Agriculture | Chinafrica - China Africa trade, China investment in Africa

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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: Africa, agriculture, China, food
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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: Africa, agriculture, China, China Mobile, investment, Libya, oil, Sudan
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Mozambique and China, strategic partners from a long time

Dimanche, mai 3rd, 2009

Mozambique, a country on the south-eastern coast of Africa, has been getting foreign investments in large amounts, thereby developing at a faster pace than many other African countries. China has become the fifth largest investor in Mozambique according to the latest figures released yesterday by the Mozambican Center for Investment Promotion for the first quarter of the year 2009.

During this time Mozambique saw an investment of $18 million from African companies and a total of $2.1 million from Chinese companies. At least 20 Chinese companies expressed interest in various projects in Mozambique.

China has proved to be a strategic partner for Mozambique and its largest interest and investment has been in the construction sector. The Mozambique airport is being modernized by a Chinese company Anhui Foreign Economic Construction (AFEC) at an expense of $ 75 million. The national stadium under construction is also contracted to a Chinese company. It ahs also Assisted the African nation in setting up textile mills and clothing factories, improving water supply systems and making leather shoes. China has been sharing its agricultural technology with Mozambique to help improve agricultural systems in he country. China has revolutionized its system of agriculture, which has helped raise the standard of living of its people in rural areas. Countries replicating its model would be able to do the same. It also offers a big market for cheap goods produced in China and many types of machinery.

The relations between the two countries are bilateral. China in return has been getting huge amounts of timber from Mozambique. Other products being exported to China include fish products, food items, and services. The two countries have been encouraging cultural and educational cooperation as well. It has endorsed Mozambique as a tourist destination for the Chinese people traveling overseas especially to African destinations.

Mozambique has been committed to a one-China policy for a long time and China is rewarding the country for its commitment. It has exempted many goods from Mozambique from tariff duties, making them cheaper and more affordable. It has offered huge loans to the rapidly developing country at low interest rates. This has proved to be helpful in times of the global economic downturn.

Source : Suppliers Africa

Tags: agriculture, China, global economic downturn, investment, Mozambique
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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: Africa, agriculture, China, recession, Zambia
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China-Africa Development Fund Seeks Larger, More Active Role

Vendredi, avril 24th, 2009

The China-Africa Development Fund was set up in June 2007 to enhance the level of Chinese investments in the African continent. The state backed fund started out with an initial investment of $ 1 billion put in by the China Development Bank Corp., and is likely to touch the $5 billion mark. It has funded various developmental projects and set up many industries. However, it has been a passive investor that was not at liberty to even hold a majority stake in a company. Mark Fung, the general counsel for the company stated in Hong Kong, that the fund would like amore active role in the future, though at present, it lacks the required expertise to participate in the management of the projects it funds. The fund’s investments are generally made for an eight to ten year period.

Among the projects assisted by the fund, is the cotton planting and processing unit in Malawi, the Ghana power station, a glass factory in Ethiopia, as well as trade zones in Nigeria and Egypt. The total investments made in twenty such projects amounts to $400 million. Refuting claims of critics that environmental rules were ignored while assisting in raw material and oil exploration, Fung stated that an environment assessment has always been conducted in each of its projects before funds were released. The fund is part of China’s long-term strategy to fill in the gaps left by the western nations due to the economic downturn and the recession hitting their economies.

China has strengthened its place and presence in Africa in the process, helping its infrastructure development and providing technical expertise and funds the Southern continent so desperately needs. The fund has opened a representative office in Johannesburg and will be opening similar offices all over Africa. China is commitment to the development of Africa and the fund is one of its various channels to ensure the flow of investment into the continent. China has a set of eight policy measures listed by its premiers to assist Africa in the sectors of tourism, industry, agriculture and infrastructure. African nations have been seeking Chinese expertise in capacity building and building its private sector.

Source : Suppliers Africa

Tags: Africa, agriculture, China, Development Fund, Egypt, industry, infrastructure, Nigeria, tourism
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China’s Food and agriculture fund for Africa

Vendredi, mars 27th, 2009

The Food and Agriculture Organization is going to carry out a $ 30 million trust fund being set up by China for supporting agricultural projects in Africa. The aim is to improve farming output in the developing African countries and help them achieve Millennium Development Goals. The fund is meant to last for three years and will get $ 10 million each year. The fund comes in addition to the technical assistance China has been providing to African agriculture for the last few years. Africa has all the resources to ensure high agricultural output, but has never been successful. In the last four years China has posted some 400 experts in developing African countries. With this Trust, China has cemented its role as a global player in developing countries.

The China Development Bank has granted loans worth millions of dollars to agricultural processing firms in East Africa. Chinese assistance has been provided to plan crops of cereals as well as cash crops like rubber and pine. Angola has received a $ 1 billion agricultural loan from Beijing to improve the sector after decades of war. Senegal recently signed a deal to sell 10,000 tons of groundnut oil to China during Chinese premier Hu Jintao’s visit.

After all its investments in mining, infrastructure and industry, China seems to have focused on agriculture now. Its interest in oil is not just for crude, but also olive oil. The global recession is being used by Beijing to push investment in primary commodities, and agriculture in African offers enormous scope for improvement and investment. However, it is not buying farmland, instead it is providing technical expertise and equipment to increase food grain output which would be mutually beneficial. China is convinced that agricultural development is the best way to alleviate poverty in rural Africa. Increased output would also keep food prices at affordable levels for the locals. Eventually, Africa’s agricultural sector must also be able to post profits, as non-profit production cannot be sustained for long. Chinese agricultural investors, who made profits in one African nation, are spreading their interests in other countries as well.

source : China Africa

Tags: Africa, agriculture, Angola, China, east africa
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Calendar

China Africa agriculture

China Africa investment

Mozambique and China, strategic partners from a long time

China’s Assistance to African Countries During the Recession

China-Africa Development Fund Seeks Larger, More Active Role

China’s Food and agriculture fund for Africa