Africa’s biggest and deepest. As with Internet through the data center, a full 90 percent of landlocked Ethiopia’s imports now transit Djibouti, giving the minuscule country, with a population of less than a million, leverage over its gigantic, 100-million-strong neighbor.

Read the full article

It Cannot Be Denied: China Helping Africa Realize Its Dream

Ethiopian Prime Minister Abiy Ahmed (L), Djiboutian President Ismail Omar Guelleh (C), and Sudanese President Omar al-Bashir (R) on Dec. 9, 2018, inaugurate a Chinese-contracted major road project as the Ethiopian government aspires to connect strategic towns in western Ethiopia. (Xinhua/Michael Tewelde)

November 28, 2019

China to help Africa realize “African dream” early: Chinese state councilor

Xinhua|-November 23, 2019  

China is willing to make every effort to help Africa get out of the “underdevelopment trap” and realize the “African dream” at an early date, Chinese State Councilor and Foreign Minister Wang Yi said here on Saturday.

Wang made the remarks while attending the Group of 20 (G20) Foreign Ministers’ Meeting in Nagoya, Japan.

According to him, lack of fund is the biggest challenge to Africa’s development, with an annual infrastructure investment gap of 100 billion U.S. dollars. China’s infrastructure projects in Africa generate more than 50 billion U.S. dollars in revenue every year, he said.

For example, the Mombasa-Nairobi Standard Gauge Railway has created nearly 50,000 local jobs, driving Kenya’s economic growth by about 1.5 percent, Wang said, adding that China-Africa cooperation is part of South-South cooperation and is mutual help between friends and brothers.

China attaches great importance to the debt issue, actively helps African countries improve their debt management capacity and provides necessary support when they encounter difficulties, Wang said. The two sides have made positive progress in jointly building the Belt and Road with high quality, he added.

The Belt and Road Initiative is highly compatible with the 2030 Agenda for Sustainable Development, the African Union’s Agenda 2063 and development strategies of African countries, forming a strong synergy for promoting common development, Wang said.

In order to better help Africa achieve sustainable development, it is necessary to focus on solving the three major development bottlenecks, namely lagging infrastructure, lack of talent and capital shortage, while solving the three livelihood issues of employment, food and clothing and health, he added.

In this regard, China will adhere to the principle of upholding justice while pursuing shared interests and the principle of sincerity, practical results, affinity and good faith, and work tirelessly to help Africa develop, Wang said.

China has helped Africa build more than 10,000 km of roads, over 6,000 km of railways and a large number of libraries, schools, hospitals and other livelihood facilities throughout the continent, greatly promoting local development, Wang said.

Meanwhile, more than half of the eight action plans and supporting financing announced at the Beijing Summit of Forum on China-Africa Cooperation last year have been implemented or seen concrete arrangements.

He called on developed countries to honor their commitments to Africa and provide tangible assistance in capital and technology among others. China is ready to work with all parties to give full play to respective advantages, jointly promote peace, stability and development in Africa and help African countries realize the “African dream” at an early date, he said.

Read: China Helps Africa To Realize African Dream

 

China & Russia-Africa Leads to Economic Growth; Not Debt Trap

Below you will read about the success of the second segment of Kenya’s Standard Gauge Railroad, and President President Cyril Ramaphosa’s firm refutation of allegations that a number of countries in Africa are being led into a debt trap by China and Russia

November 2, 2019

“Proponents of the New Paradigm in Africa have a new milestone to celebrate, with the opening of a new segment of the Mombasa-Kisumu Standard Gauge Rail (SGR) line in Kenya. On October 16, Kenyan President Uhuru Kenyatta led a celebration to open Segment 2A, a 120 kilometer (75 mile) extension from the capital (and current terminus) of Nairobi, to Naivasha, a large town northwest of the capital. Opening of this—admittedly rather short—segment nonetheless brings the SGR project one step closer to its planned destination: Kampala, the capital city of neighboring, landlocked Uganda.”

Stunning Progress

Kenya’s SGR project, the most advanced in Sub-Saharan Africa, began in 2014, when the country began construction of a modern, standard gauge (1.435 meter) rail line from the port of Mombasa on the Indian Ocean, northwest to the nation’s capital of Nairobi, a distance of 450 km (275 mi). Opened in 2017, on Madaraka Day—Kenyan Independence Day, when the people took political control of their destiny from the British Empire on June 1, 1963— the rail line has been a huge success, cutting transport and delivery time significantly for both goods and people. Exceeding expectations, the railway transported two million passengers within its first 17 months; and in 2018, its first full year of operation, carried over 5 million tons of freight.

The Mombasa-Nairobi line was initiated in 2009 discussion between the China Road and Bridge Corporation and the Kenyan government, as reported by P.D. Lawson in the April 27, 2018 EIR. China’s Exim Bank extended credit for 90% of the project. By May 2016, initial track laying was completed in just over 1 year. Passenger service was opened May 31, 2017, eighteen months ahead of schedule. Freight services commenced in January 2018. Plans are now underway to electrify the segment from Mombasa to Nairobi, which will greatly lower operating costs.

Benefits of the new, faster technology now extend far beyond mere transport, where the railway has taken hundreds of trucks (and buses) off the notoriously congested highways, making them safer and more useable for the population.

With the increased capacity and speed of freight transport, Kenya’s exports to the East African Community (including neighboring states Uganda, Tanzania and South Sudan) have hit a three-year high in the first eight months of 2019. Not only have government earnings from domestically produced goods increased 6% compared to 2018, but Kenya’s domestic consumption of electricity—certainly not a nation known for its over consumption of this resource—has increased 3.2% in the first 8 months of 2019.

Uhuru Kenyatta, President of the Republic of Kenya.
President Kenyatta has launched additional infrastructure projects, building on the Kenya Vision 2030 plan. In addition to the opening of SGR Section 2A on October 16, he has announced plans for construction of an inland container depot (ICD) at Naivasha (to store or transfer goods from rail to truck, or from SGR to the old meter gauge rail, MGR); a new 23 km expressway in Nairobi; and a water project in rural Kimuku (stemming from a natural spring accidentally discovered during construction of the rail line!). He wants to create a Special Economic Zone—to include the port of Mombasa—to further speed up freight delivery.

EIR magazine, Nov. 1, 2019: “Kenyan Standard Gauge Successful in Looking Beyond the Here and Now

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NEWS October 28, 2019

Russia-Africa Summit: African countries not being led into debt trap —South Africa’s Ramaphosa

President Cyril Ramaphosa on Monday refuted allegations that a number of countries in Africa are being led into a debt trap as they take up loans to fund a number of projects.

Ramaphosa said this during his weekly address from the Desk of the President in Cape Town, after returning from the Russia-Africa Summit held in Sochi last week.

“One need only look at initiatives such as the Forum on China-Africa Cooperation, which was last held in Beijing in 2018, to see that the focus is now on partnership for mutual benefit, on development, trade and investment cooperation and integration,” Ramaphosa said.

He lambasted remarks which label initiatives like the recent Russia-Africa Summit as an attempt by world powers to expand their geopolitical influence. African countries had taken part in the  summit to discuss ways of how to increase trade and cooperation between Russia and Africa. He said the summit was a sign of the growing economic importance of Africa on the world stage.

“What we are witnessing is a dramatic re-balancing of the relationship between the world’s advanced economies and the African continent,” he said.

African countries have consistently affirmed that Africa no longer wants to be passive recipients of foreign aid, said Ramaphosa. The president said African countries are developing and their economies are increasingly in need of foreign direct investment.

“We are ever mindful of our colonial history, where the economies of Europe were able to industrialize and develop by extracting resources from Africa, all the while leaving the colonies underdeveloped,” said Ramaphosa.

Even now, African countries are still trying to stop the extraction of its resources, this time in the form of illicit financial flows through commercial transactions, tax evasion, transfer pricing and illegal activities that cost the continent more than 50 billion dollars a year, according to Ramaphosa. The age where “development” was imposed from outside without taking into account the material conditions and respective requirements of our countries is now past, the president said.

“China, Russia, Organisation for Economic Cooperation and Development countries and other large economies are eager to forge greater economic ties with African countries. “This is because they want to harness the current climate of reform, the deepening of good governance, macro-economic stability and the opening up of economies across the continent for mutual benefit,” the president said.

 

Nuclear Energy Will Create Jobs and Raise Skill Levels in Africa

Left-Claver Gatet, Rwanda Minister of Infrastructure. Right-Alexy Likacheve, Director General of Rosatrom. Speaking at the Russia-Africa Summit in Sochi.

October 27, 2019

The article below from {World Nuclear News}, reports on important agreements with Russia to build nuclear power plants in Africa. Beyond providing energy, nuclear plants will provide jobs and new shill levels for the tens of million of young Africans entering the work force.  Along with China, Russia is assisting African nations in building vitally needed infrastructure, which they need to become industrialized, with productive manufacturing and agriculture sectors. This is very good news for the African continent.

Read: Nuclear Energy Can Bridge the Skills Gap in Africa

Excerpts below:

Speaking at the round table session titled The Contribution of Nuclear Technologies in the Development of Africa,  Alexey Likhachov  said:.

“We are talking about solutions related to raising the level of education, energy security, applying nuclear solutions to medicine, agriculture, as well as other scientific research and development. Every dollar invested in our projects in any country, brings two dollars in localisation to that country. This significantly increases the country’s GDP.”

Rosatom said a job is created for every 0.5 MWe of electricity produced at a nuclear power plant, meaning that a 1000 MWe plant provides employment for more than 2000 people. Human capital development is both “a condition and a consequence” of nuclear power plant construction projects, it added.

Through joint educational programmes, the Russian state nuclear corporation is attracting applicants from African countries to its partner universities in Russia, it said, and Rosatom has already awarded up to 50 scholarships to students from Rwanda and Zambia. They are among hundreds of other African students from countries such as Algeria, Egypt, Ethiopia, Kenya, Nigeria and South Africa, it added.

Development

Claver Gatete, Rwanda’s minister of infrastructure, said: “In order to grow our industries from 17% GDP to 30% GDP, and to achieve our ambition of becoming a high-income country by 2050, we want to take advantage of nuclear to enhance our socio-economic development.” Rwanda sees a clear link, he said, between nuclear technologies and the country’s vision of development.

Citing data from the World Economic Forum, Rosatom noted that 15 to 20 million young people are to enter Africa’s workforce in the next two decades, meaning that 15% of the world’s working-age population will be in Africa, with 60% under-25.”

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Glazyev Warns Africans About IMF Looting Policies

The Russian economist Sergei Glazyev, who was for years an economic adviser to President Putin and is today minister in charge of integration with the Eurasian Economic Union, spoke to the gathered leaders at the Russia-Africa forum
in Sochi, and warned them about the policies of the International Monetary Fund (IMF). According to Moscow Times, Glazyev reported that IMF policies had led to about $1 trillion in capital flight from Russia, and another $1 trillion or so from the other 14 post-Soviet countries over the last 30 years.

Glazyev said the IMF has adopted a similar approach in Africa as the former Soviet Union. “Of course, Africa has been exploited for much longer. We have been living in this financial and economic environment for only 30 years.” Moscow Times added that “Glazyev also advised African countries to keep full control over their natural resources and infrastructure, in line with his advocacy in Moscow for greater economic self-sufficiency.”

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.