Kenya Turns Eyes Towards China For Growth And Development

Vendredi, octobre 23rd, 2009

For all African countries, the first nation that comes to mind when they think of external participation and support for their development, is inevitably China. China has become a towering presence in the African continent, and they like its no questions asked attitude when it hands out doles, aid, loans or even technical expertise. Thus, while some of its deals are rendered questionable by international peace and human rights standards, many others are laudable since they have initiated the process of development in grossly underdeveloped countries.

Kenya, the well-known east African country located along the Indian Ocean, has dispatched a delegation to China for discussing possibilities of alliances between the two nations to develop a port in Lamu and development of a rail and road network till Kenya’s borders with Sudan and Ethiopia. The high-profile delegation is led by Prime Minister Raila Odinga, who prefers Chinese involvement to other countries because of the “full package” provided by China in terms of funds and technical expertise. Spurred by massive Chinese investments in other African countries like Guinea where it has committed billions of dollars for infrastructure and oil, and Nigeria, where it has bid for six billion barrels of its oil reserves, Kenya also wants to claim a piece of the investment cake.

At present, CNOOC, one of China’s three big oil companies, is starting oil exploration in Northern Kenya in October, besides the exploration rights it has over a second block in the Lamu basin. If China agrees to support the development of the Lamu port, the “second corridor” of Kenya would develop at a rapid pace. The “second corridor” is he name given to the development of the rail and road network towards the Kenyan coast along with the Lamu port. This would help in the development of northern Kenya, so far lagging behind, and also provide an alternative route for Southern Sudan’s oil for export. Kenya’s development would be immensely beneficial for the neighboring countries of Ethiopia and Sudan. China has large projects under way in both these countries and the development of Kenya’s second corridor would prove beneficial to Chinese interests as well.

Source : Business Africa



Ethiopia Augmenting its Power Sources Through Chinese Companies

Jeudi, octobre 1st, 2009

Ethiopia, the landlocked country located in the horn of Africa, is in the process of finalizing agreements with two Chinese firms to develop two large hydropower projects and two wind power farms. This was stated by Ethiopia’s power utility, the Ethiopian Electric Power Corporation (EEPCo), two days ago. The two deals will help in increasing the hydropower generating capabilities and find out the wind power potential.

The first contract for building the $408 million hydropower project in southern Ethiopia has been awarded to China Gezhouba Group Company (CGGC). Called the Genale DAWA 3 project, it will build capacity to generate 254 megawatts of power on completion.

The Sinohydro Corporation has signed a contract to construct the Chemoga Yeda hydropower project. The $555 million project will include five dams on five rivers. EEPCo has inked a preliminary deal to construct two wind farms with the Hydrochina Company. This project will be financed completely by the Chinese government and this wind power would be reserved for emergency requirements.

Ethiopia at present has five hydropower projects that are in various stages of construction. Some of these have been funded by the World Bank and once completed, in the next ten years, Ethiopia will emerge as a net power exporter to other African countries facing a power crunch, like Kenya, Djibouti and Sudan.

Power shortages have been almost a daily affair in Ethiopia for the last five months, and with the government’s efforts, the situation is improving, but not after damaging the economic scene in terms of unfinished export assignments and have led to a shortage of hard currency. The Ethiopian Prime Minister, Meles Zenawi has been concerned about this situation and its impact on trade. The government plans to spend a total sum of $12 billion over a period of twenty-five years to ease the power situation and the burden that is likely to increase substantially over the years.

China has overtaken all western nations as the largest investor in Africa, having invested billions of dollars in infrastructure and developmental work in Africa and thus gaining access to its huge supply of natural resources.

Source : Business Africa



China Provides Assistance to Ethiopia For Expo 2010

Vendredi, juillet 24th, 2009

May 2010 will see a six month long exhibition open in Shanghai, China. The huge exhibition will bring tourists and governments to showcase their countries from every corner of the world with at least 70 million visitors likely to visit the displays. The expo will have a central theme of “Better City, Better Life”. The theme is in keeping with the current issues of urbanization and their ill effects on civilization.

Africa, a close strategic partner of China will have a big Africa Joint pavilion with displays from 51 countries of the continent. However, an exhibition of this size requires a lot of preparation and expense, which may proves to be a burden on the struggling African economies. Therefore china had promised to help them financially. Ethiopia for instance, has been given $650,000 to begin planning how it will present its cultural and historical heritage. The Expo will be the best way to attract tourists from all over the world to witness the sights and sounds of Ethiopia. An agreement has been signed between the governments of China and Ethiopia at Addis Ababa to formalize the commitment.

Ethiopia is high on the priority list for assistance from the Chinese government. The diplomatic relations between the two countries and nearly four decades old. Since then Ethiopia has benefited tremendously from China’s inclination to invest and foster development. China has assisted the African country with aid to develop its infrastructure, roads and railways, power stations and water works and private projects have been initiated for textiles, petroleum, metals and materials, agriculture, industry and telecom sectors among others. China has set up an agricultural demonstration center in Ethiopia to teach how to improve the methods of growing crops and making it more profitable to help reduce poverty. All of China’s efforts have yielded substantial results, which must now be conspicuous, and the EXPO will be one great way to display to the world what friendly assistance to do to transform a nation completely and how lifestyles can change. With one year to go, Ethiopia has been wise to start early in its endeavor to reveal its present state to the world.

Source : China Africa



China to Refurbish Ethiopian Road Network

Lundi, juillet 13th, 2009

China is amongst the most important contributors to the development of African infrastructure, namely its roads, railways, dams and bridges, hospitals and schools. The local population has benefited tremendously and the efficient transportation and communication network has led to better trade as well. China has not still stopped and its efforts to improve this segment of Africa continue. The latest in its endeavors is the deal with Ethiopia to build roads in this East African country.

The well known state owned infrastructure company, China Road and Bridge Corporation will construct the 80 km highway connecting the country’s capital, Addis Ababa to Nazareth, a city in the heart of the country. The project will be funded by a soft loan provided by China, and the $701 million loan agreement was signed by CRBC and the Ethiopian Roads Authority.

The final agreement for the project was signed on June 27th, after detailed discussions took place between Chinese Minister of construction Wang Guangtao, and the Ethiopian authorities. CRBC has already proved its expertise in the field of road construction since it is already completing 3 road projects in Addis Ababa that are likely to cost $ 40 million.

The project is yet another successful venture of the Chinese that can be attributed to their strategy of funding projects through soft loans in exchange for the contract being awarded to a Chinese company. This pre-empts the need for inviting bids and there is no threat of foreign competition for China. Formalities for such jobs are always completed during visits of high level delegations led by Chinese ministers, and the Africans are only too happy to oblige, since in the long run, it is their country that benefits from these loans, which the African countries may not have been in a position to take under tougher repayment regulations. Africa has also not forgotten the loans waived off by China to many of its countries. The economic downturn has adversely affected most African nations but the impact has been diluted by the Chinese government pitching in with orders for African goods, to make up for the loss of European and American markets. Both Europe and America are very badly affected by the global economic recession. It is this strategy of China that is largely responsible for the China Africa trade crossing the $ 100 billion mark last year.

Source : China Africa



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