Month: August 2023

BRICS: The Vehicle of Inclusive Development, Tranquillity and Multipolar World

Posted on By Sino Uganda Research Centre

By Allawi Ssemanda

The 15th BRICS Summit is ongoing in South Africa’s city of Johannesburg under the theme BRICS and Africa- Partnership for Mutually Accelerated Growth. The summit comes at a time when the world being tested by challenges such as geopolitical competition, the climate crisis, unilateralism, block confrontation with some countries in blocks promoting own security at the expense of others which critical analysts blame for the ongoing Russia-Ukraine crisis.

This year’s summit theme, gives hope African dream momentum. Almost all the leaders of the grouping which today accounts for 40% of global population and slightly more than 30% of world’s GDP are united and see African allies as equal partners. Also, the group’s success is making many countries court them with hopes of joining and benefiting from inevitable benefits that comes with being a member. More than 40 countries including Nigeria, Ethiopia, Argentina, Saudi Arabia, Iran and United Arab Emirates have expressed interest to join the group. However, BRICS leaders must ensure that the group’s expansion is driven by real reasons and purposeful inclusion by admitting members that align with their “ideal” view of the multipolar world the group wants to build. This means their expansion must be strategic; candidates’ animosity towards the west should never be used as qualification for one to become a member.

This is not to say that the group should not expand. There are more reasons for the BRICS to expand now than ever before. As Chinese ambassador to South Africa, Chen Xiaodong recently observed, “the traditional global governing system has become dysfunctional, deficient and missing in action” while BRICS grouping has stood the test of the time as fierce defenders of international justice.

Also, having countries like Nigeria and Ethiopia as members of BRICS will help amplify African countries voice calling for reforms in the UN more audible. For long, African countries have called for reforms at the UN especially in the formation of the United Nations Security Council UNSC permanent members which African countries view as heavily biased against them.

It should be recalled that in 1945 when it was founded, only four African countries were members. Today, all the 54 African countries are full members of the UN. However, of the 193 member states, only United States of America (USA), United Kingdom, France, Russia and China commonly referred to as the 5P are the permanent members of the UNSC – the organisation’s highest decision-making body. This gives the five countries more powers (veto) when it comes to voting on important issues in the council.

The irony of this is that, Africa whose membership at the UN is close to 28% of the body’s total membership has no major role despite always being the centre of discussion during the council’s work. In 2018 for example, more than 50% of UNSC’s meetings, 60% of their official documents and about 70% of their resolutions contained chapter VII mandates all focused on Africa. This means that without Africa, the UN as a body is arguably incomplete. This is not to say that I don’t recognise the fact that in the UNSC Africa is represented by the so-called A3, a block of three elected African states. It is important to observe that, the A3 countries have no big say at the security council because, none has veto power as opposed to the other five states with permanent membership.

The good news is that all the BRICS founding members c, non is opposed to Africa having a representative at the UNSC with equal powers as it is with the 5P. They are all involved in calling for reforms at the UN including reforming the current financial systems dominated by the Bretton woods institutions which many analysts argue work on whims of the U.S and allies.

Critical analysis of Brazilian President Luiz Inácio Lula da Silva who while defending closer ties with Africa noted that “Brazil is back on the continent it should never have left. Africa offers vast opportunities and enormous potential for growth,” to China and Russia who have been strong advocates of African interests, it is clear that African countries’ interests have strong backing among all the founding members of the BRICS  in their call for reforms in the so-called traditional global governing system.

The current rhetoric among BRICS leaders, there is no doubt that BRICS offers more benefits to Africa than any other grouping today including the G7 which has always promised and when it comes to implementation nothing comes as was the case with their promise during the 2021 G7 summit in Cornwall, England where they promised infrastructure support to African countries under what U.S ruler Joe Biden called “build back better for the world” (B3W) that never materialised before they changed it to another white elephant announced during the 2023 G7 summit in Japan’s city of Hiroshima.

On the eve of the ongoing BRICS summit, Chinese president Xi Jinping published an article in south African major dailies entitled “Sailing the Giant Ship of China-South Africa

Friendship and Cooperation Toward Greater Success” President Xi explained that; “China is ready to work with fellow BRICS partners to act on the BRICS spirit of openness, inclusiveness and win-win cooperation, build consensus on important issues, carry forward our tradition of independent diplomacy, and resolutely uphold international equity and justice. We will urge the international community to refocus on development issues, promote a greater role by the BRICS cooperation mechanism in global governance, and make the voice of BRICS stronger.”

Whether as a group or individual, BRICS countries have in many ways shown their resolve to work with African countries supporting, their social economic development. As President Xi observed in his ‘Sailing the Giant Ship of China-South Africa Friendship and Cooperation Toward Greater Success,’ “I will work with African leaders to bring more active, effective and sustainable development initiatives to Africa, expand cooperation in agriculture, manufacturing, new energy and digital economy, and facilitate Africa’s economic integration, industrialization and agricultural modernization. China will continue to work for substantive progress in African Union’s joining of the G20 this year, and looks forward to a greater role by African countries and the AU in international and regional affairs.”

In conclusion, in all aspects, the BRICS has great potential to grow while helping the entire global south to develop. With their continued push for a multipolar world and calling for reforms in the current global system, the question at the centre is whether the group is willing to overtly challenge the current global system which has arguably given them the platform and more importantly lessons to learn from, or if they will take a step back and fight covertly and and stay fighting within while pushing for the ideal world they dream of. The challenge with the latter is that with this option, they risk to lose their sight through socialisation and thereby abandoning the zeal of building their ideal world.

That said, the future of BRICS and by extension of Africa is bright. With win-win cooperation which BRICS countries support, working together in sincerity will see the alliance growing stronger as the grouping and Africa work together in building of a world with a shared future in the new era for mankind.

Allawi Ssemanda is a senior Research Fellow at the Development Watch Centre

 

CHINA-AFRICA LEADER’S DIALOGUE AT THE BRICS SUMMIT

Posted on By Sino Uganda Research Centre

By Moshi Israel

The 15th annual BRICS summit in Johannesburg, South Africa covers an important theme of BRICS and Africa; Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism. During this summit, the President of China, Xi Jinping will co-chair alongside Cyril Ramaphosa, President of South Africa the China-Africa leaders’ Dialogue as announced by the Chinese foreign ministry.

This dialogue suitably ties into the overall theme of the summit and has the potential to produce serious outcomes for the African leaders that will take part. China is Africa’s biggest trade partner and has strengthened economic and social ties with the continent through the Belt and Road Initiative, FOCAC, South-South cooperation programs, and a plethora of other development programs.

This dialogue is a vital opportunity for the exchange of ideas that could lead to significant changes on the continent. A major priority for African leaders should be a focus on further investment in the transition to digital economies. Africa still lags behind the rest of the world when it comes to the Internet of Things. Key sectors of the African economy such as health, education, transport, and Agriculture would be more productive if digitised.

Many African countries need to take advantage of the Digital Silk Road (DSR); a component of the Belt and Road Initiative (BRI). The DSR is China’s rebranding of its continuous support for technological advancement all over the globe. During the 1990s, Africa experienced a telecommunications revolution and many Chinese firms set their eyes on the continent. The telecommunications revolution was largely due to many African countries liberalizing their telecommunications sectors and upgrading their infrastructure. This development has been driven by the increased use of mobile telephones and broadband for internet access. It is projected that by 2025 there will be about 615 million mobile subscribers in sub-Saharan Africa which is about 50% of the region’s population.

This digital revolution in the telecoms sector has largely been dependent on Chinese firms such as Huawei Technologies, China Telecom, and ZTE which have chipped substantial market share away from non-Chinese companies such as Nokia, Alcatel, Ericsson, and Siemens. Chinese technology firms have played a vital role in building, upgrading, and investing in Telecom’s infrastructure including internet backbone networks, satellites, and undersea cables. These companies offer affordable services and equipment and remain effective and productive.

Since world development is now driven by technology, the digitization of African economies should be higher on the list of priorities when African leaders meet with president xi Jinping. The Digital Silk Road initiative is rarely talked about for instance in a country like Uganda. It is the responsibility of the Ministry of ICT in this country to investigate this issue further and clearly discern opportunities for Uganda’s transition to a digital economy. A push should be made toward isolated individual country technology summits with China’s technology firms, where the youth and other stakeholders are given a chance to engage with these companies.

The citizens in many of the countries that will hold dialogue with the President of China are eagerly waiting for notable outcomes of the summit. It is imperative that African leaders should put the interests of their citizens at the forefront during such impactful deliberations with the continent’s largest trade partner.

Beyond the focus on Digital transition should be a discussion about the need for Africa’s Agricultural products to have a healthy access to the Chinese market. This is naturally conditioned on the quality of products Africans are putting on the market. For instance, the president of Uganda has always championed Uganda as a food basket and advocated for the need for Ugandans to earn from cash crop farming. This dialogue presents a unique opportunity to further this agenda.

Another important issue is that of climate change. African leaders should engage China on the transition to green economies. The latter has been a champion for sustainable development and the fight against climate change and has spent billions of dollars to the cause. A multilateral framework underscoring a combined effort to address climate change issues should be presented by the representatives of African countries during the dialogue. Africa is not the leading polluter in the world but is already suffering the harshest consequences of climate change and global warming. Furthermore, the continent is now faced with the dilemma of industrializing at the expense of the climate or going green at the expense of much needed industrialization and development. However, China could be a reliable partner in striking a balance. Much more investment is required in order for African countries to safely transition to green economies without sacrificing their right to industrialization and economic development.

Finally, the elephant in the room (or not in the room for this matter) should be discussed. This involves the collective west and its reaction to an increasingly pro-china Africa. In an international system based on realpolitik, every country’s interests come first and therefore, partnerships must be formed with this reality in mind. If China is interested in a long-term strategic relationship with Africa, it must offer terms much better and different from the west. And if African countries want to truly benefit from the partnership with China, they must adapt new ways of engaging with china, based on the principles of mutual benefit and placing African interests at the forefront.

The Writer is a Senior Research Fellow with Development Watch Centre

 

Posted on By Sino Uganda Research Centre

By Musanjufu Benjamin Kavubu

Finally, the 15th annual BRICS summit is happening, and it is taking place on the African continent. There has been a lot of talk about it this time as though it’s happening for the first time but that is because of where the world finds itself at the moment. Ukraine-Russia crisis is impacting everything and the BRICS summit is not unique to the fact after all the “R” in the “BRICS” is at the forefront of what the Kremlin has eloquently blamed on what they call NATO’s eastward expansion spree which threatens Moscow’s national and strategic interests. There is no doubt, this ongoing crisis which the west is fuelling pumping arms into Ukraine has changed public opinion about the current World Order which the BRICS sees as biased to them.

BRICS started in 2001 as BRIC and it got its name from a report by Jim O’Neill who was an economist at Goldman Sachs and he predicted then that Brazil, Russia, India, and China would be the world’s leaders economically by 2050 because of the trajectory the four countries economies where taking. In 2010 South Africa joined to form the current BRICS that the whole world is talking about now which analysts argue it puts the G7 on spot especially that unlike G7, BRICS in all ways stands for the interests of the so-called emerging economies while speaking for entire global south.

Russia’s military operation in Ukraine is not the only reason the 15th BRICS summit is making headlines, but global problems like climate change are key to the agenda and also the over 40 requests from countries to join the formation is keeping the West on its heels.

At the moment, the formation is made up of about a population of 3.2 billion humans that can be also termed a labor force and market, a GDP of $ 24.44 Trillion that seems small compared to the population but an average of $ 7,500 GDP per capita is a dream for many in the global south especially in Africa.

At a time when the world is looking for an alternative to the current world order that is shaped by the US dollar the way BRICS operates seems like the best option going forward.  It’s rumored that Egypt, Algeria, Argentina, and Iran are close to membership then it’s a matter of time before everyone jumps onto the formation. Every developing country would desire this kind of forum that offers consultation and cooperation on significant economic and political issues between member countries and seems to be working.

Through the annual BRICS summit like the 15th South of the African continent, we should expect working groups on areas such as finance, trade, investment, science and technology, and health to set up and they are open to even those countries who are just willing to join. These working groups will then continue to meet as they from time to time identify areas of mutual interest and coordinate their efforts to foster inclusive development a major tenet of the BRICS.

As the formation meets on the African continent BRICS fits the current narrative by African leaders of complete independence from the West’s domination. BRICS members agreed at the start and going forward to strive for inclusive economic growth and to eradicate poverty, to fight unemployment, promote social inclusion, promote innovative economic development based on new technologies like blockchain and develop skills of citizens at the same time strongly cooperating with other countries.

Africa has a chance not to leave anyone behind through the BRICS formation since the ground in the group has proven the antithesis of elitism with its original intention of a restructured political, security, and economic outlook of the world. Africa also has conditions that are in line with the founding members of the BRICS for example fastest growing and emerging economies like Nigeria that is seeking membership, low labor costs that is being brain and muscle drained to Europe, favorable demographics of youths, and natural resources. These conditions need economic cooperation and development through multilateralism to have win-win situations at the end of the day.

To Africa, BRICS through the New Development Bank NDB can offer funding for infrastructure and sustainable development projects as it relives the pressure created by the Bretton Woods systems institutions like the IMF and World Bank that recently decided to stop funding in places like Uganda. For those countries that will go on to attain full membership, BRICS has the Contingent Reserve Arrangement CRA which is a financial safety net that provides liquidity support to members in case of balance of payment difficulties.

As AfCFTA works by boosting intra-African trade from 12% to 30% BRICS through Bilateral and Multilateral areas of trade, investment, technology transfer, Cultural exchange, and matters of security the Free trade Area on the continent can be unstoppable. BRICS along AfCFTA with the free movement of people would bring about people-to-people exchange programs and then foster research and innovation. Cultural exchange, enhance economic and social ties within the formation to create countries that can take on the West. Maybe even the International Criminal Court would be restructured and made to make more sense than being a tool for the West.

Apart from offering hope to Africa and the entire global south BRICS is so important that it offers a workable framework that can be exploited for real and true development that is inclusive. With BRICS bringing Africa on board the world Rebalancing will not be just a song but a reality. As Modi of India, Xi of China, Lula of Brazil, Ramaphosa of South Africa, and Putin is being represented by maybe Lavrov, since he has a war to attend to and just survived a mutiny come together BRICS through the NDB can start the process of de-dollarization in Africa where US designed sanctions are used and hurt most.

By Musanjufu Benjamin Kavubu is a Junior Research Fellow at the Sino-Uganda Research Centre.

 

 

 

 

 

 

 

 

 

 

 

 

BRICS STRUCTURE TO DEVELOPMENT MORE RELEVANT TO AFRICA

Posted on By Sino Uganda Research Centre

By Balongoofu Daniel

The steady traction of the emergence of the BRICS in the contemporary global order reflects a potential shift of the global governance structure to a more economic led mechanism of cooperation through trade and the formulation of coordinated political positions on global issues to secure and under guard a collective path to economic development. The BRICS, a bloc that represents emerging economies; Brazil, Russia, India, China and South Africa have gained much traction in the international arena due to their firm positions and structures of engagement specifically favorable for south-south relations, a structure that the global south has upheld to achieving economic development.

This year’s BRICS summit currently underway in south Africa is one of the most followed and widely anticipated political engagements globally due to the blocs’ spread popularity and attraction of interest from over 40 states including the UAE, Ethiopia, Saudi Arabia among others.  The state of turbulence in global governance characterised with war, economic recession and post -pandemic recovery have made this 15th summit a much anticipated one on forging a way through for development. However, I find the bloc’s structure to development a more relevant reality to Africa and the global south as follows,

In this year’s summit’s special mug, a compilation by the south African government highlights the blocs’ special achievements, challenges and way forward in south Africa’s context thus far seeks to  highlight the beauty and advantages of the adopted strategy for BRICS economic partnership that looks forward to increasing access to each other’s markets, promote mutual trade and investments and creating a business friendly environment for investors in all BRICS countries. The authorities in south Africa further highlight that the most important part of this strategy is to diversify the trading of finished products as opposed to raw materials, a strategy that Uganda, Africa and the global south needs to broadly adopt in order to realize home production and control trade deficits.in the same vein, south Africa notes that its exports share to the BRICS countries have recorded strong growth since 2016 and registered a 7.1% per annum on average reaching US 817.6 billion in 2022. The mug further highlights that the principal contributor to such growth was exports to china over the same period.

In light with the AFCTFTA, an economic initiative by the African union that seeks to achieve a liberalised African continental market and to address the challenges of Africa’s low level of participation in the global economy and world trade, the south African authorities highlighted the importance of merging markets and the building of more partnerships with the BRICS under such an initiative. This will not only unlock trade possibilities but also mutually beneficial opportunities for investment and infra structural development. This further underscores a much broader market and   more liberalism in trade and also promote self-reliance through encouraging industrialisation for production. It should be noted that BRICS brings together a 3.27 billion population of people that makes the question of market and diversity a more achievable reality necessary for production.

The relevancy of the New Development Bank (NDB) that the cooperation achieved through availing of funds for development seeks to solve the global south long unanswered question of funding. It should be noted that the bank has catalyses availability of funds for development that so far US$ 32.8 billion worth of developmental projects have been funded using this bank availed financial resources. So far, the funds have been invested in building and upgrading of 820 bridges, building and upgrading of 35000 housing units and the generation of 2800mw of renewable and clean energy. This therefore is a blessing and an alternative source of funding from the IMF and world bank that the global south has arguably criticized for politicizing funding and unfair repay policies.

Balongoofu Daniel is a Junior Research Fellow at Sino-Uganda Research Centre

 

The Multilateral Trading System: The U.S Should Stop Undermining Global Practice

Posted on By Sino Uganda Research Centre

By Alan Collins Mpewo

It is not in doubt that the United States of America (US) has is always doing their best to stabilize global economy through various measures for selfish gains. Indeed, the US was among the spearhead as of what has popularly in recent times to be known as the Multilateral Trading System that has wide reception globally. This game after the second world that had seen an increase in various shortfalls especially during and shortly after the Cold war with the Soviets. The inception of this system lead to a finality of the General Arrangement on Tariffs and Trade. The Multilateral Trading System also saw the birth of the Uruguay Round sometime in 1980. Because of the growing conflict in the economies of scale between the competing blocs of the West and the Eastern globe there was need to set up formal rules to follow during international trade and business. Because of this, the United States was one of the founding members of the World trade organisation and consequently part of the formulation committee over the World trade organisation rules that would later bind all existing partners States at the time and those that would later in the near future adopt and assent to the World trade organisation. Countless achievements have been since achieved by the World Trade Organization due to the recognisable leadership over the United States of America. It therefore goes without saying that the United States of America has made its solid contribution to the growth and periodic stabilisation of the world’s economy.

Most important under the World Trade Organization rules was and still remains the dispute resolution mechanisms that have constantly been explored by the various parties whenever conflicts arise. The United States of America has without a doubt being on the forefront of always making sure that no more devastating consequences arise which would greatly affect majority of the global stakeholders in dangerously unimaginable levels. It should therefore be understood That’s that the United States of America has made various contributions as aforementioned herein, it has also in equal measures benefitted from the Multilateral Trading System. It is therefore safe to state that the system has been important in elevating various economies globally. The role played by the United States of America remains pivotal given that it is the world’s leading economy and ranks among the top three investment Nations in the world. Understanding that comes with major implications on how it exercises its dominance and authority in the various circles to which it trades and has power.

It is not bad for any Nation to come up with policies that seek to put it first ahead of other global key players’ interests. The United States of America in 2017 also came up with a major slogan and policy formulation along that line of “America first.” However, while it is a noble thing to do, friction and antagonism has since ruptured between the United States of America’s internal policies and the aspirations of other global actors under the Multilateral Trading System. The U.S has constantly deviated from the very ideas to which it was a founding state. Its trade protectionist policies have rather been hurting other trade stakeholders by closing the windows to trade information and active participation on the American soil. From commencing with ideas of globalisation, the Multilateral Trading System has now come into an uncertain trade abyss and now every country does as it wishes under the current structures of global economics.

Among other things that explain the above State of affairs is the constantly unchecked bullying through its hegemonic tendencies that are used to exert unwarranted sanctions and dominance through the guise of “National Security.” In other instances, depending on how it chooses to act or react to other countries, it uses the connotation of “Human Rights.” It has been seen with the Middle East and due to the sanctions and blockages there has been deprivation of equity, debt, and investment in many countries because trade diplomacy ends up as a victim. Additionally, dispute resolution and settlement mechanisms have also been greatly undermined by the United States of America. An example can be cited before 2022 when the United States of America blocked the requisite appointments of the new members to the Appellate body. That alone has paralysed the various efforts by concerned countries in trying to resolve the different disputes that have been arising on an appeal point of view. The United States of America holds a very important vote and by December 2022, it has refused the outcries from the other members of the World Trade Organization to have the Appellate body constituted for purposes of dispute resolution. While Article 17.2 of the Dispute Settlement Understanding gives the legal reception for the appointment of the members to the Appellate body, enforcement has been stalled by the United States of America. By February 2023, 29 appeals are still pending as a consequence of US’s actions.

Some other practices have included, offending export control, often undermining other members’ legitimate industrial policies, unwarranted sanction measures, economic coercion, disrupting industrial and global supply chains, among many other. Other strong economies and lead actors like China and Mexico and the World Trade Organization have constantly called out the United States of America over the above practices but the endeavours have met unresponsiveness. And therefore, while the U.S’ reaction remains an impediment, if unchecked, the once booming Multilateral Trading System is a route of demise.

Alan Collins Mpewo, is a Law and Senior Research Fellow, Development Watch Centre.

NOTE: This article was first published by the Development Watch Centre

15th BRICS Summit: Is this Africa’s Time to Step Up onto the Global Stage?

Posted on By Sino Uganda Research Centre

By Moshi Israel

From the 22nd of August 2023 to the 24th, BRICS nations will be holding their 15th annual summit themed; BRICS and Africa- Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism. The summit will take place in Johannesburg, South Africa. President Cyril Ramaphosa will chair this summit as agreed by all five member states of BRICS who host the annual summits on a rotational basis. The heads of state for Brazil, China, and India will attend in person with the exception of the Russian president. Mr. Putin will be represented by his foreign minister, Sergey Lavrov because the former has an arrest warrant from the ICC out for him and the host nation is a signatory to the criminal court. He is expected to attend via a video link.

BRICS countries represent around 42% of the world’s population and about 25% of the world’s Gross Domestic Product (GDP). The five members also account for around 18% of international trade. Since its creation in 2009, BRICS has been courted by over 30 eager countries that have either applied to join or have expressed interest to be part of the group. Some of these countries include; Argentina, Iran, Saudi Arabia, UAE, Ethiopia, and Egypt. This interest highlights one of the summit’s key agendas of focus, BRICS expansion.

The expansion of the bloc is being pushed by China and Russia with Brazil and India still on the fence. The seriousness of the expansion agenda can be deduced from the fact that well over 60 countries have been invited to the summit, including all African countries. Also, the fact that the last day of the summit is dedicated to ‘Friends of BRICS’ focusing on talks with leaders from other countries speaks volumes. The invited countries span four oceans; Asia, Latin America, Africa, and the Caribbean.

Economic cooperation will also be key on the agenda as the member states seek to improve their economic ties. Discussions will center on trade and investment opportunities in sectors ranging from energy cooperation and infrastructure development to the digital economy and the job market. Under the umbrella of strengthening ties, special attention will be given to the relations between BRICS and African countries which blends in with the theme of the summit. A major area of focus will be the exploration of opportunities within the African Continental Free Trade Area.

It is unfortunate that the world’s recent and current crises are what it took to bring a major focus on the role of the African continent on the global stage. The pandemic saw Africa do well in mitigating the spread of the virus, the global oil crisis has put a focus on Africa’s major oil producers and the War in Ukraine has shown Africa as a potential peacemaker. The competition among the West, Russia, and China to have Africa in their corner also highlights the growing geopolitical importance of the continent. The trajectory is slowly shifting from Africa being a backyard market for the global north to being a respected partner in international discourse.

It is up to African countries to step in and show up when a positive light is shining on the continent. The recent events in Niger present an interesting conundrum. But African states must handle the issue diplomatically with African interests in mind and not at the behest of any foreign power. BRICS presents an opportunity for the continent to get on board something that has been and could be even more mutually beneficial. African countries are still lagging behind the digital revolution and our social and physical infrastructure is still in need of upgrade. These are the key issues African leaders and representatives should aim to address during the summit.

The BRICS National Development Bank (NDB) can play a vital role in Africa’s growth. It was created in 2015 as an alternative to major lending institutions of the IMF and World Bank. The BRICS bank has had over $30 billion in investment in infrastructure development projects both for members and other developing countries. Moreover, the bloc aims to boost local currency fundraising and lending within the NDB. According to South Africa’s finance Minister Enoch Godongwana; local currency use will aid in de-risking the impact of foreign exchange fluctuations.

Furthermore, Brazil and China have signed a bilateral agreement to settle their trade in their local currencies. This adds meat to the bone of the notion that BRICS seeks to use member’s national currencies for trade and perhaps even adopt a common payment system long-term. However, a South African senior BRICS diplomat, the ambassador at large; Asia and BRICS during a press Briefing in July said that there will be no talks about a common BRICS currency.

Another important development at the BRICS summit to watch out for is the previous month’s announcement by BRICS education ministers expressing interest to create their own international university rankings system. This comes at the heel of Russia’s complaint that the current global university rankings are biased against it and extremely Eurocentric.

In the current global political atmosphere, it is impossible to talk about BRICS without mentioning China. As the second largest global economy, China’s geopolitical moves are always under scrutiny by both its allies and adversaries. During this summit, President Xi Jinping will co-chair the China-Africa leaders Dialogue as reported by the Chinese foreign ministry. This is an event that should be paid special attention to and could have significant implications for African countries. China’s presence on the continent keeps growing and presents new opportunities.

Therefore, African countries, should pay close attention to this summit and take this moment to step up and contribute significantly to global discourse. This summit must exceed expectations and produce some major announcements. The fight for a functional multipolar world could formally begin here on the mother continent. It is high time African countries stopped playing for different teams and play for themselves by taking the mantle presented by BRICS and run away with it into a new era of global order.

The Writer is a Senior Research Fellow with Development Watch Centre.

NOTE: This article was first published by the Development Watch Centre

 

As Ugandans noted, China’s Cooperation with Africa is a Win-win Cooperation

Posted on By Sino Uganda Research Centre

By Arnold Katende Ricky and Ssemanda Abdurahim

Dear Editor, on Thursday 27th July 2023 Sino-Uganda Research Centre, a Ugandan Think Tank dedicated to analysis of Uganda’s foreign policy and diplomacy in international milieux with focus on China-Uganda relations left me deeply thinking much about China-Uganda cooperation.  The symposium which ran under the theme “A New Era of China-Africa Relations: What is in it For Uganda?” saw different scholars and researchers discussing different topics among others China’s development path to modernisation and what lessons can Uganda and Africa in general draw from it, and role of women in development among others.

Partly organised to discuss likely implications of the 20th National Congress of the Communist Party of China (CPC) in regard to China-Africa Cooperation as well as the outcomes of the China-Uganda cooperation, Sino-Uganda Research Centre released results for research entitled “perceptions about China-Uganda Relations: Public and Key Stakeholder’s Perspectives,” towards China-Uganda relations. The findings showed that majority of Ugandans are happy and support China-Uganda cooperation with 76% of Ugandans commending China’s role in supporting Uganda’s development plans especially through infrastructure funding support crediting the support for improving the countries road sector, creating employment opportunities to Ugandan and training as well as offering scholarship opportunities.

While according to Sino-Uganda Research Centre, only 22% of Ugandans believe China’s loaning terms to Uganda are fair, with the discussion of China’s development assistance, one can conclude that this area is always left out by Ugandans and Africans in general to be analysed and discussed by western media who arguably always want to criticise China’s engagement with the rest of the world. This is partly because; by playing a positive role in economic development of developing countries, China shrinks the so-called traditional development partners’ role who are largely western countries and secondly, because in most of Chinese funding are implemented by Chinese firms, a negative narrative is created since these Chinese firms take contracts which western countries firms normally want. Therefore, the negative feeling of Chinese loans to African countries should always be expected because of western media narratives and propaganda.

Indeed, Professor Timothy Kerswell of Chinese University of Hong Kong explained that most of negative views towards Chinese loans are as a result of what he described as “penetration of the so-called ‘Western Debt’ trap Narrative” which lacks facts.

While lauding Sino-Uganda Research Centre for investing time and resources in research that focuses on shaping Uganda’s interests, the First Deputy Prime Minister of Uganda and Minister for East African Affairs, Rebecca Kadaga, who represented the Vice President Jessica Alupo under scored importance of researchers and think tanks being independent while conducting their work. She stressed that; “aware that credible and independent research is very important in guiding policy formulation and implementation, I would like to encourage and urge you to make sure that your work is done in total observance of the principle of independence in research for the benefit of Uganda, China, and the world.”

Kadaga stressed that for the last 61 years, China and Uganda have enjoyed good relations which has seen China’s continued support to Uganda in areas such as infrastructure, agriculture, health, industry, and energy sectors emphasised Uganda government is commitment to strengthen ties between the two countries.

Speaking at the same occasion, Chinese ambassador to Uganda, Zhang Lizhong, explained that the Chinese Path to Modernisation is socialist modernisation under the leadership of the CPC, and emphasised that it is “based on China’s national reality, and draws on other countries’ experience.” Ambassador Lizhong argued that as part and parcel of humanity’s modernisation, Chinese modernisation path contains what he described as “elements that are common to other countries’ modernisation, such as industrialisation, urbanisation, greater democracy, and rule of law. Meanwhile, it also has unique Chinese features as it is rooted in the Chinese context.”

If we critically analyse ambassador Lizhong’s words in regard to China’s development path, it is not a surprise that when China announced that the country had eliminated extreme poverty, United Nations described the rate at which China achieved this as a record time. The point of emphasis here is that China took a path that that is/was compatible to the country because, their development path is/was “based on China’s national reality.”

Upon that background and recalling the failed structural adjustment programs (SAPs) which Bretton Woods Institutions particularly the International Monetary Fund (IMF) imposed on Africa, it looks clear that China’s path to development if considered may be the magic bullet for African countries to attain development and modernisation, more importantly, modernisation. Put differently, while African countries may learn from other countries’ development path, it is important that like China which decided to take a development path with Chinese characteristics or which is compatible with their national realities, African countries must also take a path that is compatible with our national realties but not simply following any program as it was in 1980s when IMF forced many of developing countries especially in Africa and Latin America to follow SAPs.

The other interesting revelation was arguments by Ambassador Lizhong that China’s modernisation path is premised on a view that modernisation should not be considered as a reserve of one country or individual stressing that Chinese modernisation is the modernisation of common prosperity for all, and will open up a broader path to common development of all countries. “Modernisation should not make the rich richer and the poor poorer. Common prosperity for the whole world requires prosperity of all countries,” argued ambassador Lizhong.

In a nutshell, looking at China’s continuous engagement with African countries and Chinese leaders’ consistency in their communication, there is no reason to doubt or question China’s relations with Africa. As a Ugandan, I have no reason to conclude that as Africans let’s joint our hands together, to open up a new chapter of China-Ugandan friendship of solidarity, friendship and cooperation, and jointly build the China-Ugandan and China-Africa Community of Shared Future in the New Era!

Arnold Katende Ricky and Ssemanda Abdurahim are Research Fellows at The Development Watch Centre.

A New Era in China- Africa Relations: What’s in it for Uganda?

Posted on By Sino Uganda Research Centre

By Moshi Israel

Yesterday, on the 27th of this month, Sino-Uganda Research Center (SURC), the lead Think Tank on China-Uganda relations, and Development Watch Center, Uganda’s leading Think Tank on foreign policy analysis hosted a symposium at fairway hotel in Kampala. The theme of the symposium was to have an in-depth look at a new era of China-Africa relations and what Uganda in particular could gain from it.

Several experts, dignitaries, members of the media fraternity, and Politicians from Uganda and China attended the symposium. The Guest of Honour was Her Excellency the Vice President of Uganda, Jessica Alupo, represented by the Right Honourable Rebecca Kadaga the 1st Deputy Prime Minister and Minister for East African Affairs. H.E. the ambassador of China to Uganda, Zhang Lizhong also graced the event with his presence. Also, delegates from major Chinese companies in Uganda such as CNOOC, Sinohydro, and China Communications Construction Company were present and were given the opportunity to discuss their work and challenges in Uganda.

In her speech, the chief guest acknowledged the vital role of think tanks in guiding policy formulation and implementation and recognized the key role SURC could play in making this a reality in Uganda. She pointed to the importance of independence in research exhibited by the research centre and noted its importance for the benefit of Uganda, China, and the world.  Furthermore, her speech emphasised the need to discuss China-Uganda relations candidly. In one of her key points, the guest of honor pointed to the need for Africans, in general, to control the narrative of cooperation with China without leaving room for distortions from cynics. This is an important point because for the most part relations between China and Africa are distorted by Western media and often painted in a negative light. Therefore, think tanks have an urgent role of setting the record straight through unbiased research that seeks to find the truth. The new era of China-Africa relations should be one in which the two parties control the narrative and avoid the use of Western frames to approach and debate issues.

The speech also, called upon governments in Africa and Uganda in particular to engage more with think tanks in setting national agendas. For the SURC to be the only think tank in the whole country to study and drive debate on the relationship between Uganda and one of her biggest trade partners shows that there is a gap between academia and government that needs to be covered. The chief guest was jubilant in pointing out the milestones China and Uganda have achieved since the bilateral talks in Beijing on 25th June 2019, between Presidents Xi and Museveni where they agreed to lift the two country’s relations to a comprehensive cooperative partnership. This set the stage for the betterment of China and Uganda relations which have hit a peak in recent years.

The vice president appreciated the fact that China does not seek to interfere in Uganda’s internal matters and assured the Chinese that Uganda is open and safe for China. She hinted at the fact that Uganda as a developing country has a lot to learn from China. The vice president understands that whereas China achieved modernization and poverty alleviation through adhering to the principles of a socialist economy with Chinese characteristics, Uganda as well as Africa can create a development path with Ugandan and African characteristics.

Another important area that Her Excellency touched on was trade and investment. Uganda’s trade with China keeps growing and bilateral trade between the two states grew by 28.8% in the first quarter of this year. However, Uganda’s market in China is still low and has room for improvement as long as “Ugandan farmers produce high-quality products with value addition.” In a world facing a resurgence of nationalism that has left more countries hostile to anything foreign; for example, the countries that engaged in vaccine nationalism, the Vice president through her representative the Right Hon, Rebecca Kadaga thanked China for standing with Africa in supplying free vaccinations in a show of true friendship and win-win partnership.

H.E. the Ambassador, Zhang Lizhong also addressed the symposium and strongly condemned all efforts to undermine the relationship between China and Africa. He commented on the various projects that Chinese companies have accomplished and are on the verge of completing with Uganda. The ambassador also lauded his tours around Uganda and his most recent visits to western Uganda. Uganda has great tourist potential and beautiful scenery which the ambassador noted could play a significant role in Uganda’s economic development. The ambassador noted that China has extended a tax-free incentive to Ugandan exports. Furthermore, China will continue to expand its assistance to Uganda in the health sector, infrastructure, energy sector, Agriculture, and all other potential areas of cooperation.

The ambassador shared his perspectives on the role of government strategic planning in China that led to the elimination of absolute poverty and the modernization of China. The emphasis was also placed on China’s development path which seeks to cooperate with the rest of the world through the concept of mutual benefit. Projects such as the Belt and Road are landmarks of China’s commitment to the development of African nations. He noted that the CPC (Communist Party of China) will always champion international cooperation instead of confrontation and that China-Africa, and in particular China-Uganda relations can only go higher in this new era.

The symposium also held a panel discussion where Ugandan experts and delegates from Sinohydro, CNOOC, and other Chinese companies shared thoughts on China’s projects in Uganda, challenges, and potential solutions. The representative from CNOOC shared the progress of the Tilenga oil project at King Fisher in Hoima. CNOOC has been instrumental in improving the lives of people in local communities surrounding the project and all Ugandans generally. CNOOC has employed thousands of local workers in both skilled and unskilled, provided scholarships for numerous Ugandan engineers who have subsequently been employed by the company, and just recently CNOOC has announced another round of scholarships for talented students. The company has built health centers in the local areas of Kikuube and eased access to water by constructing the Buhuka Gravity Scheme that supplies safe and clean water to over 1300 local residents. CNOOC has also engaged in environmental protection in collaboration with the National Forestry Authority by aiding and providing tools to ease law enforcement in the Bugoma forest reserve. This also aims to reduce the negative impacts of climate change in the Albertine region.

The symposium has been a milestone and is a potential trendsetter in the think tank domain within Uganda. Through the activities of SURC and Development Watch Center, the debate for a better, more knowledgeable, and progressive Uganda has been given a vital push forward. The Executive Director and founder of both think tanks, Dr, Allawi Ssemmanda noted that it is high time think tanks got the recognition they so deserve in Uganda as stakeholders in policy formulation and implementation. He emphasized that think tanks and academicians can play a crucial role in propelling a country like Uganda forward by leading the debate on issues that matter by analyzing and providing a nuanced understanding of complex global and domestic issues for all citizens.

Moshi Israel is a Researcher with Development Watch Center.

 

 

Biden’s Executive Order Against Chinese Tech is Against Fair Trade, it Will Disrupt Global Chain Supply

Posted on By Sino Uganda Research Centre

By Allawi Ssemanda

This week, U.S President Joe Biden signed an executive order banning the U.S from investing in what the U.S describes as sensitive technology in People’s Republic of China. The order also requires that U.S government be notified of any funding in other sectors that would involve dealing with Chinese firms.

In a letter addressed to the U.S Congress, the U.S ruler argued that his executive order meant declaring what he called a national emergency, purposely to deal with the so-called threat of advancement by countries such as China in what Biden called “in sensitive technologies and products critical to the military, intelligence, surveillance, or cyber-enabled capabilities”.

Important to note is that Biden’s order empowers the U.S treasury to either ban or restrict U.S firms from investing in Chinese firms specifically in three technology related sectors namely;

quantum information technologies, certain artificial intelligence systems and semiconductors and microelectronics.

While the Biden administration defends the decision with claims that the “measure” arise from the need to protect the so-called national security goals, but not economic interests, if critically analysed, this order is a result of U.S’ desire to contain China’s rise. Put differently, the U.S suffers from libido dominandi– the desire to dominate others and in this case, the U.S’ primary goal is to protect its shrinking technology hegemony.

Aware that the U.S has continuously limited the export of what Washington calls exportation of advanced computer chips to China while hiding under the guise of the so-called national security concerns and claiming that the U.S is not after decoupling from China but rather the so-called de-risking, facts on the ground clearly show that it is U.S’ geopolitical gimmicks and double standards. It is clear that the U.S fears fair competition and hence, using national security claims to target Chinese firms. This explains why despite being vocal against former U.S ruler, Donald Trump’s trade tariffs against Chinese products which then Candidate Biden said were hurting U.S economy, instead of removing them, the Biden administration has continuously sought to limit investments in China and expanded Trump era tariffs and on many occasions rallied U.S allies especially in G7 to follow the suit.

While war hawkers in Washington are praising Biden for this order with Senate Democratic Leader Chuck Schumer claiming that “for too long, American money has helped fuel the Chinese military’s rise. Today the United States is taking a strategic first step to ensure American investment does not go to fund Chinese military advancement,” it should be recalled that such selfish measures will not only hurt China but targeting the world’s second largest economy means the effects will be felt by arguably entire world. This is because, decoupling from China in all ways will result into disrupting global supply chain and should be condemned, and Washington called to respect fair trade which World Trade Organisation stands for.

As Chinese foreign ministry indicated, U.S is hiding behind national security the “true purpose (of this order) is to deprive China of its development rights and maintain its own hegemony.”

This is true considering the fact that, for decades, the U.S has been targeting foreign companies involved in trade Washington deem against their interests using different excuses. For example, in 2020, a study by the Cato Institute, an American libertarian think tank found that the U.S used long-arm jurisdiction in violations of World Trade Organisation (WTO). The study entitled “Unfair Trade or Unfair Protection? The Evolution and Abuse of Section 301” argues that section 301 of long-arm jurisdiction “grants the executive branch far too much discretion in defining an actionable foreign trade practice” which may be exploited for political reasons – it allows American President to safeguard America’s trade interests by remedying any “act, policy, or practice of a foreign country [that] is unreasonable or discriminatory and burdens or restricts United States commerce.” Important to note is that the same law defines “unreasonable” in very ambiguous manner simply calling it “otherwise unfair and inequitable.”

All the above puts the U.S at advantage over other countries’ companies, potentially making the rest inevitable victims should American politician(s) feel that a foreign company is putting a stiff competition against American(s), such foreign companies can easily be sanctioned by America and tactfully kicked out of business.

As Alan Sykes, a Law professor at Stanford University argued, Politicians in the U.S always hide under the so-called national interest to facilitate political opportunism giving the U.S chance to freely target other competing countries.

In conclusion, considering the negative effects of such actions that come with U.S’ fear of competition which is inevitable with free trade, the world should be honest with the U.S and ask Washington to allow free and fair market to avoid unnecessary disruptions to global supply chain at the time the world is recovering from shock caused by the Covid-19 pandemic.

 

Allawi Ssemanda, a Senior Research Fellow at the Afro-Diplomacy Analytics.

China’s BRI and a formidable AfCFTA in the face of Globalisation

Posted on By Sino Uganda Research Centre

By Musanjufu Benjamin Kavubu

After many years of planning, discussion and negotiations on the 1st day of 2021, the African Continental Free Trade Area (AfCFTA) came into existence. Now the basis for a free trade area is free movement of people and free movement of goods and commodities across countries’ borders. This whole process revolves around transportation. There is talk that “it’s easier to fly to France than fly directly to West Africa from East Africa” because there is barely any infrastructure to support intra African travels.

The Trans African highway system can easily come off as a myth if you looked at the figures for Intra-African trade.  For example, in East Africa, Kenya Exports about $ 1 billion worth of goods to the United States and $ 500 million to EU but it only exports $ 69 million to Ethiopia who they share a land border with. Of course, we can’t water down the impact of tariffs amongst African countries but there is need for ground infrastructure to foster an African free trade area.

We are yet to see the benefits of AfCFTA but in the last 10 years, there is something that has sprang up and it’s a remarkable vehicle for the African Free trade area. In September 2013 China’s President Xi Jinping put in place his grand political-economic project and in it came the Belt and Road Initiative (BRI) and at the moment it links about 155 countries and 32 International organisations. AfCFTA on paper brings together 55 markets of 1.2 billion people with a total GDP OF $ 2 trillion. The BRI project at the moment has 52 African countries out of its total 155 worldwide.

A close look at the BRI, one will understand how much China is subconsciously putting in an African Free trade area that benefits the European Union more since Exports to Africa stand at 36% against China’s 9%, EU imports from Africa including uranium for their weapons and energy are at 33% against China’s 5% but its China that is blamed to over invest in Africa’s infrastructure. One would say China uses its Silk Road history to link to Europe and maximise the African supply chain but then that would fit the definitions of Globalisation which is the future.

In China’s bid to facilitate free movement of goods and services Beijing set up $ 3.3 billion in the Nador Med West industrial port in Algeria and it’s said that route is the North African link to West Africa through the Trans-Saharan Highway. In West Africa we have witnessed China set its foot on projects like the Abuja-Kaduna railway line that was done by China Civil Engineering Construction Company (CCECC) as Africa’s giant embarks on setting up a standard gauge across the country. In 2023, we saw China sign a deal that would see oil pipeline in Niger and set up an industrial park.

The El Hamdania Central Port is one of the largest in Africa and its part of the BRI in Algeria on top of it China has done a 750 mile East-West road that connects Algeria, Morocco and Tunisia. At the peak of the resent Ethiopian civil war, the Addis Ababa-Djibouti Railway was a source of contest but no one ever mentioned that it was a BRI by-product that links Landlocked Ethiopia to the Sea and the Ethiopia-Djibouti Water Pipeline all financed by EXIM Bank.

There is a 10,228 KM road that starts from the many ports of Egypt and ends in Cape Town. The great Trans African Highway. This route is full of Chinese projects that are bettering transportation and industrial infrastructure. It’s said Egypt could be the most important part of the BRI with projects like the Chinese Industrial zone in the Gulf of Suez, the electric train system for Egypt’s new capital. Of course, geopolitically, Egypt has always been a prize for world powers and China is not being left behind. Apart from the African Cup of Nations there, nothing that has made Egypt more active in African affairs like the AfCFTA.

Down The great Trans African Highway in Sudan, China has been part of the rehabilitation of railway lines by the Chines Company CRRC Ziyang. China is at the forefront of the oil industry in Sudan and it has promised to have a nuclear power station be set up in future.

Along the great Trans African Highway is the East African Community and the BRI has seen the development of the Mombasa-Nairobi Standard Gauge Railway and also Kenya’s biggest infrastructure project since Independence that spans 470 km in 4 hours and half, boosting the GDP by 1.5% and creating about 40,000 jobs for Kenyans. In Tanzania, the BRI has put in place a 2,561 km line that links Dar es Salaam to Mwanza on Lake Victoria and will further go to Burundi, Rwanda and Democratic Republic of Congo. In Uganda, there is the Entebbe-Kampala Expressway that connects Uganda to the world in a shortened time.

The BRI could be China’s plan to speed up trade with Africa but at the end of the day chokepoints are eliminated they in turn benefit the African Continental Free Trade Area (AfCFTA) since there is this new mix of rail, road and water transport infrastructure being put in place. As China tries to reach more so called less developed countries, Africa is being opened up for Intra-African trade. Then AfCFTA will be able to lift 30 million African from poverty in no time.

Musanjufu Benjamin Kavubu is a Junior Research Fellow at Sino-Uganda Research Centre.