Leaders Emphasize Rail & Electricity is Pathway to Industrialization of Nigeria

Proposed Africa Integrated High Speed Rail (HSR) Network

October 9, 2025

This is my second post on the 2nd International Railway Conference held in Abuja, Nigeria, September 15-16, 2025. My presentation, Railroad Expansion Imperative, Not Optional, For the Future of Nigeria and Africa was delivered on the second day of the conference. I discussed the significance of this conference from the perspective of my profession, physical economy.

On the first day of the conference, Minister of Transportation, Sen. Said Ahmed Alkaliin, and Minister of State for Petroleum Resources, (Gas), Rt. Hon Ekperikpe Ekpo, PhD, addressed the gathering of over 1,000 attendees. They highlighted the necessity for Nigeria to expand its railway system, and utilize its abundant gas reserves to industrialize Nigeria, the most populace nation in Africa. Their presentations are excerpted below.

As a physical economist, I have emphasized for decades the importance of infrastructure, in particular, energy and rail transportation. These are the two most critical categories of hard infrastructure essential for African nations to become  industrialized, replete with advanced agricultural and manufacturing sectors.

Both ministers appropriately underscored at this conference, Nigeria’s intention to use its energy resources and its expanding rail system, including a high speed rail line, to achieve  industrialization. As a result, Nigeria will become a pivotal nation in West Africa and advance, The African Continental Free Trade Area (AfCFTA).

Vice President of Nigeria, Sen. Kashim Shettima-(3rd from left), Minister of Transportation, Sen. Said Ahmed Alkali-(3rd from right), with other dignitaries attending the conference.

Excerpts from Min. of Transportation

Today we meet not only to review progress, but to re-imagine the railway as a cornerstone of Nigeria’s transportation which is recognized as enabler of economic growth across jurisdictions.

This Conference seeks to assemble railway experts, industry players, and other stakeholders to share knowledge and experience across jurisdictions on emerging trends, funding opportunities, and prospects of railway services as catalyst for national development. This discussion will maximize the potential of the railway sub-sector as viable option for boosting commerce through geographical mobility and general economic growth through connectivity and collaborations.

I am glad to inform you that the Renewed Hope Agenda of President Bola Ahmed Tinubu Administration has accorded special priority to transportation in recognition of the above reality credited to transportation as gateway to the nation’s economy.

In this regard, I have considered it most expedient to highlight few key achievements by the Ministry under this Administration to expand the scope of discussions during technical sections and attract useful output to enhance the transport sector, thus:

  • Facilitate accelerated execution of the 203km Kaduna-Kano on going rail modernization project from 15% at the inception of the Administration to 53%; and the 387 km Kano–Maradi, with extension to Dutse from 5% to 60%.
  • While the Kaduna-Kano project will be ready for completion and commissioning by December 2026, the Kano-Maradi project will reach Katsina by December this year and be ready for completion and commissioning by March 2027.
  • Successful completion of rehabilitation of Lagos-Kano Old Narrow Gauge for freight of goods from the seaports to connect to Dala Inland Dry Port to put it to use.
  • Attracted foreign investors for the construction of high speed rail from Abuja-Lagos, Abuja-Kano, and Abuja-Port Harcourt, to boost nation’s infrastructural development and revenue generation profile.

Lawrence Freeman with Minister Uba Maihari Ahmadu, Ministry of Regional Development, discussing economic development plans for North East Nigeria

Make the Railway an Economic Tool, Not Just an Asset: The focus must shift from construction alone to ensuring rail corridors serve agriculture, industry, mining, and commerce.

Around the world, railways have always been more than a transport mode. They are nation builders and Engines of Economic Transformation: In Europe, railways enabled industrial revolution. In China, they powered urbanization and export growth. In Africa, railways are emerging as the backbone of regional integration.

The African Continental Free Trade Area (AfCFTA) presents an enormous opportunity. But without efficient logistics, our businesses cannot compete. That is why Nigeria’s Kano–Maradi corridor is more than a railway project, it is a gateway to West Africa’s markets, opening access for Nigerian goods into Niger Republic and beyond.

As we modernize our railways, we are also positioning Nigeria as a logistics hub for West and Central Africa.

Let us envision a Nigeria where:

Our ports are seamlessly connected to factories by rail; Our highways are relieved of endless trucks; Our youth are employed building and running trains; Our neighbors see Nigeria as the hub of African rail logistics.

This is not a dream. It is a future within our grasp if we work together. Ladies and Gentlemen, the railway is the track of Nigeria’s future linking our economy, uniting our people, and securing our place in Africa and the world.

Minister of State for Petroleum Resources, (Gas), Rt. Hon Ekperikpe Ekpo, PhD

Excerpts from Min. Petroleum Resources, (Gas)

This conference is historic, not only because it brings together some of the brightest minds in infrastructure and transportation, but also because it unveils Africa’s most ambitious rail project: a 4,000 kilometer high-speed rail network capable of reaching speeds of up to 350 kilometers per hour. This bold initiative will redefine connectivity across Nigeria and Africa, opening new frontiers for trade, investment, and industrial growth.

Nigeria’s story of development is incomplete without acknowledging her natural endowments. With over 209 trillion cubic feet of proven natural gas reserves and a potential upside of more than 600 trillion cubic feet, Nigeria is rightly positioned as the Gas Capital of Africa, and among the top ten globally.

For decades, our economy relied on crude oil as its mainstay, while gas resources were underutilized. Gas has been repositioned as the centerpiece of Nigeria’s economic strategy — transforming it from a by-product of oil into the foundation of our industrial and economic future.

Gas is more than an energy resource; it is the engine of industrialization. It powers manufacturing, fertilizer production, petrochemicals, power generation, and clean cooking. Importantly, it also provides a sustainable and affordable energy solution for capital-intensive infrastructure like railways.

British built, old narrow gauge railway system now being refurbished.

High-speed rail requires clean, reliable, and cost-effective power. Nigeria’s abundant gas resources provide that strategic solution. By expanding gas-powered electricity and fueling logistics, industries along rail corridors — including fertilizer plants, petrochemicals, material production, and compressed natural gas hubs can flourish. This will transform rail-connected cities into vibrant centers of industry, commerce, and competitiveness, while strengthening Nigeria’s role under the African Continental Free Trade Area (AfCFTA).

These opportunities align perfectly with the Renewed Hope Agenda, which prioritizes industrialization, job creation, poverty reduction, sustainable development, and infrastructure expansion.

As Nigeria leads Africa in pioneering high-speed rail, we must remember that the true engine of this transformation is energy. With our vast natural gas reserves, Nigeria can power her railways, light up industries, create new jobs, and unlock fresh opportunities for her people. This is not just about energy transition — it is about building a bridge to Nigeria’s industrial and economic prosperity.

Let us, therefore, embrace the synergy between energy and infrastructure. With visionary leadership and unwavering commitment, we can transform Nigeria into a hub of innovation, productivity, and inclusive growth.

May this conference mark the beginning of a new chapter for railway development and economic transformation in Nigeria and across Africa.

(all emphasis added)

Read below my earlier posts on this topic:

The African Integrated High Speed Rail Network-(AIHSRN) Will Revolutionize Africa’s Economies

Nigeria Expands Railroads and Strives for Self Sufficiency in Rice

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for 35 years. He is a teacher, writer, public speaker, consultant on Africa, and an analyst of global strategic relations. Mr. Freeman strongly believes that economic development is an essential human right. He is the creator of the blog: lawrencefreemanafricaandtheworld.com, also publishes on: lawrencefreeman.substack.com, “Freeman’s Africa and the World, and on X @lfreemansafrica

Railroad Expansion Imperative, Not Optional, For the Future of Nigeria and Africa

October 1, 2025–celebrating the 65th anniversary of Nigeria’s liberation from British colonialism

Below are edited remarks by Lawrence Freeman, addressing the second day of “2nd International Railway Conference and Expo 2025.” More posts will be published on this website highlighting presentations on railway development in Nigeria, by Ministers of Transportation, Petroleum Resources, the Vice President of Nigeria, and others.

Welcome ladies and gentlemen. All protocols observed.

I want to thank the Ministry of Transportation for this opportunity to speak to you today on this critical topic.

I.  Let me introduce myself

I am not new to Nigeria. I first arrived in Africa at the Lagos airport in June 1994, at the invitation of a friend of mine from Kaduna. Over the last 31 years I have been here many times, maybe  15 or 16 visits. I spoke at the Second Economic Summit in Abuja in 1995. I met Professor Sam Aluko, a great economist. I also became acquainted with then General Buhari, who was head of the Petroleum Trust Fund under General Abacha. For several decades I advocated a program to transform Nigeria and a substantial portion of Africa with a great water infrastructure project called, Transaqua. It would transport water via a 2,400 kilometer canal from the Congo River to recharge Lake Chad. In the course of this I met the Executive Director of the Lake Chad Basin Commission, Engineer Sanusi Abdullahi, and we collaborated with the former minister of water and resources, Suleiman Adamu. I discussed this proposal  with President Buhari several times, which he supported. We organized a conference in Abuja in 2018, a three day International Conference to Save lake Chad, and plans were made to implement this recharging of the shrinking lake. Unfortunately, it never happened, but as you can see, I have a long personal history with Nigeria.

This conference on railway development for Nigeria is of extreme importance. Railways and electricity are the two essential categories of hard infrastructure necessary for economic growth. Investment in railways for Nigeria is imperative. Africa needs an additional 100,000 kilometers of rail lines connecting all the major cities, ports, and manufacturing centers across the continent. The nations of Africa also require over 1,000 gigawatts of additional electricity to power their industrial economies. These two categories of infrastructure are not optional. The African Continental Free Trade Area (AfCFTA) will not reach its full potential without massive investments in these two essential categories of hard infrastructure.

Lawrence Freeman addressing the 2nd International Railway Conference. Abuja, Nigeria, September 15-16. 2025

III.  Infrastructure and Physical Economy

What do I mean by physical economy? Let us look at the economy independent of monetary values. Let us look at the physical economy as a living, willfully expanding dynamic process, which serves to increase the standard of living of the population. In physical economy we are measuring physical inputs and outputs of physical goods, per capita and per square kilometer. How do we make sure that the output in physical wealth is greater than the input? By increasing the productive powers of our workforce. We measure the effects of the “increasing powers of labor” of our economy by the improvement of the material quality of life of our citizens. This will also result in extending the longevity of life, and the ability to expand the number of people sustained by that society while simultaneously improving their standard of living.

Infrastructure is an intervention into the environment. It is an intervention to alter-improve nature for the benefit of humankind. We do not measure the success of infrastructure merely on the basis of immediate financial return of that particular investment. But more importantly we measure the effects of infrastructure on the profitability of the entire economy.

Infrastructure properly understood is a precondition for the successful continuous economic growth from the present into the future. Infrastructure transmits value through the technological inherent design of the infrastructure itself. Whole economies rest on an integrated infrastructure platform. That is: water, rail, roads, energy, etc., make up a platform which is the foundation of an economy. Therefore, the quality and density of infrastructure determine the productivity of the economy. Every worker and every farmer become more productive by the density of infrastructure in the surrounding economy. .

For example. The completion of the proposed multiple East-West and North-South railroads connecting Africa, which was earlier discussed by Rowland Ataguba, would have a transformative effect on the entire continent; all the nations in Africa would benefit. Another example to look at is the recently inaugurated Grand Ethiopian Renaissance Dam, which I recently visited in May of this year, and is now complete. It has the capacity to generate 5,150 megawatts of power and actually prevent flooding and severe drought on the Nile. It benefits not just the Horn of Africa, but the nations of the Nile Basin, and East Africa as well.

The proposal of building 4,000 kilometers of High Speed Rail in Nigeria, which was discussed yesterday at this conference, would also be transformative by introducing an advanced technology of transportation into the economy. These types of physical infrastructure interventions on the African continent typify what is required.

Lawrence Freeman with the Minister of Transportation, Sen. Said Ahmed Alkail, host of the conference

IV. Density of Rail

In physical economy we examine rail density: the total kilometers (kms) of rail lines divided by the land area involved, measured in square kilometers (km2). For historical reasons I compare Nigeria with the United Kingdom, which is behind other European nations in infrastructure.

Nigeria has 3,798 kms of rail lines across a land area of 932,768 km2, yielding a real density of only 4.1 kms of rail per 1,000 km2 of land. The United Kingdom has 16,430 kms of rail lines across a land area 244,376 km2, yielding a rail density of 67 kms of rail per 1,000 km2 of land. As you can see, rail density per area in the United Kingdom is 15 times greater than Nigeria. The African Union estimates that rail density in Africa is only 2.5 kms per 1,000 km2. While globally, the average is 23 kms per 1,000 km2, rail density in some nations of Europe have five times that average.

Now let us examine another key measurement in physical economy; rail density per capita. That is the length of rail lines divided by the number of people inhabiting that land area.

Here we divide the same 3,789 kms of rail lines by the Nigerian population of approximately 237 million people. The per capita rail density in Nigeria  is .016 kms rail lines per person. When we look at the United Kingdom with 16,430 kms of rail lines divided by their population of 66.3 million people, their per capita rail density is .24 kms per person. Rail density per capita in the United Kingdom is 15 times greater than Nigeria.

Proposal to build in Nigeria 4,000 kilometers of High Speed Rail-(215 miles per hour).

V.  Density of Electricity

We will now examine another essential area of infrastructure from the standpoint of physical economy.

Per capita consumption of electricity is measured in kilowatt hours, with a kilowatt equal to 1,000 watts. The average Nigerian has 142 kWh-142,000 watts of electricity available during the entire year, which is less than 20 watts of electricity per hour, per person. The United Kingdom generates 4,135 kWh per capita, which is 472 watts per person. The discrepancy with the United States is even greater, with the United States generating 12,747 kWh per capita, which yields 1,455 watts per person every hour of the year.

Examining density of electricity per area, Nigeria generates .015 megawatts (million watts) per 1,000 km2 of land area, compared to .67 megawatts per 1,000 km2 of area for the United Kingdom–44 times greater.

Artist rendition of the newly inaugurated, Grand Ethiopian Renaissance Dam

VI.  Reality and Optimism

It is estimated that worldwide, 692 million people live in extreme poverty–less than $2.15 per day. In sub-Saharan Africa it is estimated that 464 million people live in extreme poverty. It is reported that Nigeria has 129 million people living in extreme poverty, which is 19% of the world total.

However, the good news is that humankind has already proven that it  knows how to eliminate extreme poverty. China has lifted over 700 million people out of poverty. How did they do this? By having a focused policy of building infrastructure and expanding the manufacturing sector. This is a great accomplishment coming from an agrarian based economy that was severely underdeveloped two generations ago. Therefore, I can say with confidence that we can eliminate poverty in Africa, if we apply today, known methods of physical economics.

There is a scientific basis for optimism in Nigeria and Africa. This is based on my understanding of this secret of true economic wealth. All economic value springs from the mind of human beings. It is not the wealth under the ground. It is not physical labor. Scientific discoveries of the physical processes of the universe lead to advancements in technology which is the basis for scientifically driven economic progress. The source of all discoveries is the human creative mind. Therefore, it is not a curse to have a large expansion of population in the African continent, projected to be 2.5 billion by 2050, with Nigeria over 400 million. It can potentially be a blessing, provided we make the right economic policy decisions today.

All these new potentially creative minds can make discoveries, which  lead to an advancement of civilization. To make that possible we have to provide a rising material standard of living so that these youth have the quality of life, and the leisure time to concentrate on developing their uniquely human creative spirit. This is the secret to all real economic wealth and the secret to understanding physical economy.

With the rise of the global South and the expansion of the BRICS that  has 10 members, including South Africa, Egypt, and Ethiopia, and 10 partners including Nigeria, Uganda, and Algeria, there is a new dynamic for Africa and the world. The majority of the world living in the Global South has an opportunity to create a new paradigm, one that is not based on exploitation, dominance, or mere monetary values, but one committed to the advancement of the material conditions of life for all human beings on this planet. This is the future I see, which all of us can work together to create.

Thank you very much for listening to me today. I hope I provided some useful ideas that will advance infrastructure led growth and a prosperous Nigeria.

Read my recent post: Grand Renaissance Dam: A great Achievement for Ethiopia, Africa, and the Global South

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for 35 years. He is a teacher, writer, public speaker, consultant on Africa, and an analyst of global strategic relations. Mr. Freeman strongly believes that economic development is an essential human right. He is the creator of the blog: lawrencefreemanafricaandtheworld.com, also publishes on: lawrencefreeman.substack.com, “Freeman’s Africa and the World, and on X @lkfreemansafrica

The African Integrated High Speed Rail Network-(AIHSRN) Will Revolutionize Africa’s Economies

Click On Download to read the above ten page proposal prepared by Rowland Ataguba, July 2020

August 21, 2023

The African Union’s “Agenda 2063” includes plans for the African Integrated High Speed Rail Network (AIHSRN), a high speed rail line across Africa. However, their plan for completion is 40 years from now. Rowland Ataguba, a Nigerian expert in rail management, has proposed a different timetable, which includes two “Master Plans.” He proposes the completion of 35,828 kilometers (kms) of high-speed rail lines by 2033, and an additional  14,547 kms by 2043. (See above)

Why is Mr. Ataguba’s fast track schedule for this transformative rail project important for the African continent?

Why is Rail Infrastructure Crucial?  

As a physical economist I understand, as all policy experts and leaders should, the critical importance of hard infrastructure. Along with energy, rail transportation is essential for the growth of every economy. If properly implemented, this physical input into the economy will be transformative. African nations are suffering, and Africans are dying everyday due to the abysmal level of energy throughput in their economies. The paucity of kilometers of railroad track per square area of territory measured, is equally appalling. I can state with authority, that without a full scale, military type mobilization, to rapidly expand these two vital categories of infrastructure, African nations will not achieve industrialization. Without this infrastructure, unacceptable levels of extreme poverty, hardship, and unnecessary deaths will continue on the African continent, especially in sub-Sahara Africa.

Infrastructure, particularly high speed rail, increases the profitability of the entire economy. It advances the productive powers of society, yielding higher rates of production of physical wealth. In other words, all aspects of labor activity and farming involved in the production of tangible products will be upgraded as a result of the introduction of high speed rail. The African Continental Free Trade Area agreement will not succeed, and inter-African trade will remain absurdly low, unless all major African cities, ports, farming agricultural hubs and industrial centers, are connected by AIHSRN.

Rail transportation, like electricity and other forms of hard infrastructure, adds physical value to the economy. (Soft infrastructure contributes to economic growth differently). Thus, even if in the initial stages, railroads don’t yield a profit for that particular business venture, they will have a positive impact on the economy. Connecting production and agricultural markets with consumers through time saving more efficient means of transportation will lead to expansion of economic growth. Otherwise known as progress, which Africa, despite its abundant potential, has been denied.

Take note: China has lifted over 700 million of its people out of poverty on the back of the most expansive high speed rail network in the world,-over 40,000 kms. A similar feat can be accomplished in the African continent, which now has the largest number of people living in poverty.

Read my earlier posts:

Africa Continental Free Trade Area Must Have An Integrated High Speed Rail Network

The Africa Integrated High-Speed Rail Network is Feasible and Will Create A Prosperous Future for All African Nations

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. Mr. Freeman strongly beleives that economic development is an essential human right. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com.

“HARD INFRASTRUCTURE IS WHAT WE NEED TO GET OUT OF POVERTY.”

Watch the video interview below with Olawale A-Rasheed, CEO of Abuja, Nigeria-based African Railway Consulting Ltd, who provides an excellent discussion of Africa’s needs for massive railroad construction.

The Silent Revolution in African Rail

2 June 2021

In this new podcast of the Belt and Road Institute in Sweden (BRIX), host Hussein Askary discusses with our guest Olawale A-Rasheed, CEO of Abuja, Nigeria-based African Railway Consulting Ltd, the current situation and future plans for railway connectivity in the African continent. We try to answer the following questions: – What is the status of transport sector in Africa, West Africa, and Nigeria? – What projects are completed, under construction? Who is building them? – What are the plans to develop this sector? Trans-African High-speed rail? – What is the role of China and the BRI in this process, and what can the U.S. and Europe contribute to it? Why they should learn from China in focusing on building the hard infrastructure in Africa? – There are many initiatives proposed by the U.S., the UK, and the EU to “rival” the BRI and China in Africa. Are these realistic? Wouldn’t it be better if the West and China join hands with Africa to reach the development goals? Mr. Rasheed is also the Director of the African Rail Roundtable and editor of the specialized magazine Rail Business (http://railbus.com.ng/)

“The real friends of Africa now are those trying to bridge the infrastructure deficit…..China has done it. It has pumped billions of dollars into the Belt and Road Initiative. Now, whatever critisism they have on that initiative, it has helped Africa. It has opened up Africa and it has challenged the world, that to be a friend of Africa, come and help us to build roads, bridges, have vision, high cities, power, and all those. So it is a clarion call to all friends of Africa in the West, East, Asia that HARD INFRASTRUCTURE IS WHAT WE NEED TO GET OUT OF POVERTY.”

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

Biden Administration Must Break from Past Practices, to Collaborate with China in Fostering Economic Development in Africa

CGTN published an abridged version of my article under the title: Biden administration should work with China to boost growth in Africa. https://news.cgtn.com/news/2020-12-16/Biden-administration-should-work-with-China-to-boost-growth-in-Africa-WgaMXPhB0A/index.html

Read below my complete article entitled: 

Biden Administration Must Break from Past Practices to Collaborate with China in Fostering Economic Development in Africa

Lawrence Freeman

December 16, 2020

For the incoming Biden/Harris administration to make a real difference and have positive impact on the lives of hundreds of millions of African still living in poverty, they should work in partnership with China. This would require rejecting and reversing the anti-China mindset of the Trump and Obama administrations, echoed by the current chorus of voices spewing from officials of both the Democratic and Republican parties. A repeat of the defective policies of the last twelve years coupled by the shrill geo-political motivated propaganda against the nation of China, will not only do little for Africa, but it will also harm the United States, and endanger strategic relations. It should be obvious to qualified leaders, as it is to me, that the horrific conditions of life for a majority of Africans, reflects the scope of the continent’s deficit in vital infrastructure. Over 600 million are without access to electricity, over 400 million Africans live in poverty, and several nations are currently threatened with famine. If the two economic power houses, China, and the United States, worked in partnership with African nations, this impoverishment could be eliminated.

US President Donald Trump (L) and China’s President Xi Jinping speak during a joint statement in Beijing on November 9, 2017. (NICOLAS ASFOURI/AFP via Getty Images)

Failures of Trump and Obama

Presidents Trump and Obama similarly failed to understand the necessary requirements to create real-physical economic growth to improve the conditions of life, for America or Africans. Neither comprehend the principles of the American System of economics that built the foundation of the industrialized U.S. Their conception of economics remains dominated by a belief that the wealth of a nation is measured by Wall Street’s monetary values.

US President Donald Trump (L) and China’s President Xi Jinping speak during a joint statement in Beijing on November 9, 2017. (NICOLAS ASFOURI/AFP via Getty Images)

Trump began his presidency establishing an amiable relationship with Chinese President, Xi Jinping. Unfortunately, that quickly deteriorated as Trump propitiated the anti-China prejudices of his supporters.  Although President Trump’s road to the White House was achieved by his status as an outsider to the Washington establishment, it was evident by the second year of his administration that he had acquiesced to the same geo-political world view of his predecessors. Geo-political doctrine speciously asserts that nations are either winners or losers in a zero sum game with the world as a chessboard. That the only interest of a superpower is achieving hegemony, rejecting any conception of a shared common interest among nations. His choice of neocons, Mike Pompeo for Secretary of State, and John Bolton as National Security Advisor in April 2018, left no doubt the direction of President Trump’s foreign policy.

On December 18, 2018, speaking at the Heritage Foundation in Washington DC, Bolton unveiled President Trump’s so called Africa Strategy. In his presentation Bolton defined the goal of U.S. policy in Africa, to wit: stopping China’s advances on the continent. In less than an hour, he attacked China and its Belt and Road seventeen times.  President Trump did not disavow Bolton’s assault on China, nor his demeaning treatment of Africa as a game board for geo-politics. Read President Trump’s Non-African Strategy: Published in AU’s “Invest in Africa” magazine

Prior to President Obama’s anti-China Asian Pivot in January 2012, his administration launched the most destructive military operation against an African nation by any U.S. President. In October 2011, President Obama, advised by UN Envoy Samantha Powers, Assistant Secretary of State for African Affairs, Susan Rice and Secretary of State, Hillary Clinton, toppled the government of Libya. This irresponsible military adventure resulted: in the death of Libyan President, Muammar Gaddafi; the destruction of the nation of Libya, turning it into a failed state for the last nine years; and unleashing hordes of violent extremists across the Sahel into Mali, Burkina Faso, Niger, and Nigeria, causing tens of thousands of deaths and displacing millions of Africans.

Courtesy CSIS China Power Project

China Delivers Infrastructure

Contrary to U.S. squealing and whining about China’s influence in Africa, Deborah Brautigam of the DC based China Africa Research Initiative, precisely presents the paradox: “China still addresses Africa’s hunger for structural transformation in a way the West does not.” (1)  China has increasingly been engaged with African nations over the last two decades to build vitally needed infrastructure in rail, energy, ports, airports, roads, etc., and the U.S (West) has not.

Courtesy CSIS China Power Project

Take rail for example. Examine China’s commitment to building railroad tracks in Africa, as reported by the Washington think tank, Center for Strategic and International Studies (CSIS). (2)

“Between 2008 and 2019, China built an average of 5,464 kilometers (km) of railway track per year. Roughly half of the new track added was high-speed rail. At 35,388 km, China’s high-speed rail network is the largest in the world.” China has built an additional 100,000 km of non-high speed rail track.

According to the CSIS report,

“Chinese companies signed $61.6 billion worth of rail construction contracts from 2013 to 2019 – more than double the value of the previous seven-year period (2006-2012) coinciding with the launch of China’s Belt and Road Initiative in 2013.”

“Africa received the second-highest amount of [China’s] rail contracts from 2013-2019. At $20.8 billion, this accounted for 33.8 percent of the total… About $7.5 billion worth of rail-related construction contracts (36.1 percent of the amount in Africa) were signed with Nigeria, where China is constructing a series of lines that comprise the 1,300 km-long Lagos-Kano Railway Modernization Project. This massive undertaking has made Nigeria the world’s top recipient of Chinese rail construction contracts during the 2013-2019 period.”

Courtesy of dica.logcluster.org

China’s construction of Kenya’s Standard Gauge Railway and the Addis Ababa to Djibouti railroad are exemplary of crucial infrastructure projects for Africa.

Michelle Gavin in her December 3 post, The United States and Europe Should Work Together to Promote a Prosperous Africa, expresses the dilemma for U.S.-Africa policy:

“There is no doubt that U.S. influence—and therefore U.S. capacity to achieve various foreign policy goals—suffers when China’s investments in the tangible, visible infrastructure of African prosperity appear (sic) to dwarf U.S. development efforts.” (emphasis added)

Speaking in China on December 8, Rahamtalla Osman, the Permanent Representative for the African Union in China, said, “The goals of the BRI coincide with the AfCFTA,” referring to the African Continental Free Trade Area.

The “Same Old” Will Not Do

As the inauguration of the new U.S. president nears, many words are written extolling how a Biden administration will bring a return to “normalcy, global alliances, international diplomacy.” We should think for a minute. Do we want to return to war, regime change, sanctions, and drone assassinations as the core of U.S. foreign policy? Early indications are that under a President Biden, the U.S. will pursue with our allies, a more belligerent policy with China. How will this realignment shift the world to a higher platform of development? How will it stimulate economic growth in Africa?

Presidents John F Kennedy and President Kwame, Washington DC, Head of State visit- March 1961.

The Biden-Harris agenda for Africa is vague with no specifics to address Africa’s urgent needs. Ambassador Linda Thomas-Greenfield, who is President Elect Biden’s nominee to be envoy to the United Nations, has a deep background in Africa and is respected by many African leaders. Having played a prominent role in the Biden transition team, she may be an individual who can put a focus on Africa in the new administration. However, it is unclear what those policies will be.

The last U.S. president to fully engage in Africa’s development was John F Kennedy, who established a personal relationship with Ghanaian President, Kwame Nkrumah, and gave crucial backing for the construction of the Akosombo Volta Dam complex.

For the incoming administration to genuinely support Africa, the new president should audaciously break from past boundaries of previous thinking and join with China in launching a great mission for mankind: the elimination of poverty in Africa within the next generation through massive infrastructure expansion. That is my mission.

(1) African countries will remain best friends with China, https://www.economist.com/the-world-ahead/2020/11/17/african-countries-will-remain-best-friends-with-china

(2) How Are Foreign Rail Construction Projects Advancing China’s Interests? https://chinapower.csis.org/rail-construction/

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

Nigeria and Egypt Building Railroads: Great News For Africa

Minister of Information and Culture, Lai Mohammed [PHOTO CREDIT: FMIC Website]
Minister of Information and Culture, Lai Mohammed [PHOTO CREDIT: FMIC Website]

October 7, 2020

For those of us who understand physical economy, these two developments reported below are truly great news for Africa. Africans have suffered from a paucity of infrastructure in rail construction and energy production. When African nations liberated themselves from colonialism beginning in the 1960s, following 400 years of slavery, they were intentionally left with no infrastructure.  By denying African nations rail systems that connected the continent and electricity to industrialize their economies, the African people have been forced to lived in poverty brought about by imposed underdevelopment. Ghana’s founder, Kwame Nkrumah understood this well. He discussed the necessity of infrastructure to achieve true economic independence in his opening speech to the Organizing of African Unity on May 25, 1963 and his his book, Africa Must Unite. It is a crime that 60 years after the liberation from colonialism, African nations remain grossly deficient in basic infrastructure. Therefore let us rejoice in the progress that African nations are making today, in the 21st century to provide vital infrastructure for their people. We should all celebrate all measures taken to rectify the legacy of colonialism, that denied Africans the right to economic development. To their credit, Presidents Buhari (Nigeria) and el Sesi (Egypt) have pursue the expansion of infrastructure in their respective nations.

Why we’re extending rail construction to Niger Republic – Nigerian govt

“The Minister of Information and Culture, Lai Mohammed, gave the explanation on Friday when he featured on Nigeria Television. Authority (NTA) live programme, “Good Morning Nigeria”

“The programme which focussed on “Nigeria at 60: Matters Arising” was monitored by the News Agency of Nigeria (NAN) in Abuja.

“Specifically, the minister said the rail extension is intended for Nigeria to take economic advantages of import and export of Niger Republic, Chad and Burkina Faso which are landlocked countries.”

Continue Reading: Nigeria Extending Rail Construction to Niger

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Egypt to Build High Speed Rail

China Civil Engineering Construction Corporation (CCECC) and Egyptian companies Samcrete and the Arab Organization for Industrialisation have won a $9bn contract to build a 543-km-long high-speed railway in Egypt, reports newspaper The Egypt Independent, citing “senior sources”.

“Accommodating train speeds of 250km/h, the line would link the Mediterranean coast at El-Alamein to the Red Sea at Ain Sokhna, cutting the journey between the two cities to three hours.

“The scheme’s importance to Egypt was compared to the Suez Canal by the chief executive of Samcrete, Sherif Nazmy, who told Arab-language newspaper Al-Masry Al-Youm that it would be the first new electric railway in Egypt since 1854.”

Continuing Reading: (Egypt to Build High Speed Rail

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

China Eliminated Poverty With Science and Infrastructure. It Can Be Done in Africa Too!

China's Long March Out of Poverty | African Agenda – A new ...
Deng Xiaoping, who put China firmly on the path of “reform and opening up.

August 14, 2020

If one examines the long path from the end of China’s disastrous “cultural revolution” in the 1970s to China’s 2020 modern miracle of eliminating poverty for 800 million Chinese, many lessons can be learned. China’s commitment to science and building infrastructure were two essential ingredients for this accomplishment.  William Jones discusses this interesting history in his article below,”China’s Long March Out of Poverty”.

China Employs Hamilton’s Principles of Credit  for Railroads

(EIRNS) —China’s exciting announcement of its plan to increase the pace of development of maglev and its high-speed rail network, is based on its assurance that it knows how to implement that, and to finance it on top-down principles of the type proposed by Alexander Hamilton.

China announced its plans to build a system of 600 kph (373 mph) maglev vehicles, after it successfully conducted its maiden test run of a maglev vehicle at a test track at Tonji University in Shanghai on June 21. Though the train-set did not run at top speed of 600 kph, but at a lower speed, various important features were tested. Prototype vehicles are approved for construction in 2021, and up to nine new maglev lines, totalling over 1,000 km (600 miles), are planned for the future.

Equally impressive, China’s plan to double its existing 35,000 km of high-speed rail already in operation, to 70,000 km by 2035, shows how a Confucian/Hamiltonian economy actually works. Based on estimates by the Lange Steel Information Research Center in Beijing, reported by the Wall Street Journal, China would have spent $180 billion for 35 approved railway projects in 2019, most of them high-speed rail, launching the next phase of HSR development.

In the first half of 2020, according to the Aug. 13 *China Daily), China invested $207 billion in combined railway, highway, waterway and civil aviation infrastructure, of which $46.9 billion was in railways. China’s transportation infrastructure investment alone, is 5-10 times that of every country on Earth. Featured in China’s railway investment is a new, 1700 km high-speed rail system between Chengdu, Sichuan and Lhasa, Tibet; high-speed rail in landlocked Shaanxi Province, etc.

China finances the rail and other critical infrastructure, through two methods of directed credit: China’s four largest state-owned commercial banks—the Industrial & Commercial Bank of China, the Bank of China, the Agricultural Bank of China, and the China Construction Bank—make ample loans directly to the China Railway company, the China Railway Rolling Stock Corporation (CRRC), which builds the rail equipment, etc. This is overseen by China’s three “policy banks.”

Second, the national government and local governments purchase bonds issued by China Railway Corporation, CRRC, and so forth.

China has announced its new rail construction program. The government plans to build 200,000 km of rail by 2035, about 70,000 of which will be high-speed rail. All cities with a population of 200,000 or more will be connected by rail, and all cities with 500,000 people or more will be connected by high-speed rail. China is also working on the next generation maglev train that could travel at speeds of 600 kph.

Pause for a moment from your daily activity. Let your imagination look into the future, and ponder what the nations of Africa would look like if, all cities with 200,000 people or more were connected by railroads. The topology of the continent would be different. China has proved it can be done. It is not a matter of Africa following the China model. Rather, it is comprehending the scientific principles of Alexander Hamilton’s economic system. Read my earlier posts: Alexander Hamilton’s Credit System Is Necessary for Africa’s Development and Nations Must Study Alexander Hamilton’s Principles of Political Economy

 

Click to access 45-54_4726.pdf

In his article below, William Jones provide an insightful analysis of the forces behind the anti-China mantra, rampant in the Trump administration.

As the ‘Five Eyes’ gear up to confront China, can anyone say that the British Empire is a thing of the past?

“A recent article published in the China Economic Diplomacy Watch pointed to the “Five Eyes” – the U.S., UK, Australia, Canada and New Zealand – as the key rallying group for Pompeo’s call for a containment policy toward China. The article has indicated a crucial element in the danger the world is facing. The unifying factor in this grouping is, firstly, that the “Five Eyes” are all English-speaking countries, and secondly, that they all at one time or the other belonged to the British Empire.”

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

China’s Successful Economic Model Eliminates Poverty

China’s new Magnetic Levitation train for 2020 will be able to travel 360 miles per hour. (courtesy of (Motor1.com)

November 11, 2019

The article below by Helga Zepp LaRouche, founder of the Schiller Institute, provides a useful overview of China’s successful economic model. However, Chinese leaders have repeatedly pointed out that they are not asking other nations to adopt this model for their emerging economies. 

“Rather than seeing the rise of China as a threat, we in the West should acknowledge the enormous benefits for mankind flowing from the unprecedented economic miracle that China has achieved in the past 40 years. Unfortunately, most people in the United States and Europe know very little about China and its 5,000-year-old culture, which makes it relatively easy for the geo-politically motivated mainstream media and exponents of the anti-China lobby to paint a completely distorted picture of the country.

“In fact, China has opened a new, totally inspiring chapter of universal history, by setting an irrefutable example, for all other developing countries, of a way to overcome poverty in a relatively short period of time and achieve a good standard of living for a growing segment of its population. Over the past 40 years, China has implemented the most massive anti-poverty program in human history, lifting 850 million of its own citizens out of poverty, and contributing 70% of the total global poverty alleviation efforts. Its average economic growth from 1978 to 2018 was an impressive 9.5% per year, and even the decline this year to only 6% growth, due to various factors, still represents a level that European nations and the United States can only dream of.”

Read: The Secret of China’s Success Model

AU Demands: African Integrated High Speed Railway Network

July 4, 2019

The article below written by a friend of mine is a useful over view of the African Union’s plan to build High Speed Rail-lines in Africa.  High-Speed Rail together with the production of abundant supplies of energy are indispensable for the continent’s development and the industrialization of African economies. The link to the entire article that is worth reading follows the excerpts.

“The vital plan for an African Integrated High-Speed Railway Network (AIHSRN), approved by the African Union (AU) in 2014, appears to be going forward energetically. But in fact, Africa is getting only half a loaf at best. Standard gauge rails are being built, but to “save money,” they are not being built to standards permitting the high speeds that the African Union had specified. These “higher”-speed lines are not “high-speed” by any accepted standard. Or, worse, existing lines of the old colonial gauge are being rehabilitated—again because “there is not enough money.”

“Yet having “enough money” is not the problem it seems to be: The principle of Hamiltonian credit—credit extended by government, on the strength of nothing but the skills of the population, and earmarked for projects sure to produce leaps in productivity—has been known in theory and practice for 200 years, even if suppressed by the business schools.” Read my post from earlier this year on Alexander Hamilton: Nations Must Study Alexander Hamilton’s Principles of Political Economy

“AIHSRN is not a master plan for all rail transport in Africa. It is, rather, a plan for rapid rail transport across long distances. And Africa has long distances. To go from Cairo to the Cape of Good Hope by road or rail is more than 10,000 kilometers (6,200 miles)—the equivalent of going from New York to San Francisco and back again.

“Yet with the AIHSRN, an express train could depart from Cairo at 6:30 a.m. on Monday morning, travel at an average of only 220 km/h (137 mph), make only five half-hour stops—at Khartoum, Nairobi, Dodoma (Tanzania), Harare, and Johannesburg—and arrive in Cape Town in time for an early breakfast on Wednesday. The east-west trip from Addis Ababa in Ethiopia to Dakar, Senegal—“only” 8,100 km—will be quicker. The implications of such speed for the African economy—and for African integration in all respects—are enormous.

“The continental plan is for six west-east routes from the Atlantic to the Indian Ocean/Red Sea, and four routes that run from north to south—a 6×4 grid (see map).

“Because of their high speeds, the trains must run on dedicated, standard gauge lines that will not usually accept traffic from other, slower lines of the sometimes denser, surrounding rail network.

“The plan includes the construction of railway manufacturing industries, parts suppliers, maintenance facilities, and the building up of railway training academies.

“The AIHSRN is part of the African Union’s Agenda 2063, a fifty-year plan for the economic, social and cultural development of the entire continent, born in 2013”

Read full article: Africa Integrated High Speed Railway Network

AU Amb Chihombori-Quao: “The African Sleeping Giant is Rising”-The Significance of the Africa Continental Free Trade Area

On June 2, 2019, I interviewed African Union Ambassador to the United States, Arikana Chihombori-Quao at her home, on the significance of the new agreement on an Africa Continental Free Trade Area-AfCFTA, initiated on May 30. The AfCFTA is intended to reduce tariffs and barriers between African nations to promote trade, and spur economic development throughout the continent.

 

In the interview above, Ambassador Arikana Chihombori-Quao, provides a provocative and optimistic analysis of what the newly enacted agreement for an Africa Continental Free Trade Area-AfCFTA will mean for continent over the coming years and decades.

Amb Chihombori emphasizes huge potential for the AfCFTA to double, triple and even quadruple intra-African trade, which today is a mere 16%-18% of total continental trade. According to the UN Commission on Africa, AfCFTA could increase intra-trade by 15% to 25%, that equals $50-$70 billion in the next 20 years.  The concept of AfCFTA is to enable each African with the opportunity to potentially access the continent’s multi-trillion dollar market and 1.2 billion buyers and sellers. Landry Signe of the US based Brookings Institute estimates that by 2030 AfCFTA could boost consumer and business spending to $6.7 trillion.

Historically, Amb Chihombori views the AfCFTA as a continuation of the struggle by African nations to liberate themselves from intended under-development imposed on Africa by the infamous Berlin Conference (1884-1885). She stresses that 56 years (and five days) after the founding of the Organization of Africa Unity-OAU (May 25, 1963), Africa will now be functioning as one trading bloc of nations, which is intended to equalize the international playing field. As the implementation of AfCFTA proceeds, Amb Chihombori believes that Africa will acquire the stature of a “heavy-weight” in global trade and commerce. She is also hoping that by the end of this year Africa will ratify the “Free Movement Protocol” that would allow Africans to live, travel, and work anywhere on the continent, thus complementing the AfCFTA

Amb Chihombori accentuates in this interview, that infrastructure is a level one priority for Africa in the AfCFTA. “Investment in infrastructure is an absolutely essential step for us to take as we move into the implementation of AfCFTA,” she says. The denial of basic infrastructure, power, access to water, education and healthcare, by the colonial powers following the Berlin Conference, kept African nations from  developing; by design. “Leaders in Africa are now discussing the building highways and high-speed rail from Cape Town to Cairo and Djibouti to Dakar.”

Challenging those who advocate reducing Africa’s population and falsely claiming that Africa’s growing population is a major contributor to Africa’s economic problems, Amb Chihombori asserts that: “Our youth is the biggest advantage we have over the rest of the world…Youth is our biggest asset.”

Amb Chihombori wants to make the US the number one trading partner with Africa, telling Americans; “that the African sleeping giant is rising-it is a new game.”

***The AfCFTA had already come under attack, even before its birth, by the International Monetary Fund-IMF. According to the People’s News Africa, the IMF warned African nations they could lose revenue, if the AfCFTA is enacted.

Rwanda’s President Paul Kagame quickly responded: “It is important that Africa gives the necessary considerations to the views and opinions by external entities and ‘development partners,’ it is more important at the same time that Africa becomes aware of what we want for ourselves, pursue what is good for the continent, and defend what is necessary for our collective development.”