Emerging Powers news roundup

General

Africa is new battleground for global investors
An unnoticed event happened a few days ago. CNN pioneered its Africa business programme Market Place Africa. Now, this is not CNN’s Inside Africa but a programme to showcase the continent’s business exploits and exclusively put the spotlight on commerce in Africa. On the face of it, this doesn’t make the ‘stop press’ grade, but it speaks volumes about Africa’s changing fortunes as a news item in the international media. Just 10 years ago, a business Africa programme would have been crowded out by the usual stories on Africa: famine, civil war, disease etc.
How times have changed. Read more

CHINA in AFRICA

Chinese firm given land deal in Sudan
The Chinese company ZTE received an allocation of approximately 10,000 hectares of land from the Ministry of Agriculture. The deal aims at boosting production of wheat and maize, state media reported. Read more

Sino-African strategic partnership benefits China-Cameroon ties
Deepening China-Africa strategic partnership will bring good prospects to relations between China and Cameroon, Chinese Ambassador to Cameroon Xue Jinwei told Xinhua in a recent interview ahead of top Chinese political advisor's visit to the country. Read more

Oshikango, near Angola, is example of boost in Chinese investment in Africa
The town of Oshikango, in Namibia, next to the border with Angola, is, due to its increasing importance as a Chinese-African trading hub in the region, the example of a trend to boost ties in a post-crisis scenario, according to banker George Lo. Read more

China-Nigeria trade ties continue to strengthen
The world's eighth-largest oil and gas exporter, Nigeria's socioeconomic development is being fueled by massive Chinese investment in key sectors such as energy, financial services, manufacturing, and technology. Read more

China initiates largest automobile project in Africa
A joint agreement was signed in Changchun on Mar 19 by FAW Group Import and Export Corporation (FAWIE) and China-Africa Development Fund (CADFund). Mr. Li Weidou, General Manager of FAWIE and Mr. Chi Jianxin, Chairman of the Board of CADFund signed their names on behalf of the both sides on the agreement, which involves the terms of investment of the vehicle production, construction of localized vehicle production base in Africa, and improvement of FAW's sales and sevice networks etc.. Mr. Xu Jianyi, President of FAW, attended and made a speech at the agreement signing ceremony. Read more

China's top political advisor has put forward a proposal aiming at fully advancing relations with Africa
The proposal, which was made on Tuesday and was part of Jia's key-note speech at National Assembly of Cameroon, covered political trust, economy collaboration, cultural exchanges and global issues.
"Under the new circumstances, China will work with Cameroon and other African countries to enhance the traditional friendship and grow the new type of China-Africa strategic partnership," Jia said. Read more

Rio May Help China Get Foreign Mines, Albanese Says
London-based Rio is working to repair relations with Chinalco
Rio Tinto Group, the world’s third- largest mining company, wants to help China secure overseas mines and explore for domestic deposits.
Rio could use the joint venture with Aluminum Corp. of China to develop the Simandou iron-ore deposit in Guinea, announced last week, as a model for other China outbound investments, Chief Executive Officer Tom Albanese said in speech notes for a presentation he gave today to the China Development Forum in Beijing. Read more

China Opening Bus Assembly Plant in Cameroon
China is opening a factory in Cameroon to manufacturer buses for West and Central Africa. The $500 million factory in Douala is expected to start producing buses by the end of the year.
Read More

China boosts African research links
Next week, representatives of dozens of African countries will gather in Beijing to firm up a broad programme of economic and scientific partnerships with China. It is the latest evidence that China's efforts to strengthen ties with Africa are increasingly focused on science and technology. Read More

INDIA in AFRICA

60 Indian firms express interest in Zambia for investing
Local media reported that about 60 Indian business organizations have expressed interest in investing in the energy, manufacturing, infrastructure development and tourism sectors in Zambia. The sixth Conclave on India Africa Project Partnership, organized by the Confederation of Indian Industries and the Export and Import Bank of India, recently has attracted several inquiries from Indian companies, on investment opportunities in Zambia. Read more

India's women's bill inspiring for Africa
India's experiment with gender equality in parliament through the women's reservation bill has struck a chord in Africa, says Ghana's Trade and Industry Minister Hannah Tetteh. Read more

Indian investors undertaking $4.6b project in Ethiopia
The newly assigned Indian ambassador to Ethiopia, Bhagwant Bishnio said Indian FDI to Ethiopia will reach five billion USD until the end of this year from 4.39 billion USD at present. The ambassador said various projects will be implemented to enhance the existing trade and investment relations. Read more

Bharti gets financing for Zain telecoms deal
Former MTN sweetheart Bharti Airtel has completed financing of $8.3 billion needed to buy the African assets of Kuwaiti telecom Zain, as the deadline for talks expires. Indian-owned Bharti is seeking an African business after two failed bids for MTN. Bharti says the financing is oversubscribed, with major international banks committed to underwriting the total amount. This means the deal is likely to be completed on the 25 March deadline. Bharti wants to acquire Zain's assets in 15 African countries for a total $9 billion, putting it in competition with MTN, Africa biggest cellular operator. Read more

Sanghi eyes Kenya for expansion
Gujarat-based Sanghi Industries, part of the Rs 4,500-crore Sanghi Group, has bought land in Kenya to build a cement plant, making it the first Indian company to do so in the east African country. Sanghi plans to build a 1.2-million-tonne cement plant, along with local partnership, in a bid to cater to a growing African market and to also serve neighbouring countries, said people connected with the development. Read more

India to offer quota free access for LDCs
India said it will soon offer duty-free and quota-free market access to the least developed countries during a World Trade Organization presentation last week. Read more

‘India has room to catch up in Africa’
On Monday, Stanchart announced Shankar’s appointment as the CEO of non-Asian business, which brings in close to 30% of its global revenues. The 51-year-old banker will also be inducted on the bank board on May 1 when he also takes over as the CEO of Middle East, Africa, the Americas and Europe. He is currently the head of the corporate and institutional bank based out of Singapore. Read more

India terrific example for Africa
Prime Minister Gilbert Fossoun Houngbo says Africa is increasingly looking at India as a knowledge power and believes Indian enterprises should scale up investment in the West African country. Read more

India Inc wants to be part of African tribe
Stephen Jennings, chief executive officer of the Renaissance Group, a leading investment bank in Russia/CIS and sub-Saharan Africa, sees explosive growth opportunities for Indian companies in Africa in sectors such as telecom and financial services. Read more

CIL to explore coal in Mozambique
Coal India Limited (CIL) has appointed geologists to explore possibilities of coal excavation in Mozambique, said a top official on Wednesday. Read more

BPCL unit finds additional gas in Mozambique
Bharat PetroResources (BPRL), a wholly-owned subsidiary of Bharat Petroleum Corporation (BPCL), said additional gas has been found in the exploration well, Windjammer (Mozambique). Read more

Visit of Foreign Minister of Congo to India
Minister of Foreign Affairs and Cooperation of the Republic of Congo, accompanied by Mrs. Ikouebe and Senior Officials, paid an official visit to India from 13th to 18th March 2010. Read more

Indian firm wins textbook contest in Ethiopia
Ethiopia's minister of education has awarded Indian media house to print and distribute textbooks. Read more

GAIL ready to join RCF for Ghana foray
State-run utility GAIL is eyeing a big pie of Ghana's gas infrastructure
and retailing market and is willing to team up with fertiliser-maker RCF, which proposes to set up a plant there, as an alternate route to gain access to the African country. Read more

India can teach Africa about entrepreneurship
Africa needs to learn ways to foster entrepreneurship from India the visiting head of an African think-tank, K.Y. Amoako, president of Ghana-based African Centre for Economic Transformation, told a group of Indian businessmen at an interaction organized by the Federation of Indian Chambers of Commerce and Industry. Read more

ONGC once again loses out to China for oil assets in Africa
In the absence of a domestic sovereign wealth fund backing, public sector oil explorer Oil and Natural Gas Corporation (ONGC), has once again lost the race to acquire energy assets to China's large state owned enterprise, the latest in a string of losses to its cash rich neighbour. ONGC Videsh, the overseas arm of ONGC has been outbid by CNOOC, China's third-largest oil company in acquiring a 50-per cent interest in Uganda's oil fields. Read More

In other Emerging News

The dragon and the elephant in a contest for oil
The elephant appears to be trailing the dragon through the jungles of the oil world. The state-owned Indian Oil Corporation is in talks to acquire Gulfsands Petroleum, a UK company active in Syria. It was only last August that Sinochem, China’s fourth-largest oil company, bought Emerald Energy, Gulfsands’s partner in Syria. Is this a battle India can win? Is it a battle India should even be fighting? Read more

Cameroon and Turkey to diversify cooperation
The Turkish President, Abdullah Gül, has visited Cameroon to strengthen cooperation ties between the two countries. The visit also saw the signing of two significant agreements which were all marked the beginning of a new era of mutual cooperation between the two countries. Read more

Shoprite buy may push Future-Carrefour deal
The buyout of South Africa's Shoprite Holdings single retail store in Mumbai by the Future group on Saturday, could well pave the way for stronger ties with French retail giant Carrefour, with whom the Future group has been in talks with for a while. Though ‘‘the government's strict limits on foreign investments in the retail sector is playing spoilsport and has delayed many mergers, talks with the retail major have moved to the last mile,'' said an official, familiar with the deal. Read more

BRICs downplay currency issue, look to boost trade
The world's four biggest emerging economic powers are unlikely to push for a new global reserve currency but will seek to boost mutual trade and investment at a summit next month, a senior Brazilian diplomat said in an interview. The leaders of Brazil, Russia, India and China will meet in Brasilia on April 15-16 for the second time since they created the group of emerging market powers known as the BRICs. Read More

South Africa eyes Uganda’s oilfields
President Jacob Zuma said during a two day state visit that Uganda’s recent discoveries of commercial oil reserves present new investment opportunities for South African companies already playing a key role in the country’s telecom, banking and beverages sector. Read More

EVENTS

ASSOCHAM to organize conference on India-Africa agri partnership
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is organizing a day long consultative conference, cum seminar cum workshop on India-Africa agri partnership in the State of Punjab on March 27. Attending the event will be following African delegates: The Agriculture Minister, Uganda, Ambassador of Zimbabwe and Dean of African Diplomatic Corps- Jonathan Wutawunashe Ambassador of Republic of Sudan to India - Khidir Harun Abdulrazig, Ambassador of the Federal Democratic Republic of Ethiopia- Ms. Gennet Zewide, High Commissioner of Ghana Read more

The India-Brazil-South Africa (IBSA) Summit will be held in Brasilia, Brazil on the 15th of April
The International Policy Centre for Inclusive Growth (IPC-IG) is pleased to announce that it will be hosting the 4th Academic Forum (12th & 13th of April 2010) in Brasilia. The Academic forum is a supplementary environment to the Summit of the Heads of State, widening the discussion by giving voice to specialists, policy advisors, researchers and empowering civil society agents. The outputs of the Forum will be formally reported at the Summit of Heads of State. Read More

New Reports and Papers

‘China’s foray into Africa: Ideational underpinnings and geoeconomic interests’
African Journal of Political Science and International Relations, Vol. 4(3), pp.096–108, March 2010. Read More

Exim India's Study highlights India's trade and investment Potential in the SADC Region
Export-Import Bank of India (Exim India)'s study on 'SADC: A Study of India's Trade and Investment Potential" was released n March 15, 2010, at the "6th CII-EXIM BANK Conclave on India Africa Project Partnership 2010". The study draws attention to the fact that India's trade and investment relations with the SADC region have strengthened in recent years, and presents opportunities to further enhance bilateral commercial relations. During 2008-09, the SADC region accounted for 39.3 percent of India's total exports to Africa, while the region's share in India's total imports from Africa stood at 32.5 percent. India's total trade with the SADC region has risen more than three-fold from US$ 4.4 billion in 2004-05 to US$ 13.6 billion in 2008-09. Read More

African Perspectives on China-Africa: Gauging Popular Perceptions and their political determinants
This article fills a void by examining indeed not only African attitudes towards China’s African presence, but deciphering the very considerations informing these views. Employing multi-level modeling techniques, we estimate the effects of Chinese foreign direct investment (FDI) inflows, Sino-African trade, and African notions of democracy and human rights on African attitudes regarding ‘China-in-Africa.’ Our results suggest that the negative rhetoric emanating from much of the surrounding literature tells only part of the story, as African perceptions of China are found to be near equivalent to those held vis-à-vis Western countries. The results contained in this study further illustrate the adverse effects of increasing Chinese imports on African attitudes, and the negligible impact of FDI in this regard. In keeping with mainstream literature, this article further finds that Africans who attach particular value to human rights and democracy are overall largely critical of the burgeoning Chinese presence across the continent. These results are predicated upon a data-set containing twenty African states supplied by Afrobarometer Round 4. Read more

BROUGHT TO YOU BY PAMBAZUKA NEWS

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