Africa Development News: Ivory Coast and Ghana Move Forward With Infrastructure

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IVORY COAST: The government launches the construction of a hydro-agricultural dam in Koro

The Ivorian government has just launched the construction of a dam in the council of Koro in the northwest of Ivory Coast. The water reservoir on the Yirima River is intended for the development of agriculture in this part of the country.

“The realization of this dam will improve agricultural yields and ultimately, the income distributed to farmers. Its realization is therefore in line with the second phase of actions taken to accelerate the emergence of the Bafing region,” said Minister Moussa Sanogo.

 

September 9, 2020

China-Ghana cooperation thriving despite COVID-19:

The site of the upgrading project of Ghana coastal road in Accra Photos: Courtesy of CGICOP

China and Ghana are continuing to promote bilateral trade despite the COVID-19 pandemic, as the two sides actively push several programs ahead….

“Meanwhile, a 26-kilometer-long road project linking Ghana’s capital city Accra and Ghana’s largest port city Tema, one of the Belt and Road Initiative’s landmark construction projects, recently kicked off. ”

Read the full article: http://enapp.globaltimes.cn/#/article/1199432

The West Continues to Attack China to the Detriment of Africa

A new Cold War is coming. Africa should not pick sides

August 28, 2020

The author, W Gyude Moore, a senior policy fellow at the Center for Global Development, and a former minister of public works in Liberia, makes some insightful observations about the difference between the US and China in their economic strategy for Africa.  China’s investment in infrastructure in Africa is unsurpassed and would not be replaced by the West, if China withdrew from Africa. 

Excerpts below:

“It is, thus, frustrating that in its complicated, enmeshed, centuries-long history in Africa, there has never been a Western proposal for continental-scale infrastructure building. Outside Cecil John Rhodes’s racist “civilising” project of connecting Cape to Cairo from the 1870s, there has never been any programme, backed by financial resources, to build Africa’s rail, roads, ports, water-filtration plants, or power stations. It was the Chinese who sought to build a road, rail and maritime infrastructure network to link Africa’s economies with the rest of the world.

“The Western argument of Chinese debt-trap diplomacy, inferior loan terms and an insidious, covert campaign to seize African national infrastructure assets rings hollow in the absence of a like-for-like Western alternative. Until the arrival of the Chinese, the infrastructure construction space in Africa was dominated by Europeans…

“In the past eight months, Western countries have spent more than $5- trillion to prop up their economies in response to the Covid-19 pandemic. JP Morgan projects that over 14 years (2013 to 2027), China’s Belt and Road Initiative (BRI) will cost about $1.2-trillion to $1.3-trillion. That kind of gap (both in dollars and time) makes it clear that, if it wanted to, the West could equal or surpass China’s BRI with its own infrastructure programme. If Africa steps away from China’s infrastructure programme, which Western country is ready and willing to fill the gap?”

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China, the World Bank, and African Debt: A War of Words

Deborah Brautigam, Director of the SAIS China Africa Research Initiative, discusses in her article below, the duplicity of  the World Bank, in their attacks on the China Development Bank. If the US and Western Institutions would cease attacking China, stopped peddling lies about the “Africa debt–trap” and joined China’s Belt and Road Initiative, Africa’s huge infrastructure deficit could be addressed to the benefit of all Africans.

Read: https://thediplomat.com/2020/08/china-the-world-bank-and-african-debt-a-war-of-words/

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

China Eliminated Poverty With Science and Infrastructure. It Can Be Done in Africa Too!

China's Long March Out of Poverty | African Agenda – A new ...
Deng Xiaoping, who put China firmly on the path of “reform and opening up.

August 14, 2020

If one examines the long path from the end of China’s disastrous “cultural revolution” in the 1970s to China’s 2020 modern miracle of eliminating poverty for 800 million Chinese, many lessons can be learned. China’s commitment to science and building infrastructure were two essential ingredients for this accomplishment.  William Jones discusses this interesting history in his article below,”China’s Long March Out of Poverty”.

China Employs Hamilton’s Principles of Credit  for Railroads

(EIRNS) —China’s exciting announcement of its plan to increase the pace of development of maglev and its high-speed rail network, is based on its assurance that it knows how to implement that, and to finance it on top-down principles of the type proposed by Alexander Hamilton.

China announced its plans to build a system of 600 kph (373 mph) maglev vehicles, after it successfully conducted its maiden test run of a maglev vehicle at a test track at Tonji University in Shanghai on June 21. Though the train-set did not run at top speed of 600 kph, but at a lower speed, various important features were tested. Prototype vehicles are approved for construction in 2021, and up to nine new maglev lines, totalling over 1,000 km (600 miles), are planned for the future.

Equally impressive, China’s plan to double its existing 35,000 km of high-speed rail already in operation, to 70,000 km by 2035, shows how a Confucian/Hamiltonian economy actually works. Based on estimates by the Lange Steel Information Research Center in Beijing, reported by the Wall Street Journal, China would have spent $180 billion for 35 approved railway projects in 2019, most of them high-speed rail, launching the next phase of HSR development.

In the first half of 2020, according to the Aug. 13 *China Daily), China invested $207 billion in combined railway, highway, waterway and civil aviation infrastructure, of which $46.9 billion was in railways. China’s transportation infrastructure investment alone, is 5-10 times that of every country on Earth. Featured in China’s railway investment is a new, 1700 km high-speed rail system between Chengdu, Sichuan and Lhasa, Tibet; high-speed rail in landlocked Shaanxi Province, etc.

China finances the rail and other critical infrastructure, through two methods of directed credit: China’s four largest state-owned commercial banks—the Industrial & Commercial Bank of China, the Bank of China, the Agricultural Bank of China, and the China Construction Bank—make ample loans directly to the China Railway company, the China Railway Rolling Stock Corporation (CRRC), which builds the rail equipment, etc. This is overseen by China’s three “policy banks.”

Second, the national government and local governments purchase bonds issued by China Railway Corporation, CRRC, and so forth.

China has announced its new rail construction program. The government plans to build 200,000 km of rail by 2035, about 70,000 of which will be high-speed rail. All cities with a population of 200,000 or more will be connected by rail, and all cities with 500,000 people or more will be connected by high-speed rail. China is also working on the next generation maglev train that could travel at speeds of 600 kph.

Pause for a moment from your daily activity. Let your imagination look into the future, and ponder what the nations of Africa would look like if, all cities with 200,000 people or more were connected by railroads. The topology of the continent would be different. China has proved it can be done. It is not a matter of Africa following the China model. Rather, it is comprehending the scientific principles of Alexander Hamilton’s economic system. Read my earlier posts: Alexander Hamilton’s Credit System Is Necessary for Africa’s Development and Nations Must Study Alexander Hamilton’s Principles of Political Economy

 

Click to access 45-54_4726.pdf

In his article below, William Jones provide an insightful analysis of the forces behind the anti-China mantra, rampant in the Trump administration.

As the ‘Five Eyes’ gear up to confront China, can anyone say that the British Empire is a thing of the past?

“A recent article published in the China Economic Diplomacy Watch pointed to the “Five Eyes” – the U.S., UK, Australia, Canada and New Zealand – as the key rallying group for Pompeo’s call for a containment policy toward China. The article has indicated a crucial element in the danger the world is facing. The unifying factor in this grouping is, firstly, that the “Five Eyes” are all English-speaking countries, and secondly, that they all at one time or the other belonged to the British Empire.”

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

President Buhari and China Collaborate to Build Needed Railroads in Nigeria

July 28, 2020

Nigeria, and the whole of Africa desperately require electrical power and high-speed rail lines to become industrialized economically sovereign nations. Congratulations to President Buhari and China.

Map from Lagos, Nigeria to Maradi, Niger

 

Track Laying of Nigeria`s Lagos- Ibadan Standard Gauge Railway Completed.

Hunger Stalks Africa: Nations Should be Food Self-Sufficient

Desert Locust invade Ethiopia (Courtesy TESFANEWS)

February 27, 2020

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

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

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

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

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

Read: UN Joint Statement on Locust in East Africa

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

 

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

Southern Africa

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

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

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

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

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

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

Hunger Can Be Eliminated

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

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

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

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

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

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

Read: Zimbabwe is Facing Starvation

Read my article below from March 22, 2017 

Famine in Africa: More Than Humanitarian Aid Required

 

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

January 5, 2019

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

NEWS

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

By Max Bearak
December 30, 2019

Excerpts:

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

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

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

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

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

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

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

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

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

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

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

Read the full article

Africa and China Cooperate on Development and Eliminating Poverty

Minister in the Presidency Jackson Mthembu

November 8, 2019

Cabinet applauds Chinese investment push for attracting R116bn

31st October 2019 BY: AFRICAN NEWS AGENCY

The South African government on Thursday applauded the growing trade and economic relations with the People’s Republic of China, which has led to at least 88 Chinese companies investing massively in the country’s economy.

Addressing media in Cape Town on the outcomes of a Cabinet meeting held on Wednesday, Minister in the Presidency Jackson Mthembu said the growing two-way trade between Beijing and Pretoria has led to Chinese companies investing a capital expenditure of R116-billion from 2003…

Read: South Africa Cabinet Applauds Chinese Investment

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China’s capacity building support wins acclaim in Ethiopia

ADDIS ABABA, Nov. 4 (Xinhua) — Ethiopia on Monday commended China’s support to the East African country’s capacity development endeavors as the two countries set to mark 50 years anniversary of the establishment of diplomatic relations next year.

Tilahun Sarka, Director General of Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR), stressed the vital importance of China’s capacity development support at an event on Monday that marks the start of railway operations training for 47 Ethiopian train conductors.

Noting ongoing knowledge transfer activities that are jointly implemented by ERD, the Chinese government and the consortium of Chinese companies, Sarka also urged the new batch of trainees to effectively study train operations along with Chinese experts so as to realize the Ethiopian government’s ambition in building the East African country’s capacity in railway technology…

ReadChina’s capacity building support wins acclaim in Ethiopia

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President Xi Jinping Addressing China International Import Expo:  The Common Good of Humanity and Eliminating Poverty

Speaking at the opening ceremony of the Second China International Import Expo, President Xi Jinping discussed the continuing process of “reform and opening up,” but focused his remarks on an appeal for the world to come together for the common good.

“Of the problems confronting the world economy, none can be resolved by a single country alone. We must all put the common good of humanity first rather than place one’s own interest above the common interest of all. We must have a more open mindset and take more open steps, and work together to make the pie of the global market even bigger….

“All problems could be settled in the spirit of equality, mutual understanding and accommodation. We need to promote development through opening-up and deepen exchanges and cooperation among us. We need to join hands with each other instead of letting go of each others hands. We need to tear down walls, not to erect walls.”

“China’s development, viewed through the lens of history, is an integral part of the lofty cause of human progress. China will reach out its arms and offer countries in the world more opportunities of market, investment and growth. Together, we can achieve development for all. The Chinese civilization has always valued peace under heaven and harmony among nations. Let us all work in that spirit and contribute to an open global economy and to a community with a shared future for mankind.”

President Xi Jinping delivered his keynote address “in front of a countdown screen for winning the country’s battle against poverty,” Xinhua reported. China has so far lifted some 850 million people out of poverty, and intends to do the same with the remaining 20 million by the end of 2020. Xinhua went on to report that “Xi said China is ready to share its poverty relief experience with other countries and jointly build a community with a shared future for humanity featuring common development and the elimination of poverty.”

Read my recent post: CGTN: China Reaches New Stage of Development With CIIE

CGTN: China Reaches New Stage of Development With CIIE

CGTN, China’s media giant published my article on the second China International Import Expo-CIIE, on the opening day of the conference in Shanghai.

CGTN

China reaches new stage of development with CIIE

by Lawrence Freeman

November 5, 2019

Editor’s Note: Lawrence Freeman is a political-economic analyst for Africa with 30 years of experience in Africa promoting infrastructure development policies. The article reflects the author’s opinions, and not necessarily the views of CGTN.

China’s Belt and Road Initiative (BRI) introduced by President Xi Jinping in 2013 is changing the world economy. China has signed cooperation documents on the BRI with 136 countries and 30 international organizations as of the end of July. Four years later, in May 2017, President Xi personally announced the creation of the China International Import Expo (CIIE) that took place in November 2018.

The global BRI, which now involves the majority of nations in the world, is creating new infrastructure platforms to stimulate economic growth. China’s second CIIE will again be held in Shanghai from November 5 to 10, 2019. Although the CIIE is focused on attracting imports to China’s large domestic market, it complements the BRI, demonstrating China’s emergence as an export-import engine promoting global development.

Read: China Reaches New Stage of Development With CIIE

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

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

November 2, 2019

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

Stunning Progress

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

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

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

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

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

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

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NEWS October 28, 2019

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

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

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

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

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

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

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

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

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

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

 

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

The Chinese-African built railroad from Addis-Ababa to Djibouti has been a success, as I knew it would. Inaugurated in October 2016, it has  allowed Ethiopia to effectively overcome being a landlocked nation. Railroads increase productivity, create growth, build cities, and establish new manufacturing-agricultural centers. Africa will be transformed-industrialized when it is able to generate hundreds of thousands of megawatts of electricity and build tens of thousands of kilometers of rail lines connecting major capitals, cities, and ports across the continent. Ethiopia has been a leader in economic growth by investing in vitally needed infrastructure, such as the Grand Ethiopian Renaissance Dam-GERD, to begin operation in late 2020.

Railroads across Ethiopia will increase its import and export capability.

Roundup: Ethiopia-Djibouti railway adds impetus to Ethiopia’s agricultural economy

ADDIS ABABA, Oct. 18 (Xinhua) — The Chinese-built Ethiopia-Djibouti railway has won acclaim for facilitating landlocked Ethiopia’s import-export necessities.

For the past more than one year, it has transported much-needed agricultural inputs to Ethiopia’s agriculture-dominated economy.

Tilahun Sarka, Director-General of Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR), said in a recent interview with Xinhua that the 752 km-long Africa’s first transnational electrified railway is leveraging the smooth transportation of Ethiopia’s major import and export commodities, mainly fertilizer and wheat.

“The railway is showing major progress in terms of facilitating Ethiopia’s basic import-export activities as it significantly reduced both the travel cost and time from landlocked Ethiopia to ports in its neighboring Djibouti,” Sarka told Xinhua.

The Ethiopia-Djibouti railway commenced its commercial operations for both passenger and freight services in January last year, eventually connecting landlocked Ethiopia to ports in the Red Sea nation of Djibouti.

The EDR director underscored the railway’s achievements over the past one and a half years, with particular emphasis on easing the pressure in transporting the much-needed imported agricultural and food security inputs, mainly fertilizer and wheat, from ports in Djibouti all the way to the Lebu Railway Station on the outskirts of the Ethiopian capital Addis Ababa.

Figures from ERD show that the Ethiopia-Djibouti railway has been able to carry more than 70,000 tons of fertilizer from the Djibouti port to Ethiopia over the past few months, as the East African country embarked with its main harvesting season since May.

“Fertilizer is a very important commodity to Ethiopia’s socio-economic well-being,” Sarka said, adding “It is by far considered as a major imported priority item by the Ethiopian government.”

Ethiopia – Africa’s second populous nation with about 109 million total population, according to the World Bank’s latest report – is an agrarian economy.

The UN Food and Agriculture Organization (FAO), which described Ethiopia as “one of the top-performing economies in Sub-Saharan Africa with an average growth rate of 11 percent over the last seven years,” dubbed the agriculture sector as “the mainstay of the Ethiopian economy, and exports almost entirely relies on agricultural commodities.”

Sarka, who dubbed fertilizer as a “political cargo,” also said that “a failure to import the much-needed fertilizer would adversely affect Ethiopia’s overall security, as far as igniting public uproar against the Ethiopian government.

Sarka also emphasized the joint Ethiopian government and EDR’s future plan that envisaged “to significantly boost the railway’s share in the transportation of fertilizer to the country.”

“Both the Ethiopian government and EDR give particular emphasis to the smooth transportation of fertilizers from the Djibouti port to Ethiopia, as well as the export of other export-bound agricultural commodities from Addis Ababa and other parts of Ethiopia to the port,” Sarka said.

Ethiopia imported a total of about 1.3 million tons of fertilizer during the just-concluded Ethiopian 2018-2019 fiscal year, according to figures from the Ethiopian government.

Built by two Chinese companies, the first 320-km of the project from Sebeta to Mieso was carried out by the China Railway Group Limited (CREC), while the remaining 423-km from Mieso to Djibouti port section was built by the China Civil Engineering Construction Corporation (CCECC).

The Ethiopia-Djibouti railway is presently managed by a consortium of Chinese companies – CREC and CCECC – for a period of six years undertaking railway operation and maintenance management activities.

According to Sarka, the six-year contract was given to the two Chinese firms mainly due to the shortage of electrified railway operation and management experience in the two involved countries.

Ethiopia-Djibouti Railway