Connect with us

Africa

Djibouti’s “International” Free Trade Zone is really just for one country

Published

on

For the past quarter century, Djibouti has flourished as the Horn of Africa’s most strategic port, serving as a lifeline for landlocked Ethiopia’s $3.13 billion in exports at the mouth of the Red Sea and Gulf of Aden. So on the face of it, the Phase 1 opening last month of the Chinese funded, multi-billion dollar Djibouti International Free Trade Zone (DIFTZ) appears to position the tiny nation as a growing trading hub for the entire East African region. But is that just wishful thinking?

The DIFTZ is a sprawling complex meant to house four industrial clusters specializing in trade and logistics, export processing, business and financial support services, as well as manufacturing and duty-free merchandise retail. It’s touted to provide employment for tens of thousands and solidify Djibouti’s reputation as a business-friendly place.

The geopolitical calculations behind China’s generous financing in Djibouti are part of its Belt and Road Initiative, an aggressive economic plan designed to open up and create new markets for Chinese goods and technology by strengthening the traditional Silk Road trade route. That rationale is rooted in the fact that Ethiopia uses ports in Djibouti for about 95 percent of its external trade and pays around $1.5-2 billion in port fees. With the Ethiopian economy growing fast, obtaining better access to Addis Ababa is a crucial objective for the Chinese leadership.

But Djibouti should hold the champagne for now. Despite the glowing press releases, there are at least three major partners who have serious reasons for doubting the trustworthiness of the country’s leaders and its viability as a new axis for regional trade.

First, many U.S. analysts are expressing concern that the DIFTZ is financed by loans from state-backed financial institutions from China, dulling Djibouti’s triumphant expansion as a critical line between the export-rich Ethiopia and vital shipping lanes. In East Africa, the Export-Import Bank of China is the major investor in at least eight infrastructure projects, including an ongoing $322 million water pipeline project from Ethiopia and the $490 million Addis Ababa-Djibouti railway. Yet critics have described the Belt and Road Initiative as a method of entrapping poor countries to Beijing as “economic vassals.” For instance, a major report from the Washington-based Center for Global Development released in March cautions that the Chinese iniatives raise “serious concerns about sovereign debt sustainability in eight countries it funds,” including Djibouti.

Even more worrisome, Chinese commercial investment in Djibouti has been paralleled by the construction of a major Chinese military base, a mere six miles from the United States’ long-established Camp Lemonnier — the only permanent U.S. military base in Africa. The Chinese base is the first outside its borders and gives Beijing a military foothold on the African continent, an outcome that previously led to American political and military leaders pressuring the Djibouti government to block the construction of the base. U.S. military experts have expressed concern that a Chinese presence would hinder U.S. interests and its counter-terrorism missions, tensions that remain as American allies France, Japan and Italy also have bases of various sizes and capabilities in Djibouti.

The second reason: Ethiopia. Until a few months ago, Djibouti represented the country’s only way to access the sea and, as a stable partner, reaped the benefits of a near-monopoly on thriving Ethiopian trade. While ports exist in Sudan, Somaliland, and Eritrea, Djibouti’s developed facilities, political stability and investment-friendly atmosphere have proven more attractive than anywhere else in the region.

Now, however, a new player is coming to town: according to reports from Bloomberg, Eritrea is now mulling building a port on its coastline to export potash from its own mines as well as from Ethiopia. The port will be based at the Bay of Anfile, close to Eritrea’s potash mine at Colluli, which contains large quantities of potash that can be used as fertilizers for fruits, vegetables, and coffee trees. Most significantly, the development follows a historic rapprochement between Ethiopia and its former province of Eritrea in July, which has left Djibouti scrambling to protect its market share.

The third issue: the United Arab Emirates (UAE). Djibouti illegally seized a leased port container terminal from the UAE-based DP World company over a dispute dating back to at least 2012. Earlier this month, Dubai successfully sued the Djibouti government in a London-based international arbitration court over the seizure. Eyebrows were raised when Djibouti issued a statement dismissing the ruling as inconsequential, and the country is now trying to negotiate damages. But the scandal has already cast a shadow over Djibouti with potential foreign investors, as large shipping clients such as DP World publicly advocate for an additional 10 to 12 ports from Sudan to Somalia and continue to make a number of investments in East Africa, including in Somaliland.

The Emiratis also have close ties to Eritrea, where they established a naval base in 2015 that has been used to support the Saudi-led war against Houthi rebels in Yemen. And it was the UAE that helped broker a peace deal between Eritrea and Ethiopia, a further indicator that UAE businesses may favor Eritrean ports over those in Djibouti.

Is Chinese investment in the DIFTZ and other infrastructure projects enough to make up for all of this disruption? Perhaps not. Beijing had already started to cool on Ethiopia as an investment destination, and if the Ethiopian market finds multiple alternative ports in Eritrea or Somaliland, the promises of a thriving DIFTZ may end up being little more than hype.

Samantha is a freshly minted graduate in International Relations based in Cairo, currently working as a research assistant in a small think tank looking at development and inequality in Africa

Continue Reading
Comments

Africa

African Union’s Inaction on Ethiopia Deplorable – Open Letter

Published

on

The crisis in northern Ethiopia has resulted in millions of people in need of emergency assistance and protection. © UNICEF/Christine Nesbitt

A group of African intellectuals says in an open letter that it is appalled and dismayed by the steadily deteriorating situation in Ethiopia. The letter, signed by 58 people, says the African Union’s lack of effective engagement in the crisis is deplorable. The letter calls on regional bloc IGAD and the AU to “proactively take up their mandates with respect to providing mediation for the protagonists to this conflict”.

The letter also asks for “all possible political support” for the AU’s Special Envoy for the Horn of Africa, Olusegun Obasanjo, whose appointment was announced on August 26, 2021. A United Nations Security Council meeting on the same day welcomed the former Nigerian president’s appointment.

Earlier in August 2021, UN  chief Antonio Guterres appealed for a ceasefire, unrestricted aid access and an Ethiopian-led political dialogue. He told the council these steps were essential to preserve Ethiopia’s unity and the stability of the region and to ease the humanitarian crisis. He said that he had been in close contact with Ethiopian Prime Minister Abiy Ahmed and had received a letter from the leader of the Tigray region in response to his appeal. “The UN is ready to work together with the African Union and other key partners to support such a dialogue,” he said.

August 26, 2021 was only the second time during the conflict that the council held a public meeting to discuss the situation. Britain, Estonia, France, Ireland, Norway and the United States requested the session.

Fighting between the national government and the Tigray People’s Liberation Front broke out in November 2020, leaving millions facing emergency or crisis levels of food insecurity, according to the United Nations. Both sides have been accused of atrocities.

Continue Reading

Africa

Africa: The G20 Must Recommit to Covax

Published

on

It is one year since the international community gave its backing to the COVID-19 Vaccine Global Access (COVAX) facility to lead a worldwide effort to end the acute phase of the pandemic. The initiative aimed to ensure that every country, and not just those with sufficient money or resources, could access life-saving vaccines once they became available. As G20 health ministers prepare to meet in Rome on September 5-6, they are in a position to ensure that COVAX fulfills its mission.

A year ago, no one knew when or even if it might be possible to develop a safe and effective vaccine against COVID-19, let alone the 20 that are available today. But since making its first international deliveries in February, COVAX a partnership established by the Coalition for Epidemic Preparedness Innovations, the World Health Organization, UNICEF, and Gavi, the Vaccine Alliance has delivered more than 235 million vaccine doses to 139 countries, and expects to deliver another billion doses in the fourth quarter. Only China, India, and the United States have delivered more. This start to the largest and most complex vaccine rollout in history has given hope to millions of people and laid solid foundations for how we respond to future pandemics.

Yet, so much more could, and should, have been achieved by now. It is unacceptable that only 1.8% of people in low-income countries have received their first dose of a COVID-19 vaccine, compared to 82% in high- and upper-middle-income countries. This shocking inequality is as economically senseless as it is destructive to human life, with the latest estimate of the cost of the slow rollout amounting to $2.3 trillion.

The world was woefully unprepared for a pandemic, and this is reflected in the challenges COVAX has faced. By the time initial funding arrived, wealthy countries had already locked up early vaccine supplies. Export bans affecting key suppliers, and difficulties experienced by many manufacturers in scaling up production to the required level, also undermined COVAX’s ability to access doses early.

Given increasing global vaccine inequity and the rise of new, more contagious coronavirus variants, we must put these challenges behind us. Thanks to the support of almost all G20 governments, alongside that of foundations and private businesses, COVAX has now raised nearly $10 billion and secured more than 600 million donated doses. All the preparations are in place for the most comprehensive vaccination effort that the world has seen.

Based on the committed orders COVAX has placed with vaccine manufacturers and the additional donations, hundreds of millions of new doses should now be available each month. We need to make sure they reach poorer countries and get into people’s arms. To avoid further delays, and for the facility to succeed, we need support from G20 leaders in four key areas.

First, we need doses, and we need them now. The premise of COVAX was always that the facility should be able to negotiate and buy its own doses. With our early vaccine access compromised, donations have played a vital role in maintaining our ability to keep doses flowing to those most in need. Of the 600 million doses pledged to COVAX to date, 100 million have now been delivered. We need more, and soon, with longer shelf lives and greater certainty so that recipient countries have time to plan their rollout. This can be achieved without jeopardizing high-income countries’ national vaccination efforts.

We also need G20 leaders to support our call for transparency. COVAX has legally binding agreements with manufacturers for more than four billion doses, but has all too often faced delays in accessing them. Without greater clarity regarding firms’ order books, it is impossible to know whether these holdups are due to production challenges or preferential treatment for bilateral arrangements. Insisting that manufacturers are transparent about their order timelines can ensure a level playing field where no one particularly those living in developing countries gets bumped to the back of the vaccine queue because of another bilateral deal.

In addition to ensuring that manufacturers keep their commitment to COVAX, governments should make global vaccine access their highest priority. Countries with pending orders for doses that they currently do not need should allow COVAX to take their place in the queue so that we can get doses to needy countries now.

Finally, lower-income countries require continued financial and technical support for their COVID-19 vaccine rollouts. Strengthening national health systems will help these countries to ensure delivery of doses and mitigate the pandemic’s secondary effects, and will leave in place infrastructure critical to future global health security.

By recommitting to COVAX, G20 leaders will recommit to a multilateral solution that builds on the astounding scientific progress of the past year. Based on COVAX’s latest forthcoming supply forecast, when topped up with doses through bilateral deals, equitable COVID-19 vaccine access can protect up to 60% of the adult population in 91 lower-income countries. This would represent a huge step toward the WHO target of 70%, which is needed to suppress the coronavirus everywhere, and COVAX represents the best opportunity to achieve it.

Failure would mean more lives lost, broken health-care systems, even deadlier and more transmissible variants, and a pandemic with no end in sight. The G20 must not allow that to be an option.

Continue Reading

Africa

More African Countries Register Russia’s Sputnik Vaccine

Published

on

Africa Centres for Disease Control and Prevention (Africa CDC) is a specialized technical institution of the African Union (AU) that strengthens the capacity and capability of Africa’s public health institutions as well as partnerships to detect and respond quickly and effectively to disease threats and outbreaks, based on data-driven interventions and programmes.

During the outbreak of the coronavirus, the African Vaccine Acquisition Task Team (AVATT), was established by African Union, as a component in support of the Africa Vaccine Strategy and was endorsed by the AU Bureau of Heads of State and Government on 20th of August 2020.

Dr John Nkengasong, Director of the Africa Centers for Disease Control and Prevention (Africa CDC), has emphasized: “Africa has to team up with development partners to achieve its 60% continent-wide vaccination in the next two years. I think that is why we should as a collective of the continent, and of course, in partnership with the developed world make sure that Africa has a timely access to vaccines to meet our vaccination targets.”

An official media release in February 2021, the Africa Vaccine Acquisition Task Team from the African Union (AU) informed that Russia would supply and deliver 300 million Sputnik V vaccines to Africa. That step was intended to support African countries to attain their targeted immunization of 60% of the population by the year-end. That vaccine story disappeared, but instead what become so common is the speedy registration of Sputnik V on bilateral basis in various African countries.

According to the latest, Nigeria has become the 68th country in the world to approve the Russian vaccine. The use of the Sputnik V coronavirus vaccine has been approved in Nigeria, the Russian Direct Investment Fund (RDIF) said in an official statement.

“The Russian Direct Investment Fund (RDIF, Russia’s sovereign wealth fund) announces the approval of the Russian Sputnik V vaccine against coronavirus by the National Agency for Food and Drug Administration and Control of Nigeria (NAFDAC). Nigeria has become the 68th country in the world to approve the Russian vaccine. Total population of all countries, where Sputnik V is approved for use, now exceeds 3.7 billion people, which is nearly half of the global population,” the statement said.

“Nigeria is the most populous nation in Africa, and the approval of Sputnik V will provide for using one of the safest and most effective vaccines in the world. Sputnik V is based on a proven human adenoviral vectors platform and is successfully used in over 50 countries. Approval in Nigeria will make an important contribution to the country’s fight against the pandemic,” CEO of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev said.

Besides Nigeria, other African countries have registered Russia’s Sputnik V vaccine. Reportedly, the vaccine has been registered in Algeria, Angola, Djibouti, Egypt, Gabon, Ghana, Guinea, Kenya, Morocco, Namibia, Tunisia, the Republic of Congo (DRC) and Zimbabwe.

Russia’s drive to share Sputnik V vaccine, of course, offers a chance to raise its image and strengthen alliances in Africa. Ministry of Foreign Affairs of the Russian Federation has made efforts promoting the vaccine using all its channels. But supply and delivery have largely lagged behind, the pledges have simply not been fulfilled. Russian authorities have oftentimes said that they would step up efforts for fruitful cooperation in combating coronavirus in Africa.

Promising more than can be delivered appears to be a universal problem with coronavirus vaccines, and it is a real risk for Russia as well, said Theresa Fallon, Director of the Brussels-based Centre for Russia Europe Asia Studies. “They have won the gold medal for creating this very effective vaccine,” she said. “But the problem is how are they going to implement production and delivery?”

Russian Direct Investment Fund (RDIF), with profit motivation, has attempted supplying the Russian vaccines through, Sheikh Ahmed Dalmook Al Maktoum, from the Monarch family and a third party in Dubai, United Arab Emirates, to a number of African countries. For instance, the Republic of Ghana reportedly signed US$64.6 million contract for Sputnik V vaccine from Russia through Sheikh Ahmed Dalmook Al Maktoum. It was double the price from the producer as reported in the media.

On the other hand, Russian President Vladimir Putin has noted, in a speech early September, that advanced countries that produce vaccines against the coronavirus do little to protect humanity from the pandemic.

“The benefits of vaccination are enjoyed mostly by advanced economies. The bulk of the vaccines is made there, and it is used to protect their own population. But very little is being done to protect humanity in the broad sense,” Putin said at the plenary session of the Eastern Economic Forum in Vladivostok, the Far East of Russia. “This is very bad for the producers, because all this boomerangs around the globe. For instance, in Africa the level of protection with vaccines is minimal, but contacts with the African countries continue. There is no getting away from this. This infection will return again and again.”

According to an official release obtained late February, the Sputnik V vaccine the following advantages:

• Efficacy of Sputnik V is 91.6% as confirmed by the data published in the Lancet, one of the world’s oldest and most respected medical journals; It is one of only three vaccines in the world with efficacy of over 90%; Sputnik V provides full protection against severe cases of COVID-19. 

• The Sputnik V vaccine is based on a proven and well-studied platform of human adenoviral vectors, which cause the common cold and have been around for thousands of years. 

• Sputnik V uses two different vectors for the two shots in a course of vaccination, providing immunity with a longer duration than vaccines using the same delivery mechanism for both shots. 

• The safety, efficacy and lack of negative long-term effects of adenoviral vaccines have been proven by more than 250 clinical studies over two decades. 

• The developers of the Sputnik V vaccine are working collaboratively with AstraZeneca on a joint clinical trial to improve the efficacy of AstraZeneca vaccine. 

• There are no strong allergies caused by Sputnik V. 

• The price of Sputnik V is less than $10 per shot, making it affordable around the world. 

In February, peer-reviewed medical journal The Lancet published an analysis from Phase III clinical trial of the Russian vaccine, showing its 91.6-percent efficacy against symptomatic COVID-19. The Sputnik V vaccine was developed by the Gamaleya Research Institute of Epidemiology and Microbiology.

Sputnik V was registered in Russia on August 11, 2020 as the world’s first officially registered coronavirus vaccine. Russian vaccines have advantages as no deaths have been reported after vaccination with the Sputnik V, Alexander Gintsburg, Director of the Gamaleya Center, the vaccine developer, said and was reported by TASS News Agency. “As of today, no deaths after vaccination with Sputnik V have been registered,” he said.

Russian Direct Investment Fund (RDIF) is Russia’s sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management is based in Moscow.

In Africa, during first of September, the coronavirus-related death toll has topped 196,190, while more than 6.9 million recoveries have been reported. South Africa accounts for a majority of coronavirus cases and deaths across Africa – 2,777,659 and 82,261 respectively. The death toll in Tunisia climbed to 23,451, and 664,034 cases have been confirmed. Egypt recorded 16,736 deaths and 288,441 coronavirus cases.

In Sub-Saharan Africa, Ethiopia is ranked second to South Africa (308,134 cases and 4,675 deaths) and is followed by Kenya (235,863 cases and 4,726 deaths) and Nigeria (191,805 and 2,455). The total number of COVID-19 cases has reached almost 8 million in Africa, according to the World Health Organization’s (WHO) Regional Office for Africa.

Continue Reading

Publications

Latest

Southeast Asia12 mins ago

The new AUKUS partnership comes at the cost of sidelining France, a key Indo-Pacific player

Here is my quick take on the new AUKUS security partnership announced on Wednesday (September 15), by the leaders of...

Europe2 hours ago

Germany and its Neo-imperial quest

In January 2021, eight months ago, when rumours about the possibility of appointment of Christian Schmidt as the High Representative...

Health & Wellness4 hours ago

Moderna vs. Pfizer: Two Recent Studies Show Moderna to Be The More Effective One

The first study was published by medRxiv “The Preprint Server for Health Sciences” on August 9th, and compared (on 25,589...

Middle East6 hours ago

After 10 years of war in Syria, siege tactics still threaten civilians

The future for Syria’s people is “increasingly bleak”, UN-appointed rights experts said on Tuesday, highlighting escalating conflict in several areas...

South Asia9 hours ago

Misjudgements in India’s Afghan policy

India’s Afghan policy has always been obsessed with the desire to deny Pakistan the “strategic depth” that Pakistan, according to...

Africa Today10 hours ago

Republic of Korea offers support for smallholder farmers in Mozambique

The Korea International Cooperation Agency (KOICA) donated US$5.7 million through the World Food Programme (WFP) for a project to support...

Environment12 hours ago

Global Plastic Action Partnership Making an Impact in Fighting Plastic Pollution

The Global Plastic Action Partnership (GPAP) released its second annual impact report, which highlights strides made over the last two...

Trending