The Debate On China’s Role In Africa; A Different Point Of View

The Council of African Security and Development-CASADE has published my article regarding the debate over whether China is forcing African nations into a new ‘debt trap.’ Despite the propaganda from some Africans and Westerners, China is not the new imperialist in Africa. You can read my analysis below.

CASADE: COUNCIL ON AFRICAN SECURITY AND DEVELOPMENT

 

 

 

Transaqua Begins: A Wonderful Step Forward for Africa!

Today a huge step forward was taken for the Africa continent with the initial funding for a feasibility study of the Transaqua water project. Transaqua, a transformative inter-basin water transfer project to re-charge the shrinking Lake Chad, was first proposed over thirty years ago, to create a super-economic development zone between the nations of the Lake Chad Basin and Great Lakes Region. Expanding this lake is crucial for the Sahel and will help to turn back the desert. The success of Transaqua, a Pan African infrastructure project, will be bring peace stability to Nigeria, and to the other member states of the Lake Chad Basin, and as well create new levels of economic wealth. It will contribute to the industrialization of Africa, and should become part of the African Union’s “Agenda 2063.” I am proud that I have been advocating this project around the world, especially in Africa and in the United States.

All Africans, and friends of Africa should rejoice at this small, but potentially giant step forward for the people of Africa.

Today, October 16, 2018- A MoU (Memorandum of Understanding) for the initial funding of the feasibility study for the Transaqua project was signed in Rome by the Italian government and the Lake Chad Basin Commission. Francesco La Camera, director general of the Italian Environment ministry, and Mamman Nuhu, Executive Secretary of the Lake Chad Basin Commission, signed today a document that certifies an Italian government grant of 1.5 million Euros to finance the feasibility study for the project refill Lake Chad and build a water, transport, electricity and agro-industrial infrastructure in central Africa, developed by the Italian firm Bonifica more than 35 years ago.

The formal signature is following the decision announced last February 29 at the International Lake Chad Conference in Abuja, Nigeria. There will be further bureaucratic steps before the grant can be delivered and the feasibility study can start.

“It is a historic step”, said Bonifica CEO Romina Boldrini. “Italy is giving money for Transaqua. Everybody is expecting Bonifica to start the feasibility study now”.

Marcello Vichi, the head of the Bonifica team that drafted the original Transaqua study in the seventies, said he is “very satisfied” with the agreement. “Finally, after so many years, Africans and Europeans understood the importance of the project. Now we have to make up that lost time”.

Read:  Save Lake Chad With Transaqua: Presidents Roosevelt and Nkrumah Would Concur

Africa Needs Tractors, Nigeria (and Africa) Need Energy Too

{For Africa to provide jobs and feed its growing population, it needs energy and tractors to build a robust agricultural-manufacturing sector. Africa’s population is expected to double to 2.4 billion by 2050. If African nations massively invest NOW in infrastructure and industrialize their economies, the African continent can become the center of the world economy in two generations.}

Tractors Needed in Africa to Boost Agricultural Output

Oct. 8, 2018– The {Frankfurter Allgemeine Zeitung}-(FAZ) has discovered that agricultural output in African countries would be much higher if the farmers there had tractors to work their land, instead of using wooden ploughs and oxen to pull them. The output would be five to ten times higher, experts told {FAZ}. Swiss globalization critic Jean Ziegler said already in 2013 that the entire African continent had only 85,000 tractors in 2011, while Germany alone had almost 2 million tractors.

One problem faced by African farmers is that, with their miserable income, they cannot afford to buy tractors and other agricultural machinery on the world markets; not even the simple tractor models produced by Brazil’s AGCO, which have no fancy equipment and no GPS and cost only $10,000. Another problem is that tractors need diesel fuel, which is not available in such volumes in most parts of Africa because the transportation and storage infrastructure isn’t there.

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“Xi Jinping lends support to Nigeria’s long delayed $6 billion Mambilla dam”

View image on Twitter

Plans to build a 3GW hydropower complex on the Donga River in eastern Nigeria, which have been under discussion since 1972, were given a boost last week when President Xi Jinping of China announced his support for the project.

The Chinese leader was speaking in response to a request for help from President Buhari of Nigeria, who has made the construction of the scheme, on the Mambilla plateau in Taraba State, a key priority of his government.

Buhari said in a tweet: “I told President Xi that the Mambilla Hydropower Plant is Nigeria’s equivalent of China’s Three Gorges Dam, and that our hope is to fund the project with concessionary loans from China.

Continue reading

 

A Brief Response: Marshall Plan for Africa or “Debt Trap?”

Lawrence Freeman

September 20, 2018

The world is witnessing an increase in attacks on Africa’s relationships with China in various articles, as well as low-level, unthoughtful, messages on Twitter, Facebook, and YouTube. Not only does that content intend to demonize China as the new colonial empire of Africa, but it also includes vulgar demeaning caricatures of African Heads of State.

Could the reason for the uptick of these kinds of diatribes be related to the successful September 3-4, Forum on China Africa Cooperation (FOCAC) summit in Beijing, attended by leaders from almost every African nation? China has reached out to Arica and formed a special relationship which is being embraced by African Heads of State. It should be clear to any intelligent historian, that China is not acting as an Imperialist manner towards Africa.

However, what has been conspicuously, egregiously omitted from this unsubstantiated vilification of China, is the history of Western nations and institutions, which have acted as an Imperialist power towards Africa. The latest accusation is that China is deliberately entrapping African nations into unpayable debt. However, this is precisely what the IMF, World Bank, Paris Club, along with their allies in the City of London and Wall Street did to Africa immediately following the “Winds of Change.”

The motivation for this propaganda barrage is that China via FOCAC and the Belt & Road Initiative is offering African nations a pathway toward growth uncontrolled by the financial predators in the City of London and Wall Street. Contrary to the myth that China is stealing African resources; which the Western powers did first under slavery, then under colonialism, and have continued under neo-colonialism, China is actually providing credit for physical infrastructure; the sin qua non to spur economic growth.

Debt and Credit for What?  

A pervasive and quite serious problem affecting well-intentioned individuals from all corners of the globe is the lack of understanding of what actually creates economic growth. Neither money, nor financial transactions, nor derivatives, nor speculation, nor rising stock markets, nor the market place are the cause of growth or synonymous with real economic growth.

Credits issued for infrastructure; water, energy, rail, roads, healthcare, and education, identifying the most vital categories, if properly organized, leads to an increase in the productivity i.e. the economic power of the society. This is measured by the ability of society to increase its physical output from one production cycle to the next. By utilizing advanced technologies embedded in new capital equipment, including infrastructure, farmers and workers can produce more efficiently. Simply providing abundant energy, high-speed railroads, and water inputs to an African nation would lead to a jump in economic output.  Shortly after the death of President Kennedy, the US ceased its commitment to assist Africa nations in expanding their infrastructure.

China is committed to lending, issuing credit-yes creating a debt to fund long-term investment in infrastructure. Credit directed in this way is good debt. With non-usurious interest rates over 15-20 years, the loan can be retired from the profit it generates to society. This form of debt is not equivalent to the hundreds of billions of dollars African nations were forced to pay to the financial capitals of the world for loans to cover rigged terms of trade, and currency devaluations.

If you study the American System of Political Economy with its cornerstone; Alexander Hamilton’s national credit policy, you will realize that China is emulating the best of America’s past. For example, President Franklin Roosevelt, who successfully applied Hamilton’s principle  to rebuild the Depression riddled US with state issued credits, would have little trouble understanding the principles of President Xi Jinping’s Belt & Road.

Economics and the Common Good

There is a deeper level to comprehending economic growth. Every human being is united by a universal principle often expressed as the “common good of mankind.” Yes, all human beings regardless of religion, color, ethnicity, or place of birth, share a “common interest.” We are all created with the power of creativity. Not logic, not deduction, not induction, but the power to hypothesis new ideas. The power of discovery, to discern new principles of the universe that we previously did not know but were there waiting to be revealed to the human mind. These scientific discoveries spawn new technologies which are the primary source of economic growth. Thus, it is the responsibility, nay the obligation of every society to nurture and develop that creative potential innate in all its citizens from birth to death.

For all citizens to realize their potential, live productive lives, and raise their families without fear of hunger and security, a nation must have the economic means to expand the total physical wealth of society over succeeding generations.  An advanced industrialized nation requires a healthy manufacturing sector, which is also an essential component of a productive agriculture sector.  The absence of robust agro-manufacturing economies in Africa is crime along with its huge deficit in infrastructure.

Sadly, the West does not have the vision to assist African nations in overcoming these deficiencies. China in all, but name has launched the equivalent of a Marshall Plan for Africa.

Among the eight major initiatives that President Xi laid out at the Africa-China Summit, China will:

1.Promote industrialization; 2. Support agricultural assistance programs; 3. Work with the African Union (Agenda 2063) to formulate a China-Africa infrastructure cooperation program; 4. Increase its imports from Africa, in particular non-resources products; 5. Train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges.

China has come to understand that it is the common interest of its own country, and in the fact all nations, is to help Africa develop productive industrialized societies not dependent on revenue from one resource or one crop. Under these improved conditions, hunger and poverty, the underlying causes for conflict, can be eliminated. Great progress can be accomplished in Africa and the world, if the US and Europe acquire the wisdom to join China’s Spirit of the Belt & Road

Below are three articles with excerpts that provide useful background to understanding Africa’s productive relationship with China.

“The recently concluded China-Africa Summit offers a new deal for Africa’s recovery. The Forum for China-Africa Cooperation (FOCAC) has the making of a 21st century equivalent of the Marshall Plan, America’s massive economic rescue programe that President Harry Truman unveiled for Europe on April 3, 1948.

AFRICA’S INDUSTRIALISATION

On its part, China is taking a Pan-African approach targeting projects with regional impact such as Kenya’s standard gauge railway.   Like the Marshall Plan that prioritized the reindustrialization of Europe after the war, China is laudably giving a pride of place to Africa’s industrialisation.

Industrialization was top on the list of President Xi Jinping’s eight-point plan to guide Chinese aid to Africa in the next three years. Recipients of Marshall Plan had to invest 60 percent of these funds in industry. The funds also involved Technical Assistance Programes to create a skilled labor force to drive industrialization.”       Read: China’s Marshall Plan for Africa-Debt or New Deal ?

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“Speaking as the Chairman of the African Union, President Paul Kagame of Rwanda, expressed the will of Africa very clearly: “Africa wishes to be a full and integral part of the Belt and Road Initiative.” And in spite of the myriad attacks in the Western media regarding the Belt and Road’s alleged “debt trap”—and its description of China’s extensive involvement in Africa as a “new colonialism”—this “fake news” has not blurred the vision of Africa’s leaders, who have stayed focused on the future of the continent.

Ramaphosa also praised the work of China’s Belt and Road Initiative: “Why do we support the Belt and Road Initiative?” “Because we are confident that this initiative, which effectively complements the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China.  It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.” Read: FOCAC Summit: Turning Point in History

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“It can be said that this sentiment is near universal among the African nations now participating in the BRI. Indeed the president of the African Development Bank (AfDB), Dr. Akinwumi Adesina, told Xinhua on the sidelines of the summit, “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure. The population is rising, urbanization is there, and fiscal space is very small.” The AfDB president added, “They are taking on a lot more debt, but in the right way.” Read: Changes Underway as FOCAC Convenes

West Uses “Debt Trap” to Thwart Alliance of China & Africa for Economic Development

September 8, 2018

“The term “debtbook diplomacy”—with the meaning that China builds influence over other nations by deliberately causing them to take on more debt than they can handle—was coined in a report commissioned by (and custom designed for) the U.S. State Department and written in May 2018 by Sam Parker of the Harvard Kennedy School’s Belfer Center for Science and International Affairs. This report was then used by the U.S. State Department to ring alarm bells all over the world about the potential impact of China’s Belt and Road Initiative. But the report’s author, Sam Parker, is not known to have any expertise in economics or to have written anything about the economies of China or other developing countries.

“Historically, the British Empire was, and still is, the master of debt traps. Its methods have been copied in the post-1971, post-Bretton Woods era by such United States- and British-controlled institutions as the International Monetary Fund and World Bank to shackle nations with unpayable debt, in order to loot them, destroy their physical economic productive capabilities and finally force them to give up their national sovereignty. Under the 19th century, British-dominated, imperialist world order, as in the case of the post Bretton Woods system, money is treated as a “global” commodity controlled by private interests, rather than a political tool controlled by sovereign governments which issuance is intended to promote the productivity of society and the general welfare of its citizens.”` (Schiller Institute’s “Why China’s Debtbook Diplomacy is a Hoax”)

African Development Bank President, Adesina, Denies Debt Crisis in Africa

Speaking to the reporters on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Beijing Summit on Sept 5, and addressing the western propaganda that China is drowning Africa with debt, President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, said: “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure.” “The population is rising, urbanization is there, and fiscal space is very small,” the AfDB president added. “They are taking on a lot more debt, but in the right way,” Adesina said, Xinhua reported on Sept 5.

Scoffing at the international campaign that the China imposed debt has begun to cripple Africa, Adesina pointed out that Africa’s overall debt-to-GDP went up from 22 percent in 2010 to 37 per cent last year. He stressed that the ratio is markedly lower than the 100 per cent or 150 per cent of many higher-income countries, and over 50 per cent among emerging economies.

Meanwhile, in an interview with the Nikkei of Japan, the foreign minister of Djibouti, Mahmoud Ali Youssouf, said his country intends to help promote China’s Belt and Road Initiative, but is also cautious about over reliance on China in light of Djibouti’s growing debts linked to Chinese investment. “If [the initiative] brings wealth, progress, development, we welcome it,” he said in that interview, Nikkei reported today

Nigerian President Buhari Debunks the “Debt Trap” Hoax

Muhammadu Buhari, the President of Afria’s most populous nation, Nigeria, has emerged from the hugely successful Forum on China-African Cooperation (FOCAC) with a refutation of what he called “insinuations about a so-called Chinese debt trap.”

“Let me use this opportunity to address and dispel insinuations about a so-called Chinese debt trap,” he told the press today. “These vital infrastructure projects being funded are perfectly in line with Nigeria’s Economic Recovery & Growth Plan. Some of the debts, it must be  noted, are self-liquidating. Nigeria is fully able to repay all the loans as and when due, in keeping with our policy of fiscal prudence and sound housekeeping.”

He said: “I am happy to note that Nigeria’s partnership with China through FOCAC has resulted in the execution of critical infrastructure projects valued at more than $5 billion, over the last three years. We have completed West Africa’s first urban rail system, valued at $500 million, in Abuja. Before then was the 180km rail line that connects Abuja and Kaduna, completed and commissioned in 2016, and running efficiently since then,” the President declared.

He said that Nigeria is currently leveraging Chinese funding to execute $3.4 billion worth of projects at various stages of completion. Among these are: upgrading of airport terminals, the Lagos-Kano rail line, the Zungeru hydroelectric power project, and fibre cables for our internet infrastructure. Nigeria signed an agreement for an additional $1 billion loan from China. The money is for additional rolling stock for the newly constructed rail lines, as well as road rehabilitation and water supply projects.

“Debt Trap” Hoax Exposed by Chinese Spokesperson

At a September 4 press conference on the morning of the second day of the FOCAC Summit, Xu Jinghu, the Special Representative of the Chinese Government on African Affairs, was asked by Reuters about whether the $60 billion financing that President Xi Jinping promised in aid for Africa in his keynote address, would create debt problems for Africa.

Xu Jinghu went through the importance of the eight areas outlined by President Xi in order to raise the level of production and productivity of the African economy.  She also made clear that all of the projects are done in close consultation with the African countries in order to meet what they see as their real needs for further industrialization.

She added that Africa is in “the ascending phase” of its development and “faces a gap in the funding for all of their endeavors…”They need capital development and the African and Chinese economy, which is more developed, are therefore complementary.”

Xu commented, “You have to take into consideration the international situation. The  costs of financing for development on the international market has become very expensive and most of the African countries are still dependent on exporting their raw materials. And the price of these have fallen,which has increased the debt of African countries a great deal.  And if you look at the African countries, you will see that China is not the creditor of those African countries with the biggest debt burden.

China Africa Research Initiative Refutes “Death Trap” Propaganda

The China Africa Research Initiative-(CARI) at the Johns Hopkins School of International Studies, Washington DC refuted the “death-trap” narrative that China is subverting African nations by forcing them into debt.  Their The Path Ahead: The 7th Forum on China Africa Cooperation-(Briefing Paper #1, 2018), reports: “Finally, in just three African countries, Chinese loans are currently the most significant contributor to high risk of/actual debt distress” They are;  Djibouti, Republic of Congo, and Zambia.  

Read complete CARI  briefing paper

 

Read:

Who Owns Africa’s Debt: China or Western Nations & Institutions?

 

FOCAC Summit: President Xi “China and Africa will walk together towards prosperity.”

{I have been telling my friends for years that China-Africa cooperation will change the African continent. With investments in vital categories of infrastructure, African nations can industrialize and develop advanced agro-manufacturing sectors. Economic sovereignty is now possible for African nations after 500 years of slavery and colonialism.

This recent FOCAC summit has placed Africa-China relations on center stage in front of the whole world. As Faki Mahamat, Chair of the African Union Commission said at the conference; China-Africa cooperation is a solid foundation for a new international order.(Watch the video of his remarks below)  

I will be writing more on the significance of the new era of China-Africa cooperation, but for now, we can and should rejoice. The world has changed for the better, even though there are dangerous pitfalls ahead. }

 

China To Invest $60 Billion in Africa over the Next Three Years; Xi Says: ‘Explore a New Path of International Relations’

Sept. 3, 2018

Chinese President Xi Jinping in his keynote of the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), announced that China would be investing $60 billion in Africa over the next three years, which would include $15 billion of interest-free and concessional loans, $20 billion of credit lines, a $10 billion special fund for development financing, a $5 billion special fund for financing imports from Africa, and encouraging investment by Chinese companies to the tune of $10 billion in Africa.

In his speech, President Xi said that China-Africa cooperation was based on the following principles;  The Five “No’s”:

No interference in African countries and pursuit of development paths that fit their national conditions;

No interference in African countries’ internal affairs;

No imposition of China’s will on African countries;

No attachment of political strings to assistance to Africa;

No seeking of selfish political gains in investment and financing cooperation with Africa.

“We welcome Africa to the fast train of Chinese development,” Xi said. Central to the cooperation has been the Belt and Road Initiative, which in Africa is in synergy with the African Union’s “Agenda 2063,” which marks the centennial of the official end of colonialism in Africa in 1963.

President Xi laid out the eight major initiatives that China would implement in collaboration with Africa in the coming three years:

1. In industrial promotion, China will set up a China-Africa trade expo in China in order to encourage Chinese investment in Africa.
2. It will also carry out 50 agricultural assistance programs, provide $147 million in food aid to African countries affected by natural disasters and send 500 agricultural experts to Africa.
3. With regard to infrastructure, China together with the African Union will formulate a China-Africa infrastructure cooperation program.
4. With regard to trade, China will increase its imports from Africa, in particular non-resources products.
5. On green development, China will undertake 50 projects focusing on climate change, ocean, desertification prevention and control, and wildlife protection.
6. On capacity building, China will set up 10 workshops in Africa to offer vocational training for young Africans. It will also train 1,000 high-caliber Africans for training in innovation sectors; provide Africa with 50,000 government scholarships; and sponsor seminar and workshop opportunities for 50,000 Africans and invite 2,000 African students to visit China for exchanges.
7. In health care, China will upgrade 50 medical and health aid programs for Africa. On people-to-people exchanges, China will set up an institute of African studies and enhance exchanges with Africa on civilization.
8. And on peace and security, China will set up a China-Africa peace and security fund and continue providing free military aid to the African Union and will support countries in the Sahel region, and those bordering the Gulf of Aden and the Gulf of Guinea, in upholding security and combating terrorism in their regions.

African Union’s Moussa Faki Mahamat, Addresses FOCAC Conference

Please review this excellent speech by Faki Mahamat, Chair of the African Union Commission, at the Forum on China-Africa Cooperation. In his remarks the AU Chair called forthe urgent reform of the international financial institutions…That China-Africa cooperation is a solid foundation for a new international order…Our partnership [with China] can reshape the world’s geo-political landscape”He went onto say that the AU welcomes the Belt and Road Initiative and its synergy with AU’s “Agenda 2063.”

 

Presidents Ramaphosa and Kegame: Africa Supports the Belt and Road Initiative

In his speech to the FOCAC Summit, South African President Cyril Ramaphosa said, the Belt and Road Initiative was in the interests of the African nations. China-Africa cooperation, he said, was in the interests of the African nations. “In the values that it promotes, in the manner that it operates, and in the impact that it has on African countries. FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe...It is premised on the African Union’s Agenda 2063, a vision that has been crafted in Africa, by Africans. It is a vision of an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the international arena.”

“Why do we support the Belt and Road Initiative?” Ramaphosa asked. “Because we are confident that this initiative, which effectively complements the work of FOCAC, will reduce the costs and increase the volume of trade between Africa and China. It will encourage the development of Africa’s infrastructure, a critical requirement for meaningful regional and continental integration.”

Ramaphosa was followed by Rwandan President Paul Kagame, the current rotating chairman of the African Union. “Africa wishes to be a full and integral part of the Belt and Road Initiative. The gains will be enjoyed by everyone.” Kagame praised in particular the personal commitment of President Xi to this initiative. “He has visited every region of our continent, including my country Rwanda. China has proven to be a win-win partner and dear friend,” Kagame said. UN Secretary General Antonio Guterres gave support to the message expressed by the African leaders, who said that “it is vital that current and future development cooperation contributes to peace, security and to building a ‘community of shared future for mankind,'” reiterating a concept that lies at the basis of President Xi’s conception of a new form of international relations. Guterres also expressed support for the importance of the strengthening South-South cooperation.

 

Big Plus for Africa: Belt & Road, BRICS, and Africa-China Summit, Converging for Development

{Heading into the 7th  Forum On China-Africa Cooperation-(FOCAC) we are already witnessing significant changes in the physical infrastructure of Africa as a result of China’s One Belt and Road Initiative, the BRICS and previous FOCAC summits. Next week’s China-Africa Summit portends greater cooperation for investment in infrastructure and manufacturing, leading to the long over due industrialization of the continent. Thus finally liberating Africa from the effects of 500 years of slavery and colonialism. In addition to China, many nations are investing in Africa in constructive ways, but unfortunately not the United States, which is retreating from Africa. President Trump can and should reverse this trend by joining China’s Belt and Road development of this great continent, which in less than two generations will be the population center of world. Please review the articles below.}

Chinese Envoy to FOCAC: `Twin-Engines’ of BRI and FOCAC Will Transform Africa

Aug. 29, 2018 –Zhou Yuxiao, Chinese Ambassador to the Forum for China-Africa Cooperation (FOCAC), spoke of the historic impact of the Sept. 3-4 FOCAC summit, in an interview with Xinhua yesterday. His observations come as many African heads of state are already arriving in Beijing, even before the Sept. 3-4 formal sessions of the Forum take place. Founded in 2000, FOCAC has had two previous heads-of-state meetings, one in 2006 and one in 2015.

Zhou said that the China-Africa collaboration had proceeded in small steps, but successfully over the years. All the while, China’s ability to “walk the walk,” and Africa’s success in collaborating, made things work, to the point of widespread trust and effectiveness. At the 2015 FOCAC meeting in South Africa, China pledged financing in the range of $60 billion for implementing ten cooperation plans announced at the time. Now financing is also coming from the Silk Road Fund, the BRICS New Development Bank, and private Chinese firms.

Xinhua summarized, “A key aspect to watch, Zhou said, will be how China and Africa link the Belt and Road Initiative (BRI) with the UN 2030 Agenda for Sustainable Development, the African Union’s Agenda 2063, and African countries’ development plans.” This year, diplomatic relations were established between the African Union Commission (currently headed by Rwanda) and FOCAC. Zhou referred to the the BRI and FOCAC being “twin engines” for driving cooperation further in Africa. Many African leaders and experts are forecasting what lies ahead.

Lesotho’s Prime Minister Thomas Motsoahae Thabane, said in an Aug. 22 Xinhua interview, that the upcoming summit, “is a landmark in the world aiming to improve itself for the survival of the human race, which faces multiple challenges today … the commitment is not only to specific countries in Africa, but to Africa in general.” China is a “true friend” of Lesotho, not “by word of mouth … but through actions, actions that push us to go from the situation of being underdeveloped to a situation of being developed. What more can you wish for from a friend than to stretch a hand of friendship in order to raise you up when you were flat on your stomach?”

Thabane further pointed out that relations with China are “mutually beneficial.” In the past, for Western countries, the benefit was “always for what they call `the Mother country.’ Now, China is not like that, that is why we feel like we have a true and loyal friend in China.”

Hisham AbuBakr Metwally, an Egyptian researcher with the Ministry of Foreign Trade and Industry, wrote an Aug. 21 opinion article for CGTN, reviewing accomplishments in rail, agriculture, energy, education, and other areas in Africa, thanks to work with China to date. {“FOCAC — Unprecedented Successful Mechanism, Reshaped Africa”} But he forecast more and bigger projects and a bright future. “After the completion of all mega infrastructure projects and industrial zones, the continent will change completely.”

Note that CGTN has prepared a five-episode documentary entitled “A New Era of China-Africa Cooperation,” to show the development of African countries and to present the achievements of China-Africa cooperation.

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China-Africa Research Initiative-(CARI) at Johns Hopkins in Washington DC, provides a useful report on the progress of China-Africa collaboration. It also dispels the myth that Chinese loans are bankrupting all Africa nations. Many decades before China started investing in Africa, the continent had been suffocated by hundreds of billions of dollars of parasitic debt from Western institutions.

Excerpt from its conclusion highlight:

“Belt and Road. The language of the 2018 FOCAC will likely include more mentions of the Belt and Road Initiative, given that it is a priority of President Xi Jinping. Chinese contractors are keen to win Chinese finance for infrastructure projects desired by African governments, many of whom have been inspired by China’s industrialization and infrastructure capacity. Chinese-financed infrastructure projects in Africa such as the standard gauge railway transport projects in Kenya and Ethiopia, and new trade and industrial zones in Djibouti, Egypt, and Morocco, have been marketed as part of the Belt and Road Initiative.”

Read the complete report: The Path Ahead: The 7th Forum on China-Africa Cooperation

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This article discusses the “deepening relations” with Africa by the rest of world, and appropriately asks: “Where does this Leave the United States?” Read: The World is Coming to Sub-Saharan Africa. Where is the United States?

 

China’s Belt & Road Initiative Truly is Helping Africa Develop

Below are edited excerpts from a new report by the China-Africa Research Initiative-at Johns Hopkins in Washington DC (Brief #23, 2018). It provides a useful analysis that refutes the misinformation that China is “stealing” Africa’s resources.

“Silk Road to the Sahel: African ambitions in China’s Belt and Road Initiative”

Yunnan Chen

Where Does Africa Fit?

THE BRI SIGNIFIES A SHIFT IN CHINA’S economic engagement with Africa, away from the resource trade characterized by the boom of the 2000s, towards a greater emphasis on infrastructure, industrial cooperation, and connectivity. From single bilateral infrastructure projects, there has been a new term ‘corridorization’ of infrastructure: creating economic corridors and networks at a regional scale to promote cross-border trade and integration.

East and North Africa have been the focus of the BRI in Africa, though countries in West and Southern Africa have also signed cooperation agreements under the framework of the BRI.  As part of the ‘maritime silk road’, Chinese actors have been linked to several major port and transport projects. Chinese firms have invested heavily in Egypt’s Suez Canal corridor, with plans to expand to a second canal as well as new terminals at the port of Alexandria.

China’s Maritime Silk Road connecting Asia to the East-coast of Africa

In Sub-Saharan Africa, Djibouti has emerged as a BRI hub. As well as being the location for its first overseas naval facility, China has financed multiple economic infrastructure projects totalling US$1.8 billion in the small African state, including a new multipurpose port at Doraleh (with specialized terminals for livestock and LNG), as well as a new free trade zone complex adjacent to the port, commissioned in July 2018 . In Kenya, Chinese firms have also won construction contracts for three berths for the new deep-water port in Lamu.

Politically, the BRI’s presence in Africa has been expanding. The most recent Johannesburg Forum of China Africa Cooperation-(FOCAC)  declared as one of its goals: “[to] actively explore the linkages between China’s initiatives of building the Silk Road Economic Belt and 21st Century Maritime Silk Road and Africa’s economic integration and sustainable development agenda”. Countries linked to the BRI; Morocco, Egypt, and Ethiopia, have also been singled out in FOCAC among ‘industrial cooperation demonstration and pioneering countries’ and ‘priority partners for production capacity cooperation countries’; these countries have seen a rapid expansion of Chinese-built industrial zones, presaging not only greater trade but also industrial investment from China. However, it may also suggest further stratification in China’s political engagement with Africa as a region, increasing the geopolitical importance of select countries.

Continue reading Silk Road to the Sahel

Rwanda and South Africa Sign Deals With China and India Before BRICS Summit

Xi Jinping Arrives in Johannesburg, South Africa for BRICS Summit

July 24, 2018

China’s President Xi Jinping arrived in South Africa today for a bilateral meeting President Cyril Ramaphosa, to be followed by the July 25-27 Tenth BRICS Summit. As is his custom, Xi wrote an op-ed in the local press before his arrival, titled “For a New Era of China-South Africa Friendship.” In it, Xi began by emphasizing that “Our peoples forged a deep friendship during our common struggle against imperialism, colonialism and racism.” He then wrote:

“Over the past six years, our two countries have worked closely as co-chairs of the Forum on China-Africa Cooperation (FOCAC) to advance the comprehensive strategic and cooperative partnership between China and Africa. Our bilateral ties have thus served as a model for China-Africa relations, for South-South cooperation, and for unity and cooperation among emerging market countries, and offered valuable experience for building an even stronger community with a shared future between China and Africa and a new type of international relations
featuring mutual respect, fairness and justice, and win-win cooperation….

“We must strive for new outcomes in our practical cooperation. We need to promote complementarity between our development strategies, and make full use of bilateral mechanisms, FOCAC-(Forum on China-Africa Cooperation), the Belt and Road Initiative, BRICS cooperation, and other platforms to deepen cooperation in key areas such as industries, production capacity, resources and energy, infrastructure, finance, tourism, and digital economy and deliver more benefits to our peoples.”

On the bilateral front, South African President Ramaphosa announced that the two countries signed “several agreements and memorandums of understanding that are intended to further deepen our relations, including investment commitments that have been struck to the value of $14.7 billion.”

Xi Jinping and Rwanda’s Kagame Sign Multiple Agreements Strengthening Belt and Road Cooperation

Chinese President Xi Jinping met on July 23 with Rwandan President Paul Kagame on the third leg of his tour of Africa and the Middle East, which so far has taken him to the U.A.E. and Senegal. Xi travelled to South Africa today (for the July 25-27 BRICS summit), and he will then stop in the Indian Ocean island-nation of Mauritius on the way back to China.

Xinhua reported that “after their talks, the two heads of state witnessed the signing of multiple agreements on bilateral cooperation in the Belt and Road Initiative and other areas.”

In the meeting with Kagame, Xi stated, according to Xinhua, that “Beijing is willing to work with Kigali to translate their traditional friendship into concrete benefits for the two countries and the two peoples, and open a new chapter in their friendly cooperative relations.” As he has done on his other stops, Xi called on the two countries to “strengthen the link between their respective development strategies, give full play to their complementary advantages, and …cooperation in more areas and at deeper levels.”

Xi told Kagame, Xinhua wrote, that “China welcomes Rwanda’s participation in the international cooperation within the framework of the Belt and Road Initiative, and encourages more Chinese investment in Rwanda to help advance its industrialization and modernization.” Xi also talked about broader China-Africa relations, which “have always been defined by sincere friendship, unity and cooperation. The two sides have become a community with a shared future going through thick and thin together as well as a community with shared interests dedicated to win-win cooperation.”

Kagame, for his part, called China “a reliable friend who shares weal and woe with Africa. Kegame said it is of great importance for Rwanda and Africa to develop friendly ties with China. He spoke highly of China’s valuable assistance for Rwanda in such areas as infrastructure construction, agriculture and education, adding that China’s helping hand has made positive contributions to his country’s reconstruction and livelihood improvement.”

Xinhua further said that Kagame emphasized that “Rwanda is willing to enhance cooperation with China within the framework of the Belt and Road Initiative, which offers a significant opportunity for both Rwanda and Africa. As the [African Union] AU’s rotating chairman, Kagame stressed that China’s long-standing firm support is of great value to Africa’s development. The African side, he said, looks forward to attending the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) in September, and stands ready to jointly push forward the development of FOCAC, so as to generate more benefits for the people of both sides.”

Modi in Rwanda Witnesses Signing of Economic and Defense Agreements

On his way to attend the 10th anniversary BRICS Summit over July 25-27 in Johannesburg, South Africa, the Indian Premier, Narendra Modi, stopped in Rwanda and, along with Rwandan President Paul Kagame, witnessed the signing of seven bilateral pacts at Village Urugwiro, the President’s office in Kigali, by Indian and Rwandan officials, reported Rwanda’s {New Times}.

Prime Minister Modi is the first Indian head of government to visit the East African nation, which is considered an important gateway for India to eastern Africa. Modi is on a three-nation tour, beginning with Rwanda and Uganda, and thence to Johannesburg for the BRICS summit. He arrived in Rwanda just as Chinese President Xi Jinpig was leaving that country.

Agreements in the area of trade, defense, dairy cooperation, agriculture, culture, leather and allied sectors and two lines of credit worth $200 million for expansion of the special economic zone and irrigation scheme were signed, IANS reported.

“During the talks, both leaders reviewed the entire gamut of bilateral cooperation and expressed satisfaction at the excellent relations between Rwanda and India in the overall context of Strategic Partnership,” India’s Foreign Ministry stated. Ties between India and Rwanda were elevated to the level of  Strategic Partnership in January last year, IANS reported.

Africa Collaboration With China’s Silk Road Good for the Continent

Nigeria And China Are In Dialogue On The Belt And Road Initiative

–The Round Table Dialogue held recently in Abuja, organized by the Center for China Studies and chaired by Nigeria’s former Foreign Minister and former ambassador to the People’s Republic of China, Alhaji Aminu Wali, discussed the strategy of connectivity across countries, and within countries. The Belt and Road Initiative will spawn an elaborate network of land, rail and maritime transport arteries and industrial clusters along its now-inclusive global routes, Charles Onunaiju wrote in his article, Nigeria and China’s Belt and Road Initiative, published in “The Sun” on March 28.

“The dialogue recognized that the core feature of the Belt and Road, which is essentially connectivity, is at the heart of the contemporary challenge of Africa, and therefore urged Africa in general, and Nigeria in particular, to play decisive roles in the mechanism of the Belt and Road by appropriate policy engagement.”

The Deputy Ambassador of the People’s Republic of China to Nigeria, Li Jing, speaking on that occasion, said “the continent’s development agendas are therefore in synergy with the Belt and Road initiative, and there is no doubt that Africa and Nigeria, through appropriate policy facilitation, could align to the central features of the Belt and Road to advance her modernization and industrialization.”

Belt and Road Initiative and the African Continental Free Trade Area Provide Opportunities in Africa, Says a World Bank Officer

–In an article in the “Daily Nation” of Kenya, Peter Warutere, a communications officer for the World Bank based in Nairobi, said the condition created by the new African Continental Free Trade Area (AfCFTA) and China’s Belt and Road Initiative (BRI) “presents a window of opportunity for African

countries to transform their economies, achieve rapid growth, and create jobs for their burgeoning youth population.”

He also wrote that “Kenya is well positioned to greatly benefit from the AfCFTA and the development of the Indian Ocean maritime route connecting China with the East African coastline.

The gateway to eastern Africa, Kenya should invest heavily in upgrading its infrastructure and industrial capacity. The window of opportunity for it is to become a vibrant industrial and logistics hub for Sino-African trade, investment and exchange.”

Kenya’s Secretary of National Treasury, Henry Rotich, said his government hopes China will help to make Kenya’s Big Four economic agenda a success. The Big Four agenda consists of food security, affordable housing, manufacturing, and affordable health care, Prensa Latina reports. “We want the Chinese private sector to participate in projects related with this agenda,” the Secretary said.

‘Nuclear Could Turn Zambia into a Regional Food Basket’

–That is the plan, by the Zambia Agriculture Research Institute and the Agriculture Ministry, with help from Russia’s Rosatom nuclear agency. An article under that headline yesterday by the African News Agency describes how for Zambia, and most of Africa, nuclear technology can dramatically improve food availability and nutrition on the continent.

An agreement has been signed with Rosatom for the establishment of a Center for Nuclear Science and Technology in Lusaka, which will help prepare Zambia for nuclear power in the future. Zambia suffers power rationing between 8 and 14 hours per day when water is low at its hydroelectric dams. But immediately, the application of nuclear science and technology will be in agriculture.

Crops that are resistant to disease, able to withstand environmental stresses, such as drought, and produce higher yields are developed by using nuclear radiation to change the genetic makeup of plants. Zambia is developing new crop varieties with these characteristics, which will not only improve the nutrition of the population, but also the lives of the farmers.

Nuclear radiation will also be used for preserving food, using radioactive isotopes. This will immediately increase the food supply. A large percentage of the food produced, especially

in developing countries, never reaches the dinner table. For example, 40% of the fish produced globally rots before it can be eaten. Zambia will be able to join the 60 nations in the world that currently preserve food through irradiation.

Other applications of nuclear technology in agriculture will be for pest and disease control, inspection of the quality and quantity of water resources, and soil conservation.

The Zambia Agriculture Ministry is running multiple research projects in various fields to up-shift agriculture. With the Center for Nuclear Science and Technology, they will have new tools

Benin President Wants China To Build Rail Project

–President Patrice Talon of the West African nation of Benin has asked the French giant Bolloré and a local firm to “withdraw” from a rail infrastructure project so that China could take over the project, according to an interview Talon gave to the French business magazine {Challenges}, published yesterday.

Benin and neighboring Niger have been attempting to link the Benin port of Cotonou with Niger’s capital, Niamey, since 2008.

Talon described the Bolloré offer as “lower-end,” saying that “a private investor cannot finance the railway we want alone.” Talon also said that “China has the necessary financial means” to support the project, expected to cost around $4 billion and pointed out that “China has demonstrated its technical know-how” for building infrastructure in Africa.

Joint Projects Are a Testament to Cameroon’s Trust in China, Says President, Visiting Beijing

–Cameroon President Paul Biya is on a three-day state visit to China, and, as President Xi Jinping

pointed out, he is the first head of state to come to China since President Xi’s reelection. The two presidents met yesterday. President Biya stated that relations between the two countries has stood the test of time, and that China has become one of Cameroon’s strategic development partners. Without listing all of their specific joint projects, President Biya said that they are a testament to the trust that Cameroon has in China.

This afternoon, Biya met with China’s top legislator, Li Zhanshu, of the Standing Committee of yhe National People’s Congress, during which they discussed further bilateral relations in the future. Li said China is willing to have more friendly exchanges with Cameroon’s parliament, and expressed hope that both countries would support each other on political issues. More people-to-people exchanges were also discussed.

In turn, Biya “spoke highly of China’s foreign policy,” Xinhua reports, and said he appreciated China’s long-term support for Cameroon.

Africa Should Learn From China, Advises South African Scientist

–Africa should learn from China’s rapid advances in education, science, and technology to solve socio-economic challenges, said South African scientist Neil Turok. He is the founder of the African Institute for Mathematical Sciences, and director of the Perimeter Institute for Theoretical Physics in Canada. Turok made his remarks yesterday at the opening of the Next Einstein Forum, being held in Rwanda. There are about 1,600 participants at the conference, which takes place March 26-28, and at least half are under the age of 42, {xinhua} reports.
“China has invested heavily in education, science, and technology,” the scientist said, “and the results are amazing. China is emerging as a new global science and technology powerhouse.” He called upon all African countries to focus, prioritize, and promote science and technology for solving economic challenges.