Can IGAD Achieve Peace Without Economic Development?

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

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By Mekki ELMOGRABI

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

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

Read: IGAD and Peace Trap!

Russia Assists Uganda With Nuclear Energy. China Land Grabbing Is A Myth

(iStock)
{Development of nuclear energy in Africa is not only essential to provide the hundreds of thousands of additional megawatts of power required for Africa’s peace and economic growth. It also elevates African nations to higher scientific platform of infrastructure, which will raise the level of productivity of the entire economy.}

Russia to help Uganda develop nuclear energy

September 18, 2019

Russia’s state-owned companies have been at a key part of the strategy to bolster Moscow’s presence on the continent.

Ugandan President Yoweri Museveni’s is seeking to use his country’s uranium deposits to develop nuclear power.

The deal “lays the foundation for specific cooperation between Russia and Uganda” in the field of nuclear energy, Rosatom said.
It also paves the way for working together in “the creation of nuclear energy infrastructure, the production of radioisotopes for industry, medicine, agriculture, as well as the training of personnel”.Rosatom said the parties had agreed to organise visits by specialists in the “near future”.Moscow first signed a memorandum of understanding with Kampala in this area in 2017, ahead of Beijing, which signed a similar agreement in 2018.

Russia To Help Uganda Develop Nuclear Energy

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French Agronomist Proves that China’s “Land Grab” in Africa Is a Myth

PARIS, Sept. 16, 2019 – After the nomination of Chinese biologist, Vice Minister of Agriculture and Rural Affairs of China Qu Dongyu, as Director-General of the UN Food and Agriculture Organization (FAO) on June 23, rumors went wild against the alleged Chinese plot to “take over” African food production.

French agronomist Jean-Jacques Gabas, a scientist, who traveled over Africa to investigate the situation, offered some clarity to {Le Monde} on September 13.

In effect, China became the head of the Organization for Industrial Development, the International Union for Tele-communications, the International Organization of Civil Aviation and, between 2016 and 2018, of Interpol.

“As a matter of fact, OECD financing of agriculture has been very poor over the last 30 years. It fell increasingly and led to the 2008 food crisis…. When you discuss the Chinese strategy with African agriculture ministers, they tell you: ‘Stop giving advice and creating fear. What did you finance over the last 30 years? Very little, given the need.’ And they aren’t mistaken,” he pointed out.

Asked if China wants to develop its imports of African agriculture products, Gabas, debunking what so many people fear.

“No. Since the end of the 2000, Beijing certainly is the first trading partner of Sub-Saharan Africa, but the share of agriculture in African exports to China represents only 2-3% of trade volume, almost nothing. China’s investments in African rice and sugar production go to regional African markets. Of course, Africa has 1.4 billion people to feed, which makes it very dependent on food imports. However, China knows that in world economic crises, notably in case of a food crisis in Africa, prices will be shaky and products will become scarce, impacting China’s domestic cereal production. China also wants to stabilize the African continent’s food production. What it imports from Africa are rubber, manioc for food packaging, and, depending on the years, peanuts, cotton, and wood. South African vineyards are also bought for export purposes. All of this implies very low volumes, far less than African food exports to Europe or those of mining products and fossil fuels to Africa….

Chinese companies are present and profit from market and investment opportunities, but without a marked strategy to ‘feed China.'”

Asked about the allegation of Chinese “land grabbing,” Gabas answers: “Respecting Chinese land acquisitions, viable statistics tell us that China is not number 1 and comes in only as 8th or 9th. Be it land for farming, mining, forestry, or rubber production, the largest investors remain OECD countries (U.S.A., U.K., and France), national companies or Gulf States such as Saudi Arabia. One observes that whenever the Chinese buy land and a conflict arises about the land or with part of the population, they retreat or change the nature of the utilization. … Chinese land grabbing is a myth.”

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Italian economist Antonino Galloni discusses principles of economic growth for developing nations.

Speaking from Xi’an, China on Sept. 12

“Africa and countries with an higher rate of demographic growth and lower GDP growth should promote a higher domestic growth,” Galloni said, by “improving their domestic industries, substitute imports, upgrading infrastructure, building efficient connections with Europe and the rest of the world.” Those countries should “export less raw materials and semi-finished products, create a productive capacity to fulfill the domestic demand and cut down low-wage exports.”

Galloni recalled that the first economist who understood this was the Italian Antonio Serra, at the end of 16th century, who demonstrated to the Spanish Viceroy in Naples that national wealth was not achieved through gold or silver, through taxation or selling raw materials, but “by improving the industriousness of citizens, mainly by education.”

Galloni also pushed the Transaqua project to bring water to Sub- Saharan Africa.

“Recently industrialized countries, like China, have correctly chosen to increase domestic demand instead of exports.” Investments in infrastructure, higher wages and employment are compatible with the increase of profits, but not with the “increase of the rate of profit,” which is typical of stock markets and financial investments.

 

Ebola Crisis: How Many Africans Must Die Before the World Acts?

FILE – In this Sunday, Sept 9, 2018 file photo, a health worker sprays disinfectant on his colleague after working at an Ebola treatment center in Beni, eastern Congo. Top Red Cross official Emanuele Capobianco said Friday April 12, 2019, that he’s “more concerned than I have ever been” about the possible regional spread of the Ebola virus in Congo after a recent spike in cases. (AP Photo/Al-hadji Kudra Maliro, File)

Today is the one-year anniversary second eruption of Ebola in sub-Saharan Africa in five years. On August 1, 2018, an outbreak of Ebola was declared in the North Kivu province of the Democratic Republic of the Congo (DRC), when four cases of Ebola in town of Mangina were verified. After 426 cases of Ebola were confirmed, the World Health Organization-(WHO) on November 29, declared this to be the second largest outbreak of Ebola in history. The largest outbreak was from 2014-2016 in West Africa that caused 11,310 deaths.  By May 3, of this year over 1,000 human beings had perished from Ebola. As of June 4, the number of cases exceeded 2,000. Yet, it wasn’t until July 17, 2019, after more than 1600 people had died from this deadly disease that the WHO declared a “public health emergency of international concern”. This declaration by the WHO is far short of what is required to combat this killer disease. To date, there are 2,593 infected with Ebola and more than 1,770 have died, according to the The New Humanitarian on line journal.

The fear of Ebola spreading to the city of Goma, a transportation center with a population of 2 million, bordering Rwanda, was realized on July 14, with Goma’s first confirmed case. July 30, health officials confirmed a second case, unrelated to the first. However, on August 1, two additional cases were discovered, of relatives to the second deceased, thus establishing the transmission of Ebola in Goma itself, as reported by AP. Thursday, BBC News reported that the border between Goma and its neighbor Rwandan city, Gisenyi, was closed in response.  On June 11, Uganda reported the first of two deaths cause by Ebola.

The WHO should declare a full international health emergency, not “a matter of concern.” Although the WHO does not have the resources to fully combat this latest outbreak of Ebola, such a declaration would sound the alarm. This could mobilize international institutions like the World Bank, United Nations et al, along with forcing western nations to act.  However, for such an emergency declaration to be issued more Africans must die to meet the criteria of at least 20 deaths in several countries. For now, the world is watching, as Ebola murders more and more Africans. The government of the DRC should also be making appeals to the rest of the world, including Russia and China, who have indicated their willingness to help, if approached officially by the DRC.  A full scale emergency mobilization could potentially provide the impetus to expand the healthcare capacity of sub-Saharan Africa, which is urgently needed.

There is no time to waste. The population of the DRC exceeds 70 million, and it has one of the weakest infrastructure systems in the world. Is Africa, and the rest of the world willing to gamble with thousands, if not tens of thousands or more, lives?

The article below, by Debra Freeman, a public health specialist, provides a good overview of the Ebola crisis. She concludes:

“…stopping this latest outbreak and others like it requires more than vaccines and short-term measures…eradicating the threat of this most deadly of viruses, and others that may emerge in Africa, requires nothing less than an international crash-program mobilization to provide adequate economic conditions (sanitation, water, power, housing) along with the development and implementation of a first-class public health system.”

Read entire articleEbola: World Health Emergency

 

 

AU Demands: African Integrated High Speed Railway Network

July 4, 2019

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

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

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

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

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

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

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

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

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

Read full article: Africa Integrated High Speed Railway Network

China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?

June 20, 2019

Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations. 

{Independent}: Belt and Road Contributing to Prosperity in Africa

A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo.

Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open
countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.

German Mittelstand Supports New Silk Road

China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17.

“The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms.

Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated.

“The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.”

Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded.

“The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a forum later this year in Germany on the BRI for partners to establish project-related contacts.

 

African Union Affirms High Speed Rail For Africa Moving Forward

FILE - A train conductor walks inside a carriage as passengers ride inside a Nairobi Commuter Rail Service train from the Mutindwa station in Nairobi, Kenya, Nov. 12, 2018.
FILE – A train conductor walks inside a carriage as passengers ride inside a Nairobi Commuter Rail Service train from the Mutindwa station in Nairobi, Kenya, Nov. 12, 2018 

“Plans are on track for a high-speed rail network connecting the continent’s borders by 2063, the African Union’s Development Agency says. The ambitious multi-billion-dollar project aims to ease the movement of goods and people across African borders, but the AU warns that corruption could derail that goal.Road, rail, and air traffic connections are so poor between some African countries that it is better to transit through Europe than to travel directly between neighbors.

Intra-African trade is less than 15% of total trade, says Adama Deen, the head of infrastructure at the AU’s Development Agency.

“You cannot have integration without connectivity, whether it is road or rail connectivity, especially when we are talking about the Africa Continental Free Trade Area, where you need a single market and connectivity to move goods, persons within the market,” Deen said

READ: African Union High Speed Rail Network On Track

 

Presidents Kagame and Museveni Discuss; Democracy, China, Infrastructure, and Jobs

President Paul Kagame: Time for Europe To Invest in Industry and Infrastrucure

December  26, 2018)

In an exclusive interview with Austria’s {Die Presse} news daily, Rwandan President Paul Kagame stated that “Europe has invested billions upon billions of dollars in Africa. (But) something must have gone wrong…. Part of it is that these billions had a return ticket. They flowed to Africa and then back to Europe again. This money left nothing on the ground in Africa.” The European money was invested in the wrong place, he said.  Instead it should go to investments “in industry, infrastructure, and educational institutions for Africa’s youth, whose number is growing fast. That is the only way to create a  demographic dividend.” It would be a better way of preventing migration of young Africans to Europe, which the Europeans were so much worried about. Europe could cooperate with China, Kagame hints: “China is active in Rwanda, but not in an inappropriate way. The new roads in Rwanda are largely built with European money. Sometimes there are Chinese subcontractors.”

 What Africans do not need, is Europeans trying to give them lessons on democracy, Kagame said. The European model of democracy is a failure, Europe is in a profound political crisis, as shown by the recent mass protests and other aspects, this model cannot be one for Africans to follow. Europe finally has to give up its attitudes of fake generosity, and begin accepting Africa as a real partner, he said.

Presidents Museveni of Uganda and Kagame of Rwanda

China Creating Tens of Thousands of Jobs for Ugandans in Infrastructure Projects

Ugandan President Yoweri Museveni revealed in an interview with {Xinhua} with its focus on infrastructure development, the country wanted to attract more invest-ment from China: “We are likely to advance the project of the Standard Gauge Railway (SGR)… in the government-to-government (talks).” Extending the Chinese-built SGR line from the Kenyan seaport of Mombasa, which is expected to reach the border areas with Rwanda, South Sudan, and the Democratic Republic of Congo, to Uganda would make sense as a catalyst of economic growth. To finance its infra-structure development agenda, Uganda looked at China because of the country’s favorable lending terms compared to some of the Western global financiers.

Other major infrastructure projects in Uganda will benefit from Chinese support as well: A few months ago, the Kampala-Entebbe Expressway, linking the capital Kampala to Entebbe Airport, the country’s gateway to the world, was completed. China financed the construction of the mega road  project, the first of its kind in the country. China is also financing the expansion of Uganda’s Entebbe International Airport. Official figures show that after completion of the first phase of expansion, the cargo center can handle up to 150,000 metric tons of goods, compared to the previous 69,000 metric tons.

In the northern part of Uganda along the River Nile, the world’s longest river, China is constructing the 600MW Karuma Hydropower Plant. While touring the facility in July, President Museveni said he was amazed by the progress noting that the plant will not only address Uganda’s inadequate power supply, but also that youths have become skilled through the construction process.

Farther upstream on the River Nile, in the central Ugandan district of Kayunga, construction of a Chinese-funded 183MW Isimba Hydro-power plant that is nearing completion according to the Chinese engineers on site, power generated by the plant is expected to come onto the national grid early next year.

The power development plan is crucial for the Uganda’s industrialization policy, which has designated over 22 industrial parks across the country where investors can set up base, taking advantage of the incentives that come with establishing their factories in the parks. In October, President Museveni launched the first phase of a $620 million Chinese industrial project in the eastern district of Tororo. The project has dubbed the Uganda-China Free Zone of International Industrial Cooperation, undertaken by the Dongsong Energy Group, will manufacture glass, steel, and organic-fertilizers, creating about 3,000 jobs at peak when completed in 2020.

President Museveni, in March of this year launched another Chinese-owned Mbale Industrial Park. The park owners, Tian Tang Group, said it will attract more than 30 investors with a total investment of about $600 million and an annual output value of $1.5 billion. The park will directly employ about 12,000 locals.

 The $220 million Kehong China-Uganda Agricultural Industrial Park, is another park that will play a critical role in transforming the economy. According to government figures, almost 80% of the country’s population derives its livelihood from agriculture.

 When fully operational, Kehong China-Uganda Agricultural Industrial Park is expected to produce about 600,000 tons of agro-products annually to meet the domestic and regional market demands.

 It will also create 25,000 jobs as well as making opportunities for training local people available, according to the managers of the park.

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

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

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

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

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

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

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

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

Development Leapfrogs in Africa Due to Chinese BRI Investment

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

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

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

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

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

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

Kenya’s Standard Gauge Railway Revolutionizing Transportation

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

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

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

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

Ethiopia Railway on the Road to Self-Management

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

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

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

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

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

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

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

BRICS Summit Portends New Era of Cooperation and Development for Africa and the World

July 27, 2018

Lavrov Welcomes South Africa’s Initiative for Africa at BRICS Summit

July 26, 2018–In an article in the South African magazine {Ubuntu}, published by the Department of International Relations and Cooperation (DIRCO), Russian Foreign Minister Sergey Lavrov said “we support further strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness….

Sub-Saharan Africa is the most dynamically developing region of the planet, which plays a key role in world mineral and hydrocarbon markets, a broad and rapid-growing consumer market, and one of the most attractive investment areas,” Lavrov said, according to Moscow Foreign Ministry website.

Pointing out that BRICS-Africa Partnership that was launched during South Africa’s 2013 BRICS chairmanship is steadily developing, Lavrov said “we welcome special attention paid by Pretoria to Africa-related issues in the work of BRICS. This area of work is becoming increasingly important for Russian foreign policy as well. Russia has significantly contributed to decolonization processes and the rise of new independent states on the continent.”

Sergey Lavrov: BRICS a Stabilizing Factor in Global Affairs; Focus on Africa is Key

July 25, 2018-An article published in South Africa’s {Ubuntu} magazine, prior to the BRICS summit, Russian Foreign Minister Sergey Lavrov noted the symbolism of the BRICS returning to Africa in 2018, the  100th  anniversary of the birth of Nelson Mandela,– “a prominent political and public figure on a global scale.”

Mandela contributed personally to establishing friendly relations between South Africa and Russia, he recalled, making possible today’s “high-level of a comprehensive strategic partnership.”

Lavrov particularly praised South Africa’s leadership in the BRICS, -“special attention paid by Pretoria to Africa-related issues,” that has become especially important for Russia’s foreign policy. “We support  further  strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness.”

Of special importance, Lavrov added, is that BRICS countries will foster cooperation with other associations and consolidate positions in international organizations to present a “united front.” The invitation to Argentina, Indonesia and Turkey, plus other African nations, to attend the July 25-27 summit reflects the BRICS-Plus initiative, he explained. “Thus we will expand the global reach of the Group and establish an outer circle of like-minded countries. In this regard, BRICs has good potential to become a unique platform for linking various integration processes in a flexible way.”

Coordination between BRICS and other major international organizations is crucial, Lavrov underscored, since consolidation of efforts “is a key to ensuring world stability and a way to settle serious conflicts.” He particularly referenced how the BRICS-Africa Partnership has advanced since 2013. At the current summit, “a special
outreach session will be held with the participation of the heads of State presiding over regional organizations of the continent in order to focus on its most relevant issues,” he said.

Why India Is Keen To Invest in Africa with China: An Overview

July 26, 2018–Ahead of the 10th BRICS Summit, China’s President Xi Jinping and India’s Prime Minister Narendra Modi had embarked on tours through some African countries. Xi, arriving in South Africa on July 24, pledged $14.7 billion of investment in the country. During a less-than-24 hour visit on July 24, Modi pledged $205 million to Uganda. The sum is intended to help the East African country to develop its dominant agricultural sector and electricity distribution infrastructure.

Both Xi and Modi were in Rwanda earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones, CNBC reported.

In recent years, both China and India, which have been widely labeled in the West as rivals, have brought to African nations their focus on all-round development, investing to improve their infrastructure, agriculture, education, and technological skills, among other areas.

The reasons why they chose to cooperate and collaborate in Africa’s development are many. For instance, the African nations are most receptive to all actual developmental efforts, large or small. Because of the needs of the African nations, which had all along been looked at only as sources for natural resources consumed by developed nations, every bit of investment made in these nations has a positive effect and is welcomed. China and India consider that providing Africa the ability to develop will bring about a sea-change in the direction and magnitude of global trade.

India is keen to expand its economic relations mostly with Southeast Asia and Africa. For China and India, Africa does not pose any geopolitical threat. Moreover, the better understanding developed between Xi and Modi since their Wuhan meeting last April, enables both of them to work in tandem to improve the living conditions in Africa.

Putin BRICS Remarks Imply Need for New Monetary System

July 26, 2018–Very brief remarks delivered by Russia’s President Putin at the Johannesburg BRICS Summit today (apparently after a leadership meeting), implicitly point to the need for a new monetary system, and the basis which has been created for such a system in the cooperative banks, funds and institutions created by the BRICS, the Belt and Road and China, and the Shanghai Cooperation Organization. Putin’s statement dealt with this. He said:

“We view positively the activities of the [BRICS] Council to implement joint multilateral projects. It is necessary to conduct these activities in close cooperation with the [BRICS] New Development Bank. It is important that the business community should help enhance the Bank’s loan portfolio. “The New Development Bank has considerably expanded its operations as of late. Members of the Board of Directors have approved 21 projects worth over $1 billion, including five that will be implemented in Russia.

“We support the idea of opening regional offices of the Bank. Talks are underway with Brazil on this issue. Hopefully, the possibility of opening the Russian office will be discussed after the talks.

“The establishment of the BRICS Contingent Reserve Arrangement [to support countries under balance-of-payments pressure] deserves praise, and this has become an important mechanism for the prompt financing of our countries’ banking sector…

“In 2017, we met in Xiamen [China] and decided to establish the BRICS Local Currency Bond Fund. This is very important for the development of the financial systems of our states. Therefore, the Fund’s timely initial operations, due to commence in 2019, serve the interests of BRICS.”

BRICS Could be an Alternative Model of Development to Western Dominance

July 25, 2018–In a July 25 article published on the website of the Valdai Discussion Club, entitled “Brics and the World Order,” Georgy Toloraya suggests that the current BRICS grouping, plus other nations that form part of the “BRICS-Plus” structure (not official members) could offer the world “an alternative model of socio-economic development, differing from the West” that is based on “mechanisms of a liberal market or profit gaining…that assumes the dominance of the West.”

Toloraya is the Executive Director  of the Russian National Committee for BRICS Research. He debunks arguments that the BRICS is just a “China-centered structure,” intended only to promote China’s interests or its Belt and Road Initiative. These accusations, he notes, “are very sly statements. The Chinese factor is only one of the BRICS development facets.”

In today’s “turbulent global situation,” Toloraya adds, it is especially important that the BRICS “common denominator” grows. Why? In contrast to the G7, BRICS expresses a “touching unanimity, which is not faked. This is not a mutiny on the ship we see with the G7, when the captain led to one direction while the crew wants to go to another one.” By the time Russia takes over the chairmanship of the group in 2020, he notes, BRICS “could become a united center of the multipolar world…Now BRICS creates its own structure of global governance, and it must develop in that direction. I do not know, whether that could be accomplished in the context of growing counteraction from the West, but we have to keep working.”

Because the BRICS is a global organization, Toloraya concludes, “these five leading ascendant powers could create a world order that will be more just and balanced than what we see now.” It may not expand yet, but “what we see in the BRICS+ format, which is involving the largest countries that are not the group’s members, but show interest in it, is a significant step towards increasing the BRICS value and making this union a representative of the greater part of humanity.” On the eve of the Johannesburg summit, he concludes, BRICS is not {against}, but {for}: for just economic development conditions, for sustainable development concept centered on human beings.”

South Africa: A Leader on the Continent for Nuclear Energy

Mr. Kelvin Kemm, in this in-depth interview, excerpted below, discusses the realm of energy choices for South Africa as well for other African nations. More are considering nuclear energy as a safe and reliable power source for their economies. Mr. Kemm also discusses the anti-nuclear lobby and the causes for climate change. I recommend you spend the time to read through the entire interview.

“South Africa Builds on Its Nuclear Success”

Interview With Kelvin Kemm, who is chairman of the board of the government-owned South African Nuclear Energy Corporation, known as NECSA,

Kemm: “The current situation is that nuclear is still on the agenda exactly as it was; it’s unchanged. There’s been somewhat of a delay because of various issues—we have a new President now, as of a couple of months ago, and a new Minister of Energy. But nothing has changed with the plan to add 9,600 MW of nuclear—to the existing total from all sources of 45,000-plus MW of electric power.

“However, the wind and solar people have been making a lot noise and made quite a few inroads, in that they’ve influenced the public thinking a lot. In doing this, they’ve done quite a bit of sabotage of nuclear, in the sense that they spread false stories that nuclear power will kill your children, and that there’s an unsolved waste problem, and that South African workers will not be able to meet exacting nuclear standards.

“In contrast…We say that you’re not going to run electric trains across the country on solar and wind, you’re not going run the gold mines; but we have no objection to solar and wind where they can work—in rural areas and in small applications, dedicated applications, which is in stark contrast to the anti-nuclear people, who condemn anything that has the word “nuclear” associated with it.

“I’d like to branch into something else, that there’s a lot of nuclear technology which is not nuclear power. So while the extreme greens are attacking the nuclear concept, they’re doing a lot of other damage. For example, South Africa is currently the second biggest supplier in the world of nuclear medicine; we’re major suppliers to the United States. In Pretoria we’ve got the only nuclear reactor in the world that runs 24 hours a day, seven days a week, producing nuclear medicine for the world, with deliveries taking place three or four times a day, every day of the year, including weekends and public holidays. We send this nuclear medicine around the world. It is a great life-saver for cancer patients, for example, and in diagnosing other diseases.

“Last year, in 2017, I was invited to speak at the inaugural African Union Economic Platform meeting in Mauritius. One of the things I mentioned in my presentation was nuclear power for other African countries, and I was inundated with reaction.

“Half-a-dozen-plus countries, now, have already spoken to us directly, asking if we can supply nuclear power to them. Now, that is in the form of the pebble-bed modular reactor (PBMR), which South Africa developed a number of years ago. That reactor got to the point where we were ready to start constructing the first prototype, when the government of the day then put the project on ice. They didn’t actually close it down, but they put it into such low gear that it eventually stumbled to an effective standstill.

“Golly, how can you have an African country dependent on rainfall to keep the lights on? You just can’t do that. And numbers of them said they had no coal, oil, or gas.

“They said, what’s next? The anti-nuclear lobby has been going on with their hand-waving and demonstrating, to get solar and wind, but many of them have been very senseless. Hey, wait a minute—you don’t get solar at night. And so hopefully the wind blows. What happens when the wind doesn’t blow? Now, you’ve got nothing. And the
green just say, well, that’s the way Mother Nature designed it: Live with it.

“And so, many African countries have gotten wise about it, saying, wait a minute, we’re about to get suckered here into this thing. And they’ve realized now that the only solution they’ve got is to go for PBMR-type nuclear.  because with nuclear, you can stockpile fuel very easily, for a very long period of time. It’s very easy to keep a year or two, or three, or four of nuclear fuel supply in a couple of bunkers, because the volume is so small; whereas you could never keep two or three years’ worth of coal in a pile around a power station. Here in South Africa, we try to keep a two-week emergency supply of coal at power stations, and even that is a mountain of coal “the size of an Egyptian pyramid.” And they go through that very quickly”

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