Emerging Powers in Africa News Round-up : 21 May 2010

GENERAL

India, Brazil and South Africa lead effort against Child Labor
In less than two weeks, the labor ministers of almost 200 countries will participate in a global conference on child labor in The Hague, Netherlands. They will be working on a new "road map" to wipe out the worst forms of child labor by the year 2016. A major focus of the conference will be on three countries -- India, Brazil and South Africa. They have assumed the status of role models because of their own recent efforts to combat child labor. All three are being cited for exceptional political commitment Read more

The World Bank in the hot seat
The World Bank is marching ahead with plans to facilitate global land grabs and refusing to release a report that confirms the negative impacts of such deals for local communities. At its recent annual land conference, where the report was to be launched, the Bank tried to redirect the land grab discussion towards "win-win" solutions. Given the Bank‚s staunch corporate bias and the growing public rejection of its "principles" for socially responsible land grabbing its strategy failed. Read more

Africa has less say after changes in World Bank voting
Recent World Bank increases in the voting power of emerging economies mean that a third of the 54 countries in Africa have lost even more of their influence in the decision-making processes of the Bank Read more

Export Zones to Boost Africa's Manufacturing Industry
Export processing zones (EPZs) have mushroomed across Africa. Their logic is to attract export-oriented manufacturing investment to boost economies. EPZs, although they create controversy in certain circles, have been highl successful in Asia, central and Latin American countries. Is the attempt by Africa to follow suit bearing fruits?
Read more

Controversial Sudanese dam sparks human rights complaint
A human rights advocacy organization has filed a criminal complaint against a German engineering firm over its involvement in the Merowe Dam project in northern Sudan. The company has denied all allegations. Read more

Will Ethiopia's friendship with the West last?
When Ethiopian Prime Minister Meles Zenawi came to power in 1991, leaders in the West clamoured to meet the 34-year-old former rebel who had spent 17 years fighting to overthrow a communist regime. Ethiopia has remained close to the West ever since. But, as the country holds national elections on May 23, the opposition wants a re-examination of that friendship and some of Ethiopia’s Western allies are feeling the pressure. Read more

Africa's economic growth is expected to rebound to 4.8 per cent in 2010 after dipping by over 2 per cent in 2009
Most economies are expected to recover as the global crisis slowly recedes and demand for African commodities swells. Commodity prices, an important determinant of growth in many African economies, are expected to stabilize in 2010 and rise moderately in 2011, according to the report. However, the report cautioned that challenges lay ahead."Africa's long-term growth prospects and ability to sustain high rates of employment generation and broader social development depend on success in economic diversification," the report said. Read more

Africa's middle class: striving to develop a continent
Fifty years after the phenomenon of African independence brought an end to colonial rule, the African middle class has taken advantage of educational and professional opportunities to improve their status and to seek better futures for their families.
The continent's middle class does not often make international headlines nor is it much studied by academics, but the group is key to the continent’s progress, according to economists and political scientists. Read more

CHINA in AFRICA

FirstRand completes African deals with China Construction Bank
FirstRand Ltd., South Africa’s second-biggest lender, has completed its first transactions in Africa with China Construction Bank Corp. after the two agreed to cooperate last July. FirstRand and China Construction Bank, the world’s third- largest lender by market value, have focused on financing for mining, infrastructure, manufacturing and engineering projects. Read more

China in $23bn Nigeria oil deal
China has agreed to spend up to $23bn (€19bn, £16bn) to build oil refineries and other petroleum infrastructure in Nigeria, potentially strengthening its hand in the country as it seeks to secure 6bn barrels of crude reserves. The refineries would have a combined capacity of 750,000 barrels a day, well in excess of what Mr Egbogah forecast would be domestic demand of some 450,000 b/d by the time they are finished in a scheduled five years. Read more

Cement plant deal between China and South Africa sealed
Chinese and South African firms confirmed a huge deal was struck Tuesday for a cement plant in South Africa, as a high-level Chinese ministry of commerce official defended Beijing's investment policies in Africa. "China's presence in Africa is becoming more and more market-driven, the actors operating there are diverse, there are many models, and the areas they are in are broad," Vice Commerce Minister Fu Ziying told the Wall Street Journal Read more

China Development Bank gives Kenya's Equity Bank $51 mln loan
Kenya's Equity Bank said on Monday it had signed a 4 billion shilling ($50.82 million) financing agreement with China Development Bank for lending to small and medium businesses. Equity said it was the first beneficiary of a $5 billion Chinese fund for development of small and medium sized businesses in Africa.

Chinese investors to build cement factory in Mozambique
The China Development Bank is to fund construction of a cement factory in Beluluane, in Mozambique’s Maputo province costing US$100 million, the director of the Centre for Investment Promotion said Monday in Maputo Read more

Tunisian President and Chinese FM talk over co-operation
"Tunisia praised its friendship with China and allocates a great importance to develop a longlasting, deep and mutually-benefiting friendly relationship between the two countries," said Ben Ali, expressing his wish to strengthen further cooperation and exchanges in economy, trade, infrastructure, culture, and education and among young people. Ben Ali also expressed his appreciation for the Chinese development and for its constructive role in resolving international and regional affairs in the Middle East and Africa Read more

Guangdong enterprises targeting the African market
Although the impact of the international financial crisis, but some enterprises in Guangdong have to seize the business opportunities in Africa preferential trade, efforts to find a breakthrough, achieved in 2009 opener. According to Gongbei Customs statistics, in January of this year from various ports in Guangdong imported goods benefit from the value of Africa's preferential 1.4116 million U.S. dollars, the amount of 838,900 yuan tariff preferences, respectively, compared with the substantial increase over the same period last year, 133% and 222%. Read more

AEI Initiates Construction of Wind Farm in China
AEI announced today that its wholly-owned subsidiary, AEI China Power Limited, acquired 67 percent of NBT (Baicheng) New Energy Development Company, Ltd., a company formed in China that recently began construction on the 49.5MW first phase of a 200MW wind farm in Baicheng, Jilin Province, China. AEI acquired the equity from a subsidiary of NBT AS, a Norwegian wind farm developer focused on promoting renewable energy in China. Readmore

Chinese Ambassador to Rwanda Gives Speech on Rwanda Investment Forum
In his speech, Mr. Sun focused on the current situation of China-Rwanda cooperation and pointed out that China's investment and assistance to Rwanda were all in the key areas as listed in New Partnership for Africa's Development and Rwanda Vision 2020 and in accordance with Rwanda people's aspiration, interests and needs. At present, 4000 items exported from Rwanda to China enjoy zero-tariff treatment. China's investments in Rwanda such as the Star Media, New Century Hotel and A-link have also achieved great results and won wide attention from Rwanda and other countries. Some new projects including the Kigali International Conference Center and water plant are under negotiation Read more

INDIA in AFRICA

India’s Future Export Opportunities are in New Emerging Markets
Addressing the CII National Conference and Annual Session 2010, Union Minister of Commerce and Industry Mr Anand Sharma said that India’s future export and investment opportunities will be found in new geographies in ASEAN, Latin America, and Africa where a new middle-class similar to India’s own is rising. The Minister stressed the several economic diplomacy initiatives that the government was spearheading to reach out to these new markets. Mr. Sharma pointed to IBSA, BRICS, and India’s engagement with ASEAN through multiple channels such as the India-ASEAN FTA, India-Singapore CECA, the BIMSTEC and the Ganga-Mekong initiative as evidence of the seriousness that the government attached to its relationship with these new geographies. Read more

Soccer time! World Cup pulls Indians to South Africa
With the FIFA World Cup in South Africa just a month away, football fever seems to have started gripping fans in cricket-crazy India, with travel companies reporting a steady rise in inquiries for packages to the Rainbow nation. Read more

Speaker assures India’s support for Swaziland’s development
Lok Sabha Speaker Meira Kumar has called upon Swaziland Prime Minister Barnabas Sibusiso Dlamini and assured the African country of India’s support for its development. Read more

Plugging the technology gap with help from India
Investment in information technology can help Africa to improve governance, overcome poverty and deal with critical infrastructure gaps, taking India as an example, the co-chair of the World Economic Forum on Africa 2010 (WEF) said.
"There is no need to reinvent the wheel," Ajai Chowdhry, also chairman and chief executive officer of HCL Infosystems in India, told IRIN on the sidelines of a recent WEF conference in Tanzania. "India and Africa have similar problems so we can apply similar solutions. It's all been tried and tested in India, and the software is readily available to transfer knowledge and experience."
Read more

India pitches for South-South cooperation ahead of G15 summit
As leaders of 17 nations from Asia, Africa and Latin America gather in Iranian capital for the G-15 Summit, India is hoping the South-South cooperation will help address concerns and issues of relevance to the developing countries.
External Affairs Minister S M Krishna is representing India at the Summit on Monday where Presidents of Algeria, Brazil, Senegal, Zimbabwe, Venezuela, Sri Lanka and Iran are participating. "We value the strengthening of South-South cooperation and the important role of the G-15 process in addressing issues which are of direct concern and relevance to the developing countries," Krishna said here. Read more

Indian SMEs Carving a Niche in Namibia
Over the years, this African country has implemented some important policies to promote bilateral trade and investment with India. Indian SMEs eyeing expansion abroad have thus found an attractive market for growth and expansion in Namibia. The strategic location of the country makes it an ideal gateway to the thriving South African market. Read more

South Africa's coal exports to India falling
South Africa's coal exports to India from Richards Bay Coal Terminal (RBCT) fell to 1.7 million tonnes in April from 2.5 million in March, exporters said. But India's share of Richards Bay coal shipments remained stable at 44 percent of the total, they said. India became South Africa's largest single market for thermal coal this year and has absorbed all the tonnage unwanted by the weak European market. This trend is likely to continue for at least the next decade as as India struggles to fuel its growing number of coal-fired power plants. Read more

Indians to teach students in Africa via tele-education
Just like a typical classroom scene, a professor will deliver a lecture and students will raise their hands to ask questions. Only here, the teacher will be at the Delhi University (DU) campus while the students will be in Africa. As part of the Pan-African e-network project between India and Africa that was launched last year, DU will start conducting these unique tele-education classes for students of the African Union from July this year. Read more

Surat gem companies head for rough-rich Africa
With diamond roughs likely to become scarce in the coming years, a growing number of Indian diamond companies are setting up gem cutting & polishing units in nations producing roughs, particularly in Africa. In fact, there is a rush among Surat-based companies to set up diamond cutting & polishing units in Africa in order to secure assured supply of rough diamonds. Russia is another rough producing country where Indian companies have set up units Read more

Jay Shree Tea scouts for more acquisitions in Africa
Having set foot in the African tea industry, Jay Shree Tea & Industries (JTIL), the BK Birla group company, has firmed up plans to launch Rwandan tea in the UK, Germany, Pakistan and Kazakhstan under its own brand name Read more

In Other Emerging News

South Africa gets ready for world's biggest sporting event
One of the world’s biggest spectacles is about to don the rainbow shade, and South Africa is on a roll. "We all need to grab this opportunity to show our visitors what South Africa is all about. We need to work together with creative insight and energy after the World Cup to maintain arrivals to South Africa. This World Cup offers our industry and nation a rich legacy," Thandiwe January McLean, CEO of South African Tourism told ET.
Read more

The axis of Brazil
The recent visit by Luiz Inacio Lula da Silva, Brazil's president, to Iran is part of a broad multilateral foreign policy that he believes is commensurate with his nation's ever-growing importance in a changing world axis. Like India, Brazil is advocating for a permanent seat at the UN Security Council and wants reform of the International Monetary Fund (IMF) to better represent developing nations. Read more

Kenya seeks trade opportunities in Asia and Latin America
Kenya is shifting focus to emerging economies in Asia and Latin America to help bolster trade and investment in the country. The East African nation hopes the new trade strategy will help it achieve faster economic growth, which has remained elusive since the post-election violence that rocked the country after the disputed 2007 General Election. Read more

A Door to Africa: Standard Bank reaps the benefits of old thinking
To understand where Standard Bank is today, says its boss, Jacko Maree, you have to go back to South Africa in early 1987, when Standard Chartered, its original parent, sold out completely. Most South African firms were not welcome in the rest of Africa, he says, and “it wasn’t entirely obvious” that Standard Bank’s priority should be there or indeed in emerging markets at all. Read more

Construction of Mpanda Nkuwa dam in Mozambique depends on South Africa
The project to build the Mpanda Nkuwa hydroelectric dam (HMN), in Mozambique, depends on the guarantee that the electricity will be acquired by South African electricity company Eskom Read more

Egyptian energy firm to invest in Mozambique
Mozambique's independent daily Opais reported that Elswedy planned to spend 100 million dollars on rural electrification projects and another 100 million dollars on building small hydroelectric and coal- fired power stations. Elsewedy Electric Africa's Director, Hatem Abd, told reporters in Mozambique's capital Maputo that the company had already granted state electricity utility Electricidade de Mocambique (EDM) 11 million dollars in funding last year. Read more

Namibia and Angola have partnered to build a $1.1 billion hydropower plant
The move is going to help end power disruptions that have plagued both countries for decades. Paulinus Shilamba the head of NamPower, Namibia's state-utility firm, said in a Reuters report: "After a series of delays of the project, which includes a hydropower station and a storage dam in the Kunene river, is expected to be ready by 2017 Read more

South Africa says Africa needs green development
President Jacob Zuma said in a speech Tuesday that Africa's industrial revolution could be fueled by new technologies and renewable energy, but it will need substantial investment. Read more

Opinion & Events

Three-day Africa Festival opens in Indian capital
The ‘Africa Festival’, hosted by the Indian Council For Cultural Relations (ICCR), features national ballet troupes from five countries – South Africa, Rwanda, Tunisia, Malawi and Nigeria Read more

Soft Power: The Art Of Persuasion
The US was once the undisputed global powerhouse. Now it is under threat from contenders who use the influence of culture and lifestyle to fight for global economic and political dominance. This political manipulation is referred to as soft power – achieving what you want by attracting and persuading others to adopt your customs - thriving on control, not force. In this series, Philip Dodd investigates how this cultural rivalry is being formed and what weapons of persuasion are being deployed, from global sporting fixtures to cultural events and educational projects. In the first part, he takes a look at how China's global charm offensive is taking shape - why they want to be loved and take the world's attention Read more

From bleeding Africa to grabbing the land
In the last two or so weeks two, highly disturbing trends, have been reported concerning Africa's trials and tribulations. One is a long-term trend traced over the last forty years. The other is emerging but will most likely converge with the first one to seal the fate of the continent. Unfortunately both trends have not received the attention, urgency and publicity they deserve particularly in Africa. I am sure these trends will not receive such attention at the on-going World Economic Forum: "Rethinking Africa's Growth Strategy". Read more

A special report on banking in emerging markets: They might be giants
Emerging-market banks have raced ahead despite the financial crisis as their Western colleagues have languished. Patrick Foulis (interviewed here) asks how they will use their new-found strength. Read more

Blue Helmets for Africa: India’s Peacekeeping in Africa
A chronological account of India’s peacekeeping actions in Africa illustrates that country’s commitment to securing peace, the depth of involvement, the fatalities bravely borne and the hardships endured. Even more important, the record shows that India continues to use the experience that has been gained to refine its approach to peacekeeping. Read more

Indian companies are routing tens of billions of dollars through Mauritius each year in a giant tax avoidance scheme
India is changing its tax laws in a bid to introduce greater transparency into its financial transactions with Mauritius. The aim is to stem 'round-tripping' of funds by politicians, businessmen and criminal syndicates, and assuage concerns about the unregulated and 'hot' money, which transits through the Mauritian economy and into India. The licit and illicit financial flows from Mauritius account for as much as 90%, or tens of billions of dollars, of foreign direct investment in India each year. Read more

BLOGS
The Real Story: China's $28.5 Billion Deal in Nigeria: How Real Is It?
The Nigerian National Petroleum Corporation (NNPC) announced on Thursday last week that it had signed an MOU with China State Construction Engineering Corporation Ltd. to construct three oil refineries (about 250,000 bbl/day capacity each) and a petrochemical plant. The total cost would reportedly be $28.5 billion.
Read more

China's Africa policy changing and maturing
China's push into Africa in recent years has not been easy. In its pursuit of energy deals, supplies of commodities and large construction projects, China has gone where many developed nations fear to go. In doing so, and in following the Chinese foreign policy of noninterference in nations' domestic affairs, these projects have been met with their share of international criticism. China's Africa strategy seems to have matured, and deals are receiving much more scrutiny with respect to risk and return. Moreover, changes may be in the cards with respect to China's noninterference policy and its willingness to work with the World Bank and IMF Read more

BROUGHT TO YOU BY PAMBAZUKA NEWS

* Compiled by Anna Lena Wachter, intern based with the Emerging Powers in Africa programme.