Rwanda and South Africa Sign Deals With China and India Before BRICS Summit

Xi Jinping Arrives in Johannesburg, South Africa for BRICS Summit

July 24, 2018

China’s President Xi Jinping arrived in South Africa today for a bilateral meeting President Cyril Ramaphosa, to be followed by the July 25-27 Tenth BRICS Summit. As is his custom, Xi wrote an op-ed in the local press before his arrival, titled “For a New Era of China-South Africa Friendship.” In it, Xi began by emphasizing that “Our peoples forged a deep friendship during our common struggle against imperialism, colonialism and racism.” He then wrote:

“Over the past six years, our two countries have worked closely as co-chairs of the Forum on China-Africa Cooperation (FOCAC) to advance the comprehensive strategic and cooperative partnership between China and Africa. Our bilateral ties have thus served as a model for China-Africa relations, for South-South cooperation, and for unity and cooperation among emerging market countries, and offered valuable experience for building an even stronger community with a shared future between China and Africa and a new type of international relations
featuring mutual respect, fairness and justice, and win-win cooperation….

“We must strive for new outcomes in our practical cooperation. We need to promote complementarity between our development strategies, and make full use of bilateral mechanisms, FOCAC-(Forum on China-Africa Cooperation), the Belt and Road Initiative, BRICS cooperation, and other platforms to deepen cooperation in key areas such as industries, production capacity, resources and energy, infrastructure, finance, tourism, and digital economy and deliver more benefits to our peoples.”

On the bilateral front, South African President Ramaphosa announced that the two countries signed “several agreements and memorandums of understanding that are intended to further deepen our relations, including investment commitments that have been struck to the value of $14.7 billion.”

Xi Jinping and Rwanda’s Kagame Sign Multiple Agreements Strengthening Belt and Road Cooperation

Chinese President Xi Jinping met on July 23 with Rwandan President Paul Kagame on the third leg of his tour of Africa and the Middle East, which so far has taken him to the U.A.E. and Senegal. Xi travelled to South Africa today (for the July 25-27 BRICS summit), and he will then stop in the Indian Ocean island-nation of Mauritius on the way back to China.

Xinhua reported that “after their talks, the two heads of state witnessed the signing of multiple agreements on bilateral cooperation in the Belt and Road Initiative and other areas.”

In the meeting with Kagame, Xi stated, according to Xinhua, that “Beijing is willing to work with Kigali to translate their traditional friendship into concrete benefits for the two countries and the two peoples, and open a new chapter in their friendly cooperative relations.” As he has done on his other stops, Xi called on the two countries to “strengthen the link between their respective development strategies, give full play to their complementary advantages, and …cooperation in more areas and at deeper levels.”

Xi told Kagame, Xinhua wrote, that “China welcomes Rwanda’s participation in the international cooperation within the framework of the Belt and Road Initiative, and encourages more Chinese investment in Rwanda to help advance its industrialization and modernization.” Xi also talked about broader China-Africa relations, which “have always been defined by sincere friendship, unity and cooperation. The two sides have become a community with a shared future going through thick and thin together as well as a community with shared interests dedicated to win-win cooperation.”

Kagame, for his part, called China “a reliable friend who shares weal and woe with Africa. Kegame said it is of great importance for Rwanda and Africa to develop friendly ties with China. He spoke highly of China’s valuable assistance for Rwanda in such areas as infrastructure construction, agriculture and education, adding that China’s helping hand has made positive contributions to his country’s reconstruction and livelihood improvement.”

Xinhua further said that Kagame emphasized that “Rwanda is willing to enhance cooperation with China within the framework of the Belt and Road Initiative, which offers a significant opportunity for both Rwanda and Africa. As the [African Union] AU’s rotating chairman, Kagame stressed that China’s long-standing firm support is of great value to Africa’s development. The African side, he said, looks forward to attending the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) in September, and stands ready to jointly push forward the development of FOCAC, so as to generate more benefits for the people of both sides.”

Modi in Rwanda Witnesses Signing of Economic and Defense Agreements

On his way to attend the 10th anniversary BRICS Summit over July 25-27 in Johannesburg, South Africa, the Indian Premier, Narendra Modi, stopped in Rwanda and, along with Rwandan President Paul Kagame, witnessed the signing of seven bilateral pacts at Village Urugwiro, the President’s office in Kigali, by Indian and Rwandan officials, reported Rwanda’s {New Times}.

Prime Minister Modi is the first Indian head of government to visit the East African nation, which is considered an important gateway for India to eastern Africa. Modi is on a three-nation tour, beginning with Rwanda and Uganda, and thence to Johannesburg for the BRICS summit. He arrived in Rwanda just as Chinese President Xi Jinpig was leaving that country.

Agreements in the area of trade, defense, dairy cooperation, agriculture, culture, leather and allied sectors and two lines of credit worth $200 million for expansion of the special economic zone and irrigation scheme were signed, IANS reported.

“During the talks, both leaders reviewed the entire gamut of bilateral cooperation and expressed satisfaction at the excellent relations between Rwanda and India in the overall context of Strategic Partnership,” India’s Foreign Ministry stated. Ties between India and Rwanda were elevated to the level of  Strategic Partnership in January last year, IANS reported.

West Wants Only Quick Bucks From Africa, While China Invests for Win-Win Cooperation

‘West wants only quick buck from Africa, while China invests for win-win cooperation’

Below are excerpts from an interview that I did with RT on the significance of the trip by China President, Xi Jinping to Africa this week. I also commented on the dramatically different policy approach that China has towards Africa, than that of the United States. The past several US administrations have failed to construct a strategic policy to assist African nations in developing their economies.

'West wants only quick buck from Africa, while China invests for win-win cooperation'

Chinese President Xi Jinping is on a trip to Africa in a bid to establish deeper trade ties. On Monday, he arrived in South Africa for a state visit, which will be followed later this week by his participation in the 10th BRICS summit in Johannesburg. Earlier, the Chinese leader visited Rwanda and Senegal, which is the first West-African country to be involved in China’s “Belt and Road” infrastructure project.

Beijing has been expanding its presence in Africa in recent years, investing $39 billion in the continent in 2017.

Political analysts told RT that countries in Africa are turning to China because of US government policies.

RT: What do you think Xi Jinping will be hoping to get from his tour of Africa?

City view of Bahrain's capital Manama © Hamad I Mohammed

Lawrence Freeman: I think this is an indication by President Xi of how important they view their collaboration with Africa. He is going to be visiting four countries and they are going to end up at the BRICS Summit in South Africa. This is a continuation for the last several years of the ‘Belt and Road’ policy in Africa. And it has been a real boost for African development policies, especially in the areas of infrastructure, energy, roads and rail. And this indicates that they are going to continue along that policy for sure.

RT: Do you think China’s interests in Africa are purely economic or are they also about greater geopolitical influence?

LF: China, especially under this president, has a view of a win-win cooperation, that countries can work together for the common benefit of a mankind, that they will benefit from economic cooperation. The African countries certainly will. There has been no infrastructure built in Africa since the colonial period. The West refused, the US state has refused, Europe has refused. So, China building its infrastructure which you see in Kenya, in Nigeria, Ethiopia and other places, this is a real positive step for the development of Africa. And I think the Chinese want to help Africa. They will make money, of course. The Africans will improve their economies. And the people’s standard of living will improve and hopefully we’ll eliminate the poverty in Africa.

RT: Many Western countries are wary of investing in Africa due to instability and security problems. But China doesn’t seem to have been put off by these concerns. Why is that the case?

LF: China under this president has a vision for the future. They develop themselves and they develop their neighbors and they develop other countries around the world. So, the whole concept of the ‘Belt and Road’ is counter to geopolitical thinking, it is countries working together, they call it win-win. And the problem is that the West has no vision for development of Africa, has refused to develop Africa, so therefore they attack Africa, they complain about Africa’s loan, they complain about the debt. The debt under Western countries, the IMF and the World Bank far exceeds anything that the Chinese have in terms of debt with African countries. So, the West has to get over their problems, get over the geopolitical thinking, stop demonizing China and actually if the president was intelligent in this question, he would join the ‘Belt and Road’ because if China and the US joined together, we could transform the continent and eliminate the poverty and hunger. And that is what I am trying to do.

The US influence on Africa was already dwindling well before Trump came into the play. And it will continue to dwindle because of some of his comments, his attitude towards Africans, and his position on Africa in general. He is only interested in military bases. And Africans, I am afraid, are very much interested in partnership and those who take them seriously. And like a liberalized continent, it is voting with its feet and it is changing the US in every sector, that I know of, in favor of the Chinese. And China already had a huge presence and influence and that influence has just grown to levels for which even if the Americans were to try now unlikely to ever catch the Chinese in my lifetime. – Ayo Johnson, journalist & founder of Viewpoint Africa

The US has a very small outlook towards Africa and the rest of the world. They do not want to invest in the infrastructure, which is a long-term investment but it improves the entire economy. And they haven’t. The basic attitude of the US… is to make money, to make double-digit profits overnight. They are not interested in the long-term development of a country. That is why the US and the West built no railroads, they were built with China’s help, China has built the new hydro-energy plants, China has built new ports. And there are many more things that they are working on across Africa. So, the problem is that the West is not really thinking how to develop this continent, they are thinking in terms of how to make some fast bucks…

Forum on China-Africa Cooperation: Win for Africa’s Development

It’s Time for Africa

Alignment with China’s development vision heralds a new era of opportunity on the continent

By He Wenping- JULY 5, 2018

A Chinese engineer collaborates with Kenyan workers on the construction of the Mombasa-Nairobi Railway on April 9, 2016 (XINHUA)

As agreed by both China and Africa, China will host the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) this September. Wang Yi, Chinese State Councilor and Foreign Minister, made the announcement on the sidelines of the Meeting of BRICS Ministers of Foreign Affairs in South Africa on June 4.

The upcoming summit will be themed Win-Win Cooperation and Join Hands to Build a Closer Community with a Shared Future for China and Africa. Wang said China and Africa will endeavor to integrate the Belt and Road Initiative, the 2030 Agenda for Sustainable Development of the UN, the Agenda 2063 of the African Union (AU) and the development strategies of various African nations to create more opportunities for mutually beneficial cooperation, and to open up new prospects for common development.

The First FOCAC Summit was held in Beijing in 2006, and 12 years on leaders from China and Africa will once again gather in Beijing to usher in a new era of Sino-African cooperation. This summit, the third in FOCAC’s 18-year history, demonstrates the value that China places on Sino-African ties and promises to drive the China-Africa friendship to new historic heights.

Proactive attitude

Since Chinese President Xi Jinping proposed the Belt and Road Initiative five years ago, more than 100 countries and international organizations around the world have shown interest, of which more than 80 have signed cooperation agreements with China involving Belt and Road projects. The initiative, consisting of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along and beyond the trade routes of the ancient Silk Road.

Africa is a continent rich in resources with great market potential, but it is in dire need of robust infrastructure. It is proactively participating in Belt and Road construction with other countries along the routes in the hope that its economy can make a leap.

As Wang said when he visited Africa in January, the African continent must be at the heart of the Belt and Road Initiative and must not be left behind by China or the wider world in terms of development.

FOCAC was established in October 2000, 13 years prior to the proposal of the Belt and Road Initiative. China pursues common, intensive, safe, open and green development in its cooperation with African countries, which neatly dovetails with its commitment to innovative, coordinated, green and open development that is for everyone at home. Nearly 18 years of evolution have established FOCAC as a symbol of international cooperation, which allows the organization to provide precious experience to the Belt and Road construction across different regions and fields.

Advancing interconnection

Inadequate infrastructure is a bottleneck that constrains Africa’s economic development. Poor transport facilities and substandard roads have created exorbitant costs in domestic and regional trade, as well as impeding foreign investment.

Financing for Africa’s infrastructure needs faces an annual shortfall of at least $20 billion. In addition, most African countries have a low level of industrialization, and the contribution of industry to their economies is correspondingly small. However, Africa is a continent with abundant resources, low labor costs and great market potential, while China has significant advantages in capital, technology and equipment, as well as a wealth of experience in transforming from an agricultural to an industrial society. At a time when China is undergoing a fundamental phase of economic transition and upgrading, there is plenty of high-quality capacity and advanced equipment and technology available for outward transfer, much of which is ideally suited to Africa’s needs.

Just as the Chinese people harbor the Chinese dream of national rejuvenation, the African people hold the African dream of achieving development and alleviating poverty. Connectivity and industrialization are essential preconditions and the only path toward the realization of this dream. The Belt and Road Initiative can work in harmony with Africa’s development strategy for the 21st century. It can provide new drive for the sustainable development of Sino-African relations and help Africa take a step forward, blazing a new trail for South-South cooperation.

China and the AU signed a memorandum of understanding (MOU) on infrastructure construction cooperation on January 27, 2015. According to the MOU, under the strategic framework of Africa’s 2063 Agenda, China will enhance cooperation with African nations on railways, highways, regional airlines and industrialization to promote African integration. Chinese enterprises have already launched construction projects in these fields in countries such as Ethiopia, Djibouti, Kenya and Nigeria.

For example, the Huajian Group, a shoe producer from Dongguan in south China’s Guangdong Province, began operating in the Ethiopia Oriental Industrial Park at the end of 2011. By the end of 2017, Huajian had become the largest private Chinese investor in Ethiopia, generating $122 million of foreign exchange income and creating 7,500 new jobs for the local population. The company produces over 5 million pairs of women’s shoes each year, accounting for more than 65 percent of the Ethiopian shoe industry’s total exports. On September 1, 2017, the Ethiopian Government awarded Zhang Huarong, Chairman of the Board of the Huajian Group, the honorary title of “Father of Ethiopia’s Industry” for his contribution to the country’s development. Inspired by its success in Ethiopia, the Huajian Group plans to invest in Rwanda, Nigeria and elsewhere in Africa in the future.

The China-built Nyerere Bridge, linking the business area of Tanzania’s largest city Dar es Salaam to the Kigamboni district across the Kurasini creek, is the largest cable-stayed cross-sea bridge in sub-Saharan Africa (XINHUA)

Driving force

At the FOCAC Johannesburg Summit in South Africa in December 2015, China and participating African countries agreed to carry out 10 major cooperation plans in the following three years. The ultra-intensive plans, worth around $60 billion, cover industrialization, agricultural modernization, infrastructure construction, finance, green development, trade and investment facilitation, poverty alleviation, public health, people-to-people exchanges, and peace and security. The foremost of these is cooperation on industrialization to promote the progress of African development. In order to facilitate this, the first China-Africa Capacity Cooperation Fund—worth $10 billion—has been set up, alongside the Special Loan for the Development of African Small and Medium-Sized Enterprises and the China-Africa Development Fund each with a capital of $5 billion.

Industrial cooperation between China and Africa has already begun to bear fruit. As one of the first African countries to join China in international industrialization cooperation, Tanzania has signed a framework agreement with China on supporting key projects of the country’s ongoing five-year plan.

The construction of infrastructure and industrial parks is also making rapid progress. China has assisted Africa in building several railway lines, including one connecting the port city of Mombasa in Kenya to its capital Nairobi, another connecting Addis Ababa, the capital of Ethiopia, to Djibouti, and a third connecting Angola and Nigeria.

As Kenyan President Uhuru Kenyatta said at the opening ceremony of the Mombasa-Nairobi Railway on May 31, 2017, the new line is “one of the cornerstones to Kenya’s journey of transformation to an industrial, prosperous and middle-income country.”

The author is a researcher with the Institute of West Asian and African Studies, the Chinese Academy of Social Sciences, and a senior researcher with the Charhar Institute

 

New British Attack on the New Paradigm in South Africa

Oct. 23, 2017–British Lord Peter Hain is leading a new attack on the South African flank of the New Paradigm of the BRICS and BRI. His fake news is that South African President Jacob Zuma and members of his family are part of a criminal “transnational money-laundering network”; he announced, in this manner, in the House of Lords on Oct. 19, the British Crown’s orchestrated offensive against President Zuma and his faction in the ruling African National Congress (ANC)–including Nkosazana Dlamini-Zuma, his intended successor as ANC President and President of South Africa.

          Hain served under Tony Blair–of Iraq War ill-repute—as Minister for Africa, Minister for Europe, Leader of the House of Commons, Privy Counsellor, and Lord Privy Seal. The Queen conferred on him a life peerage in 2015.

          Hain has written to Chancellor of the Exchequer Phillip Hammond, expressing his concern that HSBC and Standard Chartered banks may have “wittingly or unwittingly” laundered funds for what he calls the “Gupta/Zuma criminal network,” a “transnational money-laundering network.” His letter names more than forty members of the Zuma and Gupta families, some other individuals, and related entities. The list includes the names of President Jacob Zuma and Nkosazana Dlamini-Zuma.

          The Chancellor has responded, reporting that he has referred Hain’s letter to British law enforcement agencies, including the Serious Fraud Office. The U.S. Department of Justice and FBI have also been brought in.

          This fraudulent attack comes just two months before the ANC election of a new party president, who will become the party’s candidate for President of South Africa in 2019. The chief contenders for party president are Dlamini-Zuma and London’s candidate, Cyril Ramaphosa, who scarcely conceals his satisfaction over the British attack on the Zuma faction. Ramaphosa said on Oct. 20 that the South African state has been “captured by people who want to milk the state, who want to rob our country of the money that belongs to the people,” and called on public servants to testify “when a commission of inquiry into state capture is set up.” (That “narrative” includes the now familiar condemnation of any major infrastructure by the government as “looting.”) South Africa’s opposition parties have also opportunistically chimed in, in support of the British attack.

          At an overflowing campaign rally for Dlamini-Zuma in Evaton Township, Oct. 22, members of her team were aggressive in denouncing the British attack. Earlier in the day, Dlamini-Zuma’s aide, Carl Niehaus, told the press, “We are not going to be told, by British people who think they can still behave like colonialists and [can continue] neocolonial behavior, how we should deal with a situation in our country!”

          Tshepo Kgadima, a political analyst for South Africa’s African News Network television (ANN7), commented that evening that Hain “wants to ensure that colonial rule will reign supreme on the peoples of this land, and that is despicable.” It is “nothing but the return of the old enemy that has been there from the time that we established democratic rule in South Africa.” Indeed it is, and a look at history shows that the “old enemy” has a much, much longer history in South Africa.

         

 

Interview with Sudan Foreign Minister

This Is What Hunger Looks Like — Again

     This tragic story should not have been necessary to be told-it should not have happened. Somalia, the Sahel and the Sahara could have been developed–should have been developed beginning at least 50 years ago when the nations of Africa liberated themselves from colonialism. It is a crime that the Western institutions refused to assist the young Africa nations in building the infrastructure that wold have led to economic growth and abundant production of food. If an East-West railroad had been built, if a South-North railroad had been built, the African continent would be totally different today and poverty could have been eliminated. 

NYT Sunday Review | OPINION  By NURUDDIN FARAH AUG. 12, 2017

    Mogadishu, Somalia — As I waited for my ride to collect me from the Mogadishu airport, an officer told me an apocryphal tale: A starving goat, blind from hunger, mistook a baby wrapped in a green cloth for grass and bit off a mouthful of emaciated flesh from the baby’s upper arm. The baby’s anguished cry brought the mother to her knees and she wept in prayer. The next day, a friend I met in Mogadishu repeated a variation of the same tale.
    I saw the story as encapsulating much of what everyone needs to know about the goat-eats-baby severity of the current famine in the Somali Peninsula, with more than six million affected, crops wasting away, livestock dead or dying, water and foods scarce. Cholera, typhoid and meningitis finish the job that prolonged hunger has started.
    The entwining of wars and famine has multiplied the magnitude of deaths among Somalia’s farmers and herders. More than half a million Somalis have been displaced since November 2016 by drought and desperate hunger, according to the United States Department of State. They have sought solace in refugee camps on the edges of Mogadishu and other towns. Somalia already had about 1.1 million internally displaced people.
    The families at the internally displaced people’s camps had left their scorched farms and walked numerous miles in punishing heat, across land stripped of vegetation. Parents go mad with despair at the sight of their babies dying from hunger, thirst or both. Hunger affects children’s memories. More than a million children are projected to be malnourished in Somalia, according to the United Nations Children’s Fund.
    Memories of older famines returned. In 1974, I lived in Somalia when the rains failed and a drought worked itself into a famine. Our destitute relatives, who had lost several children and their beasts to the famine, turned up at our doorstep.
     Seventeen years later, in 1991, the Somali civil war destroyed the state and created a huge reduction in food production. In 2011, when another famine stalked the nation, I remember standing in the midst of a rainless ruin as the weak wind, as malnourished as the people, blew across a barren land, unable to stir the dust in the cracks of the hard-baked earth. The men and women I met were bereft of every vital element that gives meaning to life. About 260,000 people died of hunger.
    Lower Shabelle and Bakool, the two regions most hit by famine and controlled by Al Shabaab militants, are inaccessible. Al Shabaab denies the existence of famine in the areas it controls and has barred humanitarian agencies from reaching those affected. Sadly, the United Nations and the international community have also
refrained from describing it as a famine.
     I contacted a man whom I will call Mr. Markaawi. He worked with an aid group that ran a camp on the outskirts of the city for those displaced by war and famine. Since the collapse of the Somali state in 1991, one is more likely to fall prey to a bomb when driving on a highway, in a cafe, in a well-appointed restaurant, a luxury
hotel, a hospital or at a refugee camp. A journey away from one’s private space in Somalia renders one as vulnerable as a clay pigeon, ready to be shot at.
    Friends in Mogadishu, where I was visiting from Capetown, where I currently live, dissuaded me from traveling to the camps outside the capital. Mr. Markaawi helped me meet some displaced families at his office, close to my hotel.
     Again and again during our conversations I heard the refrain that the famine had been at work for months before it was being talked about, that the international response had been slow and that disease and child malnutrition and early deaths intensified as the famine spread across southern Somalia, more particularly in the
territories controlled by Al Shabaab.
     Moreover, the dysfunction of the Somali state, its inability to improve the economy and meet its people’s needs, the long war and the corruption of the political class had forced the Somalis to place greater trust in the international community.
     There was a clear sense that the current famine was more lethal than the one in 2011. “We lost a third of the beasts we owned in 2011,” a man said. “Now the devastation is more severe. We’ve lost all our cattle. No water, no food and no seeds to plant.” People took the only option open: They left. Each family in the camp receives $70 from the aid groups to feed and support themselves.
     I met Faduma Abdullahi, a 36-year-old mother of eight, who had come to the displaced people’s camp outside Mogadishu from a village in the Kurtunwarey District in southern Somalia, about 100 miles away.
     She and her sharecropper husband owned a farm and a house and survived the 2011 famine by bartering for essentials. This time they abandoned their farm and house because nearly everything they had was gone. The couple feared that they and their children would starve to death. “We borrowed the bus fare and came to the
camp,” she said. From the $70 an NGO gives them, they pay a fee for a villager to look after their house.
     Nobody from the Somali government or a foreign organization had visited their farming village to offer assistance. I had heard of Muslim charities working in the area near her village. I wondered if they ever helped. “We never set eyes on an Arab,” Ms. Abdullahi said.
     Many villagers — like a farmer and a teacher whom I shall call Mohamed Mahmoud Mohamed, for his safety — were willing to survive on little and stay, but threats and fear of enforced recruitment by Al Shabaab made them leave. Mr. Mohamed, a 43-year-old father of three, ran a Quranic school with 60 students in his village. He farmed and raised cows when he wasn’t teaching.
     Mr. Mohamed had no more milk to sell. His cows died in the famine. His classroom began emptying as the students left with their parents. The absence of rain, water and food forced him and his family to debate whether they should join the exodus. Mr. Mohamed said he wanted to stay and find a way to survive. Then Al
Shabaab began seeing him — a teacher of the Quran — as a man worth recruiting for their cause. Mr. Mohamed and his family left.
     I spoke to Mr. Mohammed about the tale of the goat and the baby. He was not surprised. “It doesn’t shock me,” he said. “Terrible famines change the nature of both human and animal behavior.”
     The United Nations Security Council was told by top officials in March that $2.1 billion was needed to reach 12 million people in several African countries and Yemen with lifesaving aid, but the member states and donors had delivered a mere 6 percent of that amount.
     Mr. Markaawi was worried about the gap between what governments and donors pledge and what they eventually deliver. He narrated a folk tale in which a starving woman hears the moo of a cow coming from the heavens and she prays to Allah to bring down the cow so that she can feed her starving children. The cow,
when it presents itself to the woman, turns out to be a hyena. I asked him to interpret the folk tale. “I would say that no aid whose main aim is to provide stopgap emergency humanitarian assistance is good enough to do the job.”
Nuruddin Farah is the author, most recently, of the novel “Hiding in Plain Sight.”

The BRICS New Development Bank Provides An Alternative 

President Jacob Zuma presides over official launch of African Regional Centre of BRICS New Development Bank, 17 Aug, 2017

The President of the Republic of South Africa, His Excellency Mr Jacob Zuma, will preside over the launch of the African Regional Centre of the New Development Bank (NDB) on 17 August 2017. The President will be joined by the President of the NDB, Mr Kundapur Vaman Kamath, cabinet ministers, NDB executives and other dignitaries.

BRICS countries signed the Agreement establishing the New Development Bank at the Sixth BRICS Summit in July 2014 in Brazil, and the Seventh BRICS Summit marked the entry into force of the Agreement on the New Development Bank. The NDB headquarters were officially opened in Shanghai, China in February 2016.

Another key resolution taken at the Summit was to establish regional offices that would perform the important function of identifying and preparing proposals for viable projects that the Bank could fund in the respective regions.

The first of its kind would be set up in Johannesburg, South Africa. The launch of the African Regional Centre will showcase the NDB’s service offering, highlighting the Bank’s potential role in the area of infrastructure and sustainable development in emerging and developing countries.

BRICS, China, and Ethiopia Promote Industrialization

BRICS ministers adopt new industrial action plan

The industry ministers from Brazil, Russia, India, China and South Africa (BRICS) adopted a new action plan to deepen industrial cooperation among the five nations, Trade and Industry Minister Rob Davies said in a statement on Sunday. Davies and his counterparts from the BRICS grouping attended a meeting in Hangzhou, China where industrial and manufacturing matters were discussed and which culminated in the adoption of a seven-point action plan. “The action plan states that the world economy is still in a period of profound adjustment after the international financial crisis,” Davies said.

 “Industrial sectors, the manufacturing sector and the service sectors related to it in particular, have become key factors in sustaining mid- and long-term economic development.” At the meeting, the ministers acknowledged that the new industrial revolution of digitisation among other things will change traditional production flows and business models that will give rise to new industrial forms.

The following seven points have been identified as key in the action plan:

       strengthen industrial capacity cooperation 

       strengthen the coordination and match-making in the field of industrial policies

       promote the cooperation in the development of new industrial infrastructure

       expand cooperation in technological development and innovation

       deepen cooperation in the field of small and medium enterprises (SMMEs)

       strengthen cooperation in standard area

       facilitate all-round cooperation with the United Nations Industrial Development Organization (UNIDO)

He emphasized that industrial development strategies and investment cooperation have to grapple with the potential threats in particular in the context of high unemployment.  Davies said the industrial development cooperation between the Brics countries can be used as a springboard to foster growth and development and create work opportunities. BRICS countries will focus on using their respective rich natural and human resources and broad domestic markets to broaden industrial capacity and policies, while working together in developing new industrial infrastructure and technology.

Chinese investment leads way as Ethiopia opens to outside

As Ethiopia, the most populous nation in East Africa, is spreading its economic relations across the globe, investment from the world’s most populous nation China is playing a prominent role. Ethiopia, with a population of some 100 million, is a country on the move with rail, air and road infrastructure projects and an ambitious industrialization plan.

Ethiopia keenly needs investment from industrial giants like China to give its burgeoning population, which is estimated to grow by 2 million annually, ample employment opportunities. According to the Ethiopian Investment Commission (EIC), there have been 279 Chinese companies with more than 571-million-U.S.-dollars worth of investment, creating more than 28,300 jobs in Ethiopia between January 2012 and January 2017.

Huajian Industrial Holding Company Limited, a Chinese company that has a long-term investment plan in Ethiopia, is operating two plants in the country. Yin Xinjun, Vice General Manager at Ethiopia Division of Huajian Industrial Holding Company Limited, says Huajian’s decision to have its first plant in Ethiopia stems from the country’s firm desire for industrialization. In fact, a personal call for more investment by late Ethiopian Prime Minister Meles Zenawi during an August 2011 visit to China is what motivated initially Huajian to invest in Ethiopia, says Yin. According to Yin, Huajian’s investment in its first African plant had overcome several challenges, including logistical ones. Huajian initially had to transport its goods through an overcrowded highway from the plant in landlocked Ethiopia to Djibouti port. The problem has been partially solved with the construction of the 85-km Addis Ababa-Adama Expressway funded partly by the Export-Import Bank of China (China EXIM bank) and built by China Communications Construction Company (CCCC). The 500-million-dollar expressway was inaugurated in May, 2014.

Huajian also had to face intermittent power and water outages. The Ethiopian government later solved this problem through a special water and power line for the Eastern Industry Zone where Huajian’s first plant is located. Overcoming these challenges, Huajian currently employs more than 4,000 Ethiopians with a plan to increase employment to 50,000 people by 2022. Having established a plant in the Dukem industrial zone, 37 km south of Addis Ababa, Huajian is currently building a massive 138-hectare international light industry city in Addis Ababa. With the completion of the light industry city, Huajian foresees increasing its export revenue from 30 million dollars in 2016 to 4 billion dollars by 2022

However Western critics warn Ethiopia of being trapped in a neo-colonial relationship and some Ethiopians wonder if the Ethiopia-China relationship comes at the expense of other countries. Gedion Jalata, Program Manager of Africa China Dialogue Platform at Oxfam International, says both views miss the mutual beneficial and sovereignty respecting aspect of the bilateral relations. Jalata points out that Ethiopia is one of the beneficiaries of the China-proposed Belt and Road Initiative.

While Ethiopia is attracting massive Chinese investment in infrastructure projects, the Ethiopian government has set its sight in particular on Chinese involvement in industry parks. Ahmed Shide, Ethiopia’s Minister of Transport, says the country plans to utilize Chinese built infrastructure to boost its industrial exports. Shide is especially keen on the 4.2-billion-dollar Chinese built and financed 756 km Ethiopia-Djibouti electrified rail line to boost its industrial exports.