World
Impact of African Policies on Development of Infrastructure Projects, Emergence of Debt-Trap and Neo-Colonialism
By Kester Kenn Klomegah
In this interview taken by Kester Kenn Klomegah for Eurasia Review, Dr. Frangton Chiyemura, a lecturer in International Development at the School of Social Sciences and Global Studies, The Open University in the United Kingdom, discusses the impact of African policies on development and realization of infrastructure projects, the possible of running into “debt-traps” and the emergence of “neo-colonialism” in Africa. Here are the interview excerpts:
Early December, you held discussions and shared your research on how African leaders influence the modality of engagement and negotiation process with China. What were the key points you discussed with the audience and participants who attended?
First of all, I was invited to share my research findings with Oxford University China-Africa Network (OUCAN). OUCAN engages with researchers, think tanks, policy makers involved in Africa-China relations. My talk was part of this initiative to share research and evidence-based findings and conclusions on Africa-China relations.
My talk was based on my completed PhD research project where I investigated how the Ethiopian government exercised agency – defined as the ability to shape, control and influence, when engaging with the Chinese in the context of wind energy infrastructure. The key point was that the Ethiopian government was able to broker, negotiate, structure, implement and manage Chinese involvement in Adama 1 and Adama 2 wind farms.
The audience was quite engaging and wondered how the Ethiopian government was able to exercise agency as compared to other African governments dealing with the Chinese. There are several factors which make Ethiopia to have such clout when dealing with the Chinese as compared to other African countries. Such factors are not only limited to the governance and leadership model of the government especially under Meles Zenawi and Hailermariam.
Secondly, it relates to the geographic location of Ethiopia, which makes it a stabilising force in volatile East African region. Ethiopia, has a unique advantage, as it is the diplomatic hub of Africa – hosting the African Union (AU) and other international organizations. This adds weight to Ethiopia when negotiating with external powers.
What are the general perceptions and attitudes toward this kind of relations? How do the political and business elites, interpret the benefits of determining concrete directions of investment in Africa?
Both Ethiopian and Chinese governments see the relations as win-win. This comes at the backdrop of strong relations at the political party to party level. In the case of my research I conducted, I can confirm that the Chinese Communist Party has very strong relations with the then Ethiopian People’s Revolutionary Democratic Front. In fact, during my research, I found out that the corporate deals are informally negotiated at the party to party level before they are transferred to the government level for formalization. There seems to be a seamless connection between the ruling party and the government, and any decisions reached at the party level are by extension seamlessly binding on the government.
How would you explain neo-colonialism by foreign players in Africa? What is it and what foreign (external) countries are referred to as neo-colonisers, in your view?
Neocolonialism argument is present in Africa-China relations especially proposed so by scholars who come from a neo-Marxian epistemological grounding. Neocolonialism can be seen as a new form of domination, plunder and exploitation using clandestine and economic statecraft. Of course, there could be some hints or pointers to suggest neocolonial tendencies, but I believe such claims should be levelled on case by case basis, and there has to be concrete evidence to suggest that way. That said, I think we have to be careful to scrutinize where such claims of neocolonialism are coming from, and potentially scrap beyond the surface to establish the motivations and interests for spreading or proposing such claims.
In my opinion, I believe there is no free lunch in the world, African countries should enter into partnerships based on their strategic interests and an understanding of what the partners can provide or deliver. Secondly, every African country should do a comprehensive evaluation of the structure and, the terms and conditions of their engagements with foreign powers. By so doing, this will eliminate the chances for the emergence of claims of neocolonialism. Instead of extending the blame to someone elsewhere, Africa needs to do its homework especially on the implementation and monitoring aspects of the deals. Africa has some of the best regulations and standards, but the problem lies in implementation and monitoring.
Without doubt, Africa needs investment in infrastructure, agriculture and industry, and in many other sectors. Despite negative criticisms, what admirable roles is China playing here, we are talking about working towards the Sustainable Development Goals (SDGs) in Africa?
China is playing a huge role in infrastructure financing and development. For example, available evidence suggests that between 2000 and 2017, China provided about US$143 billion worthy of loans to African governments. This has come quite handy especially given the shortage of finance to build the much-needed infrastructure targeting the SDGs.
In terms of trade, China became Africa’s trading partner in 2009, and two-way trade volume reached its peak in 2014 at the value of US$215 billion. Further, in 2017, it was estimated to have reached about US$148 billion. Of course, trade transactions still remain unbalanced in favour of China. In addition, between 2000 and 2017, transport (US$38.1 billion), power (US$30.1 billion) and mining (US$19.1 billion) ranked respectively as top three sectors that have received the lion’s share of Chinese loans in Africa.
What is your interpretation of debt-trap most often discussed in various platforms and leveled accusations on China? But tangible infrastructure have been built with these loans in many African countries
Interestingly, I don’t believe in this debt-trap diplomacy. First of all, it does not make any business sense that the Chinese will design a project targeting ‘failure’ so that they can control or pull the strings of a particular country. Second, most of the so-called assets that the Chinese are poised to be targeting to run are very complicated, messy and at times quite straining for the Chinese to dirty their hands. Therefore, it doesn’t make any sense for me.
That said, I would not refer to it as ‘trap’ but as merely debt and the consequences associated with that. What that implies is that, for example, in the power sector, African requires on average more than 5 billion worth of investment per year for the next 10 years to address this challenge. Inevitably, part of the money will come from debt financing. For me, I am not really worried about ‘productive debt’ – defined as any money borrowed to invest in a project that has the ability to boost economic growth and at the same time, generate a revenue stream that will pay back the loan. I would be worried about countries that borrow to build, say, a presidential palace, a stadium, or to pay salaries. That type of borrowing for me is bad – its destructive and unproductive borrowing, and that must necessarily stop.
I have to disagree with the assertion that China is debt-trapping Africa. Of course, there are some African countries that are in debt distress situation, others have high risk of being in distress, but the contributions of Chinese finances towards that leave much to be desired. For example, countries such as Chad, Sao Tome and Principle, South Sudan are in high debt distress but the contributions of the Chinese towards that is very insignificant.
We also have some countries like Ethiopia, Cameroon and Ghana where the Chinese hold a substantial share of the debt, but those countries are not in debt distress, although they are high risk of debt distress. You will be surprised that according to World Bank, Africa’s debt to China is less than 23%, compared to what Africa owes to private lenders (32%), and multilateral institutions such as World Bank, IMF etc. (35%). Sometimes, I see the hypocrisy of the West – with whom Africa has substantial debt, demonizing the Chinese on debt-trap diplomacy.
In your expert view, what are the key challenges and problems facing Chinese investors in Africa, what are your suggestions how some aspects of the relations be improved between Africa and China?
Of course, like any other relations, Africa-China engagements have their own challenges which need to be worked on to ensure there is mutual benefit and win-win situation. Some of the challenges relate implementation of regulations and standards by African governments when dealing with the Chinese. The issues lie not in regulations, but for me in the implementation and enforcement. This is the first aspect that needs to be addressed by African governments, especially in the infrastructure sector.
The second challenge relates to peace and security. Some of the African countries are in conflict situation or are, at least, under terrorist threat. This threatens some of the Chinese businesses and enterprises.
Third, the unbalanced nature of trade between China and Africa create room for emergence of neo-colonial arguments and such needs to be addressed immediately. Some of the challenges are minor, these include language barriers, differences in culture and work ethics. These can easily be resolved.
The fourth and final is about in some African countries lack policy certainty and stability which negatively impact on Chinese long-term business planning. Such countries include Zimbabwe where there has been of note currency uncertainty, policy uncertainty and even regulatory uncertainty. This impacts on long-term Chinese business interest.
By Kestér Kenn Klomegâh
At the plenary session under the theme “Development Through Access to Global Markets” organised during the first International Transport and Logistics Forum held in St. Petersburg, both Russian and African speakers have acknowledged, in their high-quality presentations, the importance of fostering understanding of transport innovations, shifting investment and the possibility of addressing current infrastructure challenges for economic growth.
In promoting comprehensive cooperation in the transport and logistics sphere, Deputy Minister of Transport of the Russian Federation, Dmitry Zverev, stressed that the African continent is one of the fastest-growing regions of the world, demonstrating an average GDP growth rate of 4.5% per year.
According to expert projections, by 2050, Africa’s population will reach 2.5 billion people. To ensure logistical links, it is necessary to build a clear and understandable dialogue with partners, working simultaneously at two levels: at the level of governments, through intergovernmental agreements, and at the level of co-business partnerships. Russian transport corridors guarantee the stability of supplies. Today, there are issues of food security, fertiliser supply and formation of new chains, and other emerging geopolitical challenges facing Africa.
As the guest/main speaker, Zverev explained that Russian companies such as FESCO, RZD, GLONASS and Avtodor are actively involved in this process. This is a unique experience sharing technology and infrastructure solutions in significant volumes. “And frankly, that’s an important image distinction of Russia: we’re not just exporting or selling something – we’re offering technologies and cooperation. Together with technologies, we provide training and prepare national personnel who will work on their transport infrastructure in the future,” asserted Zverev.
Minister of Energy and Infrastructure of the United Arab Emirates, Suhail Mohammed Al Mazrouei, spoke of his country’s decision to invest significant money in the development of its railway infrastructure, with work already underway to connect to Oman by rail and open up new opportunities for freight transportation to Africa and Asia.
“We continue to invest in the development of our country’s logistics network and alternative routes. Russia is an important exporter of raw materials, and development in its regions will contribute to economic growth across the globe. Central Asia is also emerging as a key player, and we are investing in the region’s infrastructure and connecting China to the global economy through Russia and the Middle East,” he said.
Minister Delegate for Maritime Economy of the Ministry of Maritime Economy, Fisheries, and Coastal Protection of the Togolese Republic, Kokou Edem Tengue, spoke of the importance of understanding the African perspective on changing maritime routes as the situation around the Suez Canal and the Strait of Hormuz creates new opportunities for West Africa.
The Port of Lomé, the largest container port in Sub-Saharan Africa, handles approximately 30 million tonnes of goods annually, and its importance for the region is difficult to overstate. “We are actively working with Mali, Burkina Faso, and Niger; the Port of Lomé is a key logistics hub for the landlocked nations of the Sahel,” he said. “It should be noted that Africa relies on chemical fertilisers and grain produced in Russia. We believe that the Port of Lomé could be a part of new sea routes between Africa and Russia.”
In his speech, Minister of Transport of the United Republic of Tanzania, Makame Mnyaa Mbarawa, reported on the active modernisation of the Dar es Salaam port. Previously, the depth of the water was 9–12 meters; now it has increased to 12–15 meters. An increase in the number of operators operating in the port is planned. Thanks to these measures, cargo turnover increased significantly, and ship handling times decreased from 10 days to 2–3. This is an important achievement, after all, speed is a key factor for investors.
However, the port cannot function in isolation; it needs modern rail infrastructure. Tanzania’s government is leading the construction of a new railway to Kigoma, and then into Burundi and south, creating a reliable transportation artery. Dar es Salaam will become a gateway to Burundi, Rwanda, Malawi and Zambia, which depend on cargo flow through this port. Therefore, the development of the port and associated railway is of strategic importance in the region.
“In parallel, the modernisation of the TAZARA railway is going on – a historic artery that requires an upgrade. The private sector is actively involved in this work. After revitalisation, this line will become a key link between Dar es Salaam port and Zambia, he stated. The Government of Tanzania will make every effort to implement these projects and will work closely with the private sector. We invite Russian companies – both state and private – to participate in logistics projects and port infrastructure modernisation.”
As far as road safety in Niger is concerned, the country is facing various challenges that require finding ways to improve the situation, according to the Speaker from Niger, Abdurakhaman Amadou. Within the framework of the discussion, he also noted that an important step was to upgrade the car park and road network. As Niger has no access to the sea, the emphasis is on road traffic to ensure the country’s supply.
“We have access to the port of Lome in the Togolese Republic, which remains neutral towards us. However, the Caton port is closed for us, which created serious difficulties as 80% of our exports and imports passed through it. Recently, the situation has started to improve due to the construction of a railway by Nigeria, which will provide us with access to its ports,” Abdurakhaman informed.
In addition, diplomatic relations with Algeria have been restored after a long hiatus, which opens an exit to the Mediterranean. The conference of Islamic states confirmed the intention to build a grand railway linking Dakar and Djibouti across the entire continent from west to east. This railway will partially pass through Niger, which will be an important step in the development of the region’s transportation infrastructure.
President Vladimir Putin, in a message to participants, organisers, and attendees of the International Transport and Logistics Forum, says that Russia is ready to share its experience through joint science and technology programmes and, of course, by training specialists able to ensure the development of transport and logistics in the 21st century, using a new technological foundation. The Transport and Logistics forum was held for the first time on April 1-3 in St. Petersburg, the second-largest city in the Russian Federation.
By Kestér Kenn Klomegâh
The Arab Republic of Egypt, a country spanning the northeast corner of Africa and the southwest corner of Asia, has a highly strategic location and attracts multifaceted interests of foreign players. For decades, Russia has established diplomatic relations with Egypt and has consistently sustained diverse ties with this country. It is no secret that Russia’s lust for the region is primarily due to the strategic importance of the Mediterranean Sea for investment and economic cooperation with the Maghreb region.
Determined to strengthen, particularly, economic cooperation, Russian President Vladimir Putin has maintained regular contacts with his colleague, President of Egypt, Abdel Fattah el-Sisi, mostly discussing both bilateral cooperation and broader regional developments. The current world’s geopolitical development, for instance, the United States-Israeli war on Iran in the Middle East, constitutes one theme both leaders frequently review, attempting to find long-term solutions.
On April 2, Putin met with the Minister of Foreign Affairs, Emigration, and Egyptian Expatriates of the Arab Republic of Egypt, Badr Abdelatty, in the Kremlin – the seat of Russia’s presidency. In attendance during the official talks on the Russian side were Foreign Minister Sergei Lavrov and Presidential Aide Yury Ushakov, while Egypt was represented by Ambassador Extraordinary and Plenipotentiary to the Russian Federation Hamdy Shaaban. Ultimately, there is no need to overstate the importance of this meeting.
Russia’s footprints are expanding in Egypt, highlighting the growing industrial investment and the strengthening of bilateral manufacturing ties by undertaking projects to ensure energy security. At the same time, maintaining regular dialogue remains very important for both leaders.
Putin, speaking with the three-member delegation in the Kremlin, underlined the fact that there are many promising initiatives underway, many of which are already being implemented. He has previously spoken in detail about the construction of a nuclear power plant and the construction of an industrial zone, and over ten major Russian companies have expressed interest in participating in this project.
Nuclear Plants in El-Dabaa, Egypt
The construction of nuclear plants in the city of El-Dabaa, about 320 kilometres northwest of Cairo, the capital of Egypt. It is the first nuclear power plant in Egypt, and will have four VVER-1200 reactors, making Egypt the only country in the region to have a Generation III+ reactor. On November 19, 2015, Egypt and Russia signed an initial agreement, under which Russia agreed to build and finance Egypt’s first nuclear power plant. These are now being carried out, not as a charity project, but with a loan of $28 billion. According to reports, Russia will finance 85% as a state loan of $25 billion, and Egypt will provide the remaining 15% in the form of instalments. The Russian loan has a repayment period of 22 years, with an annual interest rate of 3%.
At the meeting, Putin also raised the construction of an industrial zone in Egypt. There are many appealing and related opportunities in this, regarding having an industrial zone to be located on the banks of the Suez Canal. The industrial zone is also entering a new phase, as Russian auto-manufacturing enterprises are advancing distinctive plans to expand local vehicle production, reinforcing the country’s role as a regional manufacturing hub. The move reflects broader economic linkages between Russia and Africa, particularly in industrial development and supply chain integration.
Conveying Greetings and Reviewing the Middle East Situation
Naturally, the situation in the region remains a shared concern, according to Putin, and further hope that the ongoing conflict will be promptly resolved. “As you know, President Trump also addressed this issue yesterday. Let me reiterate that we are prepared to make every effort to help stabilise the situation and, as they say in such cases, return it to normal,” he stressed during the meeting. In this context, it is particularly important to know Egypt’s assessment as a key country in the Middle East.
Putin reminded the delegation of another Russia-Africa summit, which is planned for October 2026. With high hopes that Egypt will be represented by a strong, high-level delegation. Should the Egyptian President’s schedule allow, he would, of course, ahead of the summit, be very pleased to welcome him to Moscow. Jointly chaired by Vladimir Putin and Abdel Fattah el-Sisi, the first Russia-Africa summit, an important acute phase of the developments with Africa, under the motto of ‘For Peace, Security and Development’, was held for the first time in October 2019, in Sochi, a city located on the Black Sea coast. The idea to hold a Russia-Africa forum was initiated by President Putin at the BRICS (Brazil, Russia, India, China and South Africa) summit in Johannesburg in July 2018.
The head of the Egyptian Foreign Ministry, as traditionally expected, conveyed greetings from President El-Sisi to the Russian president and handed over a written message. President el-Sisi places great value on all aspects of the bilateral cooperation, and is extremely grateful for constructive collaboration on the El Dabaa Nuclear Power Plant, which represents a key milestone in the partnership. Despite the challenges, it is evident that the project is moving forward and will be completed by 2028.
In summary, as Egypt and Russia are reliable and time-tested partners, Putin plans to promote strategic projects, particularly in trade, economics, energy, and food security. With over 107 million inhabitants, Egypt is the most populous country in the Arab world, the third-most populous country in Africa, and the 15th-most populous in the world.
By Kestér Kenn Klomegâh
In an interview, Senator Mushahid Hussain, President of Pakistan-Africa Institute for Development and Research (PAIDR), explicitly offers a few important insights into the US-Israeli war on Iran and its implications for BRICS+ and Africa. Here are the interview excerpts:
What’s your interpretation of the US-Israel war on Iran, in the context of developments in the Middle East region?
The US-Israel illegal and unwarranted war on Iran was spearheaded by [Benjamin] Netanyahu (Prime Minister of Israel) and actively supported by [Donald] Trump (President of USA) as a Joint Operation with three fundamental goals: a) decimate the Islamic Revolutionary Regime; b) reshape the Middle East as part of Zionism’s ‘Greater Israel’ Project; c) preclude any possibility of establishing a Palestinian State with Jerusalem as its capital.
What is your assessment of Iran’s joining BRICS+ in 2025, China’s and Russia’s roles as members of this association, in this US-Israel war with Iran?
China and Russia have played, by and large, a low-key diplomatic role in supporting Iran but without any active political initiatives. BRICS is divided from within, as India is keen to curry favour with the USA and avoids close association with BRICS since the time that Trump attacked BRICS last year. But China & Russia are clear political beneficiaries of the war as American prestige is at an all-time low, having got entangled in an unwinnable war, resulting in weakening of the US ‘sole superpower’ image.
As an Asian expert, how would you characterise Africa’s reactions? And do you think that reactions were objectively authentic, basing perspectives broadly on Arab and Middle East contributions to Africa’s development?
Africa’s reactions to the war are primarily through the prism of the Global South, viewing Iran as resisting American-Israeli hegemonic designs, as, for example, manifested in two examples: South Africa’s rejection of American pressures to wean South Africa away from its support for Iran. Plus, Somalia joined Pakistan and China in supporting the Russian resolution in the UN Security Council seeking an immediate ceasefire and negotiations to halt the War, despite strident Western/US opposition to the Russian resolution.
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