Emerging Powers in Africa News Round-up

General

US goes high-end to boost export trade with Africa
The US is moving higher up the products advancement ladder to keep its share of trade with Africa where competition for the low-end market has intensified with availability of cheap goods from emerging economies such as China and India.
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China in Africa

The Gibe 3 Dam – A Test Case for China’s Role in Africa
The Gibe 3 Dam in Ethiopia is Africa’s most destructive dam project. So far, the Ethiopian government has not managed to attract any international finance for it. After several other funders pulled out, China’s biggest bank is expected to decide about a loan for Gibe 3 soon. The decision is an important test case for the environmental responsibility of China’s overseas lenders.
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China denies “exporting” convict labour for overseas projects
The Chinese Ministry of Commerce on Tuesday denied reports that Chinese firms were employing prison labour on overseas projects, describing the reports as “nonsense with no facts or evidence.” The government was responding to recent articles by New Delhi-based scholar Brahma Chellaney, a professor at the Centre for Policy Research, which described the use of forced convict labour on infrastructure projects in Sri Lanka and in building 4,000 houses in the Maldives.
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Hostility Toward Workers Cools Angola-China Relationship
Here, the love affair between China and Africa is on the wane. Oil-rich Angola, the recipient of at least $8.5 billion in infrastructure loan agreements from China, has become a symbol of the Asian nation's strategy in Africa. But cracks are showing in the relationship between the two countries, at a time when China is already showing a new interest in other regions—notably, ones where Western nations are reluctant to do business. Human-rights activists say Chinese workers and companies have been singled out for physical attacks. Meanwhile, staff and facilities have been targeted by antigovernment forces.
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China unveils proposals for agricultural cooperation with Africa
Chinese Vice Premier Hui Liangyu Thursday put forward proposals to step up agricultural cooperation with Africa. Addressing the closing ceremony of a China-Africa agriculture forum, Hui proposed enhanced exchanges among agricultural departments, improved Sino-African agricultural cooperation mechanisms, and high-profile talks to set out the methods, key areas and plans for cooperation.
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VP woos China to modernise Kenya's agriculture
Mr Musyoka who paid a courtesy call to the Chinese Vice President Mr Xin Ping at the Great Hall of the People in Beijing before attending the opening ceremony of the China-Africa Agricultural Forum, said there was need for Chinese firms to invest in the setting up of farm machinery manufacturing plants in Kenya that would serve both Kenya and the 120 million people in the East African Common Market.
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Zambia: Daka woos China to transfer its agro-tech
Agriculture and Cooperatives Minister Peter Daka has called on China to consider transferring appropriate technologies in agro processing, aquaculture, irrigation and other areas that would help Zambia maximise its potential in the agriculture sector.Mr Daka has also called for private investment in supporting the production of various crops such as pineapple, mango, cashew nuts and groundnuts. The minister said technology transfer in other areas such as monitoring of environmental quality, animal vaccines, infrastructure development, equipment and research would benefit agriculture in the country.
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China, Africa forge farming ties
China's agricultural cooperation with Africa requires more strategy than passion, an executive from a leading Chinese agribusiness company has said, as the country plans to strengthen the China-Africa new strategic partnership with more focus on agricultural links. "The fragile political situation is still the biggest challenge for Chinese companies to invest in Africa," Xu Jun, deputy general manager of China State Farms Agribusiness Corporation (CSFAC), told China Daily on Tuesday.
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Chinese space centre to aid Namibian development efforts
Namibian science received a boost last month when China's first man in space, Yang Liwei, visited the country as part of a delegation to the China Space Tracking, Telemetry and Command Station, which Namibia hopes will lift its development effort.
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China’s Egypt, Africa investments
In the Middle East, no matter where you go, Chinese goods and products can be seen and bought everywhere: from the souq in Aleppo to the handbag stalls in Nablus; from Syrian taxis to the public buses roaming the streets of Tehran; even many religious garments such as Islamic headscarves and hats are now Chinese made – and a lot more are readily available at the Khan al-Khalili bazaar in Cairo. Likewise, in Africa, numerous Chinese firms are busy constructing public works and repairs with the blessing of many leaders from the Third World. For Egypt, its strategic location with immediate access to three continents means China not only regards it as an important trading partner in its own right and across the Arab World, but also as a stop-over and conduit for many more lucrative opportunities north in the Mediterranean, and also further south in deepest of Africa from mining, road construction to the continent’s fastest-growing sector: telecommunications.
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BOC marks 10 years in South Africa
Bank of China (BOC) - the most internationalized bank in China - has long been committed to promoting foreign trade and international economic cooperation. Africa is an important strategic partner of China, and has received special attention from BOC. BOC sets the standard for all Chinese banks associated with foreign economic aid or bilateral trade and investment with Africa. The bank has yielded remarkable results by fully leveraging its business strengths to provide quality services and achieve mutually beneficial cooperation. Founded in 1912, China's oldest bank is celebrating 10 years in South Africa.
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SA eyes economic ties with China: Ntuli
Trade and Industry Deputy Minister Maria Ntuli says South Africa is interested in partnerships that will support economic development with China. Speaking at a five-day World Expo 2010 in Shanghai, China, Ntuli said South Africa beckons for Chinese companies that are interested in investing in the country.
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India in Africa

India Show in Johannesburg to push trade with Africa
A four-day "India Show" in Johannesburg from Aug 29 will kick off a drive to push trade and economic ties with South Africa and use it to make a major foray into the African continent. India's Commerce Minister Anand Sharma and Tata Group chief Ratan Tata will lead the government-corporate mission whose target is to have $12 billion two-way trade by 2012. Organised by the commerce and industry ministry, jointly with leading industry chamber Confederation of Indian Industry (CII), an exhibition at the MTN Expo Centre, the country's largest, is among the highlights of the "India Show".
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Business forum launched to engage with Africa
To mark the increased engagement of India and Africa, a new forum has been launched to encourage more intense economic and business collaboration, powered by a shared interest in forging mutually advantageous ties. The first meeting of Indo-Africa Business Forum was held Tuesday night, with visiting Ugandan Agriculture, Animal Industry and Fisheries Minister Hope Mwesigye in attendance. Mwesigye, who is on a short visit to India, said that there was vast scope for Indian businesses to harness the opportunities in Africa, especially in her country, Uganda.
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India signs $42 mln loan with Congo following debt relief
India has signed a deal with Democratic Republic of Congo to extend a $42 million credit line for building a hydroelectric plant, Congolese and Indian officials said on Thursday. The deal falls under a $263 million loan commitment from India that it agreed with Congo late last year.
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Govt delegation in India on business mission
A GOVERNMENT delegation is in India on a business promotion mission intended to sell Zambia as an investment destination through the Public Private Partnership (PPP) concept.The team which will conduct a series of presentations on investment opportunities in agriculture, energy, education, health, hydro-power, construction, transport and communication and tourism in New Delhi and Mumbai, is led by Education Minister, Dora Siliya. Officially opening the Zambia Business Promotion seminar being attended by a cross section of Indian companies, Ms Siliya said Zambia was inspired by India whose commitment to developing the country through hard work, was an example to emulate.
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Bharti Airtel expands into Seychelles, even as profits dip
Indian mobile operator, Bharti Airtel, said on Wednesday that its board had approved its acquisition of Telecom Seychelles in a deal valued at US$62 million, in its bid to increase its presence in Africa. The Seychelles operator has a 57 percent share of the market and offers 3G mobile and fixed telephone service, Bharti Airtel said in a filing to the Bombay Stock Exchange.
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Rising India takes aim at Africa's resources
South Africans may have a penchant for importing cheap Asian goods, but Asians are relying more and more on African resources as a buttress to their own success. Total exports to Asia from SA have lifted 11.6 percent in the year to June 2010 to R90.9 billion and as the trend continues and more Asian countries join the queue, SA growth is likely benefit.
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Africa has bigger potential than even India
Manoj Kohli, the head of Bharti Airtel Ltd’s international operations, is just back from his second visit to Africa, one in which he covered eight of the 15 countries in which the company is present in the continent (he covered all 15 on his first trip last month and is off again by the end of this week). In an interview with Mint, he spoke about Airtel’s Africa opportunity. He began the interaction by claiming that Shakira was indeed right: “It’s time for Africa,” he said.
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In Other Emerging Powers News

Indian warships to exercise with Brazil, S Africa
India's warships will be on a two-month long deployment in African coast when they will hold a trilateral exercise with navies of Brazil and South Africa, apart from carrying out anti-piracy patrols in Mauritius and Seychelles beginning this weekend. Four warships including a destroyer and two frigates from the Navy's Western Fleet would be deployed in the Indian Ocean Region when they would also visit Kenya, Tanzania, Mozambique and South Africa, where the biennial IBSAMAR (India-Brazil-South Africa Maritime) exercise will be held.
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Brazil's state bank, partners push into Africa
Brazil's biggest state-run bank and two other partners announced an expansion in Africa on Monday in the latest sign of growing financial links between emerging markets. Banco do Brasil, Latin America's largest bank by assets, said in a regulatory filing it will team with local private-sector giant Banco Bradesco and Portugal's Banco Espirito Santo (BES) to tap Africa's growing appetite for consumer loans, credit cards and other products.
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Brazil's electronics sector eyes Africa
Brazil's electronic sector is keen to expand exports into Africa in a bid to drive revenue to what is the country's equivalent of the US's Silicon Valley.
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Surge in Chinese investment reshapes Brazil ties
Surging Chinese investment in Brazil is reshaping ties between the countries as companies seek to secure resources and tap the rising consumer class in Latin America's largest economy. From virtually nowhere, China has rocketed to become the biggest foreign direct investor in Brazil this year with purchases ranging from iron ore mines to vast tracts of farmland and the electricity grid.
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Succeeding a success
If India were a nation of gamblers, the betting on who will succeed Ratan Tata, chairman of the Tata group, would be furious. Since Tata Sons, the holding company for India’s second-biggest conglomerate, announced last week that it was seeking Mr Tata’s replacement, there has been a whirl of speculation about whom it will appoint.
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RITES: The torchbearer for India’s strategic interests
RITES is a key part of India’s ambitions to deepen relationships with countries in Africa, Latin America and South East Asia. RITES, which was set up in 1974 under Indian Railways, has amassed a wealth of knowledge on infrastructure development throughout the developing world. As China woos the same countries with massive aid and infrastructure investments, the 62-nation presence of RITES will give India a fighting chance to spread its own influence.
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India seeks an exalted global profile
A characteristic of India's ruling elite is its insatiable appetite for symbols of grandeur and obsession with exclusivity. Witness the jubilation over India joining the global Nuclear Club, New Delhi's smug satisfaction at being invited into the Group of 20, and its tireless effort to get a permanent Security Council seat. Such craving for status comes naturally to our upper crust which spends millions of rupees on exhibitionist weddings and local gymkhana or golf course membership. Status fetishism drives it to buy its children's admissions to super-expensive schools. Of a piece with this is New Delhi's decision is to create a new sign for the Rupee.
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Vietnam-Africa co-operation needs trust
Both Africa and Vietnam have their own strengths. Vietnamese and African goods are different, both sides find it easy to exchange with each other. The second Vietnam-Africa International Conference will open in Hanoi on August 17-19, providing opportunities for both sides to boost co-operation and make breakthroughs in the Vietnam-Africa trade relations.
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Group Five prepares to scale up its African presence
South African construction company Group Five will scale up its activities in the rest of Africa over short to medium term, where it has identified an opportunity pipeline worth R46-billion between now and 2016 within an overall project portfolio worth R119-billion, covering South Africa, the Middle East and the rest of Africa. Speaking following the release of the company's results on Tuesday, CEO Mike Upton said that there would be a particular focus on over-border and international prospects as it sought to replenish its order book.
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Murray & Roberts, Oger Bid to Build Airport in Saudi Arabia
Murray & Roberts Holdings Ltd. and Saudi Oger Ltd. have submitted a tender to design and build Jeddah’s airport, Murray’s Chief Executive Officer Brian Bruce said in the company’s magazine, Robust. “Apart from the recent nuclear bid, and, at a combined value of about 50 billion rand, this is the largest project we have tendered,” Bruce said. “We are also tendering for about 40 billion rand of work in Abu Dhabi.”
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Blogs, Opinions, Presentations and Publications

Banking in Nigeria and Chinese Economic Diplomacy in Africa
The objective of this study is to take a panoramic view of the changes going on in the Nigerian banking sector and to situate the discussion in terms of the broader Chinese economic interests in Nigeria. This paper argues that the current changes in the Nigerian banking sector are likely to set the sector on a path that can win it respectability and respect from across the world and that the inclusion of banking in China’s economic interests in Nigeria can be mutually beneficial to both countries. While China may have justifiable grounds to be unhappy with aspects of its relationship with Nigeria, the paper concludes that the future of the economic relationship between the two countries is bright and potentially beneficial to both nations.
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The Myth and Reality of Chinese Investors: A Case Study of Chinese Investment in Zambia's Copper Industry
In any attempt to analyse the implications of Chinese foreign direct investment (FDI) for African countries, Zambia is the example par excellence, its historical relationship with China and its ever-increasing economic ties with the emerging power being the main reasons for this. The activities of Chinese mining companies operating in the Zambian Copperbelt have roused much contention, particularly in the Western media, yet there is little understanding of the Chinese perspective on this issue. This paper aims to fill this gap.
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He Wenping: How Far Can China Go in Africa?
While the Western countries know Africa well, they do not stand with or speak for Africa. China stands with Africa on many issues, but regrettably, China still does not know Africa well enough says He Wenping, Director of African Studies of Institute of Western Asian and African Studies, Chinese Academy of Social Sciences.
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Can the “China Model” work in Africa?
You've probably heard about how China has managed, over the last twenty years or so, to lift hundreds of millions of people out of poverty. According to the World Bank, between 1981 and 2005, around 600m Chinese vaulted over the poverty line, that is, raised their incomes above $2 a day. These are the best and most-rapid poverty-beating numbers in history, and China's success has attracted a lot of attention in development circles and from the leaders of poverty-stricken countries around the world. There's been a lot of debate about exactly how China managed to achieve its impressive results, and whether or not the Chinese example offers a model for other nations trying to get people out of poverty.
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Why China won’t take over the world, Including Africa.
There are plenty of stories of a Chinese-sponsored infrastructure project or a Chinese company cutting a deal to feed its “insatiable thirst” for raw materials, while Western involvement of similar or greater magnitude is lucky to make a headline at all. Meanwhile, a close look at the key economic metrics and the subtler shades of power, such as cultural influence and humanitarian aid, reveals that while China is indeed one of the great powers in the world now (late last month it officially overtook Japan as the world’s second-largest economy), its influence is mixed, and often undercut by America’s.
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Economist Debates: China model: Statements
Susan Shirk , Director, Institute on Global Conflict and Cooperation, University of California and Stefan Halper , Senior Fellow, Politics and International Studies, University of Cambridge debate whether China has a better development model than the West.
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Lesotho meets China
The Economist explores the Chinese presence in Lesotho and finds that the presence of Chinese entrepreneurs in growing.
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Podcasts, Reviews and Interviews
China in Africa podcast: Why CN will not dominate FDI in Gabon
Eric Olander interviews Johanna Jansson, researcher, Swedish Institute of International Affairs, on the presence and activities of Chinese companies in Gabon.
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BROUGHT TO YOU BY PAMBAZUKA NEWS

* Compiled by Hayley Herman, programme officer based with the Emerging Powers in Africa programme.

* Please send comments to [email protected] or comment online at Pambazuka News.