Ms. Ronchin does a service for Africa by publishing this story on August 30th (originally in Italian), one month after the coup in Niger. The obviously complete failure by France, the United States, and Western institutions, to nurture real economic development and provide security for Sahelian nations has led to a succession of coups. From my vantage point as a physical economist, these drastic changes in leadership are understandable, though by themselves they will not provide a solution. Unfortunately, more coups may be on the way.
Take the case of Niger. With almost half its people living in abject poverty, only 3% of the population having access to electricity, and the youth seeing no future as a Francophone nation, should anyone be surprised of the anger directed at the Western backed government? Niger is home to multiple miliary bases for drone deployments and to house 1,100 U.S. troops and 1,500 French forces.
The relevancy of Transaqua* is that, if this great water-energy-agricultural infrastructure project had been implemented, as I have advocated for 30 years, the conditions life in the nations of the Lake Chad Basin would have undergone an economic transformation. Had there been progress over recent decades in constructing Transaqua, Niger today, would be a completely different nation. If the U.S. had deployed the over $500 million it spent on military training and building drone bases on developmental infrastructure, such as electricity, the coup in Niger could have been averted. Sadly, the concept of development has vanished from the comprehension of the U.S. President, Congress, and State Department.
Although, it would appear to be miraculous, America is still capable of following in the footsteps of our most pro-African president, John F Kennedy, who unlike his immediate predecessors and those who came after him, had a true vison for the development of Africa. **
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. Mr. Freeman strongly believes that economic development is an essential human right. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com.
While the Western World, in particular, was shocked by the July 26, 2023, coup in Niger, I was not. This is now the fifth or sixth coup, (depending how you count) in the Sahel and Western Africa, following Guinea, Mali, Burkina Faso, Sudan, and Chad. Sadly, more coups may follow, unless we face the truth, and change Western policy. The primary underlying cause for these coups, is poverty, resulting in despair and desperation in the population. We should be clear that Russia may benefit, but they are not the cause of Africa’s coups. It is obsessive reliance on kinetic counter terrorism programs in the Sahel, all of which have failed, that drives policy makers to repeatedly fail to see the error of their ways. Niger’s coup should make it obvious to the architects of U.S.-European policy for Africa, unless they are brain-dead, that a radically new course of strategic thinking is required. Promoting economic development is the most vital element of a new strategic policy for Africa, and the Sahel in particular.
Remember Mali
For those of us who have been involved in Africa for decades, remember the Malian coup in the Spring of 2012. Prior to the removal of Malian President, Amadou Toure, by the military, Mali was touted by the West, as the show case of democracy and stability. It was viewed as a strong ally of the United States, with their armed forces trained by the U.S. The immediate trigger for the collapse of Mali, was the disastrous decision to overthrow the government of Libya and assassinate President Omar Gaddafi by President Obama, and his assemblage of war-hawks (witches); Susan Rice, Hilary Clinton, and Samantha Power. Obama’s October 2011 regime-change of a stable Libyan nation, unleashed hell across north Africa and the Sahel with thousands of armed Tuaregs and violent extremists set loose to occupy weak state regions and ungoverned territories. Similar to U.S. support of Mali, Secreatry of State, Antony Blinken, made a special visit to Niger in March 2023, to strenthen U.S. backing for another nation in the Sahel.
Why Niger?
With the end of French-Afrique well on its way, particularly with the French being kicked out of Mali, and the failure of the French anti-terrorist military deployment in the Sahel, known as Operation Barkhane, the U.S. designated Niger as the center of its counter-terrorist operation in North Africa.
At the time of the July 26 coup of Nigerian resident, Mohamed Bazoum, by his presidential guards, there were 1,500 French troops and 1,200 U.S. troops based in Niger. Additionally, the U.S built its largest drone base in Africa, Air Base 201, at the cost of over $110 million dollars, to provide intelligence and surveillance in the U.S. campaign against violent extremism. Estimates are that the U.S. spent almost half a billion dollars training the Nigerien armed forces.
Last week’s coup in Niger caught much of the outside world by surprise, given the country’s image as a relatively stable outlier in a region beset by frequent upheaval. Many outside observers found it hard to understand how President Mohamed Bazoum, a seemingly well-regarded leader believed to enjoy popular legitimacy, was overthrown by the armed forces. But if foreign observers were stunned by Bazoum’s toppling, it did not come as a shock to many Nigeriens, and not solely because of their country’s history of military coups.
To begin with, tensions between Bazoum and the army’s top brass and senior Defense Ministry officials were well-known to Nigeriens. Bazoum was also ushered into power in 2021 by a controversial election in which a popular opposition candidate was barred from running and that featured allegations of electoral malpractice. The protests that followed were marred by at least two deaths, many more injuries and mass arrests. And harsh crackdowns on recent public protests against the rising cost of living and Niger’s security partnership with France likely did little to assuage Nigeriens’ concerns.
Claims of an improved security landscape in Niger amid the fight against Islamist jihadists are also open to debate. But beyond the vagaries of statistical analysis, many Nigeriens simply do not believe that their lives have become safer and more prosperous, and seemingly favorable comparisons with their neighbors are no consolation. Niger remains one of the world’s most impoverished nations…
Security, economic progress, and social development are necessary to sustain public support for any system of government, including democracy. (Emphasis added)
Development Not Understood
During the years of the Obama Presidency, members of his administration would repeatedly and publicly lecture me that “we don’t do infrastructure.” Now, in the two and a half years of Joe Biden’s Presidency, both he and Secretary of State, Antony Blinken, openly espouse that the overarching intent of U.S. policy towards Africa (and the rest of the world) is to export “democracy” and “ good governance.” They believe, that only when nations embrace and commit to implement their constructs, will they be allowed to join the “rules-based international order.”
A July 17, 2023, opinion by the Editorial Board of the Washington Post reveals, unintentionally, the tragic flaws of the Biden-Blinken policy towards Africa.
As we have argued in this space before, the Biden administration should compete with Russia’s aggressive maneuvering, as well as China’s, for influence in Africa by focusing on what the United States does best: building the infrastructure of democracy. That takes time. But in the long term, it is the key to ending chronic instability and crippling poverty (sic), reining in corruption, and jump-starting economic development.
There is only one thing wrong with this policy; it is no damn good! Stability, peace, and democracy are dependent on a population that is prosperous, educated, and secure. Without economic development, these goals will not be achieved. If the tens of billions of dollars that was spent on kinetic counter-terrorism programs to diminish violent extremism, had been deployed for building infrastructure, the Sahel would be in far better shape than it is today. Electricity, roads, railroads, water management, farming, and manufacturing are essential for the wellbeing of a nation.
Without a continuously rising stanard of living for its people, Niger, like many other African nations, will not achieve peace, and stability. The physical economic improvement in the material existence of the lives of the population is not optional, not secondary, but a primary-essential requirement for a nation state’s continued existence.
The failure to comprehend these fundamental concepts is at the crux of the moral and intellectual bankruptcy of the Western political-financial elites and their inability to design a successful strategy towards Africa.
Listen to my 20 minute PressTV interview on Niger.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
New U.S. Hostilities Against Ethiopia Threatens Horn of Africa
Lawrence Freeman
May 24, 2021
On May 23, U.S. Secretary of State, Antony Blinken, announced visa restrictions “for any current or former Ethiopian or Eritrean government officials, members of the security forces or other individuals …responsible for or complicit in undermining the resolution of the crisis in Tigray.” According to the State Department press statement, the Biden administration has “imposed wide-ranging restrictions on economic and security assistance to Ethiopia and will bring our defense trade control policy in line with them.” Although not explicitly stated by Blinken, the U.S. will suspend $130 million of U.S. security assistance to Ethiopia, originally paused by the Trump administration. Multiple government sources report that the Biden administration is in the process of taking additional punitive measures against Ethiopia, including pressuring the International Monetary Fund and the World Bank to hold back funds already designated for programs in Ethiopia. Additional U.S. sanctions have not been ruled out.
With the announcement of these bilateral and possible multilateral assaults against Ethiopia, the U.S. will not only reverse decades of cooperation between the two nations, but potentially could endanger the entire Horn of Africa, and beyond. Ethiopia has played an indispensable role in providing security and stability in East Africa. This new U.S. posture towards Ethiopia, meant to appease the international liberal establishment, is reckless and perilous.
These types of measures, usually reserved for enemies of the U.S., are being implemented against a longtime trusted ally. A nation that has vigorously collaborated with the U.S. under both Republican and Democratic Presidents in fighting terrorism and violent extremism in the region.
Expressing the gravity of this abrupt policy shift by President Biden, Cameroon Hudson, of the Atlantic Council said to Foreign Policy: “This is a major strategic shift in the Horn of Africa, to go from an anchor state for U.S. interests to become a potential adversary to U.S. interests.”
courtesy of aa.com.tr
This foolishness and lack of judgment by President Biden, Secretary of State Blinken, and the U.S. Congress, can potentially lead to a calamity for Africa, not seen since the disastrous decision by the Obama administration to overthrow the Libyan government in October 2011. Nations in the Sahel and millions of Africans living in that region are still suffering today from the misadventure by President Obama and his zealot regime change advisors, who removed President Kaddafi from office. Look at Libya today, and the affects almost a decade later on North Africa. Attempts to weaken Ethiopia through economic strangulation and political isolation, in this turbulent period of Ethiopian society, are downright dangerous and could cause severe harm for millions of Africans.
This draconian assault against Ethiopia by the U.S. can potentially lead to a weakening of the Ethiopian nation by encouraging more ethno-nationalist attacks on the government. Were that to happen, be forewarned, that like Shakespeare’s Lady Macbeth, who lamented, “what, will these hands ne’er be clean,”–the blood stain of millions of Africans may never be removed from the hands of the Biden administration and the U.S. Congress.
There are evil forces, who would like to see Ethiopia devolve into a balkanized territory of hostile competing ethnic fiefdoms. This would be a disaster for Africa and the world, and is not in the self-interest of the U.S.
Changing the Narrative
Woefully, war is always ugly and always leads to atrocities, but let us remember the cause of the conflict in Tigray. The Tigray People’s Liberation Front (TPLF) conducted a surprise attack on the Ethiopian National Defense Force (ENDF) in Mekele in the early hours of November 4, 2020. They attacked the armed forces of the Federal government i.e., the nation state of Ethiopia. Like President Lincoln, who responded to the confederate attack on the Union’s Fort Sumpter, by declaring war, Prime Minister Abiy Ahmed had no other choice, but to respond militarily. Otherwise, the nation of Ethiopia could have been dismembered by emboldened ethno-nationalist forces declaring their independence from the central government.
There have been attempts by numerous individuals and organizations in and outside of Ethiopia to falsely claim an equivalence between the TPLF, an ethno-regional organization, and the national government of Ethiopia located in Addis Ababa. Some even try to equate the ENDF with the TPLF militia.
Various news organizations have now intentionally resorted to blurring the actual cause of the war. A recent article by Associated Press referred to the TPLF attack in Mekele as an “allegation” even though TPLF leaders have proudly admitted their action. The New York Times claims that Prime Minister Abiy’s armed response was in reaction to TPLF “defiance” rather than the truth, which was the slaughter of ENDF troops by the TPLF.
Does the U.S. Congress Possess Intelligence?
The U.S. Senate unanimously passed Senate Resolution 97 (S.Res.97) on May 19, following multiple requests by the Foreign Relation Committee of the U.S. House of Representatives for sanctions to be imposed on Ethiopia.
There has been no official report of evidence by the U.S State Department or intelligence services verifying allegations of “genocide” or “ethnic cleansing” by the Ethiopian government. It is pathetic, yet valuable to know that accusations against Ethiopia by the State Department, the House of Representatives, and the Senate, have in large part come from news organizations. Whatever happened to U.S. intelligence capabilities? Has U.S. intel gathering been so corroded that it has to rely on private organizations, who have their own agenda? Should the U.S. be making foreign policy decisions without independent knowledge of events? CNN brags in its own May 21st article that it was their news (sic) organization and a pro TPLF lobbying firm ,Von Batten-Montague-York, that was responsible for convincing U.S. Senators to support S.Res.97. The U.S. Senate, sometimes called, the world’s greatest deliberative body, was in fact led like lemmings, by CNN and a DC lobbying firm to condemn Ethiopia’s government. Is that what the founding fathers of this great republic contemplated when they created the Senate? I think not.
No Respect for Ethiopia’s Sovereignty
Despite the fact that very few, if any U.S. Senators have a deep-seated knowledge of the complexities of Ethiopian culture and society, they did not refrain from encroaching on Ethiopian sovereignty, which obligates the central government to act in the interest of safeguarding the nation.
S.Res.97, ignores the responsibility of Prime Minister Abiy to defend his nation, demanding instead: an immediate cessation of hostilities in the Tigray Region; strongly disapproving of the escalation of political tensions between the Government of Ethiopia and the Tigray People’s Liberation Front (TPLF) into armed conflict; and most egregiously urges the government of Ethiopia to engage in a full cessation of hostilities. In essence, S.Res.97, rebukes the Ethiopian government for defending its nation from an insurrection, and demands reconciliation with the insurgents.
Breaking up the Union, only weeks after President Lincoln took office, was the explicit intent of the southern states, who insisted that the U.S. government, no longer represented them. President Lincoln would not allow the republic to be divided. He waged a relentless war that ultimately led to the deaths of upwards of 750,000 Americans. He ignored all pleas to come to the peace table and negotiate with the enemy of the Union, who he would only refer to as “rebels.” The only negotiation President Lincoln would accept from the “rebels” was unconditional surrender. Under no condition would he allow some other country to dictate to him, the President of the United States of America, how to conduct the war to save the Union.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
Ghana’s proposed rail lines of over 4,000 kilometers.
May 14, 2021
The commitment by the government of Ghana to upgrade its railroad system, including a rail line to Ouagadougou, the capital of Burkina Faso indicates an understanding of the importance of infrastructure. Railroads build nations by moving freight, connecting the nation internally and externally, and serve as a spine for manufacturing centers. All progressing economies exist on the foundation of an integrated infrastructure platform.
This new railroad from Port Tema to Burkina Faso, discussed in the article below-Go To Ouagadougou!-(AfricanAgenda.net) is an ambitious 1,000 kilometer rail connection, which will become Ghana’s first ever rail line beyond Kumase.
Prior to 2017, less than 10% of the old British network of 947 kilometers was operational! The Master Plan of the Ghana Railway Development Authority, completed in 2013, envisages a 4,007 kilometer rail network at a cost of almost $21,508,000. Ghana’s president, Nana Akufo-Addo, now serving his second term, has been a major drive of this project.
This is exactly the bold visionary policy African nations need to develop their economies. Ghana and Cote d’Ivoire, who together produce the majority of the world’s cocoa beans, can also become the economic drivers of West Africa and the Sahel, through infrastructure investments in rail and energy. New rail lines running north from Cote d’Ivoire’s port of Abidjan, the largest port in West Africa, to Burkina Faso, Bamako, Mali, and Guinea, would complement Ghana’s expansive rail program.
This is how the future of Africa will be built. This is the pathway to industrialization, which can finally eliminate hunger and poverty in Africa!
By investing in frast5ucure, especially in railroads and energy, Cote d’Ivoire and Ghana can be the drivers of development for West Africa and the Sahel.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton
Below, I have reprinted a slightly abridged article from EIR magazine, which reports on important new impetus for Transaqua. Romano Prodi, former Prime Minister of Italy, former President of the European Commission, and former UN Special Envoy for the Sahel, has called on the EU, UN, and AU, to join with with China in moving forward with Transaqua, a mega water-development project to transform the Sahel. With this high level of backing for Transaqua, it is now incumbent on the Lake Chad Basin Commission to take the initiative to secure a contract for a feasibility study of the design of Transaqua, outlined below.
Italy’s Prodi Puts Transaqua Back on the International Agenda
by Claudio Celani, EIR magazine
CC/Francesco Pierantoni Romano Prodi, former Prime Minister of Italy, former President of the European Commission, and former UN Special Envoy for the Sahel.
Nov. 23—At this time when the world’s nations have not yet adequately responded to the call for help launched by the World Food Program (WFP) to avoid mass starvation in the developing sector, the issue of Transaqua has again come into focus as the durable solution to famine, terrorism, and emigration in Central Africa. On November 13, Romano Prodi, the former EU Commission President and former UN Special Envoy for the Sahel, launched a strong call for the EU, the UN, the African Union (AU), and China to join hands in financing and building this giant infrastructure platform, that can be the locomotive of agro-industrial development for the entire African continent.
Transaqua—also called the Transaqua Inter Basin Water Transfer Scheme—is a project that dates back to the mid-1970s, when engineers from the Italian company Bonifica witnessed the drying up of Lake Chad and came out with the idea of refilling the lake by transferring water from the Congo Basin, where immense quantities of water were simply wasted into the Atlantic Ocean, unused.
EIRNS/Julien Lemaitre Dr. Marcello Vichi speaks at a Schiller Institute Conference, “Rescuing Civilization from the Brink,” in Rüsselsheim, Germany, July 2, 2011.
By building dams along some of the right-bank tributaries of the River Congo and connecting these reservoirs with canals, the Bonifica engineers, under the direction of Dr. Marcello Vichi, calculated that with only 5% of the water that goes into the River Congo, it was possible to transfer up to 100 billion cubic meters of water per year into Lake Chad. These tributaries are at high altitude, so that water in this dam and canal system can travel across the Central African Republic-Chad watershed by means of gravity alone.
Figure 1-The Transaqua Project, as Proposed by Bonifica
Besides refilling the gradually disappearing lake, the infrastructure would provide a 2400 km waterway that would boost trade from the southern region of the Democratic Republic of Congo (DRC), close to the Great Lakes region, up to Bangui, capital of the Central African Republic, and down to Lake Chad. The numerous dams would provide plenty of electricity and irrigation capability for 7 million hectares of farmland, providing the platform for developing agro-industrial activities.
After many decades of oblivion and thanks to efforts by EIR and the Schiller Institute, Transaqua received a new impulse in February 2018, when the plan was adopted at the International Conference on Lake Chad in Abuja, and the Italian government pledged to fund part of the feasibility study.
Since then, however, the momentum has slowed down. After Abdullah Sanusi, P.E., left at the end of his mandate as Executive Secretary of the Lake Chad Basin Commission in 2018, no significant impulse has come from that institution, which brings together the five riparian member states around the lake—Cameroon, Niger, Nigeria, Chad, and the Central African Republic.
On the Italian side, with the exception of an amendment drafted by Sen. Tony Iwobi—who managed to include initial funding for the feasibility study in the Italian government budget for 2021—a political shift in the government has led to a change in ministerial personnel, and the tender for the study has been left up in the air. The Covid-19 pandemic has overwhelmed an unprepared and incompetent government.
Prodi Not for Colonial Songs about Africa
Now, a seminar organized by the Turin Center for African Studies on November 9-13, “Water Diplomacy and the Culture of Sustainability: The Lake Chad Basin,” has put Transaqua back on the list of strategic priorities. Speaking at the final roundtable, Prodi said the project cannot wait any longer: “Please, don’t come with environmental objections, the former EU chief said. “Don’t sing the song that human intervention can damage the environment: In this case, we help nature to recover a situation of internal balance, to the advantage of African peoples—an internal balance that has been lost.”
Prodi’s reference to pseudo-environmental objections to Transaqua is important, because one of the main sources for those objections has been that very EU Commission that Prodi has chaired in the past, whose structure and ideology Prodi knows very well…
Back in 2013, the EU Commission rejected Transaqua, ostensibly with environmental motivations. Answering a query by European Parliament member Cristiana Muscardini, EU Development Commissioner Andris Piebalgs stated that “Preliminary feasibility studies… indicate that the project would involve major environmental risks.”
Opposition to Transaqua has also been fed by former European colonial powers which still have political control over some governments in the region. Notably, the government of Canada, on behalf of the British Commonwealth and of French government institutions, has recently funded a paper, “Soft Power, Discourse Coalitions, and the Proposed Inter-basin Water Transfer Between Lake Chad and the Congo River,” which claims that Transaqua is an imperialist scheme pushed by the government of Italy, China, and the Schiller Institute…
Representatives gather for a UN-sponsored international conference on the Lake Chad Region in Berlin, September 3-4, 2018.
‘Something To Do Together with China’
Rejecting such phony objections, Prodi stated:
“What we must do, in my view, is a strong action of healthy lobbying, a call on Europe, the African Union, the United Nations, China, to carry forward this project. Be aware that the Lake Chad Basin covers one eightieth of the entire African continent. This is enough to understand its importance. And it affects the poorest, most disgraced and left-behind area.
“Since such a large project as Transaqua involves political, financial, technological, and security aspects, it needs strong political leadership and economic power. Thus, the EU, UNO, and OAU—should try to involve China, because [some] reports connect Lake Chad with the Silk Road. What is the political problem of the Silk Road? It has been a Chinese thing. We must find something to do together with China.”
The video of Prodi’s presentation, in Italian with English subtitles, can be viewed here.
The day before, on November 12, the seminar had featured engineer Andrea Mangano, a veteran of the Bonifica team that had developed the original Transaqua idea in the 1970s. In an interview format entitled “Lake Chad and Infrastructure: Challenges and Ideas,” he presented the updated version of the project—similar to what Mangano himself and other Bonifica officials have presented at Schiller Institute and EIR events in recent years.
Starvation Warnings from WFP’s Beasley
Recently the UN World Food Program’s Executive Director, David Beasley, warned that the Central Sahel region faces one of the world’s fastest-growing humanitarian crises. This is the region most affected by the deterioration of living conditions due to the drying out of Lake Chad, conditions that have offered grounds for recruiting young people to the terrorist Boko Haram. Terrorism has added to economic devastation and caused huge migration waves in the region.
More than 13 million people now require urgent humanitarian assistance, five million more than estimated at the beginning of 2020, Beasley said, characterizing their plight as “marching toward starvation.”
In October, Beasley travelled in several nations in the region, together with the development ministers of Germany and Denmark, to solicit not only emergency aid, but also long-term investments in infrastructure. On October 9, Beasley was in Niger when he got the news that the World Food Program had been awarded the 2020 Nobel Peace Prize. He said to reporters that day:
The fact that I was in the Sahel when we received the announcement is really a message from above, that “Hey, world. With all the things going on around the world today, please don’t forget about the people in the Sahel! Please don’t forget about the people that are struggling and dying from starvation.”
EIRNS Left to right: Mohammed Bila (Lake Chad Basin Commission), Andrea Mangano, Marcello Vichi, and Claudio Celani (EIR), discussing plans for Transaqua in the Rome Bonifica office, summer 2015. Lawrence Freeman also participated in this discussion.
Transaqua is exactly the infrastructure that could stabilize the entire region. You don’t need to wait until the first dam is built and water starts to come through the Chari River to Lake Chad from the Congo basin: The many jobs created by the project will immediately start to stabilize the region in terms of providing incomes for thousands of families.
Unfortunately, the October 20 donors’ conference organized by Denmark, Germany, the EU, and the UN in Copenhagen, took the restricted view of humanitarian intervention. Some $1.7 billion dollars were pledged for emergency aid—and this is of course welcome— but it failed to address the root of the problem and adopt long-term solutions.
Mr. Prodi’s words must be followed by deeds, so that the “healthy lobbying effort” in favor of Transaqua is successful in bringing together the international coalition to build Transaqua.
*I do not support everything in EIR’s article, and also note its omission of my central role in advancing the Transaqua project.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
Support for Transaqua, a transformative mega infrastructure water project for Africa, continues to grow as reported below by movisol.org. Transaqua envisions transferring 50-100 billion of cubic meters of water yearly from the super wet Congo River Basin to the arid Lake Chad Basin via a 2,400 kilometer canal. When constructed, Transaqua will create a super economic zone that will affect a dozen African nations. Presently Italy and China are the only two non-African nations supporting Transaqua. The Lake Chad Basin Commission has not yet initiated a process to secure a contract for a feasibility study of Transaqua, despite support for it at an international conference held in Abuja in February 2018. I have campaigned for Transaqua for decades, and personally know that President Muhammadu Buhari is behind this project.
Former EU Commission President and former Italian Prime Minister Romano Prodi called for a major international effort, involving China, to build the Transaqua infrastructure to replenish Lake Chad. Prodi spoke at the final roundtable of a seminar dedicated to Lake Chad and sponsored by the Turin Center of African Studies Nov. 9-13.
Prodi, who had previously served as UN special envoy for the Sahel and had publicly declared that the Transaqua water-transfer program was too expensive, appears to have changed his mind and dedicated his pre-recorded video intervention entirely to an endorsement of Transaqua as the only solution for Lake Chad, calling for a concerted international effort to build the Italian-born project. Prodi accurately described Transaqua as an integrated water, energy, and transport infrastructure which will take only 5% of the Congo River, building dams on its tributaries and bringing water to Lake Chad through a navigable canal. The only mistake he made was to speak about the Ubangi River, the largest tributary of the Congo, instead of the Ubangi basin, whose water will be collected by Transaqua through the Central African Republic section of the waterway.
Since the political and economic hurdles are big, the international community at the highest level must be involved, Prodi said, calling for the UN, the EU, and the African Union to join forces to finance and build the project. And China: The New Silk Road, Prodi said, has a problem, namely, it has been so far a Chinese project. Let us involve China in something, let us involve China in building Transaqua.
Prodi’s presentation, in Italian with English subtitles took place at the “Water diplomacy and a culture of sustainability. The basin of Lake Chad,” at the can be followed here: Roundtable Discussion on Lake Chad
Andrea Mangano, a veteran of the Bonifica team that developed the original Transaqua idea presents in English, an overview of the Transaqua project and the conditions in the Lake Chad Basin. I urge everyone to watch this video.:
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
On October 31, Alassane Dramane Ouattara was re-elected President of Cote d’Ivoire. The official vote for President Ouattara was 3,031,483, which was 94.5% of total votes cast, with 53.9% of registered voters participating. Observers for both the African Union and Economic Community of West African States validated the legitimacy of the election process. On November 9, he was sworn in for his third term as president of Cote d’Ivoire.
In the days leading up to the election, scores of widely circulated stories, with frightening headlines predicting “chaos, a dangerous election, civil war,” attempted to create the narrative that this election could potentially experience a repeat of the violent conflict that caused thousands of deaths in 2010-2011. This blatantly false storyline, spread by major news outlets in Britain, France, and the U.S., that was intended to create fear and inflame the emotions of the population; never materialized. There were acts of civil disobedience and conflicts in a few outlying districts. However, in Abidjan, the country’s port city, where 20% of the population resides, there was no evidence of any kind of violence and the city remained calm.
I was very pleased to witness hundreds of Ivorians peacefully standing in long lines waiting to vote, in Treichville, a poor section of Abidjan. This was one of the several polling centers I visited. As I walked around several voting locations, I observed a professional orderly voting procedure.
Ivorians at Treichville lining up to vote
Stability for the nation of Cote d’Ivoire following this election is not only important for 25 million Ivorians but is vital for all of West Africa and the Sahel. Cote d’Ivoire’s bordering neighbors, Mali, and Burkina Faso are being destabilized from attacks by violent extremists.
Cote d’Ivoire, a potential economic hub in West Africa, is already exporting energy to several nations in the region and transporting goods from its port via rail to landlocked Niger and Burkina Faso. With the modernized Abidjan port, Cote d’Ivoire offers a vital gateway for development in West Africa.
Respect Cote d’Ivoire’s Sovereignty
It is universally recognized that President Ouattara, who was president from 2011-2020, created an economic recovery from the previous ten years of 2000-2010. In that period, referred to as the ‘lost decade,” Cote d’Ivoire was governed by President Laurent Gbagbo, and racked by a protracted and bloody civil war.
Originally, President Ouattara announced in March of this year that he would not run for office again. He threw his support behind the then Prime Minister, Gon Coulibaly, who unexpectedly died of a heart attack in July, compelling President Ouattara to reverse his decision.
Ivorians in Abidjan waiting to cast their votes in the presidential election
In an article published on Oct 28, in Modern Ghana,More than meets the eye, Mamadou Haidara, ambassador to the U.S., explains President Ouattara’s reasoning to seek the presidency again:
“This extraordinary circumstance left a major political party with the difficult task of identifying, vetting and putting forward an alternative candidate in a matter of days or weeks — an unrealistic timetable in any country, and especially so in this young and still somewhat fragile democracy…
“Confronted with this unforeseen predicament, President Ouattara’s decision to seek another term in office was the only viable path forward for his party and his country.”
The nation’s Constitutional Council ruled on September 14, that in accordance with Cote d’Ivoire new constitution of 2016, it was permissible for President Ouattara to seek a third term. United States ambassador to Cote d’Ivoire, Richard Bell supporting the nation’s sovereign authority to conduct its election, responded in an interview published in Fraternite Matin (October 17-18):
“Question: Of the 44 candidates, only 4 were deemed eligible to take part in the election. Do you have a comment on this situation?
Amb Bell: There are a lot of applicants who weren’t successful. I think the Constitutional Council ruled that they did not meet the criteria. In any country, there must be someone who decides. Who says the law in this country? There has to be a clear answer to this question. In Côte d’Ivoire, for questions of this kind, I believe that it is the Constitutional Council which decides. The United States respects the sovereignty of Côte d’Ivoire. I therefore find it hard to see my government contradicting what is said by the highest Ivorian authority.”
A voter registering to vote
Destabilization Launched
Those seeking to destabilize Cote d’Ivoire, seized the ruling by the Constitutional Council to allow President Ouattara to seek a bid for a third term as a gambit to destabilize the nation.
In addition to the 78 year old President Ouattara, from the Rally of Houphouetists for Democracy and Peace party (RHDP), the Constitutional Council approved three other candidates to compete for the office of president.
Henri Konan Bedie, Democratic Party of Ivory Coast (PDCI), 86 years old, a former president Cote d’Ivoire from 1993-1999, before he was couped. He initiated ethnic conflicts when he introduced the notion that to be a “true” Ivorian both parents had to be Ivorian.
Pascal Affi N’Guessan, Popular Front Party (FPI), 67 years old, a former prime minister from 2000-2003 under President Gbagbo.
Kouadio Koana Bertin, running as an Independent, 52 years old, a former youth leader of the PDCI, who competed for president in 2015.
On October 15, candidates Bedie and N’Guessan, fearing they would lose, called on their supporters to boycott the election, in preparation to create the conditions to destabilize Cote d’Ivoire immediately following the vote. This calculated action, a mere 16 days before this critical election, which would impact the nation’s future, was intended to prepare the groundwork for a campaign to “delegitimize” the presidential election. Right on cue, as part of their scheme, Bedie, and N’Guessan, who received .99% and 1.66% of the vote respectively, characterized the election as illegal and illegitimate, as they had planned. The duo then nonsensically called for the creation of a “council of national transition.” In effect, these defeated candidates, who claim to support democracy, are advocating for the disenfranchisement of millions of Ivorians, who endured the heat and long lines to vote for the candidate of their choice.
Democracy at the ballot box
Sedition
N’Gueesan was arrested on November 7, and Bedi is under house arrest for calling for the formation of an unlawful-none-elected government. This may not seem serious to those unfamiliar with Cote d’Ivoire’s history of elections. However, Ivorians memories are deeply scarred from the violence that followed the 2010 presidential election, when President Laurent Gbagbo refused to leave the presidential palace after being defeated by President Ouattara. From December 2010 into March 2011, heavy fighting between opposing armies in Abidjan killed three-thousand people and displaced upwards of one million. For a young, emerging nation, recalling the horrors from a decade earlier, the actions of N’Ggueesan and Bedie are threatening to Ivorian society and its elected government.
Joining the opposition coalition that is attempting to overthrow the elected government of Cote d’Ivoire is Guillaume Soro. He served as prime minister under President Gbagbo from 2007 to 2012, and President of the National Assembly from 2012 to 2019, during Ouattara ‘s presidency. He previously was an ally of President Ouattara and led the rebel forces against then President Gbagbo. It is important to recognize that prior to the election, Soro confirmed the opposition’s game plan, telling Le Monde, a major French newspaper:
“We have succeeded (sic) in discrediting the electoral process and in giving ourselves the means not to recognize Mr. Ouattara as President of the Republic of Cote d’Ivoire after October 31.”
Soro, who was disqualified from running for president by the Constitutional Council for embezzlement and money laundering, is residing in Belgium after being found guilty in absentia. On November 4, four days after President Ouattara’s victory, Soro called for armed mutiny against President Ouattara. He posted on his face book an appeal for a military coup. He wrote:
“Turning now to our security and Defense forces…I’m asking you to disobey illegal orders and join the national transitional council…We cannot out of fear, allow dictatorship in Ivory Coast by Alassane Ouattara.”
Bedie also failed when he tried to enlist the support of the U.S. to join his effort to subvert the election. On November 2, the U.S. Embassy in Abidjan issued the following statement:
“The United States Ambassador did not meet the candidate Bédié this weekend. The United States respects constitutional order in the Republic of Côte d’Ivoire, which President Ouattara still leads, and urges all to respect constitutional order and avoid violence.”
Showing international observer proof he voted with blue ink on his finger
Time to Move Forward
With the election over, now is the time for Cote d’Ivoire to unite around the goals of fulfilling the nation’s potential, industrializing its economy, and providing for the wellbeing of all its people.
President Ouattara, in his acceptance speech on November 9, committed himself to resolving the country’s conflict:
“I would like to reaffirm my availability today, as I did yesterday, for a sincere and constructive dialogue with the opposition, while respecting the constitutional order.
“I would like to invite my elder, President Henri KONAN BEDIE, President of PDCI-RDA, to a meeting in the next few days for a frank and sincere dialogue in order to restore confidence.
“I ask all our fellow citizens, in a surge of peace of minds and hearts, to work to maintain and strengthen peace throughout our country. We have so much to do together, to build and consolidate our Nation.
“The time for electoral competition has passed. Now is the time for action. And for me, action is the “Côte d’Ivoire Solidaire” Project for which I was elected, and which will accelerate the economic and social transformation of our country, through more inclusive growth.”
President Ouattara’s administration has outlined in its Strategic Plan-2030, a vision for a prosperous and inclusive Cote d’Ivoire. Key goals of this plan include; reducing poverty from 39% to 20%, increasing life expectancy from 57 to 67 years of age, creating 8 million new jobs, and reducing child mortality by 40%.
It is in the interest of all Ivorians to move beyond this contentious election and work together to achieve a stable and blossoming nation. With peace, stability, and the right policies, Cote d’Ivoire, a lovely cultural melting pot of many nationalities, is capable of becoming an engine of growth for West Africa.
(The authored visited Cote d’Ivoire from October 23-Novemebr 3, 2020)
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
The multi-nation Transaqua water infrastructure project can reverse the shrinking of Lake Chad and bring stability to the region and transform Africa. (picture courtesy of https://menafn.com/
October 1, 2020
This article from {MENAFIN},The Key to Peace in the Lake Chad Area is Water Not Military Action, excerpted below, makes an important contribution for the need to construct the Transaqua inter-basin water transfer project. The Abuja-2018 conference referred to in this article adopted Transaqua as the preferred solution to refurbish Lake Chad. I was a key speaker at the conference in Abuja and have been advocating for Transaqua for over 20 years. There will be no end to instability in the region until poverty is eliminated by transforming the economy. There is no lesser solution. We need bold resolute leaders to aggressively push forward for a feasibility study of Transaqua. Too much time has been wasted and too many lives have been lost due to inaction in the Lake Chad Basin.
Excerpts:
“Lake Chad is an extremely shallow water body in the Sahel. It was once the world’s sixth largest inland water body with an open water area of 25,000 km2 in the 1960s, it shrunk dramatically at the beginning of the 1970s and reduced to less than 2,000 km2 during the 1980s, decreasing by more than 90% its area. It is one of the largest lakes in Africa. It is an endorheic lake – meaning that it doesn’t drain towards the ocean…
“The Lake Chad region, however, is one of the most unstable in the world. According to the 2020 Global Terrorism Index report , countries of the region are among the 10 least peaceful countries in Africa…
“The study found that loss of livelihoods has promoted criminality, easy recruitment by terrorist groups, and migration to urban centres. This has also led to violence and crime in cities and towns. Management of the shrinking lake has caused conflicts among the states that depend on it and this has made it more difficult for them to collectively fight insecurity in the region. The lake is central to regional stability. To achieve peace, countries should focus on reviving the water body rather than on military activities…
“Loss of the traditional means of livelihood leads to widespread poverty and food insecurity. A 2017 report estimated there were about 10.7 million inhabitants of Lake Chad Region in need of humanitarian services…
“Further, Boko Haram has capitalised on the loss of livelihoods and economic woes to recruit people into its ranks. It either appeals to the poor ideologically or directly uses economic incentives…
“The Lake Chad Basin Commission has identified the need to replenish the water body. There was a plan to build a dam and canals to pump water from the Congo River to the Chari River, Central African Republic and then on to Lake Chad [Transaqua]. It was first mooted in 1982 by the Italian engineering company Bonifica Spa, and discussed at the International Conference on Lake Chad in Abuja in 2018. Major challenges to this plan include funding, resistance from environmental campaigners and peaceful conditions in which to carry it out.”
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
The northern two-thirds of Mali is in the desert. It is completely underdeveloped, and it is in this desolate region that the violent extremists are based
August 4, 2020
The letter below was sent on September 1, 2020 to the Bureau of African Affairs, Department of State. The letter does not express my full thoughts about what precipitated the coup and the polices necessary to ensure future of Mali. However, as a long standing member of the Mali Affinity Group, and fierce defender of Mali’s sovereignty, I support much of letter’s content.
A Way Forward for Mali
Background
After several months of daily massive anti-government demonstrations in the streets of Mali’s capital city, Bamako, the Malian military intervened during the week of August 17 to remove President Keita and his government. While there appears to be broad and intense popular support for the military’s move, it violates the constitution and international law. In response, the West African community (ECOWAS), the African Union (AU), the United States, and the European Union condemned the military’s actions and it triggered the suspension of economic and military assistance from donor governments, as well as from the international financial institutions. While in the custody of the military, President Keita tendered his resignation, and has been allowed to return to his personal residence.
The ECOWAS mediator delegation, headed by former Nigerian President Goodluck Jonathan, had been working to end Mali’s internal political crisis for several weeks before the military takeover. This delegation is continuing to speak to the leaders of the military takeover, and to the different political factions, with the objective of returning the nation to civilian rule as soon as possible, through a brief transition, and new democratic elections.
The leaders of the military takeover are talking about a three year transition, revealing their total distrust of the Malian political elites. Such a long period of military rule is clearly unacceptable for a number of reasons, including the temptation to institute permanent military rule, as in the corrupt military dictatorship of General Moussa Traore, 1968-1991.
Here is what we recommend for U.S. policy toward the Republic of Mali at this time.
Recommendations
Continue to recognize and support the ECOWAS mediating mission as the lead international group to assist the Malians to establish an expeditious return to
democratic government.
Engage all stakeholders to implement the terms of the Algiers Accords without delay.
Through the U.S. Embassy Defense Attaché, encourage the Malian military commanders to immediately bring in civilian political persons to share planning and
implementation of the transition. (N.B. The head of the military takeover group is Colonel Assimi Goita, who trained in the United States with American Special
Forces.)
Encourage a mixed civilian and military transition of no more than one year, followed by the organization of elections. The process should include civilian political
leaders who are domestically or international known and respected for their democratic commitment to good governance, transparency, and free and fair elections
Provide assistance to American democracy institutions such as IRI and NDI to immediately send personnel to Mali to assist in the preparation of free and fair elections and reforms, and engage with civil society to address grievances around the political process with a special focus on combating corruption.
Inform the Malian takeover military leadership that economic and military assistance will be restored as soon as it is clear that the government is under civilian control, and that preparations for elections are well advanced.
Consult closely with the French Foreign Ministry, and the French military to encourage continued support in the fight against “jihadist” terrorists in the north of Mali.
Begin to plan significant economic development projects for the north in order to deal with the socioeconomic causes of the insurgency.
In my brief interview below with CGTN, I discuss the effects on Mali of the the Western organized regime change against Muammar al Gaddafi in October 2011. The 2012 coup in Mali as well as the recent coup, have as their immediate cause, the destruction of Libya led by President Obama and his immediate circle of advisors. However, it is the failure over decades to develop the Sahel with basic infrastructure in rail, roads, water, and electricity that has systematically affected the Sahel, creating the conditions for the growth of violent extremism. The imposed underdevelopment of the African continent is the underlying cause for the majority of political and economic hardships that plague Africa today.
Watch my interview below that begins at 11 minutes 40 seconds and ends at 14 minutes.
Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in the economic development policy of Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com
Coronavirus testing supplies being unloaded at the Bole International Airport in Addis Ababa, Ethiopia, in March.Credit…Tiksa Negeri/Reuters
Ethiopian PM Abiy Ahmed: Debt Cancellation for the World to Survive
Lawrence Freeman
May 1, 2020
Ethiopian Prime Minister, Abiy Ahmed, has made an audacious salient call for debt cancellation for low income countries. It was published in the Opinion section of the April 30, New York Times, Why the Global Debt of Poor Nations Must Be Canceled, (printed in full below). PM Abiy is correct, debt cancellation is absolutely necessary to save lives and for developing nations to survive the COVID-19 pandemic. To compel a nation like Ethiopia to spend almost half of its revenue on debt service, while its people are suffering from a perfect storm of Desert Locust swarms, food insufficiency, and a weak healthcare infrastructure, is immoral if not criminal. PM Abiy wrote:
“At the very least, the suspension of debt payments should last not just until the end of 2020 but rather until well after the pandemic is truly over. It should involve not just debt suspension but debt cancellation…
“These steps need to be taken with a sense of urgency. The resources freed up will save lives and livelihoods in the short term, bring back hope and dynamism to low-income economies in the medium term and enable them to continue as the engines of sustainable global prosperity in the long term.
“In 2019, 64 countries, nearly half of them in sub-Saharan Africa, spent more on servicing external debt than on health. Ethiopia spends twice as much on paying off external debt as on health. We spend 47 percent of our merchandise export revenue on debt servicing…
“The dilemma Ethiopia faces is stark: Do we continue to pay toward debt or redirect resources to save lives and livelihoods?”
PM Abiy’s analysis of the urgent need for the cancellation of debt service is relevant to the exacerbating effect of COVID-19 in Africa’s rising food insecurity.
Smoked fish produced in Ghana is sold all over the country and in neighboring Togo – as long as transport routes and borders can remain open for the movement of food to markets. Credit Jane Hahn/Oxfam America
COVID-19 Worsens Food Crisis
In the month from March 30 to April 30, COVID-19 cases in Africa rose from 4,760 to 37,296-800% increase, and the total of deaths from 146 to 1,619-1,100% increase. Experts are legitimately concerned, that millions more may die from hunger and poverty as a result of the needed efforts to reduce the spread of the coronavirus. Closing borders, stay at home orders, loss of income, interruption of supply chains, and disruption of traditional animal migration cycles inauspiciously contribute to amplifying food insecurity.
“If the pandemic worsens, as many as 50 million more people could face a food crisis in the [Sahel} region,” according to Coumba Sow, Food and Agricultural Organization Resilience Coordinator for West Africa in her interview: FAO: COVID19: 50 Million in Sahel Could Face Food Crisis. Coumba Sow reports that across West Africa, 11 million people need immediate food assistance and that this number could rise to 17 million in the period from June to August. She says that it is “crucial to anticipate COVID-19’s impacts on agriculture, food security and the lives of vulnerable women and children. Ensuring that food systems and food supply chains are maintained is one of the most important action to take at national and regional levels.”
The World Food Programme (WFP) projects that the number of people facing acute food insecurity could rise from 135 million to 265 million in 2020 as a result of COVID-19. According to the WFP, five of the countries that had the worst food crisis in 2019 were located in Africa; Nigeria, Ethiopia, Sudan, South Sudan and the Democratic Republic of the Congo.
Arif Husain, economist for the WFP said: “COVID-19 is potentially catastrophic for millions who are hanging by a thread. It is a hammer blow for millions more who can only eat it they earn a wage. Lockdowns and global economic recession have already decimated their nest eggs. It only takes one more shock—like COVID-19 to push them over the edge.”
Mauritanian herders (Courtesy of UN-FAO)
A New Financial Architecture Required
While debt cancellation is essential, international and federal mechanisms are required to issue i.e. create new lines of credit to build up nation-wide advanced healthcare infrastructure, which all African nations lack. This endeavor should be part of a much larger undertaking to place African nations on a path to become developed industrialized economies. I discuss the importance of emerging nations to generate physical economic wealth in my earlier article: World Needs New Economic Platform to Fight COVID-19. Trillions of dollars of new credit must become accessible for African nations to address the dearth of infrastructure in energy, roads, railroads, and healthcare, that is literally killing Africans, every day. Successful transformation of African nations requires an urgent focus on nurturing combined manufacturing-agricultural processing industries. Speaking at a Johns Hopkins webinar on April 22, Gyude Moore, former Liberian Minster of Public Works (2014-2018) emphasized that creating manufacturing jobs is essential to transitioning to a more developed economy.
What has been glaringly brought to the surface by the combined COVID-19 pandemic and the malnourishment of Africa’s population is; that the global economic-political system of the last five decades has failed. A new financial architecture is compulsory to save lives and put civilization on the trajectory of progress. This new financial architecture should encompass the following essential missions in Africa:
Cancellation of debt
New credit generation for physical economic growth
Massive investment in hard infrastructure
Urgent mobilization to establish modern health infrastructure
Significant upgrading of manufacturing and agricultural sectors
It is unacceptable in the twenty-first century for every nation not to be equipped with advanced modern healthcare infrastructure. One of the most egregious defects of globalization is that nations have become dependent on imported food from thousands of miles away because it is somehow construed to be cheaper than producing food at home.
Nations exist to foster the continuation of a human culture moored to the conception that human life is sacred. There is no equivalency between servicing debt and safeguarding human life. Money really has no intrinsic value. Banks are mere servicing bureaus of an economy. Governments legitimately create credit to generate future physical wealth to benefit their citizens. When borrowing or lending arrangements fail to benefit society then they should be restructured or cancelled. Such financial reorganizations have been achieved many times throughout history.
PM Abiy has brought to the attention of the world, a profound underlying principle that should govern all national and international policy: the promotion of human life is supreme, monetary instruments are not.
Why the Global Debt of Poor Nations Must Be Canceled
Delaying the repayments to the Group of 20 is not enough.
By Abiy Ahmed, Prime Minister of Ethiopia. Nobel Peace Prize Laureate, 2019
ADDIS ABABA, Ethiopia — On April 15, Group of 20 countries offered temporary relief to some of the world’s lowest-income countries by suspending debt repayments until the end of the year. It is a step in the right direction and provides an opportunity to redirect financial resources toward dealing with the coronavirus pandemic.
But if the world is to survive the punishing fallout of the pandemic and ensure that the economies of countries like mine bounce back, this initiative needs to be even more ambitious.
At the very least, the suspension of debt payments should last not just until the end of 2020 but rather until well after the pandemic is truly over. It should involve not just debt suspension but debt cancellation. Global creditors need to waive both official bilateral and commercial debt for low-income countries.
These steps need to be taken with a sense of urgency. The resources freed up will save lives and livelihoods in the short term, bring back hope and dynamism to low-income economies in the medium term and enable them to continue as the engines of sustainable global prosperity in the long term.
In 2019, 64 countries, nearly half of them in sub-Saharan Africa, spent more on servicing external debt than on health. Ethiopia spends twice as much on paying off external debt as on health. We spend 47 percent of our merchandise export revenue on debt servicing. The International Monetary Fund described Ethiopia as being at high risk of external debt distress.
The dilemma Ethiopia faces is stark: Do we continue to pay toward debt or redirect resources to save lives and livelihoods? Lives lost during the pandemic cannot be recovered; imperiled livelihoods cost more and take longer to recover.
Immediate and forceful action on debt will prevent a humanitarian disaster today and shore up our economy for tomorrow. We need to immediately divert resources from servicing debt toward responding adequately to the pandemic. We need to impede a temporary health crisis from turning into a chronic financial meltdown that could last for years, even decades.
Ethiopia must spend an extra $3 billion by the end of 2020 to address the consequences of the pandemic, while our balance of payments is set to deteriorate. Increasing health care spending is essential, irrespective of debt levels, but we have less money on hand, and much of it is due to creditors.
A moratorium on bilateral and commercial debt payments for the rest of this year will save Ethiopia $1.7 billion. Extending the moratorium till the end of 2022 would save an additional $3.5 billion.
Low income countries can use the financial resources freed up by cancellation or further deferment of debt repayments to invest in our battle against the pandemic, from providing necessary medical care to our citizens to ameliorating our financial difficulties.
In October, the I.M.F. reported that the five fastest-growing economies in the world were in sub-Saharan Africa, which includes Ethiopia. In early April, the World Bank reported that sub-Saharan Africa would face its first region wide recession in over 25 years and the region’s economy could shrink by as much as 5.1 percent.
This is not a result of bad policies, mismanagement or any other ill typically associated with developing economies. The recession will be the product of the coronavirus outbreak.
Preventing or at least minimizing the recession is critical to maintaining years of hard-won economic gains across the continent. The current moratorium in bilateral debt collection until the end of the year will help, but it won’t be enough, given the gravity of the challenge we face.
The moratorium must be extended until the coronavirus health emergency is over or canceled altogether. The creditors need to do this unconditionally.
Official bilateral creditors are no longer the principal source of external debt financing for many developing countries. Private-sector creditors, including investment banks and sovereign funds, are. They should play their part in the effort to rescue African economies from permanent paralysis with a sense of solidarity and shared responsibility. It would help avoid widespread sovereign defaults and chaos in the market.
And it would be morally indefensible if resources freed up from a moratorium in bilateral debt collections were to be used to pay private creditors instead of saving lives.
Most of our countries managed to borrow funds on the back of solid economic performance and highly promising and evidence-based development programs and trajectories. Nobody foresaw this promise being derailed by a once-in-a-century event such as the coronavirus pandemic.
Under these circumstances, there is no room for traditional arguments such as moral hazard. Low-income countries are seeking relief not because we squandered the money but because we need the resources to save lives and livelihoods.
It is in everybody’s enlightened self-interest that the borrowers be allowed breathing space to get back to relative health. The benefits of rehabilitation of the economies of the hardest-hit countries will be shared by all of us, just as the consequences of neglect will harm all of us.
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
