China’s „One Belt One Road “Initiative has been allocated as its most determined project ever in trying to shape and influence behavior in the international system in line with her growing figure. At the same time, mounting Sino-Africa relations have been the subject of scholarly debate with supporters taking an optimistic view, also presented by China herself, of this relationship being a win-win partnership. Critics led by the US argue China is just using Africa to extract resources for its use, an allegation she disproves. The authors therefore sought to look at Sino-African relations but focusing on the implementation of One Belt, One Road, in the African continent.
OBOR is a mixture of two outward-facing notions introduced by Mr Xi in late 2013 to uphold economic engagement and investment along two main routes. To date, reports suggest that the first route, the New Silk Road Economic Belt, will run westward overland through Central Asia and onward to Europe. The second route, the 21st-Century Maritime Silk Road, will probably circle south and westward by sea towards Europe, with proposed stops in South-east Asia, South Asia and Africa. Being the center of china’s foreign policy since 2013 study on OBOR in Africa will give an understanding and fully answer some questions surrounding these relations.
China’s approach to international diplomacy is growing. Having long sought to maintain a “low profile” on the global stage, it has in recent years begun to advocate a greater role for itself in the international order. Chinese companies are also leaving the comforts of their home-based market and going overseas, seeking to blow new markets and acquire new machineries. China’s president, Xi Jinping, is ramping up efforts to reinforce China’s global position. He has proclaimed a number of high-profile multilateral initiatives intended to advance China’s international existence and promote closer ties with more countries. The main initiative under this impulse, “one belt, one road” (OBOR), promises to be among the widest-reaching of these. It not only represents a renewed, stronger and better co-ordinated push to expand China’s influence overseas, but it is also coupled with a domestic investment drive, in which nearly every Chinese province has a stake.
In a period of three decades, China has transformed from an agricultural, self-contained and inward looking state into a global economic capital second only to the United States (Cheung & Lee, 2015). In line with her growing stature in the international system, China has sought to exert influence on the global stage, from Latin America, Middle East, South East Asia, to Africa. One way of achieving this and as part of China’s „global grand strategy‟ is the 21st Century Silk Road Economic Belt Initiative, informally known as One Belt, One Road‟. In the same vain, Sino-African relations have grown exponentially since the 1955Bandung conference. The original „Silk Road‟ was established over 2100 years ago during the Han Dynasty to promote trade and cultural development between China, Asia, Africa. The „New Silk Road Economic Belt‟ launched tenderly as “One Belt One Road‟ initiative or Yídàiyílù was introduced by china’s President Xi Jinping as the centerpiece of his foreign and economic policy in 2013. It is by far the most significant and far-reaching project China has ever embarked on however the One Belt One Road project or is fundamentally comprised of two interdependent and interrelated concepts; the „Silk Road Economic Belt‟ and the „Maritime Silk Road‟. Essentially, the „belt‟ is comprised of a network of roads, rails, power grids and gas pipelines that run over land from Central China in Xi‟an, the capital of Shanxi Province through Central Asia, to Moscow, Rotterdam and Venice. This corporation of infrastructural projects will consequently pass through a number of countries. The Maritime Silk Road on the other hand is its oceanic counterpart. This involves the construction of a network of sea ports in the South China Sea, Indian Ocean and the South Pacific Ocean. It will essentially connect South East Asia, Oceania, East Africa and North Africa through the Mediterranean. the essential pillars of the initiative are „promotion of policy coordination, facilitating connectivity, unhindered trade, financial integration people-to-people bonds and the African section of the belt and road is of concern for this article. It covers three countries; Kenya, Djibouti and Egypt.
According to Xinhua News Agency, three countries in Africa are directly involved in the belt and road initiative; Kenya, Djibouti and Egypt. However, the extent of their involvement is unclear, with many documents indicating Egypt as the sole African state to be involved in this initiative. Various factors have been attributed for the inclusion of these exclusive three African states into the center piece of china’s 21st Century diplomacy;
According to the realism theory of international relations world politics has been characterized by power politics. In the context of security and global geopolitics the horn of Africa region and the Suez Canal has been traditionally a Western-controlled zone with the US and her allies being the primary guarantor for maritime security. Any powerful state controls the security of that region, also controls the maritime trade routes between Asia, Europe and Africa. Egypt and Djibouti, two of the three African states part of the OBOR are strategically located at the heart of global geo-politics playground. Djibouti is quite unique as it now hosts military bases for the US, France and now China. While the fight against pirates has often been cited as the propellant behind this, one can’t quite push the power struggles as being the true variable for these great power shaving such a heavy military presence in the region. The entry into Djibouti and the region by China could slope and re align security partnerships that have underpinned global order since 1945 but For Egypt, its strategic geographical location at the Suez Canal gives it an indispensable status, explaining why it’s the only African nation to officially sign bilateral agreements with China on One Belt, One Road.
The initiative simply cannot afford to exclude Egypt. On the other hand, the inclusion of Djibouti has been a result of logical‟ assumptions than from official statements. This can purely be explained under the quest for global dominance and the geopolitics of the horn of Africa as stated earlier. With 30% of world shipping going through the entrance of the Red Sea from the Indian Ocean and on to the Suez Canal, Djibouti and Egypt are very critical.
In addition the opportunities can be eye from different aspects firstly the 1,780km Tanzania Zambia Railway line (TAZARA) has symbolized china’s presence in Africa since the 1970‟s. Currently China is involved in numerous mega infrastructural projects in Africa. For purposes of this paper, some of those which lie within the mandate of OBOR will be highlighted. Top on the list is the 2,700kmEast African Railway line. This includes Kenya, Uganda, Rwanda, Burundi and South Sudan. As indicated earlier, extent of involvement of OBOR affiliated institutions in financing the Kenyan part are not clear, though China‟s Exim bank has been linked. 8Another major railway project is the 1,315km Kano-Lagos railway line in Nigeria, the 1,302km Bengue railway line in Angola (which brings to total 4,000km railway in Angola constructed by China), 560km Belinga-Santa Clara railway in Gabon, 172km railway in Libya and 430km rail in Mauritania to name but a few. To put this into perspective, the entire African rail network is 50,000km.On the other hand, China is constructing port facilities in Kenya, Tanzania, Gabon, and Djibouti among others, with most road construction being handled by Chinese contractors, using Chinese financing. The 1302km Angola railway line will be linked with Angola-Zambia and TAZARA in future. On port construction, China is involved in construction of the Lamumega port in Kenya, Bagamoyo port in Tanzania, Santa Clara deep water port in Gabon amongst others9. It’s safe to say even without OBOR therefore, China is heavily involved in opening up Africa.
What Can OBOR Offer On Infrastructure?
Firstly, with China involved in all these infrastructural projects in Africa, coupled with OBOR‟s vision for improving connectivity among countries, the initiative will offer a centralized, clear vision, and concerted effort in streamlining infrastructural development in Africa. A case in point is the railway line in Angola which is complete on their side of the border, but under-utilized because neither Democratic Republic of Congo nor Zambia have linked up to connect to the port, hence hindering efforts to export their products. Secondly, capital for infrastructural development in Africa comes from various Chinese bank loans under individual bilateral agreements entered into by these countries. Through OBOR, the capital inflow can be clearly centrally monitored through the AIIB and the SRF. This need is further strengthened with China signing a memorandum of understanding with the African Union (AU) in January 2015 to connect all 54 countries with high speed rails, ports and roads. The traditional „equatorial land bridge‟ which is the natural trade route between East and West Africa can be a good starting point for OBOR in Africa expansion. This route begins in Kenya, Uganda, Rwanda, Burundi, the Congo’s, Central African Republic, to the West in Douala Cameroon.
Increase China’s Soft Power
China’s fellow competitors in global influence, enjoy considerable advantage in Africa due to colonialism and history that exists between Africa and the West. Joseph Nye (1990) defines soft power as when „one country gets other countries to want what it wants‟. This means, the country uses attraction to get support by other states rather than the traditional use of military force and pressure. China has over the years strived to increase its soft power over other competitors. Through her slogan of „peaceful development‟ (hepingfazhan) she has sought to create a niche for herself as a peace loving, development minded global citizen, who has noble intention in her relations with other states.
Undeniably, this rhetoric has been repeatedly cited by Chinese diplomatic officials, and has earned China many friends. OBOR as a grand strategy squarely falls within the realm of peaceful development as espoused, with its commitment to peace and economic prosperity along the belt and road, and amongst all states involved. In a world dominated by the US hegemony and influence in virtually all the compasses, perhaps building soft power is the only way China can earn the trust of her neighbors, while at the same time building a modern state both in terms of her people, economy, and military. Any other strategy other than a soft peaceful rise might trigger US counterbalancing measures and perhaps destabilize Chinese society, leading to civil unrest and other issues that might curtail accumulation of power and her rise. Assigning primacy over economic matters therefore is designed to prevent drawing attention to her military pursuits, which would attract counterbalancing measures leading to a Soviet-style collapse, while earning China allies both regionally and globally. This is essentially, one goal of OBOR. In essence, through OBOR, china’s vision of a new modernity, characterized by free flowing ideas, goods, services and people to people engagement, and that shared economic future, common prosperity, would replace doubt, competition and power play. The Belt Road Initiative and the new regional order‟ that Beijing is using new ideas like „China dream‟ and„ Asian dream‟ to build what Chinese leaders call a „community of shared destiny.‟ this community begins in Asia which China at the epicenter, and would gradually aim to conquer the global order. This is the gist of china’s new vision of global governance to replace the Western fronted status. Compared to the US, UK, Germany and Japan, China has less soft power abilities in Africa. These countries have for many years used language and culture (largely due to colonization), and through aid and donor agencies ,the United States Agency for International Development (USAID) has acted to impart democratic ideals of the US in Africa, the Bretton woods institutions have propagated Western free-market policies, while United Kingdom Agency for International Development (UKAID) and Japan International Cooperation Agency (JICA) have served to further UK‟s and Japan‟s soft power aspirations. China on the other hand has risen largely on a different path. It has none of these organizations to further her soft power in Africa. OBOR as a source of soft power is not on the projects themselves being implemented in Africa, but the „Beijing consensus‟ which offers an anti-thesis to the„ Washington consensus.
The „Beijing consensus‟ is one which does not give a standard solution to all situations, but which encourages development based on the unique circumstances of individual states, and a „ruthless willingness to experiment and innovate‟. While for very long the US and her allies pushed the rhetoric that economic freedom is intertwined with political freedom (Washington consensus), over the years, the Chinese model has earned many admirers all over the globe.
Nevertheless OBOR‟s focus on trade between Africa and China, and the inclusion of the continent in this initiative will boost further the commitment China shows to Africa, not due to any hidden motives but as a true ally of Africa, thus furthering the narrative in support of the „Beijing consensus‟ as the best for Africa to replace the failed„ Washington consensus‟ fronted by the Bretton woods institutions and the West for many years. While the West emphasized on governance, political and economic reform along what they thought was acceptable to them in order to access development funds in the 1990‟s (through the Structural Adjustment Programs by World Bank and IMF), OBOR and affiliate financial institutions are cognizant of the fact that one-size-fits-all solutions are not realistic. Hence, they let states handle their own internal matters while helping them access the funding they require for their infrastructural development. The immense „soft power‟ that will arise from this will propel China into great heights in global politics.
Challenges to OBOR in Africa Intra and Inter-State Conflicts
The biggest challenge to OBOR in Africa is the state of continuous warfare experienced throughout the continent. War and conflicts have exacted a heavy burden to Africa’s development since time immemorial. As cited by Ndlovu-Gatsheni (2012) highlighted the five different types of conflicts that have plagued Africa; anticolonial, imperial, international, intra-state and inter-state conflicts. At present, many countries in Africa are experiencing wars of „regime change‟ with the Democratic Republic of Congo being a perfect example, while the Greater Sudan „War of Decentralization‟ led to splitting into north and south. In time however, South Sudan has also started experiencing its own war, what can be called „inter-communalinsurrection‟.17Conflicts are not limited to these, with Somalia, Uganda, Rwanda, Burundi, Congo Brazzaville, Angola, Nigeria, Liberia, Kenya, Libya, Central African Republic, just a few of the African states to get into warand violence within the last decade or so. Greig, Mason and Hamner (2016) have identified and geo referenced over 73 different civil conflicts in Africa. In their paper, they argue that, conflicts begin, continue and end from depending on the logic behind the war.18 the potential gain from these wars is mostly control of massive natural resources which motivates parties to engage in long and drawn out wars. These wars have come with massive economic and infrastructural damage to the countries affected. In South Sudan alone, China imports 5%of its oil when operations are at full capacity.
However, the civil war within South Sudan itself, and conflict with the neighboring Sudan, has disrupted oil production from the oil fields, and subsequent shipping of this oil to China. Zhou (2014) goes further to posit that, the war in Sudan means production was reduced by over 30%capacity from 245,000 barrels of oil per day, to less than 160,000 barrels per day. Operations in oil blocks 1, 2and 4 were completely shut down in December 2013 following outbreak of war, and Chinese oil personnel evacuated from site. This is aside from the shutdown occasioned from conflict between the two Sudan’s with regards to transit fees between the two Sudan’s. While Sudan was demanding a fee of 30 USD per barrel of oil pumped through its pipeline, South Sudan wanted to pay the standard worldwide fee of 3USD per barrel on the physical infrastructure, conflict has a damaging impact on roads, railway lines and other infrastructural developments. A case in point is in Angola where over 4,000km of its rail network was destroyed in conflict and had to be repaired before it could be operational again. As an example therefore, the success of OBOR expansion in Africa would depend on how China navigates the conflict land of the African jungle for full potential to be realized. With conflicts experienced in DRC, CAR, Burundi, instability in Egypt among other countries, china’s resolve will be tested in launching and sustaining the OBOR initiative in Africa.
In conclusion China continues to be an important ally for the African continent to date. And the One Belt One Road Initiative offers an opportunity to deepen Sino-Africa Relations and should be explored further by the leadership of both China and Africa. The current status of OBOR in Africa is minute. As it is, OBOR in Africa, when looked at in terms of the importance that China puts in Africa does not mirror the optimism that Sino-African relationship has attracted in the recent past. It shows a discord between the rhetoric about the significance and growth in the relationship, vis a vis the reality, which is that Africa remains a cross-reference in china’s plans globally. 3 countries out of 67 involved in the project do not give an optimistic picture. However, the opportunity for further cooperation is still there.PRC can seize the opportunity presented by OBOR to streamline its foreign direct investment in the continent to leave lasting foot print. Indeed, successful implementation will result into firmly entrenching China as a „true friend‟ for Africa. China has global ambitions, while Africa is in dire need of capital for infrastructural development, and OBOR offers the best platform to pursue this.
Development in South Africa: Bridging the Gap
To live in one of the most unequal yet highly urbanised societies in the world means that there are high levels of inequality, poverty and other injustices that the majority of the population have to live with (Burger, Van der Berg, van der Walt, and Yu, 2017). This reality carries with it not only decades of discriminatory policies, but poverty stricken livelihoods that cripple any chance of progress in a society where wealth has a strong racial correlation (Burger, et al, 2017; Leibbrandt, Woolard, and Woolard, 2000). While South Africa is the most advanced and diversified economy in Africa, and the wealthiest in terms of GDP per capita, the country is still haunted by high levels of inequality. According to the 2018 World Bank Report, more than half of South Africa’s population lives below the upper poverty line of R992 per month per person by use of 2018 prices. These are the realities that we are faced with – this is in addition to being the leading country in the world in unequal income distribution with a Gini index of 63.4 as shown in Table 1.1. Although great strides have been made in targeting unemployment and economic growth to ensure that development has taken place, historical inequities still need to be addressed adequately in order to improve the quality of life for the majority of South Africans, and to bridge the gap between these parallel worlds. This chapter will take measure of the nature of inequality as well as advance some routes which could be taken to allay the present challenges.
The world’s 10 most unequal countries
|Ranking||Name of country||Gini coefficient|
|7||Central African Republic||56.2|
Not a New Idea
The idea of bridging the gap between two parallel worlds is not one that is unheard of (Zhu, 2017). Asia, being the largest continental economy by GDP (Gross Domestic Product), also implies that it has experienced rapid socioeconomic development in recent years. A great example of this is China – since the late 1970s, the development in the cities has not only attracted immense inflows, but have also been a key driving force for urban growth and development, with the 2010 census stating that 87 percent of China’s “floating” population migrated to cities and towns from villages. Zhu and his colleagues make use of the in situ urbanization, which refers to the process of rural settlements and populations transforming themselves into urban or quasi-urban ones with little geographical relocation of the residents. This phenomenon has two dimensions whose development has played a key role in China’s urban growth between the late 1970s and the late 1990s (Zhu, 2017). Of the two dimensions, one of them focuses on the creation of new industrialised centres, and the other dimension refers to the practical and physical modifications of rural areas through the expansion of township and village enterprises (TVEs) (Zhu, 2017).
The experiences of developed countries propose that in the industrial period and post-industrial period, many individuals and their families move between and/or within cities numerous times due to changes in either employment status or housing needs, which are often caused by various life cycle events such as marriage, child bearing, etc. This is the kind of urban-urban and intra-urban mobility that is often observed in many developed countries (Zhu, 2017).
From the case study mentioned above, we learn that incorporating migration along with in situ urbanisation will not only ensure that people residing in the rural areas benefit from the prosperity of the cities, but will also benefit from the resources and potential development that could occur in their hometowns (Zhu, 2017). Spatial links will need to be visualized and implemented at finer spatial levels, with “a coordinated regional approach” required to “cuts through fragmented boundaries” in order to assist the movement of people between and/or within urban and rural spaces (Zhu, 2017). Additionally, more attention will need to be given to issues of various social security programs and public services, to ensure that migrants will not be disadvantaged by this migration (Zhu, 2017). Gopaul’s (2009) paper based on the South Africa case also indicates that something needs to be done to assist people living in rural areas who live in extreme poverty; else, their standard of living will continue to worsen. He suggests that the solution lies in tourism – “to accomplish rural development, there is a need to nurture a sense of willingness and enthusiasm amongst the poor communities to participate in rural development” (Gopaul, 2009).
The Evolution of Urban Development in South Africa
Rapid development and large scale rural-urban migration in South Africa were inspired by the discovery of diamonds in Kimberly, and that of gold in the Witwatersrand in the 1860s and 1880s respectively (Mabin, 1992; Turok, 2012). These economic activities brought some much-needed opportunities to the rural community, and transformed South Africa from an agricultural state to an industrialized nation (Moomaw and Shatter, 1996; Turok, 2012). An invasion of foreign investment in mining from De Beer, Anglo American and Consolidated Gold Fields was also witnessed in the late 1800s, and further generated rapid growth of support industries and services that were supported by temporary migrant labour that was migrating to the cities (Turok, 2012). As a result, the developing world – including South Africa – has witnessed unprecedented growth in urbanisation rates in the last two decades (Cohen, 2006). Thus far, urbanisation in South Africa has been increasing by roughly 0.5% on a year-to-year basis, with technological innovation and employment in urban areas continuing to increase due to its ability to offer considerable socio-economic opportunities in comparison to rural areas. Behrens and Robert-Nicoud (2014) further argue that cities are not only the locus in which inequality materialises, but they are hosts to instruments that contribute extensively to changes in that inequality. Thus, it is not surprising that individuals seem to migrate to economic hubs where more opportunities exist (Behrens and Robert‐Nicoud, 2014; Ozler and Hoogeveen, 2005).
Having an urbanised economy or cities as economic powers while rural communities are under-developed is not an exclusive South African phenomenon – it happens all over the world because of several reasons as seen in the case of Asia. Amongst the key reasons is that of economies of scale and rural-urban migration. As such, Fields (1972) referred to the rural-urban migration theory as an economic phenomenon in his paper. The theory hypothesizes that workers compare the projected incomes in the urban sector with agricultural wage rates in the rural areas and migrate if the former exceeds the latter. In addition, the rural-urban migration is often regarded as the adjustment mechanism that workers use to assign themselves between different labour markets, some of which are located in urban areas and some located in rural areas. Thus, rural-urban migration is the equilibrating force that connects rural and urban projected incomes and is regarded as a disequilibrium phenomenon (Fields, 1972).
Consequences of Urbanisation
Over time, we have observed how urbanised South African cities are, and how they continue to advance. The downsides of these advances have had destructive societal, economic and environmental consequences (Turok, 2012). Meanwhile, rural areas continue to remain under-developed with high levels of deprivation with respect to sanitation, access to water and access to energy, high levels of unemployment, inadequate use of natural resources, insufficient access to socio-economic and cultural infrastructure, low skills level and insufficient literacy rate (Behrens and Robert-Nicoud, 2014; Burger, et al, 2017; Gopaul, 2009; Krishman, 2016; Ozler and Hoogeveen, 2005).
Upon the analysis of international studies, Barro (2000) found that people living in rural areas might be using old technological methods, whereas urbanised areas employ more recent and advanced techniques in their daily undertakings. As such, we observe how large municipalities within the cities are deeply accommodative of additional commercial services and more advanced roles concerning finance as well as developmental projects; whereas smaller municipalities, which are mainly located on the peripheries of the cities are only able to accommodate a large portion of lower mandate facilities and industrial work (Behrens and Robert-Nicoud, 2014). In addition, these smaller municipalities are often under-resourced and are surrounded by areas that have high levels of poverty and deprivation.
As it stands, an approximate 66% of South Africans are living in urban areas, with the expectation that eight in ten people will be living in urban areas by the year 2050. This not only means that the demand for infrastructure and housing will increase rapidly, but the cost of living will also increase for the average South African. Though urbanisation is the most convenient instrument currently being used to accelerate the rate of growth in developing countries by means of (i) driving economic growth, (ii) sustaining larger and more productive populations, (iii) sourcing higher means of income, new and diversified engines of growth need to be considered. The results of having cities that are too urbanised may have negative externalities that may affect negatively on rural economies, whose role is to provide economic sustainability and food security (Krishman, 2016). As such, other measures need to be considered if we are to sufficiently and effectively bridge the gap between rural economies and urban economies in order to ensure that growth takes place in a way that is beneficial to everyone.
Although cities are the dominant centres of economic activity and employment, and continue to attract maximum foreign investment; they are not performing to their potential or reaping the benefits of agglomeration due to prevailing shortages of energy and water infrastructure, transport congestion and deficits in education and skills (Turok, 2012). This is in addition to creating poverty traps on the peripheries of the cities, which results in favouritism for road-based transport – private cars and minibus taxis (Turok, 2012). To ensure that rural economies are not left behind in this fast paced economy, we need to consider redeveloping rural areas into sustainable communities that can support themselves economically (Gopaul, 2009; Krishman, 2016).
Poverty and Inequality in Rural Areas
Households that have high levels of poverty and inequality are largely black or coloured communities who tend to reside on the periphery of the cities, thus, a high level of vulnerability is usually observed in some areas that are remote and isolated from the main cities (Burger, et al, 2017). High levels of unemployment are largely concentrated among the poor people in rural areas and continues to remain a core challenge in the South African economy with a 238% growth from 1 703 863 in 1994 to 5 752 632 in 2016 (Dube, das Nair, Nkhonjera, and Tempia; 2018 Quantec, 2018). According to Ozler and Hoogeveen (2005), South Africans are neither separate, nor are we equal in post-Apartheid South Africa. The authors make this statement because the question of whether the economic inequalities of the apartheid era have faded remains, especially with the high levels of poverty and inequality that this country still faces in the rural areas.
Poverty is at an all-time high in South Africa and is highly concentrated within the African race, women, rural areas and the youth (Triegaardt, 2006; Woolard, 2012). Statistics show that Africans account for 95% of the poor population and a large percentage of them reside in former homelands, rural areas and townships households (Woolard, 2012). It is also important to note that poverty is closely linked with the mortality rate. This stems from the fact that poor people have difficulties in accessing health care facilities seeing as they do not have the basic income for transport services, nutrition and clothing which further perpetuates the high levels of inequality (Woolard, 2012). Consequently, the unsatisfactory living conditions continue to intensify the high poverty levels, which further exclude and marginalise poor people from participating in the economy (Triegaardt, 2006; Woolard, 2012). As such, agriculture presents opportunities of job creation, particularly in rural areas (Dube, et al, 2018). As a labour-intensive and rural industry, agriculture makes a contribution of 10% to total employment. However, a slight decline has been observed between the period of 1994 and 2016 – from 12 percent to 6 percent (Dube, et al, 2018).
How Can Agriculture Help Eliminate Poverty and Deprivation?
In rural areas all over the world, agriculture represents the principal land use and is a major element of the practicality of rural areas. Rural communities can be developed to increase their competitiveness in agriculture. The in situ urbanisation case mentions to how rural areas have to transform themselves into urban or quasi-urban ones with little geographical relocation of the residents; in the case of South Africa, this can be achieved through agriculture. Farming and related undertakings primarily encompass the basic fabric of rural life, contributing meaningfully to the overall state of rural areas by facilitating and creating employment, business prospects, infrastructure and quality of the environment. This can be a driving force for economic growth and can have lasting impacts on the overall community.
In South Africa, agriculture is a twofold production system that comprises of large-scale commercial farmers and small-scale farmers (Dube, et al, 2018). As it stands, agricultural production remains concentrated on field crops given their prominence in determining national food security. However, the growth in South Africa’s agriculture sector –the fruit sector and small-scale farmer participation in particular – is restricted by insufficient infrastructure; mainly ripening facilities, pack-houses and cold storage facilities (Dube, et al, 2018). This limitation causes costly delays, limits entry into the formal sector and hinders expansion into export markets.
Government or private sector needs to intervene by initiating and constructing capabilities in agriculture and agro-processing if these small-scale manufacturers do not have the means to get their products to final consumers (Dube, et al, 2018). What will ensure success in this initiative is linking farmers with large producer-exporting companies that already have access to infrastructure and international markets (Dube, et al, 2018). The government can then incentivise large producer-exporting companies to collaborate with minor producers. In return for large-scale companies lengthening technical services and information on production and standards to small-scale farmers, the large companies can be offered tax breaks, grants for investments in storage and cold chain amenities or support with raising funds. This initiate is one that not only benefits the small-scale farmers, but also the capability to have spill over effects that will benefit the whole economy.
Rural areas undoubtedly have the potential to lead to great economic growth; however, this reality will only be possible if skills uplifted and investment in R&D (research and development) is prioritised. The results of investing in rural economies will have spill over effects and positively impact on urban areas, while creating employment in the peripheries of the country. With a highly urbanised country as South Africa, it is crucial that we look into other alternatives which will not only benefit the country as a whole, but also have an undeniable impact that can bridge the gap between rural and urban areas.
Competitive agriculture in rural communities, particularly when supported by technological platforms can drive economic growth – an example of this is the Khula app. Khula is a farming app founded by Karidas Tshintsholo with the aim of assisting emerging farmers in finding their feet. To date, 175 farmers are currently using it, and this has ensured that famers who were initially unable to access the formal markets can connect with suppliers. The purpose of the app is not only to assist small-scale farmers, but to assist with alleviating poverty and ensuring that young entrepreneurs have an opportunity to make a decent living.
With such great innovations taking place in the country, the possibilities of the kind of development that can be fostered in rural areas are endless. Indeed South Africa’s developmental woes can only be resolved from within; through South African ingenuity, and modulation of the experiences, technologies and investment of external partners.
Russia and Angola: Stuck Between Diplomatic Rhetoric and Business Reality
Russian President Vladimir Putin held talks at the
Kremlin with President of Angola leader João Lourenço on strengthening
cooperation in trade, the economy and culture, as well as current international
and regional matters.
“Angola is a reliable and old partner. We need to consider what we need to do, without delay, to stimulate our trade and economic ties. There are interesting fields of activity, such as the diamond industry, fisheries and space exploration. There are also cultural spheres, such as education and the training of personnel,” Putin told the Angolan President at the meeting.
On his part, the Angolan leader João Lourenço added: “We have come to Russia on an official visit to strengthen our ties and cooperation and, if possible, to promote interaction between our countries. Russia is doing splendidly in the spheres of mineral resources, education, healthcare and defence. But we would like to know about Russia’s potential in other fields so we can promote cooperation in these areas of the Angolan economy.”
He informed further that his opening speech at the Angola-Russia Forum in Moscow was designed to attract the interest of Russian business people to investing in the Angolan economy, and finally added “many countries are doing this, and we are confident that Russia can help with economic diversification.”
Putin and Lourenço signed a joint communique after their consultations. The number of bilateral documents signed included the intergovernmental agreements on the peaceful exploration and use of space, and on fishery and aquaculture, as well as documents on cooperation in diamond mining and processing.
Consultations continue on draft agreements on cooperation in the peaceful use of outer space and nuclear energy, commercial shipping, mutual protection of classified information, simplified access to Angola’s ports for Russian warships, as well as agreements involving Russia’s Justice Ministry, Ministry of Industry and Trade and Communications Ministry, according to the Kremlin Press Service.
Before their final departure from the Kremlin, João Lourenço presented Vladimir Putin with a high Angolan award – the Order of Agostinho Neto, the first President of Angola – as a sign of gratitude for the years of support for the Republic of Angola.
Agostinho Neto Order is the highest distinction of the Angolan State with a single degree, granted to nationals and foreigners, in particular Heads of State and Government, political leaders and other heavyweight individuals.
Earlier at the Angolan-Russian Forum, the Angolan leader said that political and diplomatic relations with Russia were “excellent and privileged” but asked for more Russian private investment.
In his objective assessment about economic engagement by foreign players, only few Russian companies are comparatively operating in the Angolan market and limited solely to the exploration and production of diamonds, to the financial system and to the construction of hydroelectric dams.
“Angola wants to change that scenario through public-private partnerships or by creating Angolan-Russian companies with a focus on the manufacturing industry, agro-industry, fishing, energy, tourism, geology and mining, among other sectors,” he added.
Lourenço, however, recalled the long-lasting tradition of “friendship and solidarity” between the two countries, which have remained firm and strong despite the great changes the world has seen in the last decades. Angola counts with Russia’s solidarity and support at a time when it must guarantee economic cooperation and sustainable development, the president said.
Russia-Angolan interaction in the Kremlin has attracted attention of a former Russian diplomat. “Angola is a priority area of Russia’s cooperation in Africa. To begin with, that was the case since the time when Angola fought for its independence. Secondly, this is due to Angola’s huge economic potential,” explained Sergei Nenashev, who served as Russia’s Ambassador to Angola from 2007-2012.
“Now the country lives off oil, gas and, partially, diamonds. On the other hand, Angola has vast resources. Today, Russia and Angola maintain ties in all areas of interstate relations, including culture, education, personnel training, military-technical, financial and economic cooperation.” the former Ambassador told the Kommersant daily newspaper.
Russians like historical references. As expected, the local Russian media were awashed with articles highlighting Russia’s historical contributions to the independence of Angola, the development and strengthening of friendly relations with the country during the Soviet era. That Russia has promoted political dialogue, including the exchange of visits at the high levels, as well as trade and economic cooperation and cultural relations between the two countries.
Media reports offered a number of examples of many areas of cooperation. But Russian companies, at least over the past ten years, have made little results or impact on development of the country. Alrosa is involved in diamond mining in Angola’s largest Catoka deposit. Global Resources is involved in geological prospecting. Rosneft has won a tender for working in Angola. Russia and Angolan companies are cooperating on high technology.
Itar-Tass reported that Russian truck-maker Kamaz may organize assembly of trucks in Angola and Russian Railways may participate in upgrading the rail infrastructure in this country. Russian Railways (RZD) in restoring and upgrading the railroad infrastructure are among looking-forward cooperation projects.
But, Professors Vladimir Shubin and Alexandra Archangelskaya from the Russian Academy of Sciences’ Institute for African Studies, have argued that “both Russia and Angola still need to be more strategic in aligning their interests, and more proactive in carving out efficient bilateral instruments and mechanisms in order to promote economic exchanges and reap the benefits of a fully-fledged partnership.”
Cooperation between Angola and Russia date back to 1976, when the two countries signed a treaty of friendship and cooperation. But official figures are still staggering, trade between the two countries stood at US$500 million in 2016, 15 times higher than that of 2012 (US$25 million).
Angola has diamonds, oil, gold, copper and a rich wildlife, forest and fossil fuels. Since independence, oil and diamonds have been the most important economic resource. It’s a member of the Southern African Development Community, an inter-governmental organization that has made its goal to further socio-economic cooperation and integration as well as political and security cooperation among 16 Southern African States.
The Republic of Angola is a country in south-central Africa, the seventh largest by territorial size and bordered by Namibia to the south, Democratic Republic of Congo to the north and Zambia to the east, and on the west the South Atlantic Ocean.
Russia and Angola: Cooperating On Trade, Arms Delivery and Natural Resource Exploration
Russia is ready to raise its full-fledged bilateral ties and strengthen multifaceted cooperation by signing a series of agreements with Angola, one of Russia’s key partners in the African region, during the meeting scheduled early April between President Vladimir Putin and Angolan counterpart Joao Manuel Goncalves Lourenco in the Kremlin, Moscow.
Putin has expressed his confidence that Joao Lourenco official visit marks a new stage in the development of bilateral relations between the two countries. Putin has had bilateral connectivity with this southern African country, for example, during the leadership of Jose Eduardo Dos Santos who visited in October 2006.
Russia-Angolan relations have been developing actively “on the principles of mutual respect, trust and sincere friendship.” It is worth saying that Russia and Angola successfully cooperate in resolving actual international and regional problems and in ensuring security, law and order in the world.
In July 2018, Vladimir Putin held a meeting with President of Angola Joao Lourenco on the sidelines of the BRICS Summit. “Russia and Angola have longstanding and friendly relations that we greatly treasure. We are actively cooperating in political matters, security, and at international organizations. Our trade is quite modest so far, but in general, we have good projects that can be implemented. Our military and technical cooperation is also developing,” Putin told his Angolan Joao Lourenco.
During the Cold War, Russia always supported the Angolan people and helped achieve what is now treasure most of all: independence. Even after independence, Angola has enjoyed political freedom for 42 years, Russia never turned its back on Angola; it always supported and helped us fight the apartheid regime, which was a threat to Angola and the entire African continent.
“Rest assured that the people of Angola will never forget the friendship between our countries that was forged in battle. Now, we are focused on development. We want our country to develop in all areas. Speaking about economic cooperation, we are counting on interaction with Russia. First of all, Russian enterprises work in our mining complex. But, we would also like Russian businesses to be represented in other industries,” Joao Lourenco, in his turn, told Putin.
Russia plans large-scale economic engagement with Angola. Last year February, during a working meeting between Vladimir Putin and Alrosa CEO Sergei Ivanov in Kremlin, it came out that Russia’s Alrosa plans to develop one of the largest diamond deposits, Luaxe in Angola. “We are currently conducting a feasibility study. We have met with the President of Angola. Everything is on schedule. I am certain it will be a significant asset that will help us maintain our leadership,” according to Sergei Ivanov.
Soon, the truth in his words comes to fruition. In March 2019, Joao Lourenco gave an exclusive interview to a Russian media, Itar-TASS, he outlined some of his plans. The Angolan leader hinted that his country was ready to undertake the building factories to manufacture Russian weapons and military equipment for the African market.
“As for our military and technical cooperation with Russia – it will continue and be deepened. We would like to evolve from our current state of purchasers of Russian military equipment and technologies towards becoming the manufacturers and having an assembly point of Russian military equipment in our country,” he told the news agency.
Russia and Angola have military and technical cooperation. In 2018, Russia agreed to supply arms and military equipment to Angola worth US$2.5 billion, including spare parts for the Soviet-made weaponry, light weapons, ammunition, tanks, artillery and multi-purpose helicopters.
Besides, there are a number of Russia companies interested in Angola. For example, Mazepin’s companies considers an important step building nitrogen fertilizer plant in Angola. Zarubezhneft, an intermediary for the state interests in the field of fuel and energy complex on the international arena, plans to work in the oil and gas industry – from exploration and field construction to the pipeline systems construction and supply of equipment to the oil facilities.
Zarubezhneft has sealed a memorandum of understanding with Angola’s authorities to cooperate when exploring and producing from crude oil fields of that African country. For this purpose, the consortium eyes the Atlantic shelf of Angola, expecting to produce from it in partnership with Angola’s Sonangol and Dark Oil Company, which licenses for the area.
On the other hand, it was also reported in March 2017 that Angola had given two Russian companies the green light to build a major refinery complex and railroad. The US$12bn mega project put forward by companies Rail Standard Service and Fortland Consulting Company, which have set up a consortium with local partners.
Gustavo Plácido Dos Santos, Researcher at the Portuguese Institute of International Relations and Security (IPRIS), wrote recently that Angola has been on the frontline of Russia’s expansion in sub-Saharan Africa. Luanda enjoys strong historical ties with Moscow. Although political ties have failed to translate into deeper commercial interactions, it is worth highlighting Angola’s potential for Russian companies, especially in terms of mineral resources.
According to him, Sub-Saharan Africa is set to produce more gas than Russia by 2040. Thus, the region becomes a viable alternative for the European Union’s aim of diversifying energy sources away from Russia. In this sense, given the geographic proximity, countries such as Nigeria would be in the front line to satisfy Europe’s diversification goals. However, instability in Nigeria and its neighborhood positions Angola — one of Africa’s most stable energy producers — as a viable alternative.
Interesting to recall that back in June 2009, Dmitry Medvedev and Jose Eduardo dos Santos also held bilateral talks. A joint communique issued following the talks sets out the priority areas for developing the partnership between the two countries. The sectors in question include mining, energy, transport, telecommunications, military-technical cooperation, health and education.
Both leaders then witnessed the signing of a number of bilateral agreements, in particular, an intergovernmental agreement on air transport links, an agreement on encouragement and mutual protection of investment, and the medium-term program for economic and trade, science and technology as well as agreements on cooperation in geology and higher professional education.
In addition, there was a contract signed for the building and financing of Angola’s national satellite communications and broadcasting system, AngoSat. Energiya corporation reaffirmed its intention to fulfill the contract that envisions creation of a satellite network for telecommunication and broadcasting in Angola.
This April, some of the large-scale economic and investment projects crystallized in the documents signed covering projects in energy, minerals exploration, and high technology, in particular building a satellite communications system, and that of economic cooperation to a new level. There are the desires and the possibilities, but the need to reflect on setting up new financial mechanisms, according to South African based Senior Analyst on African policy, Kelvin Dewey Stubborn.
In his discussion for this article, Dewey Stubborn acknowledged that there are various forms of cooperation two largest state-owned companies, Zarubezhneft and Sonangol. There are a number of projects to develop and find new hydrocarbon deposits. This is certainly of interest because of very big players in the oil market, but this does not mean that Russians cannot cooperate in this field. Regarding the overall situation, Africa is a continent developing very dynamically, a continent on the rise, and second, Africa today has powerful countries that have chosen their own development paths.
Experts, such as Professors Vladimir Shubin and Alexandra Archangelskaya, Institute for African Studies in Moscow, have also argued that “both Angola and Russia still need to be more strategic in aligning their interests, and more proactive in carving out efficient bilateral instruments and mechanisms in order to promote economic exchanges and reap the benefits of a fully-fledged partnership.”
According to Wikipedia, compared to the Soviet era, trade between Russia and Angola is still minimal. In 2016, exports from Russia to Angola amounted to US$567.9 million and Angolan exports to Russia amounted to just US$14.94.
Angola has diamonds, oil, gold, copper and a rich wildlife, forest and fossil fuels. Since independence, oil and diamonds have been the most important economic resource. The Republic of Angola is a country in south-central Africa, the seventh largest by territorial size and bordered by Namibia to the south, Democratic Republic of Congo to the north and Zambia to the east.
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