China and US Should Jointly Partner with Africa to Transform the Continent

It has been my firm belief for several years that, if China and the US jointly partnered with African nations, we can eliminate poverty and hunger across the continent. Development of Africa is not a “zero sum game.” Africa’s infrastructure deficit is estimated in the trillions of dollars for energy, rail, ports, roads, new waterways, and much more. There is no part of Africa that could not be developed, if the two largest economies worked with African nations. China’s Belt and Road Initiative is an excellent vehicle for such collaboration between Presidents Xi, and Trump. Below is a useful article reporting on US and Chines companies working together in Africa

AFRICA IN FOCUS

“American companies and Chinese Belt and Road in Africa”

Yun Sun 

“When it comes to Africa, it is no secret that the United States and China have very different philosophies. China adopts a more state-led approach, with state-owned enterprises and policy banks spearheading Africa’s infrastructure development. The U.S. is more willing to let private companies and the market take the lead on commercial development, while the U.S. government itself puts more emphasis on the continent’s capacity building and governance challenges…

“As China expands its Belt and Road Initiative (BRI) in Africa, government-level U.S.-China cooperation in Africa continues to be scarce. However, this trend contrasts sharply with the growing collaboration between Chinese and American companies in infrastructure projects on the continent. Indeed, although the Chinese projects and financing have the tradition of favoring Chinese contractors and providers, the technical advantages of some American companies have made them the beneficiary of the Chinese BRI campaign…”

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China’s Global Times Highlights Flaws of US and Europe Policy Towards Africa

By Mark Kapchanga
June 26, 2018

Illustration: Liu Rui/GT

On June 18 in Michigan, US Secretary of State Mike Pompeo addressed a meeting under the umbrella of the Detroit Economic Club. In a question that seemed to have made him a tad uncomfortable, the secretary of state was informed that Africa appeared to be evolving and transforming rapidly, and further, China was asserting itself in the continent.

He rightly confirmed that Africa is facing two issues. One is extremist groups threatening to tear apart the continent’s fabric of unity. But the second issue is the opportunities that lie in Africa. It is here that Pompeo seems to have stained his otherwise well researched address to the people of Michigan. With obvious jealousy that is always expected from Western countries against China’s foray into Africa, Pompeo downgraded Africa’s growth potential that is underpinned by significant Chinese investments and trade by saying that Africa will see actual growth with a Westernized model of development.

He meant that the foundation for growth in Africa is the rule of law and property rights. In his usual way of disparaging China, Pompeo further claimed that Chinese trade and investments are about exercising political influence in Africa.

African countries and their leaders have grown sick and tired of such stereotyped thoughts coming from Western nations. History has proved that America and European countries are behind Africa’s underdevelopment. They not only colonized Africa but also stripped it of resources and displaced people from their lands.

This is described by Walter Rodney in his book How Europe Underdeveloped Africa where he argues that the short period of colonialism and its negative consequences for Africa spring mainly from the fact that the continent lost power. Rodney notes that power is the ultimate determinant in human society, and implies that one should have the ability to defend one’s interests and if necessary impose one’s will by any means available.

There is no doubt that when the question of power emanates, it determines one’s bargaining power, the degree to which a people survive as a physical and cultural entity. But as Rodney vividly says, “when one society finds itself forced to relinquish power entirely to another society, that in itself is a form of underdevelopment.”

Instead of Western powers always complaining about China’s presence in Africa, they should transform and improve their strategies for the continent. The old template they applied to Africa is already stale. Africa cannot be developed through conditionalities that only massage the whims of America and Europe.

Through the International Monetary Fund and the World Bank, Europe and America bullied African countries for more than three decades. Those nations seeking access to the General Account of the Fund had to commit themselves to explicit conditions regarding the conduct of their international policies.

Ultimately, African countries in need of financial support to boost their infrastructure, education and health failed to do so as the conditions were too tough. Globally, economists termed the conditions inefficient and mistargeted.

With the urge for greater development, China filled in the void. Its support to Africa has been less bureaucratic and almost without conditions.

As Pompeo and his fellow Western leaders continue complaining about China and its relations with Africa, youths in the continent are grinning having secured jobs in various projects being pursued by China. In Kenya, for instance, thousands of youths continue to earn an income from the construction of the standard gauge railway whose construction is now being extended from Nairobi to Naivasha.

The enormous investments China is pursuing in Addis Ababa have totally transformed the face of Ethiopia, a country once ranked among the poorest in the world. Today, Ethiopia is the only country in Africa that can manufacture its own leather shoes, thanks to support from China. This is the kind of friendship Africa has been yearning for.

Africa’s development can only be shaped by Africans. Europe and the US can therefore involve African leaders in designing the kind of investments and relations that fit them. If they continue condemning China on its relations with Africa, the continent’s ties with Beijing will only get stronger and thrive all the more.

The author is an economist specializing in China-Africa relations. Twitter: @kapchanga opinion@globaltimes.com.cn

 

 

Chinese Economic Engagement in Africa: New Silk Road on the Continent

“The closest look yet at Chinese economic engagement in Africa”

June 2017
The closest look yet at Chinese economic engagement in Africa

Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.

In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies.

Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.

Africa’s largest economic partner

In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years.

We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.

Africa’s economic partners, including China, India, France, the United States, and Germany, based on goods trade, foreign direct investment, aid, and infrastructure financing

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China Helps Ethiopia Build ‘Industrial Belt’

Ethiopian attendants walk along a train at the Lebu station in Addis Ababa, capital of Ethiopia, Jan. 1, 2018. (Xinhua/Michael Tewelde)

“Ethiopia takes inspiration from China’s success for own development”

Ethiopian attendants walk along a train at the Lebu station in Addis Ababa, capital of Ethiopia, Jan. 1, 2018. (Xinhua/Michael Tewelde)

ADDIS ABABA, May 10, 2018 (Xinhua) — Ahmed Shide, Minister of Ethiopia Government Communications Affairs Office (GCAO), told Xinhua that China hasn’t only become Ethiopia’s top economic partner but a model for Ethiopia’s economic ambitions.

Learning from Chinese economic growth experience, Ethiopia will have about 15 industrial parks by June, most of them built with Chinese money and expertise.

Ethiopia has also heavily invested with Chinese assistance in road, rail and air infrastructures to alleviate transportation problems for Ethiopia’s exports.

Shide said landlocked Ethiopia has seen China’s success in having an efficient and effective infrastructure to facilitate exports from industrial parks and as such is building a “development belt” to copy the Chinese success story.

The “development belt” will see Ethiopia build industrial parks located along the path of existing or under-construction rail lines to speedily transport products made in industrial parks to ports in neighboring Djibouti.

After reaching Djibouti, the products are then loaded and shipped to their final export destinations including China.

About half of the 15 industrial parks Ethiopia is constructing or has constructed are located along the 756kms Ethio-Djibouti electrified rail line built with Chinese expertise and finances at a cost of 4 billion U.S. dollars.

The rail line which recently started commercial operations has cut transportation time for Ethiopian goods to Djibouti ports from two days to 10 hours, giving a leg up for Ethiopia’s economic dreams of becoming a light manufacturing hub in Africa and middle-income economy by 2025.

Shide said Ethiopia is also looking to further boost ties with China on air infrastructure, as the Asian economic powerhouse is the single largest market for its national carrier Ethiopian Airlines (ET).

ET currently flies to five destinations in China — Beijing, Shanghai, Chengdu, Hong Kong and Guangzhou, and plans to add Shenzhen as its sixth destination in June.

With China working on being an airplane manufacturing center, Shide adds he foresees ET will soon be a customer of fully developed Chinese airplanes.

LEARN MORE FROM CHINA

With Ethiopia utilizing Chinese hard infrastructure expertise and money to support its ambitious economic plans, Gedion Jalata, CEO at Center of Excellence International Consult, an Ethiopian consulting firm, told Xinhua Ethiopia should also be learning from Chinese success in creating a meritocratic bureaucracy.

“China succeeded in bringing out of poverty 700 million people in 30 years not just because it built physical infrastructure, but it worked on its human capital helping create an efficient state bureaucracy, that’s a soft infrastructure Ethiopia should build,” Jalata said.

He said there are simple things the new Ethiopian administration of Prime Minister Abiy Ahmed can do if Ethiopia is to effectively learn from China’s remarkable economic development.

“Ethiopian leadership, just like Chinese leadership, should have the political will, determination and commitment to meet the country’s economic ambitions,” Jalata added

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“China committed to strengthen relations with Ethiopia”

Chairman of the National People’s Congress of China (NPC) and speaker of the congress, Li Zhanshu, confirmed that his country is determined to strengthen its diplomatic relations and continue its multi-faceted development support for Ethiopia.

On an official state visit in Ethiopia since Wednesday, the chairman met and conferred with different officials of the Ethiopian government including the president, the prime minister and speakers of both the House of People’s Representatives (HPR) and House of Federation (HoF) over bilateral and mutual interest.

Apart from this, the chairman has also signed an agreement of loan and humanitarian assistance.

In this regard, the chairman met with President Mulatu Teshome (PhD) on Thursday to discuss bilateral and regional issues. According to Meles Alem, spokesperson of the Ministry of Foreign Affairs (MoFA), the chairman confirmed that China gives priority to the bilateral ties with Ethiopia and needs Ethiopia to continue its pivotal role in Sino-Africa partnership.

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East-West Railroad Would Transform African Continent

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

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

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

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

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

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

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

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

US Congress Disgraces Itself in Vote Against The Nation of Ethiopia

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

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

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

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

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

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

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

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

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

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

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

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

Zimbabwe President Mnangagwa: China Helps African Nations To Develop Faster

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

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

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

Uganda Plans To Develop Its Uranium Reserves, and Go Nuclear

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

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

China Will Help Africa Green Its Deserts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China has Drafted a Partnership Agreement for Algeria

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

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

 

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

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

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

Pippa Morgn, The Diplomat

March 20, 2018

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

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

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

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

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

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

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

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

What’s in it for Beijing?

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

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

Why Engagement Not Estrangement is the Key

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

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

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

Read entire article in The Diplomat

Learning About Africa: How History Effects the Present

Here is the announcement for my newest college course on Africa. Also listed is the course outline a class I am currently teaching; “Africa:The Sleeping Giant.”  I will be preparing a third course on “The Effects of British Colonialism on Africa” in the near future.  These courses are 15 hours long, taught over 7-10 weeks in Maryland. 

“Eight Nations Vital to the Development of Sub-Sahara Africa”

By Lawrence Freeman

The African continent encompasses 54 nations and is more than three times the size of the United States. The northern portion of the continent is dominated by the Sahara Desert, equal in area to that of United States. It is the driest, hottest place on earth, relatively barren, and thinly populated. The African nations below this vast desert are designated as “Sub-Saharan Africa” where approximately one billion live, and is expected to double in population by 2050.

All but two of the 48 nations of Sub-Sahara Africa suffered the brutalities of colonialism following centuries of slavery. As a result, Sub-Sahara Africa is the poorest and most underdeveloped region in the world. Unfortunately, following their liberation from colonialism beginning in 1956, these nations did not achieve economic sovereignty. However, now, for the first time since colonial powers occupied Africa, there are signs of progress with the building of new railroads, expanded ports, roads, and new hydro-electric power projects. This has created the potential to transform the continent.

This course will focus on eight Sub-Saharan nations; each unique in their history, development, and their contribution to the growth of Africa. Their combined population of 550 million comprise almost 30% of the land area of Africa.

Join us in examining the following nations from their birth to the present day: Ghana, Nigeria, Sudan, Ethiopia, Kenya, the Democratic Republic of the Congo, Zimbabwe, and South Africa. Over three decades, I have studied the history and developed an in-depth knowledge of Africa as a researcher, analyst, writer, and consultant. Sadly, most Americans know little about Africa, due to a limited number educational courses, and a reliance on the media. I hope to increase your understanding by sharing my accumulated knowledge with you.

 

 

“Africa The Sleeping Giant” Course Outline:

1-Discovering the Africa Continent

2-Africa: Home to Mankind

3-Man Is Not a Monkey

4-The Great Bantu Migration

5-Early Civilizations

6-Europe Discovers Africa

7-Slavery Rips the Soul of the Continent

8-Colonialism, Exploitation, and Genocide

9-Economic Sovereignty and the Nation State

10-Africa’s Future is Development

 

 

 

President Trump’s Fundamentally Flawed Africa Policy

By Lawrence Freeman,

January 4, 2018

After nearly a year in office, the outline of President Donald Trump’s policy for Africa has emerged as fundamentally and seriously flawed. In a similar manner to his predecessors, Presidents Clinton, Bush, and Obama, Trump’s African strategy suffers from a conceptual deficiency in its failure to recognize that the most fundamental human right is the right to life. Every human being is morally entitled to live a healthy, productive, meaningful life with the hope that the future will be an improvement over the present.  If one examines the outlines of policy by President Trump and the State Department, such a guiding and indispensable principle is conspicuously absent. For Africa, where the largest number of people endure the greatest hardships of life of any continent, the absence of a full-throttled U.S. commitment to eliminate poverty and hunger as an essential feature of a strategic policy, is damning, and must be remedied.

To ensure a prosperous future for what will be the most populated continent on the planet in 2050, by which time the population is expected to double, from 1.2 billion to 2.4 billion people, President Trump should emulate China’s infrastructure-led development program.

The Trump administration is expected to reduce State Department and USAID-funded programs, among others, beneficial to Africa. Not to overlook the potential harmful effects of these cuts, there is a more fundamental shortcoming to Trump’s policy. Like his recent predecessors, he is ignorant of, or ideologically blind, to understanding what is required to accelerate economic growth across the African continent. Africa needs, infrastructure, infrastructure, and more infrastructure, particularly in the vital categories of energy, rail, roads, and water management. Trump has been especially eager to support increased military deployments and kinetic warfare against violent extremists in Somalia, the Sahel, and northeast Nigeria. However, any competent and honest military leader knows an effective counter-terrorism effort must include economic development. If the Sahel, were not a barren, underdeveloped desert, the various terrorist militia would not be able so easily to occupy this region for their base of operations.

Security and Free Trade: Inadequate for Africa

The African continent has the greatest deficit in all categories of infrastructure on the planet. Thus, not surprisingly, Africa has the largest number of people living in poverty; living without the basic necessities of life.  According to a 2016 World Bank report on poverty, Sub-Saharan Africa has the largest percentage of people, 41%, living in extreme poverty. That translates into the largest number of poor at 389 million, just over 50% of 767 million worldwide living below the poverty line of $1.90 per person per day. Yet despite all the hype about Africa’s “rising lions,” referring to African nations with high growth rates of GDP, the number of people living in poverty is Sub-Saharan Africa is increasing.

Look at one critical area: access to energy which is the lifeblood of an economy. Abundant grid energy, accessible to all sectors of society, can transform an entire nation and lift its population out of poverty. Conversely, the lack of energy kills. According to “Energy Access Outlook 2017,” of the 674 million people, globally, expected to be without access electricity in 2030, over 600 million, or 90%, will live in Sub-Saharan Africa. For the developing sector nations in Asia and Latin America, the percentage of the population expected to have access to electricity by 2030 is 99% and 95% respectively, while for Sub-Saharan Africa, it expected to be 50% or less.  In Sub-Saharan Africa, the number of those without electricity is increasing, unlike like all other populations in the world. Africa requires a minimum of 1,600 gigawatts of electrical power to have same the standard of living as advanced nations.

In a related classification, cooking energy, the picture is also abysmal. Almost 80% of the people living in Sub-Saharan Africa do not have gas or electric stoves; instead they cook with solid biomass, i.e., solid waste, animal dung, wood, saw dust, wood chips, etc. This is not only destructive to the environment, but to human labor as well. I have witnessed, on numerous occasions in my travels throughout Nigeria, young girls collecting firewood and then carrying it on their heads for sale in the market. In Mali, young men are destroying trees to be used in the primitive method of charcoaling, aiding the expansion of the desert.

President Trump’s Africa policy of security/counter-terrorism first, followed by trade and investment, fails to address Africa’s underlying depressed conditions of life which allow violent groups to easily recruit. People who can’t feed their families or provide the minimal necessities of life, and see no hope in the future, are led to violence out of manipulation and despair. Trade and investment, as proposed by the Trump administration, are not the solution.

Africa suffered greatly from 500 years of slavery and colonialism, 1450-1960. Following the initial success of the independence movements, the financial predators moved in to loot the continent’s vast wealth in natural resources. Extractive industries provide revenue, but they do not add/create wealth or generate a significant number of jobs. Africa doesn’t need more investors intent on making profits under the guise of applying the distorted “laws” of free trade and the marketplace. African nations require real economic growth that creates added value, increases the total wealth of society, and provides productive jobs to the restless masses of unemployed youth.

In 2014, Africa’s share of value added in global manufacturing is reported to be a pitiful 1.6%.  This sorrowful state of economy can and must be reversed. The manufacturing process is vital for every healthy economy. It adds wealth by transforming natural resources into finished and semi-finished products to be either consumed domestically or exported. This requires technologically advanced capital equipment, and skilled labor, all embedded within an integrated platform of infrastructure. State-directed credit and long-term, low-interest loans invested into critical areas of the economy, such as infrastructure, are indispensable for the growth of a manufacturing sector. Witness previous successful periods of economic growth in the U.S. (and in China today); these were accomplished through public credit, not hedge fund speculators and Wall Street day traders.

The most valuable natural resource of Africa, is not its mineral wealth, which is the target of the financial and mining/commodity predators. Rather, its greatest natural resource is its immense quantities of arable, yet to be cultivated land, along with the abundant water sources in its numerous lakes and river systems.  Africa is capable of feeding its people and eliminating hunger. It can also potentially help feed Asia, if properly developed with a manufacturing sector, and food-processing industries, coupled with a massive expansion of infrastructure.

What Does China Know About Africa That the U.S. Doesn’t

Over the last thirty-five years, China has lifted over one-half billion of its citizens out of poverty. This has been accomplished by massive state-directed investment into essential categories of infrastructure, along with its deep commitment to advance its economy through attaining new levels of science and technology. Both Chinese President Xi Jinping and Premier Li Keqiang have publicly stated their desire to help African nations eliminate poverty. This universal mission by the leadership of China, expressed concretely in the “Spirit of the New Silk Road,” has led to a revolution in joint infrastructure projects in Africa. New railroads are being built across the continent, replacing colonial locomotives and tracks built over one hundred years ago. On the East Coast, an entry zone for the Maritime Silk Road, new and expanded ports, with connecting rail lines vectored westward into the interior of the continent, are creating the potential for a fundamental transformation of the economies of several African nations including; Ethiopia, Sudan, Kenya, Tanzania, Uganda, Rwanda, and Djibouti.

The “ChinaPower Project” reports that between 2000 and 2014, China funded 2,390 projects across Africa totaling $121.6 billion, just over one-third of China’s total global financing. In Africa, 32% of the financing went for transportation projects and 28.5% for energy.

“Dance of the lions and dragons” a study completed by McKinsey & Company in 2017, analyzed privately owned Chinese companies operating in Africa. They estimated that there are 10,000 such private Chinese businesses that have committed $21 billion to infrastructure, which is more than combined total of the African Development Bank, European Commission, World Bank, International Finance Corporation, and the G-8 nations. And 31% of these companies are involved in manufacturing which accounts for 12% of Africa’s industrial production—valued at $500 billion.

Conclusion

The U.S., along with the other Western powers, virtually abandoned the nations of Africa as soon as they had overthrown their colonial masters. President John F. Kennedy stands out among U.S. presidents, following the death of Franklin Roosevelt, as a champion for the newborn African nations. His collaboration with Ghanaian President Kwame Nkrumah in the early 1960s to construct the Volta Dam Hydro-electric Aluminum Smelting Complex is a singular moment in U.S.-Africa relations over the last six decades.  America lost its vision for development, resulting in its refusal to build the power plants, dams, railroads, and ports that Arica needs. China has made a commitment to Africa and now is contributing to the most expansive building of new infrastructure the continent has ever seen.

President Trump’s recently released National Security Strategy (NSS) is totally hypocritical: it attacks China for becoming Africa’s largest partner, and accuses China of undermining “Africa’s long-term development.” Trump’s NSS expresses the same old British geopolitical mentality of winners and losers competing in a zero-sum war for global hegemony.

Throughout my travels in Africa, I have found expressions of affection for America and its ideals; even among those nations that the U.S. has abused. That positive attitude is beginning to wane. However, it is not too late for the U.S. to chart a new course, one of cooperation with China and Africa to transform the continent.  Saving Lake Chad from extinction and transforming the Lake Chad Basin, is an urgent task for such a tripartite cooperation.