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)                              ‘

Read entire report

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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.”

Africa Advancing With Kenya’s New Mega Infrastructure RR

Kenya`s New Mega Infrastructure, the Mombasa-Nairobi Railway

 

Below is my current course at Frederick Community College and the Community College of Baltimore County. I also teach a course, “Africa the Sleeping Giant” and will be teaching another course in the Fall, “The Legacy of 500 years of Slavery and Colonialism in Africa.”

“Eight Nations Vital to sub-Sahara Africa: Past & Present

“Learn about the important histories of eight African nations that helped shape the sub-Sahara continent including; Ghana, Nigeria, Sudan, Ethiopia, Kenya, Democratic Republic of the Congo, Zimbabwe and South Africa, from slavery to the present. Students will learn how their unique history is reflected in today’s political-economic life of these nations.”

 

East-West Railroad Would Transform African Continent

This is an interesting and useful article. I have stressed for decades the urgent need to construct both an East-West and a South-North Railroad. A high-speed transport grid that Africa should have completed decades ago, is essential for the well-being and economic growth of Africa. Such a transportation network, integrated with several hundreds megawatts of electrical power, would create an infrastructure platform that would be transformative; producing the conditions for African nations to finally eliminate hunger and disease. These projects are possible now with the expansion China’s New Silk Road, initiated by President Xi Jinping, which has changed the strategic geometry of the world. For example. At the February Abuja conference to ‘Save Lake Chad’ at which I participated, the Head of States endorsed the mega Transaqua project; an inter-basin water transfer proposal to recharge Lake Chad. The Transaqua concept had been in circulation for over thirty years, but with no progress until ChinaPower become involved.  As I advised the participants at this conference: now is the time for Africans to think big!   

Can China Realize Africa’s Dream of an East-West Transport Link?

The Jamestown Foundation-Publication: China Brief Volume: 18 Issue: 6

Map of a proposed trans-Africa highway network, ca. 2003 (Credit: Wikipedia Commons)

African development hinges on a maddening paradox: its greatest asset—the sheer size and diversity of its landscape—is also the greatest barrier to its development. Landlocked countries are cut off from ports, and the difficulty of moving goods from country to country weighs down intra-continental trade (only 15% of African trade is within Africa. (African Development Bank, 2017) African consumers bear the brunt of these difficulties. [1]. Costs are driven up by a host of factors: tariffs, border delays, corruption. But the biggest challenge is that no streamlined transport route exists between West and East Africa – only a decaying and underdeveloped road and rail system which pushes up costs and drags down efficiency.

Several ambitious schemes have been proposed to link Africa’s east and west coasts, some of which are closer to full realization than others. Most notable in this respect is a plan to expand the existing Trans-African Highway 5 (TAH5) into a true cross-continental road and rail link, the early stages of which China has helped bring to fruition where Western consortiums failed. Likewise, Chinese investment in African infrastructure through Beijing’s ambitious Belt and Road Initiative (BRI) may help create expanded sub-regional linkages, particularly in East Africa, that could help facilitate the emergence of an eventual, true East-West link in the long term. However, in the short-to-mid-term, the obstacles to a truly robust set of East-West transport links are formidable, and it is unlikely that China’s involvement will be a panacea.

Read entire article: Can China Realize Africa’s Dream of an East-West Transport Link?

Africa Updates: Ethiopia Attacked by US; Zimbabwe; Uganda; China; the Great Green Wall

US Congress Disgraces Itself in Vote Against The Nation of Ethiopia

–The US Congress displayed short-sightedness, and a lack of understanding about Africa in general and Ethiopia in particular when it foolishly voted up HR 128, condemning Ethiopia. Though it is only a resolution with no lawful consequences, it demonstrates how easily the US Congress can be manipulated, and how little they know about the progress Ethiopia has made in achieving significant levels of economic growth that benefit all its citizens. The irony is the that one week before the Congress embarrassed itself, the ruling EPRDF conducted a voluntary peaceful transition of government by selecting Abiy Ahmed from the Oromo community as their new young Prime Minister. There is no doubt that Ethiopia will remain a strong ally of the US, and will continue to pursue policies that have made Ethiopia a leader in economic growth on the Africa continent as they struggle to balance human rights with economic and social rights. (I will be writing more on this subject in the near future.)

Read about Ethiopia’s progress in providing jobs and growth for its people: Ethiopia Stands Poised to Lead an African Industrial Revolution

Ties between Zimbabwe and China Hit a New High, ‘Comprehensive’ Partnership Stressed

— An editorial in the Zimbabwe {Herald}, a daily that speaks for the government, hailed the “new high” in China-Zimbabwe relations following the official visit of Zimbabwean President Emmerson Mnangagwa to China last week, where he met with President Xi Jinping as well as other Chinese officials.

The same vision was expressed to CGTN, April 8, by Ms. He Wenpeng, Africa Studies Director at the China Academy of Social Sciences, who said it marks a new era for Zimbabwe and Africa.

Last November, at a Schiller Institute international conference in Germany, He outlined what is ahead for Africa in linking up with the Belt and Road Initiative.

The {Herald} stressed that two major milestones were reached by the visit of the Mnangagwa delegation, which included 10 cabinet members as well as 80 businessmen. The first is that bilateral relations were elevated to Comprehensive Strategic Partnership Status, meaning that “China is demonstrating its willingness to boost trade with Zimbabwe and stimulate the country’s economic growth.” Zimbabwe will now profit by more Chinese investment, especially in infrastructure in which the Chinese have become experts.

The second milestone was the “incorporation of Zimbabwe into the Belt and Road Initiative. Not many people have cared to examine the benefits of this initiative, which is part of President Xi’s thought on the new economic trajectory China is taking. We reckon that Zimbabwe stands to reap huge benefits by being part of a select group of countries that China is dealing with under the Belt and Road Initiative.”

The editorial continues, describing the BRI as “the largest infrastructure development project, which will see more than a trillion dollars being invested across the globe…. Under this initiative, China will build massive infrastructure that will connect it to many countries around world, including Zimbabwe.

This will help facilitate trade and the transfer of capital, technology and expertise.

“The project is meant to create an economic cooperation framework with the countries involved that will bring real benefits to the people, making it ‘a belt of new opportunities.'”

The editorial urges Zimbabwe to take steps to “come up with laws, rules and regulations that govern foreign investment.” This new legislation should be clear and without “shifting of goalposts.”

Zimbabwe President Mnangagwa: China Helps African Nations To Develop Faster

–In an interview, Zimbabwe President Emmerson Mnangagwa, with China’s CGTN Africa senior correspondent Tian Wei, in which he praised China’s effort to develop Africa and responded to some Western critics of China’s Africa policy. By building infrastructure, China increases connectivity among African economies, and thus it helps such economies to develop faster than their individual national efforts would allow, he said. To the specious criticism, raised by the West, that China is driving African nations into debt, President Mnangagwa laughed. “We got so many grants from China,” he first said. Then he explained that China is giving credit for capital investments which are accounted for in a capital budget and therefore do not increase national debt.

Asked what his political goal is, Mnangagwa replied that it is to lead his country to become a middle-income nation by 2040 and even an advanced country. At his next meeting with Chinese President Xi Jinping, during the China Africa Summit later this year, some of the projects they discussed will already be underway, so that they can talk about them, he said.

“For me as Zimbabwe’s President, national interest comes first: There is nothing China has done that threatens the independence or national interest of Zimbabwe. But Western countries have done a lot of things to threaten our unity and political economic sovereignty,”  Mnangagwa told her. Excerpts of the video interview:
https://eblnews.com/video/interview-emmerson-mnangagwa-371574

Uganda Plans To Develop Its Uranium Reserves, and Go Nuclear

–A six-man delegation from the International Atomic Energy Agency has been in Uganda at that country’s request, to conduct a Site and External Events Design, or SEED mission. This inspection and consultation is designed to assist member states at different stages of nuclear development. The focus of the IAEA experts’ trip, is four uranium-rich districts in the country, which the Ministry of Energy and Mineral Development has identified for possible exploitation. Uganda’s Atomic Energy Council has developed a Nuclear Power Roadmap, which the government approved in 2015. Further down the line, an MOU has been signed with Russia for the peaceful application of atomic energy, and the country’s plan is for its first nuclear power plant in 2026.

The Uganda daily {Observer} reports that President Yoweri Museveni met with IAEA Director General Yuiya Amano in January to discuss Uganda’s nuclear ambitions, including in health, energy, and agriculture. Museveni, the article reports, has had to defend Uganda’s nuclear plans against critics, including at the UN Security Council, assuring them that countries like his will utilize their uranium reserves only for peaceful purposes. IAEA head Amano has been on a multi-nation tour of Africa, offering the IAEA’s assistance in their new nuclear programs.    Uganda is one of the 45 countries, including others in East Africa, including Kenya and Tanzania, that are planning to develop their uranium resources for nuclear power generation.

China Will Help Africa Green Its Deserts

–China has approved a project to offer technological support for the construction of Africa’s Great Green Wall, the Xinjiang Institute of Ecology and Geography (XIEG) under the Chinese Academy of Sciences said on Tuesday. Proposed by the African Union in 2007, Africa’s Great Green Wall initiative aims to reverse desertification spreading drought, famine, and poverty through the Sahel region.

According to Lei Jiaqiang, director of the XIEG, China will cooperate with Mauritania, Nigeria, and Ethiopia, among other African countries, to systematically diagnose desertification and the technical needs in the region.

The project will bring China’s desertification-prevention and -control technologies, materials, and products to Africa, and conduct environmental adaptability assessments. It will also include personnel training and capacity building on anti-desertification measures in African countries. Some Chinese enterprises dealing with prevention and control of desertification will also participate in the project.

“We hope to bring China’s wisdom in anti-desertification to Africa and help enhance the capability of desertification prevention in African countries along the Great Green Wall,” Lei said.

“China all weather friend of Namibia”–President Buhari Moves Against British–Zimbabwe President in China–Ethiopia’s Economic Progress

Namibian President Strengthens Relations with China; Defends China as Best Friend of Africa

The Presidents of China and Namibia, Xi Jinping and Hage Geingob, agreed to establish a comprehensive strategic partnership for cooperation between their countries, and signed six bilateral cooperation agreements, at their meeting in Beijing on March 29. President Geingob had begun his seven-day state visit to China the day before.

At the signing ceremony, both presidents spoke of how China has been an “all-weather friend of Namibia,” in reference to China’s support for Namibia’s independence, and now in its development. Xi said, “China welcomes Namibia to participate in the BRI, and hopes to strengthen policy cooperation and synergy of development plans,” Xinhua reported. Xi spoke also of his belief that China and Africa will join hands to build a closer community with shared future and inject new impetus to China-Africa ties.

For his part, Geingob expressed Namibia’s interest in cooperating with China on infrastructure, sustainable development, human resources, technology, poverty reduction, people-to-people exchanges, and major cooperation projects. He also took the occasion to deliver an emphatic defense of China’s development efforts in Africa. Xinhua reported that the Namibian president called China Africa’s best friend. It never colonized Africa, and has always treated small and medium-sized African countries on an equal footing, Geingob said, and the African people oppose unfounded accusations against China.

In an interview with CGTN today, Geingob expressed his pride and appreciation for the elevation of relations with China to a comprehensive strategic partnership.

“China has been supporting us when things were bad, and then after independence, we continued [our cooperation] to another level,” he told CGTN. “Now we are moving up. Now it is the era of the second phase of the struggle for us, where people now have peace and stability, but they are anxious to get the benefits of that freedom. They want to prosper. They want to have shelter, infrastructure, schools, clinics, etc., and they are eager. They are in a hurry. So China being the all-weather friend, who was there when we were first struggling, now that we are in the second phase of the struggle, that of economic emancipation, those who are with us, must come to join us… This time, we are talking about creating a win-win situation.”

Did British Intelligence-MI6 Interfere in its former colony? Nigeria to investigate allegations of Cambridge Analytica involvement in elections

Nigeria’s government will investigate allegations of improper involvement by political consultancy Cambridge Analytica in the country’s 2007 and 2015 elections, a presidency spokesman said on Monday.

The UK-based political consultancy is facing allegations that it improperly accessed data from social media website Facebook to target voters prior to the U.S. presidential election and Britain’s Brexit referendum in 2016.

In Nigeria, a government committee is looking into claims that SCL Elections, a Cambridge Analytica affiliate, organised anti-election rallies to dissuade opposition supporters from voting in 2007, Garba Shehu, a spokesman for President Muhammadu Buhari, said.

He said it would examine claims that Buhari’s personal data was hacked in 2015 when he was an opposition candidate in the presidential election.

The investigation would also look into whether Cambridge Analytica’s work for the election campaigns of the then ruling Peoples Democratic Party (PDP) broke Nigerian law “or infringed on the rights of other parties and their candidates”.

Depending on the outcome, criminal prosecutions might result, said Shehu. Cambridge Analytica could not immediately be reached for comment. PDP candidate Umaru Yar’Adua won the 2007 presidential ballot. He died in office in 2010 and was succeeded by his deputy, Goodluck Jonathan.
(REUTERS): 2018-04-02

Zimbabwe President, Mnangagwa in China with Large Delegation for Economic Deals

–President of Zimbabwe Emmerson Mnangagwa is on a five-day official visit to China. He will meet Chinese President Xi Jinping today. Mnangagwa, who is accompanied by First Lady Auxillia Mnangagwa, met several Cabinet ministers and private sector executives, and will also meet officials of the Communist Party of China and the Chinese business community according to Zimbabwe daily {The Herald}.

The Zimbabwean President will also visit the provinces of Anhui and Zhejiang to meet with the political leadership and the business community. Several economic and business deals are expected to be signed. The director of Platinum Agriculture and Princewood Enterprises, Dakarayi Mapuranga, who is in China with the President, said his company had secured $500 million worth of deals in agriculture, mining and transport sectors. These include a $400 million deal with China’s Lovol company that produces heavy machinery for agriculture and mining, while a $40 million revolving facility was secured with Good Agro Rising for the supply of chemicals for tobacco and other export-oriented crops, and an $80 million deal for the supply of irrigation equipment, including center-pivot and drip irrigation systems.

Dayu, the Chinese-listed firm which clinched the deal, will soon be in Zimbabwe to assess specific irrigation requirements and technology applicable to Zimbabwe. “They [Dayu] need to know

our specific needs and the Ministry of Agriculture has already identified farms where the equipment will be installed,” said Mapuranga. “Our thrust is to support initiatives by the new dispensation to ensure farmers are supported with the machinery they need. This will help bring Zimbabwe back to its breadbasket status.”

A deal was also signed with Allen Bus for 1,500 buses to ease transport challenges in the capital, Harare, and other towns. While 500 buses will be imported fully assembled, the remaining 1,000 will be imported as kits to be assembled in Zimbabwe.

China has Drafted a Partnership Agreement for Algeria

–Joining the Belt and Road Initiative, Chinese Amb. to Algeria Yang Guangyu said on March 30. The draft is being studied by Algeria now, and China hopes to sign it in the next few weeks, at most within 2-3 months, he added. Yang made the announcement in a speech to the Chinese Day celebration on March 30 at the Higher Institute for Algerian Affairs, held on the 60th anniversary of their nations establishing diplomatic relations.

Ethiopia continues on its road to develop its economy with advances in its industrial sector. Review these two articles:   Chinese Factory in Ethiopia ignites American dreams Ethiopia export revenue hits $42 million from industrial parks

 

Africa Collaboration With China’s Silk Road Good for the Continent

Nigeria And China Are In Dialogue On The Belt And Road Initiative

–The Round Table Dialogue held recently in Abuja, organized by the Center for China Studies and chaired by Nigeria’s former Foreign Minister and former ambassador to the People’s Republic of China, Alhaji Aminu Wali, discussed the strategy of connectivity across countries, and within countries. The Belt and Road Initiative will spawn an elaborate network of land, rail and maritime transport arteries and industrial clusters along its now-inclusive global routes, Charles Onunaiju wrote in his article, Nigeria and China’s Belt and Road Initiative, published in “The Sun” on March 28.

“The dialogue recognized that the core feature of the Belt and Road, which is essentially connectivity, is at the heart of the contemporary challenge of Africa, and therefore urged Africa in general, and Nigeria in particular, to play decisive roles in the mechanism of the Belt and Road by appropriate policy engagement.”

The Deputy Ambassador of the People’s Republic of China to Nigeria, Li Jing, speaking on that occasion, said “the continent’s development agendas are therefore in synergy with the Belt and Road initiative, and there is no doubt that Africa and Nigeria, through appropriate policy facilitation, could align to the central features of the Belt and Road to advance her modernization and industrialization.”

Belt and Road Initiative and the African Continental Free Trade Area Provide Opportunities in Africa, Says a World Bank Officer

–In an article in the “Daily Nation” of Kenya, Peter Warutere, a communications officer for the World Bank based in Nairobi, said the condition created by the new African Continental Free Trade Area (AfCFTA) and China’s Belt and Road Initiative (BRI) “presents a window of opportunity for African

countries to transform their economies, achieve rapid growth, and create jobs for their burgeoning youth population.”

He also wrote that “Kenya is well positioned to greatly benefit from the AfCFTA and the development of the Indian Ocean maritime route connecting China with the East African coastline.

The gateway to eastern Africa, Kenya should invest heavily in upgrading its infrastructure and industrial capacity. The window of opportunity for it is to become a vibrant industrial and logistics hub for Sino-African trade, investment and exchange.”

Kenya’s Secretary of National Treasury, Henry Rotich, said his government hopes China will help to make Kenya’s Big Four economic agenda a success. The Big Four agenda consists of food security, affordable housing, manufacturing, and affordable health care, Prensa Latina reports. “We want the Chinese private sector to participate in projects related with this agenda,” the Secretary said.

‘Nuclear Could Turn Zambia into a Regional Food Basket’

–That is the plan, by the Zambia Agriculture Research Institute and the Agriculture Ministry, with help from Russia’s Rosatom nuclear agency. An article under that headline yesterday by the African News Agency describes how for Zambia, and most of Africa, nuclear technology can dramatically improve food availability and nutrition on the continent.

An agreement has been signed with Rosatom for the establishment of a Center for Nuclear Science and Technology in Lusaka, which will help prepare Zambia for nuclear power in the future. Zambia suffers power rationing between 8 and 14 hours per day when water is low at its hydroelectric dams. But immediately, the application of nuclear science and technology will be in agriculture.

Crops that are resistant to disease, able to withstand environmental stresses, such as drought, and produce higher yields are developed by using nuclear radiation to change the genetic makeup of plants. Zambia is developing new crop varieties with these characteristics, which will not only improve the nutrition of the population, but also the lives of the farmers.

Nuclear radiation will also be used for preserving food, using radioactive isotopes. This will immediately increase the food supply. A large percentage of the food produced, especially

in developing countries, never reaches the dinner table. For example, 40% of the fish produced globally rots before it can be eaten. Zambia will be able to join the 60 nations in the world that currently preserve food through irradiation.

Other applications of nuclear technology in agriculture will be for pest and disease control, inspection of the quality and quantity of water resources, and soil conservation.

The Zambia Agriculture Ministry is running multiple research projects in various fields to up-shift agriculture. With the Center for Nuclear Science and Technology, they will have new tools

Benin President Wants China To Build Rail Project

–President Patrice Talon of the West African nation of Benin has asked the French giant Bolloré and a local firm to “withdraw” from a rail infrastructure project so that China could take over the project, according to an interview Talon gave to the French business magazine {Challenges}, published yesterday.

Benin and neighboring Niger have been attempting to link the Benin port of Cotonou with Niger’s capital, Niamey, since 2008.

Talon described the Bolloré offer as “lower-end,” saying that “a private investor cannot finance the railway we want alone.” Talon also said that “China has the necessary financial means” to support the project, expected to cost around $4 billion and pointed out that “China has demonstrated its technical know-how” for building infrastructure in Africa.

Joint Projects Are a Testament to Cameroon’s Trust in China, Says President, Visiting Beijing

–Cameroon President Paul Biya is on a three-day state visit to China, and, as President Xi Jinping

pointed out, he is the first head of state to come to China since President Xi’s reelection. The two presidents met yesterday. President Biya stated that relations between the two countries has stood the test of time, and that China has become one of Cameroon’s strategic development partners. Without listing all of their specific joint projects, President Biya said that they are a testament to the trust that Cameroon has in China.

This afternoon, Biya met with China’s top legislator, Li Zhanshu, of the Standing Committee of yhe National People’s Congress, during which they discussed further bilateral relations in the future. Li said China is willing to have more friendly exchanges with Cameroon’s parliament, and expressed hope that both countries would support each other on political issues. More people-to-people exchanges were also discussed.

In turn, Biya “spoke highly of China’s foreign policy,” Xinhua reports, and said he appreciated China’s long-term support for Cameroon.

Africa Should Learn From China, Advises South African Scientist

–Africa should learn from China’s rapid advances in education, science, and technology to solve socio-economic challenges, said South African scientist Neil Turok. He is the founder of the African Institute for Mathematical Sciences, and director of the Perimeter Institute for Theoretical Physics in Canada. Turok made his remarks yesterday at the opening of the Next Einstein Forum, being held in Rwanda. There are about 1,600 participants at the conference, which takes place March 26-28, and at least half are under the age of 42, {xinhua} reports.
“China has invested heavily in education, science, and technology,” the scientist said, “and the results are amazing. China is emerging as a new global science and technology powerhouse.” He called upon all African countries to focus, prioritize, and promote science and technology for solving economic challenges.

Why the West Needs to Stop Complaining and Start Engaging China in Africa

This article makes the essential point that I have made for many years. If the US would collaborate with China and join the One Belt-One Road, great advances would be accomplished in the economic development of Africa.  (see emphasis at end of article)

China is here to stay, and Western and African countries alike should make the most of it.

Pippa Morgn, The Diplomat

March 20, 2018

Ethiopia is one of the world’s poorest states, with an annual per capita GDP of just $707. Yet Addis Ababa is awash with billboards for Chinese construction firms, and China’s presence is palpable all over the country. Is “neo-colonial” China “out for oil” yet again?

In Ethiopia, that explanation just doesn’t add up: the country has virtually no oil, gas, or other precious minerals.

Fortunately, while the media and politicians seem stuck on uninformed accusations of neo-colonialism, some Western investors are starting to make the most of China’s growing presence. In Ethiopia’s Hawassa Industrial Park, the crown jewel of its industrial policy, the largest jobs provider is PVH – the U.S. owner of major global brands such as Calvin Klein, Tommy Hilfiger, and Speedo. Eco-friendly Hawassa was built by a Chinese company, the state-owned China Civil Engineering Corporation (CCECC), in just nine months. And, of course, PVH and other global investors could not run their businesses –and create thousands of coveted manufacturing jobs – without the railways, roads, and power stations that China is constructing all over Ethiopia.

There are also encouraging signs at the local level that, instead of pointing fingers at each other, China and the West can work together to deliver development aid. While the majority of Chinese funds go to hard infrastructure, traditional Western donors prefer social “soft” sectors. This makes them complements, not rivals. Ethiopia is eager for roads and railways, but it also   needs a better-trained, healthier workforce. Take Ethiopia’s new railway academy, designed to educate a fresh, local generation of engineers and workers: China is funding and building the school’s physical infrastructure, while the World Bank and European institutions are helping with curriculum development and business planning.

Turning “Made in China” to “Made in “Ethiopia”

History shows that (without massive oil reserves) industrialization – working up from cheap, lightly manufactured products to technically sophisticated products – is the only way to develop quickly. Factories offer an escape from unproductive and grueling subsistence farming into modern jobs with regular wages. Japan, South Korea, and later China all owe their economic success to this model, and Ethiopia’s government hopes to turn “made in China” to “made in Ethiopia.”

But industrialization needs more than cheap labor (which Ethiopia has in abundance) and the good governance that Western donors strive to instill. Investors desperately need roads, electricity, water, and the internet. With traditional Western partners either unwilling or unable to fund these at scale, and low tax revenues due to the country’s poverty, how else can the Ethiopian government build the basic infrastructure that we take for granted in the developed world? Without Chinese help, Western money for training and other “soft” sectors is sinking money into a black hole, and Ethiopia risks being “too poor to develop” –condemned to survive on subsistence agriculture and international handouts.

Ethiopian officials stress that they take the lead in dealing with China. They lament that Western aid (although well intentioned) is frankly “not enough.” Ethiopia, which has ambitious plans to escape poverty and become a middle-income country by 2025, does not have time to waste.

What’s in it for Beijing?

But is China a trustworthy partner? Beijing claims its aims are “win-win” rather than “neocolonial,” but what is China’s “win”? Like the United States after World War II, China seems to realize that providing global public goods is in its own interests. In Ethiopia, an important African hub for the Belt and Road Initiative (BRI), China secures important diplomatic gains and lucrative business opportunities…

Chinese business interests are also at play. Official loans are tied to the use of Chinese contractors, creating lucrative revenue streams. Fresh from “building China” over the past 40 years, Chinese state-owned enterprises (SOEs) are experts in cheap, fast infrastructure. They’re also eager for new opportunities as domestic growth slows. For example, the multi-billion dollar Addis-Djibouti railway was built by the state-owned China Railway Group and China Civil Engineering Construction Corporation, who later won a multiyear contract to operate the new line.

Why Engagement Not Estrangement is the Key

So is this really “win-win” for everyone? On the one hand, the commercial rates of many Chinese loans make debt sustainability a huge concern. To pay back what it owes, and eventually stand on its own feet, Ethiopia is in serious need of more tax revenue. So, if it fails to grow as quickly as hoped, Western warnings of a mountain of unsustainable debt may prove right. Ethiopia could end up like 1980s Latin America, where countries spiraled into crisis when they could no longer pay their foreign debts.

But, while there’s some dispute over the numbers (IMF estimates are slightly lower than the official figures), Ethiopia’s economy is widely agreed to have been growing at around 10 percent for the past decade – a phenomenal achievement. Given the extraordinarily low starting base, it’s unlikely to slow down soon. Businesses in Ethiopia’s industrial zones cite the continually improving infrastructure as one of the country’s main draws, and both Chinese and international firms plan to expand in future. For Ethiopia’s booming young population, this means yet more coveted industrial jobs…

How much more might be achieved if Beijing and the West proactively worked together across the whole African continent?  Much of the media and political discourse seems unable to accept that China’s role is equaling – or even surpassing – that of the West.,,

Read entire article in The Diplomat