Africa Advancing With Science, Technology, and Infrastructure

China’s Belt and Road Initiative and Its Long-Term Impact on African Countries

Dr. Alexander Demissie of Ethiopia, an expert in China-Africa relations, spoke in Germany, November 26, 2017.

Below are excerpts from an excellent presentation by Dr. Demissie on the increasingly productive relationship between China and Africa to develop the continent’s infrastructure, which Europe and the Unites States have refused to do.

‘My third point: the BRI is primarily an infrastructural undertaking. We don’t yet have political institutionalization. We have infrastructural ideas. We have corridors, but we don’t yet have political institutions. So, if we talk about the Asian Infrastructure Investment Bank (AIIB), or the Silk Road Bank, these are just connected
to infrastructure; they are not political ideas.

“Interestingly, this idea fits perfectly into the current African need—infrastructure development. Africa wants infrastructure, going back here to the African Union’s Agenda 2063 strategic framework that has also, coincidentally, been coming up. Together with the BRI, Africa wants a good infrastructure connection, a good internal interconnectivity. So, the idea of the BRI coming from China is perfectly fitting into the idea—actually happening or being discussed—within the African continent.

“China has also been very clear since Johannesburg in 2015 that they want to cooperate more with Africa more on infrastructural projects that create regional connectivity. That is where the BRI comes in. That’s why I mentioned earlier that the BRI is primarily an infrastructure topic.

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Putin and El-Sisi Sign Economic Deals in Cairo; Russia To Build Nuclear Power Four-Plant Complex for Egypt

December 11, 2017–Russia and Egypt have signed an agreement to construct Egypt’s first nuclear plant, which will be followed by construction of three more. Costing $21 billion, the porject is scheduled to be finished by 2028-2029.

Russian President Vladimir Putin met today in Cairo with Egyptian President Abdel Fattah al-Sisi. They discussed economic matters, energy, and politics, as well as the possibility of resuming air travel between Russia and Egypt, which was suspended in November 2015 after the crash of a Russian passenger jet over Sinai in what is believed to have been an act of terrorism.

President Putin stated, “I am pleased to note that our economic links are developing at a fairly high pace, and we really have a lot of good projects ahead.”

President al-Sisi responded, “Since the 1950s and ’60s, Russia has always supported Egypt and still supports our country: both with metallurgical plants and the construction of the Aswan Dam, and today we will sign a contract for the construction of a nuclear power plant.”

The preliminary agreement between the countries was signed in 2015; a loan from Russia will cover 85 percent of the construction costs. Russia’s Rosatom will service the complex’s four reactors for 60 years, its chairman Aleksey Likhachyov said today, RT reported. Representatives of Russia’s Rosatom nuclear corporation and Russian universities have recently visited Egyptian universities to prepare engineering students to work at the Daba nuclear power plant in the future. The Russian delegation gave a number of presentations at the Russian Center for Culture and Science in Cairo.

One day after Eyptian President El-Sisi and Russian President Putin witnessed the signing of a deal for the construction of four Russian reactors in the Dabaa Nuclear Power Plant project, it is reported that the Egyptian Atomic Energy Authority (EAEA) has already begun a study at the El Nagila site, which takes about three years, to see if it is suitable for the construction of four nuclear plants, according to sources at the Egyptian Ministry of Electricity. The study will be carried out parallel with the construction at the Dabaa site, where the first reactor is scheduled to come on-line in 2026. When that plant is complete, it will become only the second country in Africa, following South Africa, to have a nuclear power plant.

The {Daily News Egypt} reports that Egypt has signed protocols and MOUs with 10 countries for cooperation in nuclear energy, to help with training and the utilization of expertise in reactor management, and security, safety, and the possibility to provide formal advisory services to the EAEA

Africa’s Ports Revolution: Railway Ports of the East

This an informative article written on February 23. 2017, reporting on the exciting potential for the developments of Africa’s East coast ports with railroad connections to the interior of the continent. 

The population of Africa is presently 1.2 billion and growing at a rate of 2.5% a year, more than twice that of any other continent. In two years’ time, it will gain the population of the UK; in 12 years of compounded growth it will gain the population of China.

All these extra people may add dynamism to economies, but only if the increase in labour supply can be matched by an equivalent increase in economic activity; otherwise,  rising population density may destabilise social and political systems – an effect already seen in Rwanda and the Democratic Republic of Congo (DRC).

This challenge has led to a different pattern of development for ports on Africa’s east coast, compared to the west coast. In the west, the centres served by these ports are close by, sometimes right outside the port gate. In east Africa, by contrast, they are between 500km and 1,000km away, and most of the infrastructure needed to reach them has not yet been built. In the case of the Doraleh container terminal at Djibouti, the goal is the Ethiopian highlands and the valley of the White Nile at Khartoum, a cluster roughly equivalent to the population of Japan. In East Africa, a similar-sized population is grouped in the Great Lakes states, South Sudan and the DRC. All of these centres, with the marginal exception of the DRC, are landlocked.

Their ability to attract investment and benefit from globalisation depends, among other things, on having efficient rail, road and pipeline links to the Indian Ocean “transit  states” of Kenya, Tanzania and Djibouti.

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Industrialization of Ethiopia With Chinese Cooperation

Below are excerpts from a speech by Mr. Mehreteab Mulugeta Haile, Consul General of Ethiopia , reporting on the progress that Ethiopia has made to develop its nation, with its emphasis on infrastructure.

Ethiopia is one of the largest Least Developed Countries (LDCs) in Sub-Saharan Africa, with a population of about 100 million people. After suffering economic stagnation for decades, its economy began to grow in the mid-1990s after a new administration led by the Ethiopian People’s Revolutionary Democratic Front (EPRDF) took the helm of government.

For the last 15 years, Ethiopia has become one of the fastest growing economies in the world, with an average Gross Domestic Product (GDP) growth rate of about 11% per annum. To continue with this rapid economic growth, the Ethiopian Government rolled out in 2010, an ambitious five-year Growth and Transformation Plan (GTP). This plan aims to attain a lower-middle-income status by 2025. Currently the country is implementing the second Growth and Transformation Plan (GTP II), which is built on Sectoral Policies, Strategies  & Program and Lessons drawn from the first GTP and the post-2015 “sustainable development goals” (SDGs). It has also taken into account global and regional economic situations having direct or indirect bearing on the Ethiopian economy.

Expanding the manufacturing sector will focus on identifying new investment areas such as biotechnology, petrochemicals, electricity and electronics, information and communication technologies (hardware and software production industries).

In the infrastructure sector, the overall strategic direction is to ensure the creation of infrastructure that supports rapid economic growth and structural transformation. This direction will create mass employment opportunities, an institution having strong implementation capacity, ensure public participation and benefit, construct decentralized infrastructure development systems, solve financial constraints, ensure fairness and profitability, and ensure integrated planning of infrastructure development.

Within infrastructure overall, rural roads are given high focus to help reduce poverty by facilitating easy access of agricultural products, at low transportation cost, to the market, improving access to basic socioeconomic services, and strengthening rural-urban linkages.

If we take my country, Ethiopia, as an example of Chinese cooperation and involvement in Africa, we find that what has been said above is false. According to the Ethiopian Investment Commission, Chinese companies, with close to 379 projects that were either operational or under implementation in the 2012-2017 period, are on top of Ethiopia’s investment landscape, both in number and financial capital. Among these companies, 279 were operational with projects that are worth over 13.16 billion Ethiopian birr (over 572 million U.S. dollars) during the reported period, while the remaining 100 are under implementation.

In terms of employment creation, Chinese companies have created more than 28,300 jobs in various sectors in Ethiopia during the reported period, of which over 19,000 were created in Ethiopia’s manufacturing, as it is the leading sector in attracting companies from China. China brings not only investment, knowhow, and transfer of technology, but also skills and entrepreneurship.

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Can Ethiopia be Africa’s leading manufacturing hub?

With Ethiopia having the second biggest population in Africa, it is under growing pressure to tackle unemployment. The BBC’s Alastair Leithead visited the country to find out how it is tackling the problem.

The factory workers sing Ethiopia’s national anthem in unison as one shift ends and another prepares to begin.

Outside, a fleet of passenger buses pulls into Hawassa Industrial Park, as thousands of textile workers – most of them women – switch places.

The new arrivals take up their stations behind sewing machines, ironing boards and cutting tables as the shirts and suits start taking shape.

The park, claimed to be the biggest in Africa, is 140 hectares (350 acres) of factories, with a water treatment plant and its own textile mill.

Six months after opening in southern Ethiopia, 10,000 people already work here, and at full capacity it is expected to provide 60,000 jobs.

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The New York Times Is All Wrong About Africa

Lawrence Freeman

August 3, 2017

     The July 30th Sunday edition of the New York Times, published an article by its Africa reporter, Jeffrey Gettleman, entitled, “Loss of Fertile Land Fuels ‘Looming Crisis’ Across Africa.” The analysis, and conclusions of this article are all wrong, because they are based on false and ideologically driven axioms regarding the development of Africa.  Essentially, Gettlemen and the New York Times are steeped in the “Zero Growth” culture which became prevalent in the United States and the West in 1970s.

     In the aftermath of the 1963 assassinations of President John F Kennedy and the ensuing “rock-drug-sex” counterculture, the groundwork was prepared for the onslaught the environmental movement. With its no-growth, anti-science, anti-industrialization outlook that dominated the thinking of the baby-boomer and succeeding generations, cultural pessimism became pervasive. This ideology combined with the looting of Africa’s natural resources by the financial predators of Wall Street and the City of London resulted in a policy of no development for Africa that has continued to the present. 

     Today Africa has the largest deficit of infrastructure per capita and per square kilometer on the planet. The lack of electrical power, railroads, water management, and modern highways is literally responsible for the deaths of millions of Africans each year.  Only since the entrance of China into Africa in the past decade with its commitment to build physical infrastructure, have we witnessed a change in the dynamic on the continent.

Economic Science

     It is no accident that the US and Europe have not contributed to the construction of vital infrastructure projects; it’s their flawed policy. Infrastructure is not just one of several possible good ideas; rather it is an indispensable, irreplaceable ingredient to the success of any agro-industrial economy.  Infrastructure drives an economy forward and upward by incorporating new scientific advances in technology that improve the productive powers of the workforce, yielding increased economic output of wealth for society. The most wicked and pernicious feature of the Zero-Growth ideology is the denial of the unique creativity of Mankind. For thousands and millions of years Mankind has transformed his surrounding environment to make it more propitious for human expansion.  Like the discovery of “fire,” a million years ago, the Neolithic revolution 12,000 years ago was a revolution in Mankind’s knowledge of the universe and led to a population explosion. This non-linear growth pattern has been repeated many times over the last 10,000 years, as a result of the unique power of discovery by the human mind.

     The essential underlying cause of the problems in Africa today is not over population, or loss of arable land, but underdevelopment.   The failure to grasp this elementary concept by the New York Times and others is the reason for the abysmal conditions of life in Africa’s that contributes to the easy recruitment to terrorist movements like Boko Haram in the Lake Chad Basin region.

False Axioms

     For example, Gettleman cites the:

 “overwhelming degradation of agricultural land throughout Africa, with one recent study showing that more than 40 million Africans are trying to survive off land whose agricultural potential is declining.” He continues, “More than in any other region of the world, people in Africa live off the land. There are relatively few industrial or service jobs here. Seventy percent of Africa’s population makes a living through agriculture, higher than on any other continent, the World Bank says. But as the population rises, with more siblings competing for their share of the family farm, the slices are getting thinner.”

     Why is agricultural potential of the land declining? Why are there relatively few manufacturing jobs? Why are the slices of land getting thinner?

     The answer is not the Malthusian argument that Africans breed too fast and that this huge continent – almost three times the size of the continental US- has too many people trying to exist on a shrinking pie of arable land. The proper question to ask is; why after half century since the “Winds of Change” liberation from the colonial powers, Africans still do not enjoy the fruits of modern industrialized economies with a modern standard of living, instead of large pockets of abject poverty? Any poor-quality farm land, even the Sahara Desert, can be made productive with water. Less than 5% of cultivated land is irrigated In Africa. With manufacturing plants to build the irrigating machinery and sufficient energy to pump the water, millions of hectares of arable land can become fruitful. Nuclear powered desalination could provide fresh water from the Mediterranean and Red seas to the North African deserts. US farmers, among the most productive in the world, experienced huge increase in yields of food production including in the former desert of southern California by utilizing new technologies, fertilizers, irrigation, and abundant energy under President Franklin Roosevelt’s economic recovery.

     Why has the US and the West not assisted African nations in acquiring the necessary infrastructure and new technologies to expand its cultivated land and build a substantial manufacturing sector as part of an integrated modern economy. In his brief Presidency, John F Kennedy collaborated with President Kwame Nkrumah of Ghana to build the Volta Dam hydro-power and industrial smelting complex. This what we should have continued to do over the last 50 years, and if we had, Africa would look completely different than it does today.

Population Reduction Is Not the Solution

     In the concluding section the article, the New York Times and its reporter reveal the depraved thinking of the Zeitgest of western culture; we have too many people using up the fixed natural resources of our planet.

“Africa’s land pressures may seem overwhelming, maybe even unstoppable. But scientists say there are solutions within reach. For example, the continent has the highest fertility rates in the world, but more African governments are pushing contraceptives, saying the best answer for densely populated countries is smaller families.

‘The problem is too many people, too many cattle and too little planning,’ said Iain Douglas Hamilton, a wildlife activist in northern Kenya.”

   This view echoes Henry Kissinger’s infamous “National Security Study Memorandum 200,” written 1974-1976, which advocated reducing the population for “Third World” nations to guarantee an uninterrupted supply of vital natural resources to the West. For centuries, the British raciest imperialist school has targeted Africa’s population as inferior and as an impediment to their access of Africa’s precious minerals.

     The birth a child can never be a problem for society. Each new human being, by the fact that it is human, intrinsically has the potential to contribute to new discoveries that can change the world, or contribute to the progress of society in more humble manner. Why not take up the challenge of developing the vast continent of Africa with its soon to be multi-billion population, and its rich untapped wealth? Presently we are witnessing the construction of desperately needed infrastructure on the Africa continent, with the assistance of China. Yet, Africa’s requires hundreds of gigawatts of electrical power, East-West and South-North railroads, high speed trains connecting the capital of each nation, and much, much, more. If the US joins the new paradigm of China’s “Belt and Road Initiative” and collaborates on eliminating poverty and hunger, and expanding Afrfia’s unrealized agricultural potential, the continent will be able to sustain an expanding population at a standard of living commensurate with that of the advanced sector nations.

     Let us act on the words of President Franklin Roosevelt, when he told his son at the Casablanca Conference during World War II, that if we divert water into the Sahara Desert: “It’d make the Imperial Valley in California look like a cabbage patch.” 

 

BRICS, China, and Ethiopia Promote Industrialization

BRICS ministers adopt new industrial action plan

The industry ministers from Brazil, Russia, India, China and South Africa (BRICS) adopted a new action plan to deepen industrial cooperation among the five nations, Trade and Industry Minister Rob Davies said in a statement on Sunday. Davies and his counterparts from the BRICS grouping attended a meeting in Hangzhou, China where industrial and manufacturing matters were discussed and which culminated in the adoption of a seven-point action plan. “The action plan states that the world economy is still in a period of profound adjustment after the international financial crisis,” Davies said.

 “Industrial sectors, the manufacturing sector and the service sectors related to it in particular, have become key factors in sustaining mid- and long-term economic development.” At the meeting, the ministers acknowledged that the new industrial revolution of digitisation among other things will change traditional production flows and business models that will give rise to new industrial forms.

The following seven points have been identified as key in the action plan:

       strengthen industrial capacity cooperation 

       strengthen the coordination and match-making in the field of industrial policies

       promote the cooperation in the development of new industrial infrastructure

       expand cooperation in technological development and innovation

       deepen cooperation in the field of small and medium enterprises (SMMEs)

       strengthen cooperation in standard area

       facilitate all-round cooperation with the United Nations Industrial Development Organization (UNIDO)

He emphasized that industrial development strategies and investment cooperation have to grapple with the potential threats in particular in the context of high unemployment.  Davies said the industrial development cooperation between the Brics countries can be used as a springboard to foster growth and development and create work opportunities. BRICS countries will focus on using their respective rich natural and human resources and broad domestic markets to broaden industrial capacity and policies, while working together in developing new industrial infrastructure and technology.

Chinese investment leads way as Ethiopia opens to outside

As Ethiopia, the most populous nation in East Africa, is spreading its economic relations across the globe, investment from the world’s most populous nation China is playing a prominent role. Ethiopia, with a population of some 100 million, is a country on the move with rail, air and road infrastructure projects and an ambitious industrialization plan.

Ethiopia keenly needs investment from industrial giants like China to give its burgeoning population, which is estimated to grow by 2 million annually, ample employment opportunities. According to the Ethiopian Investment Commission (EIC), there have been 279 Chinese companies with more than 571-million-U.S.-dollars worth of investment, creating more than 28,300 jobs in Ethiopia between January 2012 and January 2017.

Huajian Industrial Holding Company Limited, a Chinese company that has a long-term investment plan in Ethiopia, is operating two plants in the country. Yin Xinjun, Vice General Manager at Ethiopia Division of Huajian Industrial Holding Company Limited, says Huajian’s decision to have its first plant in Ethiopia stems from the country’s firm desire for industrialization. In fact, a personal call for more investment by late Ethiopian Prime Minister Meles Zenawi during an August 2011 visit to China is what motivated initially Huajian to invest in Ethiopia, says Yin. According to Yin, Huajian’s investment in its first African plant had overcome several challenges, including logistical ones. Huajian initially had to transport its goods through an overcrowded highway from the plant in landlocked Ethiopia to Djibouti port. The problem has been partially solved with the construction of the 85-km Addis Ababa-Adama Expressway funded partly by the Export-Import Bank of China (China EXIM bank) and built by China Communications Construction Company (CCCC). The 500-million-dollar expressway was inaugurated in May, 2014.

Huajian also had to face intermittent power and water outages. The Ethiopian government later solved this problem through a special water and power line for the Eastern Industry Zone where Huajian’s first plant is located. Overcoming these challenges, Huajian currently employs more than 4,000 Ethiopians with a plan to increase employment to 50,000 people by 2022. Having established a plant in the Dukem industrial zone, 37 km south of Addis Ababa, Huajian is currently building a massive 138-hectare international light industry city in Addis Ababa. With the completion of the light industry city, Huajian foresees increasing its export revenue from 30 million dollars in 2016 to 4 billion dollars by 2022

However Western critics warn Ethiopia of being trapped in a neo-colonial relationship and some Ethiopians wonder if the Ethiopia-China relationship comes at the expense of other countries. Gedion Jalata, Program Manager of Africa China Dialogue Platform at Oxfam International, says both views miss the mutual beneficial and sovereignty respecting aspect of the bilateral relations. Jalata points out that Ethiopia is one of the beneficiaries of the China-proposed Belt and Road Initiative.

While Ethiopia is attracting massive Chinese investment in infrastructure projects, the Ethiopian government has set its sight in particular on Chinese involvement in industry parks. Ahmed Shide, Ethiopia’s Minister of Transport, says the country plans to utilize Chinese built infrastructure to boost its industrial exports. Shide is especially keen on the 4.2-billion-dollar Chinese built and financed 756 km Ethiopia-Djibouti electrified rail line to boost its industrial exports.

The New Name for Peace Is Economic Development

Helga Zepp LaRouche

July 7, 2017

    I think that we are all aware that we are involved in the historically important process of trying to improve the relationship between the United States and China, in the context of the Belt and Road Initiative. It is especially important in the area of agriculture and food production, because this is an extremely urgent question. While at the G-20 meeting in Hangzhou last year, China and all the other participating nations devoted themselves to eradicate poverty by the year 2020, we have not yet reached that goal.

    Because of what China has been doing in Africa for the first time; building up huge industrial complexes.   Africans have a new sense of self-confidence, and they are telling the Europeans that: “We don’t want your sermons on good governance, we want to have investments in infrastructure, in manufacturing, in agriculture, as equal business partners.” {There is no substitute for Africans having their own manufacturing sector to help expand their agricultural output. }

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