Gambari COS for Buhari: Right Man at Right Time for Nigeria

President Muhammadu Buhari-left and his new Chief of Staff, Prof Ibrahim Gambari-right. (Politics Nigeria)

Gambari COS for Buhari: Right Man at Right Time for Nigeria

Lawrence Freeman

May 15, 2020

President Muhammadu Buhari has unexpectedly chosen an exceptional new Chief of Staff (COS), Professor Ibrahim Gambari, (his friends call him “Prof”), to replace the recently deceased Malam Abba Kyari. Over these many years, through meetings formal and informal at the United Nations, Washington DC, Abuja, and Darfur, I have come to respect Prof. Gambari as an honorable and thoughtful Nigerian leader. During our many discussions, his depth and breadth of strategic thinking was evident and contributed to my knowledge of Nigeria, Africa, and the United States.

President Buhari and Prof Gambari know each other well. Prof Gambari served as the Minister for External (Foreign) Affairs between 1984 and 1985 under General Buhari’s military regime before it was overthrown in a coup. It should be remembered that during that time period, when the government of Gen. Buhari resisted the “Washington Consensus” and the Structural Adjustment Programs (SAPs), the Naira was worth $1.34 dollars. Following the regime change of the Buhari-Gambari partnership, the Naira was immediately devalued to 25 to $1. As it is said, the rest is history.

Not a career politician or member of the foreign service, Prof Gambari as ambassador headed the Nigerian Mission to the United Nations from 1990-1999 and had the distinction of serving under five heads of state during his tenure. Recognizing his experience and diplomatic skills, Prof Gambari upon leaving the Nigerian Mission was appointed Special Adviser on Africa to the UN Secretary General Kofi Annan from 1999 to 2005. He was the Under-Secretary-General of the United Nations for Political Affairs from 2005 to 2007 under Secretary-General’s Kofi Annan and Ban Ki-Moon. Prof Gambari was later appointed head of the Joint African Union-United Nations mission in Darfur (UNAMID) from 2010-2012. As head of the 26,000 man UNAMID force, Prof Gambari navigated a difficult peace keeping operation between the government of Sudan and those international forces who were intent on a Khartoum regime change.

Nigeria in Difficult Times

Nigeria is experiencing multiple tribulations. Its economy is suffering with 40% of its 200 million population living in extreme poverty and the majority of Nigeria’s tens of millions youth are unemployed. Infrastructure is inadequate, especially the lack of daily accessibility to electrical power for consumers and commercial enterprises. Furthermore, the murderous Boko Haram is still operating in the northeastern section of the country. Worsening the condition in Nigeria is the COVID-19 pandemic, which could potentially explode given the insufficient healthcare needed to contain and combat the effects of the coronavirus. The collapse of the price of oil now fluctuating below $30 per barrel has caused significant shortfalls in Nigeria’s revenue and its ability to accumulate foreign exchange. Nigeria’s national budget has been thrown into turmoil because it was predicated on a minimum price of $50 per barrel.

Essential priorities for Nigeria, which I have discussed with government leaders:

  • A national economic growth  plan that benefits all geographical sections of the nation
  • Massive building of physical infrastructure including an urgent mobilization to upgrade and expand healthcare
  • Reverse the shrinking Lake Chad and transform the Lake Chad Basin by implementing Transaqua, an inter-basin water project supported by President Buhari.

Stark weaknesses of globalization have vividly surfaced due to the spread of COVID-19, which has caused devastation, and will likely continue throughout 2020. As a result, the world is crying out for a New International Economic Order to replace the currently defective international financial system. A new paradigm for development that values human life above debt service, prioritizes economic growth, and the elimination of poverty. Nigeria and its people, whose potential has been recognized since the liberation of the continent from colonialism, should play a leading role in this economic transformation of Africa.

To begin the process of accomplishing these goals, President Buhari, in the remaining years of his second term, will need the support of a trusted group of counsellors.  It is my hope that my friend, Prof Gambari, a first-class strategic thinker, and a patriot who cares deeply for Nigeria, will galvanize this effort.

Below I provide excerpts from an article I wrote about Prof Gambari in March 2002, because of their relevancy today.

Professor Gambari discussed the effects of “debt over-hang” on Africa’s development. “The heavy debt burden of many countries is robbing them of their sovereignty, and impeding their pursuit of economic and social policies. The sad part is that debt overhang is hitting generations that had little or nothing [to do] with its contraction. As the UNDP poverty report observes, the ‘truth of the matter is that demands debt servicing are no longer a matter of money, but a source of the excruciating impoverishment of people’s lives.’ ”
While not attacking globalization directly, Gambari diplomatically discussed the consequences for African economies–the unequal benefits from the globalization process.” Globalization, “driven by market and capital expansion, often pays little attention to governance of these markets and their repercussions on people,” and does not guarantee “equity and human development.” The results of globalization are that “Africa’s share of world trade has declined from 40% (1980s) to less than 2% at present.”

Read my outline for the development of Nigeria: Guardian of Nigeria Publishes “Proposal for Nigeria’s Future” by Lawrence Freeman

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

China Has Embraced Africa’s Development; The US Has Not

Courtesy of Global Research

January 16, 2020

China Has Embraced Africa’s Development; The US Has Not.

By Lawrence Freeman

It is as clear as day and night, the difference between China’s approach to Africa and that of the United States. There is no equivalence. Historically, China has viewed African nations as part of the developing sector from which China emerged.  This has contributed to China’s distinct attitude to partnering with African nations in promoting economic growth. Over the last two decades especially, the ties between China and Africa have grown stronger, with Africa’s East Coast materializing as an integral part of China’s Belt and Road Initiative.

The US has not always dismissed the importance of contributing to Africa’s growth. President John Kennedy, following in the footsteps of President Franklin Roosevelt, was a strong opponent of colonial subjugation of Africa. President Kennedy, as US Senator advocated Africa’s liberation movement, and as US President supported President Kwame Nkrumah’s plans to construct the hydro-electric dam and bauxite smelting complex on Ghana’s Volta River. By the end of the 1960s the US had lost its optimism and vision for the world, adopting in its place, a British inspired cynical “geo-political” doctrine.

Geo-politics divides the world into two categories; winners and losers in a zero sum game. Today’s unfounded attacks against China’s involvement in Africa, alleging that China is deliberately entrapping nations into debt and stealing their natural resources flows from this perverted world view. Chinese President, Xi Jinping promotes a different philosophy; it’s called “win-win.”

Building, Not Extracting

Unlike British Imperialist Cecil Rhodes, and degenerates like King Leopold II, China is not raping Africa for its resources. Since Royal Dutch Shell discovered oil in southern Nigeria in 1956, the West has focused its investment chiefly in oil and gas-i.e. hydrocarbon extractive industries. China in recent decades has become the leading nation in financing and building infrastructure in Africa.  It is well known that investment in extractive industries do not expand the economy nor provide a large amount of jobs. However, it does yield large streams of revenue.  China has chosen a different business mode; one more beneficial to the African people.

According to McKinsey consulting company’s publication, Dance of the lions and the dragons, released in June 2017, China in 2015 financed $21 billion worth of infrastructure projects in Africa. That is three times the combined total of France, Japan, Germany, and India. US financing of infrastructure in Africa was too minimal to even mention. Detailed in the same document, China’s export and import trade with Africa is quantified as $188 billion in 2015, compared to the US at $53 billion. Deloitte’s 2017 Africa Construction Trends, further documents China’s role in expanding Africa’s infrastructure. As of June 2017, China was only second to African governments in funding large infrastructure projects, 15.5% and 27.1% respectively. The US was listed at 3%, the UK and France at 2%. When it comes to who actually builds these projects the figures are more shocking; China constructed over one quarter or 28.1% of these projects, the US 3.3%, and the UK 2.3%.

Infrastructure Is Essential

Infrastructure is critical for every economy to expand, grow and develop. Africa’s deplorable lack of infrastructure is literally killing its people. There is no more crucial single element of economy that must be addressed for African nations to develop. Infrastructure adds value to the entire economy by augmenting the productive capability of every farmer and worker. More capital intense economies will be affected by technologically advanced infrastructure platforms.

The history of humankind demonstrates that progress of civilizations emanates from the realization of scientific discoveries transmitted through more efficacious technologies. Infrastructure reflecting more advanced machinery is a primary means of transferring technology (science) to the economic production process.

There is nothing wrong with African nations using their resources for collateral or payment of loans for infrastructure. Wealth is not the monetary value of natural resources extracted from the earth. Economic wealth is understood to be that which contributes to the increase of the power of society to provide the material wellbeing of its citizens and their posterity. Infrastructure performs that function.

China’s contribution to building new railroads in Africa, replacing century old British and French antiquated rail lines, and constructing new hydro-electric dams, and ports, is precisely what African nations need to develop.  China is providing indispensable assistance; the US and Europe are not. An experienced former US ambassador to Africa told me bluntly; the US stopped investing in infrastructure in Africa in the early 1970s. Sadly, today, the US continues to repeatedly proclaim, “we don’t build infrastructure.”

 

Debt-Trap or Claptrap?

In her latest paper, A critical look at Chinese ‘debt-trap’ diplomacy: the rise of a meme, Deborah Brautigam, China-Africa scholar and Director of the China-Africa Research Initiative-(CARI) at SAIS*, puts a nail in the coffin regarding false accusations of China deliberately entrapping African nations through debt.

She writes: “…for over a decade Western politicians and pundits have warned that China is a rogue donor with regard to its finance, is a new colonialist, and a predatory and pernicious lender that snares vulnerable states in a debt trap leveraging its loans in order to have its way with weak victims.”

Brautigam responds to these allegations by asking: “However, does evidence exist for this kind of debt leverage?” Then she answers: “It [SAIS database] has information on about more than 1000 loans and, so far, in Africa, we have not seen any examples where we would say the Chinese deliberatively entangled another country in debt, and then used that debt to extract unfair or strategic advantages of some kind in Africa, including ‘asset seizures’.” (emphasis added)

With the population of 55 African nations projected to reach 2.4 billion in the next three decades, the continent needs trillions of dollars in new infrastructure. Presently, the US is more concerned in countering China in Africa, than developing Africa. Many African leaders are hopeful the US will establish a more robust economic relationship with their nations. As has been the case with previous administrations, the lack of vision, and adherence to “geo-politics” is preventing the US from engaging with Africa in a win-win relationship. This can and should change.   

*Johns Hopkins School of Advanced International Studies

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

 

In the Next Decade, Nuclear Power for Africa Is A Necessity, Not An Option

Image credit: IAEA

12/28/2019

In the next decade, beginning on January 1, 2020, African nations must pursue nuclear energy. This is necessary to provide energy to the continent, which is suffering from a huge deficit in electricity, but nuclear technology has many additional benefits to African economies.  This includes creating large amounts of potable water. With nuclear power plants along the Mediterranean and Red Sea, the equivalent of a “second Nile River” from desalination through nuclear powered desalination would transform the nations of the Nile Basin. Constructing Small Modular Nuclear Reactors-SMRs (see below) in every African nation would be a important first step towards ending poverty and industrializing the continent.  Let me bluntly state: without abundant, low cost energy, Africa will not develop, and its people will suffer. Energizing Africa is not an option, it is a life and death necessity!

{Sustainable Times} published a valuable article on December 23, 2019: Can Nuclear Unlock Africa’s Development?

Excerpts:

“Combining renewables with nuclear power, however, makes the task of powering Africa’s growing economies more viable – not to mention the other useful and often overlooked aspects that nuclear can contribute to development. Although South Africa is the only country on the continent currently operating a nuclear power plant, the technology is being increasingly considered by African leaders. For example, works are set to begin on a new 4.8GW plant in El Dabaa Egypt next year, which is being developed by Russia’s Rosatom.

“Other countries including Ethiopia, Zambia, Nigeria and Ghana also have memorandums of understanding with Rosatom that pave the way for nuclear development. South Korea are also looking to invest in the continent’s energy industry, while Chinese nuclear firms have entered into agreements with Kenya, Sudan and Uganda. Energy is a key driver for development. In Ghana, for example, nuclear is seen as the obvious way to provide reliable energy for bauxite refineries which would increase jobs and export capacity.

Technology beyond electricity

“But nuclear technology provides more than just energy: many advanced nuclear designs produce high-temperature process heat for uses in desalination plants, chemical production and even district heating systems. These subsidiary features would allow nuclear technology to benefit society beyond the generation of electricity – and potentially accelerating its deployment.

“Nuclear technologies are already being used in agriculture, for example, where isotopes and radiation techniques are harnessed to combat pests and diseases or to increase livestock and crop production. For instance, farmers in Benin have increased their maize yields by 50 percent, while simultaneously reducing the amount of fertiliser used by 70 percent, thanks to the deployment of nuclear-derived nitrogen-fixation methods – the same techniques that are allowing Maasai farmers in Kenya to double vegetable crop yields with half the irrigation of traditional methods.

“By contrast, nuclear desalination could use the excess heat from new reactor designs like Small Modular Nuclear Reactors (SMRs) to produce thermal and electrical energy without emitting greenhouse gases, which then transforms seawater into freshwater. While capital costs for nuclear plants are initially high, fuel costs are low and stable: a doubling in the price of uranium would result in only a five percent increase in the total cost of energy generation. In contrast, an equivalent increase in oil would cause freshwater production costs to surge by 70 percent.”

 Read: Can Nuclear Unlock Africa’s Development?

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Progress for Small Modular Reactors

December 13, 2019—There’s some real good news for the U.S. economy today.  NuScale, an Oregon company that is developing a small modular nuclear reactor (SMR), has passed the next stage of review by the Nuclear Regulatory Commission.

Progress for Small Nuclear Reactors

Cross-section of NuScale small modular reactor (world nuclear news)

As this blog has reported before, the mass development of nuclear power is a critical component to bringing the productivity of the U.S. economy out of the doldrums, and thus bringing us into a new era of prosperity.  High-speed rail, modernized water systems, the space program, and many other components of an economic recovery program depend upon generating huge amounts of electricity that are way beyond our current capacity.  Nuclear represents a leap in productivity that will allow us to get there, as well as a step on the way to the development of thermonuclear fusion.

NuScale’s design for an SMR has now gone through four phases of review. It still has to go through stages 5 and 6. According to the company’s press release, the Oregon-based company is partnering with the U.S. Department of Energy, as well as other companies. It has received support from Congress.

As I outlined in a post approximately one year ago, the promise of SMRs lies not only in their safety design, but in the fact that the United States still has the industrial capacity to produce them assembly-line fashion. Over the past 40 years, the heavy industrial capability for producing a standard-sized nuclear reactor (measured in hundreds of megawatts or over 1000) has been dismantled. But a small reactor of 12 to 50 megawatts could be produced in assembly-line fashion, and provide a flexible means of providing power outside major urban areas, including hard-to-reach regions.

The United States is not the only country working on SMRs, and some in the industry are seeking to motivate investment in NuScale on the basis of “beating the competition.”  Such peaceful competition has a huge positive payoff for the human race, and can only be encouraged. Thus NuScale’s progress with the NRC is most welcome news.

The NuScale press release can be read in full here.

Fruitful Cooperation: Ethiopia and China’s Belt and Road

Celebrating the inauguration of the new Addis Ababa to Djibouti railway on October 6, 2016, which I attended

 

China-Ethiopia dialogue highlights sustainable investment under BRI

BEIJING, Dec. 1 (Xinhua) — Ethiopia is hoping to attract more sustainable investment from Chinese enterprises as fruitful cooperations have been carried out under the Belt and Road Initiative (BRI).

At the China-Ethiopia High-Level Dialogue on Sustainable Investment held in Beijing on Friday, both Chinese and Ethiopian officials expressed their hope to consolidate collaborations to boost the achievements of sustainable development goals (SDGs).

Aschalew Tadesse Mecheso, a senior official with Ethiopian Investment Commission (EIC), said Ethiopia looks forward to more investment in the sectors of information and communication technology and light industries so as to create more jobs for young people who account for around 70 percent of the country’s population.

Aiming to facilitate knowledge exchanges and build networks to promote sustainable investment in Ethiopia, the event attracted over 200 participants from governments, industries, development agencies and think tanks.

Guo Xuejun with the Ministry of Foreign Affairs took the Addis Ababa-Djibouti Railway as an example of the fruitful cooperations between the two countries under the BRI.

Apart from the railway that has significantly shortened the time of transporting goods from Ethiopia to Djibouti, he also mentioned a new economic cluster that is emerging along the railway with the construction and development of several industrial parks.

China looks forward to working with Ethiopia to initiate more connectivity projects that are high-quality, sustainable, resilient, affordable, inclusive, accessible and broadly beneficial, Guo said.

The country is also dedicated to promoting trade and investment liberalization and facilitation, opposes protectionism and aims to make greater contributions to the implementation of the 2030 Agenda for Sustainable Development, he said.

Beate Trankmann, Resident Representative of the United Nations Development Programme (UNDP) in China, said the BRI’s key projects, which focus on connectivity and integration, could help unlock the funding and know-how to fulfill the SDGs, if relevant investments follow sustainability criteria and principles of the SDGs.

At the event, organized by the UNDP and supported by the Ministry of Foreign Affairs, China’s embassy in Ethiopia and the EIC, investors also discussed the opportunities and challenges to invest in Ethiopia

It Cannot Be Denied: China Helping Africa Realize Its Dream

Ethiopian Prime Minister Abiy Ahmed (L), Djiboutian President Ismail Omar Guelleh (C), and Sudanese President Omar al-Bashir (R) on Dec. 9, 2018, inaugurate a Chinese-contracted major road project as the Ethiopian government aspires to connect strategic towns in western Ethiopia. (Xinhua/Michael Tewelde)

November 28, 2019

China to help Africa realize “African dream” early: Chinese state councilor

Xinhua|-November 23, 2019  

China is willing to make every effort to help Africa get out of the “underdevelopment trap” and realize the “African dream” at an early date, Chinese State Councilor and Foreign Minister Wang Yi said here on Saturday.

Wang made the remarks while attending the Group of 20 (G20) Foreign Ministers’ Meeting in Nagoya, Japan.

According to him, lack of fund is the biggest challenge to Africa’s development, with an annual infrastructure investment gap of 100 billion U.S. dollars. China’s infrastructure projects in Africa generate more than 50 billion U.S. dollars in revenue every year, he said.

For example, the Mombasa-Nairobi Standard Gauge Railway has created nearly 50,000 local jobs, driving Kenya’s economic growth by about 1.5 percent, Wang said, adding that China-Africa cooperation is part of South-South cooperation and is mutual help between friends and brothers.

China attaches great importance to the debt issue, actively helps African countries improve their debt management capacity and provides necessary support when they encounter difficulties, Wang said. The two sides have made positive progress in jointly building the Belt and Road with high quality, he added.

The Belt and Road Initiative is highly compatible with the 2030 Agenda for Sustainable Development, the African Union’s Agenda 2063 and development strategies of African countries, forming a strong synergy for promoting common development, Wang said.

In order to better help Africa achieve sustainable development, it is necessary to focus on solving the three major development bottlenecks, namely lagging infrastructure, lack of talent and capital shortage, while solving the three livelihood issues of employment, food and clothing and health, he added.

In this regard, China will adhere to the principle of upholding justice while pursuing shared interests and the principle of sincerity, practical results, affinity and good faith, and work tirelessly to help Africa develop, Wang said.

China has helped Africa build more than 10,000 km of roads, over 6,000 km of railways and a large number of libraries, schools, hospitals and other livelihood facilities throughout the continent, greatly promoting local development, Wang said.

Meanwhile, more than half of the eight action plans and supporting financing announced at the Beijing Summit of Forum on China-Africa Cooperation last year have been implemented or seen concrete arrangements.

He called on developed countries to honor their commitments to Africa and provide tangible assistance in capital and technology among others. China is ready to work with all parties to give full play to respective advantages, jointly promote peace, stability and development in Africa and help African countries realize the “African dream” at an early date, he said.

Read: China Helps Africa To Realize African Dream

 

Africa and China Cooperate on Development and Eliminating Poverty

Minister in the Presidency Jackson Mthembu

November 8, 2019

Cabinet applauds Chinese investment push for attracting R116bn

31st October 2019 BY: AFRICAN NEWS AGENCY

The South African government on Thursday applauded the growing trade and economic relations with the People’s Republic of China, which has led to at least 88 Chinese companies investing massively in the country’s economy.

Addressing media in Cape Town on the outcomes of a Cabinet meeting held on Wednesday, Minister in the Presidency Jackson Mthembu said the growing two-way trade between Beijing and Pretoria has led to Chinese companies investing a capital expenditure of R116-billion from 2003…

Read: South Africa Cabinet Applauds Chinese Investment

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China’s capacity building support wins acclaim in Ethiopia

ADDIS ABABA, Nov. 4 (Xinhua) — Ethiopia on Monday commended China’s support to the East African country’s capacity development endeavors as the two countries set to mark 50 years anniversary of the establishment of diplomatic relations next year.

Tilahun Sarka, Director General of Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR), stressed the vital importance of China’s capacity development support at an event on Monday that marks the start of railway operations training for 47 Ethiopian train conductors.

Noting ongoing knowledge transfer activities that are jointly implemented by ERD, the Chinese government and the consortium of Chinese companies, Sarka also urged the new batch of trainees to effectively study train operations along with Chinese experts so as to realize the Ethiopian government’s ambition in building the East African country’s capacity in railway technology…

ReadChina’s capacity building support wins acclaim in Ethiopia

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President Xi Jinping Addressing China International Import Expo:  The Common Good of Humanity and Eliminating Poverty

Speaking at the opening ceremony of the Second China International Import Expo, President Xi Jinping discussed the continuing process of “reform and opening up,” but focused his remarks on an appeal for the world to come together for the common good.

“Of the problems confronting the world economy, none can be resolved by a single country alone. We must all put the common good of humanity first rather than place one’s own interest above the common interest of all. We must have a more open mindset and take more open steps, and work together to make the pie of the global market even bigger….

“All problems could be settled in the spirit of equality, mutual understanding and accommodation. We need to promote development through opening-up and deepen exchanges and cooperation among us. We need to join hands with each other instead of letting go of each others hands. We need to tear down walls, not to erect walls.”

“China’s development, viewed through the lens of history, is an integral part of the lofty cause of human progress. China will reach out its arms and offer countries in the world more opportunities of market, investment and growth. Together, we can achieve development for all. The Chinese civilization has always valued peace under heaven and harmony among nations. Let us all work in that spirit and contribute to an open global economy and to a community with a shared future for mankind.”

President Xi Jinping delivered his keynote address “in front of a countdown screen for winning the country’s battle against poverty,” Xinhua reported. China has so far lifted some 850 million people out of poverty, and intends to do the same with the remaining 20 million by the end of 2020. Xinhua went on to report that “Xi said China is ready to share its poverty relief experience with other countries and jointly build a community with a shared future for humanity featuring common development and the elimination of poverty.”

Read my recent post: CGTN: China Reaches New Stage of Development With CIIE

China & Russia-Africa Leads to Economic Growth; Not Debt Trap

Below you will read about the success of the second segment of Kenya’s Standard Gauge Railroad, and President President Cyril Ramaphosa’s firm refutation of allegations that a number of countries in Africa are being led into a debt trap by China and Russia

November 2, 2019

“Proponents of the New Paradigm in Africa have a new milestone to celebrate, with the opening of a new segment of the Mombasa-Kisumu Standard Gauge Rail (SGR) line in Kenya. On October 16, Kenyan President Uhuru Kenyatta led a celebration to open Segment 2A, a 120 kilometer (75 mile) extension from the capital (and current terminus) of Nairobi, to Naivasha, a large town northwest of the capital. Opening of this—admittedly rather short—segment nonetheless brings the SGR project one step closer to its planned destination: Kampala, the capital city of neighboring, landlocked Uganda.”

Stunning Progress

Kenya’s SGR project, the most advanced in Sub-Saharan Africa, began in 2014, when the country began construction of a modern, standard gauge (1.435 meter) rail line from the port of Mombasa on the Indian Ocean, northwest to the nation’s capital of Nairobi, a distance of 450 km (275 mi). Opened in 2017, on Madaraka Day—Kenyan Independence Day, when the people took political control of their destiny from the British Empire on June 1, 1963— the rail line has been a huge success, cutting transport and delivery time significantly for both goods and people. Exceeding expectations, the railway transported two million passengers within its first 17 months; and in 2018, its first full year of operation, carried over 5 million tons of freight.

The Mombasa-Nairobi line was initiated in 2009 discussion between the China Road and Bridge Corporation and the Kenyan government, as reported by P.D. Lawson in the April 27, 2018 EIR. China’s Exim Bank extended credit for 90% of the project. By May 2016, initial track laying was completed in just over 1 year. Passenger service was opened May 31, 2017, eighteen months ahead of schedule. Freight services commenced in January 2018. Plans are now underway to electrify the segment from Mombasa to Nairobi, which will greatly lower operating costs.

Benefits of the new, faster technology now extend far beyond mere transport, where the railway has taken hundreds of trucks (and buses) off the notoriously congested highways, making them safer and more useable for the population.

With the increased capacity and speed of freight transport, Kenya’s exports to the East African Community (including neighboring states Uganda, Tanzania and South Sudan) have hit a three-year high in the first eight months of 2019. Not only have government earnings from domestically produced goods increased 6% compared to 2018, but Kenya’s domestic consumption of electricity—certainly not a nation known for its over consumption of this resource—has increased 3.2% in the first 8 months of 2019.

Uhuru Kenyatta, President of the Republic of Kenya.
President Kenyatta has launched additional infrastructure projects, building on the Kenya Vision 2030 plan. In addition to the opening of SGR Section 2A on October 16, he has announced plans for construction of an inland container depot (ICD) at Naivasha (to store or transfer goods from rail to truck, or from SGR to the old meter gauge rail, MGR); a new 23 km expressway in Nairobi; and a water project in rural Kimuku (stemming from a natural spring accidentally discovered during construction of the rail line!). He wants to create a Special Economic Zone—to include the port of Mombasa—to further speed up freight delivery.

EIR magazine, Nov. 1, 2019: “Kenyan Standard Gauge Successful in Looking Beyond the Here and Now

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NEWS October 28, 2019

Russia-Africa Summit: African countries not being led into debt trap —South Africa’s Ramaphosa

President Cyril Ramaphosa on Monday refuted allegations that a number of countries in Africa are being led into a debt trap as they take up loans to fund a number of projects.

Ramaphosa said this during his weekly address from the Desk of the President in Cape Town, after returning from the Russia-Africa Summit held in Sochi last week.

“One need only look at initiatives such as the Forum on China-Africa Cooperation, which was last held in Beijing in 2018, to see that the focus is now on partnership for mutual benefit, on development, trade and investment cooperation and integration,” Ramaphosa said.

He lambasted remarks which label initiatives like the recent Russia-Africa Summit as an attempt by world powers to expand their geopolitical influence. African countries had taken part in the  summit to discuss ways of how to increase trade and cooperation between Russia and Africa. He said the summit was a sign of the growing economic importance of Africa on the world stage.

“What we are witnessing is a dramatic re-balancing of the relationship between the world’s advanced economies and the African continent,” he said.

African countries have consistently affirmed that Africa no longer wants to be passive recipients of foreign aid, said Ramaphosa. The president said African countries are developing and their economies are increasingly in need of foreign direct investment.

“We are ever mindful of our colonial history, where the economies of Europe were able to industrialize and develop by extracting resources from Africa, all the while leaving the colonies underdeveloped,” said Ramaphosa.

Even now, African countries are still trying to stop the extraction of its resources, this time in the form of illicit financial flows through commercial transactions, tax evasion, transfer pricing and illegal activities that cost the continent more than 50 billion dollars a year, according to Ramaphosa. The age where “development” was imposed from outside without taking into account the material conditions and respective requirements of our countries is now past, the president said.

“China, Russia, Organisation for Economic Cooperation and Development countries and other large economies are eager to forge greater economic ties with African countries. “This is because they want to harness the current climate of reform, the deepening of good governance, macro-economic stability and the opening up of economies across the continent for mutual benefit,” the president said.

 

Nuclear Energy Will Create Jobs and Raise Skill Levels in Africa

Left-Claver Gatet, Rwanda Minister of Infrastructure. Right-Alexy Likacheve, Director General of Rosatrom. Speaking at the Russia-Africa Summit in Sochi.

October 27, 2019

The article below from {World Nuclear News}, reports on important agreements with Russia to build nuclear power plants in Africa. Beyond providing energy, nuclear plants will provide jobs and new shill levels for the tens of million of young Africans entering the work force.  Along with China, Russia is assisting African nations in building vitally needed infrastructure, which they need to become industrialized, with productive manufacturing and agriculture sectors. This is very good news for the African continent.

Read: Nuclear Energy Can Bridge the Skills Gap in Africa

Excerpts below:

Speaking at the round table session titled The Contribution of Nuclear Technologies in the Development of Africa,  Alexey Likhachov  said:.

“We are talking about solutions related to raising the level of education, energy security, applying nuclear solutions to medicine, agriculture, as well as other scientific research and development. Every dollar invested in our projects in any country, brings two dollars in localisation to that country. This significantly increases the country’s GDP.”

Rosatom said a job is created for every 0.5 MWe of electricity produced at a nuclear power plant, meaning that a 1000 MWe plant provides employment for more than 2000 people. Human capital development is both “a condition and a consequence” of nuclear power plant construction projects, it added.

Through joint educational programmes, the Russian state nuclear corporation is attracting applicants from African countries to its partner universities in Russia, it said, and Rosatom has already awarded up to 50 scholarships to students from Rwanda and Zambia. They are among hundreds of other African students from countries such as Algeria, Egypt, Ethiopia, Kenya, Nigeria and South Africa, it added.

Development

Claver Gatete, Rwanda’s minister of infrastructure, said: “In order to grow our industries from 17% GDP to 30% GDP, and to achieve our ambition of becoming a high-income country by 2050, we want to take advantage of nuclear to enhance our socio-economic development.” Rwanda sees a clear link, he said, between nuclear technologies and the country’s vision of development.

Citing data from the World Economic Forum, Rosatom noted that 15 to 20 million young people are to enter Africa’s workforce in the next two decades, meaning that 15% of the world’s working-age population will be in Africa, with 60% under-25.”

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Glazyev Warns Africans About IMF Looting Policies

The Russian economist Sergei Glazyev, who was for years an economic adviser to President Putin and is today minister in charge of integration with the Eurasian Economic Union, spoke to the gathered leaders at the Russia-Africa forum
in Sochi, and warned them about the policies of the International Monetary Fund (IMF). According to Moscow Times, Glazyev reported that IMF policies had led to about $1 trillion in capital flight from Russia, and another $1 trillion or so from the other 14 post-Soviet countries over the last 30 years.

Glazyev said the IMF has adopted a similar approach in Africa as the former Soviet Union. “Of course, Africa has been exploited for much longer. We have been living in this financial and economic environment for only 30 years.” Moscow Times added that “Glazyev also advised African countries to keep full control over their natural resources and infrastructure, in line with his advocacy in Moscow for greater economic self-sufficiency.”

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

October 4, 2019

Below is a half hour video presentation on the importance of Alexander Hamilton’s credit policy for the development of Africa. The forum was organized by Watch Democracy Grow, an organization promoting democracy and development in Africa, and was filmed Afrique Today.

As I discuss in the video and article below, African nations need long-term and low interest lines of credit to finance trillions of dollars necessary for infrastructure projects across the continent.  Government backed authorities or the government itself can issued public credit in the amounts required. To provide credit for the newly united colonies, Hamilton designed the National Bank of the United States in 1791 at the request of President George Washington. It was a corner stone of the successful American System of Political Economy. Similar institutions are appropriate for African nations to finance vitally needed infrastructure today.  Applying the Hamiltonian model, the Belt and Road Initiative, promoted by China, is helping Africa build and finance infrastructure that is essential for African nations to industrialize and expand their agriculture and manufacturing sectors.

 

Read my article from March of this year: Nations Must Study Alexander Hamilton’s Principles of Political Economy

 

 

Can IGAD Achieve Peace Without Economic Development?

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

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By Mekki ELMOGRABI

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

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

Read: IGAD and Peace Trap!