• Tags cloud

  • Calendar

    mai 2012
    L Ma Me J V S D
    « mar    
     123456
    78910111213
    14151617181920
    21222324252627
    28293031  
    •  

    « Older Entries
    Newer Entries »


    The World Economic Forum Meet And the China Connection

    Mercredi, juin 17th, 2009

    The World Economic Forum on Africa opened earlier this week, and deep concerns about Africa’s growth and development came to the fore. African nations needed to present a unified front for the developed markets to deal with, instead of the existing market barriers. Africa has been adversely affected by the protectionist stand taken by rich countries, even though it has had rich, mineral resources, a young enthusiastic population and the urge to surge ahead. But its indebtedness was a major impediment to its progress. These were some of the facts highlighted by South African President Jacob Zuma at the opening of the World Economic Forum on Africa being held at Cape Town.

    The WEF has numerous issues on its agenda and one of the topics of discussion is the trade relationship with China, which crossed the $106 billion mark last year. While many perceive China’s helping hand as one of grabbing and exploiting Africa’s mineral wealth to secure its own resource channels, there is no denying the development that has taken place in Africa due to China’s funding and expertise. China’s involvement in the financial sector in Africa will also be discussed, and one of the key dignitaries is the President of the Industrial and Commercial Bank of China, Jiang Jianqing.

    Other issues to be discussed at the Forum will include agriculture, foreign investment in Africa, and Zimbabwe’s economic recovery. The impact of the worldwide financial crisis on African economies is also being pondered over. It has led to a slower rate of growth in Africa despite all efforts by china to pitch in where the western countries had backed off.

    Africa sees in China, a supporter to turn to for aid, advice and assistance, not to mention technical expertise for all its developmental projects. China in turn, has reiterated its commitment time and again to Africa’s growth and development. If nothing else, there is a complete give-and-take relationship between the two sides. The further progress of China is dependent on Africa’s supply of minerals and oil and the development of Africa is linked to China’s funding and investment more than any other country.

    Source : China Africa

    Tags: , , ,
    Posted in Non classé | No Comments »



    Africa Now Requests Investment in Manufacturing from China

    Jeudi, juin 11th, 2009

    The Chinese interest in Africa has started a pace of development in the continent not seen for decades. Its support has seen Africa wade through the recession as well, and it has been extremely considerate towards all African countries where debt repayment is concerned. But now Africa has bigger dreams than mere sustenance. It wants to move to higher level in the value chain so that its own work force gets an opportunity to earn higher salaries, thereby increasing aggregate incomes.

    Chinese investment thus far has been in the services industry and more in connection with mining and tapping the rich natural resources of Africa. Africa would now like to see a manufacturing base come up within its own geographical boundaries. This would curtail the flow of wealth abroad. The manufacturing sector can also only be set up with inflow of funds from China.

    The request for Chinese investment in the manufacturing sector came from the Secretary general of COMESA (Common Market for Eastern and Southern Africa), Sindiso Ngwenya on the eve of the 13th COMESA Summit meeting in Victoria Falls, a resort city in Zimbabwe. He feels that the benefit would be shared by china as well. Ever since the onset of the global recession, many Chinese plants had been forced to shut down. If these could be set up in Africa, the African channels to European destinations could be tapped.

    The potential for manufacturing needs no highlighting since Africa offers a ready market with 400 million people. China has already been selling its manufactured goods in these markets. However, if these were to be produced in Africa, it would add value for the locals and subsequently the government as well. The Secretary-General was extremely grateful for all the aid and investment that has already flown into Africa from China in infrastructure, education, and raw mineral tapping.

    The COMESA has launched the Customs Union in order to ease the process of increasing volumes of trade and investment. The plan is to synchronise activities of various African nations so that the steps ahead are cohesive and coordinated. While regionalism is coming up everywhere, regional integration makes a lot of sense for Africa since that is the only way to forge ahead.

    Source : Suppliers Africa

    Tags: , , ,
    Posted in Non classé | No Comments »



    Africa Gains While China Spends

    Mardi, juin 9th, 2009

    China and Africa continue their courtship and the skeptical world looks on. China has been assisting struggling African economies with no preconditions and no strings tied, and it certainly does not expect African leaders to come begging for funds. This is a marked change from western attitudes that have for long espoused the democratic cause and human rights issues.  But Africa may not be amenable to the western code of conduct and system of governance.

    What may appeal to Africa is the business system followed by China, which has made an entrance on the African horizon with new ideas, new ways of doing business and bags full of aid. The relationship has deepened with exchanges in education and culture. What the African masses see is that the Chinese have give them good roads, railways, international standard stadia for games, hospitals, schools and universities. In short, a respite from their bleak existence and promise of a better future.

    Western criticism is mainly focused on the lack of transparency and accountability in China’s dealings, and they fear that the Chinese attitude may help the leadership and harm the masses. But the fact remains that it is the masses that are benefiting from all the Chinese money flowing into the countries, thus far deprived of funds for development.

    China has reiterated that it is going to double its financial assistance by 2009, provide loans at concessional terms to the tune of $5 billion, enhance the funding of the China-Africa Fund, and is also canceling the entire interest free debt owed by some 33 African countries. Out of the poorest African nations, Uganda has already benefited by investments equaling $141 million, while getting its 17.5 million dollar debt cancelled. The democratic Republic of Congo is getting $5 billion to reconstruct its railway network, build roads and highways, hospitals and schools, and buying all that Congo has to offer, like agro-products, timber and minerals like cobalt and copper. It is the largest investor in Sudan and buys oil worth millions of dollars from Angola

    China offers many lessons to Africans to learn from. The secret behind its success has been its investment in its people’s education. Africa has not yet realized the need for adopting the education route to empower its people

    Source : Chinafrica

    Tags: , , , , ,
    Posted in Non classé | No Comments »



    The China-Africa Interdependence In Times of Recession

    Jeudi, mai 14th, 2009

    The worldwide recession has struck the world’s supposedly strongest economies. While it cannot be said that China remains unaffected by the recession, it is still much better off than most countries. Out of the developing world Africa has also been hit but it has benefited immensely from the protectionism extended to the continent by China. The growth levels being witnessed by Africa are distinctly underpinned by Chinese demand, and China’s levels of growth will depend even more on African resources. The recession is seeing increased Chinese investment in African nations, as it is using its foreign exchange surplus to scout around for cheap investments. Chinese financial institutions are financing business ventures initiated by companies that are investing abroad for the first time.

    The long association between China and Africa has not been a bed of roses for investors. Many Chinese investments have ended in big losses and many ventures have failed, and it is evident that many more will follow suit. But China has been quick to learn and has dramatically changed its investment strategies, according to the changing political and economic environment in African countries. Its ‘new’ Africa policy and the Forum of China-Africa Cooperation (FOCAC) are all efforts to establish mutually beneficial relations. China has now turned to bilateral trade as the route to development for African industry rather than aid-funded development. This will help the local African nations put in more serious efforts to develop local talent that will benefit the African community in more ways than one.

    China has become a major player in developing infrastructure facilities in many African countries with work being contracted to Chinese companies.

    It is interesting to observe that while Western banks and financial institutions are withdrawing credit to Africa, China is increasing its loan exposure through its banks. Chinese banks are providing credit on terms that are conducive to development in growing economies. A case in point is the establishment of the China-Africa Development Fund. Mauritius, Zambia, Nigeria and Egypt are now four ‘official’ zones for China, which are hubs of manufacturing by Chinese companies. Another eight African countries are in the same league from the Chinese point of view.

    Chinese can be the perfect role model for Africa as the Asian nation has weathered many storms and passed difficult periods to achieve its present level of success. It has developed business models that Africa would do well to adopt.

    Source : China Africa

    Tags: , , ,
    Posted in Non classé | No Comments »



    China Africa world

    Vendredi, mai 8th, 2009

    China’s interest and consistent support to African countries has raised eyebrows and invited criticism by other developed nations that have sought to find a deeper motive behind it. Previously, Africa received small dole outs from the western nations but each came with its baggage of strings attached to it. China has always perceived Africa in a different light, more as a trade partner, which gave some and got some. Hence, all its aid and economic assistance programs have been granted with no strings attached. This only goes to prove that China and Africa are equals in partnership, allies in development and friends for mutual support. These very sentiments were voiced by Liu Guijin, China’s Special Envoy on African Affairs, who insisted that China has never harbored any intentions of dominating Africa, instead has always perceived Africa to be a flourishing continent in synchronization with Chinese policies.

    China has invested over $106 billion in various African countries, and gained access to some of the best African natural resources. Close to 1 million Chinese nationals are based in Africa doing business, consultancy and providing technical expertise. These span agriculture, industry, infrastructure, tourism, education and culture. Over 30% 0f China’s oil imports come from the African countries of Sudan, Nigeria, Congo and Angola. China has invested in 27 oil projects in these and other countries.

    Liu Guijin has categorically stated that China did not want to dominate or control Africa in any way. It merely perceived Africa as one of the fastest growing economies in the world that would benefit immensely with some assistance. China has struggled to develop and grow and has many lessons to teach to poorer nations to help them fight poverty and other developmental issues. Africa being rich in minerals and materials also has a vast population, and therefore, it is a large market for Chinese goods. Being far sighted, China has been trying to ensure future supply of raw materials that it would need to continue its industrial ventures.

    Hence it would be inappropriate to perceive the Africa-China relationship as anything but one of mutual gain and equality.

    Source : Manufacturers Africa

    Tags: , , ,
    Posted in Non classé | No Comments »



    China Africa agriculture

    Mardi, mai 5th, 2009

    The poverty stricken African continent is a land of plenty where natural resources are concerned. Its abundance of metals and minerals have been eyed by developed countries that need consistent supplies to continue their pace of economic activity. In return Africa has benefited with aid, loans and funding of infrastructure projects and industrial ventures that provide employment to locals and also help them acquire technical skills.

    The newest target of many nations is the abundance of agricultural land Africa has to offer. It is literally emerging as a race for securing food supply for the future to meet the growing need of food, by countries that are running out of arable land. These include Saudi Arabia, China, Emirates and South Korea. Such a proposition serves the dual purpose of securing a steady flow of foodstuff and also cashing in on an opportunity to save in the midst of escalating food prices in the midst of the global economic turmoil. All this makes land seem to be a safe investment in the long run.

    China has already acquired vast amounts of arable land overseas including countries like Zimbabwe and Algeria. Estimates made by researchers reveal that over 1 million ethnic Chinese farmers will be working and living in Africa by the end of the current year. Kenya and Tanzania have leased out land while Uganda has sold its land, but not to China. This is being termed as a neo-colonial land grab due to the size of the land being leased. China has also invested millions in improving the system of agriculture in Mozambique, and this will see rice production increase from 100,000 to 500,000 tons per annum. The Asian tiger has invested in an Advanced Crop Research Institute and agricultural schools, and at least 100 Chinese agricultural specialists are working in Africa to improve agricultural conditions. Work also involves development of canals and other methods of irrigation.

    Africa has much to learn from China in the field of agriculture, as it was agricultural advancement and improvement that led to the reduction of poverty in China.

    Source : Suppliers Africa

    Tags: , , ,
    Posted in Non classé | No Comments »



    China Africa investment

    Lundi, mai 4th, 2009

    Over the years, while western countries were flourishing and spending freely, one country was quietly building up its reserves with its exports to the west, cautiously spending where necessary and saving whenever possible. This was China, one of the least affected countries in the global economic downturn, and the dragon has lifted its head to look around and find worthwhile investments all over the world to use up its $2 trillion of reserves, partially if not fully. The timing could not have been better as the worldwide credit crunch has brought down prices and great bargains are available to one who can make cash down payments. The head of China Investment Corporation, Lou Jiwei, is back in Europe with $200 billion wealth fund to buy assets, some of which were refused to his fund in 2008. This proved to be a blessing for his fund as it helped to avert losses for the Chinese.

    Chinese oil companies are competing with their western competitors to gain rights to drill in new reserves of oil. A Chinese state owned oil company is trying to buy assets worth $5 billion in Libya and Sudan after the merger of Suncor Energy Inc with Petro Canada did not come through. The company in question is China National Petroleum Corp. one of the two top Chinese oil firms. The Chinese company, Sinopec has expressed its interest in acquiring large businesses in Africa along with South America. Similarly China’s state-owned company and subsidiary of china Minmetals Corp., Minmetals Development Co.

    Ltd., is buying chrome assets in mines in South Africa, and is willing to spend up to $81 million on it. China has invested in getting land rights for agricultural purposes in sub-Saharan Africa as well. Its investments span over diverse fields and China is making its presence felt in all upcoming fields where growth potential is very high. China Mobile, the country’s largest telecom operator has been hunting for a partner to buy assets valued at $2 billion from its South Africa-based peer MTN. This is part of its overseas expansion exercise, which includes other countries as well.

    Source : Suppliers Africa

    Tags: , , , , , , ,
    Posted in Non classé | No Comments »



    China’s Assistance to African Countries During the Recession

    Vendredi, mai 1st, 2009

    The Zambian Minister of Finance, Situmbeko Musokotwane, has lauded China for all the help it has provided to African economies during the current turbulent time of an economic downturn. The present crisis is comparable to the great Depression of the 1930s, and the African economies have been struggling to cope with the Europe and American withdrawal from their markets. AT such a time it is China that has come forward with assurances that there would be no layoffs, no factory or project closures, and additionally, China has been willing to provide loans at low interest rates.

    Musokotwane was talking to reporters in Washington, during his visit to attend the annual spring session of the International Monetary Fund and the World Bank, two days ago. The Chinese mining company operating in Zambia has tried to save jobs of Zambians, and the country has also received low-interest loans from China. The mining industry has been very badly affected by the world financial crisis, which has jeopardized their financial stability, and shook the entire Zambian economy, which is so dependent on this industry. Mining has been the chief industry of Zambia since the 1930s and other metal and non-metal resources have been tapped fairly recently. Its main exports include copper and cobalt.

    The relationship between China and Zambia strengthened after China constructed the 1860-km railway line between Zambia and Tanzania during the 1970s, as this helped the landlocked Zambia enhance its trading volumes and gain better access to world markets.

    Next, China helped Zambia in improving its system of agriculture and set up a good telecommunication network. China has the distinction of being the world’s largest user of copper, and therefore, has a huge demand for Zambian copper as it is needed for everything from electrical wires, to the manufacture of cars and computers. Zambia’s copper wealth is being mined by Chinese companies, and as yet, Zambia has not been able to start using its copper for producing finished goods.

    The minister feels that Africa is a hapless victim of the recession and finds itself drained of its resources. Had it not been for the helping hand extended by China, the African people would have been worse off.

    Source : Suppliers Africa

    Tags: , , , ,
    Posted in Non classé | No Comments »



    Huwaei Technologies Leads the Way For Chinese Firms into Africa

    Jeudi, avril 30th, 2009

    Huwaei Technologies has become a well known worldwide as a non-state owned Chinese multinational, which is one of the biggest producers of telecommunications equipment internationally. It has made inroads into every market in the world with its fixed networks, mobile networks, optical networks, software, terminals and data communications.

    In Africa Huwaei Technologies started out in 1998 with its first operational setup in Kenya, and has now become the largest CDMA provider in the entire region. Its sales crossed the $ 2 billion mark three years ago in 40 African countries. The company has successfully got rid of the preconceived notions people have had about ‘made in China’ goods that they are low in cost and poor in quality. Huwaei has proved that it is positively low in cost but provides excellent quality and value for money. It has also earned the reputation of providing excellent customer service. The Chinese attitude towards work ethics and building relationships, which reflected in the company’s working, helped build the large empire in Africa. For Huwaei Technologies, Africa was not just a vast market; it was also a training ground that was going to help it build its global brand.

    For Africa the company has helped set up a communications infrastructure that has transformed the lives of the African people by easing their communication issues and has provided jobs to 400 people in Kenya and 3000 in the whole Sub Saharan Africa region. Huwaei has its headquarters in Kenya to service neighboring countries like Uganda, Tanzania, Congo and Ethiopia among others.

    The growth graph of Huwaei Technologies and the strategies adopted by the company to establish their network in African nations is a role model for other Chinese companies. It has worked hard to dispel old misconceptions and prove its credibility and commitment to African development. Its superior customer service network has been a big factor in its success. That is one of the reasons that the company’s performance has not been affected by the recession. Other Chinese companies need to study their strategies if they wish to do well in the African continent.

    Source : Manufacturers Africa

    Tags: , , , , , , ,
    Posted in Non classé | No Comments »



    Strategic Moves in Africa Signal China’s Long Term Plans

    Mardi, avril 28th, 2009

    China has been comparatively less affected by the global economic crisis, and it has been using this time to formulate long-term strategies and put systems in place to achieve its goals. It has been buying manufacturing units in African countries, consolidating its hold on supply of raw materials, taking fertile agricultural land on long lease, contributing $40 billion to the IMF, and trying to assert its position in global economic forums.

    China has done all this and has gone a step further to use this time to rethink its old commitments and withdraw where it feels it may have erred or pushed ahead too fast, and also take corrective action where fingers are being pointed towards its participation. In its initial attempts to assist African nations, it had provided unconditional economic aid and support to many countries so that they could develop their infrastructure facilities so that their citizens could enjoy a better quality of life. At that point in time the Chinese had a single-minded commitment to growth at any cost. But times have changed and many African nations have not been able to show results of the kind China wanted to see. They remain politically risky and human rights abuse continues unabated. Hence, the rethink on the part of China to withdraw, and pursue investments in places where growth can be sustained and that too, without global criticism.

    Congo and Guinea are two African countries that have seen plenty of Chinese funds flowing in for investment, as china saw enormous potential. Today also, the countries remain as unsafe and risky as ever before. Therefore, China has decided to scale back its operations in these two African nations, and keep in mind the risk percentage before making further commitments. This would in no way affect the total amount of investment China has put aside for Africa, it may only imply that China would look for other places to assign funds that were meant for these countries. Perhaps China would now prefer in invest in nations that are stable, law-abiding, and democratic in terms of leadership, to ensure the best prospects for its fifty years of investing in Africa.

    Source : Suppliers Africa

    Tags: , , , ,
    Posted in Non classé | No Comments »

    « Older Entries
    Newer Entries »



     
    Privacy Policy and Terms & Conditions
    ENGINEERING | AGRICULTURAL | INDUSTRIAL| HI-TECH PRODUCTS | CONTACTS| BLOG US| BLOG FR
    Footer ImageCopyright 2009, Chinafrica.asia. All rights reserved.