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The News Feed is curated by CGSP’s editors in Asia and Africa.

Japan the EU Sign an Ambitious Deal to Build Infrastructure in the Developing World With an Eye on Countering China

JOHN THYS / AFP
Japan and the European Union signed a so-called “connectivity partnership” to build infrastructure and set development standards in joint projects around the world. While neither the agreement nor the leaders from either ...

Chinese Galamsey and the Illegal Lure of China’s Gold Rush

CRISTINA ALDEHUELA / AFP
Some 50,000 Chinese migrants are said to have flocked to Ghana to stake a claim in the country’s illegal gold mining rush, with dire environmental, economic and social consequences. Ghana’s tradition of ...

World Bank: China Sinks Further Into Debt While Investors Seem to Love Buying African Sovereign Bonds

On average, the external debt burden of low and middle-income countries remains moderate. The ratio of external debt to GNI averaged 26 percent at the end of 2018, unchanged from the prior year ...

Aubrey Hruby: Africa Already is a Battleground in the U.S.-China Trade War

Atlantic Council Africa Center senior fellow Aubrey Hruby explained in a recent interview at the Concordia Summit in New York that Africa is a new front in the ongoing U.S.-China trade war but ...

Lingan University in Hong Kong to Offer Graduate Degree in China-Africa Studies

Lingan University in Hong Kong will offer one of the world’s first graduate degrees in China-Africa studies. This one year program starts in the 2020 academic year and will be embedded within the ...

Export, Employment, or Productivity? Chinese Investments in Ethiopia’s Leather and Leather Product Sectors

ZACHARIAS ABUBEKER / AFP
In a new working paper published on the China-Africa Research Initiative at Johns Hopkins University, prominent China-Africa professor Tang Xiaoyang from Tsinghua University in Beijing highlights the role of ...

Understanding China’s Belt and Road Infrastructure Projects in Africa

AFP / Yasuyoshi CHIBA
David Dollar, senior fellow in the John L. Thornton China Center at the Brookings Institution, challenges a number of the prevailing themes common in US and European capitals about China’s Belt and Road ...

We Focus a Lot of Attention on African Countries Involved in China’s BRI, But What About Those Who Aren’t?

40 out of 55 African countries are members of China’s Belt and Road Initiative (BRI) club, affording some of them preferential access to Chinese credit lines and infrastructure development spending. And for the ...

Huawei Cancels Mate 30 Pro Launch in South Africa

The latest indication that U.S. sanctions against Chinese telecom giant Huawei are having impact comes today from South Africa where the company announced that it will postpone the launch of one of its ...

Survey: Favorable Views of China Fall in U.S., Europe and Canada but Rises in Africa & Middle East

It’s probably not a surprise to most that public opinion of China fell sharply in North America and Western Europe due largely to trade disputes and the ongoing saga over the legal fate ...

AfDB President: “Africa Has Absolutely No Debt Crisis”

ISSOUF SANOGO / AFP
The Chinese are often accused of fueling a debt crisis in Africa due to excessive lending. While are certainly worrisome levels of debt in some countries, particularly Djibouti, Zambia and Kenya among ...

U.S. Army Panel Discussion Explores Cultural and ‘Soft Power’ ‘Influences’ of China, Russia, and France in Africa

“Cultural and ‘Soft Power’ ‘Influences’ of China, Russia, and France in Africa” was the topic of the U.S. Army Command and General Staff College’s Cultural and Area Studies Office (CASO) first presentation of ...

Chinese Company Bids to Buy One of East Africa’s Largest Cement Companies

Chinese building materials manufacturer Huaxin Cement Company is bidding to buy ARM Cement’s Tanzania subsidiary, Maweni Limestone Ltd., for $116 million, according to a report in Construction Kenya. The deal, still ...

Financing the Future of the Belt and Road Initiative in Africa

The London-based think tank Overseas Development Institute convened a panel discussion this week to explore how China plans to finance future development along its Belt and Road Initiative (BRI). This discussion is ...

Analysis from Cobus van Staden

BRICS Announces Numerous New Initiatives

The BRICS group wrapped up its two-day leaders’ summit in Rio de Janeiro on Monday. The summit’s final communique is a 16,000-word doorstop that covers numerous issues from economics to education.
The communique avoids any direct mention of the United States, and references to “unilateralism” and other coded criticism are also relatively scarce. Rather, the communique keeps the focus on the BRICS’ vision of the strengthening and reform of the global multilateral system ...

China Remains Top Troop Contributor to UN Peacekeeping Ops in Africa Among Permanent Five Security Council Members

Some new data is now available regarding Chinese military and police forces who now operate under UN command in African peacekeeping operations.

China is also the second-largest contributor to UN's peacekeeping budget, accounting for 15.22% of the $7 billion 2019 budget, up from 10.28% in 2018.

Read the full China Daily article here.

The Chinese Mobile Phone Company That Dominates in Africa is Now Worth $4 billion

The Shenzhen-based parent company of the hugely popular Tecno brand of phones in Africa went public this week and raised $395 million dollars in an initial public offering on Shanghai’s brand new NASDAQ-like ...

Florida Governor Calls China an “Adversary” Determined to Control Resources in Africa

Florida governor Rick Scott is by no means an important voice on foreign policy matters but he does offer some insight here on how a lot of senior US politicians now consider China to be an "adversary" who's determined to exert influence around the world.

It is interesting nonetheless to see how an issue like China's engagement in Africa is now making its way into the broader political discourse in the United States about China.

Read the transcript of Governor Rick Scott's full statement on China on the Florida Daily website.

Kenyan Borrowing From Japan Surges as Chinese Lending Slows

New data from the National Treasury in Nairobi revealed a dramatic surge in borrowing from Japan, up 162% to more than $1.3 billion during the period of June 2018 to June 2019. The increase in Japanese loans comes as China is slowing its lending to Kenya. "China’s bilateral loans to Kenya, which stood at $6.4 billion by June had only grown 16 percent from $5.5 billion in the same period last year," reported Kenya's Business Daily newspaper.

Read the full report here on Business Daily.

Sinohydro Stops Work on Zambia Hydroelectric Dam

Citing "difficulties beyond its control" (translation: they haven't been paid), China’s state-owned Sinohydro has stopped work building the 750mw Kafue Gorge hydroelectric dam in Zambia, dealing a major blow for the country's drive for energy self-sufficiency and the livelihoods of thousands of workers on the project.

The Kafue Gorge Lower Power Station (see graphic above) was among a number of Chinese-funded energy projects underway in Zambia. In this particular case, the Kafue plant is funded through a public-private partnership (PPP) between the Zambian government and the country's power company ZESCO and financed through a $2 billion loan from China's Exim Bank.

Read the full article on Afrik21.

The Top 5 Things China and Africa Buy/Sell from One Another

In an article that recently appeared in the Paris-based magazine The Africa Report, Andrew McGregor, Managing Director of the independent research organization Who Owns Whom, and Marthinus Havenga, Director of Cathkin Consulting, provided some interesting data on the top five export and import categories that dominate the bulk of China-Africa trade.

In short, China sells heavy equipment and other machinery to African countries and in turn, buys a lot of natural resources. While that's not a tremendous surprise, it is interesting to note the volumes and how they've changed between 2001 and 2018.

Read the full article on The Africa Report website that includes a number of other compelling charts and data points.

Russia and China Are Motivated by Totally Different Incentives in Africa

Russia is stepping up its engagement in Africa with a new focus on trade. Although Russia does considerably less trade with Africa than China, less than a tenth the volume, in fact, it nonetheless remains an important actor on the continent. Although Russia and China are often put together as representatives of Africa's new trading partners, breaking the hold that the U.S. and European countries long had, they are different in one fundamental way.

Charles Robertson, Global Chief Economist at Renaissance Capital, explained that while China needs to buy Africa's resources, Russia does not. The Russians have sufficient supplies of oil, gas, and timber while lacking China's industrial capacity that depends on raw materials to build the phones, cars and countless other products we all buy from the Chinese.

Read the full article in today's Southern Times. You can also follow Charles Roberton on Twitter at @RencapMan.

Niger, China Agree to Build 2,000km Oil Pipeline

China's oil ambitions in Niger clearly appear to be on the rise. The two sides agreed this week to build a massive, hugely ambitious new 2,000-kilometer pipeline that will transport crude from the landlocked West African country to the port of Seme in Benin, according to a report by the French news agency AFP.

AFP reports that the pipeline is expected to take approximately three and a half years and $4.5 billion to complete.

The pipeline announcement comes just a couple of months after the Niger government agreed to re-draw the boundaries of the Termit and Tin-Toumma nature reserve, one of Africa's largest protected wildlife zones, to accommodate an agreement with the China National Petroleum Corporation to explore three oil blocks that it had purchased.

For more on that story, listen to a recent Q&A with journalist Chloe Farand from Climate Home News in London who broke the story in the English-language news media:



Rwanda Attracting More Chinese & HK Apparel Investment

C&D factory in Rwanda that currently employs 1,200 workers. Photo via Just Style.
It’s interesting how two African land-locked countries are emerging as the continent’s leading destination for Asian apparel makers looking to offshore, or “delocalize” their China manufacturing operations. Both Ethiopia and Rwanda are emerging ...

Amid Mounting Chinese Debts, “President Lungu is Running Out of Options.”

A bombshell report in Africa Confidential this reveals that Zambia has borrowed significantly more from Chinese companies than previously reported and now those Chinese creditors are not in much of a mood ...

Huawei’s Share of the African Smartphone Market Declines Due to U.S. Pressure

While Huawei dominates Africa’s telecom networking market, its share of the booming smartphone market has always lagged behind other Chinese competitors, namely Shenzhen-based Transsion who controls more than 50% of the African market. ...

China-Zimbabwe Sign ICT MoU Where China Will Basically Build Out the Country’s Entire Network

Zimbabwe's Information Communications Technology Minister Kazembe Kazembe and China's Vice Minister for IT took time got together on the sidelines of International Telecommunications Union (ITU) Telecom World 2019 that is underway in Budapest, Hungary to sign a comprehensive MoU on bilateral ICT cooperation, according to a report in the Zimbabwe Herald.

When you look at the scope of work that's outlined to be done by the Chinese in Zimbabwe, it's well, pretty much everything.

If this is MoU is realized, China will have effectively built the entire communications network in Zimbabwe.

The challenge for other countries competing with China in the ICT space, in Africa and elsewhere, is that it's difficult to deliver the breadth that the Chinese can offer -- not to mention that every single item proposed in this MoU will also likely coming with generous Chinese government-backed loans.

Buying a Train Ticket on Ethiopia’s New SGR Is Not as Easy You Might Imagine

Journalist Ismail Einashe tried to buy a ticket on the new Chinese-funded/built standard gauge railway (SGR) in Ethiopia to travel from Addis Ababa to Dire Dawa. In nearby Kenya, buying on their SGR is a pretty straightforward transaction, as it should be. Not in Ethiopia, though, according to Einashe's experience.

There's no online service, which is more difficult lately given the regular politically-motivated internet outages, no phone reservation system and even at the train station itself it's not possible.

Braving rain, mud and seemingly endless aggravation, Einashe, not surprisingly just gave up.

[mepr-show if="rule: 7733"] Read his comical, albeit frustrating account here: [/mepr-show]


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[mepr-show if="rule: 7733"]There's a tragedy in stories like this that are often overlooked in the news coverage and social media commentary about the SGR lines in both Kenya and Ethiopia. Given the huge risks that both countries have taken in borrowing billions of dollars to build these massive infrastructure projects, to hear that they are not being properly managed and well-executed is concerning. [/mepr-show] 

[mepr-show if="rule: 7733"] Railways, even in societies with good governance, are difficult businesses to run, much less in countries like Ethiopia where management is often far less experienced and operational inefficiencies are commonplace. [/mepr-show] 

[mepr-show if="rule: 7733"] So, the next time you hear a discussion over whether China has loaded Ethiopia up on too much debt, consider Einashe's inability to buy a ticket on a train built with those loans and whether Ethiopia is effectively managing its investments.[/mepr-show] 

Kenya’s Appetite for Chinese Loans May Finally be Starting to Wane

During a meeting last week with Yang Jiechi, Chinese president Xi Jinping's special envoy for Africa and one of Beijing's most senior foreign policy officials, Kenyan president Uhuru Kenyatta gave one of the first indications that the mounting pressure over his country's rising debt levels may be having an impact. The Kenyan president told the Chinese emissary that he wants the China's private sector to become more focused on investing in Kenya and for the Chinese market to be more accessible to Kenyan exporters.

Yang and other Chinese officials are likely quite receptive to this message from Kenyatta and other African leaders given the pressures in Beijing to focus more on their investment in Africa on projects that are financially feasible.

Similarly, in Kenya after Yang's visit, a spokesperson for China's ambassador to Nairobi, Wu Peng, echoed that message by reiterating that Beijing remains committed to investing in Kenya as part of China's ambitious Belt and Road Initiative but is only interesting in pursuing projects that are economically viable.

The Nation Media Group's Senior Diplomatic Affairs Writer, Aggrey Mutambo, has more on the recent discussion between Kenyatta and Yang including details on Kenya's waning appetite for more bilateral Chinese debt.

You can also follow Aggrey Mutambo on Twitter at @agmutambo.

Why Using a Zero-Sum Analysis to Compare Japan and China in Africa “doesn’t work”

TONY KARUMBA / AFP
With the Tokyo International Conference on African Development or TICAD, summit coming up this week in Yokohama, there is often a temptation to compare Tokyo’s engagement strategy in Africa with that of Beijing’s. ...
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