Science and Technology Will Transform Africa: Ethiopia to Launch New Satellite in 2019

Finally, in recent years African nations and the African Union have embarked on the exciting and necessary use of space technology to advance their societies. Science and technology are the most fundamental drivers of economic growth. It is the discovery of new scientific principles of space that lead to breakthroughs in new technologies to transform the continent. For too long, Africa has been denied the “right” to use space science, and it no surprise that Ethiopia is in the leadership of this effort.

Ethiopia Will Have Its Own Remote Sensing Satellite, with Help from China

Nov. 27, 2018

Dawn breaks over a radio telescope dish of the KAT-7 Array pointing skyward at the proposed South African site for the Square Kilometre Array (SKA) telescope near Carnavon in the country's remote Northern Cape province in this picture taken May 18, 2012. South Africa is bidding against Australia to host the SKA, which will be the world's largest radio telescope when completed. Picture taken May 18, 2012.

As reported yesterday by Reuters, the government of Ethiopia announced that Ethiopia would have an Earth remote sensing satellite built in China and launched in September 2019.

China would pay $6 million for the design and construction of the satellite and the launch, toward the $8 million total cost. {The EastAfrican} weekly newspaper and on-line site reported that the satellite will be launched from China, but the command and control center will be based in Ethiopia.

Although according to the Reuters wire, the satellite will be used for “climate and related phenomena,” in fact, the data will also be used for agriculture, land use, and other necessary monitoring for the economy.

Ethiopia’s Ministry of Innovation and Technology released a statement on the future of the country’s space plans, and mentioned a number of African space projects. One of these involves China granting $550 million to Nigeria to purchase two satellites according to Quartz Africa multimedia website, which explains that China has “deepened its place in all spheres, economic and political. Conquering the space business and providing space mapping services is part of Beijing’s globe-spanning Belt and Road Initiative, with both state-run and private Chinese space companies selling made-in-China satellites abroad.”

Quartz Africa reports that “as satellites get smaller and cheaper, an increasing number of African nations are declaring their plans to look skyward. The African Union has also introduced an African space policy, which calls for the development of a continental outer-space program and the adoption of a new framework to use satellite communications for economic progress. The demand for satellite capacity is expected to double in the next five years in Sub-Saharan Africa.”

Undoubtedly, as part of the “Space Silk Road,” China will be playing a leading role in bringing space technology to Africa.

Read: China to Help Launch Ethiopia’s First Satellite in 2019 

 

Final Call: IMF and World Bank real culprits in Africa’s debt crisis

This article debunks the myth of China colonizing Africa through a “debt trap” policy. It also has quotes from me on this subject. You can read more comments from me with this link to my post: A Brief Response: Marshall Plan for Africa or “Debt Trap?”

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FINAL CALL: IMF-and-World-Bank-real-culprits-in-Africa-debt-crisis.

BY JEHRON MUHAMMAD |  SEP 12, 2018 

Many Western press outlets, including CNN, have repeated a recent claim presented to the U.S. State Department that the “Chinese government is leveraging billions of dollars in debt to gain political leverage with developing countries.”

The phrase they use to accuse China is “debt book diplomacy,” a play on the past usage of the term “gunboat diplomacy” about U.S. policy. They accuse China of miring Africa in debt and “undercutting their sovereignty.”

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Chinese President Xi Jinping (R) meets with African Union Chair Paul Kagame who is President of Rwanda at the Great Hall of the People in Beijing, capital of China, Sept. 4, 2018. (Xinhua/Ju Peng)

Not to be outdone, ABC News chimed in: “China’s commercial presence in Africa has prompted complaints in some countries that the continent gets too little from the relationship. Africa is a major target of Beijing’s ‘Belt and Road’ initiative to build ports, highways and other trade-related infrastructure, but some critics in Tanzania, Kenya and other countries say they leave hosts with too much debt.”Pushing back, China claims to be helping African development, not piling up debt, one top China government official said.

“If we take a closer look at these African countries that are heavily in debt, China is not their main creditor,” its special envoy for Africa Xu Jinghy said, during a news conference. “It’s senseless and baseless to shift the blame onto China for debt problems.”

Claims that China is an “economic predator” in Africa, pillaging natural resources and dragging it into debt crisis are “as false as they are sensational,” the Xinhua official Chinese news agency said in a commentary.

According to African economic and political analyst Lawrence Freeman, “It is more than ironic that the West is complaining about Africa’s debt to China. Since the 1960s, Western nations, the IMF, World Bank, Paris Club, etc., have ‘looted’ Africa of hundreds of billions of dollars in bloated debt payments and through the manipulation of currencies, and terms of trade.

Of note is the fact that the anti- China accusation is fairly recent. An April 18 Financial Times article, headlined “African nations slipping into new debt crises,” did not mention China one time as the source of the continent’s debt crisis.

In fact the FT’s piece is critical of the International Monetary Fund and World Bank. “The increase in debt should have raised all sorts of flags and triggered triage, but it didn’t. Neither the International Monetary Fund nor the World Bank sounded the alarm,” the London-based financial paper reported.

In addition, the FT claimed some African countries were hit because “they borrowed in foreign currencies and were finding debt hard to finance after a significant depreciation.”

In 2017 Quartz Africa reported, again not mentioning China, that “African eurobond debt is growing to risky levels.” A eurobond, also referred to as sovereign bond, is a debt security issued by a national government and is denominated in a foreign currency, usually dollars, rather than the euro that its name implies.

This debt crises have been cyclical. Africa’s debt of the 1980s mushroomed to $270 billion and had many factors, according to Quartz, “depending on which side of the fence you’re on.”

Those events came full circle. Even though Quartz recognized the repeating “hallmarks” of unchecked corruption, poor governance, and political mileage investment, the “single catalytic factor to trigger debt unsustainability in Africa has always been the crash of commodity prices on the global market.”

The news service Reuters reported in May of 2017 that “most sub-Saharan African countries still rely on U.S. dollar-denominated debt to finance their economies. Some investors say this is sowing the seeds of future debt crises if local currencies devalue and make dollar debt repayments more expensive.”

The United Nations trade body UNCTAD estimates that Africa’s external debt rapidly grew to $443 billion by 2013 through bilateral borrowing, syndicated loans and bonds. But since then sharp currency devaluations across the continent have pushed up the cost of servicing this debt pile, which continues to grow, the agency said.

It’s no wonder over 50 African heads of state attended the Sept. 3-4 Forum on China-African Cooperation (FOCAC) in Beijing. During the forum China president Xi Jinping announced a hefty $60 billion package to compliment another $60 billion pledged at the 2015 summit.

This breaks down, according to press reports, to $15 billion in grants and interest free loans, $20 billion in credit lines, a $10 billion fund for development financing, $5 billion to finance imports from Africa and waving the debt of the poorest African nations diplomatically linked to China.

On top of President Jinping letting the numbers speak for themselves he had words for China’s detractors: “Only the people of China and Africa have the right to comment on whether China-Africa cooperation is doing well … . No one should deny the significant achievement of China-Africa cooperation based on their assumptions and speculations.”

The African Union chairman, Rwandan President Paul Kagame, has been heard to call Chinese aid and investment strategy in Africa “deeply transformational” and respectful of the continent’s global position.

He said FOCAC had grown into a powerful engine “of cooperation fully aligned with Africa’s Agenda 2063 and sustainable development goals.”

“Our growing ties with China do not come at anyone’s expense. The gains are enjoyed by all who do business with us. Building the capacity of African institutions to transact and monitor more effectively is what will make the biggest difference,” he said.

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New Course on African History: The Effects of 500 Years of Slavery and Colonialism on Africa

I will be teaching this course in the Fall at the Community College Baltimore County, and Frederick Community College, Maryland, USA

The Effects of 500 Years of Slavery and Colonialism on Africa

New! The Effects of 500 Years of Slavery and Colonialism on Africa
7 sessions, 14 hours

Africa is the poorest continent with hundreds of millions of people living on $2 per day. African nations have the greatest deficit in basic infrastructure like roads, rail, and energy. It’s the only continent where cholera is endemic. African nations are also spending billions of dollars importing food when they have an abundant amount of fertile land. Learn about the causes for Africa’s current condition due to it’s unique history of slavery and colonialism. With the recent China-Africa Summit-(FOCAC) in Beijing, one should be optimistic that economic conditions on the continent are changing for the better

Instructor: Lawrence Freeman has been involved in Africa for almost 25 years and has made over two dozen visits to the nations of Sudan, Nigeria, Mali, Chad, and Ethiopia. He has studied the history and political economy of several Africa nations. Lawrence has attended weekly seminars and forums on Africa in Washington DC including Congressional hearings on Africa. As a result, Lawrence has attained an in-depth knowledge of both historical and current developments of Africa. He has written dozens of articles analyzing the political economies of Africa nations including Sudan, South Sudan, Nigeria, Kenya, Mali, Ethiopia, Zimbabwe, and the Democratic Republic of the Congo. He specializes in promoting policies for physical economic development, and has presented his ideas to government and non-government circles alike in both Africa and the United States. Lawrence is the Vice Chairman of the International Scientific Advisory Committee to the Lake Chad Basin Commission, and played a prominent role in the International Conference to Save Lake Chad in Abuja, Nigeria from Feb 26-28, 2018. He is promoting the Transaqua water project to recharge the shrinking Lake Chad

LR565 The Effects of 500 Years of Slavery and Colonialism on Africa
5-Digit  Number: 16290
Tue, 1 p.m. – 3 p.m., 11/6 – 12/18 Location:  Conference Center/E-106
Tuition: $50.00          Fee: $114.00     Total: $164.00
MD residents age 60+ pay fee only

Big Plus for Africa: Belt & Road, BRICS, and Africa-China Summit, Converging for Development

{Heading into the 7th  Forum On China-Africa Cooperation-(FOCAC) we are already witnessing significant changes in the physical infrastructure of Africa as a result of China’s One Belt and Road Initiative, the BRICS and previous FOCAC summits. Next week’s China-Africa Summit portends greater cooperation for investment in infrastructure and manufacturing, leading to the long over due industrialization of the continent. Thus finally liberating Africa from the effects of 500 years of slavery and colonialism. In addition to China, many nations are investing in Africa in constructive ways, but unfortunately not the United States, which is retreating from Africa. President Trump can and should reverse this trend by joining China’s Belt and Road development of this great continent, which in less than two generations will be the population center of world. Please review the articles below.}

Chinese Envoy to FOCAC: `Twin-Engines’ of BRI and FOCAC Will Transform Africa

Aug. 29, 2018 –Zhou Yuxiao, Chinese Ambassador to the Forum for China-Africa Cooperation (FOCAC), spoke of the historic impact of the Sept. 3-4 FOCAC summit, in an interview with Xinhua yesterday. His observations come as many African heads of state are already arriving in Beijing, even before the Sept. 3-4 formal sessions of the Forum take place. Founded in 2000, FOCAC has had two previous heads-of-state meetings, one in 2006 and one in 2015.

Zhou said that the China-Africa collaboration had proceeded in small steps, but successfully over the years. All the while, China’s ability to “walk the walk,” and Africa’s success in collaborating, made things work, to the point of widespread trust and effectiveness. At the 2015 FOCAC meeting in South Africa, China pledged financing in the range of $60 billion for implementing ten cooperation plans announced at the time. Now financing is also coming from the Silk Road Fund, the BRICS New Development Bank, and private Chinese firms.

Xinhua summarized, “A key aspect to watch, Zhou said, will be how China and Africa link the Belt and Road Initiative (BRI) with the UN 2030 Agenda for Sustainable Development, the African Union’s Agenda 2063, and African countries’ development plans.” This year, diplomatic relations were established between the African Union Commission (currently headed by Rwanda) and FOCAC. Zhou referred to the the BRI and FOCAC being “twin engines” for driving cooperation further in Africa. Many African leaders and experts are forecasting what lies ahead.

Lesotho’s Prime Minister Thomas Motsoahae Thabane, said in an Aug. 22 Xinhua interview, that the upcoming summit, “is a landmark in the world aiming to improve itself for the survival of the human race, which faces multiple challenges today … the commitment is not only to specific countries in Africa, but to Africa in general.” China is a “true friend” of Lesotho, not “by word of mouth … but through actions, actions that push us to go from the situation of being underdeveloped to a situation of being developed. What more can you wish for from a friend than to stretch a hand of friendship in order to raise you up when you were flat on your stomach?”

Thabane further pointed out that relations with China are “mutually beneficial.” In the past, for Western countries, the benefit was “always for what they call `the Mother country.’ Now, China is not like that, that is why we feel like we have a true and loyal friend in China.”

Hisham AbuBakr Metwally, an Egyptian researcher with the Ministry of Foreign Trade and Industry, wrote an Aug. 21 opinion article for CGTN, reviewing accomplishments in rail, agriculture, energy, education, and other areas in Africa, thanks to work with China to date. {“FOCAC — Unprecedented Successful Mechanism, Reshaped Africa”} But he forecast more and bigger projects and a bright future. “After the completion of all mega infrastructure projects and industrial zones, the continent will change completely.”

Note that CGTN has prepared a five-episode documentary entitled “A New Era of China-Africa Cooperation,” to show the development of African countries and to present the achievements of China-Africa cooperation.

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China-Africa Research Initiative-(CARI) at Johns Hopkins in Washington DC, provides a useful report on the progress of China-Africa collaboration. It also dispels the myth that Chinese loans are bankrupting all Africa nations. Many decades before China started investing in Africa, the continent had been suffocated by hundreds of billions of dollars of parasitic debt from Western institutions.

Excerpt from its conclusion highlight:

“Belt and Road. The language of the 2018 FOCAC will likely include more mentions of the Belt and Road Initiative, given that it is a priority of President Xi Jinping. Chinese contractors are keen to win Chinese finance for infrastructure projects desired by African governments, many of whom have been inspired by China’s industrialization and infrastructure capacity. Chinese-financed infrastructure projects in Africa such as the standard gauge railway transport projects in Kenya and Ethiopia, and new trade and industrial zones in Djibouti, Egypt, and Morocco, have been marketed as part of the Belt and Road Initiative.”

Read the complete report: The Path Ahead: The 7th Forum on China-Africa Cooperation

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This article discusses the “deepening relations” with Africa by the rest of world, and appropriately asks: “Where does this Leave the United States?” Read: The World is Coming to Sub-Saharan Africa. Where is the United States?

 

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

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

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

Yunnan Chen

Where Does Africa Fit?

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

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

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

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

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

Continue reading Silk Road to the Sahel

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

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

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

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

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

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

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

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

Development Leapfrogs in Africa Due to Chinese BRI Investment

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

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

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

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

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

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

Kenya’s Standard Gauge Railway Revolutionizing Transportation

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

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

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

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

Ethiopia Railway on the Road to Self-Management

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

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

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

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

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

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

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

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

It’s Time for Africa

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

By He Wenping- JULY 5, 2018

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

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

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

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

Proactive attitude

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

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

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

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

Advancing interconnection

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

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

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

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

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

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

Driving force

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

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

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

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

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

 

Kenya Advocating Nuclear Technology and Science For Africa

Kenya Needs a National Atomic Energy Commission, Says Education Cabinet Secretary

June 27, 2018–“It is highly regrettable that we have not effectively harnessed nuclear technology for the benefit of our people,” said Education Cabinet Secretary, Ambassador Amina Mohamed, opening the meeting of Vice Chancellors and Representatives of regional institutions involved on human resources development in nuclear science in Africa yesterday. She has called for the creation of a central government nuclear Commission, to put under one umbrella, all of the country’s nuclear activities. “We in Kenya,” she said, “realize that we must establish a National Atomic Energy Commission for our country to coordinate all the work we are doing in different  institutions and offices.”

“The application of nuclear science and technology avails enormous benefits,” she said, “including mitigating climate change, enhancing generation of energy, improving human and animal health, and increasing food production.”

Secretary Mohamed is a passionate supporter of science and technology for Kenya and for Africa. On June 16 she praised China’s role in supporting science in Africa, through a new joint center in Kenya. Her commitment is reminiscent to that of Naledi Pandor, Science and Technology Minister of South Africa, also an African woman who is an outspoken promoter of science and education for Africa.

China’s Global Times Highlights Flaws of US and Europe Policy Towards Africa

By Mark Kapchanga
June 26, 2018

Illustration: Liu Rui/GT

On June 18 in Michigan, US Secretary of State Mike Pompeo addressed a meeting under the umbrella of the Detroit Economic Club. In a question that seemed to have made him a tad uncomfortable, the secretary of state was informed that Africa appeared to be evolving and transforming rapidly, and further, China was asserting itself in the continent.

He rightly confirmed that Africa is facing two issues. One is extremist groups threatening to tear apart the continent’s fabric of unity. But the second issue is the opportunities that lie in Africa. It is here that Pompeo seems to have stained his otherwise well researched address to the people of Michigan. With obvious jealousy that is always expected from Western countries against China’s foray into Africa, Pompeo downgraded Africa’s growth potential that is underpinned by significant Chinese investments and trade by saying that Africa will see actual growth with a Westernized model of development.

He meant that the foundation for growth in Africa is the rule of law and property rights. In his usual way of disparaging China, Pompeo further claimed that Chinese trade and investments are about exercising political influence in Africa.

African countries and their leaders have grown sick and tired of such stereotyped thoughts coming from Western nations. History has proved that America and European countries are behind Africa’s underdevelopment. They not only colonized Africa but also stripped it of resources and displaced people from their lands.

This is described by Walter Rodney in his book How Europe Underdeveloped Africa where he argues that the short period of colonialism and its negative consequences for Africa spring mainly from the fact that the continent lost power. Rodney notes that power is the ultimate determinant in human society, and implies that one should have the ability to defend one’s interests and if necessary impose one’s will by any means available.

There is no doubt that when the question of power emanates, it determines one’s bargaining power, the degree to which a people survive as a physical and cultural entity. But as Rodney vividly says, “when one society finds itself forced to relinquish power entirely to another society, that in itself is a form of underdevelopment.”

Instead of Western powers always complaining about China’s presence in Africa, they should transform and improve their strategies for the continent. The old template they applied to Africa is already stale. Africa cannot be developed through conditionalities that only massage the whims of America and Europe.

Through the International Monetary Fund and the World Bank, Europe and America bullied African countries for more than three decades. Those nations seeking access to the General Account of the Fund had to commit themselves to explicit conditions regarding the conduct of their international policies.

Ultimately, African countries in need of financial support to boost their infrastructure, education and health failed to do so as the conditions were too tough. Globally, economists termed the conditions inefficient and mistargeted.

With the urge for greater development, China filled in the void. Its support to Africa has been less bureaucratic and almost without conditions.

As Pompeo and his fellow Western leaders continue complaining about China and its relations with Africa, youths in the continent are grinning having secured jobs in various projects being pursued by China. In Kenya, for instance, thousands of youths continue to earn an income from the construction of the standard gauge railway whose construction is now being extended from Nairobi to Naivasha.

The enormous investments China is pursuing in Addis Ababa have totally transformed the face of Ethiopia, a country once ranked among the poorest in the world. Today, Ethiopia is the only country in Africa that can manufacture its own leather shoes, thanks to support from China. This is the kind of friendship Africa has been yearning for.

Africa’s development can only be shaped by Africans. Europe and the US can therefore involve African leaders in designing the kind of investments and relations that fit them. If they continue condemning China on its relations with Africa, the continent’s ties with Beijing will only get stronger and thrive all the more.

The author is an economist specializing in China-Africa relations. Twitter: @kapchanga opinion@globaltimes.com.cn

 

 

Chinese Economic Engagement in Africa: New Silk Road on the Continent

“The closest look yet at Chinese economic engagement in Africa”

June 2017
The closest look yet at Chinese economic engagement in Africa

Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.

In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies.

Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.

Africa’s largest economic partner

In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years.

We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.

Africa’s economic partners, including China, India, France, the United States, and Germany, based on goods trade, foreign direct investment, aid, and infrastructure financing

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