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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China’s Progress and ‘Belt and Road’: New Global Dynamic

“When China Eliminates Poverty in 2020, Beijing Will Have Proved That the Developing World Doesn’t Need US “Aid”

June 3, 2018

“No country in history has lifted as large a number of people out of poverty as China has done, beginning in the late 20th century. At the turn of the 1980s, over 88% of all Chinese were living in poverty according to the international definition of having an average daily income of $1.90 or less. Today, China’s poverty rate hovers around 2% of the entire population or 30 million people. This poverty is now entirely confined to rural areas. By contrast, in the United States, poverty while mostly in rural areas, is also spread among impoverished inner-cities…

“While some remain skeptical about China’s ability to eliminate poverty by the end of 2020, the record clearly shows that when it comes to tackling issues of extreme poverty in an extremely short period of time, China is not only able to achieve its goals but is able to do so in ways that put other countries to shame. While the poverty rate in the US has stagnated for decades, with the rate being 12.4% at the end of the 1970s with a slight increase to 13.7% at the end of the 1980s, China has dramatically gone from a state of near total poverty to the brink of eliminating all poverty in that same period.

“With China lifting an average of 13 million people out of poverty each year in the last five years, President Xi’s goal of progressively eliminating poverty for 10 million rural poor each year until poverty is fully eliminated at the turn of 2021, is ultimately a realistic goal, albeit one with seismic implications.”

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African Countries Meet On Using Yuan as Reserve Currency

May 30, 2018–A meeting of seventeen central bank and government officials from 14 countries in eastern and southern Africa met in Harare, Zimbabwe on May 29-30 to discuss the possibility of using the yuan as a reserve currency, Xinhua reported on May 29. The meeting was sponsored by the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI). They quote Gladys Siwela-Jadagu, spokesperson for MEFMI, saying that most MEFMI countries have received loans or grants from China and it would “make economic sense” to repay them in yuan. She said that the yuan has become a ‘common currency’ in trade with Africa.    Xinhua notes that China’s trade with South Africa surged by 14.7 percent on a yearly basis in the first four months this year

UN Official Lauds Belt and Road as `Grand Design for the Future’

May 29, 2018 — UN Under-Secretary Shamshad Akhtar, speaking to {China Daily} May 28, praised the Belt and Road Initiative of infrastructure great projects as “an initiative on a more integrated frame, [and] of a scale, that no one has talked about before.” Akhtar is executive secretary of the UN’s Economic and Social Commission for Asia and the Pacific.

“China leads the regional cooperation and the integration of Asia, with its Belt and Road Initiative strengthening intra-and intercontinental ties,” she told {China Daily}, on the sidelines of the Shanghai Forum at Fudan University. “It’s a grand design. Moving the Belt and Road Initiative forward not only connects Asia internally, but bridges it closer to Europe and Africa.”

She said, “Over the years, China’s shift from quietly forging bilateral relationships, to building multilateral and broad.”-based diplomatic structure has underscored its commitment to deepening its footprint in regional cooperation and integration.

 

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.”

 

Nigeria Wisely Collaborating with China in Railway Development

This report by the United States Institute of Peace provides a useful overview of current and future rail projects for Nigeria. Hard infrastructure in rail, energy, and water management provide an essential platform for real economic growth. China understands this principle as demonstrated in the expansion of the New Silk Road across the globe. It is a credit to President Buhari that has taken leadership in collaborating with China to build a modern rail system in Nigeria that will connect the entire nation.

“China’s Role in Nigerian Railway Development and Implications for Security and Development”

April 18, 2018

“The Economic Benefits of Railway Investment”
    “Railway development has been featured in China’s wider Belt and Road Initiative across Eurasia and East Africa. In Eurasia, as in Africa, Beijing emphasizes the contribution of the BRI to peace by promoting the development and prosperity that come from economic connectivity. Railways are an integral part of this formula. The intrinsic advantages of railways over road networks lie in their economies of scale: railways need less  frequent maintenance and have higher speed and efficiency over long-distance routes, making them a highly advantageous low-cost option for freight traffic and offering huge potential for trade promotion.
     “Railway development also has positive spillover effects for complementary industries in upstream manufacturing supply chains, such as steel and construction materials, and generates demand for retail and services, all of which promote employment. A central trunk corridor would open up agricultural and mining industries in the middle-belt and plateau states. Likewise, the development of the western Lagos-Kano corridor would benefit northern  cattle and leather industries, which are currently disadvantaged against cheap imports given the costs of transport.”  (excerpted from USIP report)                              ‘

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Human Rights Philosophy Challenged

Mekki Elmograbi Press Writer

By Makki Elmorgabi

Why the bill of indictment, and why against Human Rights Philosophy; not just against what the pretenders of the philosophy practice. Pretenders are advocates and activists, some of whom are deceivers, and some are dreamers.

The problem is not simply in the practice, but there is something inherently wrong with today’s human rights philosophy itself. It was not a negative philosophy during the period of aristocratic tyranny and feudalism,but in the recent period it has become negative and resistant to reform. While in the time of traditional tyrannical power, human rights had a role, but in the modern era, the dominant form of human rights philosophy has taken on a different and negative quality.

In the battle to resist the traditional tyrannical authority inherited from the time of European feudalism, the philosophy was positive. In addition to which, the philosophy of “individual secularism” was a positive force in the battle against the authoritarianism of socialism and communism during the cold war. However, after it had become the dominant school of thought for almost two decades, the evil content of this philosophy appeared.

Human Rights gradually became a reactionary philosophy, resulting in it losing its progressive aspects.

It is true that in the West, human rights are based on “individual secularism” which drives communities to a state of war (state of nature), by isolating the individual from the community. As is commonly known, the social contract theory of democracy is based on the development of communities from the individual in the “state of nature.” From this social contract is born civil society. Human Rights philosophy today is again isolating the individual, and separating him not just from the community, but from his inheritance and source of ethics.

The modern individual motivated by human rights theory, thinks about himself in his moment, and in so doing he is distancing himself from his community, traditions, inherited ethics, and much more. Through individual rights, he returns to the “status quo” of being completely dominated by his wicked, evil, selfish needs and wants. The result is that the community is returning day by day to “the state of nature.” The wicked personality is coated by fake culture, fake arguments, and the media; even the laws and its practice are full of tricks. As a result, justice is denied and abandoned!

Five Charges against Human Rights Philosophy and its Pretenders

1)…Human Rights Philosophy is tyrannical, i.e., it is vulnerable to manipulation by tyranny. The reason for its vulnerability to manipulation is that people are divided and scattered on the basis of needs, demands, and wants, that are guided and directed by powerful groups, who are conflicted and competing among themselves. The so-called activists and pretenders of human rights are mostly under the control of these powerful groupings who control the discourse of what are the appropriate human rights issues for agitation. The powerful, rich and strong decide, then the activists and interventionists follow. The pretenders often attempt to portray a false image that they are attacking “the powers that be” but, in truth they are not working for the sake of human rights, but for national and international powers pulling the strings behind the scene.

2)…Human Rights Philosophy is a divisive, discriminatory, and violent philosophy, not integrative nor peaceful. It creates, generates, and invents more differences every day among, and between groups, communities and even nations. In actuality, human rights philosophy does not simply invent differences, but encourages and drives the communities mad to accept and defend any newly-discovered differences among them. Thus, putting any person, group or even a nation overseas,under imminent threat and “justified” intervention, if they refuse the newly discovered differences.Their philosophy uses inflammatory campaigns under the justification of taking rights from the grip of other people peacefully, but the size and the effects of their campaigns leads otherwise. Violence is an absolute result of such inflammatory campaigns in a cracked community. If adopting and practicing inflammatory and provocative campaigns between groups, races, classes, and sects, is not violence, then what is?

3)…Human Rights Philosophy eliminates and denies the people’s right to information, as human rights pretenders are addicted to using silence and distracting facts on other topics to deprive their audience from needed and correct information.

Human rights pretenders’ tools are disinformation, misinformation, passive silence and distractive campaigns. A smart mix of these things is always ready to be put in place for immediate operation by well-financed tyrannical powers.

Sometimes human rights organizations give themselves the right to prioritize the size and length of campaigns. They claim that they didn’t miss any violations, but they can keep what they want low-profile, and use minute by minute updates to create massive. They design poll questions to bring specific answers, and they produce fake and rigged studies and statistics, instead of being observers and monitors. They themselves are the ones that need to be monitored, observed and investigated for the good of society. If the Human Rights Philosophy is leading people to such a waste of money and time, then their philosophy itself should be reviewed.

4)…Human Rights Philosophy pretenders are dehumanizing their opponents, mainly conservative and religious people, portraying them as monsters and barbarians. They deny their opponents the right of freedom of expression, justifying lies and fake news against them. Their methods include physical violence or when suitable they utilize passive silence and distraction in collusion with the violence.

5)…Human Rights pretenders collude with interventionists and neo-colonialists to create and prolong conflicts in Third World nations through pressure groups, NGOs, and support from elements within international liberal organizations. They drag countries into wars, regime change with chaos, or “Creative Anarchy”. Human rights pretenders follow the angle of the war and the directions of interventionists, then they distance themselves and pretend that it was not their idea even after very strong collusion. However, the fact remains that they get benefits through organizations that live off conflicts, refugees, and disasters. They manipulate innocent human rights believers and dreamers from the Third World. There is a class of people now making business from this collusion. They have not been held accountable for their corruption, and abuses to humanitarian crisis and use of donor’s money, because of the difficulty in investigating and proving their criminal behavior. They live off the collusion with interventionism, but claim they are opposed to it

Human Values Not Human Rights

I call for Human Values as an alternative to Human Rights today’s philosophy and practice. Another article has explained this thoroughly, but still we need to deal and debate with Human Rights philosophy and its advocate, in spite of the fact that a great number of them are “pretenders and paraders”.

Although human rights philosophy is resistant to reform, it is still advisable to try to solve the corruption of this philosophy by contributing to the debate of reform among the pretenders, who claim the title of activists and advocates. Trying to reform will help to create a good climate for change. However, we should redefine human rights philosophy in a broader concept of a “Comprehensive Orientation for Human, Environmental and Peoples’ Rights.”

Mekki ELMOGRABI, is a Sudanese press writer and diplomat focuses on East Africa issues, he founded in 2011 Mekki Center and participated in several African initiatives and programs. He is currently in Washington DC and reached through (Mekki Elmograbi: Google, Facebook, twitter) or chairman@mekkicenter.com  Cell Phone +17033426346 (Preferably text or Whatsaap) 

Floating Energy Plants Will Help Light-Up Africa

Turkish floating power plant will supply 150 megawatts of power to Sudan’s national energy grid

Turkish floating plant starts power supply to Sudan

By Huseyin Erdogan

ANKARA

Turkey’s floating power plant, the Karadeniz powership Rauf Bey, started electricity production in Sudan, a member of the Istanbul-based Karadeniz Energy Group, Karpowership, announced Tuesday.

The powership, which has 180 megawatts (MW) of installed capacity, will supply 150 MW of power to Sudan’s national energy grid.

The plant is important for the stability of the country’s national grid as it caters for the country’s increased energy demand.

The company announced on April 27 that it signed an electricity production and sales agreement with Sudan’s electricity company, STPGC.

Karpowership is the sole owner, operator and builder of the first powership fleet in the world. Since 2010, 15 powerships have been completed with total installed capacity exceeding 2,800 MW.

An additional 5,000 MW of powerships are either under construction or in the pipeline.

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African nations desperately need energy to develop their economies, build industries, and to expand their agriculture and manufacturing sectors. With hundreds of additional gigawatts of power, the continent can be transformed; hunger and poverty can be eradicated . Energy is an essential category of infrastructure that every nations needs to achieve higher levels of economic growth. Africa should have nuclear energy, and floating nuclear power plants can contribute to supplying power to the continent. I have been advocating this idea for decades, and now its time has come!

New Era of Floating Nuclear Plants Begins

May 22, 2018—With great ceremony, the Russian city of Murmansk welcomed the floating nuclear plant Akademik Lomonosov on May 19. The plant had traveled from St. Petersburg where it was built. It will receive its supply of nuclear fuel in Murmansk, and then proceed to the Arctic circle town of Pevek, where it will begin to supply power to the population of approximately 50,000 people in the area next year.

New Era of Floating Nuclear Plants Begins

Russia’s floating nuclear plant, the Akademik Lomonosov

Constructed by the state nuclear power firm, Rosatom, the 144×30 meter, 21,000-ton barge holds two 35-MW nuclear reactors similar to those used to power Russian icebreaker ships. The barge can produce enough electricity to power a town of 200,000 residents, far more than the 5,000 who live in Pevek, Russia’s northernmost town.

Small, portable nuclear reactors have long been employed by the U.S. Navy, and presumably other militaries as well, but previous attempts to produce them for civilian purposes have met with sabotage. The United States actually did have such a plant in operation in Panama in the late 1960s, but it is being dismantled, and plans for production for use off the Eastern Seaboard of the United States were ditched in the 1970s. This, despite the nuclear Navy’s sterling safety record, and the obvious advantages of such plants for isolated areas suffering from a lack of electric power.

Among the obvious places crying out for such a deployment is Puerto Rico, which has now suffered the second-longest electricity blackout in history. (The longest was in the Philippines in 2013.) At least 20,000 homes in Puerto Rico still lack electricity as a result of Hurricane Maria (which hit last September), and a new hurricane season is about to begin. Indeed, the “repaired” system is so fragile that most of the Island was plunged into darkness about a month ago, as a result of a contractor accident.

U.S. Energy Secretary Rick Perry actually mooted the possibility of using small modular nuclear reactors to reach remote places in Puerto Rico last fall. But despite a verbal commitment to nuclear energy, the Trump Administration’s embrace of deregulation has so far been unable to halt the whittling away of the mainland nuclear fleet, much less been able to initiate the nuclear renaissance which is needed to move the U.S. economy into the next level of productivity.

The American System of Economics rests firmly on a commitment to constant increases in scientific progress and productivity, of which nuclear fission and fusion are prime examples

Great News! Nigeria Expanding Vitally Needed Rail and Road Infrastructure

Nigeria Getting Back On Track With Rail Revolution

May 18, 2018-ThisDayLive
Israel Ibeleme

Just days before President Buhari met with President Trump at the White House, history was made in Washington, DC, with the signing of a landmark infrastructure agreement between the Nigerian Government and a consortium of multinational firms led by the American digital industrial giant, General Electric (GE). The implementation of that agreement, worth US$45 million in the first phase, will ensure that within the next 12 months, passenger travel by rail from Lagos to Kano will be faster and safer, while for the first time in over a decade, contracted
and scheduled freight rail services can once again be offered.

This milestone project is the outcome of President Buhari’s single-minded determination to develop, upgrade and modernise Nigeria’s transport infrastructure, as well as the relentless push by the Minister of Transportation, Rotimi Amaechi, to fully deliver on the President’s vision.

Since Mr. Amaechi took office in November 2015, as Minister of Transportation, there has been a renaissance in Nigeria’s rail industry, in line with the President’s oft-stated vision. This planned revamp of the Narrow-Gauge Rail Network by the international consortium comprising General Electric, Transnet of South Africa, Sino Hydro of China and APM Terminals (part of the Danish Maersk Group) – after two years of meticulous planning, negotiating and contracting, President Buhari in one of the coaches when he commissioned the Abuja-Kaduna train services offers strong proof of the seriousness with which the Buhari Administration is taking its railway
modernisation ambitions.

Nigeria’s Narrow-Gauge Rail System was conceived in the 1890s and built between 1898 and 1926, with a total length of 3,500 kilometres. It consists of two primary lines – Lagos to Nguru and Port Harcourt to Maiduguri– with spur lines to Eleme, Baro, Kaura Namoda and other places.

The Buhari administration, as part of its infrastructure development vision, has now finally taken the long overdue bold steps to modernise the rail network. On August 18, 2017, the Federal Executive Council, following a competitive procurement process, approved the concession of the Narrow-Gauge Rail System to the GE-led Consortium. The Government is advised by a multidisciplinary consortium led by the Africa Finance Corporation.

The initiation of that concession agreement is what has now finally taken effect following the signing in Washington DC yesterday, ahead of President Buhari’s bilateral meeting with U.S. President Donald Trump on Monday…

The benefits of this intervention are immense: increased economic productivity, job creation, private sector investment, human capacity development and much-needed world class expertise. Worldwide, rail infrastructure has been proven to reduce costs and wastage of goods; increase economic trade between farmers/miners and industry and between traders and consumers; and grow business competitiveness and increase operational efficiency.

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Nigeria Signs Rail Project with China

May 16, 2018–Nigeria has awarded a $6.68 billion contract to the China Civil Engineering Construction Corp. (CCECC) for work on a major segment of a railway linking the country’s commercial hub Lagos, in the southwest, and Kano in the north, Xinhua reported May 15.

“The signing of the segment contract agreement today [May 15] concludes all outstanding segments of he Lagos-Kano rail line,” Xinhua quoted Nigeria’s Transport Ministry as saying. The work is expected to take two or three years. CCECC, a subsidiary of China Railway Construction Corp., has been involved in other parts of the Lagos-Kano rail project, which started in 2006 and was broken into segments for implementation.

In 2016, Nigeria awarded work on a segment between the northern states of Kano and Kaduna with a contract sum of $1.685 billion. The railway line already receives funding from China Exim Bank which in April approved a $1.231 billion loan for network modernization programs. Nigeria is also negotiating with Russia, on projects within the ambitious national rail development program which requires investments totaling $46 billion.

China Civil Engineering Construction Corporation lands $6.68bn Nigeria rail project

May 16, 2018-Global Construction

By Tom Wadlow

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Construction of new highway read: Lagos Ota-Abeokuta Expressway

 

 

China Helps Ethiopia Build ‘Industrial Belt’

Ethiopian attendants walk along a train at the Lebu station in Addis Ababa, capital of Ethiopia, Jan. 1, 2018. (Xinhua/Michael Tewelde)

“Ethiopia takes inspiration from China’s success for own development”

Ethiopian attendants walk along a train at the Lebu station in Addis Ababa, capital of Ethiopia, Jan. 1, 2018. (Xinhua/Michael Tewelde)

ADDIS ABABA, May 10, 2018 (Xinhua) — Ahmed Shide, Minister of Ethiopia Government Communications Affairs Office (GCAO), told Xinhua that China hasn’t only become Ethiopia’s top economic partner but a model for Ethiopia’s economic ambitions.

Learning from Chinese economic growth experience, Ethiopia will have about 15 industrial parks by June, most of them built with Chinese money and expertise.

Ethiopia has also heavily invested with Chinese assistance in road, rail and air infrastructures to alleviate transportation problems for Ethiopia’s exports.

Shide said landlocked Ethiopia has seen China’s success in having an efficient and effective infrastructure to facilitate exports from industrial parks and as such is building a “development belt” to copy the Chinese success story.

The “development belt” will see Ethiopia build industrial parks located along the path of existing or under-construction rail lines to speedily transport products made in industrial parks to ports in neighboring Djibouti.

After reaching Djibouti, the products are then loaded and shipped to their final export destinations including China.

About half of the 15 industrial parks Ethiopia is constructing or has constructed are located along the 756kms Ethio-Djibouti electrified rail line built with Chinese expertise and finances at a cost of 4 billion U.S. dollars.

The rail line which recently started commercial operations has cut transportation time for Ethiopian goods to Djibouti ports from two days to 10 hours, giving a leg up for Ethiopia’s economic dreams of becoming a light manufacturing hub in Africa and middle-income economy by 2025.

Shide said Ethiopia is also looking to further boost ties with China on air infrastructure, as the Asian economic powerhouse is the single largest market for its national carrier Ethiopian Airlines (ET).

ET currently flies to five destinations in China — Beijing, Shanghai, Chengdu, Hong Kong and Guangzhou, and plans to add Shenzhen as its sixth destination in June.

With China working on being an airplane manufacturing center, Shide adds he foresees ET will soon be a customer of fully developed Chinese airplanes.

LEARN MORE FROM CHINA

With Ethiopia utilizing Chinese hard infrastructure expertise and money to support its ambitious economic plans, Gedion Jalata, CEO at Center of Excellence International Consult, an Ethiopian consulting firm, told Xinhua Ethiopia should also be learning from Chinese success in creating a meritocratic bureaucracy.

“China succeeded in bringing out of poverty 700 million people in 30 years not just because it built physical infrastructure, but it worked on its human capital helping create an efficient state bureaucracy, that’s a soft infrastructure Ethiopia should build,” Jalata said.

He said there are simple things the new Ethiopian administration of Prime Minister Abiy Ahmed can do if Ethiopia is to effectively learn from China’s remarkable economic development.

“Ethiopian leadership, just like Chinese leadership, should have the political will, determination and commitment to meet the country’s economic ambitions,” Jalata added

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“China committed to strengthen relations with Ethiopia”

Chairman of the National People’s Congress of China (NPC) and speaker of the congress, Li Zhanshu, confirmed that his country is determined to strengthen its diplomatic relations and continue its multi-faceted development support for Ethiopia.

On an official state visit in Ethiopia since Wednesday, the chairman met and conferred with different officials of the Ethiopian government including the president, the prime minister and speakers of both the House of People’s Representatives (HPR) and House of Federation (HoF) over bilateral and mutual interest.

Apart from this, the chairman has also signed an agreement of loan and humanitarian assistance.

In this regard, the chairman met with President Mulatu Teshome (PhD) on Thursday to discuss bilateral and regional issues. According to Meles Alem, spokesperson of the Ministry of Foreign Affairs (MoFA), the chairman confirmed that China gives priority to the bilateral ties with Ethiopia and needs Ethiopia to continue its pivotal role in Sino-Africa partnership.

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The Legacy of British Colonialism in South Africa Today

The article below discusses the problem of the denial of land ownership to South Africans that was imposed by the British Imperialist Empire. A similar British colonial policy of denying land ownership to native Africans existed in Zimbabwe. After the failure by the US and UK to honor the 1980 Lancaster House Agreement to financially support the transfer of land, President Mugabe took matters into his own hands, and gave fertile land held by white Rhodesians to black Zimbabweans. This led to various efforts of regime change against President Mugabe instigated  by the UK. Providing equitable land ownership in South Africa could cause a deeper crisis than in Zimbabwe. The transfer of  farm land under consideration in South Africa does not include the land containing trillions of dollars of valuable mineral resources that are still owned by the London based financial and commodity cartels. 

“This Land Is Our Land”

South Africa’s ruling party has failed to redistribute land to the black majority for over two decades. Can the new president defuse a ticking time bomb?

By Lungisile Ntsebeza-May 3, 2018

For almost 24 years after the end of apartheid, South Africa’s ruling African National Congress (ANC) supported a land reform program that was based on a willing-seller, willing-buyer policy. The policy required the consent of both the seller and buyer for the purchase of the land, with the consequence that sellers, almost exclusively white, would determine which land they wanted to sell. After decades of ignoring criticism of that policy, the ANC’s leadership has changed tack, at least rhetorically. It is now advocating a radical policy of land expropriation without compensation.

The unresolved land question in South Africa is a time bomb. One out of every two South Africans was classified as “poor” in 2015, with the poverty rate increasing to 55.5 percent from a low of 53.2 percent in 2011. This translated into more than 30 million out of 55 million South Africans living in poverty in 2015. Ongoing struggles for housing in urban areas and grazing in rural areas reveal the full extent of the country’s poverty crisis. The ANC government now seems to realize that for both its survival as a ruling party and the preservation of democracy, something drastic must be done to reverse the vast inequalities that plague land ownership in South Africa.

When the ANC came to power in 1994, it inherited a deeply uneven playing field. For more than a century, land ownership, access, and use of land had been determined by race. This was the direct result of European colonialism and the arrival of white settlers who violently dispossessed indigenous black Africans of their land. Early settlers established “native” reserves for blacks and, in 1913, the white-led government of the Union of South Africa passed legislation restricting the black majority to just 7 percent of South Africa’s territory, which by then was already overcrowded and overgrazed. This paltry percentage of the land was increased to 13 percent in 1936, a situation that prevailed until the advent of democracy in South Africa in 1994.

Even after being relegated to faraway reserves, black South Africans often did not actually own their land. The state owned most of the land in the rural areas of the former reserves, granting only rights of occupation to its residents, rather than the freehold title deeds that were common for white landowners. While white colonialists
were initially committed to promoting a class of African farmers in the reserves, they changed their minds in the late 19th century, when minerals and gold were discovered throughout the country. They saw rural areas, including the reserves, as reservoirs of cheap labor to stimulate capitalist development. Lacking adequate land, black Africans were forced to sell their labor, cheaply, in the booming gold and diamond mines across the country, as well as on farms and as workers in the emerging white-controlled towns and cities.

Meanwhile, in the native reserves (later rechristened as “Bantustans”) the administration of land was in the hands of compliant state-appointed “headmen.” Having fought wars with tribal chiefs, colonialists appointed headmen as administrators of land whenever they defeated chiefs. With the advent of apartheid in 1948, chieftainship was revived — and only chiefs who were prepared to execute the apartheid government’s policies were appointed.

Although headmen and chiefs did not own the land, colonialists and the apartheid state officials made chiefs and headmen their gatekeepers by giving them land allocation powers and tremendous authority that came with it; no rural resident could be allocated land without the approval of chiefs and headmen….

When Nelson Mandela became president of a democratic South Africa in 1994, this is the deeply unequal system he inherited.

Soon after taking power, Mandela’s ANC adopted a land reform program that had three components: land restitution for those who lost their rights in 1913, land redistribution to redress racial imbalances in ownership of commercial land, and land tenure to protect the rights of farm workers and dwellers, labor tenants and those residing in the of the former Bantustans.

Read  the full article in Foreign Policy magazine: This Land is Our Land