China & Russia-Africa Leads to Economic Growth; Not Debt Trap

Below you will read about the success of the second segment of Kenya’s Standard Gauge Railroad, and President President Cyril Ramaphosa’s firm refutation of allegations that a number of countries in Africa are being led into a debt trap by China and Russia

“Proponents of the New Paradigm in Africa have a new milestone to celebrate, with the opening of a new segment of the Mombasa-Kisumu Standard Gauge Rail (SGR) line in Kenya. On October 16, Kenyan President Uhuru Kenyatta led a celebration to open Segment 2A, a 120 kilometer (75 mile) extension from the capital (and current terminus) of Nairobi, to Naivasha, a large town northwest of the capital. Opening of this—admittedly rather short—segment nonetheless brings the SGR project one step closer to its planned destination: Kampala, the capital city of neighboring, landlocked Uganda.”

Stunning Progress

Kenya’s SGR project, the most advanced in Sub-Saharan Africa, began in 2014, when the country began construction of a modern, standard gauge (1.435 meter) rail line from the port of Mombasa on the Indian Ocean, northwest to the nation’s capital of Nairobi, a distance of 450 km (275 mi). Opened in 2017, on Madaraka Day—Kenyan Independence Day, when the people took political control of their destiny from the British Empire on June 1, 1963— the rail line has been a huge success, cutting transport and delivery time significantly for both goods and people. Exceeding expectations, the railway transported two million passengers within its first 17 months; and in 2018, its first full year of operation, carried over 5 million tons of freight.

The Mombasa-Nairobi line was initiated in 2009 discussion between the China Road and Bridge Corporation and the Kenyan government, as reported by P.D. Lawson in the April 27, 2018 EIR. China’s Exim Bank extended credit for 90% of the project. By May 2016, initial track laying was completed in just over 1 year. Passenger service was opened May 31, 2017, eighteen months ahead of schedule. Freight services commenced in January 2018. Plans are now underway to electrify the segment from Mombasa to Nairobi, which will greatly lower operating costs.

Benefits of the new, faster technology now extend far beyond mere transport, where the railway has taken hundreds of trucks (and buses) off the notoriously congested highways, making them safer and more useable for the population.

With the increased capacity and speed of freight transport, Kenya’s exports to the East African Community (including neighboring states Uganda, Tanzania and South Sudan) have hit a three-year high in the first eight months of 2019. Not only have government earnings from domestically produced goods increased 6% compared to 2018, but Kenya’s domestic consumption of electricity—certainly not a nation known for its over consumption of this resource—has increased 3.2% in the first 8 months of 2019.

Uhuru Kenyatta, President of the Republic of Kenya.
President Kenyatta has launched additional infrastructure projects, building on the Kenya Vision 2030 plan. In addition to the opening of SGR Section 2A on October 16, he has announced plans for construction of an inland container depot (ICD) at Naivasha (to store or transfer goods from rail to truck, or from SGR to the old meter gauge rail, MGR); a new 23 km expressway in Nairobi; and a water project in rural Kimuku (stemming from a natural spring accidentally discovered during construction of the rail line!). He wants to create a Special Economic Zone—to include the port of Mombasa—to further speed up freight delivery.

EIR magazine, Nov. 1, 2019: “Kenyan Standard Gauge Successful in Looking Beyond the Here and Now

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NEWS October 28, 2019

Russia-Africa Summit: African countries not being led into debt trap —South Africa’s Ramaphosa

President Cyril Ramaphosa on Monday refuted allegations that a number of countries in Africa are being led into a debt trap as they take up loans to fund a number of projects.

Ramaphosa said this during his weekly address from the Desk of the President in Cape Town, after returning from the Russia-Africa Summit held in Sochi last week.

“One need only look at initiatives such as the Forum on China-Africa Cooperation, which was last held in Beijing in 2018, to see that the focus is now on partnership for mutual benefit, on development, trade and investment cooperation and integration,” Ramaphosa said.

He lambasted remarks which label initiatives like the recent Russia-Africa Summit as an attempt by world powers to expand their geopolitical influence. African countries had taken part in the  summit to discuss ways of how to increase trade and cooperation between Russia and Africa. He said the summit was a sign of the growing economic importance of Africa on the world stage.

“What we are witnessing is a dramatic re-balancing of the relationship between the world’s advanced economies and the African continent,” he said.

African countries have consistently affirmed that Africa no longer wants to be passive recipients of foreign aid, said Ramaphosa. The president said African countries are developing and their economies are increasingly in need of foreign direct investment.

“We are ever mindful of our colonial history, where the economies of Europe were able to industrialize and develop by extracting resources from Africa, all the while leaving the colonies underdeveloped,” said Ramaphosa.

Even now, African countries are still trying to stop the extraction of its resources, this time in the form of illicit financial flows through commercial transactions, tax evasion, transfer pricing and illegal activities that cost the continent more than 50 billion dollars a year, according to Ramaphosa. The age where “development” was imposed from outside without taking into account the material conditions and respective requirements of our countries is now past, the president said.

“China, Russia, Organisation for Economic Cooperation and Development countries and other large economies are eager to forge greater economic ties with African countries. “This is because they want to harness the current climate of reform, the deepening of good governance, macro-economic stability and the opening up of economies across the continent for mutual benefit,” the president said.

 

Nuclear Energy Will Create Jobs and Raise Skill Levels in Africa

Left-Claver Gatet, Rwanda Minister of Infrastructure. Right-Alexy Likacheve, Director General of Rosatrom. Speaking at the Russia-Africa Summit in Sochi.

October 27, 2019

The article below from {World Nuclear News}, reports on important agreements with Russia to build nuclear power plants in Africa. Beyond providing energy, nuclear plants will provide jobs and new shill levels for the tens of million of young Africans entering the work force.  Along with China, Russia is assisting African nations in building vitally needed infrastructure, which they need to become industrialized, with productive manufacturing and agriculture sectors. This is very good news for the African continent.

Read: Nuclear Energy Can Bridge the Skills Gap in Africa

Excerpts below:

Speaking at the round table session titled The Contribution of Nuclear Technologies in the Development of Africa,  Alexey Likhachov  said:.

“We are talking about solutions related to raising the level of education, energy security, applying nuclear solutions to medicine, agriculture, as well as other scientific research and development. Every dollar invested in our projects in any country, brings two dollars in localisation to that country. This significantly increases the country’s GDP.”

Rosatom said a job is created for every 0.5 MWe of electricity produced at a nuclear power plant, meaning that a 1000 MWe plant provides employment for more than 2000 people. Human capital development is both “a condition and a consequence” of nuclear power plant construction projects, it added.

Through joint educational programmes, the Russian state nuclear corporation is attracting applicants from African countries to its partner universities in Russia, it said, and Rosatom has already awarded up to 50 scholarships to students from Rwanda and Zambia. They are among hundreds of other African students from countries such as Algeria, Egypt, Ethiopia, Kenya, Nigeria and South Africa, it added.

Development

Claver Gatete, Rwanda’s minister of infrastructure, said: “In order to grow our industries from 17% GDP to 30% GDP, and to achieve our ambition of becoming a high-income country by 2050, we want to take advantage of nuclear to enhance our socio-economic development.” Rwanda sees a clear link, he said, between nuclear technologies and the country’s vision of development.

Citing data from the World Economic Forum, Rosatom noted that 15 to 20 million young people are to enter Africa’s workforce in the next two decades, meaning that 15% of the world’s working-age population will be in Africa, with 60% under-25.”

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Glazyev Warns Africans About IMF Looting Policies

The Russian economist Sergei Glazyev, who was for years an economic adviser to President Putin and is today minister in charge of integration with the Eurasian Economic Union, spoke to the gathered leaders at the Russia-Africa forum
in Sochi, and warned them about the policies of the International Monetary Fund (IMF). According to Moscow Times, Glazyev reported that IMF policies had led to about $1 trillion in capital flight from Russia, and another $1 trillion or so from the other 14 post-Soviet countries over the last 30 years.

Glazyev said the IMF has adopted a similar approach in Africa as the former Soviet Union. “Of course, Africa has been exploited for much longer. We have been living in this financial and economic environment for only 30 years.” Moscow Times added that “Glazyev also advised African countries to keep full control over their natural resources and infrastructure, in line with his advocacy in Moscow for greater economic self-sufficiency.”

Rwanda Moves Forward With Nuclear Energy: Time for Africa To Go Nuclear!

October 23, 2019

A nuclear plant. FILE PHOTO | AFP
A nuclear plant. Russia’s nuclear agency Rosatom has signed co-operation agreements to set up the nuclear plants in Rwanda, Kenya, Uganda and Tanzania. FILE PHOTO | AFP

Nuclear power is essential to meet the needs of Africa’s huge energy deficit. However, it will do more for Africa. Nuclear energy not only has a higher energy flux density than hydro, coal, gas, inefficient solar, and silly wind mills, but it embodies a higher level of technology. This will enable African nations to raise the skill level of their workforce, as they learn to build an operate a more technologically advanced energy platform. More engineering schools and training centers will be required as African nations enter the age of civilian nuclear power. Thus, the nuclear energy industry will serve as a science driver for society, while creating higher levels of economic growth. 

Read: Rwanda Approves Nuclear Power Deal With Russia

Excerpts below:

The Rwandan Cabinet has approved an agreement with Russia to advance the use of nuclear energy for “peaceful purposes,” a move that is expected to bolster relations between the two countries and advance the latter’s interests in the region.

This comes ahead of the first Russia-African Forum next week in the city of Sochi, which President Paul Kagame has confirmed attendance, accompanied by a delegation of senior government officials.

The nuclear power deal was first signed in Moscow last December and will see Russian scientists set up a Centre for Nuclear Science and Technology in Kigali.

The deal was boosted in May when a Russian government nuclear parastatal, Rosatom Global, reached an agreement to set up the nuclear plant by 2024—that the government says will help in the advancement of technology in agriculture, energy production and environment protection.

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Nuclear Power at Russia-Africa Forum

The Russia-Africa Economic Forum in Sochi will host a special panel discussion, “Contribution of Nuclear Technologies in the Development of Africa,” on October 23, with the participation of Alexey Likhachev, Director General of Rosatom-the State Nuclear Energy Corporation.

“Rosatom has been active in Africa for a long time. The creation and development of the nuclear industry in Africa will not only solve the problem of the energy crisis, but also change the standard of living, providing full access to public health services, increasing the level of education and food security. We see a great interest on the part of African countries in creating new ties for further technological development. Moreover, we are ready to discuss all possible options for cooperation on the continent. I am sure that Russian-African nuclear projects will have a great future,” said Likhachev on Oct. 15, in a preview of the Sochi event.

The forum in Sochi was also prepared by a conference in Nairobi last week that featured officials of Rosatom and over 150 energy and nuclear professionals from across the globe. Representatives from key African countries that are planning or already implementing their respective programs for developing peaceful nuclear technologies included Côte d’Ivoire, Egypt, Ethiopia, Ghana, Kenya, Niger, Nigeria, Rwanda, South Africa, Sudan, Tanzania, Tunisia, Uganda, and Zambia.

Speaking in Nairobi, Dmitry Shornikov, CEO of Rosatom Central and Southern Africa, emphasized the advantages of joining the atomic club through creating nuclear industries in newcomer countries, and gave an overview of projects with the maximum positive effect on industrial development, enhancing the quality of life and developing ‘knowledge economy’.

Russia’s Growing Involvement in African Nuclear Development

One of the questions of the Oct. 23-24 Russia-Africa Summit is the need for Africa to develop civilian nuclear power. Russia is at the front end of the strategy to equip Africa with nuclear power, reports Sébastien Périmony in his blog “Africa with the Eyes of the Future” in France. No fewer than eight African countries have already signed agreements with Russia’s nuclear power company, Rosatom: Sudan, Kenya, Uganda, Nigeria, Rwanda, Zambia, Zimbabwe, and Ghana.

“The stark reality is that Africa is in dire need of energy: 48 countries in Sub-Saharan Africa produce as much energy as the single country of Spain produces in Europe. That means that every other African has no access to electricity. According to the Global Energy Architecture Performance Index Report 2017, only five African countries have 100% electrification, all of them in  North Africa: Algeria, Egypt, Libya, Tunisia, and Morocco. South Africa follows immediately after, with a rate of 85.40%. Then come Ghana, 64.06%; Senegal, 56.50%; Ivory Coast, 55.80; and Nigeria, 55.60%. Some francophone countries: World Bank Reports gives access to electricity as 16% for Niger, 9% for Chad, 14% for the Central African Republic, and 20% for Burkina Fasso.”

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Read: Time to Invest in Nuclear Energy in Africa

Excerpts below:

“The future of energy and base-load generation is in nuclear, and probably coal and liquefied natural gas. Kenya needs to push ahead with the nuclear agenda to meet the country’s energy needs,” said the managing director of Kenya Nuclear Electricity Board Collins Juma.

Mr Juma said that Kenya requires at least 18,000MW to become a middle-income and an industrialized nation. With the total installed capacity at 2,370MW, it will need to diversify its energy sources to reach that target.

Countries in East Africa are among those on the continent seeking to build nuclear power plants driven by the need to end power challenges, and accelerate industrial and economic growth.

Russia, China and South Korea have emerged as the key vendors of nuclear energy, offering to help in financing the deals.

The International Atomic Energy Agency (IAEA) has been at the forefront of the campaign to sell nuclear to Africa. Its deputy director-general Mikhail Chudakov told The EastAfrican that nuclear energy holds the key to industrial development.

“Africa needs to understand that solar and wind are good for home lighting [but not manufacturing],” he said.

Massive investments

But nuclear energy needs massive resources to build and operate, so state-owned companies like Russia’s Rosatom, China General Nuclear, China National Nuclear Corporation and Korea Electric Power Corporation are pushing various financing and construction models for the continent’s customers.

The companies have signed agreements and memoranda with African countries, ranging from research and development and human resources development to full reactor projects. Russia and China, in particular, have crafted packages providing state-backed loans, in the process altering the dynamics of nuclear markets.

In Egypt, for instance, Russia is providing 85 per cent of the funding for the 4,800MW plant currently under construction at a cost of $21 billion.

 

Africa Update: African Union Discusses DRC’s Grand Inga. African Bankers Reject ‘Noise’ On Chinese Debt

August 3, 2019

African Union Meeting Revives Grand Inga Dam Project in Congo

The six-phase Grand Inga Dam Project in the Democratic Republic of the Congo (D.R.C.) has shown signs of coming back to life when the project was discussed at the African Union Extraordinary Summit meeting held Niamey, Niger July 4-7,

{Construction Review Online} reported July 31. On Congo River, two other dams, Inga-I and Inga-II had long been completed, generating about 1800 MW peak power. Inga-III, whose construction had fallen through for a number of reasons, is projected to create nearly 5,000 MW of power. Grand Inga is a considerably ambitious project. With 52 turbines, it would dam the entire river and flood 22,000 hectares of the Bundi valley, which is home to as many as 30,000 people. Five additional hydropower stations would considerably increase the generating potential of the falls. Once these additional hydropower stations were brought online at the dam site, the  whole project would dwarf any other hydropower facility worldwide. The Inga project is estimated to produce 40,000 MW. This is enough to provide power to nearly half of the continent, reported {Construction Review Online}.

D.R. Congo, in Central Africa, where the total electrical power installation is close to 15,000 MW.  Central Africa constitutes of ten countries: Angola, Burundi, Cameroon, Central African Republic, Chad, Republic of the Congo (Congo Brazzaville), D.R. Congo, Equatorial Guinea, Gabon, and Rwanda. Most of Central Africa’s power is generated from hydro.

African Bankers Reject “Noise” on Chinese Debt–We Have To Borrow for Development!

John Rawangombwa, chairman of the African Association of Central Banks, whose annual meeting in Kigali, Rwanda ended Aug. 1, told Xinhua that “the noise around the Chinese debt to African countries”–this was the subject of a presentation at the gathering–was “unfounded.” Chinese debt, as a percentage of total African debt, is not a problem, he said.

Rawangombwa pointed out that borrowing is good, and borrowing outside the country is acceptable, although internal borrowing would be preferable to reduce foreign exchange risk.

The reality, however, he stated, is that Africa faces a financing gap; so, nations must improve their debt management capacity, and borrow for the right purposes, an build up their capital markets.

He emphasized that countries must ensure that they invest in the right projects, that generate foreign exchange in order to be able to repay their debt. He also said that the fact that Africa’s debt has increased is not unique to Africa. Rather, it is a global phenomenon, that requires global management, Xinhua reported

Ebola Crisis: How Many Africans Must Die Before the World Acts?

FILE – In this Sunday, Sept 9, 2018 file photo, a health worker sprays disinfectant on his colleague after working at an Ebola treatment center in Beni, eastern Congo. Top Red Cross official Emanuele Capobianco said Friday April 12, 2019, that he’s “more concerned than I have ever been” about the possible regional spread of the Ebola virus in Congo after a recent spike in cases. (AP Photo/Al-hadji Kudra Maliro, File)

Today is the one-year anniversary second eruption of Ebola in sub-Saharan Africa in five years. On August 1, 2018, an outbreak of Ebola was declared in the North Kivu province of the Democratic Republic of the Congo (DRC), when four cases of Ebola in town of Mangina were verified. After 426 cases of Ebola were confirmed, the World Health Organization-(WHO) on November 29, declared this to be the second largest outbreak of Ebola in history. The largest outbreak was from 2014-2016 in West Africa that caused 11,310 deaths.  By May 3, of this year over 1,000 human beings had perished from Ebola. As of June 4, the number of cases exceeded 2,000. Yet, it wasn’t until July 17, 2019, after more than 1600 people had died from this deadly disease that the WHO declared a “public health emergency of international concern”. This declaration by the WHO is far short of what is required to combat this killer disease. To date, there are 2,593 infected with Ebola and more than 1,770 have died, according to the The New Humanitarian on line journal.

The fear of Ebola spreading to the city of Goma, a transportation center with a population of 2 million, bordering Rwanda, was realized on July 14, with Goma’s first confirmed case. July 30, health officials confirmed a second case, unrelated to the first. However, on August 1, two additional cases were discovered, of relatives to the second deceased, thus establishing the transmission of Ebola in Goma itself, as reported by AP. Thursday, BBC News reported that the border between Goma and its neighbor Rwandan city, Gisenyi, was closed in response.  On June 11, Uganda reported the first of two deaths cause by Ebola.

The WHO should declare a full international health emergency, not “a matter of concern.” Although the WHO does not have the resources to fully combat this latest outbreak of Ebola, such a declaration would sound the alarm. This could mobilize international institutions like the World Bank, United Nations et al, along with forcing western nations to act.  However, for such an emergency declaration to be issued more Africans must die to meet the criteria of at least 20 deaths in several countries. For now, the world is watching, as Ebola murders more and more Africans. The government of the DRC should also be making appeals to the rest of the world, including Russia and China, who have indicated their willingness to help, if approached officially by the DRC.  A full scale emergency mobilization could potentially provide the impetus to expand the healthcare capacity of sub-Saharan Africa, which is urgently needed.

There is no time to waste. The population of the DRC exceeds 70 million, and it has one of the weakest infrastructure systems in the world. Is Africa, and the rest of the world willing to gamble with thousands, if not tens of thousands or more, lives?

The article below, by Debra Freeman, a public health specialist, provides a good overview of the Ebola crisis. She concludes:

“…stopping this latest outbreak and others like it requires more than vaccines and short-term measures…eradicating the threat of this most deadly of viruses, and others that may emerge in Africa, requires nothing less than an international crash-program mobilization to provide adequate economic conditions (sanitation, water, power, housing) along with the development and implementation of a first-class public health system.”

Read entire articleEbola: World Health Emergency

 

 

China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?

June 20, 2019

Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations. 

{Independent}: Belt and Road Contributing to Prosperity in Africa

A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo.

Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open
countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.

German Mittelstand Supports New Silk Road

China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17.

“The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms.

Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated.

“The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.”

Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded.

“The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a forum later this year in Germany on the BRI for partners to establish project-related contacts.

 

China’s Belt and Road Aids Africa’s Growth in New Globalization

(China’s CGTN published my article today, on the eve of the historic 2nd Belt and Road Forum)
Opinion-April 24, 2019

Belt and Road Initiative: Another path to globalization

by Lawrence Freeman

Editor’s note: Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policy of Africa for 30 years. The article reflects the author’s opinion, and not necessarily the views of CGTN.

On the eve of the second Belt and Road Forum (BRF), it is irrefutable that the world has been transformed in the five years since Chinese President Xi Jinping announced the Belt and Road Initiative (BRI).China’s archetype for global development is based on the more elevated concept of each country contributing to the “common destiny of all nations” and mankind’s “shared future.”

By focusing on “global connectivity” through massive investments in infrastructure, linking China to the rest of the world through its land and maritime new Silk Roads, China has presented the world with a new paradigm for development – in effect, redefining globalization.

According to the World Economic Forum (September 2018), “the BRI will encompass 70 percent of the world’s population (4.4 billion) and 63 percent of the world’s GDP (21 trillion U.S. dollars),” primarily from construction of rail lines, highways, ports, airports, hydro-energy plants and pipelines.

The first BRF held in May 2017 included 29 foreign heads of state, 11 heads of international organizations and over two dozen attendees on the ministerial level. Because of the expansion of the BRI over the last two years, already 40 world leaders have confirmed their attendance for this year’s conference.

Awakening the Sleeping Giant, Africa

Nowhere, outside of China itself, are the positive effects of China’s BRI more evident than on the African continent. At the 2017 BRF, the only African heads of States who attended were Ethiopia and Kenya, and ministers from Egypt and Tunisia. With Nigeria, the most populated nation in Africa, officially joining the BRI in 2019, and increased collaboration with China throughout all geographical sections of Africa, participation at this year’s BRF from Africa will undoubtedly be higher.

Engineers from the Addis Ababa Information & Communication Technology Development Agency in Ethiopia, Africa, train on Huawei’s networking equipment at the training center at Huawei headquarters in Shenzhen, China, September 15, 2011. /VCG Photo

Prior to the announcement of the BRI, China had already forged a close working relationship with Africa by convening China-Africa Summits (Forum on China-Africa Cooperation) every three years beginning in 2000, rotating the venues between China and Africa.  At the seventh summit held last year in Beijing, all but one of the 54 African nations attended.

Unfortunately, the West lost its vision of development for Africa after the death of President John F. Kennedy, instead adopting a no-infrastructure policy. What Africa has needed most since the 1960s “Winds of Change” liberation from colonialism is infrastructure, water, energy, rail and roads. China has a different view on this.

Ambassador David Shinn, a respected scholar on Africa, wrote last month: “China has been indisputably the single most important builder of infrastructure in Africa since the beginning of the 21st century.”

Take, for example, Djibouti, which is a BRI hub. China is building the Doraleh Multi-Purpose Port and international free trade zone in this northeast African nation, strategically located right off the Indian Ocean and on the Gulf of Eden. It is estimated that one-third of global shipping passes by this port.

In 2016, the first electrically driven train in sub-Saharan Africa, connecting Addis Ababa, the capital of landlocked Ethiopia, to the port city of Djibouti was inaugurated. This rail line built by Chinese companies utilizing and training African laborers and engineers is key to the develop-ment of the Horn of Africa, providing Ethiopia a port to export the products of its nascent manufacturing sector.

Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua that “projects involving cooperation with China are helping Djibouti promote trade in Africa as well as distribution across the East African region… which couldn’t be achieved without developing proper infrastructure, such as seaports and railway connections.”

Chinese workers help to build a new train station in Beliatta in a southern province near Hambantota, which is Chinese managed and designed in Beliatta, Sri Lanka, November 18, 2018. /VCG Photo‍

Hadi called the “debt-trap” propaganda against the BRI, “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”

African nations are attempting to industrialize their economies with growth in their manufacturing sectors. China is assisting by creating special economic zones, industrial parks, and industrial zones in Nigeria, Djibouti, Ethiopia, Egypt, Morocco, and Rwanda. Industry and infrastructure generate jobs, raise skill levels and transfer technology.

Will the West Join the BRI?

Africa’s requirement for infrastructure is enormous, allowing Western nations the opportunity to join with China to industrialize this vast undeveloped continent, which is projected to have 2.5 billion people by 2050. President Xi, at the first BRF, said: “We should foster a new type of international relations featuring win-win cooperation” and “development holds the master key to solving all problems.” Regrettably, western nations have been hostile to joining the BRI. However, last month’s ground-breaking signing of a memorandum of understanding (MOU) by Italy – the first G-7 nation to join China’s BRI – portends a potential change towards a new constructive dynamic.

Read: China’s New Approach to Globalization

China’s BRI Expanding Trade in Africa With Infrastructure Where the West Has Failed: Djibouti

March 28, 2019

Djibouti Port Director: The BRI Has Vastly Expanded All African Trade and Development

Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua on the sidelines of the Africa CEO Forum that “projects involving cooperation with China (such as the Ethiopia-Djibouti railway and the Doraleh Multi-Purpose Port and international free trade zone) are helping Djibouti promote trade in Africa as well as distribution across the East African region.” Hadi said that more than $40 billion in exports and imports has been recorded through Djibouti ports, “which couldn’t be achieved without developing proper infrastructure, such as sea ports and railway connections.” He went on: “I am expecting more movements of goods, infrastructure develop-ment from the second Belt and Road Forum for International Cooperation slated for April in Beijing, as well as stronger interconnection between Africa and the rest of the world,” speaking with Xinhua News.

Hadi also said that the accusations against China made by Western countries about letting some African countries fall into a debt trap due to cooperation on the BRI, are “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”

China Prevails Where Europe Has Failed Miserably

“The New Silk Road is the biggest economic venture in mankind’s history,” former chief economist of Bremen Landesbank Folker Hellmeyer told Sputnik, saying it would be quite absurd if Europe did not take a part in it.  “The West could have built infrastructure in these countries in the past 50 years. We have not done this. China is now filling this gap–and we are criticizing that. That is also power play to a certain extent. That is also why it meets resistance. But we are developing human capital and a sustainable growth potential which is enormous. We could have done it, but we haven’t done it. And that is why we should not accuse others.”

Hellmeyer also said that “what I hear here in Europe in terms of criticism, I rather see as a kind of front line politics serving the interests of the U.S.A.”

Newly Elected President of D.R. Congo Addresses Issue of Lake Chad Water Transfer

Newly elected President of the Democratic Republic of Congo (DRC) Félix Tshisekedi addressed the issue of water transfer to save Lake Chad at the just- concluded Africa CEO Forum in Kigali, Rwanda. Speaking at the concluding panel together with host, Rwanda President Paul Kagame, Tshisekedi said that someone is proposing to pump water from the Congo River to save Lake Chad, but there are better options than that.

“On the water issue, which is a battle expecting us in the future, we can think about solutions at the mouth [of the Congo River], before the meeting with the ocean waters. There is a way to catch that water from the river and send it through pipes to countries that need it, rather than doing what has been proposed at some point in Chad — i.e. diverting the course of the Ubangi River. This can have consequences, including on energy, because of the peat bog system that helps the CO2-absorbing natural lungs. We believe that there are other solutions and the D.R.C. is ready to offer them to its partners to build this integration which is so important for us.”
https://www.youtube.com/watch?v=1pKAsR0qhtQ

President Tshisekedi is right when he rejects foolish ideas such as pumping water from the Congo River or diverting the course of the Ubangi. However, he should know that “other solutions,” namely the Transaqua project, have already been approved by the countries of the Lake Chad Basin Commission (LCBC) at the February 2018 International Conference on Lake Chad in Abuja, Nigeria, which was attended by a representative of the D.R.C.. He also should drop the narrative of the peat bog system, created by the British to block the development of the Congo basin.

LCBC observers see the glass as half-full and emphasize the good news of the D.R.C. government addressing publicly the issue and expressing its readiness to help. Notably, this was the first time that a President of D.R. Congo and of Rwanda have appeared together in public. Rwanda President Kagame stressed this in his speech, explaining that Africa will move forward only if personal animosities are put aside. Kagame has recently strongly supported China’s Belt and Road Initiative and blasted the West for having failed in its Africa policies

 

Will Africa Emulate China in Eliminating Poverty with BRI? More Electrical Power Needed

March 7, 2019

Rwanda Acknowledges Partnership With China Is Beneficial for Both Nations

President Xi Jinping left and President Paul Kegame-right (East African)

Answering a media query in Kigali on March 5, Rwandan Foreign Minister Richard Sezibera said that the Belt and Road Initiative is a partnership that is mutually beneficial for Rwanda and China, and addresses Rwanda’s development challenges, Xinhua reported. China is an important partner for Rwanda at all levels, and Rwanda welcomes the growing partnership with China, he said, adding that Rwanda and China have important relationships in infrastructure development, party-to-party and people-to-people exchanges, and at the political level.

Last August, {China Daily} reported Rwandan Ambassador to China Charles Kayonga telling the newspaper, through e-mail, that in Rwanda, “we have had financing for a number of roads, and we have seen direct investment by Chinese companies in a number of businesses rise.” 

 Africa is in need of infrastructure, among other things, to achieve sustainable economic transformation, he said, adding that cooperation with China will help finance the infrastructure projects to help spur the continent’s industrial development, which will, in turn, favor China in its vision of going global.

Prescient Xi: China is Eliminating Poverty

Speaking today with deputies from Gansu Province, President Xi Jinping underlined the importance of reaching the goal of eliminating poverty by 2020.

“There should be no retreat until a complete victory is won,” Xi said. “Decisive progress has been achieved in the country’s tough fight against poverty over the past years, marking a new chapter in the poverty reduction history of mankind.” Xi stressed, that the goal to eradicate extreme poverty must be achieved on time. He warned that the tasks ahead remain arduous and hard, as those still in poverty are the worst stricken. He also warned that, “the practices of ‘formalities for formalities’ sake and bureaucratism hamper the effective advancement of poverty reduction.” He also warned against the tendency to celebrate short-term gains when it comes to addressing the problem of poverty. He insisted that claims of success should be grounded in reality, and that the results of poverty alleviation work must be able to stand the test of time.

 Also today, a comprehensive briefing was given on the success of poverty reduction over the last few years by Liu Yongfu, Director of the State Council Leading Group Office of Poverty Alleviation and Development. He held a press conference outlining the progress of the poverty-alleviation campaign. Liu noted that between 2012 and 2018, some 80 million people had been brought out of poverty at an average of 13 million people a year. Of the nine eastern provinces, eight were now free of poverty. He said there are 832 counties still enmired in poverty. In 2016, there were 28 counties that had been lifted out of poverty, and in 2017, some 125 counties, and in 2018, an estimated 280 counties. In 2013 there were 128,000 villages in poverty, while in 2018 there were 20,000. Poverty has been reduced during that period by 85%, Liu said, and the goal this year is to bring 10 million more people out of poverty. In 2019 the government will increase the funds devoted to poverty alleviation by 18.9%


African Development Bank Funding New Power Transmission Line For East Africa

In an article on its website, the African Development Bank (AfDB), pointing to regular power cuts in the East African countries from Kenya to Tanzania, from Uganda to Ethiopia, said this is about to change with the upcoming commissioning of a power transmission line to interconnect Kenya and Ethiopia. This project falls under one of the AfDB’s ‘High 5 priorities’ to ‘Light up and Power Africa.’ Working with
institutional partners, the Bank has mobilized resources to ensure the success of this project. At a cost of $1.26 billion, the project was co-funded by the African Development Bank ($338 million), the World Bank ($684 million), the Government of Kenya ($88 million), and the Government of Ethiopia ($32 million), the article noted.

The interconnection will function by means of a 1,068-km, 500-kilovolt high-voltage direct current transmission line, 437 km in Ethiopia and 631 km in Kenya with related facilities at Wolayta-Sodo (Ethiopia) and Suswa (Kenya). By December 2020, it will have a transmission capacity of 2,000 MW. This will make Ethiopia the energy giant of East Africa, while Kenya will become the epicenter of electricity trading in this part of the continent.

“The project will initially be able to transfer 400 MW from Ethiopia to Kenya, but negotiations are under way to better match the capacity of the line to Kenyan demand,” said Joseph Njogore, first secretary at the Kenyan Ministry of Energy, at an energy forum held in Nairobi in August 2018, the website noted.

 

Presidents Kagame and Museveni Discuss; Democracy, China, Infrastructure, and Jobs

President Paul Kagame: Time for Europe To Invest in Industry and Infrastrucure

December  26, 2018)

In an exclusive interview with Austria’s {Die Presse} news daily, Rwandan President Paul Kagame stated that “Europe has invested billions upon billions of dollars in Africa. (But) something must have gone wrong…. Part of it is that these billions had a return ticket. They flowed to Africa and then back to Europe again. This money left nothing on the ground in Africa.” The European money was invested in the wrong place, he said.  Instead it should go to investments “in industry, infrastructure, and educational institutions for Africa’s youth, whose number is growing fast. That is the only way to create a  demographic dividend.” It would be a better way of preventing migration of young Africans to Europe, which the Europeans were so much worried about. Europe could cooperate with China, Kagame hints: “China is active in Rwanda, but not in an inappropriate way. The new roads in Rwanda are largely built with European money. Sometimes there are Chinese subcontractors.”

 What Africans do not need, is Europeans trying to give them lessons on democracy, Kagame said. The European model of democracy is a failure, Europe is in a profound political crisis, as shown by the recent mass protests and other aspects, this model cannot be one for Africans to follow. Europe finally has to give up its attitudes of fake generosity, and begin accepting Africa as a real partner, he said.

Presidents Museveni of Uganda and Kagame of Rwanda

China Creating Tens of Thousands of Jobs for Ugandans in Infrastructure Projects

Ugandan President Yoweri Museveni revealed in an interview with {Xinhua} with its focus on infrastructure development, the country wanted to attract more invest-ment from China: “We are likely to advance the project of the Standard Gauge Railway (SGR)… in the government-to-government (talks).” Extending the Chinese-built SGR line from the Kenyan seaport of Mombasa, which is expected to reach the border areas with Rwanda, South Sudan, and the Democratic Republic of Congo, to Uganda would make sense as a catalyst of economic growth. To finance its infra-structure development agenda, Uganda looked at China because of the country’s favorable lending terms compared to some of the Western global financiers.

Other major infrastructure projects in Uganda will benefit from Chinese support as well: A few months ago, the Kampala-Entebbe Expressway, linking the capital Kampala to Entebbe Airport, the country’s gateway to the world, was completed. China financed the construction of the mega road  project, the first of its kind in the country. China is also financing the expansion of Uganda’s Entebbe International Airport. Official figures show that after completion of the first phase of expansion, the cargo center can handle up to 150,000 metric tons of goods, compared to the previous 69,000 metric tons.

In the northern part of Uganda along the River Nile, the world’s longest river, China is constructing the 600MW Karuma Hydropower Plant. While touring the facility in July, President Museveni said he was amazed by the progress noting that the plant will not only address Uganda’s inadequate power supply, but also that youths have become skilled through the construction process.

Farther upstream on the River Nile, in the central Ugandan district of Kayunga, construction of a Chinese-funded 183MW Isimba Hydro-power plant that is nearing completion according to the Chinese engineers on site, power generated by the plant is expected to come onto the national grid early next year.

The power development plan is crucial for the Uganda’s industrialization policy, which has designated over 22 industrial parks across the country where investors can set up base, taking advantage of the incentives that come with establishing their factories in the parks. In October, President Museveni launched the first phase of a $620 million Chinese industrial project in the eastern district of Tororo. The project has dubbed the Uganda-China Free Zone of International Industrial Cooperation, undertaken by the Dongsong Energy Group, will manufacture glass, steel, and organic-fertilizers, creating about 3,000 jobs at peak when completed in 2020.

President Museveni, in March of this year launched another Chinese-owned Mbale Industrial Park. The park owners, Tian Tang Group, said it will attract more than 30 investors with a total investment of about $600 million and an annual output value of $1.5 billion. The park will directly employ about 12,000 locals.

 The $220 million Kehong China-Uganda Agricultural Industrial Park, is another park that will play a critical role in transforming the economy. According to government figures, almost 80% of the country’s population derives its livelihood from agriculture.

 When fully operational, Kehong China-Uganda Agricultural Industrial Park is expected to produce about 600,000 tons of agro-products annually to meet the domestic and regional market demands.

 It will also create 25,000 jobs as well as making opportunities for training local people available, according to the managers of the park.