China Shows Substantial Interest In African Agriculture

Vendredi, octobre 9th, 2009

China’s involvement with African infrastructure and industrial development has been written about and discussed in every corner of the world, and there is no denying the fact that China’s advancement can be credited, to a large extent, to its oil sourcing from Angola, Nigeria and Sudan, and its minerals from Zambia, Liberia and South Africa. Whether this should be perceived as a resource grab, as many in the western world do, or be accepted as a compassionate overture, as China reiterates, is a matter of discussion. The latest in the series of its interests in Africa is agriculture, which again, is a topic of debate whether it is self-serving or concern based. Africa has the resources and potential to become one of the world’s prominent food grain suppliers. Yet it remains one of the largest recipients of food aid from global organizations. China with its increasing population of billons to feed plans to grow food in Africa using its own technology, labor and resources on African land and then ship back the entire produce. Would this agricultural development of Africa be treated as Africa’s progress for Africa’s benefit or for China’s benefit, remains to be seen. Its involvement on agriculture in Mozambique will serve as a prelude to things in store for other countries promising land for agricultural development to China. The Asian tiger promised $800 million for the modernization of agriculture in Mozambique, including the construction of dams and canals to divert water towards the highly arable land. Research by Chinese scientists continues in various institutes set up, again by the Chinese. The Africans are happy with the potential benefits of this rather than present ones. Reports by two UN policy centers reveal that only a few of these land leases are rent or fee based, the others are given in return of the hope for growth, development and employment. The development is taking place with Chinese contractors getting jobs to do and make profits in the process, while the local Africans end up losing subsistence farmland. China is certainly not growing food for the Africans, as is evident from the amount of rice that is being planted in the fields everywhere, since rice is not part of the African staple diet.

The Chinese perspective deserves a mention as well. There is no denying the fact that millions have been invested in “problematic” zones with no infrastructure or easy operations with no obstructions at every step. The same investment elsewhere would have borne fruit sooner and would have been hassle free as well. That it cares about Africa’s growth has triggered its interest and is making efforts to set up agricultural cooperatives, which does include local participation. Its rice growing interest may one day yield income from exports of rice to countries with huge demands of the grain. The world is too advanced to allow colonial kind of exploitation or one-sided benefits. China is positively giving some to get some and the same holds true for Africa.

Source : Business Africa



China’s Largest African Trading Partner-Angola

Lundi, octobre 5th, 2009

Angola emerged as China’s largest trading partner in Africa in 2008 with bilateral trade amounting to $25.3 billion during the financial year. This was stated by the Chinese ambassador to Angola, Zhang Bolun in Luanda two days ago.

Both countries are under pressure due to the global financial crisis, but despite all odds, trade between the two nations has been consistently increasing, he said. More private investors would be coming in to Angola in the coming year. These would include contractors interested in agricultural opportunities open in Angola, the food industry, timber processing and also information technology. China had earlier promised to send agro-technicians for agricultural revival in Angola where agricultural production had been stagnant through the years of armed conflicts in the country. Timber processing would be beneficial as well since Angola has rich forests with good quality timber procurable for furniture and other woodwork.

Oil forms the largest chunk of the Chinese imports from Angola, amounting to 16% of the total. It also happens to be the African country giving the maximum amount of oil to China to meet its ever-increasing needs. Angola is Africa’s largest oil producer, though the last month saw its oil production dip as compared to the previous month.

Angola accounts for 24% of the total China-Africa trade, and with more investors coming in from China, it is likely to increase further. China, in turn, is helping Angola in infrastructure development by building roads and railways, hospitals and schools, free markets and housing. All these are aimed at improving the living standards of the local people and hasten the process of the country’s reconstruction. Cooperation in other sectors is also on the anvil.

Source : Business China



African Fields For China’s Food Requirements

Lundi, juillet 27th, 2009

Africa is a large continent with thousands of acres of land lying free despite being highly fertile. China is a powerful country with sound economic assets and a huge population that needs to be fed, even though its arable land is not just limited but rapidly decreasing due to the rush for urban life. The question is how would China expect to find food for its millions when it cannot grow more than what it sows at present. And Africa is looking for opportunities to make money from whatever natural resources it has even in the form of arable land. In recent years this trend has been noticed in ther countries as well, and the richer ones out of these have been trying to use their financial muscle to take land from poorer countries on long lease. Africa fits the bill perfectly among the land rich countries, and it would give preference to China without doubt for providing land for cultivation. Africa remains obliged to the core to China for its aid, its developmental assistance, waiving off debts and taking up developmental projects in most African countries.

During the last five years, only 5 sub-Saharan countries have seen 6.2 million acres of farmland bought or leased by foreign countries at an expense of $920 million. The United Nations’ Food and Agriculture Organization (FAO) in a report feels that this is only the beginning. The concern is for the smaller farmers who get displaced in favor of large farming operations that are commercialized and mechanized. China has been sending its own farmers to various African countries to implement Chinese farming policies and make a success of the agricultural business. China has also emerged from a low level of earning among its rural population by evolving methods and techniques of enhancing output from existing resources of land. Its rice cultivation is a case in point since it has developed hybrid varieties of rice that multiplied rice output manifold in China. This might just be the answer to Africa’s hungry millions who are not able to get two square meals a day.

Source : Chinafrica



China Is One of Many Countries Acquiring Land For Agriculture

Mercredi, juillet 22nd, 2009

For centuries, agricultural output has been exported by countries with surplus produce and imported by countries that could not grow adequate amounts of food grain and other naturally grown foods. The current trend is an alternative to import of food grain. This is accomplished by taking foreign farmlands on long lease to grow food grains needed in one’s country. Many countries with limited supply of cultivable land but ever increasing populations have found thousands of acres of unutilized fertile land in African countries. These countries include Saudi Arabia and China to name only two. The outcome is a positive impact on both the countries, where the agricultural activity is initiated and also where the agricultural produce is consumed. The poor nations need the capital the lease of land will get even though they may have starving millions in their own countries. This easily procured capital would help make crucial investments in developmental projects. The leasing countries justify their entry into agriculture in foreign lands by stating that they bring in new hybrid varieties of seeds, newest agricultural techniques that have been successful in their own countries, and employment to the local labor force as well. A section of foreign experts perceive this to be a policy of ‘land grab’.

China has been seriously pursuing agricultural activities in Africa. It has been revealed that China will be sending 1 million farm workers to Africa in the course of the year. China will be starting the world’s largest palm oil plantation in Congo. Covering an area of 2.8 million hectares, the palm oil plantation would be used for bio-fuels. Next in line for China is Zambia where it is in the process of finalizing a deal to grow bio-fuels on 2 million hectares of land. Besides growing crops for its own country, China is helping African agriculture to develop for its own progress. It is teaching newest techniques of farming, shifting from subsistence agriculture to growing cash crops that will ensure greater financial returns, and also providing education in the field by setting up Agricultural institutes in reputed universities.

Agriculture is the third in the row of economic activities that have scaled borders to make the world a unified market place. It started with the exchange and outsourcing of technological innovations, followed by outsourcing of information technology skills. Agriculture is being pursued abroad by both private and government-owned companies.

Source : Chinafrica



China’s Assistance to Uganda

Jeudi, juillet 2nd, 2009

Uganda is yet another African country where the Chinese presence is felt in every aspect of daily life. The most significant of all others is the Nelson Mandela Stadium built by the Chinese in Namboole, with funds from their own country. Other conspicuous things include the Chinese merchandise that has flooded Ugandan markets in cities, towns and villages. Chinese traders are seen everywhere and at least 5000 Chinese people are registered as residents. According to the Chinese ambassador to Uganda, this is in synchronization with the Chinese commitment to transform Uganda.

Uganda has been one of the African countries that has benefited from the debt write-off initiated by China during times of the global economic recession. The debt amounted to $17.5 million. In the past twelve months China has given financial assistance to Uganda to the tune of $141 million. This is besides its investment assistance for sanitation purposes for the city council of Kampala, and the e-government project initiated by the African country. It has helped Uganda overcome its health issues through health experts sent to the country along with drugs for curing diseases like malaria that is rampant. China has started scholarships for Ugandan students to study in china and has taken up education programs in the country as well.

Another field to benefit from Chinese interest is agriculture. China has evolved the best technique of growing rice to yield bumper crops, and has passed on this technique to Uganda as well. The first rice-farming project has been in Kibimba in eastern Uganda spread over 1721 acres of land.

China is interested in the oil deposits recently discovered in Uganda. As of now Uganda exports leather goods to China, along with timber, agricultural products, cotton, copper and fish. The total trade between the two countries amounted to $247 million in the year 2008. However, this includes Chinese exports amounting to $230 million, and Uganda has the remaining share of $17 million. The present division is extremely lopsided, and this is not perceived as advantageous to Uganda. Chinese goods have also replaced the domestic products since they are so much cheaper. The present inflow of investment from China will help in promoting development in various fields including industry, which will eventually help in increasing Ugandan exports not just to China but to other countries as well.

Source : China Africa



Africa’s Potential To Feed The World

Mardi, juin 30th, 2009

African countries are increasingly in the news, and are gradually gaining recognition for the pace of development likely to take place there in the years to come. Delegations gather to discuss the future prospects of Africa time and again. African leaders participating in these meetings highlight the potential of their respective countries. A similar stance was evident in the recently held World Economic Forum on Africa.

African leaders feel that Africa has the capability of feeding not just its own millions but also the people of the whole world. While at present there are bad roads, unorganized markets, lack of appropriate measures, inadequate investment and cash inflow, but as things improve, the African countries will be able to produce enough to have adequate amounts of foodstuff to export to other countries which cannot expand their agricultural capacity primarily due to the shortage of arable land.

This stand taken by the leaders is a marked contrast to the ground reality witnessed by the world even as 300 million Africans sleep without food each night. The leaders support their claims by stating that Africa has the potential for reaping rich harvests with the minimal amount of investment, technical advice and increased rural incomes subsequently.

Africa consists primarily of small farmers and rural poverty can be alleviated only if they are empowered to change their techniques of agriculture. According to a World Bank Report, China has been found to have effectively reduced its poverty levels by fostering agricultural growth. The report states that agricultural growth was 3.5 times more effective in poverty alleviation as compared to growth in other sectors of the economy. The Chinese model would work to Africa’s benefit since it also has a vast agricultural population, which is seeped in poverty and no respite seems to be coming their way. The only solution may be replicating china’s agricultural model that will not just enhance production of foodstuff to feed its millions while leaving surpluses for exports, but also eventually find a way out of the vicious circle of poverty that all of Africa is caught up in.

Source : Agricultural machineries



The World Economic Forum in Africa

Mercredi, juin 10th, 2009

The coming week is likely to see an important economic event for Africa. The World Economic Forum on Africa is being held in Cape Town this week. Besides 5 African leaders, China‘s representative Jiang Jianqing, Chairman of the Industrial and Commercial Bank of China, there will be 800 participants from 50 countries. Africa is increasingly the focus of the world’s attention for all kinds of reasons from human rights to economic development and the prospect of the continent becoming the granary of the world. Its developmental issues, poverty alleviation and ability to cope with the global economic crisis are issues being talked about world wide. Africa is getting support from many countries but the active participation of the west has been replaced by phenomenal support from China.

The Forum is going to discuss a lot of issues of interest to China with reference to Africa. China, which had till now been associated with resources, would now be talked about in connection with finance. The Chinese representative is heading the ICBC, which had bought a 20% stake in South Africa’s largest Standard Bank. Jiang Jianqing will not just co-chair the Forum in South Africa; he will also be visiting three other African countries namely Nigeria, Botswana and Uganda. He along with his counterpart in Standard Bank is on the lookout for lucrative investment opportunities. ICBC has the distinction of being the world’s largest bank in terms of market value. With surplus funds and the active involvement of Standard Bank in Africa, ICBC is looking for major investments in developmental projects and other sectors.

The topics of discussion are in the economic field like the impact of the present global macro-economic trends on the diverse economies of the African continent. Agriculture and the prospect of Africa emerging as the world’s leading food producer would be another area of serious debate. The global economic crisis will again crop up since it is a matter of immediate concern in almost all participating countries. Other issues to be discussed include women issues and empowerment of the girl child for improving economic conditions in Africa.

Source : China Africa



Nigerian Strings

Mardi, juin 2nd, 2009

A Nigerian Trade Delegation has reached China to mobilize support from Chinese businesses to participate in the Investment forum slated for September 2009 in Abuja. The five-member delegation from the First Nigeria-China Trade and Investment Forum will visit Wuhan, Guangzhou and other Chinese industrial centers in their attempt to elicit interest in the fields of agriculture, manufacturing, banking, oil and gas besides tertiary industries. This is over and above China’s existing investment network that has already spread in Nigeria across industries and businesses. China imports petroleum, timber and cotton from Nigeria in exchange for light mechanical, industrial and electrical products. China also has a ready market for its cheap manufactured goods. The most significant companies that have undertaken large scale projects in Nigeria include the China Geological Engineering Company, China Harbor Engineering Company and the China Civil Engineering Construction Corporation.

China has been perceived as a replacement for America from the Nigerian point of view. This can be attributed to China’s policy of providing aid without any strings attached, supplying arms in abundance, and having the willingness to invest millions in various sectors of the Nigerian economy. China is a completely business oriented country, that does not hem and haw about do’s and don’ts, and never uses any pressure tactics. It is willing to have its agricultural models replicated, and set up systems in the fields of communication and infrastructure that provide employment opportunities to Chinese and Nigerians alike, and are mutually beneficial.

The relationship between Nigeria and China has helped Nigeria shed its colonial leanings towards the west, and look at Asian alternatives. Nigeria’s population of 130 million has benefited tremendously from Chinese interest not just in economic affairs, but also in the fields of education, culture and health. Nigeria has benefited tremendously from China’s assistance in putting its railway network back on track. It has helped extend the network into the interiors of the country, thereby enhancing connectivity. To top it all, China also provided the funds for the entire project. The completed project will ease transportation of goods throughout Africa and perishable commodities like fruit and vegetables would be able to reach heir destinations in a far fresher state from the northern cities to the southern ones.

Source : Manufacturers Africa



China’s Agricultural Inroads Into Africa

Samedi, mai 30th, 2009

China’s population is highly dependent on natural foods like rice, vegetables and meats. Since its own cultivable land is limited, it needs to supplement its food output from other countries or else there may be a severe food crisis waiting in the wings with its large population. But China has its strategies in place well before a crisis occurs. It has found its solution Africa, which besides its rich reserves of natural resources also has hundreds of acres of arable land that it is not averse to leasing out for long-term lease. This fits in perfectly with China’s plans as its urbanization has also depleted it cultivable land resources. Statistical figures reveal that China lost 8.9 million hectares of cultivable land between 1995 and 2007.

The countries where China are mainly in South Africa including Mozambique, Tanzania, Malawi and currently Angola. The agricultural land story began with Zambia in 1995 when Zhongkan Farm, a private Chinese company invested $22,000 in a farm project. By the end of 2007, the number of farm projects across Africa had increased to 63. Mozambique has received $800 million from China for modernizing its agricultural sector. This will be used to increase rice production in the country from 200,000 tons to 500,000 tons. Teams from the Chinese Hunan Hybrid Rice Institute and at least 100 specialists are stationed in Mozambique.

Similarly, Tanzania received millions of dollars to modernize its own agricultural sector. The idea behind this was to help create a green revolution in Africa. In the entire African continent, 1134 agricultural specialists have come from China to teach and see the implementation of agricultural modernization policies.

Angola is increasingly becoming the most sought after country for Chinese investment. It is already China’s biggest trading partner, and is now going to benefit through agriculture. Angola offers the best environment for beef production, coffee, spices, fruits, sugar and cotton.

The agricultural revolution gradually taking place in Africa is not just beneficial for China alone, it is also helping the African countries as an employment generating industry and providing larger food supplies for its starving millions. It is a win-win situation for both.

Source : Chinafrica



China And Algeria Sign a Joint Venture Project For Broadband Network

Vendredi, mai 29th, 2009

China’s joint ventures with African countries are being signed at an amazing frequency. The newest is a joint venture between China’s Great Wall Computer Group Corporation and the network for Algerian Broadband called EEPAD, for manufacturing netbooks. The $ 4 million project has a 30% stake from the Chinese company and will produce 100,000 netbooks in the first year and 200,000 by the end of the second year. The company claims to have an order for 150,000 netbooks already for the African market, and therefore plans to continue increasing capacity till 500,000 netbooks annually. This is the first manufacturing facility that the great Wall Computer Company has invested in, and plans to set up many more across Africa in the coming years. EEPAD is Algeria’s VOIP and ADSL operator in Algeria, and its stake of 70% involves $2.8 million.

The cooperation between Algeria and China has been continuing for many years and is presently on a strong footing. The mutually advantageous economic ties have been reinforced by frequent visits of top leaders of both countries. Trade between the two countries hovers around the $4 billion mark. Some 40 Chinese companies with many thousands of employees have set up businesses in Algeria in the fields of mining, energy, infrastructure, telecommunications, hydro projects and construction. The 1200 km expressway being constructed from the east to west Algeria is being constructed by the Chinese to serve as an arterial route in North Africa’s costal regions. Algeria’s rich reserves of oil and natural gas are a major attraction for China and its two big companies Sinopec and CNPC are already exploring these natural resources.

Besides economic cooperation Algeria has benefited from China in the realms of medicine, health, education and culture. China has helped educate Algeria’s youth, provided technical training to the employees and initiated many scholarships for the youth of Algeria. China has also extended its technical expertise in the field of agriculture to Algeria. China has improved the lot of its rural poor through the pursuit of aggressive agricultural reform, and this model serves as an example for all African countries to learn from. Even its hybrid rice seed varieties are being provided to African countries to ensure bumper rice crops.

Source : Chinafrica