Africa Manufacturing Must be Geared Up to Fight COVID-19

There are not enough ventilators in the world right now for the world’s needs, so we must move quickly to do our part, says the writer. Picture: Simon Orlob/Pixabay
There are not enough ventilators in the world right now for the world’s needs, so we must move quickly to do our part, says the writer. Picture: Simon Orlob/Pixabay (courtesty of iol.co.za)

April 8, 2020

Below are two important articles on how South African nations are responding to the coronavirus.

According to author, Ramasimong Phillip Tsokolibane, South Africa can retool its manufacturing capacity to begin production of ventilators.  These life saving machines will be essential to save lives as the coronavirus proliferates across the African continent, especially in South Africa. As of today,  April 7, Africa Centers for Disease Control and Prevention reports 10,789 cases of COVID-19, 536 deaths and 1,122 recoveries for 52 nations reporting.South Africa has 1,749 cases,13 deaths and 45 recoveries. For a country with less than 5% of Africa’s total population, it has 16% of the total cases-the highest among all African nations.  South Africa being the most industrialized nation on the continent should take up the challenge of gearing up production of ventilators, and lead other African nations by example in responding to this pandemic.

Tsokolibane writes: “To survive, the severely ill need ventilators, the machine that helps you breathe or breathes for you, when the airways in your lungs are too swollen and inflamed for you to breathe on your own. We have only about 6 000 of them. Ten times as many will not be nearly enough at peak levels of the pandemic. A ventilator can cost R180,000 or more.”

“We must plan on making at least 80,000 ventilators for South Africa! The government should issue letters of intent to purchase from multiple manufacturers who meet the needed specifications. We must make at least 27,000 for Zimbabwe! Make more for Namibia, Angola, Zambia, Mozambique, DR Congo, and others. We must make more than we expect to need, because they must be on hand everywhere; a person who needs a ventilator now, may be gone before someone can go across town to fetch one.”

Read: Why South Africa Must Start Manufacturing Ventilators Immediately

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The Zimbabwean reports on a significant initiative underway in Zimbabwe: “The government has turned to its tertiary institutions with engineering and technology capacity including University of Zimbabwe, Chinhoyi University of Technology (CUT), Great Zimbabwe University (GZU), Midlands State University and the Harare Institute of Technology, among others, for production to meet local demand…Higher education minister professor Amon Murwira told Quartz Africa the hand sanitizers, masks and gloves were made to meet the standards of the WHO…”

Zimbabwe’s universities are manufacturing masks, gloves and hand sanitizers to beat coronavirus

 

New Economic Order Required to Combat COVID-19 in Africa

COVID-19 will spread in Africa (courtesy theconversation.com)

New Economic Order Required to Combat COVID-19 in Africa

Lawrence Freeman

March 30, 2020

As of March 30, 2020, the Africa CDC reports the total number of COVID-19 cases-4,760, deaths-146, and recoveries-355. The totals for individual nations vary from higher levels:  Algeria 511 cases and 31 deaths; Egypt 609 and 40; Morocco 479 and 26, South Africa 1280 and 1; Nigeria 111 and 1 (cases and deaths respectively); to dozens of nations reporting 10 or less cases and 0 deaths. Africa CDC COVID-19

While these figures for Africa are significantly lower than nations in Europe, Asia, and North America, in some cases orders of magnitude lower, there is reason for great concern for the spread of the Coronavirus throughout the African continent. Many African nations are unable to adequately test their citizens, and one should assume the number of cases is vastly unreported. Also, there unique features of African society that present an impediment to isolation of those infected with COVID-19, and social distancing. African society are centered around crowded mass markets, and culturally Africans are prone to show their friendliness towards others by holding hands.

Factoring in a weak healthcare system, poor nutrition, inadequate housing, lack of electricity and clean water, and already prevalent existing diseases (HIV AIDS, Malaria, TB) in the population, COVID-19 could propagate very rapidly, overwhelming an insufficient number of beds, hospitals and doctors. For Africans, the consequences of the proliferation of COVID-19 could be catastrophic, resulting in higher levels of mortality and morbidity than we have presently experienced.

Debt Restructuring Necessary for Africa’s Health

In response to the COVID-19 pandemic, for the first time in many years, African leaders are demanding a restructuring of the onerous debt, whose payment has diverted nations’ revenues away from investing in vital categories of infrastructure, including healthcare. Payment of debt, mere loans, cannot be, to quote from William Shakespeare’s Merchant of Venice, “the pound of flesh” used to kill people. Tragically, since African nations liberated themselves from European colonialism, debt has been used as a weapon to repress the development of emerging nations.

On March 24, the office of the Ethiopian Prime Minister, Dr Abiy Ahmed, released an incisive three point proposal to the G20 nations outlining necessary actions to be taken to safeguard African nations during this pandemic. He began by dramatically stating the truth, “COVID-19 poses an existential threat to the economies of African countries. Our economies, fragile and vulnerable even in the best of times will face serious shocks.” He than discussed a crucial underlying constraint imposed on African nations, “the heavy debt burden, the servicing of which alone costs many of them [nations] significantly more than their annual health budgets.”

Prime Minister Abiy requested from the G20:

  • $150 billion “Africa Global COVID-19 Emergency Financing Package”
  • “Global Africa Health Emergency Package”
  • “Debt resolution and Restructuring Package.”

Elaborating on debt restructuring, Prime Minister Abiy wrote, “Ethiopia proposes all interest payments to government loans should be written off. We suggest the remaining debt be converted into long term low interest loans with 10 years grace period before payments. All debt payments will be limited to 10% of the value of exports.”

The theme of restructuring Africa’s debt to deal with the present crisis, was also discussed in a virtual conference of African finance ministers on March 19, according to the United Nations Economic Commission for Africa (UNECA).  To battle COVID-19, the ministers said, “Africa needs an immediate emergency economic stimulus to the tune of $100 billion” The UNCEA reports that they are asking that $44 billion, almost fifty percent of the funds requested, would come from halting payments of debt service, and in the most fragile nations to the loan principal as well.  African Finance Ministers Discuss Debt

In an insightful column, published in the March 25th edition of the Financial Times, Prime Minister Abiy again raises the necessity of debt alleviation: “Building on what has been announced by international financial institutions, the G20 must launch a global fund to prevent the collapse of health systems in Africa. The institutions need to establish a facility to provide budgetary support to African countries. The issue of resolving Africa’s debt burden also needs to be put back on the table as a matter of urgency.” (emphasis added)  PM Abiy “If Covid-19 is not beaten in Africa it will return to haunt us all”

 

Crowded Nigerian Market (courtesy buzznigeria.com)

 

Emergency Actions Taken

Nigeria—March 18, with 8 confirmed cases, imposed a travel ban on 13 high-risk COVID-19 infested countries; mandated a ban open worship and other public gatherings; mandated compulsory laboratory tests on all staff and members of the national assembly; mandated that public institutions should be equipped with temperature gauge.  All airports in Nigeria are closed to international commercial flights until 23 April.

Rwanda—March 21, with 17 confirmed cases of COVID-19, suspended all arriving and departing commercial flights for 30 days; shutdown of schools, universities, and places of worship for two weeks; the office of the Prime Minister released a list of nine preventive measures.

Ethiopia—March 23, with 11 confirmed COVID-19 cases, enforced a 14 day mandatory quarantine for all travelers entering the country; closed all schools, and banned all gatherings and sports events for 15 days. March 25, Ethiopian President Sahle-Work Zewde ordered that more than 4,000 prisoners be pardoned.

Senegal–March 23, declared a state of emergency.

Ivory Coast–March 23, declared a state of emergency, imposed a curfew from 9:00 pm to 5:00 am, and shut the country’s borders

South Africa—March 26, with over 900 confirmed cases, began a three-week nationwide lockdown; the lockdown is considered one of the strictest, banning alcohol sales, dog-walking, and jogging in public.

In response to the COVID-19 crisis, China has sent to the African Union, 2,000 test kits to be dispersed across the continent, and is expected to send another 10,000, along with medical supplies. China has also launched a new Health Silk Road. On Sunday, March 22, African Union received 1.1 million test kits, 6 million masks, 60,000 medical protective suits and face shields, donated by Chinese billionaire Jack Ma.

Lessons We Must Learn

We can and should learn the following lessons from this contagious and lethal virus. Decisions made by nations for securing their future can now be informed from the very painful consequences of the global spread of COVID-19. If society, had learned the principles of the science of physical economy, instead of being seduced by the “smell of money,” we might very well have been able to avoid the worst of the tragic effects of COVID-19, which continue to plague our planet.  An unprepared and underfunded national economy gives society little chance to deal with any serious crisis, much less a pandemic.

*Globalization has always been a trojan horse, an Achilles heel for the security of any nation. The idea that a nation should gamble its security on the premise of buying necessary commodities from anywhere in the world at the cheapest price was always insane.  Witness today’s disruption of multi-thousand mile long supply chains as proof.

For example, properly understood, feeding one’s population is a matter of national security. African nations have undermined their security and sovereignty by failing to be food self-sufficient. Procuring food from other continents or at great distances across Africa is not only foolish, but totally unnecessary given the fecundity of African soil.  By conservative estimates, African nations spend $35 billion on imported food. A colossal and senseless waste of foreign exchange, which contributes to a nation’s poverty.  And a poor-hungry population is fertile ground for orchestrated destabilizations. Nations are ordered by institutions like the World Trade Organization to buy their food at the cheapest price regardless of domestic consequences.

The alternative to globalization is obvious; each nation has the sovereign obligation to foster productive agriculture and manufacturing sectors. The current pandemic of the coronavirus has brought to the fore the perilous effects of nations dependent upon importing lifesaving products from other nations.

Africa’s huge infrastructure deficit has always been a killer for Africa; literally!  Many of my friends and critics alike have objected to my insistence that the most critical prerequisite for Africa’s development is infrastructure. The most essential human right, is the right to live, and to live as a dignified human being. That is impossible with pathetically low, in some cases, non-existent levels of infrastructure.

Hospital in South Africa (courtesy borgenproject.com)

*Healthcare infrastructure is a necessity to sustain longevity of life—the essence of a human right. It embodies all components of infrastructure, manufacturing, and agricultural industries.

Examine what is necessary to maintain a hospital. Abundant electricity for lights and machines, access to clean water, roads and rail lines to transport patients, advanced medical equipment, a manufacturing sector to produce all the products consumed by hospital staff, food production to feed patients and staff, colleges, medical schools to train nurses and physicians, clothing for patients and staff, protective gear, and the list goes on. Now ask oneself, how many hospitals are there per 100,000 population in Africa?  How many basic hospital beds exist? How advanced intensive care units? If you look at the chart in the link below, which admittedly is several years old, you can see the huge discrepancy in hospital beds per 1,000 people in Africa compared other parts of the world. Hospital Bed per 1,000 in Africa

In the years 2012-2013, the US had 2.9 beds per 1,000 people, Italy 3.9 and Spain 3. All these nations are now experiencing a shortage of beds and all are considered hot spots in this COVID-19 pandemic. Shockingly, in that same time frame, over 25 African nations were recorded to have 1 bed or less per 1,000.

In 1975 the U.S. had 1.5 million hospital beds, and today has 925,000-over half a million fewer. Today the US has an average of 2.5 beds per 1,000 people, and California, Oregon, and Washington have 2 beds or less per 1,000. By contrast, before the outbreak of COVID-19, Wuhan, China had 4.3 beds per 1000, and they have added 10,000 hospital beds since the outbreak began by building several new hospitals.

Think for a moment would kind of investment in infrastructure, production, and labor that would be required for African nations to even reach the insufficient US level of hospitals and beds. How many hundreds of thousands of megawatts of electricity would have to be generated to supply these new hospitals? How many million gallons of water would be required? Africa has never built up a minimum healthcare infrastructure and is woefully unprepared should the pandemic surge on the continent in the weeks and months ahead.

 As we are witnessing today, the West is suffering greatly from the deliberate slashing its own healthcare infrastructure over recent decades. This has been accomplished through austerity, shortsightedness, and an indecent obeisance to a desire to make fast-money by gambling on Wall Street.

*State government intervention has risen to the fore during this scourge of COVID-19, despite decades maligning the role of the state. It is now clear that contrary to the false claims that the state has no role in the world of neo-liberalism, laissez-faire, and unregulated free-trade, government supervision and government credit-debt to sustain people and the economy have proofed invaluable and lifesaving. Putting aside the multi-trillion dollar bailout to the global gambling casino known as the financial system, governments have issued emergency funds necessary to maintain society. Much more government intervention will be required to save lives in the weeks and months ahead.

Globalization (courtesy thegeopolitics.com)

 A New Just Economic Order       

Prime Minister Abiy’s column in the Financial Times beseeches the need for a coordinated global response to COVID-19:

 “There is a major flaw in the strategy to deal with the coronavirus pandemic. Advanced economies are unveiling unprecedented economic stimulus packages. African countries, by contrast, lack the wherewithal to make similarly meaningful interventions. Yet if the virus is not defeated in Africa, it will only bounce back to the rest of the world. 

That is why the current strategy of uncoordinated country-specific measures, while understandable, is myopic, unsustainable and potentially counter-productive. A virus that ignores borders cannot be tackled successfully like this.

We can defeat this invisible and vicious adversary — but only with global leadership. Without that, Africa may suffer the worst, yet it will not be the last. We are all in this together, and we must work together to the end.”

His comments implore the urgent necessity for an entirely different global approach to be taken by nations. We must absorb the horrible reality of today’s deadly crisis to motivate our passions to create a better future for civilization.

For humanity to survive, we can no longer tolerate living in a world governed a geo-political doctrine that views other countries crudely as either friend or foe, with winners on top and losers underneath.  We can no longer live in a system that values mere money above human life. Look at Sudan, whose people are suffering, while Western institutions led by the International Monetary Fund use Sudan’s $53 billion in (unpayable) debt as weapon to dictate their “reforms.”

Months before COVID-19, the United Nations asked for $135 million to fight the unprecedented Desert Locust threatening the food supply in Kenya, Somalia, and Ethiopia. The fund is still $100 million short of that goal. The UN has called the locust swarm in East Africa “extremely alarming.” Tthe current pandemic is affecting the ability for African nations to obtain the minimal equipment and pesticides required.

We must bring into creation a new model for governing. A new paradigm that values human life above all else. One that acknowledges the universal moral resemblance of all human beings.

The call for a New Just World Economic Order was first articulated in the 1970s and has been echoed for decades by world leaders. All foreign, domestic, economic policy should be formulated upon the recognizable principle that all people share a common aim and destiny. We, the human race, are unified by our endowed unique quality; the power of reason-creative imagination.  To resolve the multiple crises facing humanity, including a meltdown of the global financial system, it is urgent that an international conference be convened to establish a new template for economic and political relations among sovereign nations. The foremost underlying principle for such deliberations is acknowledging that the aspiration of all nations should be the elevation of human creative life. For all peoples.

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

 

The United States’ Economy and Culture Are Shrinking

The article below discusses the physical effects on the US population of the shrinking of America’s economy and culture over many years. The USA was founded on profound principles still valid today. However, the absence of quality leadership, and a population conditioned by news headlines has led to our decline.  America needs a statesman with a bold vision of the future and the will to implement it. Presently, neither exist.

December 1, 2019

Deindustrialization is Killing America

 

Ethiopia To Create 20 Million Jobs

Ethiopia to create twenty million jobs
November 25, 2019
Economy

Ethiopia to create twenty million jobs

In the coming ten years the government of Ethiopia aims to facilitate the creation of twenty million jobs in different sectors.

By 2025 we strive to create 15 million jobs. And by 2030 we do our best to get to a point where we have 20 million jobs, “said Ephrem Tekle (PhD), Jobs Creation Commissioner of Ethiopia.

“The vision is to create 20 million jobs because there is this greater challenge of addressing the need of young people, which will require us to build the right set of skills,” he said.

Explaining on how the government plans to create the jobs, Dr. Ephram indicated that information technology including mobile technology is one of the sectors that is expected to generate many jobs for the growing number of you youth in Ethiopia.

He also stated that agriculture mainly irrigation based will be the major job creation area. Tourism, hospitality, miming and manufacturing sectors are also among the priority job creation areas identified by the Ethiopian government.

Currently two million youth in Ethiopia enter the job market every year meanwhile only half of them are getting jobs, according to the state agency report.

Some ten million youth are looking for job in Ethiopia, according to Dr. Ephrem, who spoke at the panel discussion on the sidelines of Fintech Africa Summit in Addis Ababa on Thursday.

In Ethiopia it is estimated that there are around 1.6 million civil servants (government employees) and some 1.9 million recruited by the private sector.

For a full report on Ethiopia’s job creation plan as part of its new economic agenda read me post: Ethiopia Launches New Economic Reform Agenda

Yes, Chinese engagement is helping Africa’s industrialization

A worker at the Chinese-built Bole Lemi Industrial Park in Addis Ababa, capital of Ethiopia, April 6, 2017. (Xinhua/Michael Tewelde)

November 22, 2019

Chinese engagement helps Africa’s industrialization: ITC executive director

Speaking to Xinhua on Wednesday, November 20, Arancha Gonzalez, Executive Director of the International Trade Center-(ITC), empathized China’s growing engagement and interest in Africa’s existing and emerging potential was driving the continent’s industrialization.

“China has focused a lot of attention to the industrialization of the African continent,” the ITC Executive Director told Xinhua on the sidelines of the Africa Industrialization Day commemoration event, which was marked on Wednesday at the headquarters of the African Union (AU) Commission in the Ethiopian capital Addis Ababa.

“It (China) has focused a lot in manufacturing,” Gonzalez said, as she emphasized other emerging potential areas in the industry sector that are benefiting from and attracting Chinese engagement across Africa.

“First, I think now there is interesting opportunity that is coming in two other sectors, one is agro-processing, so helping Africa transform a lot of the raw materials, agricultural commodities that this continent produces into processed products.

The continental industrialization day was commemorated as part of the AU Commission’s flagship Africa Industrialization Week (AIW-2019), which is underway from November 18 to 22. The AIW-2019 also emphasized the crucial role of industrial parks and Special Economic Zones (SEZs)to drive Africa’s industrialization.
Continue Reading: Chinese engagement helps Africa’s industrialization

Ethiopia Launches New Economic Reform Agenda

November 21, 2019

Ethiopia Launches New Initiatives To Expand Its Economy

Lawrence Freeman

In the last decade, Ethiopia, the second most populated nation in Africa with over 100 million people, has become a leader in economic growth. This is the result of the leadership’s commitment to the continuation of the previous government’s developmental state model, which directed public credit to finance vital infrastructure projects. Now, under new leadership, innovative initiatives are being launched to sustain and expand Ethiopia’s progress.

On September 9, 2019, Prime Minister Abiy Ahmed unveiled his nation’s “Homegrown Economic Reform Agenda” (Homegrown Reform) at the United Nations Conference Center in Addis Ababa. Its primary goal is to expand the nation’s economic capabilities, and create employment opportunities for millions of unemployed youth. Addressing the audience, Prime Minister Abiy said: “The Reform Agenda is our pro-job, pro-growth, and pro-inclusivity pathway to prosperity.” To achieve these objectives, this new initiative proposes to entice private investment in the following sectors; agriculture, manufacturing, mining, tourism,  and Information and Communication Technology- (ICT). Key goals of the agenda’s macroeconomic reforms are, curbing inflation that is averaging over 15% in the last four years, increasing foreign currency, improving access to finance, and debt sustainability.

Home Grown Initiative

The Homegrown Reform Agenda is not meant to be a replacement for Ethiopia’s Growth Transformation Plans II (GTP II), which covers the period from 2014-2019.

Ethiopia, aims over the next three years, to attract $6 billion in new soft loans and $4 billion in debt reduction from multilateral and bilateral institutions to alleviate the country’s financial constraints. According Fitsum Arega, Ethiopia’s ambassador to the United States, “many industries are operating below capacity for lack of foreign currency to pay for imports.”

For Ethiopia to advance to the next stage of development certain imbalances and bottlenecks in the economy have to be corrected, which the Homegrown Agenda intends to accomplish through macro and fiscal reforms.  The number one constraint to growth cited by manufacturing firms, is the shortage of foreign exchange. Access to financing, inefficiency in government, and insufficient infrastructure are also leading constraints to doing business in Ethiopia.  In an effort to address these limitations, the Homegrown Reform intends to shift from relying exclusively on public sector investment, which has led to a rise in Ethiopia’s debt, to promoting private sector financing.

Another area of concern for the government is relying on inefficient state-owned firms. A case in point is the military-run industrial conglomerate METEC, which is being investigated for corruption and suspicion of misappropriating public funds.

To complement the new reforms, it is recommended that the government make additional efforts to; discipline public expenditures, attract remittances through legal channels, and end contraband.

Ethiopia On The Road of Progress

The following indicators of economic growth are reported in    A Homegrown Reform Agenda: Pathway to Prosperity power-point. From 2004 to 2015, Ethiopia succeeded in reducing the percentage of people living in poverty-$1.90 per day or less- from 39% to 24%. From 2004 to 2018 per capita income grew from $200 per day to over $800. During that same time frame, child mortality (under age 5) decreased from 123 to 55 per 1000 live births, and life expectancy increased from 56 years to 66.  And from 2005 to 2016 the percentage of the population with access to electricity rose from 14% to 43%–a 300% increase.

Ethiopia aspires to reach the status of a “lower middle income” nation by 2025. This is an ambitious goal that will require; raising yearly per capita income from its levels of $856 to $2,219, reducing poverty from 27.3 % of the population to 13.8%, and increasing access to electricity to 86% of its citizens. For Ethiopia to achieve its objective in the next five years, it needs to mechanize its agriculture sector to be more productive and less labor intensive, and increase manufactured exports five-fold.

Ethiopia’s Job Offensive

Simultaneously, Ethiopia’s leadership is tackling the critical issue of unemployment, especially for the growing number of college educated youth, who are seeking jobs and upward mobility. Ethiopia’s Jobs Creation Commission-(JCC) announced on October 30, a bold plan to create 14 million jobs by 2025, and a total of 20 million new jobs by 2030. This will provide employment opportunities for millions of new entrants into their labor force. The government intends to create 3 million jobs in the budget year that began this July.

In partnership with the JCC, Mastercard Foundation presented its Young Africa Works Initiative–committing $300 million to assist in this job creation program.  Their focus will be generating new employment opportunities in the ICT and Small Medium Enterprises-(SME) sectors. According to the JCC website: “The Young Africa Works in Ethiopia is an initiative that will enable 10 million young people to access dignified and fulfilling work by 2030…It was designed in partnership with the government, the private sector, academic institutions, and young people and; is currently aligned with the Ethiopian government’s plan to create new jobs to spur economic growth.”

Economics and the Nation State

Ethiopia’s economy has been growing at a faster rate than other sub-Saharan nations. However, its prolific university system is graduating more young people than Ethiopia’s economy can employ. Simply put: despite the progress that Ethiopia has accomplished in reducing poverty and building physical infrastructure; the economy is not growing at a level fast enough to accommodate its large and expanding population.

Frustration over the slower than desired rate of development is being expressed by various elements of society. Economic well-being is a substantial motivation that underlies the anger by ethnic movements at those in power. Ethnic groups believe it is necessary to have “their leaders” in charge, in order to ensure a bigger slice of the “economic pie.” People, who judge that they are being economically neglected or marginalized can become desperate, and thus susceptible to being manipulated and aroused to take action against their own government.

To avoid such instigated conflicts, the only real and lasting solution is to create a “bigger economic pie” that equally satisfies the needs of all people regardless of geographical region or ethnicity. It is the unique responsibility, nay obligation, of the nation state to provide for the “general welfare” of its people and their posterity, as beautifully articulated in the preamble to the US Constitution. The nation state transcends (not negates) regionalism, ethnicity, and religion. Its primary concern is the continued existence of a single sovereign Ethiopian nation with one integrated and unified people.

The government is responsible for ensuring that every Ethiopian has the  necessities of food and shelter, and the opportunity for a meaningful life for oneself and one’s progeny. Deliberating on the best pathway to achieve these goals is the responsibility of every citizen. It is in the self interest of all Ethiopians to collaborate in securing a prosperous future for their nation.

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

 

Africa and China Cooperate on Development and Eliminating Poverty

Minister in the Presidency Jackson Mthembu

November 8, 2019

Cabinet applauds Chinese investment push for attracting R116bn

31st October 2019 BY: AFRICAN NEWS AGENCY

The South African government on Thursday applauded the growing trade and economic relations with the People’s Republic of China, which has led to at least 88 Chinese companies investing massively in the country’s economy.

Addressing media in Cape Town on the outcomes of a Cabinet meeting held on Wednesday, Minister in the Presidency Jackson Mthembu said the growing two-way trade between Beijing and Pretoria has led to Chinese companies investing a capital expenditure of R116-billion from 2003…

Read: South Africa Cabinet Applauds Chinese Investment

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China’s capacity building support wins acclaim in Ethiopia

ADDIS ABABA, Nov. 4 (Xinhua) — Ethiopia on Monday commended China’s support to the East African country’s capacity development endeavors as the two countries set to mark 50 years anniversary of the establishment of diplomatic relations next year.

Tilahun Sarka, Director General of Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR), stressed the vital importance of China’s capacity development support at an event on Monday that marks the start of railway operations training for 47 Ethiopian train conductors.

Noting ongoing knowledge transfer activities that are jointly implemented by ERD, the Chinese government and the consortium of Chinese companies, Sarka also urged the new batch of trainees to effectively study train operations along with Chinese experts so as to realize the Ethiopian government’s ambition in building the East African country’s capacity in railway technology…

ReadChina’s capacity building support wins acclaim in Ethiopia

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President Xi Jinping Addressing China International Import Expo:  The Common Good of Humanity and Eliminating Poverty

Speaking at the opening ceremony of the Second China International Import Expo, President Xi Jinping discussed the continuing process of “reform and opening up,” but focused his remarks on an appeal for the world to come together for the common good.

“Of the problems confronting the world economy, none can be resolved by a single country alone. We must all put the common good of humanity first rather than place one’s own interest above the common interest of all. We must have a more open mindset and take more open steps, and work together to make the pie of the global market even bigger….

“All problems could be settled in the spirit of equality, mutual understanding and accommodation. We need to promote development through opening-up and deepen exchanges and cooperation among us. We need to join hands with each other instead of letting go of each others hands. We need to tear down walls, not to erect walls.”

“China’s development, viewed through the lens of history, is an integral part of the lofty cause of human progress. China will reach out its arms and offer countries in the world more opportunities of market, investment and growth. Together, we can achieve development for all. The Chinese civilization has always valued peace under heaven and harmony among nations. Let us all work in that spirit and contribute to an open global economy and to a community with a shared future for mankind.”

President Xi Jinping delivered his keynote address “in front of a countdown screen for winning the country’s battle against poverty,” Xinhua reported. China has so far lifted some 850 million people out of poverty, and intends to do the same with the remaining 20 million by the end of 2020. Xinhua went on to report that “Xi said China is ready to share its poverty relief experience with other countries and jointly build a community with a shared future for humanity featuring common development and the elimination of poverty.”

Read my recent post: CGTN: China Reaches New Stage of Development With CIIE

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

Ethiopia to Djibouti Railroad Successfully Growing Ethiopia’s Economy

The Chinese-African built railroad from Addis-Ababa to Djibouti has been a success, as I knew it would. Inaugurated in October 2016, it has  allowed Ethiopia to effectively overcome being a landlocked nation. Railroads increase productivity, create growth, build cities, and establish new manufacturing-agricultural centers. Africa will be transformed-industrialized when it is able to generate hundreds of thousands of megawatts of electricity and build tens of thousands of kilometers of rail lines connecting major capitals, cities, and ports across the continent. Ethiopia has been a leader in economic growth by investing in vitally needed infrastructure, such as the Grand Ethiopian Renaissance Dam-GERD, to begin operation in late 2020.

Railroads across Ethiopia will increase its import and export capability.

Roundup: Ethiopia-Djibouti railway adds impetus to Ethiopia’s agricultural economy

ADDIS ABABA, Oct. 18 (Xinhua) — The Chinese-built Ethiopia-Djibouti railway has won acclaim for facilitating landlocked Ethiopia’s import-export necessities.

For the past more than one year, it has transported much-needed agricultural inputs to Ethiopia’s agriculture-dominated economy.

Tilahun Sarka, Director-General of Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR), said in a recent interview with Xinhua that the 752 km-long Africa’s first transnational electrified railway is leveraging the smooth transportation of Ethiopia’s major import and export commodities, mainly fertilizer and wheat.

“The railway is showing major progress in terms of facilitating Ethiopia’s basic import-export activities as it significantly reduced both the travel cost and time from landlocked Ethiopia to ports in its neighboring Djibouti,” Sarka told Xinhua.

The Ethiopia-Djibouti railway commenced its commercial operations for both passenger and freight services in January last year, eventually connecting landlocked Ethiopia to ports in the Red Sea nation of Djibouti.

The EDR director underscored the railway’s achievements over the past one and a half years, with particular emphasis on easing the pressure in transporting the much-needed imported agricultural and food security inputs, mainly fertilizer and wheat, from ports in Djibouti all the way to the Lebu Railway Station on the outskirts of the Ethiopian capital Addis Ababa.

Figures from ERD show that the Ethiopia-Djibouti railway has been able to carry more than 70,000 tons of fertilizer from the Djibouti port to Ethiopia over the past few months, as the East African country embarked with its main harvesting season since May.

“Fertilizer is a very important commodity to Ethiopia’s socio-economic well-being,” Sarka said, adding “It is by far considered as a major imported priority item by the Ethiopian government.”

Ethiopia – Africa’s second populous nation with about 109 million total population, according to the World Bank’s latest report – is an agrarian economy.

The UN Food and Agriculture Organization (FAO), which described Ethiopia as “one of the top-performing economies in Sub-Saharan Africa with an average growth rate of 11 percent over the last seven years,” dubbed the agriculture sector as “the mainstay of the Ethiopian economy, and exports almost entirely relies on agricultural commodities.”

Sarka, who dubbed fertilizer as a “political cargo,” also said that “a failure to import the much-needed fertilizer would adversely affect Ethiopia’s overall security, as far as igniting public uproar against the Ethiopian government.

Sarka also emphasized the joint Ethiopian government and EDR’s future plan that envisaged “to significantly boost the railway’s share in the transportation of fertilizer to the country.”

“Both the Ethiopian government and EDR give particular emphasis to the smooth transportation of fertilizers from the Djibouti port to Ethiopia, as well as the export of other export-bound agricultural commodities from Addis Ababa and other parts of Ethiopia to the port,” Sarka said.

Ethiopia imported a total of about 1.3 million tons of fertilizer during the just-concluded Ethiopian 2018-2019 fiscal year, according to figures from the Ethiopian government.

Built by two Chinese companies, the first 320-km of the project from Sebeta to Mieso was carried out by the China Railway Group Limited (CREC), while the remaining 423-km from Mieso to Djibouti port section was built by the China Civil Engineering Construction Corporation (CCECC).

The Ethiopia-Djibouti railway is presently managed by a consortium of Chinese companies – CREC and CCECC – for a period of six years undertaking railway operation and maintenance management activities.

According to Sarka, the six-year contract was given to the two Chinese firms mainly due to the shortage of electrified railway operation and management experience in the two involved countries.

Ethiopia-Djibouti Railway

Alexander Hamilton’s Credit System Is Necessary for Africa’s Development

October 4, 2019

Below is a half hour video presentation on the importance of Alexander Hamilton’s credit policy for the development of Africa. The forum was organized by Watch Democracy Grow, an organization promoting democracy and development in Africa, and was filmed Afrique Today.

As I discuss in the video and article below, African nations need long-term and low interest lines of credit to finance trillions of dollars necessary for infrastructure projects across the continent.  Government backed authorities or the government itself can issued public credit in the amounts required. To provide credit for the newly united colonies, Hamilton designed the National Bank of the United States in 1791 at the request of President George Washington. It was a corner stone of the successful American System of Political Economy. Similar institutions are appropriate for African nations to finance vitally needed infrastructure today.  Applying the Hamiltonian model, the Belt and Road Initiative, promoted by China, is helping Africa build and finance infrastructure that is essential for African nations to industrialize and expand their agriculture and manufacturing sectors.

 

Read my article from March of this year: Nations Must Study Alexander Hamilton’s Principles of Political Economy

 

 

United Nations Conference: The Lake Chad Basin Should not be ‘Managed’; it Should be ‘Transformed.’

August 19, 2019

United Nations Headquarters, August 5-6, 2019

On August 5-6, I had the opportunity to participate in the “Third International Conference on the Lake Chad Basin Region: SDG Implementation-UN System and Non-State Actors Exploring New ways of Cooperation.” The two-day conference at the United Nations Headquarters was hosted by the Permanent Mission of Nigeria to the United Nations, under the guidance of Dr. Ibrahim Umar. The assemblage was first addressed by ambassadors from three of the nations of the Lake Chad Basin; Permanent Representatives from the UN Missions of Chad, Niger and Nigeria.

Lawrence Freeman with Dr. Ibrahim Umar, Nigerian Mission to the United Nations

The convening of this UN session is in response to the worsening living conditions for approximately 30 million Africans living in the Lake Chad Basin, whose livelihood is centered around the shrinking Lake Chad. Today the estimated area of Lake Chad varies from 1200-1300 square kilometers to upwards of 2,000; a 90% contraction from its 1963 level of 25,000 square kilometers.  During the afternoon panel of the first day, the conditions of Lake Chad were addressed by Charles Ichoku, Professor of Earth and Environmental Sciences at Howard University, and this author, who is Vice Chairman of the Scientific Advisory Committee of the Lake Chad Basin Commission.

Transforming is Superior to Managing 

Dominating the conference were speakers representing NGOs and international organizations, who accurately depicted the extent of the horrific humanitarian, refugee, and food crises prevailing in the region in detail. Regrettably, there were those who accepted the diminutive size of Lake Chad as unalterable. Some of the participants offered short term solutions and others believed that the recharging of the lake is not an easy or viable option. However, they miss the point; that to comprehensively address the issue of the Lake Chad Basin will require nothing less than the full recharging of Lake Chad. It is only in this way that the humanitarian issues, poverty and underdevelopment can be tackled in the long run. In my presentation I challenged some of the pessimistic thinking in the conference by stating unequivocally: “None of the solutions that have been discussed will work, unless the lake is recharged.” It should be noted that United Nations Secretary-General, Antonio Guterres, has pledged to collaborate with President Buhari of Nigeria, to raise the $50 billion necessary for the recharging of the lake.

Lawrence Freeman addressing the United Nations Conference on the Lake Chad Basin on the first day

My slide presentation demonstrated how the lake can be recharged to its previous level through Transaqua, an inter-basin water transfer project. Transaqua, designed in 1980 by Dr. Vichi of the Italian engineering firm, Bonifica, proposed to build a 2,400-kilometer canal created from 5-8% of the water in the Congo River Basin. The navigable gravity-driven canal would connect to the Chari River, in the Central Africa Republic, which releases its flow into Lake Chad. This bold innovative project is a “win-win” for the twelve nations of the Lake Chad and Congo River Basins, and for all of Africa. Responding to the necessity of recharging the shrinking Lake Chad, the project provides a unique opportunity to create a super economic “development zone” amongst the nations of the two basins. Trade, and commerce would increase by orders of magnitudes, hydroelectric power would be produced, millions of additional hectares would be irrigated, new roads created, new fisheries and manufacturing centers would be built. This author also presented to the audience the conclusions from the three-day International Conference to Save Lake Chad, held in Abuja Nigeria-February 26-28, 2018, at which the Heads of State from the nations of the Lake Chad Basin, endorsed Transaqua as the preferred method to expand the lake.

Both before and after my presentation numerous presenters spoke out against “big projects” and “diverting water” as if the Africans suffering in the region want the lake to remain at 10% of its previous level. International intervention and technology to alleviate the conditions in the basin were also eschewed in favor of local projects and listening to the so called “voice of the people.” Manage! Manage the existing deplorable conditions; don’t even dare think of changing-improving was echoed repeatedly.

On the second day, this author was compelled to speak out against the condescending attitude that assumes Africans do not want to enjoy the same standard of living as all the speakers from the US and Europe. I asked, if they thought that those people struggling for daily survival within the Lake Chad Basin wouldn’t desire clean running water, and having access to 1,500 watts of electricity 24 hours a day all year?

 

A slide presented by Mr. Freeman at the UN conference displaying the Transaqua inter-basin water transfer project

Underlying Cultural Beliefs About Mankind

Approximately five to six thousand years ago Lake Chad was a mega lake comprising 1,000,000 square kilometers. There are reports that several hundred years ago, Lake Chad almost disappeared. The lake sits on top of three aquifers and are adjacent to the gigantic Nubian Sandstone Aquifer.  Clearly the growth and shrinkage of the lake over millennia predates so called anthropomorphic caused climate change. Lake Chad is fed by river systems from Nigeria and Cameroon, the most significant contributor being the Chari River from the Central African Republic. With the southern movement of the Tropical Conversion Zone there is less rainfall thus reducing the flow of water into the lake. The closest source of water to refill and maintain Lake Chad is the super moist Congo River Basin, hundreds of kilometers south. A feasibility study should confirm the Transaqua hypothesis for the potential of a continuous flow of water into Lake Chad, resulting in transforming the entire region.

The failure to test and analyze the Transaqua proposal for almost four decades, even though many people were concerned about the worsening conditions resulting from the shrinking lake, leads us to examine a deeper cultural problem.

Over the last half century, Western societies have become victims of cultural pessimism. Our cultural paradigm has shifted away from one of optimism and confidence in human’s ability to discover new scientific principles that lead to technological revolutions for the betterment of humanity. In the years following the historic 1969 landing of humans on the Moon, inspired by the leadership of President John Kennedy, our culture has been dramatically altered for the worse. The previously discredited Malthusian dogma reasserted itself, with false assertions that if population growth was not stopped the planet would run out of resources. This was accompanied with hysterical calls for population reduction. Over time, as our culture became more decadent, the very progress of our society was assailed with attacks on science, technology, and industrialization.  In this new perverted ideology humankind, (made in the image of the Creator) became the devil-the source of evil itself in the world.

Ambassador Tijjani Muhammad Bande speaking at a reception hosted by the UN Nigerian Mission for the Lake Chad Basin conference

Contrary to declarations  that humans are destroying the environment, there is no such adversarial relationship. The physical universe is organized on the principle of continuous development and is predisposed to respond positively to the intervention of human creativity. Humankind is not just a caretaker or a steward. Humanity was created to interact with the universe for unending growth. Reflect on the biblical injunction in Genesis 1:28: “Be fruitful and multiply and fill the earth and subdue it and have dominion over the fish of the sea and over the birds of the heavens and over every living thing that moves on the earth.”

Yes, we can and must transform the Lake Chad Basin. We can end suffering, hunger, and poverty in that region, and across the African continent. That is what humankind was created to accomplish. Let us not reject our fundamental human essence: to willfully transform our planet (the universe) for the perpetuation of our uniquely creative species.

 

Distributed at the UN conference reported on above: UN Statement on Transaqua for Lake Chad

Distributed at the Abuja, Nigeria conference 2/26-28/2018:  Now Is the Time to Think Big and In the Future