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African Leaders In Beijing Eye Big Loans, Investment

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African leaders descend on China’s capital this week, seeking funds for big-ticket infrastructure projects as they eye mounting great power competition over resources and influence on the continent.


China has expanded ties with African nations in the past decade, furnishing them with billions in loans that have helped build infrastructure but also sometimes stoked controversy by saddling countries with huge debts.

China has sent hundreds of thousands of workers to Africa to build its megaprojects, while tapping the continent’s vast natural resources including copper, gold, lithium and rare earth minerals.


Beijing has said this week’s China-Africa forum will be its largest diplomatic event since the Covid-19 pandemic, with leaders of South Africa, Nigeria, Kenya and other nations confirmed to attend and dozens of delegations expected.

African countries were “looking to tap the opportunities in China for growth”, Ovigwe Eguegu, a policy analyst at consultancy Development Reimagined, told AFP.

China, the world’s number two economy, is Africa’s largest trading partner, with bilateral trade hitting $167.8 billion in the first half of this year, according to Chinese state media.

Beijing’s loans to African nations last year were their highest in five years, research by the Chinese Loans to Africa Database found. Top borrowers were Angola, Ethiopia, Egypt, Nigeria and Kenya.

But analysts said an economic slowdown in China has made Beijing increasingly reluctant to shell out big sums.

China has also resisted offering debt relief, even as some African nations have struggled to repay their loans — in some cases being forced to slash spending on vital public services.

Since the last China-Africa forum six years ago, “the world experienced a lot of changes, including Covid, geopolitical tension and now these economic challenges”, Tang Xiaoyang of Beijing’s Tsinghua University told AFP.

The “old model” of loans for “large infrastructure and very rapid industrialization” is simply no longer feasible, he said.

The continent is a key node in Beijing’s Belt and Road Initiative, a massive infrastructure project and central pillar of Xi Jinping’s bid to expand China’s clout overseas.

The BRI has channelled much-needed investment to African countries for projects like railways, ports and hydroelectric plants.


Togo’s President Faure Gnassingbe (C) arrives at Beijing Capital International Airport in Beijing on September 1, 2024. (Photo by Ken Ishii / POOL / AFP)


But critics charge Beijing with saddling nations with debt and funding infrastructure projects that damage the environment.

One controversial project in Kenya, a $5 billion railway — built with finance from Exim Bank of China — connects the capital Nairobi with the port city of Mombasa.

But a second phase meant to continue the line to Uganda never materialised, as both countries struggled to repay BRI debts.

Kenya’s President William Ruto last year asked China for a $1 billion loan and the restructuring of existing debt to complete other stalled BRI projects.

The country now owes China more than $8 billion.

Recent deadly protests in Kenya were triggered by the government’s need “to service its debt burden to international creditors, including China”, said Alex Vines, head of the Africa Programme at London’s Chatham House.

In light of such events, Vines and other analysts expect African leaders at this week’s forum to seek not only more Chinese investment but also more favourable loans.

‘Lack leverage’
In central Africa, Western and Chinese firms are racing to secure access to rare minerals.

The continent has rich deposits of manganese, cobalt, nickel and lithium — crucial for renewable energy technology.


Mali’s interim president Assimi Goita arrives at Beijing Capital International Airport in Beijing on September 1, 2024. (Photo by Ken Ishii / POOL / AFP)


The Moanda region of Gabon alone contains as much as a quarter of known global reserves of manganese, and South Africa accounts for 37 percent of global output of the metal.

Cobalt mining is dominated by the Democratic Republic of Congo, which accounts for 70 percent of the world total. But in terms of processing, China is the leader, at 50 percent.

Mounting geopolitical tensions between the United States and China, which are clashing over everything from the status of self-ruled Taiwan to trade, also weigh on Africa.

Washington has warned against what it sees as Beijing’s malign influence.

In 2022, the White House said China sought to “advance its own narrow commercial and geopolitical interests (and) undermine transparency and openness”.

Beijing insists it does not want a new cold war with Washington but rather seeks “win-win” cooperation, promoting development while profiting from boosted trade.

“We do not just give aid, give them help,” Tsinghua University’s Tang said.

“We are just partners with you while you are developing. We are also benefiting from it.”

But analysts fear African nations could be forced to pick sides.

“African countries lack leverage against China,” Development Reimagined’s Eguegu said.

“Some people… think you can use the US to balance China,” he said. “You cannot.”

AFP

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NPA Announces 15% Port Tariff Increase, First in 32 Years

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The Federal Government, through the Nigerian Ports Authority (NPA), has announced a 15% raise in port tariffs, marking the first hike in 32 years.

This was disclosed by the NPA Managing Director, Dr. Abubakar Dantsoho, during a stakeholders’ engagement in Lagos on Thursday.

He stated that the 15% increment will be applied across board, affecting various services and operations within the ports.

According to Dantsoho, represented by Executive Director of Marine and Operations Mr. Olalekan Badmus, the NPA has maintained the same rates for over three decades despite significant economic changes.

Persecondnews reports that the changes include exchange rate fluctuations, rising wages, fuel and lubricant costs, and inflation.

The tariff increase aims to address these economic realities and ensure the sustainability of port operations.

The decision, however, has been greeted with mixed reactions.

While some stakeholders in the shipping and logistics sectors have expressed concerns about the impact of the tariff hike on the cost of doing business in Nigeria, others have acknowledged the necessity of the move in light of the agency’s financial constraints and the broader economic conditions.

The tariff increase is expected to take effect in the coming months, and the NPA has assured stakeholders that it will work closely with port operators, shipping companies, and other stakeholders to minimize any potential disruptions during the transition.

Additionally, the NPA plans to use the additional revenue generated from the increase to fund improvements of port infrastructure, enhance the capacity of terminals, and improve services such as cargo handling, storage, and security.

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Temper justice with mercy, deputy speaker begs Tinubu to release Nnamdi Kanu

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… says Kanu’s release will end insecurity in S’East

Benjamin Kalu, deputy speaker of the House of Representatives, has appealed to President Bola Tinubu to temper justice with mercy and give freedom to the leader of the Indigenous Peoples of Biafra (IPOB), Nnamdi Kanu from detention.

Kalu made the appeal after the inaugural meeting of the House of Representatives committee on South East Development Commission (SEDC) at the National Assembly complex in Abuja.

The deputy speaker commended the President for his support and commitment towards peace, development and stability of the South-East region.


He noted that the President since assuming office has in various ways proven his love for the South-Easterners through his speedy assent to the South East Development Commission Bill which failed in previous assemblies.

Suggesting the adoption of political approach than legal for the release of Kanu, Kalu said that the people of the region will be eternally grateful to the President if that becomes a reality.


Expressing optimism that the President will heed to their appeal, the deputy speaker noted that when Kanu is released insecurity in the region will be reduced and as well spring up development that the SEDC is going to bring.


“We are thankful to Mr President for doing this for the South-East. Insecurity is a major concern in the area, you can’t have development in midst of insecurity. That’s why we started what we call peace in South-East project supported by the parliament. But in doing so we noticed that the insecurity there will be reduced if Nnamdi Kanu is released. We want Nnamdi Kanu to be released because we know it will give our people more security”, he said.

“Those who are using him as excuses to perpetrate all these criminal actions around our area will have no other reason to be on the street. Then the police and security agencies will catch anyone who claims Nnamdi Kanu is the reason for causing harm to the people of South-East. So, we are begging, you can’t coarse the President, he’s the Commander in Chief. All we are saying is use political approach not the legal approach. We are appealing to him to temper justice with mercy and release Nnamdi Kanu to southeast people. It will ensure more security for our people and spring up development that this SEDC is going to bring” Kalu urged.

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I will make it harder for immigrants to get British citizenship – Kemi Badenoch vows

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The United Kingdom Conservative leader, Kemi Badenoch, has vowed that she will make it more difficult for immigrants to get British citizenship.

While making one of her first policy announcements since she became leader, Badenoch said immigrants would only be able to apply for citizenship after being in the UK for 15 years.

Badenoch also declared that indefinite leave to remain, which paves the way for citizenship, should not be granted to those who have criminal records or who had claimed benefits or social housing.


According to her, citizenship was a privilege, not just a right and should only be for those with a “meaningful connection to the UK”.

Obtaining indefinite leave to remain, ILR gives people the right to live, work and study in the UK.

It is usually possible for a person to apply for ILR if they have worked in the UK for at least five years, although it can be two or three years if they came to the UK on particular visas.

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