Trump’s Aid Cut Harmful to Ethiopia and All of Africa

Artist rendition of the completed Grand Ethiopian Renaissance Dam

August 6, 2020

Trump’s Aid Cut Harmful to Ethiopia and All of Africa

By Lawrence Freeman

President Donald Trump has instructed Secretary of State, Mike Pompeo to pull back from a commitment to provide $100 million in security related aid to Ethiopia, a leading developing nation on the African continent. According to the New York Times, the State Department indicated this would be a “temporary pause” on some aid in response to “Ethiopia’s unilateral decision to begin to fill [its] dam before an agreement was reached…” This action by the Trump administration is more than an outrageous encroachment of Ethiopia’s sovereignty. It is an assault on the right of emerging nations to take actions to improve the living conditions of their people.

In response to the decision by the State department, Eyob Tekalign, Ethiopia’s state  finance minister said correctly, “We don’t think that the U.S. has thought this through carefully…We are hopeful that they will reconsider because Ethiopia is doing what is absolutely right and in all senses of the word legally, morally as well.”

The Ethiopian people have funded the $4.6 billion Grand Ethiopian Renaissance Dam (GERD) themselves. This fulfills a bold vision to develop their nation with the 6,200 megawatts (MW) of electricity that the dam will generate when completed. Ambassador Fitsum Arega aptly expressed the desire of the Ethiopian population, when he tweeted, “we will pull Ethiopia out of the darkness,” which is literally and metaphorically true.

Trump’s Bias

All indications are that President Trump acted on the insistence of Egyptian President el Sisi, who has claimed “historical rights” to the Nile River. In truth he is asserting “colonial rights” to the Nile bestowed on Egypt by the British Crown.

At the end of 2019, at the request of President el Sisi, President Trump instructed Treasury Secretary Mnuchin to act as an independent broker in discussions with Sudan, Egypt, and Ethiopia. Over four months, several meetings of the three Nile riparian nations were held in Washington DC discussing the “fill rate” of the GERD. There are legitimate concerns about how much water would be withdrawn annually in the next several years to fill the GERD’s reservoir of 74 billion cubic meters (bcm) of water. Technical issues like the rate of which water should be withdrawn from the Nile to fill the reservoir should be resolved by the three nations with the understanding that a functioning GERD will benefit all the people living in the Horn of Africa.

The heavy rains at the beginning of Ethiopia’s rainy season this summer have already filled the GERD with the required 4.5 bcm of water to test two turbines. This was accomplished without any reduction in the flow of the Nile.

As the tripartite discussions, with the US Treasury and World Bank in attendance continued into February 2020, it became clear that the US was “putting its thumb on the scale” for Egypt, in the words of retired US Ambassador David Shinn. By the end of February, Mnuchin secured an “agreement” regarding the Nile with Egypt, without the participation of Ethiopian representatives.  On February 28, 2020, an official statement from the US Treasury Department praised Egypt’s “readiness to sign the agreement,” and instructed Ethiopia that “final testing and filling should not take place without an agreement.” For more information read my earlier post: Africa Requires Ethiopia Fill Its Dam.

Eventually, the unresolved issue of the Nile shifted to the proper venue for African nations to settle disputes, the African Union. The dialogue has continued under the personal supervision of South African President, Cyril Ramaphosa, Chairperson of the African Union.

The GERD is built in Ethiopia on the Blue Nile River, which supplies 85% of the Nile when it joins the White Nile north of Khartoum, Sudan

Bringing Africa Out of Darkness

What President Trump does not understand; is that his “pause” in aid is not only harmful to Ethiopia, but it is detrimental to the entire African continent. Whether he is aware of it or not, is establishing a dangerous precedent in foreign policy, and not just for Africa.

Ethiopia, with a population approaching 110 million, has made a commitment to eradicate poverty. To that end, Ethiopia has embarked on erecting significant infrastructure projects in roads, railroads, and hydro-electric dams. The GERD has the potential to generate over 6,000 MW of power, doubling Ethiopia’s present capacity, and placing Ethiopia only second to South Africa in energy production in sub-Saharan Africa (SSA). Ethiopia would also become an energy exporting nation potentially providing electricity to neighboring South Sudan, Sudan, Kenya, Somalia, and Tanzania.

The root cause of virtually every crisis that African nations are facing today, including ethnic conflicts, can be traced to underdevelopment. This is especially true when one examines the dearth of hard infrastructure in SSA with a population nearing 1.5 billion that is projected to reach 2.5 billion by 2050. Electricity for SSA is estimated between 100,000-130,000 MW. This level of output is criminally deficient for a population over 1 billion, with 600 million Africans having no access to online electricity. The lack of electricity is literally a death sentence for millions of Africans.  Is this not a form of genocide?

Without abundant and accessible electricity Africa will not progress at the level necessary to provide for its present, much less its expanding population. Energy is the sine qua non for economic growth, and to eradicate poverty. It is required for; agriculture, producing fertilizer, pumping water, cleaning water, transportation, lighting hospitals, vaccine production and storage, shipping food in refrigerated cars, powering industry, constructing and lighting modern homes, schools and libraries. For Africans to enjoy the same access to electricity 24×7, as we experience in modern nations, Africa needs a minimum of 1,000 gigawatts or 1 million megawatts of electricity.

Does anyone in the Trump administration, or any individual in the leadership of the Democratic Party think on this level?

President Franklin Roosevelt signed the Tennessee Valley Authority Act-TVA on May 18, 1933. (courtesy inthesetimes.com)

What Roosevelt Would Do?

Rather than being threatened with cuts in aid, Ethiopia should be supported in its bold efforts to build and operate the GERD. A thoughtful US policy would be assisting all African nations in addressing the enormous multi-trillion dollar infrastructure deficit, with long term-low interest loans to finance massive investments in life saving infrastructure. Instead of President Trump and his foolish advisors hurling geo-political condemnations against China, it would be far better for the US to join China’s Belt and Road Initiative, which is building vitally necessary infrastructure in Africa and around the world.

Both the Democratic and Republican Party, including President Trump himself, from time to time utter fond references of President Franklin Roosevelt. However, I have found that no leader in either party has any comprehension of the genius of President Roosevelt’s economic policies. FDR as he is known, understood the importance of infrastructure. This was abundantly evident in his New Deal, his creation of the Tennessee Valley Authority (TVA), and his Good Neighbor policy. During the war he sternly reprimanded Winston Churchill for his Imperial-Colonial policies in Africa. President Roosevelt intended to end the British Empire’s political and financial control in the world. He had a vision to develop Africa, including greening the desert, with the same methods he had successfully implemented in the US: great infrastructure projects. I can assure you, that President Roosevelt would have championed and aided any developing nation that embarked on energy production.

Sadly, in the seventy-five years following the death of President Roosevelt, the only President, who had shown enthusiasm for the economic development of Africa, was John F Kennedy.

Let the Trump administration pause to rethink this wrongheaded policy that not only violates Ethiopia’s sovereignty, but undermines a strong US ally in East Africa. Let us recognize Ethiopia’s endeavors to improve the living conditions of its citizens, and pause again to ask, how would President Franklin Roosevelt respond.  His TVA harnessed the power of the mighty Tennessee River generating electricity to transform the lives of millions of poverty stricken Americans living in seven undeveloped southern States.  Is it not in the strategic interest of the US to support nations working to eliminate poverty in Africa using Rooseveltian methods?

Read: Africa Requires Ethiopia Fill Its Dam

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

Africa Requires Ethiopia Fill Its Dam

Artist drawing of the Grand Ethiopian Renaissance Dam

 

Africa Requires Ethiopia Fill Its Dam

Lawrence Freeman

July 17, 2020

Ethiopia is entering a crucial period for the future of its nation, as we approach the second half of July. Ethiopia must use the forthcoming rainy season (July to September) to begin the partial filling of its Grand Ethiopian Renaissance Dam (GERD) being built on Ethiopia’s Blue Nile River. When fully completed, the GERD, Africa’s largest hydroelectric project is capable of producing over 6,000 megawatts (MW). This is not only a game changer for Ethiopia, but will contribute to transforming the Horn of Africa.

The Blue Nile, which joins the White Nile just north of Khartoum, Sudan, provides 86% of the water that becomes the Nile River. From there, the Nile flows north through the deserts of Sudan and Egypt before emptying into the Mediterranean Sea.  Ethiopia has been involved in intense discussions with Sudan and Egypt, downstream from the dam, about the amount of water to be withdrawn from the Blue Nile to begin filling the GERD’s 76 billion cubic meter storage/reservoir. Egypt continuously attempts to forestall the filling of the dam, alleging that since it is dependent on the Nile, if the volume of the Nile is reduced, its citizens will suffer irreparable harm. For most of the last century Egypt has received the majority of the Nile River’s 84 billion cubic meters (bcm) of water.

Electricity for Development

The GERD, which is 75% finished was entirely funded by the Ethiopian people, is a $5 billion water infrastructure project initiated in 2011. Its purpose is to provide much needed electricity to power Ethiopia’s transition from an agrarian dominated economy to one that encompasses manufacturing and industry. In the years ahead, Ethiopia envisions become a light manufacturing hub for Africa, increasing manufacturing output, and manufacturing jobs by 440%.

The functioning of the GERD is not an option for this emerging nation of 110 million people, but a categorical necessity.

As a physical economist, who has studied Africa for decades, and knows the key drivers of economic growth, I can tell you that nothing is more vital for the survival of Africa, than the production of electricity.  Without abundant and accessible electricity, poverty and disease will not be eliminated. Poverty is the number one enemy of Africa and is the cause of immense suffering for hundreds of millions of Africans.

Approximately 600 million Africans, almost half of the continent’s population, are not connected to a central energy grid. The overwhelming majority of them reside in sub-Saharan Africa (SSA). More than 65 million Ethiopians, 40-45% of the population, do not have access to electricity. While Ethiopia suffers from one of the lowest per capita levels of electrical energy consumption, Egypt’s population of 100 million has 100% access.

When completed, the GERD will increase Ethiopia’s power generation from its current level of 4,500 MW to close to 11,000 MW, which will make it the second largest energy producer in SAA, behind South Africa. Ethiopia has already entered into agreements to export its excess electricity to other nations in East Africa.

“The Ethiopians officials have announced an annual investment of one billion dollars over the next decade in the development of specialized industrial parks.” (Courtesy Medafricatimes.com)

Ethiopia’s commitment to construct the GERD resonates with the same vision that compelled the nation to build the Addis-Ababa to Djibouti rail line; to expand their economy, eliminate poverty, and provide a meaningful future for their expanding young population.

While Ethiopia is blessed with several water systems, the Blue Nile provides between 70% of its surface water. Ethiopia suffers from water shortages, droughts, and food insecurity due to inadequate infrastructure and under development.

It is true that Egypt has one of the lowest water per capita consumption rates in the world at 570 cubic meters per year, well below the global average of 1,000. Ethiopia’s amount is a mere 125 cubic meters per capita, barely more than 20% of Egypt’s level.

However, the Ethiopia government has plainly stated that the intention of the GERD is not to provide water for irrigation or consumption. The motivation and sacrifice of the Ethiopian people in undertaking this mega infrastructure project is to provide electrical power for the purpose of developing their nation. Ethiopia intends on becoming a low-middle income nation. It can no longer allow its people to be without electricity, relegated to burning wood. Improving the lives of their citizens today and future generations is the objective of an operational GERD.

Blue Nile joins White Nile in Khartoum, Sudan

 

Sovereignty Versus Colonialism  

The Blue Nile descends from Lake Tana, deep inside Ethiopia’s mountains, traveling through Ethiopia before entering Sudan. The GERD will capture Blue Nile waters about 40 meters before the Sudanese border. Ethiopia intends to fill the dam’s reservoir with 14.5 bcm of water over the first two years for testing. The withdrawing of this amount from the Blue Nile’s 49 bcm will not adversely affect downstream nations (Sudan, Egypt). In fact, the GERD will benefit these nations by regulating the flow of the Nile, preventing flooding, reducing silt, and decreasing evaporation.

Ethiopia has the wonderful distinction in Africa of having never been colonized. Unlike my beloved American July 4th, celebrating our independence from the British Empire, Ethiopia has no Independence Day. Instead, Ethiopia celebrates Adwa Day, March 1, 1896, when they defeated the Italian army on the battlefield in northern Ethiopia. Yet Ethiopia is fighting the remnants of British colonialism today in its determination to generate energy to free its people from the bondage of poverty.

Contrary to Egyptian claims, the negotiations between Ethiopia, Egypt, and Sudan are not about water sharing or water allocation. There have been two water allocation agreements regarding the Nile waters, that involved only Egypt and Sudan. Ethiopia was not a signatory nor participants to either accord, yet Egypt asserts historical rights over the Nile River, including Ethiopia’s Blue Nile. The most recent such agreement was in 1959, three years after Sudan’s independence from Britain, which recodified the 1929 British Imperialist agreement guaranteeing 55 bcm of Nile waters to Egypt and 18.5 bcm to Sudan. At the time of the 1929 Anglo-Egyptian Treaty, both Egypt and Sudan were colonies of Great Britain as stipulated by the 1899 Anglo-Egyptian Condominium.  This treaty also “granted Egypt veto power over construction projects on the Nile or any of its tributaries in an effort to minimize any interference with the flow of water into the Nile.”

To maintain geo-political domination and control of trade along the eastern spine of Africa, Britain maintained authority over the Nile waters from Cairo down to Khartoum and beyond into southern Sudan.

Ethiopia, an independent nation was not subject to Britain’s edicts and retained sovereignty over the Blue Nile.

Thus, from whence does Egypt’s historical claim to dominance of the Nile originate.

In a statement signed by the Reverend Jesse Jackson, sent to the Honorable Congresswoman Karen Bass, Chair of the Black Caucus, dated May 19, 2020, Rev. Jackson reveals that Egypt’s “historical rights” over the Nile are derived from the British Queen.

He cites a letter dated May 7, 1929, from Mahmoud Pasha, Chairman of the Egyptian Council of Ministers, to the British requesting affirmation of Egypt’s “natural and historical” rights to the waters of the Nile. Lord Lloyd, Britain’s High Commissioner in Cairo, responded on behalf of the Queen:

“I would like to remind your Excellency [Mahmoud Pasha] that her Majesty’s Government in the United Kingdom has already recognized the natural and historical rights of Egypt to the waters of the Nile. I am entrusted with the responsibility of declaring that Her Majesty’s Government in the United Kingdom considers the observance of these rights as a fundamental principle of the policy of Great Britain.” 

Rev. Jackson stresses in his letter, that Ethiopia should not be pressured “into signing a neo-colonial agreement will make Egypt a hegemon over the Nile River.”

U.S. Gets Involved

In September, Egyptian President Al-Sisi requested U.S. assistance in negotiating the operation of the GERD. President Trump asked Treasury Department to host a series of meetings in Washington DC, beginning in November 2019. Sudan, Ethiopia, and Egypt attended along with a representative of the World Bank, with Treasury Secretary Mnuchin, to act as an impartial observer, not a mediator. Ethiopia compromised by indicating they would extend the filling beyond 3 years, to 5-7 years and increased the amount of water to be released from 35 bcm to 40 bcm in seasons of healthy rain. With the negotiations failing to lead to a resolution, Ethiopia requested to postpone the February 27-28 meeting. The meeting proceeded without Ethiopia. Sudan and Egypt attending, but Egypt alone initialed an agreement prepared without Ethiopia’s input, which the Ethiopia Foreign Ministry characterized as “unacceptable and highly partisan.”

On February 28, 2020, an official statement from the US Treasury Department praised Egypt’s “readiness to sign the agreement,” and instructed Ethiopia that “final testing and filling should not take place without an agreement.” The next day, Ambassador Shinn (ret), former ambassador to Ethiopia, whose has spent decades in the State Department, questioned whether the U.S. was “putting its thumb on the scale in favor of Egypt.”

In a June 22, 2020 bipartisan letter addressed to Ambassador David Hale, Undersecretary of State for Political Affairs, seven former Assistant Secretaries of State for African Affairs, asked the U.S. to embrace neutrality regarding the GERD talks. They wrote:

“The U.S. position at this sensitive juncture will also have long term implications. It will either strengthen or seriously weaken our future relations with Ethiopia. While there is no question that resolution of the Nile issue will require flexibility and compromise on all sides, it is not politically viable for Prime Minister Abiy (or any Ethiopian politician) to indefinitely delay filling the GERD. However, the perception—rightly or wrongly—that the United States has sided with Egypt in the negotiations will limit our ability to support efforts aimed at reaching a settlement.”

President Cyril Ramaphosa, Chair of the African Union convening the teleconference on the GERD

 Discussions Move to Africa

Egypt, not satisfied with the negotiating process, attempted to involve the United Nations in forcing an agreement on Ethiopia that violated its sovereignty over the GERD. On June 29, 2020, Egypt with the support of the U.S. brought the matter to the United Nations Security Council (UNSC). The UNSC is not the normal forum to settle such matters, but Egyptians were hoping to mobilize international pressure against Ethiopia. The UNSC has instead preferred to have the African Union (AU) resolve the issue of Ethiopia’s right to operate the GERD. On the previous Friday, June 26, the Extraordinary African Union Bureau of the Assembly of Heads of State and Government conducted a video-teleconference meeting on the Grand Ethiopian Renaissance Dam (GERD). Chairperson of the African Union Commission, Moussa Faki Mahamat noted that more than 90% of the issues between Egypt, Ethiopia, and Sudan had been resolved.

South African President, Cyril Ramaphosa, in his capacity as the Chairperson of the AU is committed to have “an African led process in the spirit of African solutions to African problems.”

In a June 23rd statement, the U.S. Congressional Caucus emphasized the pivotal role of the AU in these tripartite negotiations. They went on to discuss the importance of the GERD for Africa.

The GERD project will have a positive impact on all countries involved and help combat food security and lack of electricity and power, supply more fresh water to more people, and stabilize and grow the economies of the region.”

The Conference of Black Mayors, in a June 29th statement, expressed their support for the filling of the GERD

“Today, on behalf of global leaders throughout the African diaspora that hold the office of mayor, the Conference of Black Mayors released the following statement in support of the Grand Ethiopian Renaissance Dam (GERD) and the impact GERD would have on Conference of Black Mayors member cities…

“It is known that Ethiopia generates 86% of the Nile waters but has been unable to use this considerable natural resource effectively in the past. Now, following more than a decade of impressive economic growth, Ethiopia desires to utilize its naturally endowed resource for its nation’s critical growth and development. Countries throughout Africa are in dire need of electric power to enable and sustain their respective nations rise out of poverty. The creation of a sustainable energy source will create a national infrastructure that directly contributes to the wellbeing of citizens our mayors represents through our global mayors’ association…

“We strongly support a timely fill of the dam without further delays to avoid the economic impact on Ethiopia and neighboring countries.”

 Ethiopia is desirous to cooperate with downstream nations, but it will not have its sovereignty violated by having the operation of the GERD jointly managed or contingent on the requirements of water for Egypt’s downstream High Aswan Dam.

Ethiopia should and will begin filling the GERD. It would be irresponsible not to use this year’s rainy season to begin filling the reservoir, with the dam already 75% constructed. Ethiopia’s leadership will not disappoint the aspirations of the Ethiopian people, who view the GERD as emblematic of their national identity, and a critical vehicle to raise their standard of living and secure a more prosperous future for their posterity.

Ethiopia’s use of the word Renaissance in describing its new dam is not metaphorical. When fully functional, the GERD will lead to a rejuvenation of Ethiopia’s economy and that of its neighboring nations.

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

 

Is the Trump Administration Violating Ethiopia’s Sovereignty?

(Courtesy Ethiopian Foreign Ministry FACEBOOK)

Is the Trump Administration Violating Ethiopia’s Sovereignty?

Lawrence Freeman

March 10, 2020

In the first week of March, representatives of President Trump’s administration presented conflicting responses on Ethiopia’s right to operate the Ethiopian Grand Renaissance Dam (GERD) for the production of electrical power for the nations of East Africa. The construction of the GERD is over 70% complete and is expected to commence operation in 2021, with a capacity to generate 6,200 megawatts of electricity.  The GERD built near the border of Sudan, will be filled by water from the Blue Nile, that flows from Lake Tana, located in the mountainous region of Ethiopia. Ethiopia cannot be deprecated for exercising its sovereign right to exploit its most important resource, water, for the benefit of its people, and neighboring African nations.

Ethiopia and the two downstream nations, Sudan and Egypt, have been involved in discussions that now primarily focus on the “fill rate”-how much water is withdrawn each year from the Blue Nile to fill the GERD’s 79 billion cubic meter reservoir. Egypt is justifiably concerned about how the reduced flow of the Blue Nile resulting from filling the reservoir will affect the level of water reaching Egypt’s High Aswan Dam.  The Blue Nile contributes 85% of the Nile’s volume of water when it joins the White Nile just north of Khartoum.

Without harming downstream nations, the GERD requires a minimal fill rate to permit the generation of electricity. Egypt, claiming that filling the GERD reservoir with water from the Blue Nile will cause hardship for its people, has made excessive demands on Ethiopia to guarantee an unreasonable allocation of the Nile’s water. This is principally an issue to be resolved by the engineers in the technical committees of the three nations.

Since December, the Trump administration has hosted, several meetings of the three nations in Washington, under the auspices of the US Treasury Secretary, Steve Mnuchin. Secretary Mnuchin’s involvement was to be as a neutral observer, not a mediator. However, recent written and oral statements from Mnuchin, and the Treasury Department, has called into question the impartiality of the US. Retired Ambassador David Shinn’s blog of February 29, he questioned whether, the United States seems to be “putting its thumb on the scale in favor of Egypt.”

Mnuchin Not Impartial

Following the decision by the Ethiopian delegation not to participate in the February 27-28 meeting with Sudan and Egypt, Mnuchin publicly tipped his hand in favor of Egypt. In a February 28th letter, the U.S. Department of the Treasury wrote that Egypt initialed an agreement on the GERD, and instructed Ethiopia that “final testing and filling should not take place without any agreement.”  Feb 28 letter by Secretary of the Treasury on the Grand Ethiopian Renaissance Dam.  The truth is, there is no existing document to be initialed or signed, because such an agreement can only come about as the fruitful result of the participation by the representatives of all three nations.  Mnuchin, has no legal or political authority to instruct Ethiopia about the functioning of the GERD.

The next day, on February 29, Ethiopia’s Ministry of Foreign Affairs rebuffed Mnuchin’s letter: “The ‘text’ reportedly initialed by the Arab Republic of Egypt in Washington D.C. is not the outcome of the negotiation or the technical and legal discussion of the three countries.” The Foreign Ministry wrote: Ethiopia as the owner of the GERD will commence first filling of the GERD in parallel with the construction of the Dam in accordance with the principles of equitable and reasonable utilization and the causing of no significant harm as provided for under the Agreement on the Declaration of Principles (DoP).”

On March 3, testifying before the House Ways and Means committee, Mnuchin was even more blatant in his disregard for Ethiopia’s sovereignty over the GERD. Congressman Steven Horsford (D-Nev) asked Mnuchin to correct the narrative that the US is not trying to impose its will on Ethiopia and requested a balanced approach towards all the core nations involved. Mnuchin brazenly responded, “Ethiopia should not fill the dam until there is an agreement signed.” Presently, Egypt, Sudan, and Ethiopia have not formulated any agreement to be signed. Clearly, Mnuchin has without any mandate, expanded his role as a neutral moderator to an advocate for Egypt’s position.

(Courtesy of Yale Environment 360)

State Department Doesn’t Agree

On the very same day that Mnuchin was infringing on Ethiopia’s sovereignty, another branch of the Trump administration, the U.S. State Department, had a different response to the GERD negotiations. On March 3, the Woodrow Wilson Africa Program sponsored a forum, The Trump Administration and U.S. Africa Policy: What has been accomplished and what lies ahead? The speaker was Tibor P. Nagy, Jr., Assistant Secretary, Bureau of African affairs, an experienced ambassador to Africa. I was able to question him about the US position towards Ethiopia. Specifically, I asked, since President extols national sovereignty for the U.S. and repeatedly exalts “America First,” wasn’t it a double standard to deny Ethiopia the same sovereign rights regarding the GERD? Nagy then flatly contradicted Mnuchin, when he answered, “What I can say is that the U.S. has consistently said we are neutral in that whole business.” Nagy’s boss, Secretary of State Mike Pompeo, in Addis Ababa on February 18, said “A great deal of work remains, but I’m optimistic that over the coming months we can resolve this.” Clearly Nagy and Pompeo are not operating on the timetable of President Trump and Mnuchin who wanted the deal resolved by the end of February.

Sudan Differs With Egypt and Arab League

Mnuchin’s letter of February 28, implies that Sudan supported the so called agreement written without Ethiopia’s participation. Sudan in fact refused to add its initials to those of Egypt on the agreement. This indicates that it was only Egypt, just one of the three nations involved, who with Mnuchin, took this stance.

According to an article from Middle East News Agency (MENA), Sudan rejected a resolution from the Arab League supporting Egypt’s position regarding the GERD on March 5. MENA reports that Sudan, “asked not to include their name in the decision [resolution], and added that decision is not in Sudan’s interest…”   (emphasis added.) At the Arab League Summit, Sudan formally withdrew its name from the resolution criticizing Ethiopia.

Ethiopia’s Ministry of Foreign Affairs responded to the Arab League resolution in a strongly worded statement on March 6. They wrote, “Ethiopia expresses its profound appreciation to Sudan’s principled position that helps advance win-win solutions for all parties involved through a commitment to open dialogue. Ethiopia reiterated that it “has the right to use its Nile water resource to meet the needs of the present and future generations.” March 6 Statement on Arab League

Africa Needs Energy

Once the GERD is completed, it will have the capacity to produce 6,200 megawatts of electrical power. This will benefit not only the people of Ethiopia, but also those nations of the Horn of Africa and beyond. Sub-Saharan Africa needs energy, and lots of it-minimally 1 million additional megawatts. It is a matter of survival. Without abundant and accessible electricity, African nations will not develop, and thus be subjected to various forms of destabilization due to rising unemployment of its youth and persisting poverty. Ethiopia has taken a bold step in constructing the largest hydro-electric dam in Africa intended to develop the Nile River Basin. All existing difficulties can and must be resolved in a dialogue among the three principal nations, who share this majestic historic waterway, the birthplace of ancient civilizations.

There is no intrinsic conflict between Ethiopia and the down stream nations of Egypt and Sudan, as Sudan has already implicitly recognized.

It is appropriate here to repeat what I wrote last October: “How many years will it take to fill the GERD’s reservoir, and what will be the flow rate of the Nile at the Aswan Dam, are yet to be resolved. These are technical matters that scientists and engineers must continue to examine in an atmosphere of good will and good faith. Such cooperation is essential to promote the common interests of all nations for a prosperous Nile Basin.” Grand Renaissance Dam Essential for Africa’s Economic Growth

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

 

Are the US and Egypt Violating Ethiopia’s Sovereignty Over The Blue Nile?

March 2, 2020

Below Ambassador David Shinn raises the concern that the US is supporting Egypt in limiting Ethiopia’s sovereign right to to use the Grand Renaissance Dam to provide desperately needed hydro-electric power for the Horn of Africa.

Grand Ethiopian Renaissance Dam: What Role is the U.S. Playing?

Posted: 29 Feb 2020 The U.S. Department of the Treasury posted on 28 February 2020 a “Statement by the Secretary of the Treasury on the Grand Ethiopian Renaissance Dam.”

U.S. Treasury Secretary Steven Mnuchin at the request of President Trump has been meeting since early this year with representatives of Egypt, Sudan, and Ethiopia in an effort to reach an agreement on the fill rate of the reservoir behind Ethiopia’s large hydropower dam on the Blue Nile River known as the Grand Ethiopian Renaissance Dam (GERD). The dam is about 70 percent complete. The Blue Nile provides more than 50 percent of the water that eventually reaches Egypt via the Nile River. While the reservoir behind the dam is being filled, it will hold back water that would normally flow to Sudan and then Egypt. It is essential that the fill rate not harm Sudan and Egypt. But it is also essential to fill the reservoir in a manner that will allow Ethiopia to produce hydropower without unreasonable delays.

The statement by the Treasury secretary is strange in that it appreciates the readiness of Egypt to sign the U.S.-brokered agreement, which is not part of the public record, but warns Ethiopia that “final testing and filling should not take place without an agreement.” Ethiopia has not yet signaled that it is prepared to accept the agreement and, apparently, neither has Sudan. The United States seems to be putting its thumb on the scale in favor of Egypt. Perhaps it is time to make the agreement public so that everyone can see what the United States is proposing.

The fact that the U.S. Treasury Department is in charge of this effort is surprising. In any other administration, the State Department, which actually has expertise on this issue, would broker the agreement. So I wonder. What is the United States up to?

Progress on Gerd-Nile River Talks in Washington With Ethiopia, Egypt, Sudan and US

Courtesy of  Ambassador Fitsum Arega’s Twitter

January 17, 2020

Progress was made by Egypt, Ethiopia, and Sudan, who met in Washington DC for three days this week from January 13-15, supported by the administration of President Trump. They will meet again from 28-29, in Washington to finalize their agreement.

Ethiopian Ambassador, Fitsum Arega, wrote on Twitter:

“Meetings of Egypt, Ethiopia & Sudan in Washington mark major breakthrough & new chapter of their historic relations. 

GERD (Grand Ethiopian Renaissance Dam) will help bring economic integration among 3 countries: Egypt, Ethiopia & Sudan.

GERD will provide long term mechanism for their Common Destiny of Collective Prosperity, under the Guiding Principle : Cooperation for Mutual Benefit!

I would add that cooperation on the GERD and Nile River system will benefit all the nations of the Nile Basin

The final paragraph of the joint communique reads: “The Ministers recognize the significant regional benefits that can result from concluding an agreement on the Grand Ethiopian Renaissance Dam with respect to trans-boundary cooperation, regional development and economic integration that can result from the operation of the Grand Ethiopian Renaissance Dam.  The Ministers of Foreign Affairs reaffirmed the importance of trans-boundary cooperation in the development of the Blue Nile to improve the lives of the people of Egypt, Ethiopia, and Sudan, and their shared commitment to concluding an agreement.”

Read: Joint Communique of GERD and Nile River

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?

____________________________________________________________

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.

Ethiopia Celebrates Launch of First Satellite-Science is the Driver of Economic Growth

Ethiopia Launches First Satellite into Space from China
Ethiopia’s satellite orbiting the earth. (courtesy of africanexponent.com)

December 22, 2019

Space exploration is an essential driver of economic growth. Mankind’s discovery of new physical principles of the universe leads to the creation of new technologies, which transform economies to higher levels of production of physical wealth.  It is science and assimilating new technologies like fission and fusion energy that are the  engines of real economic growth; not money or stock values. Exploration of space stimulates the mind and breeds optimism.  

“Ethiopia’s first satellite was sent into space on Friday, a landmark achievement for the ambitious country that also caps a banner year for Africa’s involvement in space.

“A Chinese Long March 4B rocket hoisted the first Ethiopian Remote Sensing Satellite (ETRSS-1) aloft from the Taiyuan space base in northern China.

“Scores of Ethiopian and Chinese officials and scientists gathered at the Entoto Observatory and Research Centre outside the capital, Addis Ababa, early Friday to watch a live broadcast.

“The 70-kilogramme (154-pound) satellite was developed by the Chinese Academy of Space Technology with the help of 21 Ethiopian scientists, according to the specialist website africanews.space…

“For us as a society, we are valuing this launch as something which lifts our national pride,” Paulos said.

“You know, this is a very poor country. Many in the younger generation don’t have big hopes of reaching space. But today we are giving this generation hope, helping this generation to think big and have self-esteem.”

Read: Ethiopia Celebrates Launch of First Satellite

____________________________________________________________

Nuclear Energy is Necessary for Africa’s Growth

Russia’s Rosatom already is building a $29 billion nuclear plant complex for Egypt, and the company is also helping Nigeria, Uganda, the Republic of Congo, and Rwanda establish nuclear facilities. The El Dabaa Nuclear Power Plant in Egypt will have four VVER-1200 reactors, or water-water energetic reactors, which are Russian-designed Generation III+ reactors. Russia is financing 85% of the project with a loan of about $25 billion to Egypt, and Egypt is paying the remaining 15% over a period of 13 years, wrote Darrell Proctor in Power on Dec. 2.

Africa’s only current operating nuclear power plant is the 1.8 GW Koeberg Nuclear Power Station, north of Cape Town, which is owned and operated by Eskom, South Africa’s power utility. The plant recently had its operational period extended for another 20 years from 2024 when it was originally supposed to be decommissioned.

African nations are trying to increase their power generation capacity on a continent that has long struggled to sustain reliable power. The International Energy Agency recently reported that 57% of Africa’s population still does not have easy access to electricity, and those with access to power deal with frequent power outages.

African nations desperately  need nuclear power for their survival. Without access to plentiful energy,  people will die and nations will not develop.

 

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.”

________________________________________________________

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.”

Grand Renaissance Dam Essential for Africa’s Economic Growth

Artist rendition of Grand Ethiopian Renaissance Dam-GERD

Grand Renaissance Dam Essential for Africa’s Economic Growth

Lawrence K Freeman

October 14, 2019

Completion and operation of the Grand Ethiopian Renaissance Dam-(GERD) will profoundly affect not only the future of Ethiopia, but all of the Horn of Africa, and the entire African continent. It reflects the bold visionary thinking that characterizes Ethiopia’s unwavering determination to eradicate poverty in the second largest nation on the continent with 103 million people. Ethiopia has been a leader in economic growth for the last decade due to its unparalleled commitment to constructing new infrastructure projects. Although an emerging nation, Ethiopia with assistance from China, completed the Addis-Ababa to Djibouti railroad in October 2016. This is the first and only electrified rail line in sub-Saharan Africa- (SSA), reducing travel time from several days by truck to hours by rail, effectively freeing Ethiopia from the limitations of a landlocked nation via Djibouti’s port.

Ethiopia’s former Prime Minster, Meles Zenawi, who conceptualized the developmental state, proposed building a dam on the Blue Nile, laying the first foundation stone on April 2, 2011. Thus, initiating the construction of a massive hydroelectric dam on the Blue Nile that will be the largest in Africa. The GERD will be 175 meters tall, 1,800 meters wide, with a reservoir of 79 billion cubic meters-(BCM), more than twice the size of the Hoover Dam in the US. It will have the potential to generate upwards of 6,200 megawatts (MW) of electricity. Upon completion, Ethiopia will be the largest net exporter of electricity in Africa with transmission lines to its neighbors that include Sudan, South Sudan, and Kenya. Ethiopia will also become second only to South Africa in power generation in SSA, as it strives to achieve its interim goal of producing 15,000 MW. The GERD, self-financed by bonds sold to the Ethiopian people, is not only a source of tremendous pride, but an indispensable component of Ethiopia’s resolve to expand its manufacturing sector and become a “middle income” nation by 2025. A nation must have abundant and accessible electricity in order to power an industrialized economy. With more than 60% of its population deprived of access to electricity, and energy demands growing every year, Ethiopia wisely realized that utilizing the potential hydro-power of the Blue Nile to drive its economic growth was not an option; but a necessity.

Sovereignty Superior to Colonialism

 Egypt is accusing Ethiopia of violating the 1959 agreement for utilization of water from the Nile River, which stipulated that 55.5 BCM of waters be allocated to Egypt, 18.5 BCM to Sudan and that no other nation could interfere with the flow of water in the Nile.  There is no basis in law or physical topography for Ethiopia to adhere to this agreement for the following reasons:

  • The 1959 water agreement is a rewrite of the British imperialist 1929 water treaty, when Egypt was a British colony that governed Sudan under the Anglo-Egyptian Condominium (1899-1956).
  • The Blue Nile flowing from Lake Tana in the Ethiopian highlands that joins the White Nile in Khartoum, provides 85% of the Nile water as it travels north through Egypt to the Mediterranean Sea.
  • Ethiopia, as an independent nation that was never colonialized, was not a signatory to either water agreement.
  • Ethiopia has the sovereign right and obligation to utilize its natural resources, in this case water, to improve the living conditions of its people.

The Nile River, although the longest in the world at 6,650 kilometers, is not the most voluminous. Historically, the Nile was the only water way to cross the Sahara Desert from SSA. Today ten nations in Eastern and Central Africa are part of the Nile Basin with their total population approaching 500 million, whose present and future needs exceed the 84 BCM of Nile water. For development of the Nile Basin, it is urgently required that:

  • a new approach to water management for the region, which supersedes the archaic colonial agreement.
  • a new system for generating additional water. A crash program to create billions of cubic meters of fresh water through desalination is an obvious solution.

In essence, a “second Nile” must be created. Nuclear energy, utilizing its higher heat source, would be ideal for removing salt through evaporation, and, equally as important, supplying thousands of megawatts of power to energy-starved nations.

Ethiopian Prime Minister Abiy Ahmed, Awarded Nobel Peace Prize 2020 (Courtesy of MGN.TV)

Shared Common Interest

The Declaration of Principles, signed in Khartoum on March 23, 2015 by the heads of state of Egypt, Sudan, and Ethiopia calls for cooperation among the three nations to resolve disputes concerning the GERD among themselves. The report states: “The Three Countries shall cooperate on the basis of sovereign equality, territorial integrity, mutual benefit and good faith in order to attain optimal utilization and adequate protection of the River.”

The shared vision of the Nile Basin should be to promote prosperity for all the nations involved. The common shared interest of the upstream and downstream nations is one and the same: to uplift millions of Africans out of poverty and present the expanding youth population with economic opportunities to obtain a meaningful and productive life that secures a future for their families.

 Egypt’s foreign minister, Sameh Shourky warned Ethiopia: “Ethiopia’s moving forward with the operation and filling of the Renaissance Dam is unacceptable and a clear violation of the Declaration of Principles and will have negative consequences for stability in the region.” Within Egypt threats of military action have recently resurfaced, but such unwarranted aggression is highly unlikely, and would be roundly condemned by the international community.

According to Xinhua News, Egypt is looking for the United States to play an “international instrumental role,” a position presently not supported by the US State Department. Egypt’s attempt to bring in an outside party to mediate disputes concerning the Nile waters is in direct violation of the Declaration of Principles.

Exercising its sovereign rights, Ethiopia has already completed 60% of the construction of the GERD, and although there have been delays, it is expected to begin producing electricity by the end of 2020. Egypt has no choice but to accept this reality and continue to engage discussions regarding the management of the Nile.  There are substantive legitimate issues respecting the effects of the GERD on Egypt, a downstream nation that is almost totally dependent on Nile water. However, Ethiopia’s sovereignty over the Blue Nile is inviolate. In 2018 the National Independent Scientific Research Group-(NISRG) was established to discuss the filling of the dam’s reservoir. The NISRG consisting of scientists from Sudan, Egypt, and Ethiopia, has met several times, and has reported to the Minister of Water Affairs of each nation.

How many years will it take to fill the GERD’s reservoir, and what will be the flow rate of the Nile at the Aswan Dam, are yet to be resolved. These are technical matters that scientists and engineers must continue to examine in an atmosphere of good will and good faith. Such cooperation is essential to promote the common interests of all nations for a prosperous Nile Basin.

Read:  Modernghana.com Grand Renaissance Dam Essential for Africa’s Economic Growth.

Lawrence Freeman is a Political Economic Analyst for Africa with thirty years of experience in Africa promoting infrastructure development policies.

China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?

June 20, 2019

Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations. 

{Independent}: Belt and Road Contributing to Prosperity in Africa

A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo.

Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open
countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.

German Mittelstand Supports New Silk Road

China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17.

“The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms.

Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated.

“The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.”

Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded.

“The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a forum later this year in Germany on the BRI for partners to establish project-related contacts.