Democratic Republic of the Congo

South African Minister Pandor Articulates Principles of Development for Africa

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South African Minister Naledi Pandor speaking in the Democratic Republic of the Congo

July 18, 2023

Below are excerpts from remarks by South African Minister, Dr. Naledi Pandor, in Kinshasa, Democratic Republic of the Congo, on July 4, 2023.*

Minister Pandor’s words speak eloquently for themselves. However, permit me to put a fine point of her focus on the importance of African nations fostering manufacturing and industrialization.

As a physical economist, I understand better than most people, the substance of her reasoning. The only true measure of a successful economic policy is: does the material standard of living improve from one production cycle to the next? And does the implementation of this  policy produce an expansion of real physical wealth from the present generation to that of their children? Throughout modern history, it has been proven repeatedly that real sovereignty requires a robust manufacturing sector, physical infrastructure, and increased industrialization of one’s economy.

It is a touch of poetic justice, that Minister Pandor delivered her remarks on July 4, the day the United States declared Independence from the imperialist grip of Great Britain. British suppression of manufacturing by the colonies was overturned and reversed by the adoption of the scientific economic principles of Alexander Hamilton. Contrary to the myth that slavery was the underlying cause for the growth of the U.S as an economic power, it was the genius of Treasury Secretary Hamilton’s four economic reports that outlined the course of economic development for the newly formed nation.** If not for the decisive support of Hamilton’s policies by President George Washington, against the objection of those, who advocated, slavery, states’ rights, and agriculture as the only source of wealth, the American republican experiment would have failed.

Hamilton’s argument in his Report on the Subject of Manufactures, written in 1791, remains relevant today. A nation that cannot manufacture the essential commodities for the continuous progress of its people is endangering its national security.

 The essence of successful foreign, domestic, and economic policy by a wise government is founded on the same elementary principle: creating the economic conditions for the advancement of the physical wellbeing of its population.

*Ministerial meeting of the Bi-National Commission of South Africa and the Democratic Republic of the Congo

**Hamilton Versus Wall Street: The Core Principles of the American System of Economics, by Nancy Spannaus, 2019.

Excerpts from, Minister Naledi Pandor

We spend too much time trusting others outside our continent and not enough time trusting ourselves. We need to change that history. I’m hopeful that our business leaders will leverage opportunities provided by the African Continental Free Trade Area.

I believe that the AfCFTA will be a catalyst toward the pursuit of beneficial economic integration in the continent. Through the Free Trade Area agreement, we have promised ourselves as Africans that we will increase intra African trade. That doesn’t mean we buy goods from country B and pretend they were made in the DRC. It means we must manufacture in the DRC and sell within Africa. It means we must manufacture in South Africa and sell within Africa. It means we must manufacture in Ghana, in Togo, wherever we find ourselves as Africans we become productive, and we change our conditions.

Another matter that we must address if the African Continental Free Trade Area is to be a success, is the value addition to our natural resources within the confines of our continent. Everybody is running after the rare mineral resources of the DRC but they’re not establishing factories in the DRC. Don’t sign any agreement if production is not to happen here. We must refuse. We must ensure that value addition beneficiation happens within Africa. And we must ensure that as Africans we derive full benefit from the value chain and that our people realize these much needed opportunities. The time has come for South Africa and the DRC to work at changing our condition. To work at changing our history. But to do these things it’s not easy, there’ll be much opposition. So, the challenge is can we work together honestly and faithfully. If we can do that, we will change our conditions. But if we allow others to divide us, to direct us as to what should suit us, we will never achieve these ambitions.

So honorable minister I close by saying the future is in our hands. It is only by working together that will bring the change that we all want to see. I look forward to our fruitful deliberations… Our people have placed on us the responsibility of ensuring that they enjoy peace and prosperity. Our relations have always been inspired by our commitment to Pan African ideals and solidarity…Our Pan African ideals impose a commitment on us to ensure the development of our countries, but the development of the entire continent of Africa. Our Pan African ideals and our solidarity ask us to pose difficult questions to ourselves as to what good we are making out of the wealth of the nations of Africa. How do we industrialize? How should we manufacture?…

Our main goal and vision is to see real changes in our people’s livelihoods. After all they don’t elect us because we are pretty or because we wear nice outfits. They elect us to change their lives. Our people want their children to be educated. They want their children to become responsible future leaders of our nations. Our people want girls and women to be empowered so that they can fully participate in our economies and in our political lives. Our people want us to create sustainable jobs and entrepreneurship opportunities for them so that our people become independent, self-sustained, enabled, and empowered to take charge of their own future and identity. Allowing our people to remain poor is to keep them in a prison of lack of advancement. So, we must change the condition of our people so that they are free to realize their full abilities. (Emphasis added)

Read my earlier posts:

South Africa and China Articulate Principles for Global Development at United Nations

China & Freeman Agree With The African Charter: “Economic Development is a Human Right”

Celebrate July 4th Time to Adopt Hamilton’s Industrialization Polices for Africa

Alexander Hamilton’s Credit System Is Necessary for Africa’s Development

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

Hunger in DRC-Criminal Stupidity Not to Help African Nations Manufacture Covid-19 Vaccines

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(Courtesy of acted.org)

April 10, 2021

Watch my brief interview (below) on the Covid-19 crisis in the Democratic Republic of the Congo and across Africa.

Covid-19 has worsened the already desperate condition of lack of food for the people in the Democratic Republic of the Congo and other nations in Africa. As reported below, a staggering  one third of the population of the DRC are “acutely hungry.” The DRC has the largest amount of unused arable land in the world. If developed, it could potentially feed the continent of Africa. It is the lack of development, not any objective conditions that is the cause of hunger in the DRC. 

Vaccines must be given to African nations now to inoculate their populations. However, if were are to vaccinate 1.5 billion people living in Africa, which we must, Africa will need 3 billion doses. This requires assisting African nations in building up their domestic manufacturing capability to produce the vaccine and vaccinate their populations. Anything less is shortsighted, if not criminally stupid.

Read my earlier posts:    Biden Must Lead All-Out Effort to Vaccinate Africa From COVID-19 ;  Hunger Stalks Africa: Nations Should be Food Self-Sufficient

                              

Acute Hunger Crisis in the Democratic Republic of the Congo

Excepted report from EIR News.

The United Nations Food and Agriculture Organization and World Food Program issued a cry of alarm yesterday, that they had found in their recently-completed review of the situation in the Democratic Republic of the Congo, a “staggering” scale of acute hunger. Some 27.3 million people—one in three citizens of that nation—are “acutely hungry,” with nearly 7 million of those people classified as in emergency status, one step below famine, able to survive only by such extreme strategies as selling off their last animal which provides their livelihood, or by begging.

“This makes the central African country home to the highest number of people in urgent need of food security assistance in the world,” the statement from the two agencies reports.

These figures include 3.3 million of that nation’s children who are malnourished, children who if not quickly provided with enough nutritious food may never recover from stunting of their mental and physical growth which malnutrition brings about.

WFP’s representative in the D.R. Congo, Peter Musoko, is quoted: “For the first time ever we were able to analyze the vast majority of the population, and this has helped us to come closer to the true picture of the staggering scale of food insecurity in the D.R.C. This country should be able to feed its population and export a surplus. We cannot have children going to bed hungry and families skipping meals for an entire day.”

The FAO Representative in the D.R. Congo Aristide Ongone Obame urged: “We need to urgently focus on growing food where it is needed most, and on keeping people’s sustenance-giving animals alive. The main agricultural season is around the corner and there is no time to waste.”

The two agencies drove home the human condition only reflected in these statistics: “Behind the numbers are the stories of parents deprived of access to their land, or forced to flee for their lives, watching their children fall sick for lack of food. WFP staff have met families who have returned to their village to find their home burnt to the ground and their crops entirely looted. Some have been surviving by eating only taro, a root that grows wild, or only cassava leaves boiled in water.”

Never forget that such intolerable conditions are not “natural,” nor unsolvable. China’s just-released White Paper “Poverty Alleviation: China’s Experience and Contribution” asserted, “poverty is not predestined, nor is it unconquerable…. With strong will and determination, as well as practical action, one can make steady progress towards overcoming poverty and realizing common prosperity.”

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

China’s Friendship and Economic Partnership With Africa in 2021

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HISTORIC NEWS FOR DR CONGO !

China and DRC sign MoU on Belt and Road cooperation

 

January 9, 2021, two useful articles from AfricanAgenda.net

HISTORIC NEWS FOR DR CONGO !

Chinese Foreign Minister to Visit Africa

Africa Threatened With Starvation: No Objective Reason

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Millions ‘on the edge’ in DR Congo now in even greater danger of tipping over. WFP food distribution to Internally Displaced People in Kikuku, North Kivu, Democratic Republic of the Congo. WFP/Ben Anguandia

There is no objective reason for hunger in Africa. African nations have abundant fertile land and many water systems that should enable them to be not only food self sufficient, but produce a surplus. With proper investment in infrastructure and planning, stockpiles of food would be available to feed the population during difficulty periods like the present COVID-19 pandemic. With manufacturing and agricultural processing sectors, people would have more job security, then living hand to mouth in the so called informal economy. 

WFP Chief warns of grave dangers of economic impact of Coronavirus as millions are pushed further into hunger

Transcript as delivered of remarks by UN World Food Programme (WFP) Executive Director David Beasley to today’s virtual session of the UN Security Council, September 17, 2020.

“Five months ago, I warned the Council the world stood on the brink of a hunger pandemic. A toxic combination of conflict, climate change and COVID-19, threatened to push 270 million people to the brink of starvation. Famine was real. It’s a terrifying possibility in up to three dozen countries if we don’t continue to act like we’ve been acting…

“As COVID-19 pushed countries everywhere to lock down, the equivalent of 400 million full-time jobs have been destroyed, and remittances have collapsed. The impact has been felt hardest by the 2 billion people who work in the informal economy around the world – mainly in middle and low-income countries. Already only one day’s work away from going hungry, in other words living hand to mouth…

“Let me turn to the countries on today’s agenda. In the DEMOCRATIC REPUBLIC OF THE CONGO, conflict and instability had already forced 15.5 million people into crisis levels of food insecurity. These are people on the brink of starvation. The latest assessment indicates that the upsurge in violence, coupled with COVID-19, has sent this total sky-rocketing to nearly 22 million people, an increase of 6.5 million people. And I should warn you these numbers assume WFP is able to maintain current levels of food assistance. If we are forced to scale back operations, the outlook is even worse

“NIGERIA: COVID-19 is also forcing more people into food insecurity. Analysis shows measures imposed to contain the virus reduced incomes in 80 percent of households. You can imagine the devastation with that alone.

“In the northeast of the country, 4.3 million people are food insecure, up by 600,000 largely due to COVID-19. While in the large urban area of Kano, the number of food insecure people during that lockdown period from March to June went from 568,000 to 1.5 million people – an increase of 1 million people. Very troubling.

“SOUTH SUDAN: The outlook there is similarly worrying, where even before the pandemic, 6.5 million people were expected to face severe food insecurity at the height of the lean season, made worse by the violence in Jonglei State in recent months. This has resulted in the displacement of tens of thousands of civilians, a large number of abducted women and children, and widespread loss of livestock and livelihoods. In addition, virus outbreaks in urban areas such as Juba could put as many as another 1.6 million people at risk of starvation.

Finally, even though it is not on today’s agenda, I also want to highlight the disaster unfolding in Burkina Faso, driven by the upsurge in violence. The number of people facing crisis levels of hunger has tripled to 3.3 million people, as COVID compounds the situation…displacement, security and access problems. For 11,000 of these people living in the northern provinces, famine is knocking on the door as we speak.

Read: WFP Warns Grave Economic Dangers From COVID-19

Food Is Now Up to 250 Percent More Expensive Across Africa

‘With crop reduction comes food scarcity, and prices go up with demand. The Famine Early Warning Systems Network found that Ethiopia, Kenya, South Sudan, Sudan, Uganda, Zimbabwe, DRC, Mauritania, Nigeria, Guatemala and Haiti are the countries that have been most affected by the drop in crop production.

‘In the Republic of Congo, the average price of a basic food basket has increased by 15 percent, while a similar pattern has emerged in Sudan, South Sudan, Ethiopia and Somalia, with an above-average increase in the price of staple foods.

‘Then there’s the rising cost of sorghum – a drought resistant cereal grain that’s popular across the continent. In July, sorghum prices exceeded the five-year average by 150 to 250 percent in Sudan, 50 to 240 percent in South Sudan, 85 percent in Addis Ababa, Ethiopia, and 20 to 55 percent in Southern Somalia

Read: Food Up To 250% More Expensve in Africa

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com

Developing Nations Must Have Steel to Industrialize: Congo`s Steel Industry is Ready to Pave the Future

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Democratic Republic of the Congo (courtesy of indexmundi.com)

May 20, 2020

I am posting below in English and French, an interesting article by PD Lawton, a journalist and creator of the website: African Agenda-A new perspective on Africa– African Agenda. Lawton’s article  brings to our attention the importance for developing nations to have an iron and steel industry. The lack of steel production along with the absence of a vibrant manufacturing sector has prevented African nations from escaping underdevelopment imposed on them by colonialism.

Maluku Steel : the Time is Now!

Congo`s Steel Industry is Ready to Pave the Future

Excepts:

“The role of the Iron and Steel Industry in national industrialization is pre-eminent. This is because steel remains the basic raw material for a host of manufacturing activities and hence the material backbone for national economic development in general.”

“They [ steel industries] are basically strategic industries that serve the long term industrial needs of a nation through their unique role as feeder channels to myriads of other key establishments. No serious programme of industrialization can be contemplated without a strong steel base, at least a steel base that would grow with the visualized scope of general industrialization over a set period.”

“The Steel Industry will continue to serve as stimulus to national development and economy booster to industrial development of a country. The industry will serve as the backbone of industrialization of our great country, Nigeria if all the necessary parameters are put in place. The benefits of having a functional steel industry will translate to a functional country. It should also be noted that steel industry will contribute to all the facets of the economy, including the important role steel plays in economic development and growth.”

Read complete article below:

Maluku Steel : the Time is Now!

 

LA SIDÉRURGIE DE MALUKU : LE DÉMARRAGE, C’EST MAINTENANT!

 

Africa Update: African Union Discusses DRC’s Grand Inga. African Bankers Reject ‘Noise’ On Chinese Debt

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August 3, 2019

African Union Meeting Revives Grand Inga Dam Project in Congo

The six-phase Grand Inga Dam Project in the Democratic Republic of the Congo (D.R.C.) has shown signs of coming back to life when the project was discussed at the African Union Extraordinary Summit meeting held Niamey, Niger July 4-7,

{Construction Review Online} reported July 31. On Congo River, two other dams, Inga-I and Inga-II had long been completed, generating about 1800 MW peak power. Inga-III, whose construction had fallen through for a number of reasons, is projected to create nearly 5,000 MW of power. Grand Inga is a considerably ambitious project. With 52 turbines, it would dam the entire river and flood 22,000 hectares of the Bundi valley, which is home to as many as 30,000 people. Five additional hydropower stations would considerably increase the generating potential of the falls. Once these additional hydropower stations were brought online at the dam site, the  whole project would dwarf any other hydropower facility worldwide. The Inga project is estimated to produce 40,000 MW. This is enough to provide power to nearly half of the continent, reported {Construction Review Online}.

D.R. Congo, in Central Africa, where the total electrical power installation is close to 15,000 MW.  Central Africa constitutes of ten countries: Angola, Burundi, Cameroon, Central African Republic, Chad, Republic of the Congo (Congo Brazzaville), D.R. Congo, Equatorial Guinea, Gabon, and Rwanda. Most of Central Africa’s power is generated from hydro.

African Bankers Reject “Noise” on Chinese Debt–We Have To Borrow for Development!

John Rawangombwa, chairman of the African Association of Central Banks, whose annual meeting in Kigali, Rwanda ended Aug. 1, told Xinhua that “the noise around the Chinese debt to African countries”–this was the subject of a presentation at the gathering–was “unfounded.” Chinese debt, as a percentage of total African debt, is not a problem, he said.

Rawangombwa pointed out that borrowing is good, and borrowing outside the country is acceptable, although internal borrowing would be preferable to reduce foreign exchange risk.

The reality, however, he stated, is that Africa faces a financing gap; so, nations must improve their debt management capacity, and borrow for the right purposes, an build up their capital markets.

He emphasized that countries must ensure that they invest in the right projects, that generate foreign exchange in order to be able to repay their debt. He also said that the fact that Africa’s debt has increased is not unique to Africa. Rather, it is a global phenomenon, that requires global management, Xinhua reported

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

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

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

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

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

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

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

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

Read entire article: Ebola: World Health Emergency

 

 

The Urgent Need for a New Paradigm in Africa

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Re-posted from africanagenda.net

Below are excerpts from a useful presentation that provides an overview on crucial areas of development in Africa. It echoes many  of the ideas I have written about over the years, and has helpful maps on energy, water, and rail transportation. The presentation concludes with a discussion on the Transaqua water project, which I have advocated for over 20 years with a modest level of success.

 

“In contrast, is the really exciting development of relations between China and the nations of Africa. Every three years, the Forum on China-Africa Cooperation meets, alternating between China and the capital of an African nation. At the last meeting, which was held in 2018, the meeting was in Beijing, and in 2021 it will be held in Senegal. What China has been doing with its cooperation with Africa, has been making available large amounts of credit for the kinds of projects that just make sense: rail lines, power systems, water systems, transportation, road networks, industrial parks—these kinds of significant investments.

“This is not charity; this is not a case of somebody saying “We’re going to step up to the plate and donate to those poor Africans who can’t help themselves.” That’s not the case. The United States is a bigger donor to Africa than is China. But I think if you speak to many African nations in terms of which nation is doing more at present to provide a long-term future, it’s not aid that lasts for a year; it’s taking the lid off and saying, “We’re going to develop a full economy here, not perpetually slightly alleviate poverty; that’s not a future…

“Compare that with National Security Study Memorandum 200, authored under Henry Kissinger in 1974, which stated, for about two dozen countries in the world, that the growth of their populations represented a threat to U.S. strategic interests. Because it would be more difficult, essentially, to get materials from countries that were developing and prosperous than countries that are disarrayed and poor.

“Compare this to when the British ran their official empire. Consider India, for example. Some people say that at least Britain helped develop India, building railroads, and so forth. No, Britain ruined India. India was one of the world’s leading manufacturers of cloth, for example, and had a major ship-building industry, which was destroyed by the British. Empire destroys the economic potential of its colonies, and that is the reason that development has been deliberately held back in the world

Read: The Urgent Need for a New Paradigm in Africa

West Uses “Debt Trap” to Thwart Alliance of China & Africa for Economic Development

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September 8, 2018

“The term “debtbook diplomacy”—with the meaning that China builds influence over other nations by deliberately causing them to take on more debt than they can handle—was coined in a report commissioned by (and custom designed for) the U.S. State Department and written in May 2018 by Sam Parker of the Harvard Kennedy School’s Belfer Center for Science and International Affairs. This report was then used by the U.S. State Department to ring alarm bells all over the world about the potential impact of China’s Belt and Road Initiative. But the report’s author, Sam Parker, is not known to have any expertise in economics or to have written anything about the economies of China or other developing countries.

“Historically, the British Empire was, and still is, the master of debt traps. Its methods have been copied in the post-1971, post-Bretton Woods era by such United States- and British-controlled institutions as the International Monetary Fund and World Bank to shackle nations with unpayable debt, in order to loot them, destroy their physical economic productive capabilities and finally force them to give up their national sovereignty. Under the 19th century, British-dominated, imperialist world order, as in the case of the post Bretton Woods system, money is treated as a “global” commodity controlled by private interests, rather than a political tool controlled by sovereign governments which issuance is intended to promote the productivity of society and the general welfare of its citizens.”` (Schiller Institute’s “Why China’s Debtbook Diplomacy is a Hoax”)

African Development Bank President, Adesina, Denies Debt Crisis in Africa

Speaking to the reporters on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Beijing Summit on Sept 5, and addressing the western propaganda that China is drowning Africa with debt, President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, said: “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure.” “The population is rising, urbanization is there, and fiscal space is very small,” the AfDB president added. “They are taking on a lot more debt, but in the right way,” Adesina said, Xinhua reported on Sept 5.

Scoffing at the international campaign that the China imposed debt has begun to cripple Africa, Adesina pointed out that Africa’s overall debt-to-GDP went up from 22 percent in 2010 to 37 per cent last year. He stressed that the ratio is markedly lower than the 100 per cent or 150 per cent of many higher-income countries, and over 50 per cent among emerging economies.

Meanwhile, in an interview with the Nikkei of Japan, the foreign minister of Djibouti, Mahmoud Ali Youssouf, said his country intends to help promote China’s Belt and Road Initiative, but is also cautious about over reliance on China in light of Djibouti’s growing debts linked to Chinese investment. “If [the initiative] brings wealth, progress, development, we welcome it,” he said in that interview, Nikkei reported today

Nigerian President Buhari Debunks the “Debt Trap” Hoax

Muhammadu Buhari, the President of Afria’s most populous nation, Nigeria, has emerged from the hugely successful Forum on China-African Cooperation (FOCAC) with a refutation of what he called “insinuations about a so-called Chinese debt trap.”

“Let me use this opportunity to address and dispel insinuations about a so-called Chinese debt trap,” he told the press today. “These vital infrastructure projects being funded are perfectly in line with Nigeria’s Economic Recovery & Growth Plan. Some of the debts, it must be  noted, are self-liquidating. Nigeria is fully able to repay all the loans as and when due, in keeping with our policy of fiscal prudence and sound housekeeping.”

He said: “I am happy to note that Nigeria’s partnership with China through FOCAC has resulted in the execution of critical infrastructure projects valued at more than $5 billion, over the last three years. We have completed West Africa’s first urban rail system, valued at $500 million, in Abuja. Before then was the 180km rail line that connects Abuja and Kaduna, completed and commissioned in 2016, and running efficiently since then,” the President declared.

He said that Nigeria is currently leveraging Chinese funding to execute $3.4 billion worth of projects at various stages of completion. Among these are: upgrading of airport terminals, the Lagos-Kano rail line, the Zungeru hydroelectric power project, and fibre cables for our internet infrastructure. Nigeria signed an agreement for an additional $1 billion loan from China. The money is for additional rolling stock for the newly constructed rail lines, as well as road rehabilitation and water supply projects.

“Debt Trap” Hoax Exposed by Chinese Spokesperson

At a September 4 press conference on the morning of the second day of the FOCAC Summit, Xu Jinghu, the Special Representative of the Chinese Government on African Affairs, was asked by Reuters about whether the $60 billion financing that President Xi Jinping promised in aid for Africa in his keynote address, would create debt problems for Africa.

Xu Jinghu went through the importance of the eight areas outlined by President Xi in order to raise the level of production and productivity of the African economy.  She also made clear that all of the projects are done in close consultation with the African countries in order to meet what they see as their real needs for further industrialization.

She added that Africa is in “the ascending phase” of its development and “faces a gap in the funding for all of their endeavors…”They need capital development and the African and Chinese economy, which is more developed, are therefore complementary.”

Xu commented, “You have to take into consideration the international situation. The  costs of financing for development on the international market has become very expensive and most of the African countries are still dependent on exporting their raw materials. And the price of these have fallen,which has increased the debt of African countries a great deal.  And if you look at the African countries, you will see that China is not the creditor of those African countries with the biggest debt burden.

China Africa Research Initiative Refutes “Death Trap” Propaganda

The China Africa Research Initiative-(CARI) at the Johns Hopkins School of International Studies, Washington DC refuted the “death-trap” narrative that China is subverting African nations by forcing them into debt.  Their The Path Ahead: The 7th Forum on China Africa Cooperation-(Briefing Paper #1, 2018), reports: “Finally, in just three African countries, Chinese loans are currently the most significant contributor to high risk of/actual debt distress” They are;  Djibouti, Republic of Congo, and Zambia.  

Read complete CARI  briefing paper

 

Read:

Who Owns Africa’s Debt: China or Western Nations & Institutions?

 

Good News for Africa! DR Congo Will Get Power From Inga 3

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Congo to Start $13.9 Billion Hydropower Project This Year

The Inga 1 dam and Inga Falls on the Congo river.  Photographer: Marc Jourdier/AFP via Getty Images

The Democratic Republic of Congo plans to start work this year on the frequently delayed Inga 3 hydropower project, after receiving a joint bid from two previously competing consortia of investors.

One group led by China Three Gorges Corp. and another including Actividades de Construccion y Servicios SA of Spain submitted a joint bid on June 6 for the project that will produce 11,000 megawatts and is predicted to cost $13.9 billion, Bruno Kapandji, director of the Agency for the Development and Promotion of the Grand Inga Project, said at a conference Wednesday in Lubumbashi in southeast Congo.

“Our aim is to start Inga this year,” Kapandji said. “The two consortia have given us a document in which they committed to creating a single consortium. We are in the process of preparing, discussing and negotiating the exclusive collaboration contract which will allow the single candidate to go to the market to find the financing.”

Africa’s biggest copper producer and the world’s largest source of cobalt has been considering building Inga 3 for more than a decade to address a power shortage that has curbed mining-industry growth. A treaty signed in 2013 provided for the plant to export 2,500 megawatts of power to South Africa. The plant would form part of a larger Grand Inga hydropower complex spanning part of the Congo River and produce as much as 50,000 megawatts when complete, according to the World Bank.

Seven Years

Construction on Inga 3 will take as long as seven years, Kapandji said.

Congo’s government last year asked the competing consortia to work together and submit a joint offer to build and manage Inga 3. Once a concessionaire company has been established, the developers “will commit themselves to mobilizing the funds to complete the project and operate it,” Kapandji said.

The next phase of Grand Inga was initially supposed to produce 4,800 megawatts.

“The project has changed because the demand has changed,” said Kapandji. The mining industry’s energy deficit has increased from about 500 megawatts to 1,300 megawatts in the intervening years since the project was conceived, he said.

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