China’s development assistance to Kenya cannot be downplayed

Whenever a discussion on development and aid in Kenya comes up, it is highly unlikely that China will not feature. Analysts find it important to compare what China has done in relation to what other development partners have to offer. Despite the obvious grounds and motivation for this association, sophists tend to put China’s role and activities under the critical lens; however, in the face of differing views being projected by diverging interests, it is not difficult to weigh up and establish China’s critical role as the evidence is there for everyone to see.

Before China’s engagement with Kenya, traditional donors dispensed aid with political strings attached and conditions. Today, China gives unconditional aid not in form of money, but in form of infrastructural and social development that every Kenyan can see and feel. We are no longer talking about white elephants but grand projects never seen before in the country. This has not shielded Chinese aid from criticism based on historical experiences of aid money.

China gives us cheap and long term loans which reduce the pressure to pay, enabling the country achieve its development objectives. This too is being seen in terms of increasing our debt burden, forgetting that these are the same loans that Kenya and other African countries begged from the Brettonwoods institutions to fund our much needed infrastructural development.

A decade of engagement has helped Africa to develop and grow African economies by 20%, which more than 500 years of trade with the west could not. Kenya’ fast economic growth in recent years has been attributed to improved trade with and infrastructure development with China. China’s charm has been its ability to listen and consult on what is best for Kenya’s self development. During his trip in China, President Kenyatta asked for even greater cooperation with China to drive our most pressing needs. Discussions on new areas of investment mainly in infrastructure, energy and technology transfer were fruitful leading to the signing of agreements worth Sh425 billion with China.

This is the necessary capital that a country like Kenya needs to spur its economic growth. Just like in business, no country can invest big without sufficient capital and this is the path that developing countries like Kenya have to take. When the Asian giants were poor, they went through the same development path and they are now servicing their debts with ease. Having undergone the same process, China understands this concept hence its willingness to risk giving us such huge amounts of money as investment at very cheap interest rates compared to traditional lenders in the bretton woods institutions.

Meanwhile, the majority of China’s assistance is in government to government model by non-currency delivery. This protects the general populations from graft in government and ensures that the money is used for its intended purpose which is investment in infrastructure and development.  A successful investment ensures the country is able to pay back the loans without having to subject the citizens to higher taxes and a greater tax burden.

The best thing about China is the focus on concrete programs such as infrastructure, livelihood projects, education, healthcare etc, from which the people can see and feel and benefit directly. For instance, the new standard gauge railway linking the port of Mombasa and the border town of Malaba has employed over 25,000 youths from this country that apart from the income they will get, will also benefit a lot from the skills and technological knowhow from their Chinese counterparts.

It is impossible to downplay China’s significant contributions to Kenya’s economic and social development, especially the implementation of Vision 2030.  As for development, China shares much with Kenya in terms of concepts, goals and approaches.  Other development partners perceive Kenya as backward and underdeveloped, opting to instead dump outdated technologies no longer in use in their countries. Kenya Vision 2030 and the Chinese Dream have similarities that will bring both countries together to carry out common development, integrate our shared interests and combine the wishes and aspirations of both peoples. It is the shared tasks of both countries to create a bright future and fulfill common development dreams.

China has become Kenya’s largest source of financing, our largest construction project contractor and second-largest trade partner. Especially under the framework of Vision 2030, China and Kenya are working together closely in many fields, and have built or are building a number of flagship projects. These have greatly improved Kenya’s capacity of self-development and laid a solid foundation for Kenya’s future prosperity.

China is actively involved in the construction of roads, railways, airports and sea ports in the country. The Thika Superhighway is just an example of how much these kinds of infrastructure are critical to Kenya’s development. The road has opened up economic activity and development in areas along the road. Notable ones being Nakumatt Thika Road Mall (TRM), Garden City Mall, Naivas mall among others.

The Mombasa-Nairobi SGR, currently being built by China Road & Bridge, has been the largest infrastructure project since the independence of Kenya. It is expected to create more than 30,000 local jobs and lift Kenya’s GDP growth by 1.5%. When completed, it will have reduced the Mombasa-Nairobi transportation cost by about 40%, and will boost business along the railway and create numerous jobs.

The expansion of Jomo Kenyatta International Airport and the construction of Greenfield Airport will remarkably improve Kenya’s aviation capacity, and further enhance Kenya’s unique position as the transportation hub in East Africa. The Chinese participation in the Mombasa Port and Lamu Port projects will help increase Kenya’s cargo throughput and promote its imports and exports. There are far more model projects like these, which have become success stories in Kenya’s households and the symbols of China-Kenya friendship.

In the field of energy, which is the lifeline for Kenya’s economic take-off and industrialization, China has provided financing assistance and asked Chinese companies to engage in related projects. The Olkaria 140-megawatt geothermal power station, which is the largest of its kind in Africa, has come into operation recently. PetroChina and Sinopec took part in this project, which has improved Kenya’s power generation capacity and reduced local electricity price by around 30%.

It is unimaginable where Kenya would be without Chinese support of the last decade. Kenya was on a steady downward slope in terms of economic development. The country was fraught with high unemployment rates coupled with massive layoffs, essential services were deteriorating at an alarming rate, our roads were impassable and economic activities were chocked with inefficiencies.Just as we were on the brink, came in the Chinese and Kenya witnessed development activities that they had long forgotten about. We began to see infrastructure development on a scale never seen before in this country. We began to see new roads, hospitals, schools, and new communication networks.

Whereas we are not in the business of comparing that has done more to Kenya in terms of development assistance and contribution, we must not downplay China’s critical role in our development and acknowledge that China is among the dominant players in our development quest and avoid being misled by geopolitical interests.

Guest Post : Africans invest billions of dollars in China

Beyond the small businesses that attract Africans in Guangzhou—the so-called 'Chocolate city' in China because of the large number of Africans who live there—African companies have made considerable investments in China.

China, the world's newest economic superpower, surpassed the United States as Africa's largest trading partner in 2009. Since then, China's investments in Africa have been growing at a staggering speed.

But many people are not aware that the Sino-Africa relationship is not just a one-way street.

By 2012, Africans had invested a cumulative $14.2 billion in China, a 43% increase from the $9.9 billion invested by 2009.

In 2012 alone, the amount of direct investments from Africa to China was about $1.4 billion, mostly in petro-chemical, manufacturing, wholesale and retailing industries.

Some of the top African investors in China came from Mauritius, South Africa, Seychelles and Nigeria, according to the White Paper on Economic and Trade Cooperation between China and Africa published by the Chinese government.

Investing in local brands

For example, not many people outside China have heard about Snow beer, the world's best-selling beer by sales volume, because it is produced and sold only in China.

Even fewer are aware that an African company, the South African Breweries (SABMiller), runs Snow beer as a joint venture with a Chinese firm and produces many other popular Chinese beer brands as well.

SABMiller (formerly SAB before it acquired the Miller Brewing Company in 2002) began its expansion into China in the mid-1990s.

Its first move was to negotiate with the government-backed China Resources Enterprises, for joint ownership of China Resources Snow Breweries, which is now the largest brewery in China.

While most foreign breweries struggle to sell their brands in the Chinese market, SABMiller has concentrated on purchasing local Chinese breweries.

SABMiller's winning strategy is to keep on purchasing shares in local brewers and investing in the production of popular Chinese brands without involving itself in daily operations and management of the companies.

Today, 30 years after its first investments, SABMiller co-owns more than 90 breweries with Chinese Resources, producing around 30 beer brands with a 23% market share.

Tunisia's investment in China's fertilizer production has an even longer history.

Initially launched as a key project of China's 8th Five-Year Plan, the Sino-Arab Chemical Fertilizers Company (SACF) was a joint initiative reached by Tunisia and China when Tunisia's late Prime Minister Mohammed Mzali visited Beijing in 1984.

SACF wisely used the continuous investments in its technical reform and facility expansion in the new millennium, which significantly increased its production and quality control capacities.

Widely praised as a successful South-South Cooperation model, the company has grown to become one of the largest compound fertilizer producers in China.

Despite the global recession that jeopardized most countries' investment plans, the amount of direct investments from Seychelles to China reached the $100 million mark in 2009, compared to $7 million worth of Chinese investments in Seychelles during the same period.

The large number of offshore companies anonymously registered in its Indian Ocean islands could possibly be the answer to this puzzle, analysts say.

Countries like Mauritius and the Seychelles are magnets for business entities and entrepreneurs around the world because of their relaxed taxation, lighter regulation of corporate activities and greater business flexibility.

On the other hand, their strict preservation of confidentiality for business transactions and individuals has made it almost impossible to track where the investments that are flowing out of these islands actually came from.

Big dreams in 'Little Africa'

SABMiller and the other large corporations only tell part of the story of Africans seeking economic opportunities in China.

Media reports estimate that China is home to more than 200,000 African immigrants.

In the first nine months of 2014, Guangzhou, a southern Chinese city hosting the largest African community in Asia, documented 430,000 arrivals and departures at its check points by nationals from African countries.

Certain neighborhoods in Guangzhou are virtually all African, often referred to as 'Chocolate City' or 'Little Africa' by local cab drivers.

The government of Hong Kong allows 90-day visa-free stays for citizens of many African countries, such as Botswana, Egypt, Kenya, Malawi, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe, making the special administrative region the easiest entry point for African traders who make up the majority of the African population in China.

Bo Li, the author, writes for United Nations Africa Renewal Magazine

China and Kenya taking stock of gender equality progress at UN human rights session

China and Kenya co-sponsored discussion on gender equality during a Human Rights Council (HRC) session. The "Beijing+20: Gender Equality” discussion is part of the HRC's 29th session taking place from June 15 to July 3 this year in Geneva Switzerland.

The discussion is meant to take stock of progress made since the adoption of the Beijing Declaration and Platform for Action (BDPA) in 1995 while identifying remaining challenges. Kenya and China were some of the main countries that contributed to the adoption of (BDPA) in 1995.

Participants and panelists including a number of NGOs applauded the progress made since the BDPA was adopted 20 years ago, and highlighted the continued relevance of BDPA's guidelines in today's gender equality agenda.

Zhao Hongju, deputy director general of international department under All China Women's Federation, warned that despite the significant progress made in terms of women's economic empowerment, education, participation and decision making, "greater efforts and resources are needed."

Maryann Njau-Kimani, Kenya's Secretary of Justice, said "No country has achieved full gender equality in all spheres of life," adding that political will on a national, regional and global level is needed to address the remaining gaps in gender equality.

Panelists further condemned the protracted use of gender stereotypes and violence against women endemic to all societies, and highlighted the importance of including women's rights and gender equality in the post-2015 sustainable development goals agenda.

INTERNATIONAL RESPONSE TO EBOLA WANTING

The deadliest outbreak of Ebola virus on record is causing havoc in five African countries namely Guinea, Sierra Leone, Liberia and Nigeria. In March 2014, the World Health Organization (WHO) reported a major Ebola outbreak in Guinea. The highly infectious disease has since spread to catastrophic levels and taken an International dimension. WHO has declared the epidemic to be an international public health emergency but the international community has been slow to react and seemed indifferent to the plight of the affected countries.

According to the WHO, the countries affected to date simply do not have the capacity to manage an outbreak of this magnitude and complexity on their own. Apart from the human cost, the outbreak has severely battered the economies of the affected countries. Initially, many countries dealt with the fear of infectivity by isolating themselves from West Africa, closing their borders, canceling airline services and pulling ships back from West African ports. This has only worsened the situation leading to economic and social unrest.

The complexity of the situation and the danger that the disease poses to global health has led the WHO to urge for “drastic action” to contain Ebola. The slow response from the International community, especially the developed countries has allowed the epidemic to spread sparking fears that the killer virus could spread from West Africa to other regions and continents. It has been acknowledged that Ebola is just a plane ride away and therefore, no country is completely safe. Patrick Sawyer, a naturalized American citizen who worked in Liberia, flew to Nigeria intending to attend a conference. After exhibiting symptoms upon arrival July 20, he was hospitalized and died on July 25.Two other U.S. aid workers in Liberia have contracted Ebola and have been treated.

The United Nations has said that controlling the epidemic will require the world to increase its efforts twentyfold and to spend $1 billion in the next six months. Tim Shenk, a spokesman for the humanitarian group Doctors without Borders, emphasized that the actions of the U.S. government will determine whether the growing epidemic can be contained.  As the largest economy in the world, it was expected that the U.S would play a leading role and lead international response to the Ebola outbreak. However, it is China that has appeared proactive and quick to act.

China, the second largest economy responded to the epidemic with unprecedented generosity The Chinese president was the first to send condolences to the heads of state of the affected countries. Additionally, China dispatched three teams of infectious disease experts to assist local medical professionals and sent $5 million worth of medical supplies to the three most affected countries (Sierra Leone, Liberia, and Guinea). President Xi Jinping announced that China would provide an additional $32 million worth of humanitarian aid to boost  already existing efforts to combat the epidemic. And last week, a 59-member Chinese laboratory team departed for Sierra Leone to help the country improve lab testing capacity, joining the 115 Chinese medical staff that are already on the ground. 

As the world’s second-largest economy, China has taken the burden of responding to the Ebola crisis and has showed concern and commitment not seen from any other country on the globe. Over the past month, China has contributed food, medical supplies and cash to help African countries and aid organizations combat the disease. China has also pledged to donate $2 million to the WHO and $2 million to the African Union to aid their Ebola response efforts. But it is still a developing nation, with poorer per capita than the United States, Japan or European Union countries. The WHO has described China’s new commitment as “a huge boost, morally and operationally.”

Therefore, the Chinese role in helping African countries fight Ebola should not be downplayed.  China was dispatching more health personnel as aid groups from the United States, Europe, and Japan were evacuating their own in droves. Despite their lack of experience in handling Ebola cases, Chinese doctors and volunteers seem eager to offer assiatance regarding the disease. For Africa, this is the time when we need our friends and neighbors. An African proverb states that “When your neighbour’s house catches fire, you don’t wait for it to spread to your house for you to act, but quickly join in containing the fire.

To other African countries, our neighbour’s house is on fire and we cannot sit and wait for China and the developed world to act as we sit and watch. Many countries in Africa are still at risk and therefore we must join hands and combat Ebola together. The World Health Organization (WHO) has classified Kenya as a "high-risk" country for the spread of the deadly Ebola virus. Kenya is vulnerable because is a major transport hub, with many flights from West Africa. Instead of isolating ourselves, let us emulate China and support our African brothers in distress.

Hong Kong on the path to electoral reforms through universal suffrage

The special administrative region of the People’s Republic of China, Hong Kong; has made a substantial step towards democratic electoral reforms of how to select its leaders in 2017. Just two decades after returning to China, Hong Kong is on course to attain universal suffrage by 2017. The decision was adopted by China’s National People's Congress (NPC) Standing Committee. The decision of the standing committee of the NPC relates to issues of selecting the Chief Executive by universal suffrage and the method of forming the legislative council of the Hong Kong Special Administrative Region (HKSAR) by 2016.

The democratic development of Hong Kong has been a major topic since the return and transfer of sovereignty to China in 1997. So far, universal suffrage in the selection of its chief executive has been the most important political issue. This is indeed a great step in electoral reforms vital for the development of the region’s political system in line with the one country, two systems principle. 

The One country, Two Systems Principle allows the Hong Kong government to administer all areas of government except foreign relations and military defence separately from the national Chinese government. Hong Kong’s basic law governs its political system, and stipulates that Hong Kong shall have a high degree of autonomy in all matters except the two. It also allows Hong Kong's independent judiciary to function under the common law framework. Nevertheless, the special administrative region of Hong Kong is required to cooperate with the central government. 

Representatives from the top legislature reiterated the view that minimizing the risk of political confrontation between the Special Administrative Region and the central government was essential. This was emphasized by the deputy secretary general of NPC Standing Committee, Mr. Li Fei when he said “To implement the policy of One country - Two systems, we won’t allow confrontations, neither within Hong Kong, nor between the SAR and the central government,". He added "There is a simple logic behind those who want different standards. It means we have to allow someone who wants to confront the central government to run in the elections. Otherwise, it’s not real universal suffrage; it doesn’t conform to international standards. Our attitude is very clear. 

At the heart of the political debate was whether a truly international standard exists when it comes to democratic elections, and whether they can be applied universally, especially in the context of Hong Kong. There was consensus and strong views that there is no such international standard.  According to Chu Kai, advisor of Fed. of Hong Kong watch Trades and Industries, “"There is no such international standard. Each country has its own special situation. We can never copy a so-called international standard and apply it to our own elections."

Therefore, the NPC’s standing committee’s decision was based on the Five-Step Process of Constitutional Development and it complied with the One Country Two Systems practice, the relevant provisions of the Basic Law of Hong Kong Special Administrative Region, its legal status, the interests of different sectors of Hong Kong’s communities and the development of Hong Kong’s economy.

Experts believe the NPC Standing Committee’s decision has offered a clear direction and provided guidelines for achieving the goal of universal suffrage in 2017. Different sectors of Hong Kong society have also hailed the decision of the Committee. The experts said that one of the biggest changes under the new policy is the nomination process for Chief Executive Candidates.

The new policy stipulates that, depending on its feasibility, a committee will name no more than two to three candidates. This will allow the ballot to be more efficient and avoid having to hold multiple rounds in case several candidates each only get 10 or 20 percent of the vote. Also unlike before, candidates must be endorsed by half of the nomination committee, rather than just one-eighth. That’s because in the past, the Chief Executive was elected only by the twelve-hundred members of the committee. But in the future, universal suffrage will apply to over 6 million Hong Kong residents. The elected candidate must have the endorsement of over half the committee, which takes into consideration all the different political, religious and social groups’ standpoints. 

However, the decision is not the final step as the decision still needs to be implemented wholly and it requires a two- thirds majority support from all members of the Legislative Council. Mr. CY Leung, the Chief Executive Hong Kong Special Administrative Region (HKSAR), said "We should cherish the rights to historically elect our chief executive through ‘one person, one vote,' and express our opinions peacefully, rationally and legally. He urged all Hong Kong people, irrespective of their political affiliations, to come together with one heart, one vision, and take forward the democratic development of Hong Kong, and to implement universal suffrage."