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Creditors to expedite debt restructuring talks with Ethiopia

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By Muluken Yewondwossen

In an effort to alleviate Ethiopia’s debt burden, the Chinese leader has instructed to expedite debt restructuring negotiations with Ethiopian government entities. This directive comes after the leaders of China and Ethiopia decided to postpone Ethiopia’s debt service payment for the budget year during their meeting at the BRICS Summit in South Africa. This payment accounts for approximately two-thirds of Ethiopia’s total payment for the year.

During a side event at the Belt and Road Forum in Beijing, Chinese President Xi Jinping and Prime Minister Abiy Ahmed discussed the national debt load and the development cooperation between their nations. According to Ahmed Shide, the Minister of Finance, several agreements were reached to accelerate collaboration between China and Ethiopia. In addition to their existing comprehensive strategic alliance, the leaders have decided to broaden their cooperation to include security cooperation. Minister Shide also noted that President Jinping responded positively to efforts aimed at reducing the debt burden, instructing Chinese financial institutions to finalize negotiations with the Ministry of Finance for debt relief and restructuring. Furthermore, the Chinese leader authorized the continuation of project financing using Chinese funding.

Given its significant debt burden, Ethiopia primarily seeks relief and rescheduling from its bilateral partners. In February 2021, Ethiopia submitted an application for the G20 Common Framework (CF) to pursue debt restructuring. As the first country to make such a request under the G20 communiqué from November 2020, which included new lenders like China, India, and Gulf nations in addition to the established Paris Club lenders, Ethiopia is awaiting a resolution.

Additionally, Ethiopia has sought funding from the International Monetary Fund (IMF) to support its economic growth. Julie Kozack, the Director of the IMF’s Department of Communication, acknowledged Ethiopia’s challenges, including the impact of the pandemic, internal conflicts, prolonged droughts, and the repercussions of the Russia-Ukraine war. Kozack stated that the IMF had received a request for financial assistance to address these challenges, which encompass food insecurity, humanitarian needs, post-conflict reconstruction, high inflation, foreign exchange shortages, and imported goods scarcity.

Reports indicate that Ethiopia has requested around USD 2 billion in funding from the IMF to support its Home Grown Economic Reform II. The IMF has expressed its reliance on Ethiopia’s allies and financiers to provide the necessary backing and guarantees for the release of the requested funds. Consequently, Ethiopia is under urgent pressure to restructure its debt and secure further IMF funding.

The delay in addressing Ethiopia’s request can be attributed to factors such as the violence in northern Ethiopia, pressure from Western partners, and a lack of interest from other lenders who were monitoring the circumstances of Western partners. Currently, a creditors committee led by China and France is overseeing the finalization of Ethiopia’s debt restructuring request.

According to Minister Ahmed, Ethiopia stands to benefit significantly from China’s ongoing efforts to restructure its debt with Chinese lenders. Approximately one-third of Ethiopia’s foreign debt, which amounts to around USD 28 billion, is owed to China. The most recent debt report from the Ministry of Finance reveals that the majority of Ethiopia’s debt service payments have been made to Chinese lenders. In the 2022/23 budget year, nearly USD 300 million was paid to Chinese lenders, while payments to private creditors with or without government guarantees are not included in this figure.

The debt service payment to private creditors in the budget year amounted to USD 768.2 million, which includes suppliers and commercial banks. Within this sum, USD 154 million was allocated for commissions and interest. Despite Ethiopian Airlines receiving substantial credit from Western commercial banks, analysts assert that the Chinese lenders hold a significant portion of this amount. Ethiopia has borrowed substantial sums from Chinese financial institutions, particularly the Exim Bank, on a non-concessional basis, particularly in the latter half of the millennium. The primary creditors of commercial loans include the China Development Bank, Industrial and Commercial Bank of China, and the non-concessional division of the Exim Bank of China.

EMPLOYMENT & THE TECHNOSPHERE

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In the coming decades, nation states will have to devise alternative systems to replace traditional wage employment for the majority of their sheeple (human mass.) A more holistic approach, not only to productive engagement, but also to life in general, must be envisioned in place of the unsatisfying (to a large majority) occupations of prevailing capitalism. Nonetheless, due to structural changes taking place within the system itself (technological dominance), even the current mind-numbing works will become increasingly unavailable!

If truth be told, the modern world system owes all of its successes, literally speaking, to the discovery of cheap energy, namely fossil fuel. In all likelihood, humanity will not be lucky to have such a convenient, relatively safe cheap source of energy in the future, establishment rhetoric aside! No matter what, humanity should avoid the wholesome imperative of the techno-sphere, which has taken charge of our lives. For a start, certain technologies must be rejected outrightly, as they will inevitably undermine life itself. For example, the sheeple should not be fooled or coerced into accepting the continuous use of ‘nuclear power’, in all its various forms. This extremely dangerous, but highly hyped (by entrenched interests) source of energy, which is not cheap at all, even in the shallow financial sense (‘too cheap to meter’ nonsense), must be severely interrogated from the point of view of the biosphere, with a view to make a complete stop to its utilization, as it is inherently anti-life, irrespective of the different approaches being attempted to yield its massive energy, fission or fusion (even if it is possible)!

The current economic system, which has been instrumental in employing multitudes, (source of surplus value), both in the formal and informal sectors (at least for the last five hundred years) seem to be in disarray, as it faces shortages of resources as well as arising dis-functionalities in its traditional operations. The ever-expanding desire of the techno-sphere to fulfill its own internal imperatives, without due regard to the needs of humans, is and will be the most formidable challenge humanity has to face in the 21st century! For instance, the replacement of wage-earning humans by non-remunerated robotic workforce will bring unforeseen dynamics to the system. Automation and robotics are replacing labor, hardcore (proletariat) or otherwise, with attendant consequences to social organizations. Labor unions are vanishing faster than fossil fuel and the old mass employment might not come back again, however much the politicos desire/preach it. Even the so-called service industries will increasingly become inaccessible to wage seeking humans. The major obstacle in humanly addressing the conundrum of cheap energy shortages, unemployment and environmental degradation (including climate change) is, as usual, the intransigence of dominant capital!

Monopoly finance capital, which now dictates, not only global economic policies, but also (almost) all aspects of human existence, is not keen to change its ways. It would rather wage wars; destroy the biosphere (ecocide), cause genocides and destabilize nations, etc. before it is forced to come to its non-human senses. To be fair, abstracted and temporal capital is not human, hence doesn’t give a damn if humanity vanishes tomorrow. Therefore, what must be done is deal with the parasitic minions, mostly psychopaths/sociopaths, at the service of this monstrous dictator! Hiding behind extracted and neutered notion, such as ‘capital’ (even though it is, by and large, dead labor), should not be used as a license to override the core essentials on which collective human existence is based! The prevailing polarizing globalization, which allows the unbridled movement of capital, while curtailing free movement of labor, is behind the increasing chaos in the world system. The fact is; the ongoing wars in MENA (Middle East & Africa) are resource wars instigated by transnational capital, without due regard to the sheeple’s welfare! The current mass exodus from MENA to countries of the rich is a reaction, admitted or not, to this war breeding truncated globalization. The centralized bureaucracies in the rich countries (OECD) that usurped the will of the people (without being directly elected), always eager to impose the diktat of transnational capital on the gullible sheeple, (like the EU & NATO) are now confronted with the wrath of the masses, as a result of unbridled globalization!

Here is a pertinent question to transnational capital and through it, to the pathetic psychopaths/sociopaths, who blindly worship under its altar; how is income to be distributed to breathing drones so that they can buy stuff (consumerism) from those efficient non-breathing proletarian souls or roboterians for short? Why should global humanity allow the visible destruction of the biosphere so that the sickos (absolute minorities) can have their ways? Difficult as it is, the poorer countries of the world system must face such unfolding new developments/facts of life that are bound to devastate them, both physically and psychologically. Remaining stupidly compliant to the prevailing world order cannot be a solution. Or lazily trying to copy what has happened elsewhere will not bring ‘nirvana’ to the destitute of our earth. Creative thinking, not ‘copy catting’, is of the essence today!

We admit; the capacity of our leaders (not only political) in this department leaves a (whole lot) to be desired, particularly in places like Africa. Our so-called leaders, who themselves are at the mercy of the system don’t even seem to understand what is really going on in the belly of the beast/world system. Their stupid posturing, besides being embarrassing and irritating, is actually driving away capacity in droves. Articulation of viable alternatives demands the efforts of humanity’s best, and not the placement of mediocrities, compliment of manipulative politicos on behalf of their true boss, transnational capital! They might not know it, but their polished parroting of learned nonsense make them sound like useless idiots, worse than the infamous useful idiots.

This was first published in March 2017

China is reshaping the world with Belt and Road, and it’s a good thing

For ten years, Beijing’s most ambitious infrastructure project has been giving the Global South an alternative to West-dominated development

By Bradley Blankenship

Representatives from more than 140 countries will convene in China this week for another edition of the Belt and Road Forum, an international political and economic meeting designed to work out action plans for Beijing’s Belt and Road Initiative (BRI). It is undoubtedly China’s largest international event of the year, and will take place around the tenth anniversary of the initiative’s creation. A decade after the emergence of this global infrastructure project, it is important to point out its incredible geopolitical ramifications – as well as its impact at a basic human level.

At a basic strategic level, China’s BRI is genius. In his groundbreaking 1904 article titled ‘The Geographical Pivot of History,’ Sir Halford John Mackinder posited that the British Empire’s emphasis on naval power would lose significance as land transport in Eurasia developed to the point of creating what he termed the “World-Island.” This publication was one of the foundations of modern geopolitics and can be seen as a proof-of-concept paper for something like the BRI.

It can be said that by developing land-based trade arteries in Eurasia, China is developing an indestructible network of economic growth that is kneecapping today’s unipolar hegemon – the United States. While there is no indication that the BRI is in any way meant to be a military infrastructure project, the initiative’s development still represents a massive geopolitical tilt toward the multipolar world. 

As the Chinese Foreign Ministry, citing World Bank data, notes, the BRI has increased trade for participating countries by an average of 4.1%, attracted 5% more foreign direct investment, created 3.4% more GDP for low-income countries, and increased the GDP share of emerging and developing economies by 3.6% from the years 2012 to 2021. All told, the BRI is anticipated to generate $1.6 trillion in revenue each year by 2030. This has been an absolutely incredible boon for the world, particularly the Global South.

The World Bank also notes that the BRI will have helped 40 million escape poverty between 2015 and 2030. By the end of 2022, Chinese investment through the project has created 421,000 local jobs and successfully implemented over 3,000 projects. Most of these projects have been aimed at interconnecting global trade and solving practical issues related to people’s quality of life. 

To commemorate the tenth anniversary of the BRI and shine a light on the human-impact stories created through Chinese investment around the world, China Global Television Network (CGTN) partnered with local production teams around the world to create a new series called ‘Rising with Pride,’ which has now started airing. Journalist Oliver Vargas and I worked on the part of the series taking place in Bolivia, specifically in a village near the San Jose II hydroelectric power plant, one of the BRI projects. 

We spoke to a local indigenous man named Hector Cespedes Veizaga who lives in Colomi, Bolivia. Thanks to the power plant, he now had electricity to his house – something many in Bolivia’s rural communities have not had until recently. He said he was now able to stay informed about what’s going on in the world and in Bolivia, and his child could do homework unimpeded. Hector’s family is among at least hundreds of thousands of people to see the tangible benefits of the BRI.

The Chinese state has lifted more than 800 million people out of poverty over the last four decades, declaring victory against abject poverty in 2021, and is now helping others across the world. In addition to the BRI, China has also recently launched its Global Development Initiative (GDI) to fulfill a similar aim – though it can be said that this will focus less on tangible assets and more on projects that are sustainable and mutually profitable.

Still, the BRI has been marred by controversy – most of which is spread by Western officials and anti-China pundits. “Debt-trap diplomacy” is an often invoked one – and is also an easily debunked lie. If you look at the ratio of debt held by low-to-middle-income countries, it is always saturated with Western-backed loans from the World Bank, IMF, Paris Club, or Wall Street. China always makes up a tiny fraction. If you ever press for an example of Chinese loans tearing down a country, one can never be produced because one does not exist. (Deborah Brautigam and Meg Rithmire produced a great piece for The Atlantic that discusses why “debt-trap diplomacy” is bunk). 

We also hear all the time that China’s not simply making such investments out of the kindness of its heart – and, to be sure, that’s not even a claim that China itself makes, given how pervasive the phrase ‘win-win cooperation’ is in its diplomatic speak. The Chinese are certainly ruthlessly self-serving; however, it’s where this aligns with other people’s interests – and, as it would seem, there is quite a lot of convergence here – that things work out.

It doesn’t work out every time. For example, many countries within the 17+1 format (Cooperation between China and Central and Eastern European countries) have seen no tangible benefit to joining the BRI, prompting many of them to quit the format, having nothing to show for promises of billions of dollars worth of investment. Indeed, nine of the original 16 members of the format received no Chinese infrastructure investment by 2020 despite high hopes. 

The Baltic states and the Czech Republic had not even attracted a single project, despite the latter being promised several billion dollars in signed agreements. Another European country, Italy, the only G7 country in the initiative, is said to be leaving it soon, too, because of a lack of results. Rome had joined the initiative to much fanfare in 2019 – indeed, I recall this because I was in the city during Chinese President Xi Jinping’s visit – but apparently nothing beneficial came of it.

This all being the case, there are two important things to keep in mind. Just because the BRI didn’t benefit some countries does not mean it will not benefit others. The opposite is also true: Just because it benefits some doesn’t mean it will benefit all. On top of this, the presence of the BRI is inherently beneficial to the global order because it presents an alternative to Western-dominated development institutions like the World Bank and IMF. This is the entire point – to give alternatives and allow countries to choose what option is best for them. 

Moving calls to action expressed in Wiki Loves Africa’s “Climate & Weather“ competition winners 

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Emotive calls to action in the fight against climate change, as well as beautiful portrayals of the mercurial, and often devastating, nature of Africa’s weather were captured by the prize-winning images, videos and audios of this year’s Wiki Loves Africa competition around the theme of Climate & Weather.

In its ninth year, the competition now attracts professional photojournalists and filmmakers, as well as amateurs and Wikimedians intent on adding African content to Wikipedia, thus elevating the standard for the competition’s international awards. This has spurred Wiki in Africa, the international organisers of Wiki Loves Africa, to reward the community spirit of African Wikimedians with the African Environment Special Collection Prize, a prize to acknowledge their collaborative efforts. Another prize category added this year is the African Environment Video Prize. Both categories were sponsored by the African Environment WikiFocus, which  Wiki in Africa,  in collaboration with Wikimedia Community User Group Côte d’Ivoire, was tasked with organising and ran alongside Wiki Loves Africa 2023.
 

Each year, Wiki In Africa (www.wikiinafrica.org), the international organisers of Wiki Loves Africa (www.wikilovesafrica.net) sets a thematic challenge for the global photographic community – to submit photographs that represent the everyday reality of Africa. The competition has been running since 2014. Since then, the competition has encouraged the contribution of nearly 101,601 images to Wikipedia’s image bank under a free licence. Since January 2017, these images have been collectively viewed 1.3 billion times on Wikipedia articles.

This year, the Wiki Loves Africa competition called for photographers to contribute images that reflected its 2023 theme of Climate & Weather as it exists within the African context. The continent-wide call and events resulted in 12,961 entries from 784 media specialists and photographers from 46 countries, 57% of which were entirely new to the Wikimedia projects. 
 

Once the competition closed in April 2023, it was the incredible task of the five-tier jury process to pick out the winners. 

After an initial review of all the entries by a volunteer team of Wiki Loves Africa organisers and Wikipedians, the international jury of 11 professional photographers and 5 filmmakers from across Africa and Wikimedia, photographic specialists from around the world considered and deliberated on the collections. The quality of images was a key criterion in the photographic selection, as was the encyclopaedic value of each image, and whether an image was visually arresting, well framed and related to the theme. It was equally important to unearth the unexpected. The film jury were tasked with selecting a winner from the 228 videos uploaded during the contest. The process first commenced with a first review that saw the number reduced to 51 after which the jury began voting using google forms all through the rest of the process. At the end, 3 videos were identified for the 2 available categories of Best Video and the African Environment prizes. It is worth noting here that this Video jury was the very first of its kind in the Wikimedia / Wiki loves X space.
 

The 2023 Wiki Loves Africa winners across five prize categories hail from four different countries – Nigeria, Sudan, Somalia and Cote d’Ivoire. 

The 1st prize of USD$2000 goes to Sani Maikatanga, (Nigeria), a renowned freelance documentary photographer and photojournalist for his image of a man salvaging what he can from his shop in the 2020 floods in Auyo, Jigawa State, Nigeria. His  win has created a storm of publicity in the Nigerian news cycle. 

International juror and long time Wikimedia contributor, Michael Maggs, said of Maikatanga’s winning image “This striking photograph captures the stark reality of communities engulfed by floodwaters. The vibrant colours and clarity heighten the emotional intensity and visual impact of the image.”

Maikatanga showed his appreciation of the recognition Wiki Loves Africa has given his work by saying“Let me express that it is a true honour to attain this special recognition from you. Words cannot express enough how honoured I am for this prize you have given me.”

Rachel Zadok, International juror and Wiki in Africa board member feels it is the organisation who is honoured “It is us as the organisers who are honoured by the calibre of photographers who now mark the competition — and support our aims of decolonising narratives about  Africa on Wikipedia by ensuring that African content is created by Africans — as an important date on their calendars.” 

Announced alongside Maikatanga are the two runner’s up for best picture, and the four additional prize categories for Best Video, Best Audio, The African Environment Video Prize and The African Environment Special Collection Prize.
 

The 2nd prize (USD1500) went to Stormy Day in Somalia by Mohamed Nageeb Nasr, a photojournalist from Qatar, a first time entrant. 

As International Juror Rachel Zadok said “For me, this image captures so much about climate change, there is a sense of an apocalyptic wasteland captured here and a story of the human cost of environmental degradation. The struggle for resources driving war, displacing people, refugee camps, the loss of homeland for indigenous peoples and loss of habitat for fauna and flora. 

Visually, the muted colours convey the same desolate feeling as dust bowl farmland images in the great depression, yet it is so skillfully and beautifully lit. The composition of the mother staring into the distance while the child stares directly into the camera holding a panga as if his fate has been sealed is emotionally rending.  This image tells a global, local and personal heartbreaking story.”

3rd prize (USD1000) was awarded to Kids and the River by Mohamed Osman, a 26-year old Sudanese photographer and videographer. 

Summer Kamal, last year’s best picture winner, said of the poignant photo “A wonderful natural scene in terms of composition, lighting and colours. On the other hand, we find these boys standing looking at their future and the negative effects that await them as a result of evaporation and the drying up of rivers as a result of climate changes.”

“Bloomberg Africa Business Media Innovators” Forum 2023 to convene leaders from across Africa and internationally

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Annual gathering to be hosted in Cape Town, South Africa

Media, business, government, technology, and community leaders from across Africa, the USA and beyond will convene in Cape Town, South Africa to participate in the annual Africa Business Media Innovators (ABMI) forum on October 30 – November 1.

Co-hosted by M. Scott Havens, CEO, Bloomberg Media and Matthew Winkler, Editor-in-Chief Emeritus, Bloomberg News, and Erana Stennett, Corporate Philanthropy Middle East and Africa, Bloomberg. This year’s convening returns to South Africa, which was the inaugural host of ABMI in 2015, resuming in person for the first time since 2019. This sixth edition of the forum follows successful gatherings in Senegal (2019), Zambia (2018), Ghana (2017), Kenya (2016), South Africa (2015) and the virtual ‘ABMI Chats’ series in 2020 and 2021.

Leaders at this year’s convening will examine innovative business solutions re-shaping and contributing to the future of media and journalism both in Africa and globally. The gathering will provide a unique, forward-looking platform for actionable dialogue and peer-learning as media leaders in Africa prepare for journalism in the digital age.

M. Scott Havens, CEO, Bloomberg Media said: ‘Against the backdrop of a fragmented global media landscape and challenges to business models at both a local and global level, this forum provides an opportunity for fresh approaches, ideas and solutions to building sustainable media business models in Africa and beyond’.

Matthew Winkler, Editor-in-Chief Emeritus, Bloomberg News said: ‘ABMI comes at a time of growing optimism around Africa’s economic potential and aims to act as a platform for action to catalyse investment, growth, and development by contributing to the strengthening of business and financial reporting on the continent’.

This year’s convening focuses on the opportunities and challenges shaping the future of media in Africa. Key themes to be explored include the impact of new technologies, AI, and the future shape of work in newsrooms, along with a focus on the sustainability of legacy media across the continent against the backdrop of increased global competition. There will also be analysis of the current state of the media landscape in Africa and globally.

Speakers at this year’s forum include:


Tomiwa Aladekomo, CEO, Big Cabal,
Styli Charalambous, CEO, Daily Maverick,
Paul Cheung, Chief Executive Officer, The Center for Public Integrity
Thembisa Faukude, CEO, Mail & Guardian
Koyo Kouoh, Executive Director, and Chief Curator, Zeitz MOCCAA
Prof. Lesley Lokko, Founder, African Futures Institute
Nyimpini Mabunda, CEO, General Electric Southern Africa
Jocelyne Muhutu-Remy, Managing Director, Africa and the Middle East, Spotify
Nobel Laureate Maria Ressa, Co-Founder and CEO, Rappler
Pamella Sittoni, Executive Editor and Managing Editor, The Nation Media Group
Monde Twala, Senior Vice President & GM Paramount Africa & Lead BET International, Paramount International

The annual event is a component of the Bloomberg Media Initiative Africa (BMIA), a pan-African program launched by Michael R. Bloomberg in 2014. The initiative is designed to advance business journalism in Africa and accelerate development of a globally competitive media and financial reporting industry. The program delivers cross-disciplinary educational programs and mid-career fellowships to increase the number of highly trained business and financial journalists, as well as supports research to stimulate new media innovations. It is also designed to convene leaders to promote interactive dialogue and build strong relationships to enhance the quality of financial coverage and the availability of reliable and timely data on the continent.