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The Zambian president’s visit to China moved the relationship beyond debt and reset to a focus on growth. 

Zambia’s President Hakainde Hichilema has just returned home from almost a week in China, during September 10-16. Prior to the visit, journalists speculated that debt resolution must be the main priority for the visit, but that reflects a very shallow understanding of the dynamics in China-Zambia (and indeed China-Africa) relations.

Hichilema is the fifth African head of state to visit a post-pandemic China, following top leaders from Tanzania, Algeria, Eritrea, and Benin. In the past, research by Development Reimagined has found a long-term positive correlation between visits from African leaders to China and more Chinese investment and cooperation. Such visits are when deals are cemented. Zambia ranks among the most active African countries when it comes to Chinese engagement, with nine visits to China of its leaders since 2003, matching well with its rank as the third largest destination for Chinese foreign direct investment (FDI) on the continent

This trend is not new. China and Zambia cooperated during anti-colonial struggles, and close diplomatic ties were established soon after independence in 1964. The iconic Tanzania-Zambia Railway (TAZARA) was raised by Zambia’s founding President Kenneth Kaunda with China’s first-generation leaders during his first visit in 1967. By connecting Zambia’s Copperbelt province to the seaport of Dar es Salaam, the so-called “liberation project” had a strong economic objective that the multilateral and other bilateral financial organizations found it hard to recognize and justify at the time: it materially reduced Zambia’s dependence on still colonized Rhodesia (now Zimbabwe) and apartheid South Africa. 

China stepped in to provide funding instead. The railway thus came to symbolize Chinese support for Pan-Africanism and was the starting point of extensive infrastructural support that has since characterized China’s development cooperation with Africa more broadly.

The last in-person meeting between the presidents of Zambia and China took place during the 2018 Forum on China-Africa Cooperation (FOCAC) Summit in Beijing. It was a sensitive time, when the notion of “debt trap diplomacy” had just surfaced, and Zambia was depicted as a major victim. Although Zambia’s then-President Edgar Lungu had hit back hard against those accusations, such narratives continued to plague the relationship, despite China and Zambia being “all-weather friends.” (Incidentally, this frequently-used term in Chinese diplomacy was first coined by Kaunda). 

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The COVID-19 pandemic exacerbated the debt issue. In 2020, Zambia became the first African country to default on debt when it failed to make a Eurobond payment. Zambia then became the first country to apply to the G-20 Common Framework, an initiative designed to coordinate debt-restructuring efforts by both traditional and emerging lenders. Doing so enabled Eurobond holders to get their payments from the International Monetary Fund (IMF) via arrears, which Zambia will have to pay back to the IMF at some point. However, internationally the blame for Zambia’s challenges in debt resolution thereafter was pinned on China – although not it’s worth noting that the Zambian government itself has never expressed this view. 

At the time, 30 percent of Zambia’s total loans were owed to China, but these were mostly concessional loans, channeled through policy banks like the China Exim Bank. In 2020, the year of Zambia’s default, Zambia paid $436 million in interest on external debt stock, with China accounting only for 5.3 percent of this (a ratio that dropped to just 2.1 percent in 2021). Historically, China had also provided debt relief to Zambia on request multiple times – in total worth $259 million since 2000, which tops all sovereign creditors. 

Hence, amid the debt crisis Hichilema has been pragmatically avoiding picking one side as a tactic to press the other for compromise. He made efforts to refute the stigmatization of China’s role in the multilateral settlement to mitigate the mistrust among the different creditors.

Nevertheless, facing an impasse after almost two years, and with China finally opening up post-pandemic, Zambian Treasury and Central Bank officials traveled to China prior to the 2023 IMF and World Bank spring meetings. Their proposals that paved the way for a breakthrough deal for all bilateral creditors to extend repayment of $6.3 billion in loans to 20 years with a three-year grace period. (It should be noted that no progress has been made so far on engaging private lenders and multilaterals in Zambia’s debt relief, despite the protracted negotiations.) So, if Hichilema’s week-long trip to China was not about debt, what was it about?

The answer is growth. 

With the 60th anniversary of their diplomatic relations and the next FOCAC Summit coming up in 2024, Hichilema’s visit led to an upgrading of China-Zambia bilateral ties to a “comprehensive strategic and cooperative partnership,” the highest classification so far applied to China’s partners on the African continent. The joint communique pointed to synergies between Zambia’s Eighth National Development Plan and the Belt and Road Initiative (BRI), critical for China’s international reputation. This all indicated a determination from Hichilema and Chinese leader Xi Jinping to flip over to the next page to discuss long-term development and economic growth – not debt.

A particular highlight of the visit was China’s commitment to support Zambia’s ambition to transform into an industrial hub, capitalizing on its resource endowments. According to the China-Africa and Trade Relations Report 2023, China’s imports from Africa are dominated by mineral imports, which accounted for 57 percent ($67.09 billion) of total imports in 2022, with Zambia being the second largest source. This means Zambia is one of the few African countries that has a positive trade balance with China. However, the Zambian government wants to diversify the trade pattern, especially in value-addition and manufacturing.  

Before he arrived in Beijing, Hichilema’s six-day visit started in Shenzhen, China’s tech hub. There, Hichilema invited tech giants including Huawei, ZTE, Tencent, and BYD to leverage Zambia’s resources for key component production. MoUs were signed with ZTE for a smartphone assembly plant and with Huawei to improve ICT infrastructure.

During Hichilema’s trip to Jiangxi Province, the Zambia Development Agency attained two investment commitments: Pingxiang Huaxu Technology will build a wind and solar hybrid power generation project worth $800 million, and Jiangxi Special Electric Motor Company will invest $290 million for a lithium battery manufacturing plant in Zambia’s Southern Province.

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This all makes strong economic sense. Copper resources, existing processing bases, and a clean energy-driven electricity system make Zambia highly competitive in producing renewable energy components and systems within the continent. Earlier this year, during his attendance at the Mining Indaba in Cape Town, South Africa, Hichilema provided regulatory clarity (such as on taxation) to get the sector back on track from resource nationalism. He also underlined a strong will to work with foreign investors to tap the country’s potential in the critical minerals for green transition. These deals made during the China trip are concrete steps that can turn the government’s vision into reality. 

Hichilema was also able to extract commitment from China to finance old and new large infrastructure projects – despite continued international speculation that China is no longer lending in this way. The TAZARA Railway network is expected to be rehabilitated in the first quarter of 2024. New projects – including the Ndola-Lusaka dual carriageway (which was halted earlier due to a loan cancellation as part of Zambia’s debt management), the Lusaka-Livingstone-Kazungula bridge highway, and the Kabwe solar photovoltaic power plant – are all on the horizon as well. 

Last but not least, Hichilema also secured commitments from China to import more agricultural products from Zambia, such as blueberries, building on a soybean export agreement made in 2022, while boosting investment in agro-processing, fertilizers, pesticides, and agricultural machinery. 

These deals all support key Zambian priorities: job creation, reduced reliance on imports, and the aim of increasing Zambia’s potential to export either to China or to neighbouring countries. The goal is to bolster Zambia’s growth, increasing incomes and strengthening the country’s financial sustainability in the long term. And of course, China sees an interest in doing so, not only to ensure that Zambia’s future loans are repaid, but also to diversify its own sources of economic growth and supply chains. 

These agreements are as important for the two countries as debt relief itself, if not more. They create a stronger path for debt sustainability. 

So what does this mean for other African countries, especially those facing debt payment challenges, but who also still want to generate post-pandemic growth? 

Zambia’s lesson in engagement with China at least is simple: if you don’t ask, you don’t receive.

Zambia actively pursued both bilateral and multilateral debt resolution, and in the end it was – contrary to reports by others – not IMF advocacy but Zambia’s own initiative that paved the way for a deal. And Hichilema’s visit to China has demonstrated that Zambia is now taking the initiative to use debt and other resources to set a new growth path that emphasizes building up its production capacity.  

Other African leaders visiting China can do the same. Approaching the 10th anniversary of the BRI, China is also seeking to build a reputation as a provider of public goods and supporter of practical development to partners on the continent. As Zambia did, African countries should leave negotiations on debt relief and terms to their finance ministers and central bank governors, and instead prepare a pragmatic yet ambitious agenda – including pitches for new investment, new loans for infrastructure, and new trade – and showcase their strategic importance. That is the real prize.  By Huiyi Chen, The Diplomat

 
Trade CS Moses Kuria during the groundbreaking ceremony for the construction of an industrial park in Siaya. [Sammy Omingo, Standard]

Trade and Industry Cabinet Secretary Moses Kuria has said all Kenyans are shareholders in the national government and are contributing significantly to the success of the country.

Speaking during the groundbreaking ceremony for the construction of a county aggregation and industrial park in Siaya, Kuria outlined the importance various parts of the country are bringing on the country’s development table.

His comments, however, are a sharp contrast to the sentiments of Deputy President Rigathi Gachagua who has been fronting the ideology of a government of shareholders. 

According to Gachagua, only those who supported Kenya Kwanza in the polls are shareholders in their government and reserve the front-row seats when plum jobs and developments are being shared. 

Yesterday, however, although Kuria avoided mentioning names, he stressed the need for all Kenyans to be treated equally, arguing that it is not an election season.No longer at ease: Calls for Moses Kuria sacking grow

“We want to create 47 mini-economies that work together for our country. For me, all parts of Kenya are useful. By the mere fact that the products that you have that can contribute to our jobs, to our foreign exchange, to our national GDP, everybody in this country is a shareholder,” said Kuria.

It is upon that background that the CS is pushing for investments through industrial parks in all the counties. 

He cited  Siaya county as an example of one of the counties contributing to Kenya with fish, while other counties with cotton, sunflower, and avocado makes them shareholders.

 Governor James Orengo also argued that they are allowed to differ politically but should not weaponise development. By Olivia Odhiambo, The Standard

Rwandan President, Paul Kagame has declared his intention to run for a fourth term in the elections coming up next year.

Kagame who has ruled over the country with an iron fist for decades, made this known in an interview on Tuesday.

“I am pleased with the confidence that Rwandans have placed in me. I will always serve them, as long as I can,” the 65-year-old said

The Rwandan government in March decided to synchronise the dates for its parliamentary and presidential elections, which are due to be held in August next year.

Kagame, prior to this time did make his intentions clear, but presided over controversial constitutional amendments in 2015 that allowed him to run for more terms and stay in power until 2034.

Kagame became president in April 2000 and returned to office with more than 90 percent of the vote in elections in 2003, 2010 and 2017. 

While Rwanda lays claim to being one of the most stable countries in Africa, rights groups accuse Kagame of ruling in a climate of fear, stifling dissent and free speech.

By Chioma Kalu, Arise News

 

As the world marked International Peace Day, Rwandan youth were urged to strive for peace in the country and the region.

At the national level, the day-themed “Peace Starts with Me” was celebrated at Parliament Buildings in an event attended by parliamentarians, representatives of local and international organisations as well as hundreds of young people drawn from all parts of the country.

Speakers at the event acknowledged the role of young people in Rwanda’s liberation struggle which stopped the 1994 Genocide against the Tutsi and ushered in a new era of national unity.

“When we observe the International Day of Peace, we recognize that unity and resilience are a pillar of peace and sustainable development,” said Speaker of the Chamber of Deputies Donatille Mukabalisa.

“This is an opportune occasion that reminds us of the value of peace for the global population and Rwandans in particular. It is also the right moment to reflect on everyone’s role, especially the youth, in continuing to strive for peace.”

Drawing from Rwanda’s history, Mukabalisa noted that bad leadership leads to the lack of peace.

“The bad leadership that our country experienced enshrined discrimination, persecution, and isolation, which led us to the Genocide against the Tutsi in 1994. Another lesson from our history is that the youth played a role in the destruction of our country. But we also recognised that the role the youth played and continue to play in the reconstruction of our country is very important,” she said.

The Permanent Secretary in the Ministry of National Unity and Civic Engagement, Clarisse Munezero, said it is important for the older generation to engage young people on the value of peace.

“We have noted that threats to peace are not only the bullets, but anything that affects a person’s life negatively. Peace starts with you yourself, in your family and your neighbourhood,” Munezero said.

“What we ask of the youth is to find peace from themselves first, some of them still have trauma from our history. So, they need to have the courage to seek healing.”

International Day of Peace was established in 1981 by the United Nations General Assembly. Two decades later, in 2001, the General Assembly unanimously voted to designate the day as a period of non-violence and cease-fire.

The 2023 observance of the International Day of Peace coincided with the UN’s Sustainable Development Goals (SDGs) summit to mark the mid-point milestone.

“Peace and the Sustainable Development Goals are inherently connected-laying the foundation for a prosperous and harmonious world,” said UN Resident Coordinator in Rwanda, Ozonnia Ojielo.

“Peace isn't just the absence of conflict; it's a state where justice, equity, and cooperation flourish.

“We acknowledge that peace starts at home, in our communities, and within our hearts. It's a collective endeavour, and through open dialogue and shared understanding, we can dismantle barriers to peace and construct bridges toward harmonious coexistence.” - Moise M. Bahati, The New Times

South Sudan Parliament Building
 

The Transitional National Legislative Assembly (TNLA) on Monday passed the long-awaited National Elections Act 2012 (Amendment) Bill 2023, with all the observations and recommendations.  

The bill provides for the reconstitution of a competent and impartial National Elections Commission (NEC) to conduct general elections as stipulated in the 2018 peace agreement.

Other provisions in the law include the percentage allocations, which show that 50 percent of all the members of the National Assembly shall be elected to represent geographical constituencies in the Republic of South Sudan.

Also, 35 percent of women members shall be elected based on proportional representation at the national level from the closed women representatives (lists). Furthermore, the Bill provides that 15 percent of members shall be elected on proportional representation at the national level from closed party lists, these include categories such as youth and persons living with disabilities.

This amended law has also recognized the administrative areas to participate in the coming generation elections.

However, after the presentation of the Bill, a debate arose among the legislators suggesting that the president be given a prerogative to nominate some members of parliament after the elections to give a chance to those who fail to make it through the party lists or geographical constituencies.

Onyoti Adigo, the Minister of Animal Resources and Fisheries, who is also a member of the parliament, said it is very important to give the president a prerogative to nominate members of parliament to represent special groups such as persons with disabilities, trade unions, and youth, among others.

According to Adigo, the appointment of such groups to the parliament by the president can make the parliament inclusive.

“This parliament should be inclusive. The parliament will include persons with parties, organized forces, people with special needs, chambers of commerce, trade unions, youth, faith-based organizations, and imminent figures” he said. “These people are not members of political parties. So, it is the president who will be looking at their affairs. Their representation in parliament will give inclusivity in parliament.”

Meanwhile, Joseph Kiju Robert, the Chief whip of the Other Political Parties (OPP), said giving the president some powers to nominate is not a new thing but a common practice even in neighboring countries such as Kenya, Uganda, and Tanzania.

“We felt that the president who will be elected will have a prerogative of appointing 10 percent of the members of parliament,” he said.

The August House, however, agreed that the president be given the prerogative to appoint 5 percent of the members of parliament from non-political groups.

It was also agreed that the number of members of the House be increased from 250 to 332. However, this was disagreed by the political parties including the Sudan People’s Liberation Movement in Opposition (SPLM-IO).

Dr. John Sebit Madit, who represented the SPLM-IO Chief Whip, described the assignment of powers to the president as an attempt to appoint ministers from the current government to the next government that will be elected.

“There are people who want to carry forward mistakes that have caused crises in this country,” he charged. “In my opinion, the best way for us to learn is to leave behind mistakes. This proposal of giving percentages to the president is carrying forward of mistakes.”

Madit further said the country should decide whether to go for elections or have an appointment exercise. By Choi Mawel, Tower Post

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