African Agency, Finance and Developmental States

“Balancing both academic and policy orientations, Gorden Moyo not only makes the case for why Africa must untie itself and its development from the clutches of perennial dependency on foreign sources and modes of development financing, he also, most importantly, provides a way forward, offering up a menu of ideas, tools and policy pathways, at both the national and regional levels, by which Africa might assert the necessary agency in charting and financing its own development agenda.” —Prof. Kwasi H. Prempeh, Executive Director, Center for Democracy and Development (CDD) Ghana

“By tackling the complex and inextricably intertwined issues of African agency, finance, and development; Gorden Moyo has not only demonstrated great erudi- tion but also the value of engaged scholarship drawing from his experience in government and civil society; and the product is nothing but a priceless gift to Africa which is struggling with development challenges. I have nothing but praise for this ground-breaking work of scholarly excellence.” —Sabelo J. Ndlovu-Gatsheni, Professor and Chair of Epistemologies of the Global South, University of Bayreuth, Germany

“The underlying theme in Dr Moyo’s book is encapsulated in the title African Agency. Through this work, the author repositions the African continent and tries to understand why Africa has been relegated to the periphery. The interplay between theory and practice has been expounded elegantly from an honest schol- arly perspective. Finding a place for Africa in a multipolar world order is in line with the Africanisation agenda that has regained currency in African scholarship. The notions of ‘development finance’ and ‘decoloniality’ fit neatly in Dr Moyo’s Afrocentric analysis. The book is theoretically challenging and structurally sound. The nine chapters have been weaved together in a seamless manner. While the earlier chapters theorise the subject of the book, subsequent chapters are more practical, using specific case studies to elucidate the key arguments. This book is indeed a timely contribution to African scholarship and will appeal to various audiences, especially Africanist scholars.” —Prof. Bheki R. Mngomezulu, Full Professor of Political Science & Deputy Dean of Research, University of the Western Cape, EMS Faculty “This is a solid, well-researched and effectively reasoned book on the key issues at the centre of the continent’s resurgence: African agency, development finance, and African developmental states. It provides a robust framework of engagement for both academics and statecraft practitioners. African public policy formulation must be anchored by empirical studies such as presented in this book.” —Prof. Arthur G.O. Mutambara, Visiting Full Professor, University of Johannesburg; Former Deputy Prime Minister of Zimbabwe

“The book’s focus on African financial agency and the developmental state is a much-needed input in a context, where seemingly there are no alternatives to reliance on old or new donors, debt, or austerity. The analysis of mechanisms that make the free from external financial interests adds further nuance and crucial insights in this very current and timely book. Moreover, the accessible style of writing opens the often complex contents to a wide readership. Highly recommend literature on all counts!” —Friedarike Santner, Development Consultant, Austria

“In African Agency, Finance and Developmental States, Gorden Moyo persua- sively rejects the crippling economic relations between the developed world and Africa and sounds a battle cry for Africa to rid herself of the current economic shackles and chart a new order of viable and . Easy to read, the book provokes and the reader to optimistic paths of development. I highly recommend this must-read book to every developmental practitioner engaged in searching for alternatives for the continent.” —Prof. Adriano Nuvunga, Ph.D., Center for Democracy and Development (CDD) Mozambique Gorden Moyo African Agency, Finance and Developmental States Gorden Moyo Public Policy and Research Institute Lupane State University Bulawayo, Zimbabwe

ISBN 978-3-030-72411-5 ISBN 978-3-030-72412-2 (eBook) https://doi.org/10.1007/978-3-030-72412-2

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and informa- tion in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland This book is dedicated to my mother, Magie Sidlaliso Moyo (Nee Ncube) who took her last breath on 4 February 2015. Her earnest prayers, her soulful teachings, her tender rod, and her unforgettable tears of joy remain memorable pillars of my strength in times of difficulties. May her lovely soul rest in peace as she awaits the second coming of Christ. Acknowledgements

The vision behind this book would not have surfaced without the support, encouragement and assistance of many wonderful people and institu- tions. My special thanks are due to Prof. Sabelo Gatsheni Ndlovu, Prof. Arthur Mutambara, Prof. Reinford Khumalo, Prof. Francis Maphosa, Dr. Mandlenkosi Mpofu, Dr. Friedarike Sartner, Dr. Ricky Munyaradzi Mukonza, Dr. Nqobizitha Dube and Dr. Rodrick Fayayo who read one or more sections of the manuscript and provided me with useful feedback as well as suggestions for improving its readability. I also extend my deep sense of gratitude to Dr. Macdonald Lewanika and Mr. Frank Nyoni who favoured me with relevant and up-to-date research material. I also thank the authorities at Lupane State University for affording me the opportunity to test some of my ideas at the Faculty of Humanities and Social Sciences. My workmates including Dr. Cornelias Ncube, Dr. Sibonokuhle Ndlovu, Dr. Vezumuzi Ndlovu, Dr. Keith Phiri, Dr. Douglas Nyathi, Ms. Karren Dube, Dr. Donwell Dube, Dr. Thulani Dube, Mr. Buhle Dube, Mr. Sani Mutale, Ms. Precious Ngwenya, Mr. Simon Mlotshwa and Mrs. Siphilisiwe Ncube challenged my thinking in more ways than they would permit themselves to believe. I would also like to add a note of appreciation to all my students at Lupane State Univer- sity who have kept me grounded and taught me at least as much as I have taught them. My sincere appreciation also goes to the team that is associated with the Public Policy and Research Institute of Zimbabwe (PPRIZ), namely Prof.

vii viii ACKNOWLEDGEMENTS

Philani Moyo, Dr. Samukele Hadebe, Dr. Gracsious Maviza, Mr. Liberty Bhebhe, Mr. Sidumo Bhebhe, Ms. Nomagugu Moyo, Mr. Immanuel Ndlovu, Ms. Shantel Moyo, Ms. Bakani Ncube, Mr. Zibusiso Mkhwanazi, Ms. Daizyline Bhebhe and Mr. Milidzi Khupe for their moral, technical and logistical support. To all other friends and well-wishers whose names I have not mentioned, forgive my lapses. It is not for lack of affection and gratitude. I am also indebted to my editors at Palgrave Macmillan for their support and patience in seeing this book completed. It is truly a plea- sure to work with them and an honour to get my work published with an institution that is committed to knowledge production about Africa by Africans and Africanists. I deeply appreciate the system of scholarly peer review and the approach that this adds to the production of rich epistemies. My final word goes to my wife Ferdie who has lent me more support over the years than I could ever account for and our Son Dumoluhle and daughters Nomakhwezi Nomhle and Makhezulu Dumisile as well as a legion of my nephews and nieces who are a constant source of inspiration as well as a reminder that we need to do more in order to leave them and their own children a better Africa. My father Samuel Mazwemzini who is a nonagenarian has seen it all in Africa. I am blessed to have him as my living library.

Bulawayo Gorden Moyo February 2021 Contents

1 Introduction: Locating African Agency in Africa’s Development Agenda 1 2 Retracing the Footprint of African Agency 13 3 Navigating African Agency in a Multipolar World System 45 4 Reinserting African Agency in the BRICS Financing in Africa 75 5 Reflecting on ‘Chinese Debtbook Diplomacy’ 107 6 Rebooting Domestic Resource Mobilisation as a Decolonial Project 127 7 Deimperialising Financing of the African Union 155 8 Reimagining the Future of Development Finance 183 9 Conclusion: Reloading an Alternative Decolonial Development Project 207

Index 225

ix About the Author

Gorden Moyo is Senior Lecturer at Lupane State University, Zimbabwe. He is also the Founder of an independent think tank—the Public Policy and Research Institute of Zimbabwe. He received his Ph.D. in African Leadership Development from the National University of Science and Technology, Zimbabwe. He is former Minister of State in the Prime Minister’s Office and former Minister of State Enterprises and Parastatals. He has edited 3 books and published several peer-reviewed journal articles and book chapters.

xi Abbreviations

AAF-SAP African Alternative Framework to Structural Adjustment Programme for Socio-Economic Recovery and Transformation ACBF African Capacity Building Foundation ACPPD African Charter for Popular Participation for Development ADB ADERN African Decolonial Research Network AfCFTA African Continental Free Trade Area AFRICOM African Commando AMC Advanced Market Commitments AMV Africa’s Mining Vision APPER Africa’s Priority Programme for Economic Recovery APRM African Peer Review Mechanism ASEAN Association of South East Asian Nations AU African Union BASIC , South Africa, and BREXIT Britain Exit from the European Union BRI Belt and Road Initiative BRICS Brazil, Russia, India, China and South Africa CAP Common African Position CARI China-Africa Research Initiative CDB Chinese Development Bank CDF Comprehensive Development Framework CIT Corporate Income Tax CIVET China, , , Egypt and Turkey CNOOC Chinese National Offshore Oil Company CNPC Chinese National Petroleum Company

xiii xiv ABBREVIATIONS

COMESA Common Market for Eastern and Southern Africa CRA Currency Reserve Arrangement CRS Congressional Research Service CSOs Civil Society Organisations CSR Corporate Social Responsibility CT Carbon Tax DAC Development Assistance Committee DC Debt Conversion DDA Doha Development Agenda DFID Department for International Development DRC Democratic Republic of the Congo DSF Debt Sustainability Framework EAC East African Community EC European Commission ECOWAS Economic Community of West African States EITI Extractive Industries Transparency Initiative EPAs Economic Partnership Agreements EU European Union FAO Food and Agricultural Organisation FDI Foreign Direct Investment FOCAC- Forum on China-African Cooperation G-20 Group of Twenty G-77 Group of Seventy-seven GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product GNI GNP Gross National Product GNPOC Greater Nile Petroleum Oil Company HIPC Highly Indebted Poor Country HIV Human Immuno Deficiency IBSA India, Brazil and South Africa ICTs Information Communication Technologies IFFIm International Finance Facility for Immunisation IGAD Inter-governmental Authority for Development IMF International Monetary Fund ITC International Tax Compact ITD International Tax Dialogue LCP Local Content Policy LPA Lagos Plan of Action MCC Millennium Challenge Corporation MDGs Millennial Development Goals MDIs Multilateral Development Institutions MDRI Multilateral Debt Relief Initiative ABBREVIATIONS xv

MDT Makokoba Development Trust, MFIs Multilateral Financial Institutions N-11 Next Eleven NAFTA North American Free Trade Agreement NAM Non-Aligned Movement NATO North Atlantic Treaty Organisation NDB New Development Bank NEPAD New Partnership for Africa’s Development NGOs Non-Governmental Organisations OBOR One Belt One Road ODA Official Development Assistance OECD Organisation for Economic Cooperation and Development OOFs Other Official Flows PIDA Programme for Development Agency PIIGS Portugal, Ireland, Italy, Greece, and Spain PIT Personal Income Tax PPP Public Private Partnerships PTA Preferential Trade Area PWYP Publish What You Pay RECs Regional Economic Communities SADC Southern African Development Community SAPs Structural Adjustment Programmes SDGs Sustainable Development Goals SWFs Sovereign Wealth Funds TAZARA Tanzania-Zambia Railways TICAD Tokyo International Conference on Africa’s Development TPP Trans-Pacific Partnership UK United Kingdom UKZ Umkhonto kaZulu UN United Nations UNCTAD United Nations Conference on UNDP United Nations Development Programme UNECA United Nations Economic Commission for Africa UNESC United Nations Economic and Social Council UNESCO United Nations Educational, Scientific and Cultural Organisa- tion UNFCCC United Nations Framework Convention on Climate Change UNIDO United Nations Industrial Development Organisation UNISA University of South Africa UNNADA United Nations New Agenda for Development of Africa UNPAAERD United Nations Programme of Action for Africa’s Economic Recovery and Development USA of America xvi ABBREVIATIONS

USMCA United States-Mexico-Canada Agreement VSCWCI Voluntary Solidarity Contributions, Weather and Commodity related Insurance WB WEF World Economic Forum WTO World Trade Organisation ZNPU Zambia’s National Power Utility