China’s BRI Expanding Trade in Africa With Infrastructure Where the West Has Failed: Djibouti

March 28, 2019

Djibouti Port Director: The BRI Has Vastly Expanded All African Trade and Development

Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua on the sidelines of the Africa CEO Forum that “projects involving cooperation with China (such as the Ethiopia-Djibouti railway and the Doraleh Multi-Purpose Port and international free trade zone) are helping Djibouti promote trade in Africa as well as distribution across the East African region.” Hadi said that more than $40 billion in exports and imports has been recorded through Djibouti ports, “which couldn’t be achieved without developing proper infrastructure, such as sea ports and railway connections.” He went on: “I am expecting more movements of goods, infrastructure develop-ment from the second Belt and Road Forum for International Cooperation slated for April in Beijing, as well as stronger interconnection between Africa and the rest of the world,” speaking with Xinhua News.

Hadi also said that the accusations against China made by Western countries about letting some African countries fall into a debt trap due to cooperation on the BRI, are “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”

China Prevails Where Europe Has Failed Miserably

“The New Silk Road is the biggest economic venture in mankind’s history,” former chief economist of Bremen Landesbank Folker Hellmeyer told Sputnik, saying it would be quite absurd if Europe did not take a part in it.  “The West could have built infrastructure in these countries in the past 50 years. We have not done this. China is now filling this gap–and we are criticizing that. That is also power play to a certain extent. That is also why it meets resistance. But we are developing human capital and a sustainable growth potential which is enormous. We could have done it, but we haven’t done it. And that is why we should not accuse others.”

Hellmeyer also said that “what I hear here in Europe in terms of criticism, I rather see as a kind of front line politics serving the interests of the U.S.A.”

Newly Elected President of D.R. Congo Addresses Issue of Lake Chad Water Transfer

Newly elected President of the Democratic Republic of Congo (DRC) Félix Tshisekedi addressed the issue of water transfer to save Lake Chad at the just- concluded Africa CEO Forum in Kigali, Rwanda. Speaking at the concluding panel together with host, Rwanda President Paul Kagame, Tshisekedi said that someone is proposing to pump water from the Congo River to save Lake Chad, but there are better options than that.

“On the water issue, which is a battle expecting us in the future, we can think about solutions at the mouth [of the Congo River], before the meeting with the ocean waters. There is a way to catch that water from the river and send it through pipes to countries that need it, rather than doing what has been proposed at some point in Chad — i.e. diverting the course of the Ubangi River. This can have consequences, including on energy, because of the peat bog system that helps the CO2-absorbing natural lungs. We believe that there are other solutions and the D.R.C. is ready to offer them to its partners to build this integration which is so important for us.”
https://www.youtube.com/watch?v=1pKAsR0qhtQ

President Tshisekedi is right when he rejects foolish ideas such as pumping water from the Congo River or diverting the course of the Ubangi. However, he should know that “other solutions,” namely the Transaqua project, have already been approved by the countries of the Lake Chad Basin Commission (LCBC) at the February 2018 International Conference on Lake Chad in Abuja, Nigeria, which was attended by a representative of the D.R.C.. He also should drop the narrative of the peat bog system, created by the British to block the development of the Congo basin.

LCBC observers see the glass as half-full and emphasize the good news of the D.R.C. government addressing publicly the issue and expressing its readiness to help. Notably, this was the first time that a President of D.R. Congo and of Rwanda have appeared together in public. Rwanda President Kagame stressed this in his speech, explaining that Africa will move forward only if personal animosities are put aside. Kagame has recently strongly supported China’s Belt and Road Initiative and blasted the West for having failed in its Africa policies

 

China and Italy Challenging Old Geo-Political World Order

This signed article by Xi Jinping, President of the People’s Republic of China, was published March 20, in Corriere della Sera, a leading  Italian newspaper on the eve of his state visit to Italy. It is a beautiful expression of the potential alliance of “East and West.” The old geo-political order manipulated this so called division to maintain political domination. Hopefully, we are now embarking on a new era with the old-order is coming to an end. 

Chinese President, Xi Xinping, to arrive in Italy

East Meets West — A New Chapter of Sino-Italian Friendship

It is a great pleasure for me to pay a state visit to the Italian Republic at the invitation of President Sergio Mattarella in this blossoming season of spring. In 2011, I visited Rome on celebrations of the 150th anniversary of Italian unification and, in 2016, I had a stopover on Sardinia. I was deeply impressed by the way of life and industrial outlook of Italy that blend together the ancient and the modern, the classic and the novel. Now that I am about to set foot again on this beautiful country, it feels like I am to be among old friends, and get immersed in
their wonderful hospitality.

China and Italy are both stellar examples of Eastern and Western civilizations, and both have written splendid chapters in the history of human progress. Being the birthplace of ancient Roman civilization and the cradle of the Renaissance, Italy is known to the Chinese people for its imposing relic sites and masterpieces of great names in art and literature. Friendly ties between our two great civilizations go back a long way. As early as over 2,000 years ago, China and ancient Rome, though thousands of miles apart, were already connected by the Silk Road. During the Eastern Han Dynasty (AD 25-220), Chinese emissary Gan Ying was sent to search for “Da Qin”, the Chinese name of the Roman Empire at the time. Roman poet Virgil and geographer Pomponius Mela made many references to Seres, the land of silk. The famous explorer Marco Polo’s Travels roused the first wave of “China fever” among European countries. That pioneer of cultural exchanges between
East and West was followed by a long list of personages in search of friendship over the centuries.

In our own era, China-Italy relations, tracing the footsteps of our ancestors, are brimming with dynamism. The People’s Republic of China and the Italian Republic established diplomatic relations in 1970. In 2020, the two countries will celebrate the 50th anniversary of our relations. Through the past decades, our two countries have enjoyed mutual trust and close cooperation regardless of changes in the international landscape. Together, we have set a fine example of mutually beneficial relations between two countries that have different social systems,
cultural backgrounds and stages of development. The traditional friendship between us, stronger than ever, has become a strong pillar supporting the rapid and steady growth of our bilateral ties.

Sino-Italian friendship is rooted in our long history of exchanges. In the course of over two millennia, our two countries have embraced the principles of mutual respect, mutual learning, mutual trust and mutual understanding in our interactions, principles that underpin our long-lasting, ever-strong friendship. Confronted by the transformations and challenges of today’s world and informed by our deep appreciation of history, China and Italy both envision a new type of international relations that are built on mutual respect, fairness, justice and win-win cooperation, and a community with a shared future for all mankind.

Sino-Italian friendship is embedded in our deep strategic trust. Both countries’ leaderships approach our relations from a strategic and long-term perspective. Since the establishment of a comprehensive strategic partnership in 2004, our two countries, guided and driven by high-level exchanges, have given each other understanding and firm support on issues concerning our respective core interests and major concerns. Our strategic trust provides a firm underpinning for the long-term and steady growth of China-Italy relations.

Sino-Italian friendship is reflected in our multi-faceted cooperation. As key trading and investment partners for each other, China and Italy have deeply entwined interests. Two-way trade exceeded 50 billion U.S. dollars in 2018 and investment surpassed 20 billion dollars in accumulative terms. “Made in Italy” is a guarantee of quality, Italian fashion and furniture are immensely popular with Chinese consumers, and pizza and tiramisu are the love of many young Chinese. Every now and then, we hear stories about the success of Sino-Italian cooperation in satellite R&D and manned space exploration. Initiatives such as the China-Italy Science, Technology and Innovation Week, joint police patrols and football training, to name just a few, are applauded by people in both countries.

Sino-Italian friendship is carried forward through our intensive cultural exchanges. Chinese and Italians have a deep interest in each other’s cultures. A Chinese professor in his 70s spent 18 years translating Dante’s Divine Comedy, and after revising several drafts, completed this mammoth task before his final days. From Martino Martini, author of the first Chinese grammar book in Europe, to Giuliano Bertuccioli and Federico Masini who wrote Italy and China, many Italian Sinologists have built bridges between Europe and China and contributed to a
long-running boom of China studies on the Apennine Peninsula.

The well-known Italian writer Alberto Moravia once wrote, “Friendships are not chosen by chance, but according to the passions that dominate us.” In a world that faces profound changes of a kind unseen in a century, the onus is on us to bring China-Italy relations to a higher level and to jointly safeguard world peace, stability, development and prosperity. Through my upcoming visit, I hope to work with Italian leaders to map out the future of our relationship and move it into a new era.

China hopes to work with Italy to strengthen our comprehensive strategic partnership. Our two countries may plan more high-level exchanges and cooperation between our governments, parliaments, political parties and sub-national entities, strengthen policy communica-tion, enhance strategic trust and synergy, and continue to give understanding and support to each other on issues of core interests and major concerns, so as to consolidate the political foundation of our relations.

China hopes to work with Italy to advance Belt and Road cooperation. Our two countries may harness our historical and cultural bonds forged through the ancient Silk Road as well as our geographical locations to align connectivity cooperation under the Belt and Road Initiative with Italy’s plan to develop its northern ports and the Invest-Italia program, and jointly build the Belt and Road of the new era on sea, on land, in the air, in space and in the cultural domain.

China hopes to work with Italy to expand cooperation into new areas. China will open up further to the rest of the world, and share its market opportunities with Italy and other countries through the annual China International Import Expo and other avenues. Our two countries may fully tap our cooperation potential in ports, logistics, ship-building, transportation, energy, telecommunications, medicine and other fields, and encourage our companies to partner with each other in third markets for win-win cooperation.

China hopes to work with Italy to promote closer people-to-people ties. As countries with the largest number of UNESCO world heritage sites, China and Italy have plenty of cultural and tourism resources. We may encourage our world heritage sites to forge twinning relationships and our cultural institutions and individuals to organize premium relic and art exhibitions. We may also encourage joint production of films and TV programs, the teaching of each other’s languages, as well as more mutual travel and visits. Through these exchanges, we will make new contributions to the diversity of civilizations and mutual learning between different cultures.

China hopes to strengthen coordination with Italy in international affairs and multilateral organizations. China is ready to enhance communication and collaboration with Italy in the United Nations (UN), the G20, Asia-Europe Meeting and the World Trade Organization (WTO) on global governance, climate change, UN reform, WTO reform and other major issues. Working together, we will promote our shared interests, uphold multilateralism and free trade, and safeguard world peace, stability, development and prosperity.

Looking back at the last five decades, China-Italy relations have struck deep roots and borne rich fruits. Looking ahead, China-Italy cooperation will continue to flourish and prosper. The Chinese people look forward to working hand in hand with our friends in Italy to carry forward our blossoming relationship and imbue our friendship with more vitality and dynamism.

Despite Claims From the West: Report Reveals That China’s Africa Infrastructure Projects are Reducing Economic Inequalities

 

China’s New Silk Road/Belt Road Initiative is developing many parts of the world with infrastructure that are yielding positive economic results .

Chinese Investments in Developing Sector Decrease Inequality

December 12, 2018

A study done by the AidData institute at William and Mary College in Virginia showed that China’s investments in the developing sector between 2000 and 2014, unlike many western investments, reduce economic inequality in the targeted countries.

Financed by the UN, the Singapore Ministry of Education, the German Research Foundation, USAID, and several other foundations, the study collected data on Chinese projects in 138 countries, concluding: “We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between sub-national localities,” and “produce positive economic spillover that leads to a more equal distribution of economic activity.”

“Beijing has demonstrated that it is  both willing and able to address the unmet infrastructure financing needs of developing countries. These development projects—in particular, investments in highways, railways, roads, bridges, tunnels, and ports—could strengthen economic ties between rural and urban areas and thereby help to spread the benefits of economic growth to more remote and traditionally disadvantaged areas.”

“The findings from the study are encouraging: Chinese development projects—in particular, “connective infrastructure” projects like roads and bridges—are found to create a more equal distribution of economic activity within the provinces and districts where they were located.”

Read the article with a link to the report

 

 

The New Silk Can Create A New Global Paradigm

Excerpts from a presentation by Schiller Institute founder and President Helga Zepp-LaRouche in Washington, D.C. on Oct. 17. It was titled, “The New Silk Road and the End of Colonialism: A New Shared Future for Humanity,

…Now, ever since Xi Jinping announced the New Silk Road in Kazakhstan in 2013, about 100 countries have joined this effort. There have been investments in all of these countries, 12 times the size of the Marshall Plan, and all based on “win-win” cooperation. An enormous amount of infrastructure corridors, industrial parks, power plants; various agricultural projects have been built. And in the recent time, you have the building of a completely new system of international relations based on the respect for the sovereignty, and respect for non-interference in  the affairs of the other country, respect for the perspective of a different social system, and this has created a different dynamic in the world.  This has, for example, recently led to the integration of the Shanghai Cooperation organization(SCO) with the Belt and Road Initiative.  There is a new formation of South-South relations which became very apparent at the recent annual BRICS meeting in Johannesburg, where you had the formation of Global South, which was practically all the organizations from the developing sector, the G77, the Organization of Islamic Countries, Mercosur, the African Union, many regional organizations.  And then, subsequently, you had the very big Africa-China summit, FOCAC [Forum on China Africa Cooperation] in Beijing at the beginning of September, where you had about 48 presidents and 5 heads of state of governments participating from Africa, announcing a new age in the friendship and historic relationship between China and the African continent

Now, Putin at the BRICS summit, had already promised that Russia would light up Africa in providing electricity, not from oil and gas, but through helping African nations to build nuclear power.  And Xi Jinping at the same meeting, had said that Africa, of all the places in the world, has the biggest development potential in the world.

The New Silk Road Spirit, which has captured this dynamic is transforming geopolitical conflicts in many parts of the world. For example, the very successful developments around North and South Korea, who are now fully on the way to possibly announce a peace treaty before the end of the year, going in the direction of unification. This is definitely one of the great successes of President Trump, who at the Singapore summit where he met with Kim Jong-un, is promising to help the make North Korea a prosperous country if  denuclearization continues to proceed. And China has promised to integrate the Koreas into the Belt and Road Initiative.  Russia has promised to help the economic prosperity in North Korea. This is a model, where you can see how this new spirit is helping to transform previous crisis situations into real miracles.

A similar thing is happening in the Horn of Africa, where as a result of the construction of the fast railway between Djibouti and Addis Ababa, you have now Somalia, Djibouti, Eritrea and Ethiopia developing new diplomatic relations and cooperation which was unthinkable a very short period before.

Now, the biggest breakthrough in this development was the signing of a MOU-Memorandum of Understanding between the Italian government and the Lake Chad Basin Commission on the realization of the Transaqua project. Transaqua is a project which the LaRouche organization has been fighting for, for over 30 years, and the fact that it is now agreed upon between China, Italy and six African nations to build is a game-changer for the entire African continent. Transaqua is the idea that you refill Lake Chad, which is now down to about 10% of its previous volume, bringing 3-4% of the water from the tributaries of Congo River, from about 500 meters high, through a system of canals into Lake Chad.  And this will provide an inland waterway for participating countries: It will provide hydro-power, it will provide huge amounts of water for irrigation, it will fill up Lake Chad, and it will still provide for a large areas in the Sahel zone to be irrigated: And that way you can really improve the life about 40 million people who are living there.

This is a tremendous breakthrough, and I think this is really the kind of project which can happen around the world everywhere. Now, in the context of the New Silk Road, there have been also an enormous amount of strategic realignment of countries which previously, for historical reasons and past wars, were at complete odds.  For example, now there is a new cooperation between Japan and China, where both of them said that there is the possibility of joint projects in Africa.  Prime Minister Shinzo Abe, just two days ago, said that Japan and China can cooperate in third countries and the pivot of it could be Thailand.  And as we have been fighting for another great project, also for more than 30 years, the Kra Canal, there has been recently a conference putting that back on the agenda:  And that would be a game-changer for the entire transport route in Southeast Asia.

A wonderful example of cooperation with the New Silk Road is Austria, where Chancellor Sebastian Kurz will conduct a big forum, a Europe-Africa Forum, before the end of the year, because Austria has the presidency of the European Union for this present half-year; and many institutions in Austria and Vienna are completely enthusiastic.  For example, the head of the Vienna Chamber of Commerce [WKW] is pushing for the complete integration of Austria into the New Silk Road.  And he said the New Silk Road is very easily explained:  It is our economic future.  The Mayor of the city of Linz called the connection of Austria to China the “Trade Route of Creativity.”

Also the Italian government, the new government, which is being attacked by the mainstream media practically every day, is practically going for a full strategic alliance with China. Various cabinet ministers, Michele Geraci and Giovanni Tria were just on trips to China making huge deals, inviting China to rebuild the Italian infrastructure.  And the substitute commerce minister, Paolo Savona, who made a wonderful speech in the Italian Chamber of Deputies, calling for the new economic plan of Italy is Franklin D. Roosevelt’s New Deal, and he advocated the cooperation of China and Italy in Africa.  And in the Transaqua memorandum of understanding, there was previously  memorandum of understanding between China and Italy to engage in this great project:  So this can be a model of any Western country….

There is a new concept of great power relations, developed by China, and proposed to the United States.  The {Global Times}, a government-related newspaper recently, in light of the tensions between China and the United States, asked the question:  What should the relations be between China and the United States in 30, 40, 50 years from now, or even towards the end of the century?…

And I would like to remind you of what Friedrich Schiller, [a great German poet] said, in “Why We Would Study Universal History,”- and I’m saying it now in my own words:  We should look at the long chain of generations before us, who gave us the tremendous heritage. And should it not be our proud and passionate desire to connect our ephemeral life to that long chain of human generations, and contribute with our own life, that soon that generation will be living a better life as a result of what we have done?…

 

 

 

 

 

 

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

BRICS Summit: Part of a New Paradigm for the World

Below is an interesting analysis on the role that the BRICS are playing in creating a new paradigm of international relations independent from British “geopolitical” control. This is especially important for Africa, which will soon be the most populated continent on the planet. (excerpts below)

“BRICS Countries at the Center of a New, Just World Economic Order!”

by Helga Zepp-LaRouch

July 28, 2018

“While the West is trying in vain to uphold the old paradigm of the neo-liberal economic system, more and more nations are working with the BRICS, the Shanghai Cooperation Organization (SCO), and other regional  organizations under the rubric of the Belt and Road Initiative, on the basis of win-win cooperation, and demonstrating that the world can be organized in a much more human fashion than that which we have seen from the European Union with its barbaric refugee policy.

BRICS Plus Summit 2018, South Africa

“Chinese President Xi Jinping emphasized, in his July 25 speech to the BRICS Business Forum, which included Indonesia, Turkey, Argentina, Jamaica, Egypt and many African leaders—that “The international community has reached a new crossroads” and must build a whole new platform for international relations. With an inspiring cultural optimism–lost in Europe, Xi emphasized the crucial   role of scientific progress as the engine of economic construction: “Science and technology as the primary productive forces generate an inexhaustible power that drives the advancement of human civilization.” Humanity has made huge leaps from agricultural to industrial civilization, and is now facing a new round of scientific and technological revolutions and industrial transformations, and if countries seize the opportunities these offer, they could enjoy dynamic economic growth and a better life for their people.

Xi said Africa has “more developing countries than any other continent,” and therefore has “more development potential than any other region in the world.” The BRICS should therefore “strengthen cooperation with Africa, support its development, and make BRICS-Africa  cooperation a model for South-South cooperation.” 

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Interview With Lawrence Freeman: The Time is Now For TRANSAQUA-to Save Lake Chad and Transform Africa

Transaqua is an inter-basin water project to transfer a sufficient flow of water from the tributaries of the Congo River to restore Lake Chad from its current diminutive size of 1500-2500 square kilometers to its 1963 level of 25,000 square kilometers. The Transaqua design is to create a navigable 2,400-kilometer canal that by gravity will deliver between 50 to 100 billion cubic meters of water to the Chari River in the Central African Republic, which is the primary tributary to Lake Chad. The channel will be created through a series of dams of the tributaries to the right of the Congo River.

Transaqua, the brainchild of Dr. Marcello Vichi of the Italian Bonifica engineering firm, was first proposed almost 40 years ago. Its unique feature lies beyond refurbishing Lake Chad, in restoring economic growth to the poor people living in the Lake Chad Basin This mega-project will create a super economic zone of trade and commerce between all the nations of the Congo river and Lake Chad Basins; potentially affecting one third of the entire African continent. In addition to the generation of desperately needed hydro-electric power, new roads will be built, new manufacturing-agricultural centers will be created, new fisheries will develop, and food production will expand with an additional 40,000 hectares of irrigated land.” Source: Lawrence Freeman

Africanagenda: Hello Mr Freeman, thank you for joining us today to discuss the Transaqua Project.

You are very well informed on this subject and since 2014 have been the Vice Chairman of the Lake Chad Scientific Committee. Earlier this year you spoke in Abuja, Nigeria at the International Conference on Saving Lake Chad. Could you tell us about the sense of optimism that this project is bringing to Africans? I believe this was a dream of Ghana`s President Kwame Nkrumah, that the Sahara Desert could bloom.

 

Heads of State of the Lake Chad Basin nations sign Abuja accord

L. Freeman :The endorsement of the Transaqua inter-basin water transfer project at the International Conference to Save Lake Chad held in Abuja from February 26-28 was a milestone for the entire African continent. Nigerian President, Muhammadu Buhari deserves credit for initiating this conference and his support over many years to recharge Lake Chad. This project would be the largest infrastructure project in Africa connecting a dozen African nations in a super economic zone of development. The Transaqua proposal has been known for several decades, but it was only at the Abuja conference that the Heads of States of the nations of the Lake Chad Basin Commission- (LCBC) officially decided to explore the feasibility of the inter-basin water transfer project. As a result of the conference, approximately $3.6 million will be allocated for the first ever feasibility study of Transaqua to be conducted jointly by PowerChina and Bonifica.

As the news of the success of this conference held in Africa spreads, it will create a wave of optimism across the continent. One reason is that African leaders are thinking big with a vision for the future, having taken it upon themselves to discuss and support such a transformative infrastructure project.

The Sahara Desert, the largest in the world-the size of the continental United States- can bloom if it has water. The loss of lake Chad, the largest body of water in the desert would be a catastrophe not just for those living in the Lake Chad Basin, but for the entire continent, and implicitly the world. Therefore, I am optimistic that the Abuja conference will be a turning point for Africa.

Africanagenda: Transaqua is unique.It is it the largest engineering project ever proposed and as the largest infrastructure project in the world it has the potential to radically transform the economy of the continent`s interior, not just in terms of agriculture but through industry. Could you explain to our readers how transformative Transaqua will be?

L.Freeman: The land area of all the nations that would be affected by Transaqua equals approximately one third of the African continent. The inter-basin water transfer project would create a navigable canal that would facilitate a new level of trade and commerce between the nations of the two basins: Congo River; and Lake Chad. Resulting in an increase in farming, manufacturing, fishing, electrical power, roads, and other related infrastructure.

Thanks in part to China’s New Silk road, African nations are presently engaged in the most intense level of development of infrastructure, most especially in new railways that potentially could cross the continent from Djibouti to Dakar. Plus progress is being made on several East-West highways that would also connect to South-North routes crossing the Sahara Desert.

image: The Schiller Institute

The combined effect of the completion of these infrastructure projects would create an economic renaissance for Africa that portends the elimination of poverty and hunger for hundreds of millions of Africans.

If you look at a map of Africa, you will see that Transaqua will travel northwest from the southeast corner of the Democratic Republic of the Congo through the Central African Republic, thus intersecting the East to West network of new railways and highways. The combined effect of the completion of these infrastructure projects would create an economic renaissance for Africa that portends the elimination of poverty and hunger for hundreds of millions of Africans.

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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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Chinese Engagement, Investment and Trade With Africa

China’s New Silk Road–Belt and Road Imitative is providing indispensable investment and construction of infrastructure in Africa. Infrastructure development in energy, railways, roads, airports, and water management are critical for African nations to develop their agricultural and manufacturing sectors. Below are excerpts from the report: “The Belt and Road” in Africa 

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“China’s close engagement with Africa continued through the succeeding decade and accelerated toward the end of the 1990s and into the 2000s. By 2008, China’s Export-Import Bank was funding more than 300 projects in 36 countries across Africa. The value of bilateral trade increased from US$6.5 billion in 1999 to US$73.3 billion in 2007 (Figure 1). According to the China-Africa Research Institute at Johns Hopkins University, by 2008 it exceeded US$100 billion, and it peaked at more than US$200 million in 2014, before slipping back in 2015 and 2016 in response to poorer global economic conditions. In 2009, China overtook the United States as Africa’s major trading partner. The largest African exporter to China from Africa in 2015 was South Africa, followed by Angola and Sudan. In the same year, South Africa was the largest African market for Chinese goods, followed by Nigeria and then Egypt.”

“In 2015, China investments into African infrastructure projects were three times the sum of those of France, Japan, Germany and India combined (Figure 7). The bulk of Chinese funding has been in the form of government-to-government loans, used then by the borrowing African governments either to develop the project itself, or to leverage it with private capital through a public-private partnership (PPP). As of the date of writing (late 2017), at least 76 PPP projects appear to be in the pipeline in African countries associated with BRI. Not all have values ascribed, but the 14 that do imply a cumulative investment of nearly US$6 billion for them alone. Sixty percent of these projects are in the transport sector.”

 

Zimbabwe Joins China’s Silk Road

“Zimbabwe embraces ample cooperation opportunities following Mnangagwa’s trip to China”

Source: Xinhua   2018-04-10

By Zhang Yuliang, Gretinah Machingura

HARARE, April 9 (Xinhua) — Zimbabwean President Emmerson Mnangagwa concluded his five-day state visit to China last Friday, giving substantial impetus to future cooperation between the two nations.

The trip was Mnangagwa’s first outside Africa since taking over from former leader Robert Mugabe last November, and resulted in the two countries deepening political and economic ties.

During the visit, Chinese President Xi Jinping and his counterpart Mnangagwa agreed to establish comprehensive strategic partnership of cooperation between the two countries.

Xi said the Zimbabwean people have started a new journey in building their country since Mnangagwa took office last November.

“As a good friend, partner and brother of Zimbabwe, we are glad to see that,” Xi told Mnangagwa.

When meeting with Mnangagwa, Chinese Premier Li Keqiang said Zimbabwe is an important partner of China in Africa and China will continue to uphold the principles of sincerity, friendship and equality, and bring new vitality to the traditional friendship between China and Zimbabwe.

China is ready to work with Zimbabwe to give full play to the complementary advantages of both economies, innovate cooperation methods and deepen cooperation in infrastructure construction, agriculture, production capacity and human resources, said Premier Li.

On the economic front, China and Zimbabwe managed to strike deals worth billions of U.S. dollars for implementation of various infrastructure development projects in energy, water, transport, tourism and telecommunications, among other sectors, Chinese economic and commercial counsellor to Zimbabwe Li Yaohui told Xinhua.

The two countries also signed numerous agreements to advance economic cooperation, skills development, education and other facets of the economy, the counsellor said.

Among major deals Zimbabwe finalized with China is the expansion of Hwange Thermal Power Station by 600 megawatts by China’s Sinohydro.

Funds for the 1 billion U.S. dollars project, which has been in pipeline for some years now, are expected to be released immediately, the counsellor said.

With this latest deal, China is emerging as the top investor in Zimbabwe’s energy sector after the government, two weeks ago, commissioned another Chinese-built-and-funded power expansion project at Kariba South Hydro Power Station.

The expansion project, which added two 150-megawatt units to the power plant, was also done by Sinohydro at a cost of 533 million dollars.

The expansion lifted Kariba’s installed capacity from 750 MW to 1,050 MW, making it currently the country’s biggest power plant.

The completion of Kariba expansion and implementation of the vast Hwange Thermal Power project will greatly boost Zimbabwe’s power supplies and help the country, which faces perennial power shortages, be energy self-sufficient.

Li Yaohui said that other mega projects sealed by Mnangagwa in China are for the expansion of Harare Robert Mugabe International Airport, construction of a new parliament building, network expansion for Zimbabwe state-owned mobile firm NetOne, refurbishment of Harare’s water treatment plant and construction of a pharmaceutical warehouse, among others.

The two countries also signed a tourism memorandum of understanding and an economic and technological cooperation agreement.

During his stay in China, Mnangagwa also visited Anhui and Zhejiang and met with the political leadership and business communities from the two provinces, Li Yaohui said.

Mnangagwa, who was accompanied by several cabinet ministers and business leaders, said a lot of achievements were made from the state visit. He described the China trip as historic and a resounding success.

“Today, I conclude my first historic visit which will help bring further crucial momentum to our economy. We had many fruitful discussions with political and business leaders in China, including President Xi Jinping, and secured a host of deals which will make a real difference to the lives of Zimbabweans,” he said in a Facebook post at the end of his visit last Friday.

“They will focus on road, rail, air and dam construction projects…” he said.

In its editorial comment Monday, the state-controlled Herald newspaper said Zimbabwe-China ties had hit a new high following Mnangagwa’s visit.

“Major milestones were reached during President Mnangagwa’s meeting with Chinese officials. What is most important is that relations between Zimbabwe and China were elevated to comprehensive strategic status, a move that is set to change the bilateral cooperation between the two nations,” the newspaper said.

Another major milestone that came out of the Beijing visit was the incorporation of Zimbabwe into the Belt and Road Initiative where Zimbabwe stands to reap huge benefits by being part of the select group of countries that China is dealing with under the initiative, the paper added.

“Zimbabweans should celebrate President Emmerson Mnangagwa for convincing the Chinese to make the country a part of such a huge investment that is set to change the face of the world,” the newspaper said.

The trip bolstered Zimbabwe’s efforts to attract foreign investment to revitalize the economy that has been in the doldrums for many years.

Zimbabwe Opposition Campaigns with Anti-China Line

Zimbabwean opposition leader Nelson Chamisa is campaigning for the upcoming elections on an anti-Chinese line. This is not surprising, since on May 8 he will be the featured guest at Her Majesty’s Chatham House/Royal Institute of International Affairs in London. Chamisa tried to say that the Queen personally had invited him to London, which was immediately denied by the British Embassy in Harare.

Chamisa, leader of the opposition Movement for Democratic Change, is quoted in the {Zimbabwe Mail} as saying: “We have seen the deals by Ngwenya [President Emmerson Mnangagwa] and with the Chinese and others. They are busy asset stripping and looting our resources, so I said, beginning September when I get into office, I will ask the Chinese to come in a queue, and interrogate their deals. We will send away all those with bad deals for Zimbabwe. We want genuine investment which will bring benefit for the people, not for the leadership only.”

The {Mail}, however, also quoted China-Africa analyst Cobus van Staden of the South African Institute of international Affairs telling Voice of America: “We’ve seen that kind of populist, anti-Chinese agitation in other African countries, too. The most famous one was in Zambia a few years ago, when [the] late President Michael Sata was campaigning under a similar kind of nationalist, anti-Chinese kind of message. But then, interestingly, after he came to power, that changed very quickly.

Because I think once one is power and one faces the reality of the investment environment and the relative influence of China in the whole world, then it becomes very difficult. That’s kind of campaign talk, I think, more than governing talk.”