The post below is from africanagenda.net, reporting on a punchy fifteen minute speech by Kenyan President, William Ruto, to the African Union Parliament on the disrespectful manner African leaders are treated by the developed sector. (See video). Below that, is a two minute clip of President Ruto discussing the need to conduct trade outside of the dollar denominations.
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
Ethiopian Prime Minister, Dr Abiy Ahmed with Chinese Foreign Minister, Qin Gang, in Addis Ababa (Courtesy of VOA)
For the thirty-third consecutive year, the first foreign trip by China’s Foreign Minister was to Africa. China’s new Foreign Minister, Qin Gang, the former Ambassador to the United States, traveled to Ethiopia, Gabon, Angola, Benin, and Egypt, from January 9 to 16, 2023. In addition to visiting these five African nations he was also invited to meet with African leaders at the African Union and the League of Arab States Headquarters. The stated purpose of the trip was: To deepen the China-Africa comprehensive strategic and cooperative partnership and boost friendly cooperation between China and Africa.
Friendship Remains Strong
Starting in the year 2000, China organized the Forum on China-Africa Cooperation (FOCAC), which meets every three years, alternating between China and Africa. These conferences provide a unique opportunity for African leaders and Chinese President, Xi Jinping, to discuss future economic, cultural, and political collaboration. Contrary to continued efforts by the U.S. to malign Africa-China cooperation, China and Africa have remained steadfast in their shared common interest; the development of their people.
Chairperson of the African Union Commission, H.E. Moussa Faki Mahamat, and Qin Gang at ribbon cutting ceremony at the new Africa CDC. (Courtesy of African Union-au.int)
One of the highlights of Foreign Minister Qin Gang’s visit to Ethiopia, was to inaugurate the new Headquarters of the Africa Center for Disease Control and Prevention (Africa CDC). The new Africa CDC, located outside of Addis Ababa, the capital of Ethiopia, was built by China and given as a gift to Africa.
This is a critically important contribution to Africa, a continent of one and a half billion people, which was given a very low priority for vaccinating against COVID 19, and continuously suffers from a weak healthcare system.
Foreign Minister Qin met with Ethiopia’s Prime Minister, Dr. Abiy Ahmed, and Deputy Prime Minister and Foreign Minister Demeke Mekonnen. He was the first foreign government official to visit Ethiopia following the signing of the peace agreement of November 2, 2022, that ended a two year long war in northern Ethiopia. He expressed China’s support for “Africans in solving African problems in African ways.” This attitude differs dramatically from the U.S. and Europe, who undermined the government of Ethiopia during the war. Foreign Minister Qin pledged to assist Ethiopia in its reconstruction efforts, which are formidable following the terrible damage that the country suffered in fighting to maintain its sovereignty. Additionally, he announced that China will forgive thirty million dollars in Ethiopian debt.
In December 2022, the U.S. convened its first U.S.-Africa Summit in eight years. The unspoken “secret topic” and motivation for the three-day conference was, how to counter China’s growing influence on the African continent.
There are yet to be any “deliverables” from the U.S.-Africa Summit. While the Biden administration seems to be more focused on exporting the “infrastructure of democracy,” China is building and financing more hard infrastructure projects in Africa than the rest of Western nations combined. These projects impact the daily material needs of the African people, which is essential to eliminate poverty on the continent.
China-Africa Trade Not Debt
China’s trade with Africa during 2022 expanded to its largest single year total of $282 billion. China exported $164.5 billion to Africa and imported $117.5 billion over that twelve-month time, which represented an increase of 11% over 2021. From January to November of 2022, U.S. exports to Africa, were $28.5 billion and imports of $38.9 billion for a total trade of $67.3 billion, almost no increase over 2021. Thus, U.S. trade with Africa was approximately one-fourth that of China for 2022. If the U.S. intends to counter or challenge China in Africa, it will have to do a lot more than “exporting democracy.”
As you can see from the chart below the myth spun by Western officials and the media that China is primarily responsbile for Africa’s debt, is simply not ture. This intentionally false allegation has been refuted again and again, but Western governments continue to propagandize Africa nations that China is using a ‘debt-trap’ diplomacy to seize their resources. Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa,
The total outstanding debt for sub-Saharan African nations to foreign entities totals: 454.4 billion USD. China is not even close to being the largest debt holder. China owns 79 billion USD of sub-Saharan Africa’s debt, less than one firth-17%. The debt held by bondholders, the World Bank, and the IMF, equals 286.9 billion USD,-63% of the total foreign debt of sub-Saharan Africa,
Courtesy of Reuters Graphics
Investing in Manufacturing
Contrary to Western propaganda, which accuses China of stealing Africa’s resources, China is actually expanding Africa’s manufacturing sector. This is a vital contribution since African nations suffer from an anemic production capability to add value their natural resources. A good example is the investment by Dinson Iron and Steel Company (DISCO), a Chinese steel manufacturer, who intends to invest in building a lithium battery manufacturing plant in Zimbabwe. chinese firm to manufacture lithium batteries in zim. The Zimbabweangovernment has wisely banned the export of raw lithium. Having its own manufacturing plant, will create jobs and improve the standard of living of Zimbabweans, since mining and export of valuable minerals does not lead to economic growth for the population.
This kind of investment in local manufacturing along with China’s Belt and Road strategy of building infrastructure throughout Africa, is exactly what is needed to assist African nations in creating strong sovereign economies.
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
Map of main corridors of a proposed African Integrated High Speed Rail Network
May 18, 2021
Watch the video below, an comprehensive discussion with Rowland Ataguba, Managing Director of Bethlehem Rail Infrastructure on the African Integrated High Speed Railway Network (AIHSRN). He is a driving force to have AIHSRN up and running in Africa by 2033. For Africa to realize the potential of the newly inaugurated, Africa Continental Free Trade Area AfCFTA, there must be an integrated rail network connecting the major capitals, cities, ports, and regions of Africa. Such an integrated network of freight and passenger transportation is necessary to reverse the dismal amount of trade among African nations, estimated at 15%. With the population of the African continent projected to have almost 2.5 billion people by 2050, the AIHSRN proposal is essential and cannot wait until 2063 as planned by the African Union (AU).
The African Integrated High Speed Railway Network will deliver connectivity across the huge continent via 6 main East-West and 3 North-South corridors, using standard gauge tracks with electric locomotives running at a speed of 160 kilometers per hour. These rail lines will become corridors of economic expansion for manufacturing and agriculture.
As the history of the development of great nations, such as the United States, Russia, and China demonstrate; railroads build nations, traverse continents, link oceans, and create a spine for manufacturing centers. Properly understood, infrastructure is much more than a simple collection of projects. Economic progress is determined by the relative level of the scientific-technological design embodied in the integrated infrastructure platform which undergirds the manufacturing and agricultural sectors of an economy. An individual infrastructure project, such as a railroad, may not yield an immediate profit itself. However, as physical economists like myself know, viable infrastructure projects contribute to increasing the productivity of the labor force, thus enabling the economy as a whole to generate a profit. Massive investments in infrastructure, such as AIHSRN, are essential to industrialize Arica, which is necessary to eliminate hunger and poverty across the continent.
Mr. Ataguba proposes that the entire network be completed in the next 12-13 years. The only way that AIHSRN can be FAST TRACKED is through centralizing the project. He says that too much valuable time has been lost in connecting the railway network, which is indispensable for improving the standard of living of the average African. He emphasizes that this rail network needs to affect the economy today, not tomorrow! Mr. Ataguba understands that for African nations to develop, this quality of infrastructure is urgently required.
AIHSRN will revolutionize African economies in providing standardized, fast, efficient, and safe transport at a far cheaper cost than road.
Once completed, freight and passenger transport across Africa will be transformed. For the first time in history, it will be possible to travel and send freight on a modern railway from: Dakar in Senegal to Djibouti or Pointe Noire; Congo Brazzaville to Dar Es Salaam; Tanzania to Walvis Bay; Namibia to Maputo Mozambique. Traversing the continent from east to west. Likewise, it will be possible to travel the entire length of the African land mass from Cape Town, South Africa along the Indian Ocean to Alexandria in Egypt or from Cape Town to Tripoli in Libya along the Atlantic coast.
For those passionately concerned about securing a prosperous future for Africa; watch this video.
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
The cooperation between Africa and China is a great success in international cooperation. As the traditional friendship between China and Africa becomes stronger and stronger, there is all indication that China-Africa cooperation shall be more forward-looking.
This cooperation is widely regarded as a major success in today’s international system and is widely regarded as a model of mutually beneficial cooperation with constructive and positive significance. China-Africa cooperation is also a model for South-South cooperation.
As a constructive new model, it has promoted the progress of the African development agenda, helped Africa to industrialize, develop economies, reduce poverty and inject vitality into the overall development of the continent.
The Forum on China-Africa Cooperation (FOCAC) has given Africa an alternative to North-South cooperation. It has given an extra voice for developing countries in the international arena. It is of great significance to the realization of the UN Millennium Development Goals.
The economic complementarity between China and Africa is strong and growing. Chinese companies are very active on the African continent. At present, there are more than 2,000 Chinese enterprises investing actively in Africa. They train workers and solve employment problems, increase local taxes and improve the living standard of the people. China’s investment in mining, infrastructure and telecommunications has given an immediate boost to the development of Africa.
At present, the trade volume between China and Africa has exceeded more than 200 billion U.S. dollars. China helps Africa build infrastructure, invest and open factories in Africa, provides Africa with a large number of high-quality and cheap goods. It also buys goods from Africa to promote its economic development.
The development of infrastructures such as highways, railways, and bridges will help the long-term development of African countries. This is the cornerstone for Africa’s development.
Africa has also significantly benefited from increased exports of raw materials to China where there is strong demand. China has promoted the demand for oil, natural gas and other raw materials, which has a direct or indirect positive effect on the economic development of African export-oriented countries.
Some western opinion advocates that China’s manufacturing industry has affected the development of African manufacturing industry. This statement is actually exaggerated. There is little evidence to prove that China’s manufacturing industry has negatively affected the manufacturing industry in Africa.
In fact, it has supported industrial development as already stated. The challenge of African industrial development cannot be attributed to China.
In addition to trade and investment, China also provides assistance in other areas for the development of Africa. For example, China helps Africa to enhance its capability of food security and energy security, develop communication networks and improve medical facilities and participates in peacekeeping operations in Africa actively. Through these measures, China has promoted friendly exchanges between two sides and safeguarded peace and stability in Africa.
We foresee a China-Africa cooperation that will establish cooperative relations in various fields of sustainable development to seek a distinctive and high-quality way for win-win cooperation between both sides and to build a stronger, more effective and more sustainable development partnership.
The world is on tenterhooks waiting for the next moves from the Trump Administration in terms of the draconian tariffs he has threatened to place on China as well as on a number of other countries, including our close neighbors Canada and Mexico. And the question remains for most people: Is he really intent on carrying out the threat (the first tariffs are to take effect on July 6) or is this merely an “in-your-face” negotiating tactic to cut a better deal for the United States? We probably won’t know until the last moment, but a number of things seem to be clear.
