Click On Downloadto 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.
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.
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
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 Africanprosperity 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.
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
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 federal government said it approved the extension of rail construction from Lagos-Kano-Katsina to Marradi in Niger Republic for economic and commercial benefits.
“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.”
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.”
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
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
“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 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.”
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”
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.”
A recent forum sponsored by Brookings Institute in Washington DC entitled: “Top priorities for Africa in 2019” produced a healthy discussion that alluded to important fundamental conceptions of economics. Although the deeper principles of what should be called economic science were not elucidated, issues raised in the dialogue serve as a useful starting point for further elaboration of that subject.
The event was organized to present FORESIGHT AFRICA, a new publication by the Africa Growth Initiative. Representative from the International Monetary Fund-(IMF), and Mo Ibrahim Foundation, joined Ambassador Linda-Thomas Greenfield, and Brahima Coulibaly, director of the African Growth Initiative, for a wide-ranging discussion on the future of Africa to a packed audience.
Members of the audience challenged the prevailing assumptions of the International Monetary Fund. One participant raised the inadequacy of the IMF’s rigid macro-analytic approach, when what is needed, she said, is a fine-tuned micro-economic intervention to deal with the scope of the challenges facing African nations. Another suggested the need for a state-funded public sector job program to put the millions of unemployed youth to work—a proposal which the IMF representative categorically rejected. The IMF’s hostility to state sector involvement belies the several hundred-year historical record of the modern economy, which is replete with successful and indispensable interventions by the state to foster economic growth.
Measuring Real Economic Growth
While the Brookings report, FORESIGHT AFRICA, provides some relevant statistics, its analysis rests on erroneous axioms of what comprises economic growth
The commonly accepted notion that African nations today are experiencing “jobless economic growth” reveals the fundamental antagonism between the analysis of the IMF and its co-thinkers, and proponents of real i.e. physical-economic growth. Jobless growth is a moronic oxymoron. Real*economic growth augments the productive power of society to increase its surplus of tangible wealth in order to sustain an expanding population at a higher standard of living. The IMF pretends to measure growth by adding up monetary values such as the price of extracted resources and real estate, stock market gains, etc. The aggregation of prices is not a measure of the economy’s growth. The only true calculation for economic growth is the result: an improvement in the living conditions of the population.
Africa’s Bright Economic Future Is Its Youth
Creating Real Economic Growth
An excellent example of this defective thinking is highlighted in the article from the Brookings report entitled “How Industries without smokestacks can address Africa’s youth unemployment crisis.” Author John Page reports that Africa has not only failed to industrialize, but shockingly, its share of global manufacturing today is smaller than it was in 1980! He forecast that Africa’s working age population (15-64 years of age) will grow by 450 million between 2015 and 2035, and that “20 percent of new employment for wages will be in the service sector, and only 4 to 5 percent will be in a wage paying job in industry.” His conclusions for the future of youth employment in Africa are ill-founded and deadly when he states that since: “industry has declined as a share of output and employment…over the past four decades…Africa may not be able to rely on industry to lead structural change…”
Page then proceeds to dangerously postulate the equivalence of employment in manufacturing with tourists and service jobs. He writes: “The same forces that limit Africa’s opportunities in industry, however, are also creating a growing number of tradeable services—such as tourism and remote office services…”
“Growth in tourism is outpacing manufacturing in many African countries… It has the potential to create some of the millions of formal sector jobs Africa needs each year to employ youth entering the labor force…”
This is not an academic question for the people of Africa. We should all be level-headed about the implications of this prognostication: without industrialization Africans will die. African are dying every day due to lack of infrastructure, a diminutive manufacturing sector, and an inefficient food-producing industry. The industrialization of Africa with a massive expansion of its manufacturing base is not an option, but a life-or-death necessity!
Nor is this conjecture on my part. From the standpoint of economic science of physical economy there is no equivalence. Manufacturing, by transforming nature and producing needed goods, contributes real value to society; tourism and services do not. A variety of services are required for a functioning society, but this sector should not perform role of a primary employer for new entrants into the labor force. Tourism serves no vital task except to promote the natural beauty of a county. No new wealth is created by tourism; it is essentially collecting other people’s earned income.
Service-related jobs, whether useful or not, will never lead to real economic growth for one elementary reason. They do not contribute to the creation of new wealth. A properly organized economy would only have a relatively small percentage of its employed labor in the service sector. To do otherwise, as some African nations unfortunately are, is not sustainable, and will lead to calamity. To equate non-goods producing employment with manufacturing jobs is a grave fundamental error that should be rejected by serious economists and leaders.
Africa’s Youth Bulge Is Not A Curse
FORESIGHT AFRICA estimates that today 60% of Africa’s 1.25 billion people are under 25 years of age. That amounts to 750 million youth, a majority of which are unemployed or mis-employed in the pathological informal economy. It is projected that in sub-Saharan Africa alone, the youth population will expand by 522 million, and comprise one-third of the world’s youth by 2050. Thus, making Africa the continent with the youngest population, and potentially the largest workforce on the planet.
While these figures are striking, they do not justify enforced population reduction measures, as extremists advocate. Human life is intrinsically sacred because it is endowed with the divine spark of creativity. Contrary to popular misguided opinion, human creativity is the underlying source of all wealth; not money or even natural resources. Paleoanthropology shows us that millions of years ago before the emergence of homo sapiens-sapiens (wise-wise man), proto-humans, homo hablis, (handy man) designed tools first in the mind’s eye before shaping rocks into useful implements that were used to transform the environment for the benefit of mankind. Africa is not facing a crisis of too many people, but rather the urgency to formulate the best policies today that will incorporate millions of youth as productive members of the labor force.
What African nations most desperately need, and which will have the greatest impact of their economies, is infrastructure, infrastructure, and more infrastructure. It is not hyperbole to state that the lack of infrastructure is responsible for millions of deaths on the continent. The dearth of on-grid energy, arguably the most crucial component of an industrialized-manufacturing society, is preventing African nations from attaining the levels of economic growth required to sustain their populations.
For example. If we desire, as we should, that Africans enjoy the same relative living standard as Western nations, then each of the 2.5 billion Africans in the year 2050 should have access to at least one kilowatt (1,000 watts) of power every day. That would require, starting immediately, erecting enough power plants to generate 2,400 gigawatts of electricity. Itemize the bill of materials to build that many thermal, hydro, and nuclear power plants.
Now contemplate the number of workers that would be employed in this endeavor. Extend the same mode of thinking to constructing hundreds of thousands of kilometers of high-speed rail lines to connect the major cities, ports, and manufacturing centers across this vast continent. Add to that the number of new roads, hospitals, schools, libraries, and water ways that need to be built to provide an adequate standard of living. How many tens of millions or more youths will Africa need to employ in just the construction of primary infrastructure projects? Imagine how many additional jobs will be created in the spin-off industries.
Nuclear Energy is Critical to Meet Africa’s Energy Needs(ESI Africa)
Africa’s Future Begins Today
Trillions of dollars of long-term low interest credit must be made available to fund these projects. Only state-issued public credit will suffice for this scope of investment. The private sector, investments funds, or any other fund that is motivated by seeking high yield and quick financial returns on their investment will never, ever, underwrite the credit necessary. The overriding concern of the nation state is not making quick monetary profits, but the welfare of its citizens living and their posterity. The IMF thus far shown itself to be mentally, emotionally, and ideologically incapable of comprehending the true economic needs of Africa, or how to fund them. Those who are blinded by their erroneous view of evaluating an economy by its monetary worth, will forever be incompetent, and are not qualified to give advice, much less diktats to developing nations.
Credit issuance by the nation state is not a new or novel concept. The success of United States’ economy, which was maintained with ups and downs until its decline over the last five decades, emanated from the accomplishment of President George Washington’s Treasury Secretary, Alexander Hamilton. It was Hamilton’s understanding of credit and the central role of manufacturing that created the basis for U.S. economic growth from thirteen indebted colonies. Over the last 230 years, those leaders, in the U.S. or abroad, who were wise enough to comprehend and apply Hamilton’s understanding of national banking and credit, have been successful in stimulating economic growth for their nations.
Africa’s future does not begin in 2050; it begins now. It is incumbent on Africans, with the assistance of their friends and allies, to prioritize crucial transformative infrastructure and related projects that must be built and funded. This cannot wait. This is a war to eradicate poverty, hunger, and disease, and secure a productive life for billions of Africans living and yet to be born. Thus, this campaign should be conducted with a military-like commitment to achieve objectives and goals each month and each year. Hence, we are not waiting for the future; we are creating the future in the present.
*real and true are interchangeable terms signifying a physical (non-monetary) improvement in the economy.
Lawrence Freeman has been involved in Africa for over 25 years as a writer, analyst, and consultant. He teaches courses on African History in Maryland. In 2014 he was appointed Vice chairman of the Scientific Advisory Committee to the Lake Chad Basin Commission.
Italy Rightly Accuses French of Colonialism in Africa
Italian Deputy Prime Minister Luigi Di Maio has accused France of running a “neo-colonialist system” in Africa through the CFA franc single currency union imposed on ten countries in Central Africa of being the cause for impoverishing Africa and for migration flows.
Di Maio, who has managed to make this the issue number one of the political debate in Italy, declared that “Europe is ignoring one thing, i.e. what some countries are doing, impoverishing Africa. France above all, prints a double currency in over ten countries, through which a percentage of French national wealth is paid and a minor part of the French deficit is financed.”
“Africans will stay in Africa if the French stay at home instead of colonizing,” Di Maio went on, announcing a parliamentary initiative. “I want to ask the EU to sanction countries such as France and we will ask France to open its ports.” Di Maio threatened to henceforth ship all refugees rescued at sea to Marseille until France stops printing the CFA franc.
French sources acknowledge that the CFA franc is an issue and there is a debate in France already, but say it is not connected to the refugee flows. The countries where most refugees come to, such as Italy are from Nigeria, Eritrea, which are not part of the CFA franc. The Italians have responded that the CFA franc area is nevertheless allowing the transit of refugees organized by human traffickers.
{Italy is correct. Through their monetary imposition of the CFA franc currency, the French are continuing their colonialist policy in Africa. The African Union with the full support of all African nations should immediately declare termination of the CFA in West and Central Africa. Every African nation has a right to be sovereign and control its own currency}
The article below echoes the theme in my own earlier statement regarding the so called US-Africa Strategy: Pres. Trump’s Non-Africa Strategy
It concludes: That renewed focus gives African nations unprecedented opportunities to pursue their own interests, rather than simply act as client states. America’s drive to contain both Russian and Chinese influence brings chances to secure foreign investment and to leverage strategic advantages into a more prominent presence on the world stage. And, after centuries in the shadow of global powers, it is high time that Africa finally found its own voice.
New National Intelligence Strategy Report: Geopolitical Focus on Russia and China
Director of National Intelligence (DNI) Dan Coats presented the 2019 National Intelligence Strategy Report, which is released every four years. Similar to National Security Adviser Bolton’s so called US African Strategy released last year, it s steeped in British geo-political ideology. Like NSA Bolton’s report, it emphasizes the dangers posed by such “traditional adversaries” as Russia and China, as well as North Korea and Iran, reflecting a shift away from previous years’ focus on combating international terrorism.
It is also said to echo the intelligence community’s “unanimous” 2017 conclusion that Russia interfered in the U.S.’s 2016 presidential elections to “undermine the U.S.-led liberal democratic order. While documenting many other “dangers” such as cyber-threats, the “democratization of space,” the development of anti-satellite weapons, the report is primarily concerned that “traditional adversaries will continue attempts to gain and assert influence internationally weakening of the post-WWII international order and dominance of Western democratic ideals…in the West, and shifts in the global economy.”
In its “Strategic Environment” section, the report warns of the likely continuation of “Russian efforts to increase its influence and authority” which “may conflict with U.S. goals and priorities in multiple regions.” An additional concern, is “Chinese military modernization and continued pursuit of economic and territorial predominance in the Pacific region and beyond.”
China Plans Biggest-Ever Investment in High Speed Rail is Good for Africa
{Global Construction Review} (GCR) reports today that “China is planning to invest a record $125 billion in rail this year as the government looks to cushion the impact of slower economic growth. This would be 6% more than was spent last year, and 10% more than was originally planned, according to a report in the {Nikkei Asian Review}.”
China is taking measures to stimulate the economy in response to the “slowdown” in growth, although growth is still 2018. These include an “acceleration in construction projects, as well as cutting taxes and boosting the money supply…” {GCR} reports.
China Railways’ annual plan envisages a 45% rise in new projects, resulting in the addition of 6,800 km to the total network, {GCR} reports. High-speed rail will be expanded by 3,200 km, more than the total of High Speed Rail in any other country. This will mean China far exceeds its previous schedule to build 30,000 km of high-speed railway lines by 2020.
![Minister of Information and Culture, Lai Mohammed [PHOTO CREDIT: FMIC Website]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2020/08/Lai-Mohammed.jpg?resize=696%2C460&ssl=1)
