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

“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.

 

Can IGAD Achieve Peace Without Economic Development?

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

igad logo big

By Mekki ELMOGRABI

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

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

Read: IGAD and Peace Trap!

To Understand Zimbabwe and Sub-Saharan Africa One Must Know Evil Colonialism

September 15, 2019

Robert Mugabe, deceased President of Zimbabwe

Below is an insightful article on the death of Robert Mugabe. One cannot honestly and competently analyze African nations today, unless one thoroughly studies the affects of colonialism, and before that slavery.  When I look at the current state of affairs in Africa. I see the consequences of the long waves of hundreds of years of slavery, colonialism, and neo-colonialism. For example, can one truly understand Zimbabwe, Nigeria, Ghana, Kenya, and  South Africa, without examining the evil role of British Imperialism and colonialism? Is Kenya not suffering today from the removal of the Kikuyu from the the Highlands, which were turned into the “Whitelands” by the British in the early 20th century? Similarly, it is impossible to truthfully discuss Zimbabwe, and its now deceased leader, Robert Mugabe without revealing the failure of the 1980 Lancaster agreement to rectify the stealing of 70% of the nation’s most fertile land from millions of “black” Zimbabweans that was given to 4,500 “white” farmers. Why are African nations, with abundant  fertile soil, still using primitive methods of farming and have weak agricultural sectors? Why does Africa suffer from the greatest deficit of infrastructure in the world per land area, which is only beginning to be reversed by China with its Belt and Road Initiative? Why is Africa the least industrialized continent on the planet?  Are we going to blind ourselves to the ugly history of what was done to Africans over hundreds of years, and naively and simplistic blame conditions today on a lack of good governance? This error, this lack of understanding Africa’s history, perverts the the thinking of Western institutions and Africa specialists, yielding flawed analysis.

Mugabe’s Obituaries Rife with White Supremacism

 

AU Demands: African Integrated High Speed Railway Network

July 4, 2019

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

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

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

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

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

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

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

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

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

Read full article: Africa Integrated High Speed Railway Network

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

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

May 12, 2019

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

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

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

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

Read the entire article below.

Africa and China’s Belt and Road strategy

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

April 30, 2019

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

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

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

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

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

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

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

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

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

Read President Xi’s Key Note address

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

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

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

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

Read entire communique of Belt-Road Forum

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

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

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

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

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

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

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

$50 Billion to Recharge Lake Chad; Pres Trump Should be at China’s Belt-Road Forum

April 25, 2019

Nigerian President, Muhammadu Buhari-left and UN General Secretary  Antonio Guterres-right  (courtesy LEADERSHIP)

UN Promises To Help Raise $50 Billion for Lake Chad Water Transfer

Nigerian President Muhammadu Buhari enrolled UN Secretary-General Antonio Guterres in the effort to raise the $50 billion needed to finance the construction of the Transaqua project to refill Lake Chad, Nigerian media report. That figure was proposed at the International Conference on Lake Chad in February 2018. Here is one such report from the Nigerian daily {Leadership}. Transaqua is an “inter-basin water transfer” project that I have advocated for over 20 years and discussed with President Buhari shortly after he was elected in March 2015. True to his word, President Buhari has remained committed to this inter-basin water transfer project, which would transform the living conditions for over 30 million Africans trying to survive in Lake chad Basin.

“There is a glimmer of hope for the revival of the shrinking Lake Chad after the United Nations yesterday agreed to help in efforts to raise $50 billion for its recharge.” President Muhammadu Buhari revealed yesterday that  UN Secretary-General, Antonio Guterres, had accepted to co-chair a special fundraising session to raise $50 billion (or £38.65 billion) for a project to help revive the drought stricken Lake Chad.”

{Leadership} reports that President Buhari had written to the UN scribe to co-chair the fundraising session with him, which the UN chief accepted. The response of the UN Secretary-General was presented to President Buhari by Dr. Akinwumi Adesina, president of the African Development Bank-(AfDB), at the State House, Abuja yesterday.

In a statement by his press spokes person, Garba Shehu, Buhari  said such a special forum was necessary in view of the size of capital required for the project, which was unavailable to the Lake Chad Basin countries. “President Muhammadu Buhari has welcomed the acceptance of the United Nations Secretary-General, Antonio Guterres to co-chair a Special Session to raise $50 billion to fund the inter-basin water transfer from Central Africa to revive Lake Chad,” Buhari said in the statement.

{Leadership} reports that the Lake, which borders Nigeria, Niger, Chad and Cameroon, has lost 90% of its size due mainly to climate change, leading to fear of famine and throwing the economic life of the 30 million population around it into jeopardy. The shrinking Lake is part of the reason why insurgency and terrorist activities thrive in the region, with militant groups including Islamic State in West Africa (ISWA) and Boko Haram having their strongholds there….”

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China Ambassador: `Why U.S. Shouldn’t Sit Out the Belt and Road’

Under the headline above, China’s Ambassador in Washington Cui Tiankai wrote a column in {Fortune} magazine on the eve of the Second Belt and Road Forum in Beijing. “Don’t miss all the winning” involved in the Belt and Road, Cui admonishes, perhaps referring to one of President Donald Trump’s favorite phrases.

The ambassador starts with a very direct challenge: “Imagine the potential of China and the United States, the world’s two largest, most vibrant economies, collaborating on the most ambitious development project in history. The scenario is no fantasy: China’s Belt and Road Initiative (BRI), which kicked off almost six years ago, will eventually connect a vast swath of the world, creating huge yields in economic activity, and wiring the world together as never before. However, the United States remains on the sidelines, and this has implications not only in terms of missed opportunities for growth in the U.S., but for the cause of global development, which needs the ingenuity of US industry.”

Cui gives many arguments for the BRI which reflect those of Xi Jinping. He cites total benefits to the 126 countries now in relationship to it: $6 trillion in total trade, $80 billion in direct investment by China; 300,000 new “local jobs” in those countries; Kazakhstan’s first-ever access to the Pacific Ocean; 6,000 new jobs in Europe’s largest inland port, Duisburg; Kenya’s beginning of economic development and industrial-ization; and so on, with citations from national leaders.

“So where is the U.S. amid all of this winning?” he concludes. “There are countless opportunities to U.S. corporations available through BRI projects. Honeywell International is already working with partners to further oil and gas development along the Belt and Road. General Electric has signed a number of deals with partners of the BRI which will help to provide reliable power and energy to critical regions throughout the world. Caterpillar is working with China’s initiative to help solve Pakistan’s severe power shortages. Meanwhile, Citibank is actively providing financing for projects through the markets along the Belt and Road. We certainly welcome more taking part…. My suggestion is that the U.S. embrace this opportunity.”

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

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

Belt and Road Initiative: Another path to globalization

by Lawrence Freeman

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

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

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

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

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

Awakening the Sleeping Giant, Africa

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

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

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

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

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

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

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

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

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

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

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

Will the West Join the BRI?

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

Read: China’s New Approach to Globalization