Latest news with #BRI
Mail & Guardian
2 days ago
- Business
- Mail & Guardian
China's Belt and Road shifts focus to Africa with record-breaking investments
Africa received $30.5 billion in construction contracts — up from just $6.1 billion a year ago — and $8.5 billion in direct investments China's transactions with Africa through the Belt and Road Initiative (BRI) surged to $39 billion in the first half of 2025, outpacing all other regions and reflecting the Asian superpower's global infrastructure foreign policy pivot toward mineral-rich and high-growth potential African states. Countries on the continent received $39 billion in construction and direct investment from Beijing during this period as China looked to secure critical resources and forge new geopolitical alliances amid According to a recent Africa received $30.5 billion in construction contracts — up from just $6.1 billion a year ago — and $8.5 billion in direct investments. The Middle East came in second with $19.4 billion worth of Chinese investment. Nigeria emerged as the top beneficiary, securing $21 billion in construction deals, primarily focused on oil and gas processing infrastructure, followed by Saudi Arabia with $7.2 billion, the United Arab Emirates with $7 billion, Tanzania with $3.6 billion and Indonesia with $2.1 billion. BRI is not merely an economic endeavour 'but a geopolitical instrument, wielding influence through structured dependency', policy analyst Siseko Maposa told the Mail & Guardian. 'China's growth hinges on strategic alliances with mineral-rich states, financing critical infrastructure to establish supply-chain footholds that bolster its manufacturing dominance. The acceleration of BRI reflects countermeasures against global economic volatility, especially as the US and EU shift trade and investment to consolidate their own interests,' Maposa said. Since its launch in 2013, the BRI has reached cumulative engagement of $1.308 trillion across 150 countries that have signed cooperation agreements with China. This includes $775 billion in construction contracts and $533 billion in non-financial direct investments. But the 2025 data shows a shift in both scale and strategy — with Africa emerging as China's biggest investment venture. In the first half of 2025, Chinese energy-related investments reached $42 billion globally — the highest ever recorded in any six-month period, said the report. A significant portion of this went to oil and gas projects in Nigeria, while green energy saw $9.7 billion in new investments in solar, wind and waste-to-energy projects across the continent. Maposa said energy is a determinant to development, which further complicates Africa's development landscape. (Graphic: John McCann/M&G) 'African states still face barriers in attracting sustainable financing. China's model, unlike Western financing, which often comes with rigid conditionalities, offers more flexibility, which makes China a pragmatic partner. But African governments must ensure BRI terms support domestic value chains and promote debt transparency.' The minerals and metals sector saw a similar investment leap, with $24.9 billion in total BRI investment in the first half of 2025 — surpassing the previous annual record. Around $10 billion was channelled into processing infrastructure on the continent — a development that seems to align with local mineral beneficiation. Securing access to the continent requires elevated foreign direct investment and the shift toward value addition is becoming central to African policy, said Lauren Johnson, a senior research fellow at the South African Institute of International Affairs. 'African governments have moved in a direction of 'resource nationalism' which requires investors to invest in processing in-country for access to the minerals amid competition with the USA and Europe,' Johnson told the M&G. She said global developments, such as Donald Trump's political resurgence in the US and ongoing tension with the EU, have made finding new growth markets essential for China. 'China has already diversified investments into agriculture, such as soybeans in Angola and Ethiopia,' Johnson said. Maposa argued that, while the BRI serves as China's global infrastructure blueprint, African states should avoid framing it as a binary against Western alternatives like the US-backed Lobito Corridor — a rail project linking Angola, Zambia and the Democratic Republic of the Congo to facilitate mineral exports. He added that the focus should be on 'financing models that reinforce state sovereignty, interconnectedness and sustainable development, principles enshrined in the right of nations to self-determination'. 'Rather than treating these as adversarial, Africa should leverage their distinct value: the BRI offers scale, whereas Lobito provides specificity,' said Maposa. 'Where BRI diversifies infrastructure, Lobito's mineral-specific investments could model targeted, lower-risk partnerships if governed by African industrial priorities.' As China's footprint expands, concerns have grown about debt sustainability and the potential erosion of sovereignty. But Johnson said these fears need to be contextualised within responsible borrowing frameworks, adding that borrowing must always be for growth-generating investments. 'The core principle is that the rate of growth the investment will generate should be higher than the interest rate on the debt, ' she said. The real test, Johnson added, is how well African countries can align foreign capital with domestic development strategies. 'Equivalently, the race to secure important minerals should prove to African countries which nation is the better investor.' Maposa warned, however, that unless African states negotiate better terms, they risk remaining locked in 'perpetual extraction economies'. 'The race to the bottom is no abstraction,' he said. 'Major powers are actively courting resource-rich African states, often locking them into perpetual extraction economies. These dynamics trap African nations in a developmental paradox. True sustainability demands progression from raw mineral exports to value-added beneficiation, yet the prevailing system incentivises continued dependency on primary commodity production.' Johnson said African governments need to consider each case carefully and look at the opportunities — with both immediate and long-term goals in mind.
Irish Independent
3 days ago
- Business
- Irish Independent
New route announced at Shannon Airport as bank holiday surge expected
In an exciting addition to the summer 2026 schedule, Discover Airlines, a Lufthansa Group subsidiary, is set to introduce a direct, twice-weekly service from Shannon Airport to Frankfurt, Germany, starting on April 4. The route will operate on Saturdays running from April 4 to October 24, 2026, and on Thursdays from May 14 to September 24, offering passengers a quick two hour journey on board an Airbus A320-200. The new Frankfurt route will add more than 16,700 seats to Shannon's summer schedule. Welcoming the announcement Mary Considine, CEO, The Shannon Airport Group said: 'This is more fantastic news for Shannon Airport and the Mid-West business community. 'Having direct access to Frankfurt, one of Europe's key airport hubs and a leading financial centre, opens up incredible opportunities for both connectivity and growth. 'It's a win not just for business travel, but also for regional tourism. 'Germany is a hugely important market for us, and with this new direct route, inbound visitors have an easier path to the beauty of the Wild Atlantic Way and all that the West of Ireland has to offer.' As part of the Lufthansa Group, Discover Airlines will connect to the vast Lufthansa Group network through their Frankfurt hub. This offers convenient and regular onward connections to destinations across Germany, Europe and beyond. The news comes as Shannon Airport is anticipating one of their busiest weekends of the year. The airport is preparing for a bustling August Bank Holiday, with almost 60,000 passengers expected to travel through the airport over the period - marking a 10 per cent increase compared to the same period in 2024. This continued growth reflects a strong performance for Shannon Airport in 2025, with over 1.04 million passengers recorded in the first half of the year – a seven per cent year-on-year increase. "We're delighted to see such strong demand this August Bank Holiday period,' Ms Considine said. 'The increase in passenger numbers is a clear sign that our investments in connectivity, infrastructure and customer experience are paying off. 'Shannon is thriving, and we're proud to be playing a key role in supporting tourism and business across the region." Passengers travelling over the Bank Holiday period are advised to arrive two hours before short-haul flights and three hours before long-haul departures. It is also strongly advised to pre-book parking via ahead of what will be an exceptionally busy weekend. Shannon Airport has also recently taken home the crown for 'Ireland's Top Airport Brand 2025', retaining its position as the country's top airport brand for the third consecutive year, according to the RED C Brand Reaction Index (BRI) Ireland 2025. The newly released index, which lists the top 176 most emotionally connected brands, shows Shannon Airport placed at number 48, up three places on last year's list, and once again making it the highest-ranking airport brand in the country. 'We are absolutely delighted to be recognised as Ireland's top airport brand for a 3rd year running,' Ms Considine said. 'An excellent customer experience is always our priority here at Shannon Airport, so this comprehensive Red C testing is really important as a measure of how we are connecting with customers and delivering on that every year. 'We're incredibly grateful to our loyal passengers - not just for choosing to fly Shannon, but for recognising what we work so hard to deliver every day: great value, accessibility, convenience and comfort. 'Our fantastic teams across Shannon Airport consistently go the extra mile to make each journey smooth and enjoyable, and this announcement is a true reflection of their passion and dedication. 'A huge thank you to them all.'
AllAfrica
3 days ago
- Business
- AllAfrica
Xi's charm offensive cuts both ways in the Global South
Chinese President Xi Jinping is on an economic charm offensive across the Global South's emerging markets. As tensions with the West escalate and economic headwinds gather at home, China's president has turned to emerging markets with promises of investment, infrastructure and deeper trade ties. From Southeast Asia to the Gulf, Chinese officials have been busy striking deals and hosting summits, pitching Beijing as a stable, pragmatic alternative to a more unpredictable United States. A notable example of this offensive is Chinese Premier Li Qiang's attendance at the Gulf Cooperation Council (GCC)–ASEAN summit in May 2025, which aimed to 'offer vast opportunities to synergize our markets, deepen innovation, and promote cross-regional investment.' Notably, Beijing opted to attend the summit instead of the Asia-Pacific-focused Shangri-La Dialogue, where the US and its allies regularly criticize China over its security practices. This development underscores Beijing's policy preference shifting away from fighting the rhetoric about its territorial disputes to crafting a narrative about China as an alternative economic partner amid global disapproval of Washington's trade policies. Washington's ongoing tariff war has dented China's economic confidence, with metrics such as retail sales and fixed-asset investment both slightly underperforming in April 2025, according to Dutch bank ING. Amid this uncertainty, Xi's diplomatic appeals appear to be garnering a warm reception amongst emerging economies. A study by Australia's Griffith University and the Green Finance & Development Center in Beijing found that Chinese construction contracts and investments in Belt and Road Initiative (BRI) countries totalled US$124 billion in the first half of 2025, up slightly from $122 billion the previous year. The BRI is a program through which Beijing and Chinese firms fund or build infrastructure across the world. This new BRI activity will likely contribute to China's macroeconomic strength by helping improve its real GDP growth. For example, the initiative has shifted from sovereign lending to foreign direct investment (FDI), which may help ease concerns about China's mounting sovereign debt exposure. However, behind the diplomatic fanfare lies a more fragile reality. China's sluggish internal growth continues to weigh heavily on Beijing and will likely curtail any lasting benefits from Xi's charm offensive. Indeed, the BRI expansion was largely prompted by 'slow domestic growth and the need to diversify supply chains and markets due to the trade war sparked by Trump's tariffs.' However, China's cooling economy, rampant overcapacity concerns and faltering demand amongst domestic consumers paint a bleak picture for potential Chinese trading partners. According to 2025 second-quarter data released by Beijing, the country's real economic growth remained steady at 5.2% year-over-year (YoY). However, nominal growth, which reflects what companies actually receive in revenue and workers in wages, was significantly weaker at 3.9% YoY. This gap highlights a broader and persistent trend: the decline of China's middle class. China's middle class has historically served as both the driving force behind and primary beneficiary of the country's economic growth. But now, 40% of that group has seen their wealth decline in recent years, particularly among the younger generations. The traditional markers of a secure middle-class life, a stable job in the public sector or in industries like tech and finance, home ownership and upward mobility, are in decline. The free fall of China's property market has been especially damaging, given that most middle-class wealth is tied up in real estate. Coupled with the country's harsh 996 work culture, many young Chinese are now questioning the socio-economic values that once propelled China to global prominence. This generational shift has produced a 'tang ping' or 'lying flat' mentality. This mentality shift is marked by a retreat from conspicuous consumption and a preference for domestic over imported goods. This shift in consumer habits poses a challenge for Xi's efforts to deepen trade with emerging economies. On one hand, Chinese firms benefit from new markets to sell goods and services. On the other, China's shifting domestic market no longer offers its partners reciprocal opportunities. The one-sided nature of this emerging economic model may give countries like those in ASEAN pause. This will be particularly true as these emerging markets come under increased scrutiny from the US and EU for their deepening integration into Chinese supply chains. As a result, emerging economies are likely to remain cautious about further integration with China unless there are clear signs of an improving domestic outlook. Yet such signs are increasingly difficult to detect as Beijing continues to obscure information about its socio-economic health. Analyses of China's National Bureau of Statistics have discovered that the agency has ceased publishing several key indicators, including unemployment and land sales data. This deliberate suppression of information comes amid rising speculation that Beijing has overstated its actual economic performance. This question about China's socio-economic health was raised in December 2024 when Gao Shanwen, chief economist at state-owned State Development and Investment Corporation (SDIC) Securities, publicly stated that real economic growth in China 'might [have been] around 2%' in recent years. Gao's remarks – which contradicted China's official narrative – led to his being 'disciplined' by Xi and banned from making further public comments. The episode highlights two critical concerns for emerging markets considering deeper ties with China. First, while China remains the world's second-largest economy, the health of its domestic market is potentially far less robust than Beijing portrays. That makes China a less attractive long-term investment opportunity, particularly as Chinese consumers increasingly favour domestically made products over foreign imports. Second, the Gao incident underscores a broader trend: Beijing's readiness to suppress dissent. More worryingly for foreign businesses, this supression may not just be targeted at domestic citizens but potentially foreign investors as well. Historically, the aforementioned repression targeted Chinese nationals and local businesses. But recent signs suggest that foreign executives are no longer immune. In one recent high-profile case, a Japanese pharmaceutical executive was sentenced to three and a half years in prison on espionage charges. This executive spent more than two decades in China and was active in the Japanese Chamber of Commerce in China. Other Japanese citizens have been held on espionage charges prior to this incident. However, the timing of the arrest, amid US-spurred efforts for Tokyo to economically decouple from Beijing and China's own military provocations, raises alarms. It suggests that as geopolitical pressure mounts, China may increasingly use its opaque legal system as a tool of coercion to ensure new and old trading partners do not drift from China's sphere of influence. This presents a broader risk if, for example, Trump intensifies efforts to push emerging economies seen as enabling the sale of cheap Chinese goods into the US, like Vietnam, to distance themselves from Beijing. Trump could use his tariff diplomacy style to force these emerging economies to make economic choices that are not necessarily in their own interests. In turn, China may respond by targeting foreign businesspeople in retaliation, using its opaque legal system to reinforce political-economic loyalty and prevent strategic drift. Against this increasingly tense backdrop, Xi's charm offensive may generate photo ops and pledges of cooperation. But it does little to address the deeper weaknesses at the heart of China's economic and political system. A shrinking middle class and an increasingly politicized business environment all point to a system under strain. The trade and investment opportunities Beijing offers may look appealing on the surface, but they come with conditions and risks that emerging economies would be wise to scrutinize carefully. Unless China undertakes serious domestic reform and opens its economy in good faith, those enticed by its charm offensive may find themselves entangled in unequal and unstable partnerships with more to lose than to gain. Hans Horan is a strategic analyst at the Hague Centre for Strategic Studies (HCSS) think tank, specializing in the Indo-Pacific, cyber threat intelligence, and security and defense affairs. He previously worked for over seven years in the intelligence and security industry for both private and public sector organizations across the globe, where he served as their lead cyber intelligence and principal Asia-Pacific analyst.
Mint
3 days ago
- Science
- Mint
China blends religion with AI, launches new weather warning system inspired by sea goddess Mazu
China has launched Mazu, an AI-based weather warning system. It is named after the Chinese sea goddess. The AI tool can help developing nations handle natural disasters. The system was revealed at the World Artificial Intelligence Conference in Shanghai. The name Mazu holds deep meaning, especially along China's coast. Known as the protector of fishermen, her temples still stand in Fujian and Taiwan. In 2009, Mazu beliefs were listed as UNESCO cultural heritage. The initiative is part of China's Belt and Road Initiative (BRI. Started in 2013 by President Xi Jinping, it is the world's largest global investment plan. It connects 147 countries across Asia, Africa and Europe. Built for global use, Mazu aims to support countries by offering early warnings for extreme weather, according to the South China Morning Post. China's weather body, the China Meteorological Administration (CMA), is working with nations like Ethiopia and Pakistan to develop these systems together. Zeng Qin, CMA's director of international cooperation, said, 'Wherever Mazu is seen around the world, it serves as a symbol of our joint response to extreme weather.' Many countries have strong weather warning systems. In the US, the National Weather Service uses powerful computers and radar to give accurate forecasts, especially for hurricanes. In the US, free weather data is given by the NWS and NOAA. Japan leads in earthquake and tsunami alerts. The EU's Copernicus programme uses satellites to track environmental changes and predict weather. However, these systems mostly help their own regions and focus on specific disasters, according to SCMP. They also rely on local supercomputers. India is using artificial intelligence and machine learning to improve weather forecasting. The India Meteorological Department (IMD) now uses AI for better rainfall and cyclone predictions, heatwave alerts and quick warnings for cloudbursts. The Ministry of Earth Sciences has set up a special virtual centre at IITM Pune for AI-based research. Under Mission Mausam and WINDS, over 2 lakh weather stations are feeding real-time data to improve local forecasts. The Central Water Commission is using AI for seven-day flood warnings. AI models are also helping predict monsoons better than older methods.
The Diplomat
3 days ago
- Climate
- The Diplomat
What Is Behind Gwadar's Continued Water Woes?
The thirsty port city is once again fighting for water, with no permanent solution in sight. Nisar Dagar near Pishukan in Pakistan's Gwadar district, which was previously a wetland, is now completely dry due to the ongoing drought. In Gwadar, Pakistan's multimillion-dollar port city, hundreds of women and children have been protesting water shortages since early June. They bring empty buckets and containers to their protest site at the Fish Harbor Road to block one of the routes to Gwadar Port. Temperatures in Gwadar can go as high as 45 degrees Celsius. That doesn't deter them; they keep returning to the streets, protesting, blocking roads and burning tires — all in the hope that someone in power might address the ongoing water crisis. With drought taking over and water levels in dams dropping to historic lows, questions are being raised not just about the current water crisis, but about decades of neglect that have pushed Gwadar to this situation. How will Gwadar's 260,000 people survive without a sustainable and long-term strategy in place? One of Pakistan's most important cities, Gwadar is the gateway to the China-Pakistan Economic Corridor (CPEC), a flagship project of China's ambitious Belt and Road Initiative (BRI). Already, China has spent around $28 billion on CPEC and some $230 million on Gwadar city, including its water infrastructure. Yet, something as basic as access to water remains an unresolved issue for the people of Gwadar. What Is Behind the Crisis? Gwadar's main source of water is rainfall. But weather patterns have been changing, and like the rest of Pakistan, Balochistan's southern coast, where Gwadar is located, is beginning to suffer the impacts of climate change. Winter downpours that were once common in the region have become a rarity, and when they do arrive, they bring destructive flooding, as was seen in 2005, 2007, 2010, 2022, and 2024. Despite these episodes of heavy rainfall, droughts have also become more frequent and of longer duration. Since 2012, Gwadar has faced acute water shortages not only due to dry spells, but also because authorities have failed to plan and prepare for changing weather patterns. 'This crisis is not merely a result of absolute water scarcity, but a consequence of ineffective water governance, lack of climate change adaptation, and the absence of policies that reflect the realities on the ground,' Pazeer Ahmad, a Gwadar-based researcher and hydrologist, told The Diplomat. 'Solutions such as water conservation, storage, and groundwater recharge are underutilized,' he said. For over two decades, the Ankara Kaur dam was Gwadar's only source of water. As the population grew, so did the number of infrastructure projects like the Gwadar Port and several other projects under CPEC, including roads in and around the city, the East Express Way, a new international airport, and a number of educational institutions. Hence, the Ankara Kaur dam was no longer sufficient to meet Gwadar's needs. Low rainfall and a massive build-up of silt in the 17,000-acre Ankara Kaur reservoir worsened the problem. In 2016, two new dams — Sawad and Shaadi Kaur dams — were completed. Construction of the Sheizank and Shanzani dams followed. Yet all these dams failed to end the water crisis. 'Ankara Kaur dam is completely dry,' Bahram Baloch, a local journalist, told The Diplomat. 'Currently, the Sawad dam is the only one providing water. But its water will last for the next three to four months, before it also completely dries,' he said. There are severe water shortages in Gwadar. 'People receive water once every ten to fifteen days,' said Nabi Buksh Baloch, a resident of Gwadar Old City. He told The Diplomat that households store water in underground tanks. 'Wealthy families have larger or more than one underground tank and use pumps that pull more water. This makes it harder for others to access water,' he said. 'Pipelines linking the Shaadi Kaur dam with Gwadar city have been installed. But these are not supplying water as funds are needed for electricity, pumping, and maintenance of infrastructure. So, a potentially valuable water source remains unused,' Bahram Baloch pointed out. Complicating the issue, water supply is overseen by two departments — the Gwadar Development Authority (GDA) and Public Health and Engineering (PHE). 'Although water supply has been the PHE's responsibility, of late, the GDA has also gotten involved. They were the ones to install pipeline connections from Sawad to Gwadar City. Both want to control water projects and this could be causing delays,' Nasir Rahim Sohrabi, an activist and president of a local development organization, said. Why Have Desalination Plants Failed? There is the water of the Arabian Sea that Gwadar can draw on. To this end, 11 desalination plants have been set up in Gwadar district, but none currently provides water to the city. 'Although desalination is a viable solution, it is a costly process and needs constant power supply, which the region lacks, Sohrabi told the Diplomat. Many of these plants were set up with Chinese funding. For example, a 1.2 million-gallon-per-day (MGD) desalination plant was installed through CPEC funding at an estimated cost of $12.7 million. Another 5 MGD plant costing $5 billion is under construction. In 2023, China also donated a desalination plant, which it says provides 5,000 tons of potable water per day. New plants are being set up when existing ones are not functional. 'Although such plants may create the impression that the crisis is being taken seriously, each new plant is only a new photo session opportunity for the successive governments,' Nabi Buksh Baloch said. 'Each desalination plant,' he said, 'brings in more funding. That also means more opportunities for those in power to misuse the funds.' The Quick Fix of Trucking in Water Authorities have also tried trucking in water. During droughts in 2012 and 2017, for example, when Gwadar only had pipeline connections with the Ankara Kaur dam, the government paid tanker companies to truck in water from the Meerani dam, located in the neighboring district of Kech, around 150 kilometers from Gwadar city. This was a burden on the government. According to Nabi Buksh Baloch, 'many officials from the PHE and the local administration allegedly pocketed funds meant for water supply. Consequently, many tanker owners went unpaid and they often cut off water supply to residents.' These days, the government is no longer hiring tanker companies for water supply to Gwadar. 'So now when supply is short, those who can afford it buy water from tankers, which costs around $70-$90 per tank, that too for contaminated water, as the trucks source it from nearby ponds,' Nabi Buksh Baloch said. Is Corruption Fueling the Crisis? Corruption is yet another issue. Earlier this month, the Public Accounts Committee (PAC) of the Balochistan Assembly pointed out financial irregularities in the functioning of the PHE. This isn't the first time that such corruption has been laid bare. In 2021, the National Accountability Bureau's Balochistan chapter detected corruption to the tune of $4.46 million in one of Gwadar's water desalination projects. In addition to these massive corruption cases, 'residents are often forced to pay a bribe to the 'valve-man' if they want to fill their home tanks. While officers at higher levels benefit from massive funds, the lower staff exploit residents by demanding petty bribes,' said Nabi Buksh Baloch. Can the Crisis be Resolved? Despite several dams being constructed, desalination plants being installed, and billions of rupees being spent on water infrastructure, Gwadar's water woes persist. The water crisis is not the result of water scarcity alone. Failure of effective planning, lack of transparency and accountability, misuse of funds, and lack of climate adaptation measures are also to blame. Larger dams can store more water during rainy seasons. These could help deal with water shortage during droughts. These dams need to be well-connected with the city through pipeline systems. There is also no need for more desalination plants, but it's crucial to make operational the ones already set up. 'Gwadar is not without water resources. It has the Arabian Sea, groundwater reserves in Dasht and Jiwani, and surface water of Sawad and Shadi Kaur dams,' Ahmad said, adding that 'what's lacking is the political will and capacity to manage these resources and climate-resilient planning.'
