In the film, Mazrui shows how European colonialism destroyed Africa’s ability to make its own things- a trick he termed as Predatory capitalism.

He gives the example of the Balunda, the Baluba and the Basanga people of what is today the DR Congo, who used clay produced by termites to smelt copper from which they made all manner of farming implements, weaponry and even decorations.

However, the coming of Western imperialism through predatory capitalism and appropriation of resources killed local industries.

“…and then the Europeans came. Did they want to learn from the technology they found here? Oh no! At least the Baluba and the Balunda had consulted the technology of the termites and benefited from it. But European technology was more arrogant more self-confident and less compromising. It abolished the old technological order and in its wake it left new forms of desolation in Africa.”  Mazrui said.

As Africa is now too good to ignore, global economic giants such as China, United States, France and the United Kingdom scramble for its share.

Among the four, China is coming out strong just like the European technology.

A case in point is two months ago when Investors at the Nairobi Securities Exchange incurred a loss of Sh118.7 billion as a result of tension in global trade, sparked by looming trade war between the U.S. and China.

According to Kenyas Central Bank Weekly statistical bulletin,  all indices and market capitalization declined, slowing post dividend growth momentum when the bourse recorded an equity turnover growth of 46.82 percent. 

So how and why, are they doing it?

A story is told in the Financial Times of how China set its foot in Africa way back in the 15^th century when shipwrecked sailors from the fleet of Zheng landed in an island off the northern coast of Kenya Pate Island.

The Chinese explorers reached the east coast 500 years ago swapping Chinese treasures with African exotica such as Ivory Ostriches and Zebra’s.

The contact was later consolidated under Mao Zedong with anti-colonial solidarity and the construction of engineering works, notably the 1,860km Tanzam railway linking Zambia with the Tanzanian coast.

Fast forward to today, the Asian economic powerhouse is undertaking the China Belt and Road Initiative to connect Asia, Africa and Europe.

It is a state-backed project for global dominance aimed at connecting China to 65 other countries that account collectively for over 30 percent of global GDP, and  62 percent of the world population.

Monetary-wise, Chinas debt held by Africa stands stands at $143 billion up from $50 billion in 2006 atleast according to Kenyas Standard Media.

This is exclusive of the $60 billion China’s President Xi Jinping pledged to African governments during the recently held Forum on China-Africa Cooperation (FOCAC) summit in Beijing.

The pledge is to be given as $20 billion in new credit lines, $15 billion in foreign aid: grants, interest-free loans and concessional loans, $10 billion for a special fund for development financing and $5 billion for a special fund for financing imports from Africa.

Jinping also urged Chinese private companies to invest not less than $10 billion in Africa in the next three years.

According to data from the China Africa Research Initiative, China has disbursed loans to atleast 48 African countries. Angola is the top recipient of the Chinese loans, with $42.8 billion disbursed over 17 years.

Ethiopia follows in second position with $13.7 billion, Kenya is third at $9.8 billion.

The East African nation currently owes the Asian country $5.5 billion slightly below debt to World Bank that stands at  $5.8 billion.

The two lenders alone now account for about one fifth of Kenya’s total public debt load, which has already crossed the $50 billion mark.

In fourth and fifth position is the Republic of Congo and South Sudan owing the Chinese $7.42 and $6.49 billion respectively.

A majority of the lending is used for infrastructure development.

Sri Lanka Example

It is said that when a deal is too good, we should think twice.

This is exactly where Africa, once labelled a dark continent by the West is. Its sweet-sour position has seen some of its countries surrender its precious assets to repay the debts.

For instance, In December 2017, Sri Lanka formally handed over Hambantota Port to China on a 99-year lease after struggling to pay loans from the Chinese nation.

Reports by the New York Times, noted that Sri Lanka politicians said the Hambantota deal valued at $1.1 billion, was necessary to chip away the debt estimated to be more than $8 billion.

Word on the streets early last month was that China, famous for its iconic great wall would lake over Zambia’s National electricity supplier- ZESCO as a guarantee to its debt.

However the Edgar Lungu led Nation has since denied the rumors.

Even as China continues to play santa clause to desperate African Nations, the United states considered Africa’s largest donor is not becoming uncomfortable.

In August, US Senate raised concern about high infrastructure debt issued to developing countries by China under the Belt and Road Initiative. It termed Chinese funding as ‘predatory’.

A letter dated August 3, posted on Georgia senator David Perdue’s website, the senate raises concern about China’s debt trap diplomacy and negative effects of BRI to developing countries which latter turn to IMF for bailouts.

“We write to express our concern over bailout requests to the International Monetary Fund by countries who have accepted predatory Chinese infrastructure financing. The financial crisis illustrates dangers of China’s debt trap diplomacy to countries and security threats to US,’’ the letter said in part.

According to the letter, 23 out of 68 countries currently hosting BRI funded projects are at risk of debt distress while future BRI related financing in eight of those countries raises concerns about sovereign debt sustainability.

CARI reveals that the US disbursed $12 billion just to Sub-Saharan Africa in 2017, and $250 million to North Africa.

However Deborah Brautigam, CARI director says that “This could change under the Trump administration’s budget cuts.”

On the other hand, in her visit to Africa in August, UK Prime minister Theresa May pledged pledged $5.2 billion in support for African economies, to create jobs for young people.

In addition she pledged a shift  in aid spending to focus on long-term economic and security challenges rather than short-term poverty reduction.

Data from the United Nations Conference on Trade and Development shows that UK direct investment in Africa was $55.51 billion compared with $57.59 billion from the US.

As the scramble continues, the rest of the world can only watch if African Nations and its leaders will resist the easy to get Chinese loans or (just like T’challa in the fiction movie Black panther) it will rally its muscles and release full power of Black Panther to defeat its foes and secure the safety of its people.

Most of the major countries in Africa gained independence in the 1950s and 1960s. Others like the Republic of South Africa got independence from the white minority rule as late as 1994 and are yet to find their bearing in order to make any significant progress. Politics (poor governance), corruption, education, health and tribalism have been known to be some of the main causes of Africa’s economic stagnation, but with more and more Africans gaining access to higher education, better health facilities, and growth of democracy, Africa is finally getting ready to take its place on the world stage.

Africa is endowed with alot of natural resources that for a long time has been exploited by the western world while its inhabitants wallowed in poverty. These include Bauxite from Guinea which is the world’s fifth largest producer after Australia, China , Brazil and india, Uranium from Namibia, Niger and South Africa with Namibia and Niger ranking fourth and fifth place respectively in the world production. Gold, with South Africa’s Witwatersrand Basin holding the world’s biggest gold reserve. Gas, which is mainly found in South africa, Mozambique, North African countries such as Egypt, Libya Algeria and in Nigeria. Infact, Africa accounted for 60% the world’s gas discovered in 2013. Other resources include Diamond where Africa accounts for about half of the world’s produce and is mainly found in South Africa, Angola, Botswana, Namibia and the Democratic Republic of Congo. Oil mainly from Nigeria , Libya, Algeria, Egypt and Angola and many others African countries including Kenya where  extraction is yet to begin.

There are many international companies such Tullow oil that are making in -roads to invest in building the necessary infrastructure in preparation for the take off.in addtion, countries like China foron are also investing huge amounts of money in building infrastructure mainly roads, railways and Airports across African, some of them big enough to cover entire regions such as East Africa where they are currently putting up the famous $4 Billion SGR Standard Gauge Rail, 90% of which is funded by China. The SGR has so far been partly completed between Mombasa and Nairobi and is expected to extend to Kampala, Uganda and eventually to Rwanda knitting together swaths of the east African Community’s emerging trade bloc.

These infrastucture once ready will sporadically propell economic development in the continent making Africa the next best frontier for potential investors after Asia. Infact the European Union is making strides in cementing the relationship with some of its existing African partners such as South Africa, Nigeria, Ethiopia and Kenya among others and even inviting them to sit at the negotiating table as was evidenced in the G7 meeting held on the 28th may 2017 in Sicily Italy. “Perhaps the choice to be in Taormina and Sicily says much about how important our relations are with Africa,” Italian Prime Minister Paolo Gentiloni said in his opening remarks.“Today our discussion on Africa will focus on the need for a partnership across all sectors with innovation and development our core objective,” he added.

If the projections by PwC are anything to go by, then South Africa Nigeria And Egypt will be shifting their positions to become some of the worlds strongest Economies with most Western Economies either falling behind or making insignificant progress. PwC Put Nigeria at position 14 from its current position at number 2. Egypt is expectect rise to position 15 from its current position at number 21 with an estimated annual population growth of 1.4% and finally South Africa which is expected to rise to position 27 from its current position 29 with it’s population expected to grow by 0.5% per year by 2050.

The report suggests that most western economies are likely to slow down mainly because of unfavourable demographics as in the case of Italy and Germany which are estimated to move drastically from thier current position 5 to position 9 for Germany and position 12 to position 21 for Italy . The USA will be replaceds by India from position 2 to position 3 even though it will still keep it’s place as one of the largest and most important world Economic powers.

When this happens, eyes will turn to African, with Africans themselves opting to look for opportunies closer to home within the contentinent thereby changing the current trend that is robbing Africa of its finest skilled labour which will be in high demand in order to facilitate the expected growth. Most skilled labour from the western countries with the relevant experties may also end up looking to Africa for well paid jobs.

Some of the Key Infrastructural Projects in Africa include:

Transport costs are 100 per cent higher in Africa compared to other continents. Only a third of the population have access to electricity—in rich countries this rises to between 70-90 per cent. Just 6% have access to the internet, compared to 40 per cent in other developing nations. Despite its rich water resources food security is a constant thorn in the flesh, but only 5 per cent of agriculture is under irrigation.

Such infrastructure gaps continue to weigh down the continent, reducing the dividend from its brisk growth of the last two decades. But some countries—and mega investors too—are making huge progress in reducing the size of the deficit.

It is for this reason that a number of big infrastructural projects have been initiated and built in Africa by International economic and trade partners. They vary from, railway lines, power projects, water dams to roads. This paper will highlight just a few, both complete and ongoing.

The Grand Ethiopian Renaissance Dam : The Ethiopian government is currently constructing the Grand Ethiopian Renaissance Dam (GERD). Once complete, GERD will be the largest hydropower facility in Africa. It will add about 6 000 Mega Watts to the national grid. This is nearly triple the country’s current electricity generation capacity – and represent a potential economic windfall for the government.

Ethiopia has not succeeded in getting international/outside financing for the project, in part due to its lack of competitive bidding for the project’s construction contract. The project therefore is 100 per cent sponsored by the Ethiopian government. It says it will sell dam bonds directly to the citizens to realise this.

Most public workers in Ethiopia earn relatively low wages and face a significantly high cost of living.  Hence, they are not likely to be able to sacrifice that much of their salaries to invest in this national project.  Nevertheless, many of them have been observed purchasing the GERD bonds, primarily because of pressure from the government and the belief that participation in this national project is a show of one’s patriotism.

The Trans-Kalahari Railway: Namibia and Botswana took the first steps in 2015 to establish a multi-billion dollar railway project to link Botswana’s rich coal fields to the Namibian coast. The project, which is still ongoing, is meant to be developed by the private sector in the two countries. Private companies will have to gather capital for the project and not the two governments.

Although several media reports from Botswana have said that the government may have changed its mind about supporting the project, it is said the project is more beneficial to Botswana’s coal exports through Namibia.

Financing: Botswana and Namibia have already signed a bilateral agreement for plans to develop the 1 500-kilometre railway for transporting coal exports to Walvis Bay that will cost US $15 billion. Once the two countries resolve outstanding issues, this will make way for funding initiatives and tenders. In addition, China and India’s demand for the more than 200 billion metric tonnes of coal in Botswana’s central Karoo basin could boost economic growth in the landlocked southern African nation.

Lake Turkana Wind Power Project : Kenya with 11 eleven projects, has the greatest number of large infrastructure projects in East Africa equivalent to 26 per cent of the total. Lake Turkana Wind power project, a renewable energy project is one of them. It aims to provide 300MW of reliable, low cost wind energy to Kenya’s national grid, equivalent to over 20 per cent of the current installed electricity generating capacity. The wind farm site is located in northern Kenya, approximately 50km from the Capital, Nairobi. The Project will comprise a wind farm, associated overhead electric grid collection system and a high voltage switchyard. The Project also includes rehabilitation of an existing road which covers a distance of approximately 200km.

Financing: The total project cost is estimated at US$680 million and includes the cost of the envisaged 400 km transmission line from Lake Turkana to a sub-station near the capital Nairobi, as well as the cost of upgrading 200 km of roads and various bridges. The project will be financed through equity debt (25 per cent), mezzanine debt (5 per cent) and senior debt (70 per cent). As the mandated lead arranger and senior co-lender, Africa Development Bank (AfDB) will provide a long-term senior loan of USD 150 million.

Coastal Railway – Nigeria: This is the largest ever contract awarded to a Chinese company in Africa. The project is worth $12 billion. The deal was signed between the Federal Republic of Nigeria and China Railway Construction Corp (CRCC) in 2014. The railway is 1,402 km in length and upon completion (final phase ongoing), it will link Lagos, the nation’s economic capital, with the eastern city of Calabar, passing through 10 states. It will also link cities with the oil rich state of Niger Delta.In the last 20 years, Chinese companies have built and upgraded around 4500km of railway in Nigeria.

Bagamoyo Port – Tanzania: The project is worth $7 billion. It is funded by China Merchants Holdings International and State Government Reserve Fund of the Oman government. The port is being built in Bagamoyo, a coastal town in Tanzania. Upon completion, it will be able to handle about 20 million containers annually and will be the largest port on the East African coastline, bigger than the Port of Mombasa in Kenya.  Its construction started in October, 2015, but was halted earlier 2017 due to financial constraint facing the Tanzanian government.

Grand Inga lll Hydropower Project Dam, DRC: This is one of the projects that redefine the meaning of a ‘mega project’ in Africa. It can potentially power 40 per cent of the continent. When completed, this dam will be the largest of its kind, with double the capacity of the Three Gorges dam of China (the current largest in the world). The ongoing project is estimated to the tune of US$100 billion from the World Bank.Once Inga III is completed, the DRC will then begin building the Grand Inga Dam which is expected to be completed by 2025.

Such infrastructure gaps continue to weigh down the continent, reducing the dividend from its brisk growth of the last two decades. But some countries—and mega investors too—are making huge progress in reducing the size of the deficit.

It is for this reason that a number of big infrastructural projects have been initiated and built in Africa by International economic and trade partners. They vary from, railway lines, power projects, water dams to roads. This paper will highlight just a few, both complete and ongoing.

The Grand Ethiopian Renaissance Dam

The Ethiopian government is currently constructing the Grand Ethiopian Renaissance Dam (GERD). Once complete, GERD will be the largest hydropower facility in Africa. It will add about 6 000 Mega Watts to the national grid. This is nearly triple the country’s current electricity generation capacity – and represent a potential economic windfall for the government.

The benefits for Ethiopia and for many electricity-importing countries in East Africa are clear. However the implications for downstream countries aren’t all positive – and need to be better understood.

In 2016, about 30 per cent of Ethiopia’s population had access to electricity and more than 90 per cent of households continued to rely on traditional fuels for cooking. Traditional fuels can cause respiratory infections, and according to the World Health Organisation (WHO), acute lower respiratory infection is the leading cause of death in Ethiopia.

Financing

Ethiopia has not succeeded in getting international/outside financing for the project, in part due to its lack of competitive bidding for the project’s construction contract.

The project therefore is 100 per cent sponsored by the Ethiopian government. It says it will sell dam bonds directly to the citizens to realise this.

Most public workers in Ethiopia earn relatively low wages and face a significantly high cost of living.  Hence, they are not likely to be able to sacrifice that much of their salaries to invest in this national project.  Nevertheless, many of them have been observed purchasing the GERD bonds, primarily because of pressure from the government and the belief that participation in this national project is a show of one’s patriotism.

The Trans-Kalahari Railway

Namibia and Botswana took the first steps in 2015 to establish a multi-billion dollar railway project to link Botswana’s rich coal fields to the Namibian coast.

The project, which is still ongoing, is meant to be developed by the private sector in the two countries. Private companies will have to gather capital for the project and not the two governments.

Although several media reports from Botswana have said that the government may have changed its mind about supporting the project, it is said the project is more beneficial to Botswana’s coal exports through Namibia.

Financing

Botswana and Namibia have already signed a bilateral agreement for plans to develop the 1 500-kilometre railway for transporting coal exports to Walvis Bay that will cost US $15 billion.

Once the two countries have resolved all outstanding issues, this will make way for funding initiatives and tenders.

Chinese and Indian demand for the more than 200 billion metric tonnes of coal in Botswana’s central Karoo basin could boost economic growth in the landlocked southern African nation.

Lake Turkana Wind Power Project

Kenya with 11 eleven projects, has the greatest number of large infrastructure projects in East Africa equivalent to 26 per cent of the total. Lake Turkana Wind power project, a renewable energy project is one of them.

It aims to provide 300MW of reliable, low cost wind energy to Kenya’s national grid, equivalent to over 20 per cent of the current installed electricity generating capacity.  The wind farm site is located in northern Kenya, approximately 50km the Capital Nairobi.

The Project will comprise a wind farm, associated overhead electric grid collection system and a high voltage switchyard.    The Project also includes rehabilitation of an existing road which covers a distance of approximately 200km.

Financing

The total project cost is estimated at US$680 million and includes the cost of the envisaged 400 km transmission line from Lake Turkana to a sub-station near the capital Nairobi, as well as the cost of upgrading 200 km of roads and various bridges.

The project will be financed through equity debt (25 per cent), mezzanine debt (5 per cent) and senior debt (70 per cent). As the mandated lead arranger and senior co-lender, Africa Development Bank (AfDB) will provide a long-term senior loan of USD 150 million.

Coastal Railway – Nigeria

This is the largest ever contract awarded to a Chinese company in Africa. The project is worth $12 billion. The deal was signed between the Federal Republic of Nigeria and China Railway Construction Corp (CRCC) in 2014. The railway is 1,402 km in length and upon completion (final phase ongoing), it will link Lagos, the nation’s economic capital, with the eastern city of Calabar, passing through 10 states. It will also link cities with the oil rich state of Niger Delta.

In the last 20 years, Chinese companies have built and upgraded around 4500km of railway in Nigeria.

Bagamoyo Port – Tanzania

The project is worth $7 billion. It is funded by China Merchants Holdings International and State Government Reserve Fund of the Oman government. The port is being built in Bagamoyo, a coastal town in Tanzania. Upon completion, it will be able to handle about 20 million containers annually and will be the largest port on the East African coastline, bigger than the Port of Mombasa in Kenya.  Its construction started in October, 2015, but was halted earlier 2017 due to financial constraint facing the Tanzanian government.